[Federal Register Volume 88, Number 177 (Thursday, September 14, 2023)]
[Rules and Regulations]
[Pages 63016-63017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19851]


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DEPARTMENT OF STATE

22 CFR Part 126

[Public Notice: 12155]
RIN 1400-AF69


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 to reflect current defense trade policy toward 
Cyprus.

DATES: This rule is effective on October 1, 2023.

FOR FURTHER INFORMATION CONTACT: Ms. Maria Tatarska, Foreign Affairs 
Officer, Office of Defense Trade Controls Policy, U.S. Department of 
State, telephone (771) 205-7671; 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) (2020 NDAA) and 
section 205(d) of the Eastern Mediterranean Security and Energy 
Partnership Act of 2019 (Pub. L. 116-94, Div. J.) (EMSEPA) provide that 
the policy of denial for exports, reexports, 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 the 2020 NDAA and the 
EMSEPA (85 FR 35797, June 12, 2020). On August 14, 2023, 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, 
reexports, and transfers of defense articles to the Republic of Cyprus 
for fiscal year 2024. 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 2024. In conjunction with this action, the 
Secretary of State also suspended 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 2024. Accordingly, the Department now amends section 126.1 
of the International Traffic in Arms Regulations (ITAR) (22 CFR parts 
120 through 130) to specify that the Republic of Cyprus' status as a 
proscribed destination is suspended from October 1, 2023, through 
September 30, 2024. This action continues the Department's current 
policy, which suspended the status of the Republic of Cyprus as a 
proscribed destination under Sec.  126.1 of the ITAR on October 1, 
2022.
    As a result of this change, certain exemptions to licensing 
requirements continue to be available for exports, reexports, 
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

    This rulemaking is exempt from section 553 of the Administrative 
Procedure Act (APA) pursuant to section 553(a)(1) as a military or 
foreign affairs function of the United States. As the provisions of 
section 553 do not apply to this rulemaking, the Department is 
publishing this rule without a delay in its effective date or a request 
for public comment.

Regulatory Flexibility Act

    Since this rule is exempt from the notice-and-comment rulemaking 
provisions of 5 U.S.C. 553, 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 were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Congressional Review Act

    It is the view of the Office of Information and Regulatory Affairs 
that this rulemaking is not a major rule under the criteria of 5 U.S.C. 
804. This rule will not increase costs or prices and should have no 
adverse effects on competition, employment, investment, productivity, 
innovation, or the ability of U.S.-based enterprises to compete with 
foreign-based enterprises in domestic and export markets. The 
Department does not expect this rule to have an annual effect on the 
economy of $100 million or more.

[[Page 63017]]

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, 14094, and 13563

    Executive Orders 12866 (as amended by Executive Order 14094) 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. Because the scope of 
this rule implements a governmental policy expanding defense trade with 
a country, and does not impose additional regulatory requirements or 
obligations, the Department believes costs associated with this rule 
will be minimal. This rule has been designated as a significant 
regulatory action by the Office of Information and Regulatory Affairs 
under Executive Order 12866, as amended.

Executive Order 12988

    The Department of State has 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 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 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 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:
    (1) 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; and
    (2) From October 1, 2023, through September 30, 2024, the policy of 
denial and the status of Cyprus as a proscribed destination is 
suspended.
* * * * *

Bonnie Jenkins,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2023-19851 Filed 9-13-23; 8:45 am]
BILLING CODE 4710-25-P