Licensing Policy for Entities Sanctioned Under Specified Statutes; License Requirement for Certain Sanctioned Entities; and Imposition of License Requirement for Tula Instrument Design Bureau, 10865-10868 [05-4325]
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Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Rules and Regulations
§ 700.13
orders.
Acceptance and rejection of rated
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(d) Customer notification
requirements. (1) A person must accept
or reject a rated order and transmit the
acceptance or rejection in writing (hard
copy), or in electronic format, within
fifteen (15) working days after receipt of
a DO rated order and within ten (10)
working days after receipt of a DX rated
order. If the order is rejected, the person
must also provide the reasons for the
rejection, pursuant to paragraphs (b) and
(c) of this section, in writing (hard copy)
or electronic format.
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Dated: March 1, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 05–4326 Filed 3–4–05; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 041222360–4360–01]
RIN 0694–AD24
Licensing Policy for Entities
Sanctioned Under Specified Statutes;
License Requirement for Certain
Sanctioned Entities; and Imposition of
License Requirement for Tula
Instrument Design Bureau
Regulatory Identification Number (RIN)
0694–AD24 in all comments. Comments
on the information collection should
also be sent to David Rostker, Office of
Management and Budget Desk Officer,
by e-mail at
david_rostker@omb.eop.gov, or by fax to
(202) 395–7285. Refer to Regulatory
Identification Number (RIN) 0694–AD24
in all comments.
FOR FURTHER INFORMATION CONTACT:
William Arvin, Regulatory Policy
Division, Office of Exporter Services at
warvin@bis.doc.gov or (202) 482–2440.
SUPPLEMENTARY INFORMATION: Several
statutes authorize or require the United
States Government to impose export
sanctions on entities if such entities
have engaged in activities that
contribute to the proliferation of
weapons of mass destruction or are
otherwise contrary to the foreign policy
interests of the United States. This rule
sets forth BIS’s licensing policy for
entities subject to sanctions imposed by
the State Department under the Iran-Iraq
Arms Nonproliferation Act of 1992
(Pub. L. 102–484), the Iran
Nonproliferation Act of 2000 (Pub. L.
107–178) and section 11B(b)(1) of the
Export Administration Act of 1979 (also
known as the Missile Technology
Control Act of 1990). This rule also
imposes a new license requirement for
certain entities sanctioned by the State
Department, and identifies one specific
entity, Tula Instrument Design Bureau
of Russia, subject to this new license
requirement.
AGENCY:
Licensing Policy for Transactions
Involving Sanctioned Entities
This rule states BIS’s
licensing policy regarding transactions
involving entities sanctioned by the
State Department under three specified
statutes, imposes a new license
requirement for certain entities
sanctioned by the State Department, and
identifies one specific entity subject to
this new license requirement, Tula
Instrument Design Bureau of Russia.
DATES: This rule is effective March 7,
2005. Comments must be received by
May 6, 2005.
ADDRESSES: Comments may be
submitted by e-mail to
rpd2@bis.doc.gov, by fax at (202) 482–
3355, or on paper to Regulatory Policy
Division, Office of Exporter Services,
Bureau of Industry and Security, Room
H2705, U.S. Department of Commerce,
14th Street and Pennsylvania Avenue,
NW., Washington, DC 20230. Refer to
This rule amends the Export
Administration Regulations (EAR) by
adding new § 744.19 to set forth
explicitly BIS’s licensing policy
regarding entities sanctioned by the
State Department under the authority of
three statutes. Specifically, new § 744.19
provides that BIS’s policy is to deny any
export or reexport license application if
the applicant, other party authorized to
receive the license, purchaser,
intermediate consignee, ultimate
consignee, or end-user is subject to: (1)
A sanction issued pursuant to the IranIraq Arms Nonproliferation Act of 1992
(Pub. L. 102–484) that prohibits the
issuance of any license for any export by
or to the sanctioned person or, (2) a
sanction issued pursuant to the Iran
Nonproliferation Act of 2000 (Pub. L.
107–178) that prohibits the granting of
a license for the transfer to foreign
persons of items, the export of which is
controlled under the Export
Administration Regulations, or (3) a
sanction issued pursuant to section
Bureau of Industry and
Security, Commerce.
ACTION: Interim final rule with request
for comments.
SUMMARY:
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10865
11B(b)(1)(B)(ii) of the Export
Administration Act of 1979, as amended
(also known as the Missile Technology
Control Act of 1990), that prohibits the
issuance of new licenses for exports to
the sanctioned entity of items controlled
pursuant to the Export Administration
Act of 1979. In addition, § 744.19 sets
forth BIS’s policy to deny any export or
reexport application for items listed on
the Commerce Control List with missile
technology (MT) listed as a reason for
control if any entity subject to a
sanction issued pursuant to section
11B(b)(1)(B)(i) of the Export
Administration Act of 1979, as
amended, is a party to the transaction.
