[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Rules and Regulations]
[Pages 71250-71251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25541]


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DEPARTMENT OF STATE

22 CFR Part 126

[Public Notice: 11858]
RIN 1400-AF58


International Traffic in Arms Regulations: Prohibited Exports, 
Imports, and Sales to or From Certain Countries--Cyprus

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: The Department of State is amending the International Traffic 
in Arms Regulations (ITAR) to reflect current defense trade policy 
towards Cyprus.

DATES: This rule is effective November 22, 2022.

FOR FURTHER INFORMATION CONTACT: Sarah Heidema, Office of Defense Trade 
Controls Policy, Department of State, telephone (202) 663-1282, or 
email [email protected]. 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 Partnership Act 
of 2019 (Pub. L. 116-94, Div. J.) provide that the policy of denial for 
exports, re-exports, and transfers of defense articles on the United 
States Munitions List to the Republic of Cyprus shall remain in place 
unless the President determines and certifies to the appropriate 
congressional committees not less than annually that: (A) the 
Government of the Republic of Cyprus is continuing to cooperate with 
the United States Government in efforts to implement reforms on anti-
money laundering regulations and financial regulatory oversight; and 
(B) the Government of the Republic of Cyprus has made and is continuing 
to take the steps necessary to deny Russian military vessels access to 
ports for refueling and servicing.
    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 (Pub. L. 116-94, Div. J.) (85 FR 35797, June 
12, 2020). On September 12, 2022, utilizing these authorities, the 
Secretary of State certified to the appropriate congressional 
committees that the Republic of Cyprus meets the statutory requirements 
to remove the policy of denial for exports, re-exports, and transfers 
of defense articles to the Republic of Cyprus for fiscal year 2023. The 
Secretary of State further approved the suspension of the policy of 
denial for exports, reexports, and transfers of defense articles and 
defense services to the Republic of Cyprus for fiscal year 2023. In 
conjunction with the Secretary of State's decision, the Under Secretary 
for Arms Control and International Security used the Department's 
delegated authority (Executive Order 13637) under the Arms Export 
Control Act (22 U.S.C. 2751 et seq.) to suspend the policy of denial 
for retransfers and temporary imports destined for or originating in 
the Republic of Cyprus and brokering activities involving the Republic 
of Cyprus for fiscal year 2023. Accordingly, the Department now amends 
section 126.1 of the International Traffic in Arms Regulations (22 CFR 
parts 120 through

[[Page 71251]]

130) to specify that the Republic of Cyprus' status as a proscribed 
destination is suspended from October 1, 2022, through September 30, 
2023. As a result of this change, certain exemptions to licensing 
requirements are now available for exports, re-exports, retransfers, 
and temporary imports destined for or originating in the Republic of 
Cyprus and brokering activities involving the Republic of Cyprus, 
provided the conditions for use of those exemptions are met. 
Applications for licenses and other authorizations submitted to the 
Directorate of Defense Trade Controls involving the Republic of Cyprus 
and nationals of the Republic of Cyprus are subject to case-by-case 
review.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State (the Department) 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 (APA), pursuant to 5 U.S.C. 553(a)(1). Since the Department is of 
the opinion that this rule is exempt from 5 U.S.C 553, it is the view 
of the Department that the provisions of section 553 do not apply to 
this rulemaking.

Regulatory Flexibility Act

    Since this rule is exempt from the notice-and-comment provisions of 
5 U.S.C. 553(b), it does not require 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 are 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 
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, it is determined that this amendment 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). Because 
the scope of this rule does not impose additional regulatory 
requirements or obligations, the Department believes costs associated 
with this rule will be minimal. This rule has been designated a 
``significant regulatory action'' by the Office and Information and 
Regulatory Affairs under Executive Order 12866.

Executive Order 12988

    The Department 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 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 rule does not impose or revise any information collections 
subject to 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 is revised to read as follows:

    Authority:  22 U.S.C. 287c, 2651a, 2752, 2753, 2776, 2778, 2779, 
2779a, 2780, 2791, 2797; Sec. 1225, Pub. L. 108-375, 118 Stat. 2091; 
Sec. 7045, Pub. L. 112-74, 125 Stat. 1232; Sec. 1250A, Pub. L 116-
92, 133 Stat. 1665; Sec. 205, Pub. L. 116-94, 133 Stat. 3052; E.O. 
13637, 78 FR 16129, 3 CFR, 2013 Comp., p. 223.

0
2. Amend Sec.  126.1 by adding paragraph (r) to read as follows:


Sec.  126.1  

* * * * *
    (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, and the status of Cyprus as a proscribed 
destination, is suspended from October 1, 2022, through September 30, 
2023.
* * * * *

Bonnie Jenkins,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2022-25541 Filed 11-21-22; 8:45 am]
BILLING CODE 4710-25-P