[Federal Register Volume 79, Number 230 (Monday, December 1, 2014)]
[Rules and Regulations]
[Pages 71014-71019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28221]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 141114969-4969-01]
RIN 0694-AG36


Amendments to Existing Validated End-User Authorization in the 
People's Republic of China: Lam Research Service Co., Ltd.

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to revise the existing 
authorization for Validated End User (VEU) Lam Research Service Co., 
Ltd. (Lam) in the People's Republic of China (PRC). Specifically, BIS 
amends Supplement No. 7 to part 748 of the EAR to change two addresses 
for Lam's eligible facilities (also known as ``eligible 
destinations''), remove two existing facilities, and add eight eligible 
facilities.

DATES: This rule is effective December 1, 2014.

FOR FURTHER INFORMATION CONTACT: Mi-Yong Kim, Chair, End-User Review 
Committee, Office of the Assistant Secretary, Export Administration, 
Bureau of Industry and Security, U.S. Department of Commerce, Phone: 
202/482-5991; Fax: 202/482-3911; Email: [email protected].

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User

    Validated End Users (VEUs) are designated entities located in 
eligible destinations to which eligible items may be exported, 
reexported, or transferred (in-country) under a general authorization 
instead of a license. The names of the VEUs, as well as the dates they 
were so designated, and their respective eligible destinations and 
items are identified in Supplement No. 7 to part 748 of the EAR. Under 
the terms described in that supplement, VEUs may obtain eligible items 
without an export license from BIS, in conformity with Section 748.15 
of the EAR. Eligible items vary between VEUs and may include 
commodities, software, and technology, except those controlled for 
missile technology or crime control reasons on the Commerce Control 
List (CCL) (part 774 of the EAR).
    VEUs are 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. The End-User Review Committee (ERC), composed of 
representatives from the Departments of State, Defense, Energy, and 
Commerce, and other agencies, as appropriate, is responsible for 
administering the VEU program. BIS amended the EAR in a final rule 
published on June 19, 2007 (72 FR 33646) to create Authorization VEU.

[[Page 71015]]

Amendments to Existing Validated End-User Authorization in the People's 
Republic of China (PRC)

Revisions to the List of ``Eligible Destinations'' for Validated End 
User Lam Research Service Co., Ltd. (Lam)

    In this final rule, BIS amends Supplement No. 7 to part 748 of the 
EAR to revise Lam's VEU authorization. BIS is not making these changes 
in response to activities of concern. BIS is making these changes at 
the request of the company. Specifically, this rule changes the address 
of two Lam facilities in the PRC to which eligible items may be 
exported, reexported or transferred (in-country) using Authorization 
VEU. The two facilities (``Eligible destination'') and their respective 
current and new addresses are as follows:
    Lam Research International Sarl (Lam Beijing Warehouse)
    Current Address:
    Lam Research International Sarl (Lam Beijing Warehouse), c/o 
Beijing Lam Electronics Tech Center, No. 8 Building No. 1, Disheng 
North Street, Beijing Economic & Technological Development Area, 
Beijing, China 100176.
    New Address:
    Lam Research International Sarl (Lam Beijing Warehouse), c/o 
Beijing Lam Electronics Tech Center, 1 Building, No. 28, Jinghai Second 
Road, BDA, Beijing, China 100176.
    Lam Research Service Co., Ltd. (Beijing Branch)
    Current Address:
    Lam Research Service Co., Ltd. (Beijing Branch), Rm. 1010, Zhaolin 
Building, No. 15 Rong Hua Zhong Road, Beijing Economic & Technological 
Development Area, Beijing, China 100176.
    New Address:
    Lam Research Service Co., Ltd. Beijing Branch, 6th Floor, Building 
52, No.2, Jingyuan North Street, Beijing Economic & Technological 
Development Area, Beijing, China 100176.
This rule does not change the eligible items, identified in Supplement 
No. 7 to part 748, that may be exported, reexported or transferred (in-
country) to these two facilities.

    This rule also removes two of Lam's existing eligible facilities. 
The facilities removed by this rule are as follows:
    Lam Research Semiconductor (Suzhou) Co., Ltd. (Suzhou) A Division 
of Lam Research International Sarl, A-2 Building, Export Processing 
Zone, Suzhou New District, Jiangsu Province, China 215151.
    Lam Research (Shanghai) Co., Ltd., No.1 Jilong Road, Room 424-2, 
Waigaoqiao Free Trade Zone, Shanghai, China 200131.