Section 11B(b)(1)(B)(i) prohibits the
issuance of new individual licenses for
exports to the sanctioned entity of
MTCR annex equipment or technology
controlled pursuant to the Export
Administration Act of 1979.
The State Department publishes
notices of the imposition of sanctions
under these three statutes in the Federal
Register. Because they do not involve
the imposition of any new license
requirements, the sanctions do not
require amendment of the EAR and,
prior to publication of this rule, were
not incorporated into or otherwise
referenced in the EAR. The sanctions
imposed under the three statutes,
however, prescribe the licensing policy
that BIS must apply to applications that
involve the transfer of certain items to,
and in the case of the Iran-Iraq Arms
Nonproliferation Act of 1992 by, the
sanctioned entity. New § 744.19
provides a reference to these sanctions
in the EAR and also sets forth BIS’s
policy that a license application is
subject to a general policy of denial if
a sanctioned entity is listed as any party
to the transaction, including the
purchaser or intermediate consignee, on
the license application.
New License Requirement
This rule adds new § 744.20 to the
EAR to provide that BIS may impose, as
new foreign policy controls, license
requirements on exports and reexports
of items subject to the EAR to entities
sanctioned by the State Department.
Such license requirements are in
addition to those imposed by other
provisions of the EAR. Decisions to
impose such license requirements will
be made on a case-by-case basis. In
determining whether to impose license
requirements pursuant to § 744.20, BIS
will consider the nature of the action
that led to the State Department
sanction and whether, because of that
action, such sanctioned parties would
not be reliable parties to export or
reexport transactions subject to the EAR.
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10866
Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Rules and Regulations
License requirements imposed
pursuant to § 744.20 are foreign policy
controls imposed pursuant to the
provisions of § 6 of the Export
Administration Act of 1979. License
requirements pursuant to § 744.20 will
be imposed by adding the sanctioned
entity to the Entity List (Supplement
No. 4 to part 744). The Entity List entry
will also refer to § 744.20, state the
license requirements that apply to the
entity, what license exceptions, if any,
are available, and the licensing policy
that applies to the entity.
Addition of an Entity to the Entity List
Pursuant to New § 744.20
This rule imposes a license
requirement under new § 744.20 for
exports or reexports to Tula Instrument
Design Bureau (all locations including
at Tula 300001, Russia) of the
government of the Russian Federation
(Tula) for all items subject to the EAR
having a classification other than
EAR99, prohibits use of any License
Exception for such exports or reexports,
and imposes a general policy of denial
for all license applications to export or
reexport to Tula. The rule adds Tula to
the Entity List (Supplement No. 4 to
part 744 of the EAR).
On April 21, 1999, the State
Department found, inter alia, that Tula
was a Government of Russia entity that
was specifically involved in the transfer
of lethal military equipment to a
country determined by the Secretary of
State to be a state sponsor of terrorism.
Because of that finding, the State
Department determined that ‘‘the policy
of the United States Government [is] to
deny U.S. Government Assistance to
[Tula]’’ (see 64 FR 23148, April 29,
1999). BIS is imposing this license
requirement, prohibition on use of
license exceptions, and policy of denial,
to further the foreign policy interest of
the United States in deterring the
transfer of lethal military equipment to
state sponsors of terrorism.
This action is a new foreign policy
control imposed pursuant to the
requirements of § 6 of the Export
Administration Act and requires a
report to Congress. The report was
delivered to Congress on February 25,
2005.
Although the Export Administration
Act of 1979 (EAA), as amended, expired
on August 20, 2001, Executive Order
13222 of August 17, 2001 (3 CFR, 2001
Comp., p. 783 (2002)) as extended by
the Notice of August 6, 2004, 69 FR
48763 (August 10, 2004), continues the
EAR in effect under the International
Emergency Economic Powers Act
(IEEPA).
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Savings Clause
Exports and reexports that did not
require a license or that were eligible for
a License Exception prior to publication
of this rule and for which this rule
imposes a new license requirement or
removes that License Exception
availability may be made without a
license or under that License Exception
if the items being exported or
reexported were on dock for loading, on
lighter, laden aboard an exporting
carrier, or en route aboard a carrier to
a port of export pursuant to actual
orders for export or reexport on or
before March 22, 2005, and exported or
reexported on or before April 6, 2005.
Any such exports or reexports not
meeting those deadlines require a
license in accordance with this rule.
Rulemaking Requirements
1. This rule has been determined not
to be significant for purposes of
Executive Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to nor 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 collections previously
approved by the OMB under control
numbers 0694–0088, ‘‘Multi-Purpose
Application,’’ which carries a burden
hour estimate of 58 minutes to prepare
and submit form BIS–748.
