Amendment to Existing Validated End-User Authorizations: Hynix Semiconductor China Ltd., Hynix Semiconductor (Wuxi) Ltd., and Boeing Tianjin Composites Co. Ltd. in the People's Republic of China, 40258-40261 [2012-16724]
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
becoming free of restraint under
dynamic loading. The dynamic loading
of § 25.562(b)(2) is considered an
acceptable dynamic event. The
applicant may propose an alternate
pulse; however, the impulse and peak
load may not be less than that of
§ 25.562(b)(2). As an alternative to a
dynamic test, static testing may be used
if the loading is assessed as equivalent
as or more critical than a dynamic test,
based upon validated dynamic analysis.
Both the primary directional loading
and rebound conditions need to be
assessed.
5. Instructions for Continued
Airworthiness. The instructions for
continued airworthiness must reflect the
fastening method used and must ensure
the reliability of the methods used (e.g.,
life limit of adhesives, or clamp
connection). Inspection methods and
intervals must be defined based upon
adhesion data from the manufacturer of
the adhesive or actual adhesion test
data, if necessary.
Issued in Renton, Washington, on June 25,
2012.
K.C. Yanamura,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 2012–16720 Filed 7–6–12; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 120608159–2159–01]
RIN 0694–AF71
Amendment to Existing Validated EndUser Authorizations: Hynix
Semiconductor China Ltd., Hynix
Semiconductor (Wuxi) Ltd., and
Boeing Tianjin Composites Co. Ltd. in
the People’s Republic of China
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
In this rule, the Bureau of
Industry and Security (BIS) amends the
Export Administration Regulations
(EAR) to revise the existing
Authorization Validated End-User
(VEU) listings for three VEUs in the
People’s Republic of China (PRC).
Specifically, BIS amends the EAR to
change the names of existing VEUs
Hynix Semiconductor China Ltd. and
Hynix Semiconductor (Wuxi) Ltd. and
their respective ‘‘Eligible Destinations’’
in the PRC. Also, BIS amends the list of
‘‘Eligible Items (by ECCN)’’ that may be
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SUMMARY:
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exported, reexported and transferred
(in-country) to the approved facility of
VEU Boeing Tianjin Composites Co. Ltd.
(BTC) in the PRC. These changes are
prompted by factors arising from the
companies’ normal course of business,
and are not the result of any activities
of concern by the companies.
DATES: This rule is effective July 9,
2012.
FOR FURTHER INFORMATION CONTACT:
Karen Nies-Vogel, Chair, End-User
Review Committee, Bureau of Industry
and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania
Avenue NW., Washington, DC 20230; by
telephone: (202) 482–5991, fax: (202)
482–3991, or email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User
BIS amended the EAR in a final rule
on June 19, 2007 (72 FR 33646), creating
a new authorization for ‘‘Validated endusers’’ (VEUs) located in eligible
destinations to which eligible items may
be exported, reexported, or transferred
(in-country) under a general
authorization instead of a license, in
conformance with section 748.15 of the
EAR. VEUs may obtain eligible items
that are on the Commerce Control List,
set forth in Supplement No. 1 to Part
774 of the EAR, without having to wait
for their suppliers to obtain export
licenses from BIS. Eligible items may
include commodities, software, and
technology, except those controlled for
missile technology or crime control
reasons.
The VEUs listed in Supplement No. 7
to Part 748 of the EAR were reviewed
and approved by the U.S. Government
in accordance with the provisions of
section 748.15 and Supplement Nos. 8
and 9 to Part 748 of the EAR. The
revisions to Supplement No. 7 to Part
748 set forth in this rule are being made
either at the request of the VEUs or
pursuant to the U.S. Government’s
periodic review of VEU authorizations,
and were approved by the End-User
Review Committee (ERC) following the
process set forth in Section 748.15 and
Supplement No. 9 to Part 748 of the
EAR.
Amendment to Existing Validated EndUser Authorizations in the PRC
Revision to Names of Hynix
Semiconductor China Ltd. and Hynix
Semiconductor (Wuxi) Ltd. and Their
‘‘Eligible destinations’’
In this rule, BIS amends Supplement
No. 7 to Part 748 of the EAR to change
the names of existing VEUs Hynix
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Fmt 4700
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Semiconductor China Ltd. and Hynix
Semiconductor (Wuxi) Ltd. and the
names of the companies’ respective
‘‘Eligible destinations’’ (i.e., facilities) in
the People’s Republic of China (PRC).
