Exports and Reexports to the Principality of Liechtenstein, 70337-70340 [2011-29357]
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Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
detail the scope of the Agency’s
authority.
We are issuing this rulemaking under
the authority described in ‘‘Subtitle VII,
Part A, Subpart III, Section 44701:
General requirements.’’ Under that
section, Congress charges the FAA with
promoting safe flight of civil aircraft in
air commerce by prescribing regulations
for practices, methods, and procedures
the Administrator finds necessary for
safety in air commerce. This regulation
is within the scope of that authority
because it addresses an unsafe condition
that is likely to exist or develop on
products identified in this rulemaking
action.
Regulatory Findings
We determined that this AD will not
have federalism implications under
Executive Order 13132. This AD will
not have a substantial direct effect on
the States, on the relationship between
the national government and the States,
or on the distribution of power and
responsibilities among the various
levels of government.
For the reasons discussed above, I
certify this AD:
1. Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
2. Is not a ‘‘significant rule’’ under the
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
3. Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
We prepared a regulatory evaluation
of the estimated costs to comply with
this AD and placed it in the AD docket.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
Adoption of the Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA amends 14 CFR part 39 as
follows:
1. The authority citation for part 39
continues to read as follows:
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Authority: 49 U.S.C. 106(g), 40113, 44701.
[Amended]
2. The FAA amends § 39.13 by adding
the following new AD:
■
2011–23–12 Rolls-Royce plc: Amendment
39–16863; Docket No. FAA–2011–1109;
Directorate Identifier 2011–NE–33–AD.
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01803; telephone: (781) 238–7143; fax: (781)
238–7199; email: alan.strom@faa.gov, for
more information about this AD.
Affected ADs
(b) None.
Material Incorporated by Reference
(j) You must use Rolls-Royce plc Alert
Service Bulletin No. RB.211–73–AG054,
Revision 2, dated June 29, 2011, to do the
actions required by this AD, unless the AD
specifies otherwise.
(1) The Director of the Federal Register
approved the incorporation by reference of
this service information under 5 U.S.C.
552(a) and 1 CFR part 51.
(2) For service information identified in
this AD, contact Rolls-Royce plc, Corporate
Communications, P.O. Box 31, Derby,
England, DE248BJ; phone: 011–44–1332–
242424; fax: 011–44–1332–245418 or email
from https://www.rolls-royce.com/contact/
civil_team.jsp, or download the publication
from https://www.aeromanager.com.
(3) You may review copies at the FAA,
New England Region, 12 New England
Executive Park, Burlington, MA; or at the
National Archives and Records
Administration (NARA). For information on
the availability of this material at NARA, call
(202) 741–6030, or go to: https://
www.archives.gov/federal-register/cfr/ibrlocations.html. For information on the
availability of this material at the FAA, call
(781) 238–7125.
Applicability
(c) This AD applies to Rolls-Royce plc
RB211–524G2–19; –524G2–T–19; –524G3–
19; 524G3–T–19; 524H2–19; –524H2–T–19;
–524H–36; and –524H–T–36 turbofan
engines.
Reason
(d) This AD results from mandatory
continuing airworthiness information (MCAI)
issued by an aviation authority of another
country to identify and correct an unsafe
condition on an aviation product. The MCAI
describes the unsafe condition as:
Several instances of fan blade cracking have
been reported. The results of the subsequent
technical investigation concluded that the
cracking was caused by fan blade flutter at
certain engine settings during prolonged
ground running.
This condition, if not corrected, could affect
the integrity of the fan blades, leading to
cracking of multiple fan blades and could
possibly result in engine failure and release
of uncontained high energy debris.
We are issuing this AD to prevent fan blade
flutter, which could result in an uncontained
engine failure and damage to the airplane.
Actions and Compliance
(e) Unless already done, do the following
actions.
(1) Within 40 months after the effective
date of this AD, modify the engine by
installing a full-authority fuel controller
(FAFC) featuring software at Issue 17, in
accordance with Accomplishment
Instructions paragraphs 3.A. through 3.B. of
Rolls-Royce plc Alert Service Bulletin (ASB)
No. RB.211–73–AG054, Revision 2, dated
June 29, 2011.
