[Federal Register Volume 89, Number 92 (Friday, May 10, 2024)]
[Rules and Regulations]
[Pages 40369-40372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10280]



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 Rules and Regulations
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  Federal Register / Vol. 89, No. 92 / Friday, May 10, 2024 / Rules and 
Regulations  

[[Page 40369]]



DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, and 758

[Docket No. 240506-0127]
RIN 0694-AJ65


Conforming and Clarifying Changes to the Export Administration 
Regulations (EAR)

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This final rule makes conforming and clarifying changes to the 
Export Administration Regulations (EAR). These changes include making 
conforming changes to the EAR to ensure that destination names reflect 
the current destination names that are recognized by the United States 
Government, clarifying the removal of certain license requirements for 
exports, reexports, and transfers (in-country) to and within Australia 
and the United Kingdom, making a conforming change to reflect that 
Cyprus is no longer a Country Group D:5 country, and clarifying how 
Russia and the Russian Federation are referenced for consistency with 
the designation of Russia as a U.S. Arms Embargoed destinations.

DATES: This rule is effective May 30, 2024.

FOR FURTHER INFORMATION CONTACT: For questions on this rule, contact 
Philip Johnson at [email protected] or (202) 482-2440.

SUPPLEMENTARY INFORMATION:

I. Background

    BIS is amending the EAR (15 CFR parts 730-774) by making conforming 
changes to the EAR to ensure that destination names reflect the current 
destination names that are recognized by the United States Government, 
by making conforming changes to ensure that the EAR reflects amendments 
and description of those amendments made pursuant to two recent rules, 
by making a conforming change to reflect that Cyprus is no longer a 
Country Group D:5 country, and by clarifying how Russia and the Russian 
Federation are referenced in the EAR to ensure consistency with the 
designation of Russia as a U.S. Arms Embargoed destination.
    The four sets of changes this final rule makes are described in 
section II as follows:
    A. Conforming changes to the Commerce Country Chart and Country 
Groups to ensure consistency with destinations names that are 
recognized by the United States Government;
    B. Conforming changes to the Commerce Country Chart entries for 
Australia and the United Kingdom;
    C. Conforming change to reflect Cyprus is no longer a Country Group 
D:5 country; and
    D. Removing obsolete references to Russia and the Russian 
Federation in provisions that predate the country's addition to Country 
Group D:5.

II. Regulatory Changes

A. Conforming Changes to the Commerce Country Chart and Country Groups 
To Ensure Consistency With Destination Names That Are Recognized by the 
United States Government

    This final rule in supplement no. 1 to part 738 (Commerce Country 
Chart) removes Swaziland from the Commerce Country Chart and replaces 
it, in alphabetical order, with Eswatini. On April 19, 2018, King 
Mswati III declared that the country be known as the Kingdom of 
Eswatini, rather than the Kingdom of Swaziland. BIS makes this change 
to conform to King Mswati III's declaration, as subsequently formally 
recognized by the State Department (see https://www.state.gov/countries-areas/eswatini/). This final rule also removes Macedonia (The 
Former Yugoslav Republic of) from the Commerce Country Chart and 
replaces it, in alphabetical order, with North Macedonia. BIS makes 
this change to the conform to the State Department's formal recognition 
of the new name in February 2019 (see https://history.state.gov/countries/macedonia). Lastly, this final rule removes Turkey from the 
Commerce Country Chart and replaces it, in alphabetical order, with 
T[uuml]rkiye. BIS makes this change to conform to the State 
Department's recognition on January 9, 2023 of the new country's new 
name (see https://www.state.gov/countries-areas/turkey/). This rule 
revises only the names of the three countries; the information set 
forth in each of the three entries otherwise remains the same.
    As a conforming change to the changes made to the Commerce Country 
Chart described above, this final rule removes Swaziland from Country 
Group B in supplement no. 1 to part 740, Country Groups), and replaces 
it (in alphabetical order) with Eswatini. Similarly, this rule removes 
Macedonia (the Former Yugoslav Republic of) from Country Group B and 
replaces it, in alphabetical order, with North Macedonia.

B. Conforming Changes to Commerce Country Chart Entries for Australia 
and the United Kingdom

    This final rule also revises the Commerce Country Chart entries for 
Australia and the United Kingdom in supplement no. 1 to part 738 to 
align with the policy decisions and regulatory changes described and 
implemented in the August 19, 2024 interim final rule, ``Export Control 
Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced 
Trilateral Security Partnership'' (89 FR 28594, published and effective 
on April 19, 2024) (April 19 IFR). Specifically, the April 19 IFR 
removed the license requirements for national security column 1 (NS1), 
regional stability column 1 (RS1), and missile technology column 1 
(MT1) reasons for control for these two countries, as well as the 
footnote 3 designations for both of these countries, because the 
license requirements referenced in footnote 3 were no longer 
applicable.
    This rule corrects inadvertent errors in which a subsequent interim 
final rule, ``Revisions of Firearms License Requirements'' (89 FR 
34680, published on April 30, 2024, and effective on May 30, 2024) 
(April 30 IFR), erroneously included an ``X'' under the NS1, RS1, and 
MT1 reasons for control for Australia and the United Kingdom and also 
erroneously included the previously-applicable footnote 3 designation 
for these two countries. This final rule revises the entries for