Both companies were designated as
VEUs on October 12, 2010 (75 FR
62462).
In this rule, the name Hynix
Semiconductor China Ltd. is changed to
SK hynix Semiconductor (China) Ltd.,
and the name of the company’s existing
approved ‘‘Eligible destination’’ is
changed from Hynix Semiconductor
China Ltd. to SK hynix Semiconductor
(China) Ltd. In addition, the name
Hynix Semiconductor (Wuxi) Ltd. is
changed to SK hynix Semiconductor
(Wuxi) Ltd., and the name of the
company’s existing approved ‘‘Eligible
destination’’ is changed from Hynix
Semiconductor (Wuxi) Ltd. to SK hynix
Semiconductor (Wuxi) Ltd. The
addresses of the companies’ respective
‘‘Eligible destinations’’ remain the same.
These amendments are prompted by
factors arising from the companies’
normal course of business, and are not
the result of activities of concern by the
companies.
Revision to the List of ‘‘Eligible items (by
ECCN)’’ for Boeing Tianjin Composites
Co. Ltd.
BIS designated BHA Aero Composite
Parts Co. as a VEU on October 19, 2007
(72 FR 59164). On April 29, 2009, BIS
amended the authorization by changing
the name of the VEU to Boeing Tianjin
Composites Co., Ltd. (BTC) (74 FR
19382). In addition, on February 24,
2012, BIS amended BTC’s VEU
authorization to correct the address of
BTC’s eligible destination and revise the
list of ‘‘Eligible items (by ECCN)’’ that
may be exported, reexported, and
transferred (in-country) to BTC (77 FR
10953). In this rule, BIS further revises
the list of ‘‘Eligible items (by ECCN)’’
that may be exported, reexported, and
transferred (in-country) to BTC. This
amendment is prompted by factors
arising from BTC’s normal course of
business, and is not the result of
activities of concern by BTC.
BTC’s list of ‘‘Eligible items (by
ECCN)’’ prior to the publication of this
rule was:
1A002.a, 1B001.f, 1C010.b, 1C010.e, 1D001
(limited to ‘‘software’’ specially designed or
modified for the ‘‘development’’,
‘‘production’’ or ‘‘use’’ of equipment
controlled by 1B001.f), 1E001 (limited to
‘‘technology’’ according to the General
Technology Note for the ‘‘development’’ or
‘‘production’’ of items controlled by 1A002.a,
1B001.f, and 1C010.b & .e), 2B001.b.2
(limited to machine tools with accuracies no
better than (i.e., less than) 13 microns),
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
2B001.e, 2D001 (limited to ‘‘software,’’ other
than that controlled by 2D002, specially
designed or modified for the ‘‘development’’,
‘‘production’’ or ‘‘use’’ of equipment
controlled by 2B001.b.2 and 2B001.e), and
2D002 (limited to ‘‘software’’ for electronic
devices, even when residing in an electronic
device or system, enabling such devices or
systems to function as a ‘‘numerical control’’
unit, capable of coordinating simultaneously
more than 4 axes for ‘‘contouring control’’
controlled by 2B001.b.2 and 2B001.e).
With this rule, BTC’s revised list of
‘‘Eligible items (by ECCN)’’ is:
1B001.f, 1D001 (limited to ‘‘software’’
specially designed or modified for the ‘‘use’’
of equipment controlled by 1B001.f),
2B001.b.2 (limited to machine tools with
accuracies no better than (i.e., not less than)
13 microns), 2D001 (limited to ‘‘software,’’
other than that controlled by 2D002,
specially designed or modified for the ‘‘use’’
of equipment controlled by 2B001.b.2), and
2D002 (limited to ‘‘software’’ for electronic
devices, even when residing in an electronic
device or system, enabling such devices or
systems to function as a ‘‘numerical control’’
unit, capable of coordinating simultaneously
more than 4 axes for ‘‘contouring control’’
controlled by 2B001.b.2).
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.
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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,
reducing costs, harmonizing rules, and
promoting flexibility. This rule has been
determined to be not significant for
purposes of Executive Order 12866.
2. This rule involves collections
previously approved by the Office of
Management and Budget (OMB) under
Control Number 0694–0088, ‘‘MultiPurpose Application,’’ which carries a
burden hour estimate of 43.8 minutes to
prepare and submit form BIS–748; and
for recordkeeping, reporting and review
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requirements in connection with
Authorization VEU, which carries an
estimated burden of 30 minutes per
submission. This rule is expected to
result in a decrease in license
applications submitted to BIS. Total
burden hours associated with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.) (PRA) and OMB
Control Number 0694–0088 are not
expected to increase significantly as a
result of this rule.
