Expanded Authorization for Temporary Exports and Reexports of Tools of Trade to Sudan, 10668-10670 [E8-3808]

Agencies

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

[Federal Register Volume 73, Number 40 (Thursday, February 28, 2008)]
[Rules and Regulations]
[Pages 10668-10670]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-3808]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 740

[Docket No. 071129776-7777-01]
RIN 0694-AE20


Expanded Authorization for Temporary Exports and Reexports of 
Tools of Trade to Sudan

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule increases the number of end-uses for which certain 
``tools of trade'' may be exported temporarily to Sudan under a license 
exception. It also makes more types of commodities eligible under the 
category ``tools of trade'' for purposes of this license exception and 
authorizes reexports under this provision to the same extent as exports 
are authorized.

DATES: Effective Date: This rule is effective February 28, 2008.

ADDRESSES: Comments may be submitted by e-mail to the Federal 
eRulemaking site www.regulations.gov, by e-mail directly to BIS at 
publiccomments@bis.doc.gov; by fax to (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-AE20 in all comments. 
Comments on the information collection contained in this rule should 
also be sent to David Rostker, Office of Management and Budget Desk 
Officer; by e-mail to david_rostker@omb.eop.gov; or by fax to (202) 
395-7285. Refer to RIN 0694-AE20 in all comments.

FOR FURTHER INFORMATION CONTACT: Eric Longnecker, Office of 
Nonproliferation and Treaty Compliance, tel. (202) 482-5537, e-mail 
elongnec@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    Section 740.9 of the Export Administration Regulations provides 
inter alia an exception to export and reexport license requirements for 
certain temporary exports and reexports. One category of such exports 
and reexports is entitled ``tools of trade.'' In February 2005, BIS 
revised Sec.  740.9 to allow temporary exports, but not reexports, to 
Sudan of certain computers, communications devices, and global 
satellite positioning devices by employees and staff of certain 
organizations engaged in humanitarian work in Sudan (70 FR 8257, 
February 18, 2005 and 70 FR 9703, February 28, 2005). The experiences 
of the organizations using this provision, the increase in computer 
performance levels since that rule was published, the implementation of 
the Comprehensive Peace Agreement and the Darfur Peace Agreement, the 
passage of the Darfur Peace and Accountability Act, the issuance of 
Executive Order 13412, the implementation of that Act and that 
Executive Order by the Department of the Treasury, and the changing 
nature of the assistance being provided in Sudan by non-governmental 
organizations have led BIS to conclude that changes to this provision 
are warranted.

Specific Changes Made by This Rule

    This rule modifies Sec.  740.9(a)(2)(i)(B) of the EAR, which sets 
forth the provisions that apply specifically to Sudan for temporary 
exports and reexports of tools of trade under License Exception TMP. 
This rule breaks that paragraph into further subparagraphs to make the 
provisions easier to follow and cite.
    This rule adds reexports to the types of transactions authorized by 
Sec.  740.9(a)(2)(i)(B).
    This rule adds certain support activities to relieve human 
suffering or to implement the Darfur Peace Agreement or the 
Comprehensive Peace Agreement by an organization authorized by the 
Department of the Treasury, and certain support activities to relieve 
human suffering in Sudan in areas that are exempt from the Sudanese 
Sanctions Regulations by virtue of the Darfur Peace and Accountability 
Act and Executive Order 13412, to the purposes for which Sec.  
740.9(a)(2)(1)(B) authorizes sending tools of trade under License 
Exception TMP to Sudan.
    This rule allows exports and reexports to an eligible user in Sudan 
by a method reasonably calculated to assure delivery

[[Page 10669]]

to the permissible user. Prior to publication of this rule, Sec.  
740.9(a)(2)(i)(B) required that shipments accompany a traveler to 
Sudan.
    This rule raises the adjusted peak performance (APP) of computers 
controlled under Export Control Classification Number (ECCN) 4A994.b 
eligible under Sec.  740.9(a)(2)(1)(B) from 0.0015 weighted teraFLOPS 
(WT) to 0.008 WT.
    This rule makes disk drives controlled under ECCN 4A991.d, input/
output control units controlled under ECCN 4A994.e (other than 
industrial controllers for chemical processing), graphics accelerators 
controlled under 4A994.g and color displays and monitors controlled 
under 4A994.h eligible for export and reexport under Sec.  
740.9(a)(2)(i)(B).
    This rule authorizes export or reexport of software to be used 
solely for servicing or in-kind replacement of software legally 
exported or reexported pursuant to Sec.  740.9(a)(2)(i)(B). Prior to 
this rule all such software had to be loaded on to the hardware prior 
to sending the hardware to Sudan.