[[Page 40370]]

Australia and the United Kingdom by removing the license requirement 
for NS1, RS1, and MT1, as well as the footnote 3 designation, for 
consistency with the intended regulatory changes described in the April 
19 IFR.
    The changes in this final rule described under this section II.B 
are limited to removing text (as described above) that inadvertently 
appeared in the two Commerce Country Chart entries. The April 30 IFR 
correctly removed the footnote 9 designation for Australia and the 
United Kingdom. The April 30 IFR addressed the license requirement 
described in footnote 9 for these two destinations by adding an ``X'' 
in the crime control column 2 (CC2) reason for control for these two 
countries.

C. Conforming Change to Reflect the Fact That Cyprus is No Longer a 
Country Group D:5 Country

    The U.S. State Department recently amended Sec.  126.1 of the 
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120 
through 130) to specify that Cyprus's status as a proscribed 
destination is suspended from October 1, 2023 through September 30, 
2024 (see 88 FR 63016). Consistent with this change, Cyprus was 
effectively removed from Country Group D:5. As set forth in the Note to 
Country Group D:5 in supplement no. 1 to part 740 of the EAR, if there 
are any discrepancies between the list of D:5 countries and the 
countries identified by the Department of State as subject to a U.S. 
arms embargo, the State Department's list shall be controlling. To 
avoid confusion on the part of exporters, reexporters, and transferors, 
this final rule removes Cyprus from D:5. D:5 was the only ``X'' in the 
entry for Cyprus under Country Group D, so the entry is no longer 
needed.

D. Removing, for Clarity, References to Russia and the Russian 
Federation for Provisions That Also extend to Country Group D:5

    The final rule, ``Implementation of Sanctions Against Russia Under 
the Export Administration Regulations (EAR)'' (87 FR 12226, published 
March 3, 2022, and effective February 24, 2022), included amendments to 
supplement no. 1 to part 740 (Country Groups) of the EAR consistent 
with the ITAR Sec.  126.1. The March 3 final rule updated the Country 
Group designation for Russia in supplement no. 1 to part 740 to reflect 
its identification by the Department of State as a country subject to a 
United States arms embargo. As noted above, BIS harmonizes the arms 
embargo-related provisions in the EAR with the Directorate of Defense 
Trade Control's (DDTC's) regulation of arms embargoes in Sec.  126.1 of 
the ITAR. Three sections of the EAR, which predated the March 18, 2021 
(see 86 FR 14802) addition of Russia to Sec.  126.1 under the ITAR, 
continued to separately identify Russia or the Russian Federation from 
Country Group D:5. These references are unnecessary due to the fact 
that Russia was subsequently added to Country Group D:5. Specifically, 
this final rule revises Sec.  734.18(a)(5)(iv); Sec.  740.9(a) 
introductory text (the fourth and seventh sentences) and paragraph 
(b)(5)(ii); and Sec.  758.10, Note 1 to paragraph (b)(1), by removing 
references to Russia or the Russian Federation when the same sentence 
also refers to Country Group D:5. In the case of Sec.  740.9(b)(5)(ii), 
the broader exclusion under paragraph (b)(5)(i) means the narrow 
exclusion under (b)(5)(ii) should not include Russia, which is subject 
to the broader exclusion as a Country Group D:5 country.

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), 50 U.S.C. 4801-
4852. ECRA, as amended, provides the legal basis for BIS's principal 
authorities and serves as the authority under which BIS issues this 
rule.

Rulemaking Requirements

    1. BIS has examined the impact of this rule as required by 
Executive Orders 12866, 13563, and 14094. Pursuant to E.O. 12866, as 
amended by E.O. 14094, this final rule has not been determined to be a 
``significant regulatory action.''
    2. Notwithstanding any other provision of law, no person is 
required to respond to or 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 regulation involves an 
information collection approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System. BIS does not 
anticipate a change to the burden hours associated with this collection 
as a result of this rule. Information regarding the collection, 
including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
    3. This rule does not contain policies with federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to Section 1762 of ECRA (50 U.S.C. 4821), 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. Additionally, this rule is 
exempt from the ordinary rulemaking requirements of the APA pursuant to 
5 U.S.C. 553(a)(1) as a military or foreign affairs function of the 
United States Government.
    5. Because neither the APA nor any other law requires that notice 
of proposed rulemaking and an opportunity for public comment be given 
for this rule, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, 
no Final Regulatory Flexibility Analysis is required, and none has been 
prepared.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Part 738

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 758

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.
    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 734, 738, 740, and 758 of the Export 
Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
1. The authority citation for 15 CFR part 734 is revised 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.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., 
p. 223; Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).