Notwithstanding any other provisions
of law, no person is required to respond
nor be subject to a penalty for failure to
comply with a collection of information,
subject to the requirements of the PRA,
unless that collection of information
displays a currently valid OMB Control
Number.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. Pursuant to the Administrative
Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive
requirements that this rule be subject to
notice and the opportunity for public
comment because such notice and
comment here are unnecessary and
contrary to the public interest. In
determining whether to grant VEU
designations, a committee of U.S.
Government agencies evaluates
information about and commitments
made by candidate companies, the
nature and terms of which are set forth
in 15 CFR part 748, Supplement No. 8.
The criteria for evaluation by the
committee are set forth in 15 CFR
748.15(a)(2).
The information, commitments, and
criteria for this extensive review were
all established through the notice of
proposed rulemaking and public
comment process (71 FR 38313, July 2,
2006 (proposed rule), and 72 FR 33646,
June 19, 2007 (final rule)). Given the
similarities between the authorizations
provided under the VEU program and
export licenses (as discussed further
below), the publication of this
information does not establish new
policy; in publishing this final rule, BIS
simply amends three VEU
authorizations by updating the names of
two end users and revising the ‘‘Eligible
items (by ECCN)’’ of another end user.
These changes have been made within
the established regulatory framework of
the Authorization VEU program.
Further, this rule does not abridge the
rights of the public or eliminate the
public’s option to export under any of
the forms of authorization set forth in
the EAR.
Publication of this rule in other than
final form is unnecessary because the
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40259
authorization granted in the rule is
consistent with the authorizations
granted to exporters for individual
licenses (and amendments or revisions
thereof), which do not undergo public
review. Just as license applicants do,
VEU authorization applicants provide
the U.S. Government with confidential
business information. This information
is extensively reviewed according to the
criteria for VEU authorizations, as set
out in 15 CFR 748.15(a)(2).
Additionally, just as the interagency
reviews license applications, the
authorizations granted under the VEU
program involve interagency
deliberation and result from review of
public and non-public sources,
including licensing data, and the
measurement of such information
against the VEU authorization criteria.
Given the thorough nature of the review,
and in light of the parallels between the
VEU application review process and the
review of license applications, public
comment on this authorization and
subsequent amendments prior to
publication is unnecessary. Moreover,
because, as noted above, the criteria and
process for authorizing and
administering VEUs were developed
with public comments; allowing
additional public comment on this
amendment to individual VEU
authorizations, which was determined
according to those criteria, is
unnecessary. Finally, allowing for prior
public notice and comment is contrary
to the public interest because it could
cause confusion with the VEU status of
the three companies identified in this
rule due to the change of VEU names for
two of those companies, and the items
that may be exported, reexported or
transferred (in-country) without a
license to one of those companies.
Section 553(d) of the APA generally
provides that rules may not take effect
earlier than thirty (30) days after they
are published in the Federal Register.
BIS finds good cause to waive the
requirement of 5 U.S.C. 553(d)(3) to
delay the effectiveness of this
regulation, because such a delay is
unnecessary. BIS simply amends three
VEU authorizations by updating the
names of two end users and revising the
‘‘Eligible items (by ECCN)’’ of another
end user. These changes have been
made within the established regulatory
framework of the Authorization VEU
program. Further, this rule does not
abridge the rights of the public or
eliminate the public’s option to export
under any of the forms of authorization
set forth in the EAR. Delaying this
action’s effectiveness could cause
confusion with the VEU status of the
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
three companies identified in this rule
due to the change of VEU names for two
of those companies, and the items that
may be exported, reexported or
transferred (in-country) without a
license to one of those companies.
Accordingly, it would be unnecessary
and contrary to the public interest to
delay this rule’s effectiveness.
No other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this final rule. Because a
notice of proposed rulemaking and an
opportunity for public comment are not
required under the APA or by any other
law, the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.) are not applicable and no
regulatory flexibility analysis has been
prepared.
List of Subjects in 15 CFR Part 748
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. Supplement No. 7 to Part 748 is
amended in ‘‘China (People’s Republic
of)’’ by:
■ a. Revising the entry for ‘‘Boeing
Tianjin Composites Co. Ltd.’’;
■ b. Removing the entries for ‘‘Hynix
Semiconductor China Ltd.’’, and ‘‘Hynix
Semiconductor (Wuxi) Ltd.’’; and
■ c. Adding new entries for ‘‘SK hynix
Semiconductor (China) Ltd.’’, and ‘‘SK
hynix Semiconductor (Wuxi) Ltd.’’ in
alphabetical order.