(2) Engines which have been modified
before the effective date of this AD, in
accordance with previous revisions of ASB
No. RB.211–73–AG054 are compliant with
the requirement of paragraph (e)(1) of this
AD.
(3) From the effective date of this AD, do
not install an FAFC on an engine if the FAFC
incorporates software prior to Issue 17.
Alternative Methods of Compliance
(AMOCs)
(g) The Manager, Engine Certification
Office, FAA, has the authority to approve
AMOCs for this AD, if requested using the
procedures found in 14 CFR 39.19.
■
§ 39.13
Effective Date
(a) This airworthiness directive (AD)
becomes effective November 29, 2011.
FAA AD Differences
(f) None.
PART 39—AIRWORTHINESS
DIRECTIVES
70337
Related Information
(h) Refer to European Aviation Safety
Agency AD 2011–0175, dated September 8,
2011, for related information.
(i) Contact Alan Strom, Aerospace
Engineer, Engine Certification Office, FAA,
Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA
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Issued in Burlington, Massachusetts, on
November 2, 2011.
Peter A. White,
Manager, Engine and Propeller Directorate,
Aircraft Certification Service.
[FR Doc. 2011–29208 Filed 11–10–11; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 738, 740 and 748
[Docket No. 110818514–1531–01]
RIN 0694–AF33
Exports and Reexports to the
Principality of Liechtenstein
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
The Bureau of Industry and
Security (BIS) publishes this final rule
to amend certain requirements in the
Export Administration Regulations
(EAR) that apply to the Principality of
Liechtenstein (Liechtenstein). In this
final rule, BIS aligns license
requirements and licensing policy under
the EAR for Liechtenstein with those for
Switzerland. As a result, for purposes of
the EAR, Liechtenstein will be treated
the same as Switzerland.
By virtue of a Customs Union Treaty
with Switzerland, Liechtenstein has
SUMMARY:
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Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
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adopted the export controls
implemented under Swiss law,
including controls equivalent to those
prescribed under multilateral regimes,
and has authorized Switzerland to
administer and enforce export controls
within Liechtenstein’s territory. As a
result of this arrangement, Liechtenstein
and Switzerland serve as one territory
for customs and export purposes.
Having recently been made aware of the
full scope of this arrangement and its
consequences on export controls, BIS
has determined that it is appropriate to
codify the treatment of Liechtenstein
and Switzerland as one territory for
purposes of the EAR. This treatment of
Liechtenstein is consistent with the
effort of the United States to streamline
licensing requirements where export
controls prescribed by the multilateral
regimes are implemented.
DATES: This rule is effective November
14, 2011.
FOR FURTHER INFORMATION CONTACT:
Sheila Quarterman, Regulatory Policy
Division, Office of Exporter Services,
Bureau of Industry and Security, U.S.
Department of Commerce at (202) 482–
2440 or by email
Sheila.Quarterman@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
By virtue of a Customs Union Treaty
with Switzerland, Liechtenstein has
adopted the export controls
implemented under Swiss law, and has
authorized Switzerland to administer
and enforce export controls within
Liechtenstein’s territory. The Bureau of
Industry and Security (BIS) recognizes
that this arrangement results in the
implementation of export controls in
Liechtenstein that are equivalent to
those in Switzerland, and in accordance
with the multilateral export control
regimes. By virtue of the Customs Union
Treaty of 1923 between Switzerland and
Liechtenstein (Customs Union Treaty),1
Liechtenstein is a part of the ‘‘Swiss
customs territory’’ and Switzerland acts
on behalf of Liechtenstein regarding
issues of trade in goods. The Customs
Union Treaty empowers Switzerland to
conclude and incur undertakings that
apply automatically and directly to
Liechtenstein. As a result of this
arrangement, Swiss export control law
applies equally to exporters from
Switzerland and Liechtenstein. Further,
Switzerland is responsible for
administering export controls and
enforcing export controls in
1 Customs Union Treaty of 29 March 1923
between the Principality of Liechtenstein and
Switzerland, 21 League of Nations Treaty Series 233
(1924).
