Denied Persons and Specially Designated Nationals, 8718-8720 [05-3465]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security
• Industry and Security Bureau

[Federal Register Volume 70, Number 35 (Wednesday, February 23, 2005)]
[Rules and Regulations]
[Pages 8718-8720]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-3465]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 736, 752, and 764

[Docket No. 050208029-5029-01]
RIN 0694-AD43


Denied Persons and Specially Designated Nationals

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule removes all reference in the Export 
Administration Regulations (EAR) to the supplement containing the list 
of persons denied export privileges (``Denied Persons List'' (DPL)) 
because no such supplement exists in the Code of Federal Regulations. 
In the past, such a supplement has been included only in the unofficial 
loose-leaf version of the EAR that is available by subscription from 
the U.S. Government Printing Office. In addition, the Bureau of 
Industry and Security provides notice to the public that it is 
discontinuing its practice of including in the loose-leaf version of 
the EAR both the DPL and the ``Specially Designated Nationals and 
Blocked Persons'' (SDN) List. Revisions to the DPL and SDN List are 
issued on such a frequent basis as to make the quarterly, hard-copy 
versions of the lists included in the loose-leaf version of the EAR 
inaccurate. The removal of the DPL and SDN List from the loose-leaf 
version of the EAR will minimize any potential that parties might rely 
on an outdated list of persons denied export privileges under the EAR.

DATES: Effective Date: This rule is effective February 23, 2005.

ADDRESSES: Although there is no official comment period, you may submit 
comments, identified by RIN 0694-AD43, by any of the following methods:
     E-mail: mcohen@bis.doc.gov. Include ``RIN 0694-AD43'' in 
the subject line of the message.
     Fax: 202-482-3355.
     Mail or Hand Delivery/Courier: U.S. Department of 
Commerce, Bureau of Industry and Security, Regulatory Policy Division, 
14th & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230, ATTN: 
0694-AD43.
    Send a copy of any comments that concern information collection 
requirements to Dave Rostker, OMB Desk Officer, New Executive Office 
Building, 725 17th Street, NW., Washington, DC 20503; and to the Office 
of Administration, Bureau of Industry and Security, Department of 
Commerce, 14th and Pennsylvania Avenue, NW., Room 6092, Washington, DC 
20230.