Miscellaneous and recordkeeping
activities account for 12 minutes per
submission. Burden hours associated
with the Paperwork Reduction Act and
Office and Management and Budget
control number 0694–0088 are not
impacted by this regulation. Send
comments regarding these burden
estimates or any other aspect of these
collections of information, including
suggestions for reducing the burden, to
David Rostker, OMB Desk Officer, by email at david_rostker@omb.eop.gov or
by fax to (202) 395–7285; and to the
Regulatory Policy Division, Bureau of
Industry and Security, Department of
Commerce, P.O. Box 273, Washington,
DC 20044.
3. This rule does not contain policies
with federalism implications as that
term is defined in Executive Order
13132.
4. The provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, the opportunity for public
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participation, and a delay in effective
date, are inapplicable because this
regulation involves a military or foreign
affairs function of the United States (see
5 U.S.C. 553(a)(1)). Further, 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 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. However, BIS is issuing
this rule in interim final form with a
request for comments.
Request for Comments
BIS is seeking public comments on
this interim final rule. The period for
submission of comments will close May
6, 2005. BIS will consider all comments
received on or before that date in
developing any final rule. Comments
received after that date will be
considered if possible, but their
consideration cannot be assured. BIS
will not accept public comments
accompanied by a request that a part or
all of the material be treated
confidentially because of its business
proprietary nature or for any other
reason. BIS will return such comments
and materials to the persons submitting
the comments and will not consider
them in the development of the final
rule. All public comments on this
proposed rule must be in writing
(including fax or e-mail) and will be a
matter of public record, available for
public inspection and copying. The
Office of Administration, Bureau of
Industry and Security, U.S. Department
of Commerce, displays these public
comments on BIS’s Freedom of
Information Act (FOIA) Web site at
https://www.bis.doc.gov/foia. This office
does not maintain a separate public
inspection facility. If you have technical
difficulties accessing this Web site,
please call BIS’s Office of
Administration at (202) 482–0637 for
assistance.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
For the reasons set forth in the
preamble, part 744 of the Export
Administration Regulations (15 CFR
parts 730–799) is amended as follows:
I
PART 744—[AMENDED]
1. The authority citation for part 744
continues to read as follows:
I
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Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Rules and Regulations
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
42 U.S.C. 2139a; Sec. 901–911, Pub. L. 106–
387; Sec. 221, Pub. L. 107–56; E.O. 12058, 43
FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994
Comp., p. 950; E.O. 12947, 60 FR 5079, 3
CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O.
13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August
6, 2004, 69 FR 48763 (August 10, 2004);
Notice of November 4, 2004, 69 FR 64637
(November 8, 2004).
2. In § 744.1, add two sentences
immediately following the eighth
sentence in paragraph (a)(1) and revise
the third sentence of paragraph (c) to
read as follows:
I
§ 744.1
General provisions.
(a)(1) Introduction. * * * Section
744.19 sets forth BIS’s licensing policy
for applications for exports or reexports
when a party to the transaction is an
entity that has been sanctioned pursuant
to any of three specified statutes that
require certain license applications to be
denied. Section 744.20 requires a
license, to the extent specified in
Supplement No. 4 to this part, for
exports and reexports of items subject to
the EAR destined to certain sanctioned
entities listed in Supplement No. 4 to
this part. * * *
*
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*
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(c) * * * No License Exceptions are
available for exports and reexports to
listed entities of specified items, except
License Exceptions for items listed in
§ 740.2(a)(5) of the EAR destined to
listed Indian or Pakistani entities to
ensure the safety of civil aviation and
safe operation of commercial passenger
aircraft, and in the case of entities added
to the Entity List pursuant to § 744.20,
to the extent specified on the Entity List.
I 3. In part 744, add § 744.19 to read as
follows:
10867
§ 744.19 Licensing policy regarding
persons sanctioned pursuant to specified
statutes.
I
Notwithstanding any other licensing
policy elsewhere in the EAR, BIS will
deny any export or reexport license
application if the applicant, other party
authorized to receive a license,
purchaser, intermediate consignee,
ultimate consignee, or end-user is
subject to one or more of the sanctions
described in paragraphs (a), (b), and (c)
of this section and will deny any export
or reexport license application for an
item listed on the Commerce Control
List with a reason for control of MT if
such party is subject to a sanction
described in paragraph (d) of this
section.
(a) A sanction issued pursuant to the
Iran-Iraq Arms Nonproliferation Act of
1992 (Public Law 102–484) that
prohibits the issuance of any license to
or by the sanctioned entity.
(b) A sanction issued pursuant to the
Iran Nonproliferation Act of 2000
(Public Law 106–178) that prohibits the
granting of a license for the transfer to
foreign entities of items, the export of
which is controlled under the Export
Administration Act of 1979 or the
Export Administration Regulations.