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Liechtenstein. Consequently, in this
final rule, BIS aligns its treatment of
Liechtenstein with that of Switzerland,
resulting in the treatment of
Liechtenstein and Switzerland as one
territory for purposes of the Export
Administration Regulations (EAR).
Therefore, license requirements and
licensing policy under the EAR for
Liechtenstein are effectively the same as
those for Switzerland. This treatment of
Liechtenstein is consistent with the
effort of the United States to streamline
licensing requirements where export
controls prescribed by the multilateral
regimes are implemented.
Specific Amendments to the EAR That
Align Liechtenstein With Switzerland
for Purposes of Licensing Requirements
In this rule, BIS amends the EAR by
adding a sentence to paragraph (b)
(Countries) of Section 738.3 (Commerce
Country Chart Structure) that states that
Liechtenstein, which serves as one
territory with Switzerland for customs
and export purposes, will be accorded
the same licensing treatment as
Switzerland under the EAR.
In addition and consistent with the
purpose of this rule, BIS amends the
EAR by adding a footnote for
‘‘Liechtenstein’’ on the Commerce
Country Chart in Supplement No. 1 to
Part 738 that states, ‘‘Refer to
Switzerland for licensing requirements
for Liechtenstein under the EAR.’’; and
by removing the ‘‘X’’ in chemical and
biological weapons column 2, nuclear
nonproliferation column 1, national
security column 2, and regional stability
column 2. BIS also amends the EAR by
removing Liechtenstein from the group
of Computer Tier 1 Destinations in
paragraph (c)(1) of Section 740.7
(License Exception Computers (APP));
Country Group B in Supplement No. 1
to Part 740; the group of countries for
which an Import Certificate or End-User
Statement may be required in paragraph
(b)(2) of Section 748.9 (Support
Documents for License Applications);
and the Authorities Administering
Import Certificate/Delivery Verification
and End-User Statement Systems in
Foreign Countries in Supplement No. 4
to part 748. Finally, in this rule, BIS
removes and reserves paragraph (g),
which expressly permitted reexports
between Liechtenstein and Switzerland,
in License Exception Additional
Permissive Reexports (APR).
Since August 21, 2001, the Export
Administration Act (the Act) has been
in lapse and the President, through
Executive Order 13222 of August 17,
2001 (3 CFR, 2001 Comp., p. 783
(2002)), as extended most recently by
the Notice of August 12, 2011, 76 FR
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50661 (August 16, 2011), has continued
the EAR in effect under the
International Emergency Economic
Powers Act. BIS continues to carry out
the provisions of the Act, as appropriate
and to the extent permitted by law,
pursuant to Executive Order 13222.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. This rule
has been designated a ‘‘significant
regulatory action’’ although not
economically significant, under section
3(f) of Executive Order 12866.
Accordingly, the rule has been reviewed
by the Office of Management and
Budget (OMB).
2. Notwithstanding any other
provisions 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
OMB Control Number. This rule
involves two collections 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 43.8 minutes to prepare
and submit form BIS–748. The other
collection has been approved by OMB
under control number 0694–0106,
‘‘Reporting and Recordkeeping
Requirements under the Wassenaar
Arrangement,’’ and carries a burden
hour estimate of 21 minutes for a
manual or electronic submission. Total
burden hours associated with the PRA
and OMB control numbers 0694–0088
and 0694–0106 are not expected to
increase as a result of this rule.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. Pursuant to 5 U.S.C. 553(a)(1), the
provisions of the Administrative
Procedure Act 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
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Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
foreign affairs function of the United
States. (See 5 U.S.C. 553(a)(1)).