FOR FURTHER INFORMATION CONTACT: Marcus Cohen, Regulatory Policy 
Division, Office of Exporter Services, Bureau of Industry and Security, 
Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION: In the unofficial loose-leaf version of the 
Export Administration Regulations (EAR) that is available by 
subscription from the U.S. Government Printing Office, the Bureau of 
Industry and Security (BIS) currently publishes, on a quarterly basis, 
the list of persons denied export privileges pursuant to Parts 764 and 
766 of the EAR (``Denied Persons List'' (DPL)) and a copy of the 
``Specially Designated Nationals and Blocked Persons'' (SDN) List, 
which is published by the U.S. Treasury Department, Office of Foreign 
Assets Control (OFAC). In the loose-leaf edition of the EAR, the DPL 
and the SDN List have been designated as Supplements No. 2 and 3, 
respectively, to Part 764. However, no such supplements exist in the 
Code of Federal Regulations, Title 15 Part 764.
    Orders affecting export privileges under the EAR and revisions to 
the SDN List are issued on such a frequent basis as to make the 
quarterly, hard-copy versions of the DPL and the SDN List inaccurate. 
As such, BIS is discontinuing quarterly reprints of these lists in the 
loose-leaf edition of the EAR. The removal of these lists from the 
loose-leaf edition of the EAR will minimize any potential that parties 
to a transaction might rely on an outdated list of persons denied 
export privileges under the EAR. BIS maintains a current compilation of 
persons denied export privileges under the EAR on its Web site, and 
OFAC maintains a current list of specially designated nationals on its 
Web site. Export privileges are denied by written order of the 
Department of Commerce; such orders are published in the Federal 
Register. These orders are the official source of information about 
denied persons, and are controlling documents in accordance with their 
terms.
    This rule removes from Sec.  736.2(b)(4)(i) and paragraph (a)(1) of 
Supplement No. 1 to Part 764 language stating that BIS provides the DPL 
in the loose-leaf edition of the EAR. This rule also revises Sec.  
736.2(a)(3) to clarify that, with respect to the end-user, General 
Prohibition Four (Sec.  736.2(b)(4)) and Supplement No. 1 to Part 764 
of the EAR should be consulted for references to persons with whom 
transactions may not be permitted, and General Prohibition Five (Sec.  
736.2(b)(5)) should be consulted for references to end-users for whom 
an export or reexport license may be required. General Prohibition Four 
prohibits actions that are prohibited by a denial order issued under 
Part 766 of the EAR. General Prohibition Five prohibits any exports and 
reexports to an end-user prohibited by Part 744 of the EAR, which 
contains end-user and end-use based controls. Supplement No. 1 to Part 
764 describes denial orders, which prohibit certain transactions with 
named parties involving items that are subject to the EAR. Supplement 
No. 1 to Part 764 also references the list of persons denied export 
privileges.
    This rule also makes necessary conforming changes by removing 
references to Supplement No. 2 to Part 764 from Sec. Sec.  
752.11(c)(3), 752.11(c)(4), and 752.12(a). Finally, this rule revises 
Sec. Sec.  752.9(a)(3)(ii)(G) and 752.12(a) by removing the procedural 
requirement of distributing and retaining copies of the DPL. Instead, 
each Special Comprehensive License (SCL) holder and each consignee must 
maintain a record of its procedures for screening transactions to 
prevent violations of orders denying export privileges. By making this 
requirement functional and results-oriented, this revision will 
increase the effectiveness of screening and reduce the burden on SCL 
holders and consignees.
    Although the Export Administration Act expired on August 20, 2001, 
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 
(2002)), as extended most recently by the Notice of August 6, 2004, (69 
FR 48763 (August 10, 2004)) continues the Regulations in effect under 
the International Emergency Economic Powers Act.

[[Page 8719]]

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E.O. 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 a collection of information subject to the PRA. This 
collection has been approved by OMB under control number 0694-0088, 
``Multi-Purpose Application,'' which carries a burden hour estimate of 
58 minutes for a manual or electronic submission. Send comments 
regarding these burden estimates or any other aspect of these 
collections of information, including suggestions for reducing the 
burden, to Dave Rostker, OMB Desk Officer, New Executive Office 
Building, 725 17th Street, NW., Washington, DC 20503; and to the Office 
of Administration, Bureau of Industry and Security, Department of 
Commerce, 14th and Pennsylvania Avenue, NW., Room 6092, Washington, DC 
20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
requiring a notice of proposed rulemaking and the opportunity for 
public comment. This rule makes changes to Parts 736, 752, and 764 of 
the EAR that are non-substantive and do not affect the rights or 
obligations of the public. This rule removes references in the EAR to 
the DPL and notifies the public that it BIS is discontinuing its 
practice of including the DPL and SDN List in the loose-leaf version of 
the EAR. Because these revisions are not substantive changes to the 
EAR, it is unnecessary to provide notice and opportunity for public 
comment. In addition, because this is not a substantive rule, the delay 
in effective date pursuant to 5 U.S.C. 553(d)(3) is not applicable. No 
other law requires that a notice of proposed rulemaking and an 
opportunity for public comment be given for this rule. Because a notice 
of proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under the Administrative Procedure 
Act or by any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, 
this regulation is issued in final form.

List of Subjects

15 CFR Part 736

    Exports, Foreign trade.

15 CFR Part 752

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

15 CFR Part 764

    Administrative practice and procedure, Exports, Law enforcement, 
Penalties.

0
Accordingly, parts 736, 752, and 764 of the Export Administration 
Regulations (15 CFR parts 730-799) are amended, as follows:

PART 736--[AMENDED]

0
1. The authority citation for 15 CFR part 736 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 2151 (note), Pub. L. 108-175; 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. 13338, 69 FR 
26751, May 13, 2004; Notice of August 6, 2004, 69 FR 48763 (August 
10, 2004); Notice of November 4, 2004, 69 FR 64637 (November 8, 
2004).