(c) A sanction issued pursuant to
section 11B(b)(1)(B)(i) of the Export
Administration Act of 1979, as
amended, and as carried out by
Executive Order 13222 of August 17,
2001, that prohibits the issuance of new
licenses for exports to the sanctioned
entity of items controlled pursuant to
the Export Administration Act of 1979.
(d) A sanction issued pursuant to
section 11B(b)(1)(B)(ii) of the Export
Administration Act of 1979, as amended
(Missile Technology Control Act of
1990), and as carried out by an
Executive Order 13222 of August 17,
2001, that prohibits the issuance of new
licenses for exports to the sanctioned
entity of MTCR Annex equipment or
technology controlled pursuant to the
Export Administration Act of 1979.
§ 744.20 License requirements that apply
to certain sanctioned entities.
4. In part 744, add § 744.20 to read as
follows:
BIS may impose, as foreign policy
controls, export and reexport license
requirements and set licensing policy
with respect to certain entities that have
been sanctioned by the State
Department. Such license requirements
and policy are in addition to those
imposed elsewhere in the EAR. License
requirements and licensing policy may
be imposed pursuant to this section
even when the sanction and the legal
authority under which the State
Department imposed the sanction do
not require or authorize the imposition
of any license requirement or licensing
policy. License requirements and
licensing policy will be imposed
pursuant to this section by adding an
entity to the Entity List in accordance
with paragraphs (a), (b), and (c) of this
section.
(a) General requirement. Certain
entities that have been sanctioned by
the State Department are listed in
Supplement No. 4 to this part (the
Entity List) with a reference to this
section. A license is required, to the
extent specified on the Entity List, to
export or reexport any item to such
entities.
(b) License exceptions. No license
exception may be used to export or
reexport to such entities unless
specifically authorized on the Entity
List.
(c) Licensing policy. Applications to
export or reexport to such entities will
be reviewed according to the licensing
policy set forth on the Entity List.
5. In Supplement No. 4 to part 744 add
a new entry for the Tula Instrument
Design Bureau under Russia,
immediately following the entry for
Moscow Aviation Institute as follows:
I
SUPPLEMENT NO. 4 TO PART 744.—ENTITY LIST
Country
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License requirement
License review policy
*
*
Tula Instrument Design
Bureau (all locations, including at Tula 300001,
Russia) (§ 744.20 of the
EAR).
*
Entity
*
All items subject to the
EAR having a classification other than EAR99;
no License Exceptions
available.
*
*
Presumption of Denial ......
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Federal Register citation
*
[F. Reg. Citation], 03/07/
05.
10868
Federal Register / Vol. 70, No. 43 / Monday, March 7, 2005 / Rules and Regulations
Dated: March 2, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 05–4325 Filed 3–4–05; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF HOMELAND
SECURITY
Bureau of Customs and Border
Protection
DEPARTMENT OF THE TREASURY
19 CFR Parts 10, 24, 162, 163, 178 and
191
[CBP Dec. 05–07]
RIN 1505–AB47
United States-Chile Free Trade
Agreement
U.S. Customs and Border
Protection; Department of Homeland
Security; Department of the Treasury.
ACTION: Interim regulations; solicitation
of comments.
AGENCY:
SUMMARY: This document amends the
Customs and Border Protection (‘‘CBP’’)
Regulations on an interim basis to
implement the preferential tariff
treatment and other customs-related
provisions of the United States-Chile
Free Trade Agreement entered into by
the United States and the Republic of
Chile.
Interim rule effective March 7,
2005; comments must be received by
June 6, 2005.
ADDRESSES: You may submit comments,
identified by the Regulatory Information
Number (‘‘RIN’’) and/or by the title
‘‘United States-Chile Free Trade
Agreement,’’ by one of the following
methods:
• EPA Federal Partner EDOCKET
Web Site: https://www.epa.gov/
feddocket. Follow instructions for
submitting comments on the Web site.
The Department of Homeland Security
(‘‘DHS’’), including CBP, has joined the
Environmental Protection Agency
(‘‘EPA’’) online public docket and
comment system on its Partner
Electronic Docket System (‘‘Partner
EDOCKET’’). As an agency of the DHS,
CBP will use the EPA Federal Partner
EDOCKET system.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail, hand delivery or courier:
paper, disk or CD–ROM submissions
may be mailed or delivered to the
DATES:
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Regulations Branch, Office of
Regulations and Rulings, Bureau of
Customs and Border Protection, 1300
Pennsylvania Avenue, NW. (Mint
Annex), Washington, DC 20229.
Instructions: All submissions received
must include the agency name and
docket number (if available) or RIN
number for this rulemaking. All
comments received will be posted
without change to https://www.epa.gov/
feddocket, including any personal
information provided.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.epa.gov/feddocket. You may also
access the Federal eRulemaking Portal
at https://www.regulations.gov.
