[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Proposed Rules]
[Pages 58704-58709]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23078]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 732, 738, 743, 748, 752, 762, 772, and 774

[Docket No. 140613501-4501-01]
RIN 0694-AG13


Proposed Amendments to the Export Administration Regulations: 
Removal of Special Comprehensive License Provisions

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) 
proposes to continue updating export controls under the Export 
Administration Regulations (EAR) consistent with the Retrospective 
Regulatory Review Initiative that directs BIS and other Federal 
Government Agencies to streamline regulations and reduce unnecessary 
regulatory burdens on the public. Specifically, in this rule, BIS 
proposes to amend the EAR by removing the Special Comprehensive License 
authorization. This rule also proposes conforming amendments.

DATES: Comments must be received no later than October 30, 2014.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
The identification number for this rulemaking is BIS-2014-0021.
     By email directly to [email protected]. Include 
RIN 0694-AG13 in the subject line.
     By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 
0694-AG13.

FOR FURTHER INFORMATION CONTACT: Thomas Andrukonis, Director, Export 
Management and Compliance Division, Office of Exporter Services, Bureau 
of Industry and Security, by telephone at (202) 482-8016 or by email at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

Origin and Historical Advantages of the Special Comprehensive License

    The restructuring and reorganizing of the Export Administration 
Regulations (EAR) that were finalized in 1997 established provisions 
for the Special Comprehensive License (SCL) in part 752 of the EAR (61 
FR 12714, March 25, 1996, as amended by 62 FR 25451, May 9, 1997).
    In keeping with the purpose of those reforms, which was to 
``simplify, clarify and make regulations more user-friendly,'' the SCL 
made licensing more efficient and practical by consolidating 
authorizations for activities (e.g., bulk exports and reexports of 
items as well as certain other activities) and extending periods that 
had been authorized under the following special licenses: Project, 
Distribution, Service Supply, Service Facilities, Aircraft and Vessel 
Repair Station Procedure, and Special Chemical Licenses. With the 
implementation of the SCL, those special licenses were discontinued. 
BIS was confident that the more flexible SCL and a pre-approved 
internal control program (ICP) would advance the agency's fundamental 
mission of ensuring national security without unduly burdening 
legitimate global trade.
    When introduced, SCLs presented certain advantages to exporters and 
consignees that could not be met by the Validated Licenses (formerly 
referred to as Individual Validated Licenses), which was the other 
licensing option at that time. In return for committing to enhanced 
administrative responsibilities and compliance requirements, the SCL 
authorized, among other things:
     Exports and reexports of multiple shipments of all items 
subject to the EAR, with the exception of items prohibited by statute 
or regulation (inter alia, items controlled for missile technology and 
short supply reasons) and items identified as being of significant 
strategic and proliferation concern;
     Exports and reexports of multiple shipments of items to 
all destinations, except to embargoed and terrorist supporting 
destinations (i.e., destinations in Country Groups E:1 and E:2 in 
Supplement No. 1 to Part 740 of the EAR), and countries that BIS may 
designate on a case-by-case basis;
     Possible authorization by prior approved consignees abroad 
of servicing, support services, stocking spare parts, maintenance, 
capital expansion, scientific data acquisition support, reselling and 
reexporting items in the form received, and other activities, on a 
case-by-case basis;
     Exports and reexports of items for a period of four years; 
and
     Exports and reexports by an SCL holder to approved 
consignees and directly to the consignees' customers, the end-users 
(known as drop shipping).
    In a recent review of the SCL, it became apparent that the purposes 
served by an SCL and the advantages it provided have been overtaken by 
changes to the EAR, including changes that have occurred since the 
implementation of the President's Export Control Reform (ECR) (See 
``Initial Implementation of Export Control Reform Rule'' (73 FR 22660, 
April 16, 2013), effective October 15, 2013; ``Improving Regulatory 
Review'' (Executive Order 13563 of January 18, 2011); and BIS's 
``Notice of Inquiry: Retrospective Regulatory Review Under E.O. 13563'' 
(76 FR 47527, August, 5, 2011.).
    At the direction of the President, in August, 2009, BIS in 
conjunction with other agencies that have export control-related 
jurisdiction began an interagency initiative to reform the export 
control system. The reform's objective has been to help strengthen our 
national security and the competitiveness of key U.S. manufacturing and 
technology sectors while simultaneously enabling export control 
officials to better focus government resources on transactions that 
pose the most concern. Some of the