0
2. Section 736.2 is amended by revising paragraphs (a)(3) and 
(b)(4)(i), as follows:


Sec.  736.2  General prohibitions and determination of applicability.

    (a) * * *
    (3) End-user. The ultimate end user (see General Prohibition Four 
(paragraph (b)(4) of this section) and Supplement No. 1 to part 764 of 
the EAR for references to persons with whom your transaction may not be 
permitted; see General Prohibition Five (Paragraph (b)(5) of this 
section) and part 744 for references to end-users for whom you may need 
an export or reexport license).
* * * * *
    (b) * * *
    (4) * * *
    (i) You may not take any action that is prohibited by a denial 
order issued under part 766 of the EAR, Administrative Enforcement 
Proceedings. These orders prohibit many actions in addition to direct 
exports by the person denied export privileges, including some 
transfers within a single country, either in the United States or 
abroad, by other persons. You are responsible for ensuring that any of 
your transactions in which a person who is denied export privileges is 
involved do not violate the terms of the order. Orders denying export 
privileges are published in the Federal Register when they are issued 
and are the legally controlling documents in accordance with their 
terms. BIS also maintains compilations of persons denied export 
privileges on its Web site at https://www.bis.doc.gov. BIS may, on an 
exceptional basis, authorize activity otherwise prohibited by a denial 
order. See Sec.  764.3(a)(2) of the EAR.
* * * * *

PART 752--[AMENDED]

0
3. The authority citation for 15 CFR part 752 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 13222, 66 FR 
44025, 3 CFR, 2001 Comp., p. 783; Notice of August 6, 2004, 69 FR 
48763 (August 10, 2004).

0
4. Section 752.9 is amended by revising paragraph (a)(3)(ii)(G), as 
follows:


Sec.  752.9  Action on SCL applications.

    (a) * * *
    (3) * * *
    (ii) * * *
    (G) A copy of your procedures for screening transactions to prevent 
violations of orders denying export privileges under the EAR:
* * * * *

0
5. Section 752.11 is amended by revising paragraph (c)(3) and (c)(4), 
as follows:


Sec.  752.11  Internal Control Programs.

* * * * *
    (c) * * *
    (3) A system for timely distribution to consignees and verification 
of receipt by consignees of regulatory materials necessary to ensure 
compliance with the EAR;
    (4) A system for screening transactions to prevent violations of 
orders denying export privileges under the EAR;
* * * * *

0
6. Section 752.12 is amended by revising paragraph (a), as follows:


Sec.  752.12  Recordkeeping requirements.

    (a) SCL holder and consignees. In addition to the recordkeeping 
requirements of part 762 of the EAR, the SCL holder and each consignee 
must maintain copies of manuals, guidelines, policy statements, 
internal audit procedures, reports, and other

[[Page 8720]]

documents making up the ICP of each party included under an SCL and all 
regulatory materials necessary to ensure compliance with the SCL, such 
as relevant changes to the EAR, product classification, additions, 
deletions, or other administrative changes to the SCL, transmittal 
letters and consignee's confirmations of receipt of these materials. 
Each SCL holder and each consignee must maintain a record of its 
procedures for screening transactions to prevent violations of orders 
denying export privileges.
* * * * *

PART 764--[AMENDED]

0
7. The authority citation for 15 CFR part 764 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
6, 2004, 69 FR 48763 (August 10, 2004).


0
8. Supplement No. 1 to Part 764 is amended by revising the sixth 
sentence of paragraph (a)(1), as follows:

Supplement No. 1 to Part 764--Standard Terms of Orders of Denying 
Export Privileges

    (a) * * *
    (1) * * * BIS provides a list of persons currently subject to 
denial orders on its Web site at https://www.bis.doc.gov.
* * * * *

    Dated: February 14, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 05-3465 Filed 2-22-05; 8:45 am]
BILLING CODE 3510-33-P