Finally, this rule adds eight facilities to Lam's authorization. As a 
result of this rule, Lam's total number of eligible facilities is 18. 
The eight new facilities and their respective eligible items 
(``Eligible items (by ECCN)'') are as follows:
    New Facilities (1) through (6):
    (1) Lam Research International Sarl (Lam Shanghai Warehouse 
Operator), c/o Shanghai Well-win Logistics Co., Ltd., No. 2667 
Zuchongzhi Road, Pudong New District, Shanghai, China.
    (2) Lam Research International Sarl (Lam Beijing Warehouse), c/o 
China International ElectronicService Company, 1 Building, No. 28, 
Jinghai Second Road, BDA, Beijing, China 100176.
    (3) Lam Research International Sarl (Lam Beijing Warehouse), c/o 
Beijing STE International Logistics Co., Ltd., Building 3, No. 9 Ke 
Chuang Er Street, Beijing Economic & Technological Development Area, 
Beijing, China 100176.
    (4) Lam Research International Sarl (Lam Dalian Warehouse), c/o JD 
Logistics Dalian Bonded Logistic Co., Ltd., No.1 Public Warehouse, 
Dalian Bonded Logistics Zone, Dalian, China 116600.
    (5) Lam Research International Sarl (Lam Xi'an Warehouse), c/o VR 
International Logistics (Xi'an) Co., Ltd., No. 28 Information Road, EPZ 
B Zone, Xian New District, Xian, China 710119.
    (6) Lam Research International Sarl (Wuxi Bonded Warehouse for CIQ 
inspection), c/o SinoTrans Jiangsu Fuchang Logistics Co., Ltd., No. 1 
Xiqin Road, Area A, Export Processing Zone, New District, Wuxi, China 
214028.

The eligible items for new facilities (1) through (6) are 2B230, 
2B350.c, 2B350.d, 2B350.g, 2B350.h, 2B350.i, 3B001.c and 3B001.e (items 
classified under ECCNs 3B001.c and 3B001.e are limited to ``specially 
designed'' components and accessories), 3D001 (limited to ``software'' 
(excluding source code) ``specially designed'' for the ``development'' 
or ``production'' of equipment controlled by ECCN 3B001), 3D002 
(limited to ``software'' (excluding source code) ``specially designed'' 
for the ``use'' of equipment controlled by ECCN 3B001), and 3E001 
(limited to ``technology'' according to the General Technology Note for 
the ``development'' of equipment controlled by ECCN 3B001). These ECCNs 
are identified by a single asterisk in the ``Eligible items (by ECCN)'' 
Column of the entry for Lam in Supplement No. 7 to part 748.
    New Facilities (7) and (8):
    (7) Lam Research Service Co., Ltd. (Lam Dalian Representative 
Office), c/o Intel Semiconductor (Dalian) Ltd., No. 109 Huaihe Road 
East, Dalian Economic & Technical Development Area, Dalian, China 
116600.
    (8) Lam Research Service (Shanghai) Co., Ltd. Xi'an Branch, Room 
602, Building G, Wangzuo Xiandai City, 35 Tangyan Road, Gaoxin 
District, Xi'an, China 710065.

The eligible items for new facilities (7) and (8) are as follows 2B230, 
2B350.c, 2B350.d, 2B350.g, 2B350.h, 2B350.i, 3B001.c and 3B001.e (items 
classified under ECCNs 3B001.c and 3B001.e are limited to ``specially 
designed'' components and accessories), 3D001 (limited to ``software'' 
(excluding source code) ``specially designed'' for the ``development'' 
or ``production'' of equipment controlled by ECCN 3B001), 3D002 
(limited to ``software'' (excluding source code) ``specially designed'' 
for the ``use'' of equipment controlled by ECCN 3B001), and 3E001 
(limited to ``technology'' according to the General Technology Note for 
the ``development'' or ``production'' (limited to those stages that 
support integration, assembly (mounting), inspection, testing, and 
quality assurance) of equipment controlled by ECCN 3B001). These items 
are identified by two asterisks in the ``Eligible items (by ECCN)'' 
Column of the entry for Lam in Supplement No. 7 to part 748.
    To conform with Section 772.1 of the EAR, this rule adds quotation 
marks to the term ``specially designed'' in the list of eligible items 
for Lam's facilities.