[[Page 58705]]

results of this reform effort include broadening EAR provisions so that 
they are not more restrictive than similar provisions in the 
International Traffic in Arms Regulations. Such broadening included 
extending the validity period of most BIS licenses from two years to 
four years, and allowing shipments to and among approved end-users.
    For purposes of the Retrospective Regulatory Review, the President 
reaffirmed the principles, structures, and definitions that were 
established in Executive Order 12866 of September 30, 1993, and which 
govern present-day regulatory review. Further, the President directed 
agencies to improve their regulations by pursuing regulatory reviews 
that ensure public participation, the best regulatory tools, weighing 
the benefits and costs of regulations, and making regulations 
consistent, easier to read and focused on measurable results.
    BIS's proposal to discontinue the SCL authorization advances the 
objectives of the Retrospective Regulatory Review. Additionally, this 
proposed rule addresses concerns about the utility and unduly 
burdensome requirements associated with the SCL expressed by the 
exporting public in comments submitted in response to the August 5, 
2011, BIS ``Notice of Inquiry, Retrospective Regulatory Review Under 
E.O. 13563.'' One commenter responding to that Notice of Inquiry stated 
that the SCL rule is the most rigorous and burdensome license. The 
commenter claimed that the SCL rule needs ``greater regulatory clarity, 
less administrative burden and greater return on resource.'' The 
commenter went on to note that SCL holders and consignees could get a 
better return on the resources expended for the license and on 
compliance efforts if more activities were authorized, such as 
manufacturing, if eligible items were expanded and if small changes or 
edits to an SCL could be made without the need for multiple forms and 
without the extensive processing time of the interagency license 
review. Finally, the commenter stated that the time and costs 
associated with the management and administrative burden of the SCL 
outweigh the benefit of the license especially when a license must be 
obtained for items that are not SCL eligible. Another commenter 
recommended the ``deletion'' of the SCL provision and stated that the 
provision ``may no longer be practical'' because of the creation of 
License Exception STA.
    BIS has issued fewer than a dozen SCLs, and this limited number of 
license holders and the low volume of trade under SCLs are further 
indicators that the present and future value of an SCL is outweighed by 
the burdens exporters experience in applying for and administering an 
SCL. Included among these burdens are the high monetary and resource 
cost incurred by the SCL holders and their consignees related to:

--Applying for the SCL or an amendment, which involves large volumes of 
detailed documentation to support that application or amendment;
--Developing, administering, and maintaining ICPs, which requires 
extensive time and resources to implement and revise; and
--Traveling and conducting internal audits or preparing for U.S. 
Government audits overseas or domestically, which involves several 
weeks per year of company staff time to prepare for, conduct and 
assess, in addition to the travel expenses necessary to carry out the 
overseas audits of consignees.

    The U.S. Government also incurs high costs in administering and 
enforcing the SCL program internationally for such a limited number of 
SCL holders, whose licenses involve a low volume of trade, which could 
otherwise be more efficiently administered under the EAR.

Augmented Advantages of the EAR's Licenses and Other Authorizations

    BIS's implementation of the President's initiatives has increased 
the scope of the availability, ease of applying for, and practical and 
economic usefulness of export licenses and license exceptions under the 
EAR, while facilitating better compliance by the exporting public 
through expanded outreach. The President's initiatives have included 
the following changes to the EAR:
     A four-year export or reexport validity period with agency 
consideration of a request for an extended validity period on a case-
by-case basis;
     The option to export, reexport, or transfer (in-country) 
to and among approved end-users on a license, under certain conditions; 
and
     The expansion of License Exception Temporary imports, 
exports, and reexports, and transfers (in-country) (TMP) (Section 
740.9), which now authorizes temporary exports to a U.S. person's 
foreign subsidiary, affiliates, or facility abroad outside of Country 
Group B, and will, upon request, authorize the retention of items 
abroad beyond one year, up to a total of four years.
    Also worth noting are other potentially beneficial changes over 
time under the EAR. They include:
     Easier license application-filing procedures where 
exporters now have the ability to save and work on license information 
that they then can submit to BIS via the Simplified Network Application 
Process--Redesign System, or SNAP-R;
     Shorter license application processing times, typically 
without pre-license consultations, ICP requirements, or post-license 
system reviews;
     No requirement for reports for all items exported or 
reexported;
     Licenses that could include items controlled for Missile 
Technology, Short Supply and other reasons excluded from the SCL; and
     No expiration for an authorization allowing U.S., foreign, 
affiliated or unaffiliated parties to export and reexport approved 
items to approved validated end-users (VEUs).
    These streamlined, more flexible and varied authorizations are 
available, as appropriate, to facilitate more efficient and practical 
means of exporting, reexporting and transferring (in-country) items 
subject to export controls under the EAR without the burdens imposed by 
an SCL. More importantly, the amendments proposed in this rule 
eventually will lead to more efficient administration and enforcement 
of export controls under the EAR.