Comments may be inspected at the
Regulations Branch, Office of
Regulations and Rulings, Bureau of
Customs and Border Protection, 799 9th
Street, NW., (5th Floor), Washington,
DC during regular business hours.
FOR FURTHER INFORMATION CONTACT:
Textile Operational Aspects: Robert
Abels, Office of Field Operations, (202)
344–1959.
Other Operational Aspects: Lori
Whitehurst, Office of Field Operations,
(202) 344–2722.
Audit Aspects: Mark Hanson, Office
of Regulatory Audit, (202) 344–2877.
Legal Aspects: Edward Leigh, Office
of Regulations and Rulings, (202) 572–
8827.
SUPPLEMENTARY INFORMATION:
Background
On June 6, 2003, the United States
and the Republic of Chile (the ‘‘Parties’’)
entered into an agreement, the U.S.Chile Free Trade Agreement (‘‘USCFTA’’). The stated objectives of the USCFTA are to: Encourage expansion and
diversification of trade between the
Parties; eliminate barriers to trade in,
and facilitate the cross-border
movement of, goods and services
between the territories of the Parties;
promote conditions of fair competition
in the free trade area; substantially
increase investment opportunities in the
territories of the Parties; provide
adequate and effective protection and
enforcement of intellectual property
rights in each Party’s territory; create
effective procedures for the
implementation and application of the
US-CFTA, for its joint administration
and for the resolution of disputes; and
establish a framework for further
bilateral and multilateral cooperation to
expand and enhance the benefits of the
US-CFTA.
The provisions of the US-CFTA were
adopted by the United States with the
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enactment of the United States-Chile
Free Trade Agreement Implementation
Act (the ‘‘Act’’), Pub. L. 108–77, 117
Stat. 909 (19 U.S.C. 3805 note)(2003).
Customs and Border Protection (CBP)
has the responsibility to administer the
provisions of the US-CFTA and the Act
which relate to the importation of goods
into the United States from Chile. Those
customs-related US-CFTA provisions
which require implementation through
regulation include certain tariff and
non-tariff provisions within Chapter
Three (National Treatment and Market
Access for Goods) and the provisions of
Chapter Four (Rules of Origin and
Origin Procedures) and Chapter Five
(Customs Administration).
The tariff-related provisions within
US–CFTA Chapter Three which require
regulatory action by CBP are Article 3.7
(Temporary Admission of Goods),
Article 3.8 (Drawback and Duty Deferral
Programs), Article 3.9 (Goods ReEntered after Repair or Alteration),
Article 3.10 (Duty-Free Entry of
Commercial Samples of Negligible
Value and Printed Advertising
Materials) and Article 3.20 (Rules of
Origin and Related Matters).
Chapter Four of the US-CFTA sets
forth the rules for determining whether
an imported good qualifies as an
originating good of the United States or
Chile (US-CFTA country) and, as such,
is therefore eligible for preferential tariff
(duty-free or reduced duty) treatment as
provided for under Article 4.1 and
Annex 4.1 of the US-CFTA. Under
Article 4.1 within that Chapter,
originating goods may be grouped in
three broad categories: (1) Goods which
are wholly obtained or produced
entirely in one or both of the Parties; (2)
goods which are produced entirely in
those countries and which satisfy the
specific rules of origin in US-CFTA
Annex 4.1 (change in tariff classification
requirement and/or regional value
content requirement); and (3) goods
which are produced entirely in one or
both of the Parties exclusively from
materials that originate in those
countries. Article 4.2 sets forth the
methods for calculating the regional
value content of a good. Article 4.3 sets
forth the rules for determining the value
of materials for purposes of calculating
the regional value content of a good and
applying the de minimis rule. Article
4.4 sets forth the rules for determining
whether accessories, spare parts or tools
delivered with a good qualify as
material used in the production of such
good. Article 4.6 provides for
accumulation of production by two or
more producers. Article 4.7 provides a
de minimis criterion. The remaining
Articles within Section A of Chapter
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]]>Agencies
[Federal Register Volume 70, Number 43 (Monday, March 7, 2005)]
[Rules and Regulations]
[Pages 10865-10868]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4325]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 041222360-4360-01]
RIN 0694-AD24
Licensing Policy for Entities Sanctioned Under Specified
Statutes; License Requirement for Certain Sanctioned Entities; and
Imposition of License Requirement for Tula Instrument Design Bureau
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule states BIS's licensing policy regarding transactions
involving entities sanctioned by the State Department under three
specified statutes, imposes a new license requirement for certain
entities sanctioned by the State Department, and identifies one
specific entity subject to this new license requirement, Tula
Instrument Design Bureau of Russia.
DATES: This rule is effective March 7, 2005. Comments must be received
by May 6, 2005.