Immediate implementation of these
amendments furthers United States
policies and goals toward allies and
cooperating and like-minded countries
with regard to export controls and
reduces the burden on exporters in
relation to licensing obligations. This
rule will positively impact regional
stability by promoting greater
responsibility in the transfer of dual-use
goods, technologies, thus preventing
destabilizing effects. This action also
reconciles any inconsistencies in the
treatment of Liechtenstein in light of its
Treaty and export control arrangement
with Switzerland and therefore is
consistent with the effort of the United
States to streamline licensing
requirements where export controls
prescribed by the multilateral regimes
are implemented. Failure to
immediately implement this rule would
result in an unnecessary licensing
burden on businesses, especially small
businesses. Thus, in light of the United
States’ understanding of how export
controls are administered in
Liechtenstein, the United States seeks to
assist businesses and prevent confusion
by immediately removing licensing
requirements that are unnecessary in
light of the fact the international regime
requirements are otherwise being met.
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. Therefore,
this regulation is issued in final form. In
addition, the Department finds good
cause under 5 U.S.C. 553(d)(3) to waive
the 30-day delay in effectiveness for the
reasons provided above. Accordingly,
this regulation is made effective
immediately upon publication.
List of Subjects
15 CFR Part 738
Exports.
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 748
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, parts 738, 740 and 748
of the Export Administration
Regulations (15 CFR parts 730 through
774) are amended as follows:
PART 738—[AMENDED]
1. The authority citation for Part 738
continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 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; Notice of August 12, 2011, 76
FR 50661 (August 16, 2011).
2. Amend § 738.3 by revising
paragraph (b) to read as follows:
■
§ 738.3 Commerce Country Chart
structure.
*
*
*
*
*
(b) Countries. The first column of the
Country Chart lists countries in
alphabetical order. There are a number
of destinations that are not listed in the
Country Chart contained in Supplement
No. 1 to part 738. If your destination is
not listed on the Country Chart and
such destination is a territory,
possession, dependency or department
of a country included on the Country
Chart, the EAR accords your destination
the same licensing treatment as the
country of which it is a territory,
possession, dependency or department.
For example, if your destination is the
Cayman Islands, a dependent territory
of the United Kingdom, refer to the
United Kingdom on the Country Chart
for licensing requirements. In addition,
if your destination is Liechtenstein,
which serves as one territory with
Switzerland for purposes of the EAR,
refer to Switzerland on the Country
Chart for licensing requirements.
*
*
*
*
*
■ 3. Amend Supplement No. 1 to part
738 by
■ a. Revising the entry for
‘‘Liechtenstein’’ to read as set forth
below; and
■ c. Adding footnote 5 to read as set
forth below.
SUPPLEMENT NO. 1 TO PART 738—COMMERCE COUNTRY CHART
[Reason for control]
Chemical & biological
weapons
Nuclear
nonproliferation
National security
Missile
tech
Regional stability
Firearms
convention
Crime control
Anti-terrorism
Countries
CB
1
Liechtenstein 5 ..........................
CB
2
CB
3
NP
1
NP
2
NS
1
NS
2
MT
1
RS
1
RS
2
EC
1
CC
1
CC
2
CC
3
AT
1
AT
2
X
............
............
............
............
X
............
X
X
............
....................
X
............
X
............
............
*
5 Refer
*
*
*
PART 740—[AMENDED]
§ 740.16
■
4. The authority citation for Part 740
continues to read as follows:
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*
*
*
to Switzerland for licensing requirements for Liechtenstein under the EAR.
■
Authority: 50 U.S.C. app. 2401 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; Notice of August 12, 2011, 76
FR 50661 (August 16, 2011).
Supplement No. 1 to Part 740
§ 740.7
PART 748—[AMENDED]
[Amended]
5. Amend § 740.7 by removing
‘‘Liechtenstein,’’ from the group of
countries in paragraph (c)(1).
■
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[Amended]
6. Amend § 740.16 by removing and
reserving paragraph (g).
[Amended]
7. Amend Country Group B of
Supplement No. 1 to Part 740 by
removing ‘‘Liechtenstein’’.
■
8. The authority citation for Part 748
continues to read as follows:
■
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Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 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; Notice
of August 12, 2011, 76 FR 50661 (August 16,
2011).