Reasons for the Changes Made by This Rule

    BIS is making these changes for several reasons. The increase in 
the performance level of the computers authorized by this rule is 
needed because few, if any, computers with an APP of 0.0015 WT level 
are easily available at retail outlets. The additional commodities are 
peripheral equipment to computers that are used for routine business 
tasks such as word processing, spreadsheets and Web browsing. Allowing 
reexports of such items and removing the requirements that the items 
accompany a traveler to Sudan and that software be loaded prior to 
arrival of the hardware in Sudan will allow persons working for non-
governmental organizations engaged in humanitarian or development 
efforts in Sudan to procure items subject to the EAR outside the United 
States and send them to Sudan more easily. Since 2005, when BIS last 
amended Sec.  740.9(a)(2)(1)(B), the nature of the activities of U.S.-
supported NGOs in Sudan has evolved from humanitarian assistance and 
efforts to relieve human suffering to include not only those goals but 
some development assistance as well. This rule allows support of that 
broader scope of activities consistent with the Darfur Peace Agreement, 
the Comprehensive Peace Agreement, the Darfur Peace and Accountability 
Act and Executive Order 13412.

Rulemaking Requirements

    1. This rule has been determined to be not 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 contains 
a collection 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. BIS believes that this rule will have no material effect on 
the burden imposed by that collection.
    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.

List of Subjects in 15 CFR Part 740

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

0
For the reasons set forth in the preamble, the Export Administration 
Regulations (15 CFR 730-799) are amended as follows:

PART 740--AMENDED

    1. The authority citation for part 740 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; 
Notice of August 3, 2006, 71 FR 44551 (August 7, 2006); Notice of 
August 15, 2007, 72 FR 46137 (August 16, 2007).

0
2. Revise Sec.  740.9(a)(2)(i)(B) to read as follows:


Sec.  740.9  Temporary imports, exports, and reexports (TMP).

* * * * *
    (a) * * *
    (B) Sudan. Exports or reexports of tools of trade may be made to 
Sudan as authorized by this paragraph.
    (1) Permissible users of this provision. A non-governmental 
organization or an individual staff member, employee or contractor of 
such organization traveling to Sudan at the direction or with the 
knowledge of such organization may export or reexport under this 
paragraph.
    (2) Authorized purposes. Any tools of trade exported or reexported 
under this paragraph must be used to support activities to implement 
the Darfur Peace Agreement or the Comprehensive Peace Agreement, to 
provide humanitarian or development assistance in Sudan to support 
activities to relieve human suffering in Sudan by an organization 
registered by the Department of the Treasury, Office of Foreign Assets 
Control (OFAC) pursuant to 31 CFR 538.521, to support the actions in 
Sudan for humanitarian or development purposes by an organization 
authorized by OFAC to take such actions that would otherwise would be 
prohibited by the Sudanese Sanctions Regulations (31 CFR part 538), or 
to support the activities to relieve human suffering in Sudan in areas 
that are exempt from the Sudanese Sanctions Regulations by virtue of 
the Darfur Peace and Accountability Act and Executive Order 13412.
    (3) Method of export and maintenance of control. The tools of trade 
must accompany (either hand carried or as checked baggage) a traveler 
who is a permissible user of this provision or be shipped or 
transmitted to an eligible user of this provision by a method 
reasonably calculated to assure delivery to the permissible user of 
this provision. The permissible user of this provision must maintain 
``effective control'' (See Sec.  772.1 of the EAR) of the tools of 
trade while in Sudan.
    (4) The only tools of trade that may be exported to Sudan under 
this paragraph (a)(2)(i)(B) are:
    (i) Commodities controlled under ECCNs 4A994.b (not exceeding an 
adjusted peak performance of 0.008 weighted teraFLOPS), 4A994.d, 
4A994.e (other than industrial controllers for chemical processing), 
4A994.g and 4A994.h and ``software'' controlled

[[Page 10670]]

under ECCNs 4D994 or 5D992 to be used on such commodities. Software 
must be loaded onto such commodities prior to export or reexport or be 
exported or reexported solely for servicing or in-kind replacement of 
legally exported or reexported software. All such software must remain 
loaded on such commodities while in Sudan;
    (ii) Telecommunications equipment controlled under ECCN 5A991 and 
``software'' controlled under ECCN 5D992 to be used in the operation of 
such equipment. Software must be loaded onto such equipment prior to 
export or be exported or reexported solely for servicing or in-kind 
replacement of legally exported or reexported software. All such 
software must remain loaded on such equipment while in Sudan;
    (iii) Global positioning systems (GPS) or similar satellite 
receivers controlled under ECCN 7A994; and
    (iv) Parts and components that are controlled under ECCN 5A992, 
that are installed with, or contained in, commodities in paragraphs 
(a)(2)(i)(B)(4) (i) and (ii) of this section and that remain installed 
with or contained in such commodities while in Sudan.
* * * * *

    Dated: February 21, 2008.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E8-3808 Filed 2-27-08; 8:45 am]
BILLING CODE 3510-33-P