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014), has continued the Export 
Administration Regulations 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

[[Page 71016]]

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 not 
significant for purposes of Executive Order 12866.
    2. This rule involves collections previously approved by the Office 
of Management and Budget (OMB) under Control Number 0694-0088, ``Multi-
Purpose Application,'' which carries a burden hour estimate of 43.8 
minutes to prepare and submit form BIS-748; and for recordkeeping, 
reporting and review requirements in connection with Authorization VEU, 
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 of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB Control 
Number 0694-0088 are not expected to increase significantly as a result 
of this rule.
    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 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. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 
553(b)(B), BIS finds good cause to waive requirements that this rule be 
subject to notice and the opportunity for public comment because they 
are unnecessary. In determining whether to grant VEU designations, a 
committee of U.S. Government agencies evaluates information about and 
commitments made by candidate companies, the nature and terms of which 
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for 
evaluation by the committee are set forth in 15 CFR 748.15(a)(2).
    The information, commitments, and criteria for this extensive 
review were all established through the notice of proposed rulemaking 
and public comment process (71 FR 38313 (July 6, 2006) (proposed rule), 
and 72 FR 33646 (June 19, 2007) (final rule)). Given the similarities 
between the authorizations provided under the VEU program and export 
licenses (as discussed further below), the publication of this 
information does not establish new policy. In publishing this final 
rule, BIS updates addresses, adds eligible destinations, and removes 
eligible destinations of that VEU. These changes have been made within 
the established regulatory framework of the VEU program. Further, this 
rule does not abridge the rights of the public or eliminate the 
public's option to export under any of the forms of authorization set 
forth in the EAR.
    Publication of this rule in other than final form is unnecessary 
because the authorizations granted in the rule are consistent with the 
authorizations granted to exporters for individual licenses (and 
amendments or revisions thereof), which do not undergo public review. 
In addition, as with license applications, VEU authorization 
applications contain confidential business information, which is 
necessary for the extensive review conducted by the U.S. Government in 
assessing such applications. This information is extensively reviewed 
according to the criteria for VEU authorizations, as set out in 15 CFR 
748.15(a)(2). Additionally, just as the interagency reviews license 
applications, the authorizations granted under the VEU program involve 
interagency deliberation and result from review of public and non-
public sources, including licensing data, and the measurement of such 
information against the VEU authorization criteria. Given the nature of 
the review, and in light of the parallels between the VEU application 
review process and the review of license applications, public comment 
on this authorization and subsequent amendments prior to publication is 
unnecessary. Moreover, because, as noted above, the criteria and 
process for authorizing and administering VEUs were developed with 
public comments, allowing additional public comment on this amendment 
to individual VEU authorizations, which was determined according to 
those criteria, is unnecessary.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than thirty (30) days after they are published in 
the Federal Register. BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3) because the delay would be 
contrary to the public interest. BIS is simply amending the 
authorization of an existing VEU by updating two addresses, removing 
two existing facilities, and adding eight additional facilities, 
consistent with established objectives and parameters administered and 
enforced by the responsible designated departmental representatives to 
the End-User Review Committee. Delaying this action's effectiveness 
could cause confusion regarding which facilitates and items are 
authorized by the U.S. Government and in turn stifle the purpose of the 
VEU Program. Accordingly, it is contrary to the public interest to 
delay this rule's effectiveness.
    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 under the APA or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. As a result, no final regulatory flexibility 
analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 748

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

    Accordingly, part 748 of the EAR (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 7, 2014, 79 FR 
46959 (August 11, 2014).


