Revisions to the Export Administration Regulations (EAR): Unverified List (UVL), 55664-55671 [2013-21996]
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55664
Federal Register / Vol. 78, No. 176 / Wednesday, September 11, 2013 / Proposed Rules
Regulatory Findings
We determined that this proposed AD
would not have federalism implications
under Executive Order 13132. This
proposed AD would 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 proposed regulation:
(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),
(3) Will not affect intrastate aviation
in Alaska, and
(4) 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.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
The Proposed Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA proposes to amend 14 CFR part
39 as follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):
■
The Boeing Company: Docket No. FAA–
2013–0706; Directorate Identifier 2013–
NM–067–AD.
(a) Comments Due Date
We must receive comments by October 28,
2013.
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(b) Affected ADs
None.
(c) Applicability
This AD applies to The Boeing Company
Model DC–9–10, DC–9–30, and DC–9–40
series airplanes, certificated in any category,
identified in Boeing Alert Service Bulletin
DC9–A53–144, Revision 2, dated February
23, 1984.
(d) Subject
Joint Aircraft System Component (JASC)/
Air Transport Association (ATA) of America
Code 5312, Fuselage Main Bulkhead.
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(e) Unsafe Condition
This AD was prompted by an evaluation by
the design approval holder (DAH) indicating
that the fuselage bulkhead web area is subject
to widespread fatigue damage (WFD). We are
issuing this AD to prevent fatigue cracking of
the bulkhead, which could result in reduced
structural integrity of the airplane.
(f) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(g) Modification
For airplanes on which the modification
(AD4 rivets replaced with AD5 rivets)
required by AD 85–01–02 R1, Amendment
39–5241 (51 FR 6101, dated February 20,
1988) has not been done: Before the
accumulation of 72,000 total flight cycles, or
within 18 months after the effective date of
this AD, whichever occurs later, modify the
aft pressure bulkhead by removing all
affected AD4 rivets and doing either a
fluorescent penetrant or eddy current
inspection around the rivet holes for cracks,
repairing any cracking, and installing fiveleaf doublers with AD5 rivets, in accordance
with the Accomplishment Instructions of
Boeing Alert Service Bulletin DC9–A53–144,
Revision 2, dated February 23, 1984; except
as required by paragraph (h) of this AD.
Note 1 to paragraph (g) of this AD:
Information on additional procedures for the
modification can be found in Notes 4, 5, and
6, as applicable, of paragraph 1.D.,
‘Compliance’ of Boeing Alert Service Bulletin
DC9–A53–144, Revision 2, dated February
23, 1984.
(h) Exception to Service Information
If any crack is found during any inspection
required by this AD, and Boeing Alert
Service Bulletin DC9–A53–144, Revision 2,
dated February 23, 1984, specifies to contact
Boeing for appropriate action: Before further
flight, repair using a method approved in
accordance with the procedures specified in
paragraph (j) of this AD.
(i) No Reporting Required
Sheet 1 of Service Sketch 3109, and Sheet
7 of Service Sketch 3110B of Boeing Alert
Service Bulletin DC9–A53–144, Revision 2,
dated February 23, 1984; specify reporting
the details of any cracks found; however, this
AD does not require reporting.
(j) Alternative Methods of Compliance
(AMOCs)
(1) The Manager, Los Angeles Aircraft
Certification Office (ACO), FAA, has the
authority to approve AMOCs for this AD, if
requested using the procedures found in 14
CFR 39.19. In accordance with 14 CFR 39.19,
send your request to your principal inspector
or local Flight Standards District Office, as
appropriate. If sending information directly
to the manager of the Los Angeles ACO, send
it to the attention of the person identified in
the Related Information section of this AD.
(2) Before using any approved AMOC,
notify your appropriate principal inspector,
or lacking a principal inspector, the manager
of the local flight standards district office/
certificate holding district office.
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(3) An AMOC that provides an acceptable
level of safety may be used for any repair
required by this AD if it is approved by
Structures Authorized Representative for the
Boeing Commercial Airplanes Delegation
Option Authorization Organization who has
been authorized by the Manager, Los Angeles
ACO, to make those findings. For a repair
method to be approved, the repair must meet
the certification basis of the airplane, and 14
CFR 25.571, Amendment 45, and the
approval must specifically refer to this AD.
(k) Related Information
(1) For more information about this AD,
contact Eric Schrieber, Aerospace Engineer,
Airframe Branch, ANM–120L, FAA, Los
Angeles Aircraft Certification Office, 3960
Paramount Boulevard, Lakewood, CA 90712–
4137; phone: (562) 627–5348; fax: (562) 627–
5210; email: eric.schrieber@faa.gov.
(2) For service information identified in
this AD, contact Boeing Commercial
Airplanes, Attention: Data & Services
Management, 3855 Lakewood Boulevard, MC
D800–0019, Long Beach, CA 90846–0001;
telephone 206–544–5000, extension 2; fax
206–766–5683; Internet https://
www.myboeingfleet.com. You may review
copies of the referenced service information
at the FAA, Transport Airplane Directorate,
1601 Lind Avenue SW., Renton, Washington.
For information on the availability of this
material at the FAA, call 425–227–1221.
Issued in Renton, Washington, on August
30, 2013.
Stephen P. Boyd,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 2013–22147 Filed 9–10–13; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 730, 740, 744, 756, 758,
and 762
[Docket No. 120524116–2116–01]
RIN 0694–AF70
Revisions to the Export Administration
Regulations (EAR): Unverified List
(UVL)
Bureau of Industry and
Security, Commerce.