The revisions and additions read as
follows:
■
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, Part 748 of the EAR (15
CFR parts 730–774) is amended as
follows:
PART 748—[AMENDED]
1. The authority citation for 15 CFR
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,
SUPPLEMENT NO. 7 TO PART 748—AUTHORIZATION VALIDATED END-USER (VEU); LIST OF VALIDATED END-USERS,
RESPECTIVE ITEMS ELIGIBLE FOR EXPORT, REEXPORT AND TRANSFER, AND ELIGIBLE DESTINATIONS
Validated end
user
Country
*
China (People’s
Republic of)
*
*
*
*
*
*
*
*
*
*
*
Boeing Tianjin
Composites Co.
Ltd.
*
1B001.f, 1D001 (limited to ‘‘software’’ specially designed or modified for the ‘‘use’’ of equipment
controlled by 1B001.f), 2B001.b.2
(limited to machine tools with accuracies no better than (i.e., not
less than) 13 microns), 2D001
(limited to ‘‘software,’’ other than
that controlled by 2D002, specially
designed or modified for the ‘‘use’’
of
equipment
controlled
by
2B001.b.2), and 2D002 (limited to
‘‘software’’ for electronic devices,
even when residing in an electronic device or system, enabling
such devices or systems to function as a ‘‘numerical control’’ unit,
capable of coordinating simultaneously more than 4 axes for
‘‘contouring control’’ controlled by
2B001.b.2).
*
*
SK hynix Semiconductor
(China) Ltd.
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Federal Register citation
*
*
VerDate Mar<15>2010
Eligible
destination
Eligible items (by ECCN)
16:36 Jul 06, 2012
*
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Fmt 4700
72 FR 59164, 10/19/07.
74 FR 19381, 4/29/09.
77 FR 10953, 2/24/12.
77 FR [INSERT FR PAGE NUMBER], 7/9/
12.
*
3B001.a,
3B001.b,
3B001.c,
3B001.d, 3B001.e, and 3B001.f.
Jkt 226001
Boeing Tianjin
Composites Co.
Ltd., No. 4–388
Hebei Road,
Tanggu Tianjin,
China.
SK hynix Semiconductor
(China) Ltd.,
Lot K7/K7–1,
Export Processing Zone,
Wuxi, Jiangsu,
China.
Sfmt 4700
*
*
75 FR 62462, 10/12/10.
77 FR [INSERT FR PAGE NUMBER], 7/9/
12.
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Federal Register / Vol. 77, No. 131 / Monday, July 9, 2012 / Rules and Regulations
SUPPLEMENT NO. 7 TO PART 748—AUTHORIZATION VALIDATED END-USER (VEU); LIST OF VALIDATED END-USERS,
RESPECTIVE ITEMS ELIGIBLE FOR EXPORT, REEXPORT AND TRANSFER, AND ELIGIBLE DESTINATIONS—Continued
Validated end
user
Country
SK hynix Semiconductor
(Wuxi) Ltd.
*
Eligible items (by ECCN)
Eligible
destination
Federal Register citation
3B001.a,
3B001.b,
3B001.c,
3B001.d, 3B001.e, and 3B001.f.
SK hynix Semiconductor
(Wuxi) Ltd., Lot
K7/K7–1, Export Processing
Zone, Wuxi,
Jiangsu, China.
75 FR 62462, 10/12/10.
77 FR [INSERT FR PAGE NUMBER], 7/9/
12.
*
*
Dated: June 29, 2012.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
BILLING CODE 3510–33–P
NATIONAL ARCHIVES AND RECORDS
ADMINISTRATION
Information Security Oversight Office
32 CFR Part 2003
[NARA–12–0003]
RIN 3095–AB76
The Interagency Security Classification
Appeals Panel (ISCAP) Bylaws, Rules,
and Appeal Procedures
Information Security Oversight
Office, National Archives and Records
Administration.
ACTION: Direct final rule.
AGENCY:
The Interagency Security
Classification Appeals Panel (ISCAP) is
a Presidential panel that decides on
certain classification and
declassification issues, as established in
Executive Order 13526, Classified
National Security Information,
December 29, 2009, section 5.3(a)(1),
and the E.O.’s implementing directives.