Description of Proposed Changes

Primary Provisions for the SCL: Part 752--Special Comprehensive License

    BIS proposes to discontinue the SCL authorization, and therefore 
remove the text of the SCL provisions located at part 752 (Sections 
752.1 through 752.17 and Supplements No. 1 through No. 5 to part 752) 
of the EAR. In addition, BIS proposes to reserve part 752.

Conforming Amendments

    BIS also proposes conforming amendments that would remove 
references to the SCL authorization in other parts of the EAR. The SCL-
related provisions that BIS proposes to remove from the EAR are set out 
according to part number as follows:
Part 730--General Information
     The reference to the SCL in the second sentence of 
paragraph (a)(5) of section 730.8 (How to proceed and where to get 
help); and
     In Supplement No. 1 to Part 730--Information Collection 
Requirements Under the Paperwork Reduction Act: OMB Control Numbers:
     References to the SCL in control numbers 0694-0088 
(Simplified Network Application Processing + System (SNAP+) and the 
Multipurpose Export License Application) and 0607-0152 (Automated 
Export System (AES) Program); and

[[Page 58706]]

     The collection of information authorized under control 
number 0694-0089 (Special Comprehensive License Procedure).
Part 732--Steps for Using the EAR
     The reference to the SCL with regard to Destination 
Control Statements in paragraph (b) of section 732.5 (Steps regarding 
shipper's export declaration or automated export system record, 
Destination Control Statements, And Recordkeeping); and
     The specific obligations imposed on parties to an SCL that 
appear in paragraph (d) of section 732.6 (Steps for other 
requirements).
Part 738--Commerce Control List Overview and the Country Chart
     References to the SCL in paragraph (b)(3) of section 738.4 
(Determining whether a license is required), which provides a sample 
CCL entry for determining whether a license is required.
Part 743--Special Reporting and Notification
     The reporting requirement for exports of certain 
commodities, software, and technology controlled under the Wassenaar 
Arrangement when the items are authorized under the SCL procedure from 
paragraph (b)(2) of section 743.1 (Wassenaar Arrangement); and
     The reporting requirement for exports of certain items 
listed on the Wassenaar Arrangement Munitions List and the UN Register 
of Conventional Arms when those items are authorized under the SCL 
procedure from paragraph (b)(2) of section 743.4 (Conventional arms 
reporting).
Part 748--Applications (Classification, Advisory, and License) and 
Documentation
    References and provisions related to the SCL in the following 
paragraphs:
     Paragraph (d), introductory text, of section 748.1 
(General provisions), which provides that SCL export and reexport 
license applications are exempted from electronic filing requirements;
     Paragraph (h) of section 748.4 (Basic guidance related to 
applying for a license), which provides that emergency processing is 
not available for SCL applications;
     Paragraphs (a) (Scope) and (d) (Role of individual users) 
of section 748.7 (Registering for electronic submission of license 
application and related documents);
     Paragraph (a)(6) of section 748.9 (Support documents for 
license applications), which provides that SCL applications are 
exempted from the support documents requirement;
     Paragraph (a)(1)(iii) of section 748.12 (Special 
provisions for support documents), which provides that an item removed 
from SCL eligibility would have a grace period of 45 days for complying 
with support documents requirements for a license application for the 
item; and
     The reference to SCL as a type of application in ``Block 
5,'' the entire ``Block 8''of ``Supplement No. 1 to Part 748-BIS-748P, 
BIS-748P-A; Items Appendix; and BIS-748P-B; End-User Appendix; 
Multipurpose Application Instructions''.
Part 762--Recordkeeping
    References and provisions related to the SCL in the following 
paragraphs:
     Paragraphs (b)(31) ``Sec.  752.7, Direct shipment to 
customers,'' (b)(32) ``Sec.  752.9, Action on SCL applications,'' 
(b)(33) ``Sec.  752.10, Changes to the SCL,'' (b)(34) ``Sec.  752.11, 
Internal Control Programs,'' (b)(35) ``Sec.  752.12, Recordkeeping 
requirements,'' (b)(36) ``Sec.  752.13, Inspection of records,'' 
(b)(37) ``Sec.  752.14, System reviews,'' and (b)(38) ``Sec.  752.15, 
Export clearance'' of section 762.2 (Records to be retained).
Part 772--Definitions of Terms
     The definition of ``Controlled in Fact'' from section 
772.1 (Definitions of terms as used in the Export Administration 
Regulations (EAR).
Part 774--The Commerce Control List
     Reference to the SCL in the ``REPORTING REQUIREMENTS'' 
section of all applicable ECCNs.