0
2. Amend Supplement No. 7 to part 748 by revising the entry for ``Lam 
Research Service Co., Ltd.'' in ``China (People's Republic of)'' to 
read as follows:

[[Page 71017]]



  Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): List of Validated End-Users, Respective Items Eligible for Export, Reexport and
                                                           Transfer, and Eligible Destinations
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Country                Validated  end-user    Eligible items (by ECCN)      Eligible destination           Federal Register citation
--------------------------------------------------------------------------------------------------------------------------------------------------------
           Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited to Sec.   748.15(c).
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
                                    Lam Research Service   These Items Authorized for  * Lam Research              75 FR 62462, 10/12/10.
                                     Co., Ltd.              those Lam's Destinations    International Sarl (Lam    77 FR 10953, 2/24/12.
                                                            Identified by a single      Shanghai Warehouse), c/o   78 FR 3319, 1/16/13.
                                                            asterisk (*):               HMG Supply Chain           78 FR 54752, 9/6/13.
                                                           2B230, 2B350.c, 2B350.d,     (Shanghai) Co., Ltd., No.  79 FR [INSERT PAGE NUMBER], 12/1/14.
                                                            2B350.g, 2B350.h,           3869, Longdong Avenue,
                                                            2B350.i, 3B001.c and        Pudong New District,
                                                            3B001.e (items classified   Shanghai, China 201203.
                                                            under ECCNs 3B001.c and    * Lam Research
                                                            3B001.e are limited to      International Sarl (Lam
                                                            ``specially designed''      Shanghai Warehouse; WGQ
                                                            components and              Bonded Warehouse), c/o
                                                            accessories), 3D001         HMG Supply Chain
                                                            (limited to ``software''    (Shanghai) Co., Ltd., No.
                                                            (excluding source code)     55, Fei la Road,
                                                            ``specially designed''      Waigaoqiao Free Trade
                                                            for the ``development''     Zone, Pudong New Area,
                                                            or ``production'' of        Shanghai, China 200131.
                                                            equipment controlled by    * Lam Research
                                                            ECCN 3B001), 3D002          International Sarl (Lam
                                                            (limited to ``software''    Beijing Warehouse), c/o
                                                            (excluding source code)     Beijing Lam Electronics
                                                            ``specially designed''      Tech Center, 1 Building,
                                                            for the ``use'' of          No. 28, Jinghai Second
                                                            equipment controlled by     Road, BDA, Beijing, China
                                                            ECCN 3B001), and 3E001      100176.
                                                            (limited to                * Lam Research
                                                            ``technology'' according    International Sarl (Wuxi
                                                            to the General Technology   EPZ Bonded Warehouse), c/
                                                            Note for the                o HMG WHL Logistic (Wuxi)
                                                            ``development'' of          Co., Ltd., 1st Fl, Area
                                                            equipment controlled by     4, No. 1, Plot J3, No. 5
                                                            ECCN 3B001)..               Gaolang East Road, Export
                                                                                        Processing Zone, Wuxi,
                                                                                        China 214028.
                                                                                       * Lam Research
                                                                                        International Sarl (Lam
                                                                                        Beijing Warehouse), c/o
                                                                                        HMG Hi-tech Logistics
                                                                                        (Beijing) Co., Ltd.,
                                                                                        Building 3, No. 9 Ke
                                                                                        Chuang Er Street, Beijing
                                                                                        Economic Technological
                                                                                        Development Area,
                                                                                        Beijing, China 100176.
                                                                                       * Lam Research
                                                                                        International Sarl (Wuhan
                                                                                        TSS), c/o HMG Wuhan
                                                                                        Logistic Co., Ltd., 1st-
                                                                                        2nd Floor, Area B, No. 5
                                                                                        Building, Hua Shi Yuan Er
                                                                                        Road, East-lake Hi-Tech
                                                                                        Development Zone, Wuhan,
                                                                                        Hubei Province, China
                                                                                        430223.
                                                                                       * Lam Research
                                                                                        International Sarl (Lam
                                                                                        Shanghai Warehouse
                                                                                        Operator), c/o Shanghai
                                                                                        Well-win Logistics Co.,
                                                                                        Ltd., No. 2667 Zuchongzhi
                                                                                        Road, Pudong New
                                                                                        District, Shanghai, China.
                                                                                       * Lam Research
                                                                                        International Sarl (Lam
                                                                                        Beijing Warehouse), c/o
                                                                                        China International
                                                                                        Electronic Service
                                                                                        Company, 1 Building, No.
                                                                                        28, Jinghai Second Road,
                                                                                        BDA, Beijing, China
                                                                                        100176.
                                                                                       * Lam Research
                                                                                        International Sarl (Lam
                                                                                        Beijing Warehouse), c/o
                                                                                        Beijing STE International
                                                                                        Logistics Co., Ltd.,
                                                                                        Building 3, No. 9 Ke
                                                                                        Chuang Er Street, Beijing
                                                                                        Economic & Technological
                                                                                        Development Area,
                                                                                        Beijing, China 100176.