ACTION: Proposed rule.
AGENCY:
The Bureau of Industry and
Security (BIS) proposes to amend the
Export Administration Regulations
(EAR) by: requiring exporters to file an
Automated Export System (AES) record
for all exports subject to the EAR
involving a party or parties to the
transaction who are listed on the
Unverified List (the ‘‘Unverified List’’ or
UVL); suspending the availability of
license exceptions for exports,
SUMMARY:
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reexports, and transfers (in-country)
involving a party or parties to the
transaction who are listed on the UVL;
requiring exporters, reexporters, and
transferors to obtain a UVL statement
from a party or parties to the transaction
who are listed on the UVL before
proceeding with exports, reexports, and
transfers (in-country) involving items
subject to the EAR, but where the item
does not require a license, i.e., No
License Required (NLR); publishing the
UVL in the EAR; and adding to the EAR
the procedures to request removal or
modification of a UVL entry.
These proposed changes to the UVL
enhance the U.S. Government’s ability
to verify the bona fides of parties to
exports, reexports, or transfers (incountry) of items subject to the EAR and
provide the U.S. Government increased
visibility into such exports, reexports,
and transfers involving persons whose
bona fides could not be verified.
DATES: Comments must be received by
BIS no later than October 11, 2013.
ADDRESSES: Comments on this rule may
be submitted to the Federal rulemaking
portal (www.regulations.gov). The
regulations.gov Docket ID for this rule
is: BIS–2012–0017. Comments may also
be submitted via email to
publiccomments@bis.doc.gov or on
paper to Regulatory Policy Division,
Bureau of Industry and Security, Room
2099B, U.S. Department of Commerce,
14th St. and Pennsylvania Ave. NW.,
Washington, DC 20230. Please refer to
RIN 0694–AF70 in all comments and in
the subject line of email comments.
FOR FURTHER INFORMATION CONTACT:
Kevin Kurland, Director, Office of
Enforcement Analysis, Bureau of
Industry and Security, Department of
Commerce, Phone: (202) 482–2385 or by
email at Kevin.Kurland@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
On June 14, 2002, the Bureau of
Industry and Security (‘‘BIS’’) published
a notice in the Federal Register (67 FR
40910) establishing a list of persons in
foreign countries who were parties to
past export transactions with respect to
which pre-license checks or postshipment verifications could not be
conducted for reasons outside the
control of the U.S. Government,
including lack of cooperation by the
host government authority, the end user,
or the ultimate consignee (the
‘‘Unverified List’’ or ‘‘UVL’’). That
Federal Register notice also indicated
that BIS may add to the UVL names of
persons that BIS discovers are affiliated
with a person on the UVL by virtue of
ownership, control, position of
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responsibility, or other affiliation or
connection in the conduct of trade or
business. Since that time, BIS has issued
subsequent notices that added to or
removed persons from the UVL, as
circumstances have warranted.
Currently, the UVL is published in the
Federal Register in its entirety and
updated as foreign persons are added to
or removed from that list. The UVL is
also available on the BIS Web site at
https://www.bis.doc.gov/enforcement/
unverifiedlist/unverified_parties.html.
The participation of a person listed on
the UVL in any proposed transaction
raises a ‘‘red flag’’ for purposes of the
‘‘Know Your Customer’’ guidance set
forth in Supplement No. 3 to Part 732
of the EAR. See 67 FR 40910 (June 14,
2002) and 69 FR 42562 (July 16, 2004).
Under that guidance, whenever there is
a ‘‘red flag,’’ exporters have an
affirmative duty to inquire, verify, or
otherwise satisfy themselves that the
transaction does not involve a
proliferation activity prohibited by Part
744 and does not violate other
provisions of the EAR.
On July 16, 2004 (69 FR 42652), BIS
expanded the criteria for adding persons
to the UVL to include situations in
which BIS is not able to verify the
existence or authenticity of the end
user, intermediate consignee, ultimate
consignee, or other party to an export
transaction.
On August 21, 2008 (73 FR 49311),
BIS expanded the scope of reasons to
add persons to the Entity List. That rule
amended Section 744.11 of the EAR to
provide illustrative examples of the
types of conduct that the U.S.
Government could determine are
contrary to U.S. national security or
foreign policy interests for purposes of
changes to the Entity List. One example
listed in that section is, ‘‘[p]reventing
accomplishment of an end use check
conducted by or on behalf of BIS or the
Directorate of Defense Trade Controls of
the Department of State by: precluding
access to; refusing to provide
information about; or providing false or
misleading information about parties to
the transaction or the item to be
checked.’’ That notice also included a
discussion of the apparent overlap in
criteria for adding foreign persons to the
Entity List and the Unverified List based
on a lack of cooperation with an end-use
check.
