[Federal Register Volume 82, Number 167 (Wednesday, August 30, 2017)]
[Rules and Regulations]
[Pages 41172-41173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18482]


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DEPARTMENT OF STATE

22 CFR Part 121

[Public Notice 10082]
RIN 1400-AE43


Temporary Modification of Category XI of the United States 
Munitions List

AGENCY: Department of State.

ACTION: Final rule; notice of temporary modification.

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SUMMARY: The Department of State, pursuant to its regulations and in 
the interest of the security of the United States, temporarily modifies 
Category XI of the United States Munitions List (USML).

DATES: Amendatory instructions 1 and 2 are effective August 30, 2017. 
Amendatory instruction No. 3 is effective August 30, 2018.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Monjay, Office of Defense 
Trade Controls Policy, Department of State, telephone (202) 663-2817; 
email [email protected]. ATTN: Temporary Modification of Category XI.

SUPPLEMENTARY INFORMATION: On July 1, 2014, the Department published a 
final rule revising Category XI of the USML, 79 FR 37536, effective 
December 30, 2014. That final rule, consistent with the two prior 
proposed rules for USML Category XI (78 FR 45018, July 25, 2013 and 77 
FR 70958, November 28, 2012), revised paragraph (b) of Category XI to 
clarify the extent of control and maintain the existing scope of 
control on items described in paragraph (b) and the directly related 
software described in paragraph (d). The Department has determined that 
exporters may read the revised control language to exclude certain 
intelligence-analytics software that has been and remains controlled on 
the USML. Therefore, the Department determined that it is in the 
interest of the security of the United States to temporarily revise 
USML Category XI paragraph (b), pursuant to the provisions of 22 CFR 
126.2, while a long-term solution is developed. The Department will 
publish any permanent revision to USML Category XI paragraph (b) 
addressing this issue as a proposed rule for public comment.
    This temporary revision clarifies that the scope of control in 
existence prior to December 30, 2014 for USML paragraph (b) and 
directly related software in paragraph (d) remains in effect. This 
clarification is achieved by reinserting the words ``analyze and 
produce information from'' and by adding software to the description of 
items controlled.
    The Department previously published a final rule on July 2, 2015 
(80 FR 37974) that temporarily modified USML Category XI(b) until 
December 29, 2015. The Department published a final rule on December 
16, 2015 (80 FR 78130) that continued the July 2, 2015 modification to 
August 30, 2017. This final rule extends the July 2, 2015 modification 
to August 30, 2018 to allow the U.S. government to review USML Category 
XI in full and publish proposed and final rules.

Regulatory Findings

Administrative Procedure Act

    The Department is publishing this rule as a final rule based upon 
good cause, and its determination that delaying the effect of this rule 
during a period of public comment would be impractical, unnecessary and 
contrary to public interest. 5 U.S.C. 553(b)(3)(B). In addition, the 
Department is of the opinion that controlling the import and export of 
defense articles and services is a foreign affairs function of the 
United States Government and that rules implementing this function are 
exempt from sections 553 (rulemaking) and 554 (adjudications) of the 
Administrative Procedure Act (APA).

[[Page 41173]]

Regulatory Flexibility Act

    Since the Department is of the opinion that this rule is exempt 
from the provisions of 5 U.S.C. 553, there is no requirement for an 
analysis under the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will 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 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.

Small Business Regulatory Enforcement Fairness Act of 1996

    The Department does not believe this rulemaking is a major rule 
under the criteria of 5 U.S.C. 804.

Executive Orders 12372 and 13132

    This rulemaking does not have sufficient federalism implications to 
require consultations or warrant the preparation of a federalism 
summary impact statement. The regulations implementing Executive Order 
12372 regarding intergovernmental consultation on Federal programs and 
activities do not apply to this rulemaking.

Executive Orders 12866 and 13563

    The Department believes that benefits of the rulemaking outweigh 
any costs, which are estimated to be insignificant. This rulemaking is 
not an economically significant rule under the criteria of Executive 
Order 12866, and is consistent with the provisions of Executive Order 
13563.

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, the requirements of Executive Order 13175 do 
not apply to this rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. chapter 35.

Executive Order 13771

    This rule is not subject to the requirements of EO 13771 (82 FR 
9339, February 3, 2017) because it is issued with respect to a foreign 
affairs function of the United States.

List of Subjects in 22 CFR Part 121

    Arms and munitions, Classified information, Exports.

    For reasons stated in the preamble, the State Department amends 22 
CFR part 121 as follows:

PART 121--THE UNITED STATES MUNITIONS LIST

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; Pub. L. 105-261, 112 
Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.


0
2. In Sec.  121.1, under Category XI, revise paragraph (b), effective 
August 30, 2017, to read as follows:


Sec.  121.1  The United States Munitions List.

* * * * *

Category XI--Military Electronics

* * * * *
    *(b) Electronic systems, equipment or software, not elsewhere 
enumerated in this subchapter, specially designed for intelligence 
purposes that collect, survey, monitor, or exploit, or analyze and 
produce information from, the electromagnetic spectrum (regardless of 
transmission medium), or for counteracting such activities.
* * * * *

0
3. In Sec.  121.1, under Category XI, revise paragraph (b), effective 
August 30, 2018, to read as follows:


Sec.  121.1  The United States Munitions List.

* * * * *

Category XI--Military Electronics

* * * * *
    *(b) Electronic systems or equipment, not elsewhere enumerated in 
this subchapter, specially designed for intelligence purposes that 
collect, survey, monitor, or exploit the electromagnetic spectrum 
(regardless of transmission medium), or for counteracting such 
activities.
* * * * *

Rex W. Tillerson,
Secretary of State, U.S. Department of State.
[FR Doc. 2017-18482 Filed 8-29-17; 8:45 am]
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