[[Page 40371]]


0
2. Section 734.18(a)(5) is amended by revising paragraph (a)(5)(iv) to 
read as follows:


Sec.  734.18   Activities that are not exports, reexports, or 
transfers.

    (a) * * *
    (5) * * *
    (iv) Not intentionally stored in a country listed in Country Group 
D:5 (see supplement no. 1 to part 740 of the EAR).

    Note 1 to paragraph (a)(5)(iv): Data in-transit via the internet 
is not deemed to be stored.

* * * * *

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

0
3. The authority citation for 15 CFR part 738 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 
42 U.S.C. 2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.


0
4. Supplement no. 1 to part 738 is amended by:
0
a. Revising the entry for ``Australia'';
0
b. Adding an entry for ``Eswatini'' in alphabetical order;
0
c. Removing the entries for ``Macedonia (The Former Yugoslav Republic 
of)'';
0
d. Adding an entry for ``North Macedonia'' in alphabetical order;
0
e. Removing the entry for ``Swaziland'';
0
f. Removing the entry for ``Turkey''; and
0
g. Adding an entry for ``T[uuml]rkiye'' in alphabetical order.
0
h. Revising the entry for the ``United Kingdom'';
    The additions and revisions read as follows:

Supplement No. 1 to Part 738--Commerce Country Chart

* * * * *

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Chemical & biological         Nuclear          National        Missile       Regional        Firearms         Crime control           Anti-
                                                        weapons           nonproliferation      security         tech         stability      convention  ------------------------    terrorism
                  Countries                   -----------------------------------------------------------------------------------------------------------                        ---------------
                                                 CB 1     CB 2     CB 3     NP 1     NP 2     NS 1     NS 2      MT 1       RS 1     RS 2       FC 1       CC 1    CC 2    CC 3    AT 1    AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                          * * * * * * *
Australia....................................       X   .......  .......  .......  .......  .......  .......  ..........  .......  .......  ............  ......      X
 
                                                                                          * * * * * * *
Eswatini.....................................       X        X   .......       X   .......       X        X           X        X        X   ............      X       X       X
 
                                                                                          * * * * * * *
North Macedonia..............................       X        X   .......       X   .......       X        X           X        X        X   ............      X       X       X
 
                                                                                          * * * * * * *
T[uuml]rkiye.................................       X   .......  .......  .......  .......       X   .......          X        X   .......  ............  ......      X
 
                                                                                          * * * * * * *
United Kingdom...............................       X   .......  .......  .......  .......  .......  .......  ..........  .......  .......  ............  ......      X
 
                                                                                          * * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *

PART 740--LICENSE EXCEPTIONS

0
5. The authority citation for 15 CFR part 740 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. 7201 et seq.; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783.


0
6. Section 740.9 is amended by:
0
a. Removing ``Russia,'' in the fourth and seventh sentences of 
paragraph (a) introductory text wherever it appears; and
0
b. Removing ``Russia,'' in paragraph (b)(5)(ii) wherever it appears.

0
7. Supplement no. 1 to part 740 is amended by:
0
a. In the ``Country Group A'' and ``Country Group B'' tables, removing 
the entry for ``Turkey'' and adding an entry for ``T[uuml]rkiye'' in 
alphabetical order;
0
b. In the ``Country Group B'' table:
0
i. Adding an entry for ``Eswatini'' in alphabetical order;
0
i. Removing the entry for ``Macedonia, The Former Yugoslav Republic 
of'', and adding an entry for ``North Macedonia'' in alphabetical 
order;
0
ii. Removing the entry for ``Swaziland''; and
0
c. In the ``Country Group D'' table, removing the entry for Cyprus.
    The additions and revisions read as follows:

Supplement No. 1 to Part 740--Commerce Country Chart

                                                                     Country Group A
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  [A:2] Missile                     [A:4]
                                                                [A:1] Wassenaar     technology        [A:3]        Nuclear
                            Country                              participating   control  regime    Australia     suppliers       [A:5]         [A:6]
                                                                   states \1\          \2\            group       group \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
T[uuml]rkiye..................................................               X                X             X             X             X
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
 * * * * * * *
\1\ Country Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
\2\ Country Group A:2 is a list of the Missile Technology Control Regime countries, except for Russia.
\3\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC), Russia, and Belarus.


[[Page 40372]]

* * * * *
Country Group B--Countries
* * * * *
Eswatini
* * * * *
North Macedonia
* * * * *
T[uuml]rkiye
* * * * *

PART 758--EXPORT CLEARANCE REQUIREMENTS AND AUTHORITIES

0
8. The authority citation for 15 CFR part 758 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.


0
9. Section 758.10 is amended by removing ``Russia,'' in Note 1 to 
paragraph (b)(1) wherever it appears.

Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-10280 Filed 5-8-24; 11:15 am]
BILLING CODE 3510-33-P