End-use checks sometimes cannot be
completed for reasons unrelated to the
cooperation of the foreign party subject
to the end-use check. In such situations,
BIS has added parties to the UVL where
BIS or federal officials acting on BIS’s
behalf have been unable to verify a
foreign person’s bona fides (i.e.,
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legitimacy and reliability relating to the
end use and end user of items subject
to the EAR), where an end-use check,
such as a pre-license check (PLC) or a
post-shipment verification (PSV),
cannot be completed satisfactorily for
such purposes for reasons outside the
U.S. Government’s control. For
example, BIS sometimes initiates enduse checks and cannot find a foreign
party at the address indicated on export
documents, and cannot locate the party
by telephone or email. Additionally, BIS
sometimes is unable to conduct end-use
checks when host government agencies
do not respond to requests to conduct
end-use checks or refuse to schedule
them in a timely manner. Under these
circumstances, there may not be a basis
to add the foreign persons at issue to the
Entity List, particularly if there is no
nexus between the foreign person’s
conduct and the failure to produce a
complete, accurate and useful check
(see § 744.11(b)(4) of the EAR (Criteria
for revising the Entity List)).
Furthermore, BIS sometimes conducts
end-use checks but cannot verify the
bona fides of a foreign party. For
example, BIS may be unable to verify
bona fides if during the conduct of an
end-use check a recipient of items
subject to the EAR is unable to produce
those items for visual inspection or
provide sufficient documentation to
confirm the disposition of those items.
The inability of foreign persons subject
to end-use checks to demonstrate their
bona fides raises concerns about the
suitability of such persons as
participants in future exports, reexports,
or transfers (in-country) and indicates a
risk that items subject to the EAR may
be diverted to prohibited end uses and/
or end users. However, BIS may have
insufficient information to establish that
such persons are involved in activities
described in Section 744.11 of the EAR,
preventing the placement of the persons
on the Entity List. In such
circumstances, those foreign persons
may be added to the Unverified List.
Reasons for This Rule
This rule proposes to eliminate
ambiguity for listing foreign persons on
the UVL and the Entity List by removing
lack of cooperation by a foreign party as
a basis for revising the UVL. Where the
U.S. Government determines that the
foreign party’s lack of cooperation
prevented the accomplishment of an
end-use check, BIS may add such
parties to the Entity List on the basis of
§ 744.11(b)(4) of the EAR.
Specifically, BIS is amending the EAR
to include the criteria for listing persons
in the UVL, including examples of
actions that could result in a person
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Federal Register / Vol. 78, No. 176 / Wednesday, September 11, 2013 / Proposed Rules
being listed on the UVL. These
amendments, consistent with past
practice, will apply to foreign persons
who are parties to an export, reexport,
and transfer (in-country) subject to the
EAR if BIS, or federal officials acting on
BIS’s behalf, cannot verify the bona
fides of such persons because an enduse check, such as a PLC or a PSV,
cannot be completed satisfactorily for
reasons outside of the U.S.
Government’s control. Examples of
actions that could result in a person
being listed on the UVL include: The
subject of the check is unable to
demonstrate the disposition of items
during an end-use check; the existence
or authenticity of the subject of an enduse check cannot be verified because,
inter alia, the subject of the check
cannot be located or contacted; or lack
of cooperation by the host government
authority.
In addition, BIS is no longer
considering affiliation with a person on
the UVL as a basis for adding foreign
persons without further substantiation
(e.g., conduct of an end-use check at the
affiliate). A determination to list a
particular person on the UVL is
premised on BIS’s inability to evaluate
the bona fides of that person by
conducting an end-use check. The fact
that another, separate person is
affiliated with a person on the UVL will
no longer be considered a criterion for
listing the affiliate. If BIS discovers a
foreign person may be affiliated with a
person listed on the UVL, BIS will
initiate an end-use check on an export,
reexport, or transfer (in-country) to
which that person was a party. That
person may be listed on the UVL if BIS
is unable to verify that person’s bona
fides through an end-use check in
accordance with the criteria described
above.
BIS is proposing these changes to the
UVL to address concerns raised by the
public in the past about how to address
a ‘‘red flag’’ identified by the U.S.
Government. Accordingly, the proposed
changes to the regulation provide
guidance on how exporters can conduct
business with a UVL person. Any
license requirements for exports,
reexports, or transfers (in-country) of
items subject to the EAR continue to
apply. For items not subject to a license
requirement, the exporter, reexporter, or
transferer (in-country) must receive
from the UVL-listed person a UVL
statement prior to the export, reexport,
or transfer (in-country), in which the
UVL-listed party certifies the end use,
end user, and country of ultimate
destination of items subject to the EAR
and consents to an end-use check by the
U.S. Government. The end-use check
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may include checks to any transaction
to which that person was a party for
items subject to the EAR exported,
reexported, or transferred (in country) in
the last five years, to enable the U.S.
Government to satisfy earlier concerns
with the UVL-listed party as well as its
concerns with the current transaction.
Proposed Changes to the EAR
BIS proposes to amend the EAR by:
(1) Requiring exporters to file an AES
record for all exports subject to the EAR
involving persons listed on the UVL; (2)
suspending the availability of license
exceptions for exports, reexports, and
transfers (in-country) involving persons
listed on the UVL; (3) requiring
exporters, reexporters and transferors
(in-country) to obtain a UVL statement
from UVL-listed persons before
proceeding with exports, reexports, and
transfers (in-country) that are not
otherwise subject to a license
requirement under the EAR involving
such persons; (4) adding the UVL to
Supplement No. 6 to Part 744; and (5)
adding to the EAR procedures to request
removal or modification of a UVL entry.
The first of these changes, requiring
the filing of an AES record for all
exports to which a person listed on the
UVL is a party, is described in
§ 748.5(d)–(f) of the EAR, and would
increase U.S. Government awareness of
transactions involving U.S.-origin items
to such persons. Under current
regulations, an AES filing is only
required if an export license is also
required or if the transaction is above a
certain value. This rule proposes an
exception to require an AES filing
regardless of value or destination if a
person involved in the transaction as
described above is listed on the UVL.