Section 5.3(c) of the E.O. directs ISCAP
to issue bylaws, rules, and procedures
and to publish them in the Federal
Register. ISCAP previously published
its bylaws as a regulatory appendix,
Classified National Security Information
Directive No. 1. This rule revamps
ISCAP’s bylaws and appellate
procedures and publishes them in their
own part for easier access.
DATES: This rule is effective September
7, 2012, without further action, unless
adverse comment is received by August
8, 2012. If adverse comment is received,
NARA will publish a timely withdrawal
of the rule in the Federal Register.
tkelley on DSK3SPTVN1PROD with RULES
SUMMARY:
16:36 Jul 06, 2012
*
NARA invites interested
persons to submit comments on this
direct final rule. Please include ‘‘Attn:
3095–AB76 and your name and mailing
address in your comments. Comments
may be submitted by any of the
following methods:
D Federal eRulemaking Portal: Go to:
https://www.regulations.gov. Follow the
instructions for submitting comments.
D Fax: Submit comments by facsimile
transmission to 301–837–0319, attention
Regulations Comments Desk.
D Mail: Send comments to Strategy
and Policy Office (SP); Regulations
Comments Desk, Room 4100; National
and Archives Records Administration;
ATTN: Laura McCarthy; 8601 Adelphi
Road; College Park, MD 20740.
D Hand Delivery or Courier: Deliver
comments to 8601 Adelphi Road,
College Park, MD. Address them to
Strategy and Policy Office (SP);
Regulations Comments Desk, Room
4100, Attn: Laura McCarthy.
FOR FURTHER INFORMATION CONTACT: John
P. Fitzpatrick, Director, ISOO, at 202–
357–5250.
SUPPLEMENTARY INFORMATION: ISCAP is a
Presidential appellate panel made up of
representatives from the Departments of
State, Defense, and Justice, the National
Archives and Records Administration,
the Office of the Director of National
Intelligence, and the National Security
Advisor, with an occasional
representative from the Central
Intelligence Agency. The director of the
Information Security Oversight Office
(ISOO), a unit of the National Archives
and Records Administration (NARA),
has been tasked by E.O. 13526 as the
Panel’s Executive Secretary, and the
ISOO staff as the administrative staff
supporting the Panel. As a result, the
ISCAP bylaws and appellate procedures
are published by NARA along with
other ISOO regulations.
ISCAP’s bylaws were previously
published in 2004 as Appendix A to
ISOO’s Directive 1. When ISOO’s
ADDRESSES:
[FR Doc. 2012–16724 Filed 7–6–12; 8:45 am]
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*
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*
*
directive was updated in 2009, the
ISCAP bylaws were not included as an
appendix again, and are now being
added, along with appellate procedures,
for publication as Part 2003. Publishing
ISCAP’s bylaws and appellate
procedures in a separate part will make
them easier to find and to use.
This rule is effective upon publication
for good cause as permitted by the
Administrative Procedure Act (5 U.S.C.
553(d)(3)). NARA believes that delaying
the effective date for 30 days is
unnecessary as this rule represents
minor technical amendments from the
previous by-laws as mandated by E.O.
13526.
This direct final rule is not a
significant regulatory action for the
purposes of E.O. 12866 and has [not]
been reviewed by the Office of
Management and Budget (OMB). The
proposed amendment is also not a major
rule as defined in 5 U.S.C. chapter 8,
Congressional Review of Agency
Rulemaking. As required by the
Regulatory Flexibility Act, we certify
that this rule will not have a significant
impact on a substantial number of small
entities because it sets out only the
bylaws by which the Panel will operate
and the review procedures for Federal
agency declassification actions.
List of Subjects in 32 CFR Part 2003
Classified information.
For the reasons stated in the
preamble, NARA adds 32 CFR part
2003, to read as follows:
PART 2003—INTERAGENCY
SECURITY CLASSIFICATION
APPEALS PANEL (ISCAP) BYLAWS,
RULES, AND APPEAL PROCEDURES
Subpart A—Bylaws
Sec.
