[Federal Register Volume 87, Number 70 (Tuesday, April 12, 2022)]
[Rules and Regulations]
[Pages 21554-21556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-07836]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 746

[Docket No. 220406-0085]
RIN 0694-AI81


Additions to the List of Countries Excluded From Certain License 
Requirements Under the Export Administration Regulations (EAR)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: In response to the Russian Federation's (Russia's) further 
invasion of Ukraine and to protect U.S. national security and foreign 
policy interests, the Department of Commerce established highly 
restrictive license requirements and policies for certain transactions 
involving Russia and Belarus under the Export Administration 
Regulations (EAR). To recognize partner countries implementing 
substantially similar export controls on Russia and Belarus, the 
Department of Commerce published a list of countries excluded from 
certain U.S. export controls related to foreign-produced items. In this 
rule, the Department of Commerce adds Iceland, Liechtenstein, Norway, 
and Switzerland to the list of excluded countries.

DATES: This rule is effective April 8, 2022.

FOR FURTHER INFORMATION CONTACT: For questions on this final rule, 
contact Eileen Albanese, Director, Office of National Security and 
Technology Transfer Controls, Bureau of Industry and Security, 
Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355, 
Email: [email protected]. For emails, include ``Russia'' in the subject 
line.

SUPPLEMENTARY INFORMATION:

Background

    In response to Russia's February 2022 invasion of Ukraine and 
Belarus's substantial enabling of Russia's invasion, the Bureau of 
Industry and Security (BIS) imposed extensive export controls on Russia 
and Belarus under the Export Administration Regulations (15 CFR parts 
730-774) (EAR) by implementing the final rule, Implementation of 
Sanctions Against Russia Under the Export Administration Regulations 
(EAR), effective February 24, 2022 (``Russia rule''),\1\ and four 
subsequent final rules published in March 2022: Imposition of Sanctions 
Against Belarus Under the Export Administration Regulations (EAR), 
effective March 2, 2022 (``Belarus rule''); \2\ Expansion of Sanctions 
Against the Russian Industry Sector Under the Export Administration 
Regulations (EAR) (``Industry Sector rule''); \3\ Further Imposition of 
Sanctions Against Russia with the Addition of Certain Entities to the 
Entity List (``Russia Entity List rule''); \4\ and Imposition of 
Sanctions on `Luxury Goods' Destined for Russia and Belarus and for 
Russian and Belarusian Oligarchs and Malign Actors Under the Export 
Administration Regulations (``Luxury Goods rule'').\5\ As described in 
the Russia rule's preamble, as well as in the other March 2022 rules, 
Russia's invasion of Ukraine and Belarus's enabling of such invasion 
flagrantly violate international law, are contrary to U.S. national 
security and foreign policy interests, and undermine global order, 
peace, and security. Accordingly, BIS has imposed stringent export 
controls on Russia and Belarus.
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    \1\ 87 FR 12226 (March 3, 2022).
    \2\ 87 FR 13048 (March 8, 2022).
    \3\ 87 FR 12856 (March 8, 2022).
    \4\ 87 FR 13141 (March 9, 2022).
    \5\ 87 FR 14785 (March 16, 2022).
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    Also in March 2022, BIS published Addition to the List of Countries 
Excluded from Certain License Requirements under the Export 
Administration Regulations (``South Korea exclusion rule''),\6\ which 
added South Korea to the list of countries in supplement no. 3 to part 
746 of the EAR that are excluded from certain Sec.  746.8 license 
requirements that pertain to items destined for Russia or Belarus. The 
countries listed in supplement no. 3 to part 746 have committed to 
implementing substantially similar export controls on Belarus and 
Russia under their domestic laws. Pursuant to Sec.  746.8(a)(5) of the 
EAR, countries that have made such a commitment receive full or partial 
exclusions, as appropriate, from the FDP rules' license requirements 
set forth under Sec.  746.8(a)(2) and (3). Similarly, the license 
requirements in Sec.  746.8(a)(1) are not used to determine controlled 
U.S.-content under the EAR's de minimis rules, as set forth in 
supplement no. 2 to part 734 of the EAR, provided the

[[Page 21555]]

criteria in Sec.  746.8(a)(5)(i) and (ii) are met.
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    \6\ 87 FR 13627 (March 10, 2022).
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    Iceland, Liechtenstein, Norway, and Switzerland have adopted and 
implemented substantially similar measures to those imposed by BIS 
through U.S. export controls on Russia and Belarus. In recognition of 
their substantial alignment with U.S. controls, BIS adds the four 
countries to supplement no. 3 to part 746 in this rule with the 
designation of ``full.''

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (codified, as 
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for 
BIS's principal authorities and serves as the authority under which BIS 
issues this rule.

Rulemaking Requirements

    1. This final rule is not a ``significant regulatory action'' 
because it ``pertain[s]'' to a ``military or foreign affairs function 
of the United States'' under sec. 3(d)(2) of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person 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 rule 
involves the following OMB-approved collections of information subject 
to the PRA: 0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.6 minutes for a manual or electronic 
submission; 0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute; and 0607-0152 
``Automated Export System (AES) Program,'' which carries a burden hour 
estimate of 3 minutes per electronic submission. BIS anticipates this 
rule will result in a slight decrease in the number of estimated 
license applications because this rule provides relief from the burden 
of the new Russia rule and Belarus rule requirements that would 
otherwise pertain to items produced in, exported or reexported from 
Iceland, Liechtenstein, Norway, or Switzerland, or transferred (in-
country) in either country. Thus, this rule does not create a 
substantive change to OMB Control Numbers 0694-0088, 0694-0096, or 
0607-0152.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the 
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for 
notice of proposed rulemaking, opportunity for public participation, 
and delay in effective date. While section 1762 of ECRA provides 
sufficient authority for such an exemption, this action is also 
independently exempt from these APA requirements because it involves a 
military or foreign affairs function of the United States (5. U.S.C. 
553(a)(1)).
    5. 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 Subjects in 15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, part 746 of the Export 
Administration Regulations (15 CFR parts 730 through 774) is amended as 
follows:

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
1. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority:  50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7, 
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR 
26793 (May 10, 2021).


0
2. Supplement no. 3 to part 746 is amended by adding entries for 
``Iceland,'' ``Liechtenstein,'' ``Norway,'' and ``Switzerland'' to the 
table in alphabetical order to read as follows:

Supplement No. 3 to Part 746--Countries Excluded From Certain License 
Requirements of Sec.  746.8

* * * * *

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                                                      Federal Register
            Country                   Scope               citation
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                              * * * * * * *
Iceland.......................  Full.............  87 FR [INSERT FR PAGE
                                                    NUMBER AND April 12,
                                                    2022].
 
                              * * * * * * *
Liechtenstein.................  Full.............  87 FR [INSERT FR PAGE
                                                    NUMBER AND April 12,
                                                    2022].
 
                              * * * * * * *
Norway........................  Full.............  87 FR [INSERT FR PAGE
                                                    NUMBER AND April 12,
                                                    2022].
 
                              * * * * * * *
Switzerland...................  Full.............  87 FR [INSERT FR PAGE
                                                    NUMBER AND April 12,
                                                    2022].
 
                              * * * * * * *
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[[Page 21556]]

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-07836 Filed 4-8-22; 8:45 am]
BILLING CODE 3510-33-P