[[Page 71018]]

 
                                                                                       *Lam Research
                                                                                        International Sarl (Lam
                                                                                        Dalian Warehouse), c/o JD
                                                                                        Logistics Dalian bonded
                                                                                        logistic Co., Ltd., No. 1
                                                                                        Public Warehouse, Dalian
                                                                                        Bonded Logistics Zone,
                                                                                        Dalian, China 116600.
                                                                                       *Lam Research
                                                                                        International Sarl (Lam
                                                                                        Xi'an Warehouse), c/o VR
                                                                                        International Logistics
                                                                                        (Xi'an) Co., Ltd., No. 28
                                                                                        Information Road, EPZ B
                                                                                        Zone, Xian New District,
                                                                                        Xian, China 710119.
                                                                                       * Lam Research
                                                                                        International Sarl (Wuxi
                                                                                        Bonded Warehouse for CIQ
                                                                                        inspection), c/o
                                                                                        SinoTrans Jiangsu Fuchang
                                                                                        Logistics Co., Ltd., No.
                                                                                        1 Xiqin Road, Area A,
                                                                                        Export Processing Zone,
                                                                                        New District, Wuxi, China
                                                                                        214028.
                                                           These Items Authorized for  ** Lam Research Service
                                                            those Lam's Destinations    Co., Ltd., 1st Floor,
                                                            Identified by two           Area C, Hua Hong Science
                                                            asterisks (**):             & Technology Park, 177 Bi
                                                           2B230, 2B350.c, 2B350.d,     Bo Road, Zhangjiang Hi-
                                                            2B350.g, 2B350.h,           Tech Park, Pudong,
                                                            2B350.i, 3B001.c and        Shanghai, China 201203.
                                                            3B001.e (items classified  ** Lam Research Service
                                                            under ECCNs 3B001.c and     Co., Ltd. Beijing Branch,
                                                            3B001.e are limited to      6th Floor, Building 52,
                                                            ``specially designed''      No. 2, Jingyuan North
                                                            components and              Street, Beijing Economic
                                                            accessories), 3D001         & Technological
                                                            (limited to ``software''    Development Area,
                                                            (excluding source code)     Beijing, China 100176.
                                                            ``specially designed''     ** Lam Research Service
                                                            for the ``development''     Co., Ltd., Wuxi
                                                            or ``production'' of        Representative Office,
                                                            equipment controlled by     Room 302, Building 6,
                                                            ECCN 3B001), 3D002          Singapore International
                                                            (limited to ``software''    Park, No. 89 Xing Chuang
                                                            (excluding source code)     Si Road, Wuxi New
                                                            ``specially designed''      District, Wuxi, Jiangsu,
                                                            for the ``use'' of          China 214028.
                                                            equipment controlled by    ** Lam Research Service
                                                            ECCN 3B001), and 3E001      Co., Ltd., Wuhan
                                                            (limited to                 Representative Office,
                                                            ``technology'' according    Room 302, Guanggu
                                                            to the General Technology   Software Park, Building
                                                            Note for the                E4, No. 1 Guanshan Road,
                                                            ``development'' or          Donghu Development Zone,
                                                            ``production'' (limited     Wuhan, Hubei Province,
                                                            to those stages that        China 430074.
                                                            support integration,       ** Lam Research Service
                                                            assembly (mounting),        Co., Ltd. (Lam Dalian
                                                            inspection, testing, and    Representative Office), c/
                                                            quality assurance) of       o Intel Semiconductor
                                                            equipment controlled by     (Dalian) Ltd., No. 109
                                                            ECCN 3B001)..               Huaihe Road East, Dalian
                                                                                        Economic & Technical
                                                                                        Development Area, Dalian,
                                                                                        China 116600.
                                                                                       ** Lam Research Service
                                                                                        (Shanghai) Co., Ltd.
                                                                                        Xi'an Branch, Room 602,
                                                                                        Building G, Wangzuo
                                                                                        Xiandai City, 35 Tangyan
                                                                                        Road, Gaoxin District,
                                                                                        Xi'an, China, 710065
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------



[[Page 71019]]

    Dated: November 24, 2014.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2014-28221 Filed 11-28-14; 8:45 am]
BILLING CODE 3510-33-P