2003.1 Purpose (Article I).
2003.2 Authority (Article II).
2003.3 Functions (Article III).
2003.4 Membership (Article IV).
2003.5 Meetings (Article V).
2003.6 Voting (Article VI.).
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]]>Agencies
[Federal Register Volume 77, Number 131 (Monday, July 9, 2012)]
[Rules and Regulations]
[Pages 40258-40261]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16724]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 120608159-2159-01]
RIN 0694-AF71
Amendment to Existing Validated End-User Authorizations: Hynix
Semiconductor China Ltd., Hynix Semiconductor (Wuxi) Ltd., and Boeing
Tianjin Composites Co. Ltd. in the People's Republic of China
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) to revise the existing
Authorization Validated End-User (VEU) listings for three VEUs in the
People's Republic of China (PRC). Specifically, BIS amends the EAR to
change the names of existing VEUs Hynix Semiconductor China Ltd. and
Hynix Semiconductor (Wuxi) Ltd. and their respective ``Eligible
Destinations'' in the PRC. Also, BIS amends the list of ``Eligible
Items (by ECCN)'' that may be exported, reexported and transferred (in-
country) to the approved facility of VEU Boeing Tianjin Composites Co.
Ltd. (BTC) in the PRC. These changes are prompted by factors arising
from the companies' normal course of business, and are not the result
of any activities of concern by the companies.
DATES: This rule is effective July 9, 2012.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Bureau of Industry and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania Avenue NW., Washington, DC 20230;
by telephone: (202) 482-5991, fax: (202) 482-3991, or email:
ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User
BIS amended the EAR in a final rule on June 19, 2007 (72 FR 33646),
creating a new authorization for ``Validated end-users'' (VEUs) located
in eligible destinations to which eligible items may be exported,
reexported, or transferred (in-country) under a general authorization
instead of a license, in conformance with section 748.15 of the EAR.
VEUs may obtain eligible items that are on the Commerce Control List,
set forth in Supplement No. 1 to Part 774 of the EAR, without having to
wait for their suppliers to obtain export licenses from BIS. Eligible
items may include commodities, software, and technology, except those
controlled for missile technology or crime control reasons.
The VEUs listed in Supplement No. 7 to Part 748 of the EAR were
reviewed and approved by the U.S. Government in accordance with the
provisions of section 748.15 and Supplement Nos. 8 and 9 to Part 748 of
the EAR. The revisions to Supplement No. 7 to Part 748 set forth in
this rule are being made either at the request of the VEUs or pursuant
to the U.S. Government's periodic review of VEU authorizations, and
were approved by the End-User Review Committee (ERC) following the
process set forth in Section 748.15 and Supplement No. 9 to Part 748 of
the EAR.
Amendment to Existing Validated End-User Authorizations in the PRC
Revision to Names of Hynix Semiconductor China Ltd. and Hynix
Semiconductor (Wuxi) Ltd. and Their ``Eligible destinations''
In this rule, BIS amends Supplement No. 7 to Part 748 of the EAR to
change the names of existing VEUs Hynix Semiconductor China Ltd. and
Hynix Semiconductor (Wuxi) Ltd. and the names of the companies'
respective ``Eligible destinations'' (i.e., facilities) in the People's
Republic of China (PRC). Both companies were designated as VEUs on
October 12, 2010 (75 FR 62462).
In this rule, the name Hynix Semiconductor China Ltd. is changed to
SK hynix Semiconductor (China) Ltd., and the name of the company's
existing approved ``Eligible destination'' is changed from Hynix
Semiconductor China Ltd. to SK hynix Semiconductor (China) Ltd. In
addition, the name Hynix Semiconductor (Wuxi) Ltd. is changed to SK
hynix Semiconductor (Wuxi) Ltd., and the name of the company's existing
approved ``Eligible destination'' is changed from Hynix Semiconductor
(Wuxi) Ltd. to SK hynix Semiconductor (Wuxi) Ltd. The addresses of the
companies' respective ``Eligible destinations'' remain the same. These
amendments are prompted by factors arising from the companies' normal
course of business, and are not the result of activities of concern by
the companies.
Revision to the List of ``Eligible items (by ECCN)'' for Boeing Tianjin
Composites Co. Ltd.
BIS designated BHA Aero Composite Parts Co. as a VEU on October 19,
2007 (72 FR 59164). On April 29, 2009, BIS amended the authorization by
changing the name of the VEU to Boeing Tianjin Composites Co., Ltd.
(BTC) (74 FR 19382). In addition, on February 24, 2012, BIS amended
BTC's VEU authorization to correct the address of BTC's eligible
destination and revise the list of ``Eligible items (by ECCN)'' that
may be exported, reexported, and transferred (in-country) to BTC (77 FR
10953). In this rule, BIS further revises the list of ``Eligible items
(by ECCN)'' that may be exported, reexported, and transferred (in-
country) to BTC. This amendment is prompted by factors arising from
BTC's normal course of business, and is not the result of activities of
concern by BTC.