Secondly, this rule’s proposed
suspension of license exceptions for
exports, reexports, and transfers (incountry) of U.S.-origin items to persons
listed on the UVL would increase U.S.
Government insight into certain
transactions involving such persons of
items on the Commerce Control List (set
forth in Supplement No. 1 to Part 774
of the EAR) by requiring a license for
those transactions. This suspension is
also consistent with § 740.2(b) of the
EAR, which states, ‘‘all License
Exceptions are subject to revision,
suspension, or revocation, in whole or
in part, without notice.’’
Third, BIS proposes to require
exporters to obtain a signed UVL
statement from UVL-listed persons
before proceeding with any export,
reexport, or transfer (in-country)
involving such persons, when such
persons are parties to a transaction as
described in § 748.5 of the EAR, and
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when the item at issue is subject to the
EAR but does not require a license
under the EAR. The rule would require
that the statement certify the end use,
end user, and country of ultimate
destination of the items, and set forth
the person’s consent to an end-use
check by the U.S. Government. To
facilitate any future end-use checks by
the U.S. Government, the UVL-listed
person would also include its complete
contact information in the UVL
statement, including its physical
address. Such a statement would, in
effect, establish that the UVL-listed
party knows that it is required to
comply with the EAR and agrees to an
end-use check. The statement would
also provide the U.S. Government with
some assurance that the U.S.-origin item
would be delivered to an identified end
user and end use and that the
transaction will comply with the EAR.
In the absence of such compliance, the
UVL statement would assist the U.S.
Government’s ability to take
enforcement action.
BIS believes the proposed suspension
of license exceptions, which would
allow pre-shipment review by the U.S.
Government of exports, reexports, and
transfers (in-country) of certain
controlled items involving persons
listed on the UVL, coupled with the
proposed requirement for exporters to
obtain a UVL statement for exports,
reexports, and transfers (in-country)
involving such persons of items not
subject to a license requirement,
provides greater guidance on what steps
are necessary in order to undertake an
export, reexport, or transfer (in-country)
of items subject to the EAR involving a
party to the transaction who is listed on
the UVL
Specifically, when an export,
reexport, or transfer (in-country) is
otherwise eligible for a license
exception, if a party to the transaction
as described in § 748.5 of the EAR is
listed on the UVL, the use of license
exceptions is not authorized. Under
these circumstances, an exporter must
apply to BIS for a license. If an export,
reexport, or transfer (in-country)
involving a person listed on the UVL is
not subject to a license requirement
under the EAR, the possible availability
of a license exception does not arise. In
such a case, an exporter may proceed
with the export, reexport, or transfer (incountry) once the exporter obtains the
signed UVL statement proposed herein
and files an AES record in accordance
with § 758.1 of the EAR, as amended.
The signed UVL statement is not needed
for transactions in which a license is
required because BIS oversight of the
transaction resulting from the grant of
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the license renders a UVL statement
unnecessary.
Fourth, BIS proposes to add the UVL
to the EAR in Supplement No. 6 to Part
744. When adding a person to the UVL,
BIS would list the person’s name and
address, and the date on which the
person was added to the UVL by
publication in the Federal Register.
Updates to the UVL would continue to
be published in the Federal Register,
and would remain available on the BIS
Web site. The UVL also would continue
to be included in the Consolidated
Screening List, available at
www.export.gov.
Once published in the EAR, the UVL
shall contain the names and addresses
of foreign persons who are or have been
parties to a transaction, as that term is
described in § 748.5 of the EAR,
involving the export, reexport, or
transfer (in-country) of items subject to
the EAR, and whose bona fides BIS has
been unable to verify through an enduse check. Any changes to the UVL
would be published in the Federal
Register as an amendment to the UVL.
In addition to adding the UVL to
Supplement No. 6 to Part 744, BIS
proposes adding to the regulations an
overview of the UVL, the conditions it
imposes with respect to exports,
reexports, and transfers (in-country) to
listed persons, the criteria for revising
the UVL, and the procedures for
requesting removal or modification of a
UVL entry.
BIS adds a person to the UVL under
certain circumstances. For example, in
some instances, BIS may not be able to
conduct an end-use check, such as a
PLC or a PSV, at all because, among
other potential reasons, BIS was unable
to locate or contact the subject of the
check or the host government declined
to schedule the check in a timely
manner. Alternatively, BIS may not be
able to complete a satisfactory end-use
check because, inter alia, the foreign
party is unable to demonstrate its bona
fides or the disposition of the items in
question during the end-use check. In
either circumstance, BIS may determine
to add the foreign person to the UVL.
BIS removes a person listed on the
UVL using certain procedures. The
successful completion of an end-use
check, or, in the limited circumstance
where such a check cannot be
completed due to lack of host
government cooperation, a suitable
alternative process to verify the bona
fides of the foreign party at issue would
be a prerequisite for removing persons
from the UVL. One illustrative example
of alternative authentication could
involve the U.S. exporter or license
applicant visiting the foreign person
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subject to the end-use check, at that
person’s request, and providing
sufficient information to the U.S.
Government to verify the foreign
person’s bona fides and satisfy
questions relating to the end use and
end user of the items in question.
Procedures for requesting an alternative
process to verify the bona fides of a
foreign person in this circumstance are
identical to the procedures for
requesting removal of a UVL listing, set
forth in Section 744.15 of the EAR.