ADDRESSES: Comments may be submitted by e-mail to rpd2@bis.doc.gov, by
fax at (202) 482-3355, or on paper to Regulatory Policy Division,
Office of Exporter Services, Bureau of Industry and Security, Room
H2705, U.S. Department of Commerce, 14th Street and Pennsylvania
Avenue, NW., Washington, DC 20230. Refer to Regulatory Identification
Number (RIN) 0694-AD24 in all comments. Comments on the information
collection should also be sent to David Rostker, Office of Management
and Budget Desk Officer, by e-mail at david_rostker@omb.eop.gov, or by
fax to (202) 395-7285. Refer to Regulatory Identification Number (RIN)
0694-AD24 in all comments.
FOR FURTHER INFORMATION CONTACT: William Arvin, Regulatory Policy
Division, Office of Exporter Services at warvin@bis.doc.gov or (202)
482-2440.
SUPPLEMENTARY INFORMATION: Several statutes authorize or require the
United States Government to impose export sanctions on entities if such
entities have engaged in activities that contribute to the
proliferation of weapons of mass destruction or are otherwise contrary
to the foreign policy interests of the United States. This rule sets
forth BIS's licensing policy for entities subject to sanctions imposed
by the State Department under the Iran-Iraq Arms Nonproliferation Act
of 1992 (Pub. L. 102-484), the Iran Nonproliferation Act of 2000 (Pub.
L. 107-178) and section 11B(b)(1) of the Export Administration Act of
1979 (also known as the Missile Technology Control Act of 1990). This
rule also imposes a new license requirement for certain entities
sanctioned by the State Department, and identifies one specific entity,
Tula Instrument Design Bureau of Russia, subject to this new license
requirement.
Licensing Policy for Transactions Involving Sanctioned Entities
This rule amends the Export Administration Regulations (EAR) by
adding new Sec. 744.19 to set forth explicitly BIS's licensing policy
regarding entities sanctioned by the State Department under the
authority of three statutes. Specifically, new Sec. 744.19 provides
that BIS's policy is to deny any export or reexport license application
if the applicant, other party authorized to receive the license,
purchaser, intermediate consignee, ultimate consignee, or end-user is
subject to: (1) A sanction issued pursuant to the Iran-Iraq Arms
Nonproliferation Act of 1992 (Pub. L. 102-484) that prohibits the
issuance of any license for any export by or to the sanctioned person
or, (2) a sanction issued pursuant to the Iran Nonproliferation Act of
2000 (Pub. L. 107-178) that prohibits the granting of a license for the
transfer to foreign persons of items, the export of which is controlled
under the Export Administration Regulations, or (3) a sanction issued
pursuant to section 11B(b)(1)(B)(ii) of the Export Administration Act
of 1979, as amended (also known as the Missile Technology Control Act
of 1990), that prohibits the issuance of new licenses for exports to
the sanctioned entity of items controlled pursuant to the Export
Administration Act of 1979. In addition, Sec. 744.19 sets forth BIS's
policy to deny any export or reexport application for items listed on
the Commerce Control List with missile technology (MT) listed as a
reason for control if any entity subject to a sanction issued pursuant
to section 11B(b)(1)(B)(i) of the Export Administration Act of 1979, as
amended, is a party to the transaction. Section 11B(b)(1)(B)(i)
prohibits the issuance of new individual licenses for exports to the
sanctioned entity of MTCR annex equipment or technology controlled
pursuant to the Export Administration Act of 1979.
The State Department publishes notices of the imposition of
sanctions under these three statutes in the Federal Register. Because
they do not involve the imposition of any new license requirements, the
sanctions do not require amendment of the EAR and, prior to publication
of this rule, were not incorporated into or otherwise referenced in the
EAR. The sanctions imposed under the three statutes, however, prescribe
the licensing policy that BIS must apply to applications that involve
the transfer of certain items to, and in the case of the Iran-Iraq Arms
Nonproliferation Act of 1992 by, the sanctioned entity. New Sec.
744.19 provides a reference to these sanctions in the EAR and also sets
forth BIS's policy that a license application is subject to a general
policy of denial if a sanctioned entity is listed as any party to the
transaction, including the purchaser or intermediate consignee, on the
license application.
New License Requirement
This rule adds new Sec. 744.20 to the EAR to provide that BIS may
impose, as new foreign policy controls, license requirements on exports
and reexports of items subject to the EAR to entities sanctioned by the
State Department. Such license requirements are in addition to those
imposed by other provisions of the EAR. Decisions to impose such
license requirements will be made on a case-by-case basis. In
determining whether to impose license requirements pursuant to Sec.
744.20, BIS will consider the nature of the action that led to the
State Department sanction and whether, because of that action, such
sanctioned parties would not be reliable parties to export or reexport
transactions subject to the EAR.