BTC's list of ``Eligible items (by ECCN)'' prior to the publication
of this rule was:
1A002.a, 1B001.f, 1C010.b, 1C010.e, 1D001 (limited to
``software'' specially designed or modified for the ``development'',
``production'' or ``use'' of equipment controlled by 1B001.f), 1E001
(limited to ``technology'' according to the General Technology Note
for the ``development'' or ``production'' of items controlled by
1A002.a, 1B001.f, and 1C010.b & .e), 2B001.b.2 (limited to machine
tools with accuracies no better than (i.e., less than) 13 microns),
[[Page 40259]]
2B001.e, 2D001 (limited to ``software,'' other than that controlled
by 2D002, specially designed or modified for the ``development'',
``production'' or ``use'' of equipment controlled by 2B001.b.2 and
2B001.e), and 2D002 (limited to ``software'' for electronic devices,
even when residing in an electronic device or system, enabling such
devices or systems to function as a ``numerical control'' unit,
capable of coordinating simultaneously more than 4 axes for
``contouring control'' controlled by 2B001.b.2 and 2B001.e).
With this rule, BTC's revised list of ``Eligible items (by ECCN)'' is:
1B001.f, 1D001 (limited to ``software'' specially designed or
modified for the ``use'' of equipment controlled by 1B001.f),
2B001.b.2 (limited to machine tools with accuracies no better than
(i.e., not less than) 13 microns), 2D001 (limited to ``software,''
other than that controlled by 2D002, specially designed or modified
for the ``use'' of equipment controlled by 2B001.b.2), and 2D002
(limited to ``software'' for electronic devices, even when residing
in an electronic device or system, enabling such devices or systems
to function as a ``numerical control'' unit, capable of coordinating
simultaneously more than 4 axes for ``contouring control''
controlled by 2B001.b.2).
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, reducing costs, harmonizing rules, and promoting flexibility.
This rule has been determined to be not significant for purposes of
Executive Order 12866.
2. This rule involves collections previously approved by the Office
of Management and Budget (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; and for recordkeeping,
reporting and review requirements in connection with Authorization VEU,
which carries an estimated burden of 30 minutes per submission. This
rule is expected to result in a decrease in license applications
submitted to BIS. Total burden hours associated with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB Control
Number 0694-0088 are not expected to increase significantly as a result
of this rule.
Notwithstanding any other provisions of law, no person is required
to respond nor be subject to a penalty for failure to comply with a
collection of information, subject to the requirements of the PRA,
unless that collection of information displays a currently valid OMB
Control Number.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive requirements that this rule be
subject to notice and the opportunity for public comment because such
notice and comment here are unnecessary and contrary to the public
interest. In determining whether to grant VEU designations, a committee
of U.S. Government agencies evaluates information about and commitments
made by candidate companies, the nature and terms of which are set
forth in 15 CFR part 748, Supplement No. 8. The criteria for evaluation
by the committee are set forth in 15 CFR 748.15(a)(2).
The information, commitments, and criteria for this extensive
review were all established through the notice of proposed rulemaking
and public comment process (71 FR 38313, July 2, 2006 (proposed rule),
and 72 FR 33646, June 19, 2007 (final rule)). Given the similarities
between the authorizations provided under the VEU program and export
licenses (as discussed further below), the publication of this
information does not establish new policy; in publishing this final
rule, BIS simply amends three VEU authorizations by updating the names
of two end users and revising the ``Eligible items (by ECCN)'' of
another end user. These changes have been made within the established
regulatory framework of the Authorization VEU program. Further, this
rule does not abridge the rights of the public or eliminate the
public's option to export under any of the forms of authorization set
forth in the EAR.
Publication of this rule in other than final form is unnecessary
because the authorization granted in the rule is consistent with the
authorizations granted to exporters for individual licenses (and
amendments or revisions thereof), which do not undergo public review.
Just as license applicants do, VEU authorization applicants provide the
U.S. Government with confidential business information. This
information is extensively reviewed according to the criteria for VEU
authorizations, as set out in 15 CFR 748.15(a)(2). Additionally, just
as the interagency reviews license applications, the authorizations
granted under the VEU program involve interagency deliberation and
result from review of public and non-public sources, including
licensing data, and the measurement of such information against the VEU
authorization criteria. Given the thorough nature of the review, and in
light of the parallels between the VEU application review process and
the review of license applications, public comment on this
authorization and subsequent amendments prior to publication is
unnecessary. Moreover, because, as noted above, the criteria and
process for authorizing and administering VEUs were developed with
public comments; allowing additional public comment on this amendment
to individual VEU authorizations, which was determined according to
those criteria, is unnecessary. Finally, allowing for prior public
notice and comment is contrary to the public interest because it could
cause confusion with the VEU status of the three companies identified
in this rule due to the change of VEU names for two of those companies,
and the items that may be exported, reexported or transferred (in-
country) without a license to one of those companies.