§ 748.9
[Amended]
9. Amend § 748.9 by removing
‘‘Liechtenstein’’ from the group of
countries listed in alphabetical order in
paragraph (b)(2).
■
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Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations
Supplement No. 4 to Part 748
[Amended]
10. Amend Supplement No. 4 to Part
748 by removing the entire entry for
‘‘Liechtenstein’’.
■
Dated: November 7, 2011.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2011–29357 Filed 11–10–11; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 26 and 301
[TD 9556]
RIN 1545–BG89
Generation-Skipping Transfers (GST)
Section 6011 Regulations and
Amendments to the Section 6112
Regulations
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations that provide rules relating to
the disclosure of listed transactions and
transactions of interest with respect to
the generation-skipping transfer tax
under section 6011 of the Internal
Revenue Code (Code), conforming
amendments under sections 6111 and
6112, and rules relating to the
preparation and maintenance of lists
with respect to reportable transactions
under section 6112. The regulations
affect taxpayers participating in listed
transactions and transactions of interest
and material advisors to such
transactions. The final regulations also
contain rules under section 6112 that
affect material advisors to reportable
transactions. These regulations provide
guidance regarding the length of time a
material advisor has to prepare the list
that must be maintained after the list
maintenance requirement first arises
with respect to a reportable transaction.
These regulations also clarify guidance
regarding designation agreements.
DATES: These regulations are effective
November 14, 2011.
FOR FURTHER INFORMATION CONTACT:
Charles D. Wien, (202) 622–3070 (not a
toll-free number).
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SUMMARY:
Background
This document contains final
regulations that amend 26 CFR part 26
to provide rules for purposes of the
generation-skipping transfer tax that
require the disclosure of listed
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transactions and transactions of interest
by certain taxpayers on their Federal tax
returns under section 6011. This
document also contains final regulations
that modify and clarify some of the rules
under 26 CFR part 301 relating to the
disclosure obligations of material
advisors under section 6111 and the list
maintenance requirements of material
advisors with respect to reportable
transactions under section 6112.
On July 31, 2007, the IRS and
Treasury Department issued final
regulations under section 6011 (TD
9350; 72 FR 43146), 6111 (TD 9351; 72
FR 43157) and 6112 (TD 9352; 72 FR
43154) (the July 2007 regulations) that
were published in the Federal Register
on August 3, 2007. In the July 2007
regulations, the IRS and Treasury
Department amended 26 CFR parts 20,
25, 31, 53, 54, and 56 to provide that
certain taxpayers would be required to
disclose transactions of interest, in
addition to listed transactions, on their
Federal tax returns under section 6011.
On September 10, 2009, the IRS and
Treasury Department issued a notice of
proposed rulemaking under sections
6011, 6111, and 6112 (REG–136563–07)
(the September 2009 proposed
regulations). The September 2009
proposed regulations were published in
the Federal Register (74 FR 46705) on
September 11, 2009.
In response to the September 2009
proposed regulations, the IRS and
Treasury Department received two
written public comments. A public
hearing was not requested. After
consideration of the comments received,
the IRS and Treasury Department are
adopting the proposed regulations
without change.
Explanation of Comments
Two commentators expressed concern
that if the IRS and Treasury Department
designate a transaction involving gift,
estate, or generation-skipping transfer
taxes as a listed transaction or
transaction of interest, that a corporate
fiduciary, merely by acting as an
executor or trustee with respect to an
estate or trust that is incidental to the
transaction, would be treated as a
material advisor under section 6112 and
the regulations thereunder. One of the
commentators proposed that the
September 2009 proposed regulations
and existing final regulations under
sections 6011, 6111, and 6112 be
amended to require public comment
before a transaction involving Chapters
11, 12, and 13 of the Code can be
designated as a listed transaction or
transaction of interest.