If BIS confirms the bona fides of the
listed person, any subsequent
determination to remove the foreign
person from the UVL would be
published in the Federal Register. Once
a foreign person is removed from the
UVL, the provisions in the EAR
regarding persons listed on the
Unverified List will no longer apply to
that person, though other provisions in
the EAR will continue to apply as
appropriate. BIS is reviewing the entries
of those parties who are currently on the
UVL and will publish its determination
of which, if any, of the current UVLlisted parties will be removed from the
UVL at the time that this rule is
published in final form. Until such time,
any parties listed on the UVL will
remain on the UVL unless separately
removed through a Federal Register
notice. BIS will subsequently regularly
review the UVL for the purpose of
identifying and implementing any
needed corrections and updates.
Lastly, this rule proposes to modify
the procedures for requesting removal of
a person listed on the UVL by adding
decisions on requests to remove or
modify a UVL entry to the list of
administrative actions that are not
subject to Part 756 appeals. This would
be accomplished through the proposed
addition of § 744.15(d) of the EAR.
Decisions regarding the removal or
modification of UVL listings would now
be made by the Deputy Assistant
Secretary for Export Enforcement, based
on a demonstration by the listed person
of its bona fides.
Proposed Amendment to Supplement
No. 1 to part 730
Due to changes to § 744.15 of the EAR,
which are described below, BIS
proposes amending Supplement No. 1
to Part 730 of the EAR to include
references to the two additional
information collections associated with
this proposed rule: (1) The UVL
statement and (2) requests to remove or
modify listings on the UVL. The
collection and retention of the UVL
statement by private parties in
connection with the export, reexport, or
transfer (in-country) to a person listed
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on the UVL of items not subject to a
license requirement under the EAR shall
be made under Office of Management
and Budget (OMB) control number
0694–0122 (‘‘Licensing Responsibilities
and Enforcement’’). The submission of
information to BIS by persons listed on
the UVL in support of an appeal for
removal a UVL listing will be made
under OMB control number 0694–0134.
Accordingly, BIS proposes to amend
Supplement No. 1 to Part 730 of the
EAR by adding a reference to proposed
§ 744.15 in connection with existing
collection number 0694–0122, and by
changing the title of existing collection
number 0694–0134 to ‘‘Procedure for
parties on the Entity List or Unverified
List to Request Removal or Modification
of their Listing’’ and adding a reference
to proposed § 744.15 in connection with
that collection number.
Proposed Amendments to § 740.2
BIS proposes adding a new paragraph
(a)(17) to the § 740.2 ‘‘Restrictions on all
License Exceptions.’’ This paragraph
would state that license exceptions may
not be used where a party to the
transaction as described in § 748.5 of the
EAR is listed on the Unverified List.
Proposed New § 744.15 and
Amendment to § 756.1
BIS proposes adding a new section to
Part 744 to set forth the new provisions
pertaining to persons listed on the UVL.
New section § 744.15 would provide an
overview of the UVL, the conditions it
imposes with respect to exports,
reexports, and transfers (in-country) to
listed persons, and the criteria for
revising the UVL. This new section
would also include the procedures for
requesting removal or modification of a
person on the UVL.
BIS also proposes to exclude appeals
for removal of Unverified List entries
from the provisions of Part 756 of the
EAR. Requests for removal instead will
be made according to the procedures set
forth in proposed § 744.15 of the EAR.
Accordingly, paragraph (a)(3) of § 756.1
of the EAR would be amended by
adding a reference to decisions on
requests to remove UVL entries made
pursuant to proposed § 744.15 of the
EAR.
Proposed New Supplement No. 6 to
Part 744
The UVL would be added to the EAR
in Supplement No. 6 to Part 744. Each
listing would be grouped by country,
and would be accompanied by the
person’s address(es) as well as the
Federal Register citation and date the
person was added to the UVL. In
addition, the UVL would include a
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citation to § 744.15, indicating that
exports, reexports, and transfers (incountry) where parties to the
transactions are listed on the Unverified
List are subject to the provisions of
§ 744.15.
Proposed Amendment to § 758.1
BIS proposes adding a new paragraph
(b)(8) of § 758.1 of the EAR, which
would state that filing an AES record is
required for all exports of items subject
to the EAR where a party to the
transaction as described in § 748.5(d)–(f)
is listed on the Unverified List,
regardless of value or destination.
Proposed Amendment to § 762.2
Paragraph (b) in § 762.2 of the EAR
contains references to parts, sections,
and supplements of the EAR which
require the retention of records or
contain recordkeeping provisions.
Proposed § 744.15 of the EAR contains
a recordkeeping requirement related to
the retention of UVL statements. Section
762.2(b)(13) of the EAR is currently
reserved. BIS proposes to modify that
paragraph to reference the UVL
statement recordkeeping requirement in
proposed § 744.15 of the EAR.
tkelley on DSK3SPTVN1PROD with PROPOSALS
Export Administration Act
Since August 21, 2001, the Export
Administration Act of 1979, as
amended, has been in lapse. However,
the President, through Executive Order
13222 of August 17, 2001, 3 CFR, 2001
Comp., p. 783 (2002), as amended by
Executive Order 13637 of March 8,
2013, 78 FR 16129 (March 13, 2013),
and as extended by the Notice of August
8, 2013, 78 FR 49107 (August 12, 2013)
has continued the EAR in effect under
the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.). BIS
continues to carry out the provisions of
the Export Administration Act, as
appropriate and to the extent permitted
by law, pursuant to Executive Order
13222 as amended by Executive Order
13637.
