[Federal Register Volume 86, Number 164 (Friday, August 27, 2021)]
[Rules and Regulations]
[Pages 48021-48022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18544]


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DEPARTMENT OF STATE

22 CFR Part 121

[Public Notice: 11481]
RIN 1400-AF35


International Traffic in Arms Regulations (ITAR): Continued 
Temporary Modification of Category XI of the United States Munitions 
List

AGENCY: Department of State.

ACTION: Final rule; notification 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: This rule is effective August 30, 2021, except for amendatory 
instruction 3, which is effective August 30, 2026.

FOR FURTHER INFORMATION CONTACT: Chris Weil, Technology and 
Jurisdiction Analysis Division, Office of Defense Trade Controls 
Policy, Department of State, (202) 632-2870, 
[email protected]. ATTN: ITAR Amendment--USML Category XI(b) 
(1400-AE88)

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 later 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 was 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 
was developed. The Department published a final rule on July 2, 2015 
(80 FR 37974) that temporarily modified USML Category XI(b) until 
December 29, 2015. The Department subsequently published a series of 
rules \1\ that had the effect of

[[Page 48022]]

continuing the modification until August 30, 2021.
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    \1\ 80 FR 78130, 82 FR 41172, 83 FR 44228 and 84 FR 45652.
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    The scope of control in existence prior to December 30, 2014 for 
USML Category XI 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, 
with its interagency partners, continues to develop a long-term 
solution for USML Category XI(b). However, that solution will not be in 
place when the current temporary modification expires on August 30, 
2021. Therefore, the Department has determined, for the national 
security and foreign policy of the United States and in the best 
interest of the U.S. defense industry, to publish a final rule that 
extends the temporary modification of USML XI(b) for five years, to 
August 30, 2026, to allow it to be revised as part of the wholesale 
revision of USML Category XI.

Regulatory Findings

Administrative Procedure Act

    This rulemaking is exempt from section 553 (Rulemaking) and section 
554 (Adjudications) of the Administrative Procedure Act (APA) pursuant 
to 5 U.S.C. 553(a)(1) as a military or foreign affairs function of the 
U.S. Government.

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.

Congressional Review Act

    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

    Executive Orders 12866 and 13563 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, distributed 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 rulemaking is a significant but 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.

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) 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. Effective August 30, 2026, in Sec.  121.1, under Category XI, revise 
paragraph (b) 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.
* * * * *

Zachary A. Parker,
Director, Office of Directives Management, U.S. Department of State.
[FR Doc. 2021-18544 Filed 8-26-21; 8:45 am]
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