 Transition Guidance

    BIS proposes that all SCLs would expire one year from the date of 
publication of a final rule that removes SCL provisions from the EAR, 
or the expiration date of the SCL under the particular terms of the 
license, whichever is earlier. During that transition period, which 
could be up to one year after the publication of the final rule, BIS 
will not accept amendments, including renewals, to outstanding SCLs. 
After the publication of the final rule, SCL holders may choose to 
apply for four-year individual licenses for exporting and reexporting 
items under the EAR or use available license exceptions. Finally, as 
with all transactions subject to the EAR, the applicable recordkeeping 
requirements under 15 CFR part 762 will continue to apply to SCL 
transactions until the applicable retention requirements are fulfilled.

Request for Comments

    BIS seeks comments on this proposed rule. BIS will consider all 
comments received on or before October 30, 2014. All comments 
(including any personally identifying information or information for 
which a claim of confidentially is asserted either in those comments or 
their transmittal emails) will be made available for public inspection 
and copying. Parties who wish to comment anonymously may do so by 
submitting their comments via Regulations.gov, leaving the fields that 
would identify the commenter blank and including no identifying 
information in the comment itself. See methods for submitting comments 
in the ADDRESSES section of this rule.

Export Administration Act

    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., 783 (2002), as amended by Executive Order 
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013), and extended most 
recently by the Notice of August 7, 2014, 79 FR 46959 (August 11, 
2014), has continued the EAR in effect under the International 
Emergency Economic Powers Act. BIS continues to carry out the 
provisions of the Export Administration Act, as appropriate and to the 
extent permitted by law, pursuant to Executive Order 13222 as amended 
by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined to be a significant regulatory action, 
although not economically significant, under section 3(f) of Executive 
Order 12866 for purposes of Executive Order 12866. Accordingly, the 
rule has been reviewed by the Office of Management and Budget (OMB).
    2. This rule amends collections previously approved by the Office 
of Management and Budget (OMB) under Control Numbers 0694-0088, 
``Simplified Network Application Processing + System (SNAP+) and the

[[Page 58707]]