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 not been designated a ‘‘significant
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16:39 Sep 10, 2013
Jkt 229001
regulatory action,’’ under section 3(f) of
Executive Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is subject to a penalty
for failure to comply with, a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This regulation
involves collections previously
approved by OMB under the following
control numbers: 0694–0088, 0694–
0122, 0694–0134, and 0694–0137.
Specifically, BIS would be requesting a
revision and extension of existing
collection OMB 0694–0134 (Procedure
for parties on the Entity List to Request
Removal or Modification of their
Listing) and non-substantive changes to
OMB Control Numbers 0694–0088
(Simplified Network Application
Processing and Multipurpose
Application Form), 0694–0122
(Licensing Responsibilities and
Enforcement), and 0694–0137 (License
Exemptions and Exclusions).
This proposed rule, if published in
final form, would slightly increase
public burden in a collection of
information approved by OMB under
control number 0694–0088, which
authorizes, among other things, export
license applications. The removal of
license exceptions for listed parties on
the Unverified List would result in
increased license applications being
submitted to BIS by exporters. Total
burden hours associated with the
Paperwork Reduction Act and OMB
control number 0694–0088 are expected
to increase minimally, as the suspension
of license exceptions will only affect
transactions involving parties listed on
the Unverified List and not all export
transactions. If license exceptions are
restricted from use, this rule will
decrease public burden in a collection
of information approved by OMB under
control number 0694–0137 minimally,
as this will only affect a very small
number of individual listed parties. The
increased burden under 0694–0088
would be reciprocal to the decrease of
burden under 0694–0137, which would
result in no change of burden to the
public. This proposed rule would also
increase public burden in a collection of
information under OMB control number
0694–0122, as a result of the exchange
of UVL statements between private
parties, and under OMB control number
0694–0134 as a result of appeals from
persons listed on the UVL for removal
of their listing. The total increase in
burden hours associated with both of
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these collections is expected to be
minimal, as they involve a limited
number of persons listed on the UVL.
3. This proposed rule does not
contain policies with Federalism
implications as that term is defined in
Executive Order 13132.
4. The Chief Counsel for Regulation of
the Department of Commerce has
certified to the Chief Counsel for
Advocacy of the Small Business
Administration that this proposed rule,
if adopted in final form, would not have
a significant economic impact on a
substantial number of small entities.
Number of Small Entities
Currently, BIS does not collect data
on the size of entities that apply for and
are issued export licenses. Although BIS
is unable to estimate the exact number
of small entities that would be impacted
by this rule, it acknowledges that this
rule would impact some unknown
number. This rule would affect
exporters and freight forwarders, with
obligations to apply for export licenses,
obtain and retain UVL statements, and/
or file AES records in connection with
exports, reexports, or transfers (incountry) in which a person listed on the
UVL is a party to the transaction. These
requirements would apply to all entities
proceeding with such transactions,
regardless of size.
Conclusion
BIS is unable to determine whether
there are a substantial number of small
entities affected by this rule. However,
this rule is not expected to affect a
disproportionate number of small
entities because it is directed at a
limited number of foreign persons and
will impact all export transactions to
these persons, regardless of whether the
exports are made or intended to be
made by small, medium, or large
entities. BIS has administered the UVL
based on listing criteria similar to those
proposed in this rule since 2002. This
rule would impact transactions
involving persons listed on the UVL,
which currently has 36 persons listed.
Due to the limited number of persons
expected to be maintained on the UVL,
BIS estimates that the number of
transactions involving these persons
represents only a small fraction of the
total number of transactions recorded in
AES. BIS estimates that regulated
entities would incur minimal economic
burdens on transactions involving UVL
persons as a result of this rule because
there are few transactions involving
such persons and for those transactions
where they are involved, there is no
monetary fee to apply for a BIS license
or file a record in AES. Moreover,
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obtaining a signed UVL statement from
UVL persons for items not subject to a
license requirement will result in
minimal burden to U.S. exporters, as the
statement can simply be copied from the
EAR and forwarded to the UVL person
for review and signature. The
maintenance of any such UVL statement
also will have minimal burden on U.S.
exporters as the EAR already has similar
recordkeeping requirements under
Section 762.2 of the EAR. As a result,
the requirements proposed by this rule
would amount to very little economic
burden.
For the reasons above, the Chief
Counsel for Regulation certified that this
proposed rule would not have a
significant economic impact on a
substantial number of small entities.
List of Subjects
15 CFR Part 730
Administrative practice and
procedure, Advisory committees,
Exports, Reporting and recordkeeping
requirements, Strategic and critical
materials
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
15 CFR Part 756
28205, 3 CFR, 1994 Comp., p. 899; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 12947, 60 FR 5079, 3 CFR, 1995
Comp., p. 356; E.O. 12981, 60 FR 62981, 3
CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR
54079, 3 CFR, 1996 Comp., p. 219; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998
Comp., p. 208; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR
49079, 3 CFR, 2001 Comp., p. 786; E.O.
13338, 69 FR 26751, 3 CFR, 2004 Comp., p
168; Notice of May 9, 2012, 77 FR 27559
(May 10, 2012); Notice of August 15, 2012,
77 FR 49699 (August 16, 2012); Notice of
September 11, 2012, 77 FR 56519
(September, 12, 2012) ; Notice of November
1, 2012, 77 FR 66513 (November 5, 2012);
Notice of January 17, 2013, 78 FR 4303
(January 22, 2013).