[[Page 10866]]
License requirements imposed pursuant to Sec. 744.20 are foreign
policy controls imposed pursuant to the provisions of Sec. 6 of the
Export Administration Act of 1979. License requirements pursuant to
Sec. 744.20 will be imposed by adding the sanctioned entity to the
Entity List (Supplement No. 4 to part 744). The Entity List entry will
also refer to Sec. 744.20, state the license requirements that apply
to the entity, what license exceptions, if any, are available, and the
licensing policy that applies to the entity.
Addition of an Entity to the Entity List Pursuant to New Sec. 744.20
This rule imposes a license requirement under new Sec. 744.20 for
exports or reexports to Tula Instrument Design Bureau (all locations
including at Tula 300001, Russia) of the government of the Russian
Federation (Tula) for all items subject to the EAR having a
classification other than EAR99, prohibits use of any License Exception
for such exports or reexports, and imposes a general policy of denial
for all license applications to export or reexport to Tula. The rule
adds Tula to the Entity List (Supplement No. 4 to part 744 of the EAR).
On April 21, 1999, the State Department found, inter alia, that
Tula was a Government of Russia entity that was specifically involved
in the transfer of lethal military equipment to a country determined by
the Secretary of State to be a state sponsor of terrorism. Because of
that finding, the State Department determined that ``the policy of the
United States Government [is] to deny U.S. Government Assistance to
[Tula]'' (see 64 FR 23148, April 29, 1999). BIS is imposing this
license requirement, prohibition on use of license exceptions, and
policy of denial, to further the foreign policy interest of the United
States in deterring the transfer of lethal military equipment to state
sponsors of terrorism.
This action is a new foreign policy control imposed pursuant to the
requirements of Sec. 6 of the Export Administration Act and requires a
report to Congress. The report was delivered to Congress on February
25, 2005.
Although the Export Administration Act of 1979 (EAA), as amended,
expired on August 20, 2001, Executive Order 13222 of August 17, 2001 (3
CFR, 2001 Comp., p. 783 (2002)) as extended by the Notice of August 6,
2004, 69 FR 48763 (August 10, 2004), continues the EAR in effect under
the International Emergency Economic Powers Act (IEEPA).
Savings Clause
Exports and reexports that did not require a license or that were
eligible for a License Exception prior to publication of this rule and
for which this rule imposes a new license requirement or removes that
License Exception availability may be made without a license or under
that License Exception if the items being exported or reexported were
on dock for loading, on lighter, laden aboard an exporting carrier, or
en route aboard a carrier to a port of export pursuant to actual orders
for export or reexport on or before March 22, 2005, and exported or
reexported on or before April 6, 2005. Any such exports or reexports
not meeting those deadlines require a license in accordance with this
rule.
Rulemaking Requirements
1. This rule has been determined not to be significant for purposes
of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to nor 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
collections previously approved by the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 58 minutes to prepare and submit form BIS-748.
Miscellaneous and recordkeeping activities account for 12 minutes per
submission. Burden hours associated with the Paperwork Reduction Act
and Office and Management and Budget control number 0694-0088 are not
impacted by this regulation. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to David Rostker, OMB
Desk Officer, by e-mail at david_rostker@omb.eop.gov or by fax to
(202) 395-7285; and to the Regulatory Policy Division, Bureau of
Industry and Security, Department of Commerce, P.O. Box 273,
Washington, DC 20044.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military or foreign affairs function
of the United States (see 5 U.S.C. 553(a)(1)). Further, 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 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. However, BIS is issuing this rule in
interim final form with a request for comments.
Request for Comments
BIS is seeking public comments on this interim final rule. The
period for submission of comments will close May 6, 2005. BIS will
consider all comments received on or before that date in developing any
final rule. Comments received after that date will be considered if
possible, but their consideration cannot be assured. BIS will not
accept public comments accompanied by a request that a part or all of
the material be treated confidentially because of its business
proprietary nature or for any other reason. BIS will return such
comments and materials to the persons submitting the comments and will
not consider them in the development of the final rule. All public
comments on this proposed rule must be in writing (including fax or e-
mail) and will be a matter of public record, available for public
inspection and copying. The Office of Administration, Bureau of
Industry and Security, U.S. Department of Commerce, displays these
public comments on BIS's Freedom of Information Act (FOIA) Web site at
https://www.bis.doc.gov/foia. This office does not maintain a separate
public inspection facility. If you have technical difficulties
accessing this Web site, please call BIS's Office of Administration at
(202) 482-0637 for assistance.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
0
For the reasons set forth in the preamble, part 744 of the Export
Administration Regulations (15 CFR parts 730-799) is amended as
follows:
PART 744--[AMENDED]
0
1. The authority citation for part 744 continues to read as follows:
[[Page 10867]]
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; Sec. 901-911, Pub. L. 106-
387; Sec. 221, Pub. L. 107-56; E.O. 12058, 43 FR 20947, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60
FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224,
66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 6, 2004, 69
FR 48763 (August 10, 2004); Notice of November 4, 2004, 69 FR 64637
(November 8, 2004).
