[Federal Register Volume 85, Number 188 (Monday, September 28, 2020)]
[Rules and Regulations]
[Pages 60698-60700]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20902]


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DEPARTMENT OF STATE

22 CFR Part 126

[Public Notice: 11212]
RIN 1400-AF14


International Traffic in Arms Regulations: Temporary Update to 
Republic of Cyprus (Cyprus) Country Policy

AGENCY: Department of State.

ACTION: Temporary final rule.

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SUMMARY: The Department of State is amending the International Traffic 
in Arms Regulations (ITAR) to update defense trade policy toward the 
Republic of Cyprus (Cyprus) by temporarily removing prohibitions on 
exports, reexports, retransfers, and temporary imports of non-lethal 
defense articles and defense services destined for or originating in 
Cyprus. On June 2, 2020 the Secretary of State, exercising authority 
under section 1250A(d) of the National Defense Authorization Act for 
Fiscal Year 2020 and section 205(d) of the Eastern Mediterranean 
Security and Energy Act as delegated from the President, determined 
that it was essential to the national security interest of the United 
States to waive the limitations on non-lethal defense articles and 
defense services destined for or originating in Cyprus. The waiver is 
effective for one fiscal year. This amendment reflects that waiver.

DATES: This temporary rule is effective on October 1, 2020, and expires 
on September 30, 2021, unless subsequently extended.

FOR FURTHER INFORMATION CONTACT: Sarah Heidema, Office of Defense Trade 
Controls Policy, Department of State, telephone (202) 663-2809, or 
email now.com">[email protected]now.com. ATTN: Regulatory Change, ITAR 
Section 126.1 Cyprus Country Policy Update.

SUPPLEMENTARY INFORMATION: Section 1250A(d) of the National Defense 
Authorization Act for Fiscal Year 2020 (Pub. L. 116-92) and section 
205(d) of the Eastern Mediterranean Security and Energy Act (Div. J., 
Pub. L. 116-94) provide that the policy of denial for exports, 
reexports, or transfers of defense articles on the United States 
Munitions List (USML) to Cyprus shall remain in place unless the 
President determines and certifies to the appropriate congressional 
committees not less than annually that: (A) Cyprus is continuing to 
cooperate with the U.S. Government in anti-money laundering reforms; 
and (B) Cyprus has taken the

[[Page 60699]]

steps necessary to deny Russian military vessels access to ports for 
refueling and servicing. These provisions further provide that the 
President may waive these limitations for one fiscal year if the 
President determines that it is essential to the national security 
interests of the United States to do so. On April 14, 2020, the 
President delegated to the Secretary of State the functions and 
authorities vested by section 1250A(d) of the National Defense 
authorization Act for Fiscal Year 2020 (Pub. L. 116-92) and section 
205(d) of the Eastern Mediterranean Security and Energy Partnership Act 
of 2019 (Div. J., Pub. L. 116-94) (85 FR 35797). On June 2, 2020, 
utilizing these delegated functions and authorities, the Secretary of 
State determined that it is essential to the national security interest 
of the United States to temporarily remove restrictions on the export, 
reexport, retransfer, and temporary import of non-lethal defense 
articles and defense services destined for or originating in Cyprus. 
This determination requires the Department to update ITAR section 
126.1(r) to specify the circumstances provided in section 1250A(d) of 
the National Defense Authorization Act for Fiscal Year 2020 (Pub. L. 
116-92) and section 205(d) of the Eastern Mediterranean Security and 
Energy Act (Div. J., Pub. L. 116-94) in which the policy of denial for 
exports, reexports, retransfers, and temporary import of non-lethal 
defense articles and defense services destined for or originating in 
the Republic of Cyprus will not apply.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a military or 
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. Since this 
temporary rule is exempt from 5 U.S.C. 553, the provisions of section 
553(d) do not apply to this rulemaking. Therefore, this temporary rule 
is effective upon publication.

Regulatory Flexibility Act

    Since this temporary 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 
within the definition of 5 U.S.C. 804.

Executive Orders 12372 and 13132

    This rulemaking will not have substantial direct effects on the 
States, on the relationship between the National Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, the Department has determined that 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

    Executive Orders 12866 and 13563 direct agencies to assess 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, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
Because the scope of this temporary rule implements a governmental 
policy increasing defense trade with a country, and does not impose 
additional regulatory requirements or obligations on the public, the 
Department believes costs associated with this temporary rule will be 
minimal. The Department also finds that any costs of this rulemaking 
are outweighed by the national security benefits, as described in the 
preamble.

Executive Order 12988

    The Department of State reviewed this rulemaking in light of 
Executive Order 12988 to eliminate ambiguity, minimize litigation, 
establish clear legal standards, and reduce burden.

Executive Order 13175

    The Department of State 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.

Executive Order 13771

    This temporary rule is exempt from the provisions of E.O. 13771, 
since it relates to a military or foreign affairs function of the 
United States.

Paperwork Reduction Act

    This temporary rule does not impose any new reporting or 
recordkeeping requirements subject to the Paperwork Reduction Act, 44 
U.S.C. Chapter 35.

List of Subjects in 22 CFR Part 126

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, title 22, chapter I, 
subchapter M, part 126 is amended as follows:

PART 126--GENERAL POLICIES AND PROVISIONS

0
1. The authority citation for part 126 continues to read as follows:

    Authority: 22 U.S.C. 2752, 2778, 2780, 2791, and 2797; 22 U.S.C. 
2651a; 22 U.S.C. 287c; Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. 
L. 111-117; Pub. L. 111-266; Sections 7045 and 7046, Pub. L. 112-74; 
E.O. 13637, 78 FR 16129.

0
2. Section 126.1 is amended by revising paragraph (r) to read as 
follows:


Sec.  126.1  Prohibited exports, imports, and sales to or from certain 
countries.

* * * * *
    (r) Cyprus. It is the policy of the United States to deny licenses 
or other approvals for exports or imports of defense articles and 
defense services destined for or originating in Cyprus, except that a 
license or other approval may be issued, on a case-by-case basis, for 
the United Nations Forces in Cyprus (UNFICYP) or for civilian end-
users. This policy of denial does not apply to exports, reexports, 
retransfers, and temporary imports of non-lethal defense articles and 
defense services destined for or originating in Cyprus if:
    (1) The request is made by or on behalf of the Government of the 
Republic of Cyprus;
    (2) The end-user of such defense articles or defense services is 
the Government of the Republic of Cyprus; and

[[Page 60700]]

    (3) There are no credible human rights concerns.
* * * * *

Zachary Parker,
Director.
[FR Doc. 2020-20902 Filed 9-25-20; 8:45 am]
BILLING CODE 4710-25-P