Section 553(d) of the APA generally provides that rules may not
take effect earlier than thirty (30) days after they are published in
the Federal Register. BIS finds good cause to waive the requirement of
5 U.S.C. 553(d)(3) to delay the effectiveness of this regulation,
because such a delay is unnecessary. BIS simply amends three VEU
authorizations by updating the names of two end users and revising the
``Eligible items (by ECCN)'' of another end user. These changes have
been made within the established regulatory framework of the
Authorization VEU program. Further, this rule does not abridge the
rights of the public or eliminate the public's option to export under
any of the forms of authorization set forth in the EAR. Delaying this
action's effectiveness could cause confusion with the VEU status of the
[[Page 40260]]
three companies identified in this rule due to the change of VEU names
for two of those companies, and the items that may be exported,
reexported or transferred (in-country) without a license to one of
those companies. Accordingly, it would be unnecessary and contrary to
the public interest to delay this rule's effectiveness.
No other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this final rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required under the APA or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable and no regulatory flexibility analysis has been
prepared.
List of Subjects in 15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, Part 748 of the EAR (15 CFR parts 730-774) is amended
as follows:
PART 748--[AMENDED]
0
1. The authority citation for 15 CFR 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).
0
2. Supplement No. 7 to Part 748 is amended in ``China (People's
Republic of)'' by:
0
a. Revising the entry for ``Boeing Tianjin Composites Co. Ltd.'';
0
b. Removing the entries for ``Hynix Semiconductor China Ltd.'', and
``Hynix Semiconductor (Wuxi) Ltd.''; and
0
c. Adding new entries for ``SK hynix Semiconductor (China) Ltd.'', and
``SK hynix Semiconductor (Wuxi) Ltd.'' in alphabetical order.
The revisions and additions read as follows:
Supplement No. 7 to Part 748--Authorization Validated End-User (VEU); List of Validated End-Users, Respective Items Eligible for Export, Reexport and
Transfer, and Eligible Destinations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Eligible
Country Validated end user Eligible items (by ECCN) destination Federal Register citation
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
China (People's Republic
of)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Boeing Tianjin 1B001.f, 1D001 (limited Boeing Tianjin 72 FR 59164, 10/19/07.
Composites Co. Ltd. to ``software'' Composites Co. 74 FR 19381, 4/29/09.
specially designed or Ltd., No. 4-388 77 FR 10953, 2/24/12.
modified for the Hebei Road, Tanggu 77 FR [INSERT FR PAGE NUMBER], 7/9/12.
``use'' of equipment Tianjin, China.
controlled by 1B001.f),
2B001.b.2 (limited to
machine tools with
accuracies no better
than (i.e., not less
than) 13 microns),
2D001 (limited to
``software,'' other
than that controlled by
2D002, specially
designed or modified
for the ``use'' of
equipment controlled by
2B001.b.2), and 2D002
(limited to
``software'' for
electronic devices,
even when residing in
an electronic device or
system, enabling such
devices or systems to
function as a
``numerical control''
unit, capable of
coordinating
simultaneously more
than 4 axes for
``contouring control''
controlled by
2B001.b.2).
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
SK hynix 3B001.a, 3B001.b, SK hynix 75 FR 62462, 10/12/10.
Semiconductor 3B001.c, 3B001.d, Semiconductor 77 FR [INSERT FR PAGE NUMBER], 7/9/12.
(China) Ltd. 3B001.e, and 3B001.f. (China) Ltd., Lot
K7/K7-1, Export
Processing Zone,
Wuxi, Jiangsu,
China.
[[Page 40261]]
SK hynix 3B001.a, 3B001.b, SK hynix 75 FR 62462, 10/12/10.
Semiconductor 3B001.c, 3B001.d, Semiconductor 77 FR [INSERT FR PAGE NUMBER], 7/9/12.
(Wuxi) Ltd. 3B001.e, and 3B001.f. (Wuxi) Ltd., Lot
K7/K7-1, Export
Processing Zone,
Wuxi, Jiangsu,
China.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dated: June 29, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-16724 Filed 7-6-12; 8:45 am]
BILLING CODE 3510-33-P