0
2. In Sec. 744.1, add two sentences immediately following the eighth
sentence in paragraph (a)(1) and revise the third sentence of paragraph
(c) to read as follows:
Sec. 744.1 General provisions.
(a)(1) Introduction. * * * Section 744.19 sets forth BIS's
licensing policy for applications for exports or reexports when a party
to the transaction is an entity that has been sanctioned pursuant to
any of three specified statutes that require certain license
applications to be denied. Section 744.20 requires a license, to the
extent specified in Supplement No. 4 to this part, for exports and
reexports of items subject to the EAR destined to certain sanctioned
entities listed in Supplement No. 4 to this part. * * *
* * * * *
(c) * * * No License Exceptions are available for exports and
reexports to listed entities of specified items, except License
Exceptions for items listed in Sec. 740.2(a)(5) of the EAR destined to
listed Indian or Pakistani entities to ensure the safety of civil
aviation and safe operation of commercial passenger aircraft, and in
the case of entities added to the Entity List pursuant to Sec. 744.20,
to the extent specified on the Entity List.
0
3. In part 744, add Sec. 744.19 to read as follows:
Sec. 744.19 Licensing policy regarding persons sanctioned pursuant to
specified statutes.
Notwithstanding any other licensing policy elsewhere in the EAR,
BIS will deny any export or reexport license application if the
applicant, other party authorized to receive a license, purchaser,
intermediate consignee, ultimate consignee, or end-user is subject to
one or more of the sanctions described in paragraphs (a), (b), and (c)
of this section and will deny any export or reexport license
application for an item listed on the Commerce Control List with a
reason for control of MT if such party is subject to a sanction
described in paragraph (d) of this section.
(a) A sanction issued pursuant to the Iran-Iraq Arms
Nonproliferation Act of 1992 (Public Law 102-484) that prohibits the
issuance of any license to or by the sanctioned entity.
(b) A sanction issued pursuant to the Iran Nonproliferation Act of
2000 (Public Law 106-178) that prohibits the granting of a license for
the transfer to foreign entities of items, the export of which is
controlled under the Export Administration Act of 1979 or the Export
Administration Regulations.
(c) A sanction issued pursuant to section 11B(b)(1)(B)(i) of the
Export Administration Act of 1979, as amended, and as carried out by
Executive Order 13222 of August 17, 2001, that prohibits the issuance
of new licenses for exports to the sanctioned entity of items
controlled pursuant to the Export Administration Act of 1979.
(d) A sanction issued pursuant to section 11B(b)(1)(B)(ii) of the
Export Administration Act of 1979, as amended (Missile Technology
Control Act of 1990), and as carried out by an Executive Order 13222 of
August 17, 2001, that prohibits the issuance of new licenses for
exports to the sanctioned entity of MTCR Annex equipment or technology
controlled pursuant to the Export Administration Act of 1979.
0
4. In part 744, add Sec. 744.20 to read as follows:
Sec. 744.20 License requirements that apply to certain sanctioned
entities.
BIS may impose, as foreign policy controls, export and reexport
license requirements and set licensing policy with respect to certain
entities that have been sanctioned by the State Department. Such
license requirements and policy are in addition to those imposed
elsewhere in the EAR. License requirements and licensing policy may be
imposed pursuant to this section even when the sanction and the legal
authority under which the State Department imposed the sanction do not
require or authorize the imposition of any license requirement or
licensing policy. License requirements and licensing policy will be
imposed pursuant to this section by adding an entity to the Entity List
in accordance with paragraphs (a), (b), and (c) of this section.
(a) General requirement. Certain entities that have been sanctioned
by the State Department are listed in Supplement No. 4 to this part
(the Entity List) with a reference to this section. A license is
required, to the extent specified on the Entity List, to export or
reexport any item to such entities.
(b) License exceptions. No license exception may be used to export
or reexport to such entities unless specifically authorized on the
Entity List.
(c) Licensing policy. Applications to export or reexport to such
entities will be reviewed according to the licensing policy set forth
on the Entity List.
0
5. In Supplement No. 4 to part 744 add a new entry for the Tula
Instrument Design Bureau under Russia, immediately following the entry
for Moscow Aviation Institute as follows:
Supplement No. 4 to Part 744.--Entity List
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
Tula Instrument All items subject Presumption of [F. Reg.
Design Bureau to the EAR having Denial. Citation], 03/07/
(all locations, a classification 05.
including at Tula other than EAR99;
300001, Russia) no License
(Sec. 744.20 of Exceptions
the EAR). available.
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[[Page 10868]]
Dated: March 2, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 05-4325 Filed 3-4-05; 8:45 am]
BILLING CODE 3510-33-P
