[Federal Register Volume 80, Number 103 (Friday, May 29, 2015)]
[Rules and Regulations]
[Pages 30615-30617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12992]


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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Part 447

[Docket No. ATF-25F; AG Order No. 3531-2015]
RIN 1140-AA45


Importation of Arms, Ammunition and Defense Articles--Removal of 
Certain Defense Articles Currently on the U.S. Munitions Import List 
That No Longer Warrant Import Control Under the Arms Export Control Act 
(2011R-25P)

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 
Department of Justice.

ACTION: Final rule.

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SUMMARY: The Department of Justice is finalizing without change an 
amendment to the Bureau of Alcohol, Tobacco, Firearms, and Explosives 
regulations to remove those defense articles currently on the United 
States Munitions Import List that ATF by delegation has determined no 
longer warrant import control under the Arms Export Control Act.

DATES: This rule is effective June 29, 2015.

FOR FURTHER INFORMATION CONTACT: George M. Fodor, Office of Regulatory 
Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, U.S. Department of Justice, 99 New York 
Avenue NE., Washington, DC 20226; telephone: (202) 648-7070.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 38 of the Arms Export Control Act of 1976 (AECA), 22 U.S.C. 
2778, as amended, authorizes the President, in furtherance of world 
peace and the security and foreign policy of the United States, to 
control the import and the export of defense articles and defense 
services. 22 U.S.C. 2778(a)(1). The AECA also authorizes the President 
to designate those items that shall be considered defense articles and 
defense services for the purposes of section 38, and to promulgate 
regulations for the

[[Page 30616]]

import and export of such articles and services. Id.
    Through Executive Order 13637 of March 8, 2013, the President 
delegated his AECA authority to the Secretary of State with respect to 
the export and temporary import of defense articles and defense 
services. 78 FR 16129. The International Traffic in Arms Regulations 
(ITAR), 22 CFR part 120 et seq., implement the Secretary of State's 
delegated authority and list the defense articles and defense services 
regulated for export, re-export, and temporary import by the Secretary 
of State. The items so designated constitute the State Department's 
regulatory United States Munitions List (USML) of the ITAR.
    Also through Executive Order 13637, the President delegated to the 
Attorney General the authority under the AECA to control the permanent 
import of defense articles and defense services. In exercising that 
authority, the Attorney General ``shall be guided by the views of the 
Secretary of State on matters affecting world peace, and the external 
security and foreign policy of the United States.'' Id. at 1(n)(ii). 
Controlling the import of defense articles and defense services 
furthers United States foreign policy and national security interests 
and is a foreign affairs function of the U.S. Government. That 
executive order also requires that the Attorney General obtain the 
concurrence of the Secretary of State and the Secretary of Defense and 
provide notice to the Secretary of Commerce for designations, including 
changes in designations, of defense articles and defense services 
subject to permanent import control. Id.
    To distinguish the regulatory list of defense articles and defense 
services controlled by the Attorney General for permanent import from 
the regulatory list of defense articles and defense services controlled 
by the Secretary of State for export and temporary import, the list of 
defense articles and defense services controlled by the Attorney 
General for permanent import is designated as the United States 
Munitions Import List (USMIL). The regulations governing this list 
appear at 27 CFR part 447.
    The Attorney General delegated administration of the import 
provisions of the AECA to the Director of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives (ATF), subject to the direction of 
the Attorney General and the Deputy Attorney General. 28 CFR 0.130(a). 
ATF promulgated regulations that implement the provisions of section 38 
of the AECA in 27 CFR part 447. With guidance from the Department of 
State and concurrence from the Departments of State and Defense 
pursuant to Executive Order 13637, ATF administers the list of items 
subject to import control under the USMIL, at 27 CFR 447.21.

II. The President's Export Control Reform Initiative

    In August 2009, the President directed a broad-based interagency 
review of the United States export control system in part to identify 
additional ways to enhance national security, better focus resources on 
protecting items for export that need to be protected, and provide 
clarity to make it easier for exporters to comply with regulations and 
for the United States Government to administer and enforce the 
regulations. As the result of a comprehensive review of export 
controls, it was determined that certain defense articles and defense 
services listed on the USML no longer warrant control for export 
purposes by the Secretary of State pursuant to the AECA. Those defense 
articles are being transferred to the Department of Commerce's Commerce 
Control List for export control under the authority of the 
International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq.
    In effecting the President's export control reform initiative, the 
export control reform interagency task force determined that removing 
unnecessary items from the USMIL would improve the United States import 
control system and enhance national security by focusing resources on 
imports that need to be protected. Accordingly, the task force 
requested ATF to identify those defense articles that no longer warrant 
control on the USMIL.