The IRS and Treasury Department
believe that in the situation described
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by the commentators the existing
regulations under sections 6111 and
6112 properly address which parties are
material advisors, and transactions
involving gift, estate, or generationskipping transfer taxes should not be
treated differently than other
transactions. A fiduciary will not be
treated as a material advisor merely by
acting as an executor or trustee with
respect to an estate or trust that is
incidental to a transaction. A fiduciary
will be treated as a material advisor only
if the fiduciary provides material aid,
assistance or advice as described in
§ 301.6111–3(b)(2), the fiduciary
directly or indirectly derives gross
income in excess of the threshold
amount as described in § 301.6111–
3(b)(3), and the transaction is entered
into by the taxpayer.
In addition, the regulations are not
amended to require advance notice
before designating a transaction as a
transaction of interest or as a listed
transaction as suggested by a
commentator. In appropriate
circumstances, the IRS and Treasury
Department may choose to publish
advance notice of a transaction of
interest and request comments in
certain circumstances. The IRS and
Treasury Department will determine
whether to provide advance notice and
a request for comments on a transaction
by transaction basis. Accordingly, the
proposed regulations will be adopted
without change.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
regulatory assessment is not required. It
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations. It is hereby
certified that the collection of
information in these regulations will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that most of the material advisors
affected by these regulations are not
small entities and for those material
advisors that are small entities most of
the information is already required
under the current regulations. Any
additional recordkeeping burdens on
material advisors that result from this
regulation are insubstantial. Also, the
collection of information referenced in
these regulations has been approved
under OMB control number 1545–1686.
The clarification and new information
required by these final regulations add
little or no new burden to those existing
E:\FR\FM\14NOR1.SGM
14NOR1
]]>Agencies
[Federal Register Volume 76, Number 219 (Monday, November 14, 2011)]
[Rules and Regulations]
[Pages 70337-70340]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29357]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 738, 740 and 748
[Docket No. 110818514-1531-01]
RIN 0694-AF33
Exports and Reexports to the Principality of Liechtenstein
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Industry and Security (BIS) publishes this final
rule to amend certain requirements in the Export Administration
Regulations (EAR) that apply to the Principality of Liechtenstein
(Liechtenstein). In this final rule, BIS aligns license requirements
and licensing policy under the EAR for Liechtenstein with those for
Switzerland. As a result, for purposes of the EAR, Liechtenstein will
be treated the same as Switzerland.
By virtue of a Customs Union Treaty with Switzerland, Liechtenstein
has
[[Page 70338]]
adopted the export controls implemented under Swiss law, including
controls equivalent to those prescribed under multilateral regimes, and
has authorized Switzerland to administer and enforce export controls
within Liechtenstein's territory. As a result of this arrangement,
Liechtenstein and Switzerland serve as one territory for customs and
export purposes. Having recently been made aware of the full scope of
this arrangement and its consequences on export controls, BIS has
determined that it is appropriate to codify the treatment of
Liechtenstein and Switzerland as one territory for purposes of the EAR.
This treatment of Liechtenstein is consistent with the effort of the
United States to streamline licensing requirements where export
controls prescribed by the multilateral regimes are implemented.
DATES: This rule is effective November 14, 2011.
FOR FURTHER INFORMATION CONTACT: Sheila Quarterman, Regulatory Policy
Division, Office of Exporter Services, Bureau of Industry and Security,
U.S. Department of Commerce at (202) 482-2440 or by email
Sheila.Quarterman@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
By virtue of a Customs Union Treaty with Switzerland, Liechtenstein
has adopted the export controls implemented under Swiss law, and has
authorized Switzerland to administer and enforce export controls within
Liechtenstein's territory. The Bureau of Industry and Security (BIS)
recognizes that this arrangement results in the implementation of
export controls in Liechtenstein that are equivalent to those in
Switzerland, and in accordance with the multilateral export control
regimes. By virtue of the Customs Union Treaty of 1923 between
Switzerland and Liechtenstein (Customs Union Treaty),\1\ Liechtenstein
is a part of the ``Swiss customs territory'' and Switzerland acts on
behalf of Liechtenstein regarding issues of trade in goods. The Customs
Union Treaty empowers Switzerland to conclude and incur undertakings
that apply automatically and directly to Liechtenstein. As a result of
this arrangement, Swiss export control law applies equally to exporters
from Switzerland and Liechtenstein. Further, Switzerland is responsible
for administering export controls and enforcing export controls in
Liechtenstein. Consequently, in this final rule, BIS aligns its
treatment of Liechtenstein with that of Switzerland, resulting in the
treatment of Liechtenstein and Switzerland as one territory for
purposes of the Export Administration Regulations (EAR). Therefore,
license requirements and licensing policy under the EAR for
Liechtenstein are effectively the same as those for Switzerland. This
treatment of Liechtenstein is consistent with the effort of the United
States to streamline licensing requirements where export controls
prescribed by the multilateral regimes are implemented.