2. Supplement No. 1 to part 730 is
amended by:
■ a. Removing the phrase ‘‘Part 758, and
§ 748.4’’ and adding in its place
‘‘§§ 744.15(b) and 748.4 and Part 758’’
in the ‘‘Reference in the EAR’’ column
of 0694–0122 row;
■ b. Removing the Title ‘‘Procedure for
parties on the Entity List to Request
Removal or Modification of their
Listing’’ and adding in its place
‘‘Procedure for parties on the Entity List
or the Unverified List to Request
Removal or Modification of their
Listing’’ in the Title Column of the
0694–0134 row; and
■ c. Removing the reference ‘‘§ 744.16’’
and adding in its place ‘‘§§ 744.15 and
744.16’’ in the Reference in the EAR
column of the 0694–0134 row.
■
PART 740—[AMENDED]
Appeals.
3. The authority citation for 15 CFR
Part 740 continues to read as follows:
■
15 CFR Part 758
Export Clearance Requirements.
15 CFR Part 762
Recordkeeping.
Accordingly, 15 CFR Parts 730, 740,
744, 756, 758, and 762 of the Export
Administration Regulations are
proposed to be amended 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 15, 2012, 77
FR 49699 (August 16, 2012).
4. Section 740.2 is amended by adding
paragraph (a)(17) to read as follows:
■
PART 730—[AMENDED]
1. The authority citation for 15 CFR
part 730 continues to read as follows:
§ 740.2 Restrictions on all License
Exceptions.
(a) * * *
(17) A party to the transaction, as
described in § 748.5 of the EAR, is listed
on the Unverified List in Supplement
No. 6 to Part 744, see § 744.15 of the
EAR.
*
*
*
*
*
tkelley on DSK3SPTVN1PROD with PROPOSALS
■
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. 2151 note;
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. 11912, 41 FR 15825, 3 CFR,
1976 Comp., p. 114; E.O. 12002, 42 FR 35623,
3 CFR, 1977 Comp., p. 133; E.O. 12058, 43
FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
12214, 45 FR 29783, 3 CFR, 1980 Comp., p.
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993
Comp., p. 608; E.O. 12854, 58 FR 36587, 3
CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR
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16:39 Sep 10, 2013
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PART 744—[AMENDED]
5. The authority citation for 15 CFR
Part 744 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. 3201 et seq.;
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
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55669
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
356; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13224, 66 FR 49079, 3 CFR, 2001 Comp., p.
786; Notice of August 15, 2012, 77 FR 49699
(August 16, 2012); Notice of September 11,
2012, 77 FR 56519 (September, 12, 2012) ;
Notice of November 1, 2012, 77 FR 66513
(November 5, 2012); Notice of January 17,
2013, 78 FR 4303 (January 22, 2013).
6. Part 744 is amended by adding
§ 744.15 to read as follows:
■
§ 744.15 Restrictions on Exports,
Reexports and Transfers (in-country) to
Persons Listed on the Unverified List.
(a) General requirement. In addition
to the requirements set forth elsewhere
in the EAR, exports, reexports, or
transfers (in-country) of item(s) subject
to the EAR involving parties to the
transaction who are listed on the
Unverified List may be made only in
accordance with paragraph (b) of this
section. The names and addresses of
foreign persons subject to end-user
controls based on the criteria described
in paragraph (c) of this section are
identified in the Unverified List found
in Supplement No. 6 to this part.
Requirements found elsewhere in the
EAR also apply, including but not
limited to any license requirements, the
record filing requirements pursuant to
§ 758.1(b)(8), and the restrictions on
license exceptions described in
§ 740.2(a)(17).
(b) UVL Statement. Before proceeding
with any export, reexport, or transfer
(in-country) subject to the EAR that is
not subject to a license requirement,
involving a person listed on the
Unverified List as a party described in
§ 748.5 of the EAR, an exporter,
reexporter, or transferor (in-country)
must obtain a UVL statement from such
person, according to the provisions set
forth in this section. The statement must
be retained in accordance with Part 762
of the EAR.
(1) One UVL statement may be used
for multiple shipments of the same
items between the same parties, so long
as the party names, the description(s) of
the items and the ECCNs are correct. If
one UVL statement is used for multiple
shipments, the exporter, reexporter, and
transferor (in-country) must maintain a
log or other record that identifies each
shipment made pursuant to this section
and the specific UVL statement that is
associated with each shipment. The log
or record must be retained in
accordance with Part 762 of the EAR.
(2) The UVL statement must be in
writing, signed by an individual of
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sufficient authority to legally bind the
UVL party, and state the following:
(i) Name of UVL party; complete
physical address (simply listing a post
office is insufficient); telephone
number; fax number; email address;
Web site (if available); and name of
individual signing the UVL statement.
(ii) Agrees not to use the item(s) for
any use prohibited by the United States
Export Administration Regulations
(EAR), 15 CFR Parts 730–772, and
agrees not to reexport or transfer (incountry) the item(s) to any destination,
use or user prohibited by the EAR.
(iii) Declares that the end use, end
user, and country of ultimate
destination of the item(s) subject to the
EAR are as follows: [INSERT END USE,
END USER, AND COUNTRY OF
ULTIMATE DESTINATION].