III. Interim Final Rule and Comment

    On March 27, 2014, ATF published an interim final rule with a 
request for comments (79 FR 17024-17029) entitled ``Importation of 
Arms, Ammunition and Defense Articles--Removal of Certain Defense 
Articles Currently on the U.S. Munitions Import List That No Longer 
Warrant Import Control Under the Arms Export Control Act.''
    In developing this interim final rule, ATF reviewed the USMIL in 
accordance with Executive Order 13563, ``Improving Regulation and 
Regulatory Review,'' and the export control reform interagency task 
force request. The interim final rule removed from the USMIL those 
defense articles that ATF by delegation determined no longer warrant 
import control under the AECA.
    The comment period for the interim final rule closed on June 25, 
2014. ATF received one comment in response to the interim final rule. 
The commenter states that the rule creates additional legal 
requirements without providing measures to prevent crime. The 
Department believes that the rule in fact has the opposite effect, 
decreasing legal requirements by removing defense articles from the 
USMIL while enhancing national security by focusing resources on 
imports that need to be protected.

IV. Final Rule

    Upon review, the Department is issuing this final rule to implement 
the amendments to the regulations at 27 CFR 447.21 that were provided 
in the interim final rule published on March 27, 2014 (79 FR 17024-
17029).
    Pursuant to Executive Order 13637, the Department of State and the 
Department of Defense have concurred on this final rule amending the 
USMIL.

V. Statutory and Executive Order Review

A. Executive Order 12866

    Because the amendments to 27 CFR part 447 involve a foreign affairs 
function of the United States, Executive Order 12866, ``Regulatory 
Planning and Review,'' does not apply.

B. Executive Order 13132

    This regulation will not have substantial direct effects on the 
States, on the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, ``Federalism,'' the Attorney General has 
determined that this regulation does not have sufficient federalism 
implications to warrant the preparation of a federalism summary impact 
statement.

C. Executive Order 12988

    This regulation meets the applicable standards set forth in 
subsections 3(a) and 3(b)(2) of Executive Order 12988, ``Civil Justice 
Reform.''

D. Administrative Procedure Act

    As reflected in 27 CFR 447.54, amendments made to 27 CFR part 447 
are exempt from the rulemaking provisions of 5 U.S.C. 553 because this 
part involves a foreign affairs function of the United States. See 5 
U.S.C. 553(a)(1). Accordingly, it is not necessary to issue this rule 
using the notice and public procedure set forth in 5 U.S.C. 553(b), and 
the requirement of a delayed effective date in 5 U.S.C. 553(d) does not 
apply. The Department of Justice nevertheless provided the public with 
an opportunity to participate in the regulatory process and to provide 
feedback pursuant to

[[Page 30617]]

Executive Order 13563, ``Improving Regulation and Regulatory Review.'' 
Only one comment was received as a result of this outreach. The 
commenter generally believes that the rule creates additional legal 
requirements without providing measures to prevent crime. The 
Department believes that the rule in fact has the opposite effect, 
decreasing legal requirements by removing defense articles from the 
USMIL while enhancing national security by focusing resources on 
imports that need to be protected.

E. Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to an 
initial and final regulatory flexibility analysis are not applicable to 
this final rule because the Department was not required to publish a 
general notice of proposed rulemaking under 5 U.S.C. 553 or any other 
law. See 5 U.S.C. 601 et seq.

F. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 251 of the 
Small Business Regulatory Enforcement Fairness Act of 1996. 5 U.S.C. 
804. This rule is not likely to result in an annual effect on the 
economy of $100 million or more; a major increase in costs or prices; 
or significant adverse effects on competition, employment, investment, 
productivity, innovation, or the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

G. Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995. See 2 U.S.C. 1501 et seq.

H. Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no reporting or 
recordkeeping requirements.

Disclosure

    Copies of the interim final rule and the comment received are 
available for public inspection through the Federal e-Government 
portal, http://www.regulations.gov, or by appointment during normal 
business hours at the ATF Reading Room, Room 1E-062, 99 New York Avenue 
NE., Washington, DC 20226; telephone: (202) 648-8740.

Drafting Information

    The author of this document is George M. Fodor, Office of 
Regulatory Affairs, Enforcement Programs and Services, Bureau of 
Alcohol, Tobacco, Firearms, and Explosives.

List of Subjects in 27 CFR Part 447

    Administrative practice and procedure, Arms and munitions, 
Chemicals, Customs duties and inspection, Imports, Penalties, Reporting 
and recordkeeping requirements, Scientific equipment, Seizures and 
forfeitures.

PART 447--IMPORTATION OF ARMS, AMMUNITION AND DEFENSE ARTICLES

    Accordingly, for the reasons discussed in the preamble, the interim 
final rule amending part 447 of title 27 of the Code of Federal 
Regulations, which was published at 79 FR 17024 on March 27, 2014, is 
adopted as a final rule, without change.

    Dated: May 21, 2015.
Loretta E. Lynch,
Attorney General.
[FR Doc. 2015-12992 Filed 5-28-15; 8:45 am]
 BILLING CODE 4410-FY-P