Multi-Purpose Application,'' which carries a burden hour estimate of 
43.8 minutes to prepare and submit form BIS-748; 0694-0089, ``Special 
Comprehensive License,'' which carries a burden hour estimate of 40 
hours to complete an application, 30 minutes to complete annual 
extension requests, 4 hours to complete amendments, and six hours to 
perform recordkeeping and internal control program annual 
certifications; and 0694-0152, ``Automated Export System (AES) 
Program,'' which carries a burden hour estimate of three minutes or 
0.05 hours per electronic submission. This requirement has been 
submitted to OMB for approval.
    The total burden hours associated with the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (PRA) and the aforementioned OMB 
Control Numbers would be expected to decrease as a result of this 
proposed removal of part 752 of the EAR and related provisions this 
rule if the rule is eventually issued in final form, thereby reducing 
burden hours associated with approved collections related to the EAR.
    Public comment is sought regarding: Whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collection of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments on 
these or any other aspects of the collection of information to 
Regulatory Policy Division, Bureau of Industry and Security, U.S. 
Department of Commerce at the ADDRESSES above, and email to OMB at 
[email protected], or fax to (202) 395-7285.
    Notwithstanding any other provision of the 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 PRA, unless that collection of information displays 
a currently valid OMB Control Number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.). The 
Chief Counsel for Regulation of the Department of Commerce has 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration that this proposed rule, if adopted in final form, would 
not have a significant economic impact on a substantial number of small 
entities.
    Economic Impact. BIS believes this rule will reduce the economic 
impact on impacted entities because although this rule would eliminate 
the availability of the SCL, such entities could still obtain 
individual validated licenses from BIS to export their product. In 
fact, the other licenses available are less burdensome and require 
fewer compliance/reporting measures than those associated with SCL. It 
would be an overall reduction in burden for an SCL holder to transition 
to one of the other available licenses authorized under the EAR. For 
example, under the SCL, a license holder was required to implement a 
specific internal control program (ICP). Under a license established 
under the ECR, the impacted entities would be measured by their 
ultimate compliance with the EAR. Also with a license established under 
the ECR, SCL holders can transition to a four-year license through the 
validated license process. In addition, they have the availability of 
license exception Strategic Trade Authorization (STA), which allows 
shipments of higher-end controlled items than allowed under the SCL, 
when conditions are met. Also, impacted entities would have the 
convenience of applying for a license via the Simplified Network 
Application Process-Redesign (SNAP-R) System, an updated system for 
electronically filing export and reexport license applications.
    Number of Small Entities. The types entities that would be directly 
impacted by this action include manufactures, oil and gas exploration 
and production companies, and exporters and reexporters of various 
equipment. Based on a review of current Special Comprehensive License 
(SCL) holders, there are less than a dozen entities that have 
outstanding licenses for items on the CCL. Due to the nature of the 
SCL, BIS expects that most of the current license holders would be 
considered large entities under the Small Business Administration's 
size standards. However, BIS does not collect data on the size or 
annual revenue of these entities, and thus some of these entities may 
be considered small under the SBA size standards. Also, although small 
entities are not the primary users of the SCL, BIS acknowledges that 
small entities may have been parties to SCL transactions. To assist in 
the evaluation of a significant economic impact of this rule on a 
substantial number of small entities, BIS welcomes comments to explain 
how and to what extent your business or organization could be affected, 
if your business or organization is a small entity and if adoption of 
any of the amendments discussed in this proposed rulemaking could have 
a significant financial impact on your operations.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees, 
Exports, Reporting and recordkeeping requirements, Strategic and 
critical materials.

15 CFR Parts 732, 748, and 752

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

15 CFR Parts 738 and 772

    Exports.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

15 CFR 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, under the authority of 50 U.S.C. 1701 et seq., parts 
730, 732, 738, 743, 748, 752, 762, 772 and 774 of the Export 
Administration Regulations (15 CFR parts 730-774) are proposed to be 
amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for part 730 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 
note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 
1824a; 50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 
E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 
FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854, 
58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3 
CFR, 1994 Comp., p. 899; 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. 
12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; 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. 13099, 63 FR 45167, 3 CFR, 1998

[[Page 58708]]

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; E.O. 13338, 69 
FR 26751, 3 CFR, 2004 Comp., p 168; E.O. 13637 of March 8, 2013, 78 
FR 16129 (March 13, 2013); Notice of September 18, 2013, 78 FR 58151 
(September 20, 2013); Notice of November 7, 2013, 78 FR 67289 
(November 12, 2013); Notice of January 21, 2014, 79 FR 3721 (January 
22, 2014); Notice of May 7, 2014, 79 FR 26589 (May 9, 2014); Notice 
of August 7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  730.8  [Amended]

0
2. Section 730.8 is amended by removing the next to last sentence in 
paragraph (a)(5).

