[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Rules and Regulations]
[Pages 81663-81664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27772]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 160106014-6728-04]
RIN 0694-AG82


Temporary General License: Extension of Validity

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: On March 24, 2016, the Bureau of Industry and Security (BIS) 
published a final rule, Temporary General License. The March 24 final 
rule created a temporary general license that restored, for a specified 
time period, the licensing requirements and policies under the Export 
Administration Regulations (EAR) for exports, reexports, and transfers 
(in-country) as of March 7, 2016, to two entities (ZTE Corporation and 
ZTE Kangxun) that were added to the Entity List on March 8, 2016. At 
this time, the U.S. Government has decided to extend the temporary 
general license until February 27, 2017. In order to implement this 
decision, this final rule revises the temporary general license to 
remove the expiration date of November 28, 2016, and to substitute the 
date of February 27, 2017. This final rule makes no other changes to 
the EAR.

DATES: This rule is effective November 18, 2016 through February 27, 
2017. The expiration date of the final rule published on March 24, 2016 
(81 FR 15633) is extended until February 27, 2017.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    On March 24, 2016, the Bureau of Industry and Security (BIS) 
published a final rule, Temporary General License (81 FR 15633). The 
March 24 final rule amended the EAR by adding Supplement No. 7 to part 
744 to create a temporary general license that returned, until June 30, 
2016, the licensing and other policies of the EAR regarding exports, 
reexports, and transfers (in-country) to Zhongxing Telecommunications 
Equipment (ZTE) Corporation and ZTE Kangxun to that which were in 
effect prior to their addition to the Entity List on March 8, 2016.
    On June 28, 2016, BIS published a final rule, Temporary General 
License: Extension of Validity (81 FR 41799), which extended the 
validity of the temporary general license until August 30, 2016. On 
August 19, 2016, BIS published a final rule, Temporary General License: 
Extension of Validity (81 FR 55372), which extended, for a second time, 
the validity of the Temporary General License until November 28, 2016. 
Details regarding the scope of the listing are at 81 FR 12004 (Mar. 8, 
2016), (``Additions to the Entity List''). Details regarding the 
Temporary General License can be found in the March 24 final rule and 
in Supplement No. 7 to Part 744--Temporary General License.
    BIS issued the March 24 final rule, and the June 28 and August 19 
extension of validity final rules, in connection with a request to 
remove or modify the listings. The March 24 final rule, and the June 28 
and August 19 final rules, specified that the temporary general license 
was renewable if the U.S. Government determined, in its sole 
discretion, that ZTE Corporation and ZTE Kangxun were performing their 
undertakings to the U.S. Government in a timely manner and otherwise 
cooperating with the U.S. Government in resolving the matter which led 
to the two entities' listing.
    At this time, the U.S. Government has decided to extend the 
temporary general license until February 27, 2017. In order to 
implement this U.S. Government decision, this final rule revises the 
temporary general license to remove the date of November 28, 2016, and 
substitute the date of February 27, 2017. This final rule makes no 
other changes to the EAR.

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 4, 2016, 81 FR 52587 (August 8, 2016), 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 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, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This 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 or be subject to a penalty for failure to comply 
with a collection of information, subject to the requirements of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless 
that collection of information displays a currently valid Office of 
Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission. Total burden hours 
associated with the PRA and OMB control number 0694-0088 are not 
expected to increase as a result of this rule. You may send comments 
regarding the collection of information associated with this rule, 
including suggestions for reducing the burden, to Jasmeet K. Seehra, 
Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment, and a delay in effective date are inapplicable because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5

[[Page 81664]]

U.S.C. 553(a)(1)). If this rule were delayed to allow for notice and 
comment and a delay in effective date, then the national security and 
foreign policy objectives of this rule would be harmed. Because a 
notice of proposed rulemaking and an opportunity for public comment are 
not required to be given for this rule by 5 U.S.C. 553, or by any other 
law, the analytical requirements of the Regulatory Flexibility Act, 5 
U.S.C. 601 et seq., are not applicable. Accordingly, no regulatory 
flexibility analysis is required and none has been prepared.

List of Subject in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730 through 774) is amended as follows:

PART 744--[AMENDED]

0
 1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; 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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 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; Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); 
Notice of September 15, 2016, 81 FR 64343 (September 19, 2016).

Supplement No. 7 to Part 744--[Amended]

0
2. In Supplement No. 7 to part 744, remove ``November 28, 2016'' and 
add in its place ``February 27, 2017''.

    Dated: November 14, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-27772 Filed 11-17-16; 8:45 am]
 BILLING CODE 3510-33-P