---------------------------------------------------------------------------
\1\ Customs Union Treaty of 29 March 1923 between the
Principality of Liechtenstein and Switzerland, 21 League of Nations
Treaty Series 233 (1924).
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Specific Amendments to the EAR That Align Liechtenstein With
Switzerland for Purposes of Licensing Requirements
In this rule, BIS amends the EAR by adding a sentence to paragraph
(b) (Countries) of Section 738.3 (Commerce Country Chart Structure)
that states that Liechtenstein, which serves as one territory with
Switzerland for customs and export purposes, will be accorded the same
licensing treatment as Switzerland under the EAR.
In addition and consistent with the purpose of this rule, BIS
amends the EAR by adding a footnote for ``Liechtenstein'' on the
Commerce Country Chart in Supplement No. 1 to Part 738 that states,
``Refer to Switzerland for licensing requirements for Liechtenstein
under the EAR.''; and by removing the ``X'' in chemical and biological
weapons column 2, nuclear nonproliferation column 1, national security
column 2, and regional stability column 2. BIS also amends the EAR by
removing Liechtenstein from the group of Computer Tier 1 Destinations
in paragraph (c)(1) of Section 740.7 (License Exception Computers
(APP)); Country Group B in Supplement No. 1 to Part 740; the group of
countries for which an Import Certificate or End-User Statement may be
required in paragraph (b)(2) of Section 748.9 (Support Documents for
License Applications); and the Authorities Administering Import
Certificate/Delivery Verification and End-User Statement Systems in
Foreign Countries in Supplement No. 4 to part 748. Finally, in this
rule, BIS removes and reserves paragraph (g), which expressly permitted
reexports between Liechtenstein and Switzerland, in License Exception
Additional Permissive Reexports (APR).
Since August 21, 2001, the Export Administration Act (the Act) has
been in lapse and the President, through Executive Order 13222 of
August 17, 2001 (3 CFR, 2001 Comp., p. 783 (2002)), as extended most
recently by the Notice of August 12, 2011, 76 FR 50661 (August 16,
2011), has continued the EAR in effect under the International
Emergency Economic Powers Act. BIS continues to carry out the
provisions of the Act, as appropriate and to the extent permitted by
law, pursuant to Executive Order 13222.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget (OMB).
2. Notwithstanding any other provisions 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 OMB
Control Number. This rule involves two collections 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 43.8 minutes to prepare and submit form BIS-
748. The other collection has been approved by OMB under control number
0694-0106, ``Reporting and Recordkeeping Requirements under the
Wassenaar Arrangement,'' and carries a burden hour estimate of 21
minutes for a manual or electronic submission. Total burden hours
associated with the PRA and OMB control numbers 0694-0088 and 0694-0106
are not expected to increase as a result of this rule.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to 5 U.S.C. 553(a)(1), the provisions of the
Administrative Procedure Act 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
[[Page 70339]]
foreign affairs function of the United States. (See 5 U.S.C.