Supplement No. 1 to Part 730 [Amended]

0
3. Supplement No. 1 to Part 730 is amended by:
0
a. Revising the entry in the ``Reference in the EAR'' Column for 
``Collection number'' ``0694-0088'' to read ``parts 746 and 748; Sec.  
762.2(b).'';
0
b. Removing the entire entry for ``Collection number'' ``0694-0089''; 
and
0
c. Removing the citations to ``752.7(b)'' and ``752.15(a)'' from the 
``Reference in the EAR'' Column for ``Collection number'' ``0607-
0152''.

PART 732--[AMENDED]

0
4. The authority citation for part 732 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 7, 2014, 79 FR 
46959 (August 11, 2014).

0
5. Section 732.5 is amended by revising the next to last sentence of 
paragraph (b) to read as follows:


Sec.  732.5  Steps Regarding Shipper's Export Declaration or Automated 
Export System Record, Destination Control Statements, And 
Recordkeeping.

* * * * *
    (b) Step 28: Destination Control Statement * * * DCS requirements 
do not apply to reexports * * *
* * * * *


Sec.  732.6  [Amended]

0
6. Section 732.6 is amended by removing and reserving paragraph (d).

PART 738--[AMENDED]

0
7. The authority citation for 15 CFR part 738 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  738.4  [Amended]

0
8. Section 738.4 is amended by removing the phrase ``or Special 
Comprehensive License'' at the end of the sixth sentence in paragraph 
(b)(3).

PART 743--[AMENDED]

0
9. The authority citation for part 743 continues 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; E.O. 13637 of 
March 8, 2013, 78 FR 16129 (March 13, 2013); 78 FR 16129 ; Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  743.1  [Amended]

0
10. Section 743.1 is amended by removing and reserving paragraph 
(b)(2).


Sec.  743.4  [Amended]

0
11. Section 743. 4 is amended by removing and reserving paragraph 
(b)(2).

PART 748--[AMENDED]

0
12. The authority citation for 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 7, 2014, 79 FR 
46959 (August 11, 2014).


Sec.  748.1  [Amended]

0
13. Section 748.1 is amended by removing the phrase ``Special 
Comprehensive License or'' from the parenthetical in the first sentence 
in paragraph (d), introductory text.


Sec.  748.4  [Amended]

0
14. Section 748.4 is amended by removing the next to last sentence in 
paragraph (h).


Sec.  748.7  [Amended]

0
15. Section 748.7 is amended by removing the phrase ``Special 
Comprehensive License and'' from the parenthetical in the second 
sentence in paragraph (a) and from the parenthetical in the first 
sentence in paragraph (d).


Sec.  748.9  [Amended]

0
16. Section 748.9 is amended by removing and reserving paragraph 
(a)(6).


Sec.  748.12  [Amended]

0
17. Section 748.12 is amended by:
0
a. Removing the semicolon and the word ``or'' at the end of paragraph 
(a)(1)(ii)
0
b. Adding a period at the end of paragraph (a)(1)(ii); and
0
c. Removing paragraph (a)(1)(iii).

Supplement No. 1 to Part 748 [Amended]

0
18. Supplement No. 1 to Part 748 is amended by:
0
a. Removing the next to last sentence and the caption, ``Special 
Comprehensive License'' that precedes it in paragraph ``Block 5:'' and
0
b. Removing and reserving paragraph ``Block 8''.

PART 752--[REMOVED AND RESERVED]

0
19. Remove and reserve part 752.

PART 762--[AMENDED]

0
20. The authority citation for part 762 continues 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 
7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  762.2  [Amended]

0
21. Section 762.2 is amended by removing and reserving paragraphs 
(b)(31) through (38).

PART 772--[AMENDED]

0
22. The authority citation for part 772 continues 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 
7, 2014, 79 FR 46959 (August 11, 2014).


Sec.  772.1  [Amended]

0
23. Section 772.1 is amended by removing the definition ``Controlled In 
Fact.''

PART 774--[AMENDED]

0
24. The authority citation for part 774 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 7, 2014, 79 FR 46959 (August 11, 2014).

Supplement No. 1 to Part 774 [Amended]

0
25. Supplement No. 1 to part 774 (the Commerce Control List) is amended 
by removing the phrase ``Special

[[Page 58709]]

Comprehensive Licenses,'' wherever it is found.

Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2014-23078 Filed 9-29-14; 8:45 am]
BILLING CODE 3510-33-P