553(a)(1)). Immediate implementation of these amendments furthers
United States policies and goals toward allies and cooperating and
like-minded countries with regard to export controls and reduces the
burden on exporters in relation to licensing obligations. This rule
will positively impact regional stability by promoting greater
responsibility in the transfer of dual-use goods, technologies, thus
preventing destabilizing effects. This action also reconciles any
inconsistencies in the treatment of Liechtenstein in light of its
Treaty and export control arrangement with Switzerland and therefore is
consistent with the effort of the United States to streamline licensing
requirements where export controls prescribed by the multilateral
regimes are implemented. Failure to immediately implement this rule
would result in an unnecessary licensing burden on businesses,
especially small businesses. Thus, in light of the United States'
understanding of how export controls are administered in Liechtenstein,
the United States seeks to assist businesses and prevent confusion by
immediately removing licensing requirements that are unnecessary in
light of the fact the international regime requirements are otherwise
being met. 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. Therefore, this regulation is
issued in final form. In addition, the Department finds good cause
under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness for
the reasons provided above. Accordingly, this regulation is made
effective immediately upon publication.
List of Subjects
15 CFR Part 738
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, parts 738, 740 and 748 of the Export Administration
Regulations (15 CFR parts 730 through 774) are amended as follows:
PART 738--[AMENDED]
0
1. The authority citation for Part 738 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 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; Notice of August 12, 2011, 76 FR 50661 (August 16, 2011).
0
2. Amend Sec. 738.3 by revising paragraph (b) to read as follows:
Sec. 738.3 Commerce Country Chart structure.
* * * * *
(b) Countries. The first column of the Country Chart lists
countries in alphabetical order. There are a number of destinations
that are not listed in the Country Chart contained in Supplement No. 1
to part 738. If your destination is not listed on the Country Chart and
such destination is a territory, possession, dependency or department
of a country included on the Country Chart, the EAR accords your
destination the same licensing treatment as the country of which it is
a territory, possession, dependency or department. For example, if your
destination is the Cayman Islands, a dependent territory of the United
Kingdom, refer to the United Kingdom on the Country Chart for licensing
requirements. In addition, if your destination is Liechtenstein, which
serves as one territory with Switzerland for purposes of the EAR, refer
to Switzerland on the Country Chart for licensing requirements.
* * * * *
0
3. Amend Supplement No. 1 to part 738 by
0
a. Revising the entry for ``Liechtenstein'' to read as set forth below;
and
0
c. Adding footnote 5 to read as set forth below.
Supplement No. 1 to Part 738--Commerce Country Chart
[Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical & biological Nuclear National security Missile Regional stability Firearms Crime control Anti-terrorism
weapons nonproliferation -------------------- tech convention -------------------------------------------------
Countries -------------------------------------------------- --------------------------------------------
CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 EC 1 CC 1 CC 2 CC 3 AT 1 AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Liechtenstein \5\........... X ........ ........ ........ ........ X ........ X X ........ ............ X ........ X ........ ........
* * * * * * *
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\5\ Refer to Switzerland for licensing requirements for Liechtenstein under the EAR.
PART 740--[AMENDED]
0
4. 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.;
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; Notice
of August 12, 2011, 76 FR 50661 (August 16, 2011).
Sec. 740.7 [Amended]
0
5. Amend Sec. 740.7 by removing ``Liechtenstein,'' from the group of
countries in paragraph (c)(1).
Sec. 740.16 [Amended]
0
6. Amend Sec. 740.16 by removing and reserving paragraph (g).
Supplement No. 1 to Part 740 [Amended]
0
7. Amend Country Group B of Supplement No. 1 to Part 740 by removing
``Liechtenstein''.
PART 748--[AMENDED]
0
8. The authority citation for Part 748 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 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; Notice of August 12, 2011, 76
FR 50661 (August 16, 2011).
Sec. 748.9 [Amended]
0
9. Amend Sec. 748.9 by removing ``Liechtenstein'' from the group of
countries listed in alphabetical order in paragraph (b)(2).
[[Page 70340]]
Supplement No. 4 to Part 748 [Amended]
0
10. Amend Supplement No. 4 to Part 748 by removing the entire entry for
``Liechtenstein''.
Dated: November 7, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-29357 Filed 11-10-11; 8:45 am]
BILLING CODE 3510-33-P