(iv) Agrees to cooperate with end-use
checks, including a Pre-License Check
or a Post-Shipment Verification,
conducted by or on behalf of the Bureau
of Industry and Security, U.S.
Department of Commerce, for any item
subject to the EAR in transactions to
which they were a party in the last five
years. This cooperation includes
facilitating the timely conduct of the
check and providing full and accurate
information concerning the disposition
of items subject to the EAR.
(v) Agrees to provide copies of this
document and all other export, reexport
or transfer (in-country) records required
to be retained in Part 762 of the EAR.
(vi) Certifies that the individual
signing the UVL Statement has
sufficient authority to legally bind the
party.
(c) Criteria for revising the Unverified
List. (1) Foreign persons who are parties
to an export, reexport, and transfer (incountry) subject to the EAR may be
added to the Unverified List if BIS or
federal officials acting on BIS’s behalf
cannot verify the bona fides (i.e.,
legitimacy and reliability relating to the
end use and end user of items subject
to the EAR) of such persons because an
end-use check, such as a pre-license
check (PLC) or a post-shipment
verification (PSV), cannot be completed
satisfactorily for reasons outside of the
U.S. Government’s control. The
examples in paragraphs (c)(1)(i) through
(iii) of this section provide an
illustrative list of those circumstances.
(i) During the conduct of an end-use
check, the subject of the check is unable
to demonstrate the disposition of items
subject to the EAR.
(ii) The existence or authenticity of
the subject of an end-use check cannot
be verified (e.g., the subject of the check
cannot be located or contacted).
(iii) Lack of cooperation by the host
government authority prevents an enduse check from being conducted.
(2) BIS may remove a person from the
Unverified List when BIS is able to
verify the bona fides of the listed person
as an end user, consignee, or other party
to exports, reexports, or transfers (incountry) involving items subject to the
EAR by completing a PLC or PSV. In the
limited circumstance involving a PLC or
PSV that cannot be completed due to
lack of host government cooperation, an
alternative bona fides verification
process may be determined by BIS to be
sufficient. Such a determination is
separate from those made by BIS
pursuant to § 744.11(b) of the EAR, and
should be requested through paragraph
(d) of this section.
(d) Procedure for requesting removal
of a person on the Unverified List. Any
person listed on the Unverified List may
request that its listing be amended or
removed.
(1) All such requests, including
reasons therefor and information that
would verify the bona fides, i.e.,
legitimacy and reliability of the person
listed on the Unverified List as an end
user, consignee or other party to
exports, reexports, and transfers (incountry) of items subject to the EAR,
must be in writing and sent to: Director,
Office of Enforcement Analysis, Bureau
of Industry and Security, U.S.
Department of Commerce, 14th Street
and Pennsylvania Avenue NW., Room
4065, Washington, DC 20230, via fax to
(202) 482–0971, or by email to [insert
email address].
(2) The Deputy Assistant Secretary for
Export Enforcement will review such
requests and will convey the decision
on the request to the requester in
writing based on an assessment of the
listed person’s bona fides as a party to
exports, reexports, and transfers (incountry) subject to the EAR. That
decision will be the final agency action
on the request.
■ 7. Part 744 is amended by adding
Supplement No. 6 to read as follows:
Country
Listed person and address
Federal Register citation and date of
publication
Reserved ...........................................................
Reserved ..........................................................
Reserved.
PART 756—[AMENDED]
8. The authority citation for 15 CFR
Part 756 continues to read as follows:
Unverified List entry made pursuant to
§ 744.15 of the EAR.
PART 758—[AMENDED]
(b) * * *
(8) For all exports of items subject to
the EAR where parties to the
transaction, as described in § 748.5(d)–
(f) of the EAR, are listed on the
Unverified List (Supplement 6 to Part
744 of the EAR), regardless of value or
destination.
■
Authority: 50 U.S.C. app 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
9. Section 756.1 is amended by
revising paragraph (a)(3) to read as
follows:
tkelley on DSK3SPTVN1PROD with PROPOSALS
■
§ 756.1
(a) * * *
(3) A decision on a request to remove
or modify an Entity List entry made
pursuant to § 744.16 of the EAR or a
decision on a request to remove an
16:39 Sep 10, 2013
Jkt 229001
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
Exports, reexports, and transfers (incountry) involving parties to the
transaction who are listed in this
supplement are subject to the
restrictions outlined in § 744.15 of the
EAR.
PART 762—[AMENDED]
11. Section 758.1 is amended by
adding paragraph (b)(8) to read as
follows:
■
§ 758.1 The Shipper’s Export Declaration
(SED) or Automated Export System (AES)
record.
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
■
Introduction.
VerDate Mar<15>2010
10. The authority citation for 15 CFR
Part 758 continues to read as follows:
■
Supplement No. 6 to Part 744—
Unverified List
*
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*
*
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*
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*
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12. The authority citation for 15 CFR
Part 762 continues to read as follows:
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13. Section 762.2 is amended by
revising paragraph (b)(13) to read as
follows:
■
§ 762.2
Records to be retained.
*
*
*
*
*
(b) * * *
(13) § 744.15(b), UVL statement as
well as any logs or records created for
multiple shipments;
*
*
*
*
*
Dated: September 3, 2013.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2013–21996 Filed 9–10–13; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Part 1140
[Docket No. FDA–2013–N–0521]
Menthol in Cigarettes, Tobacco
Products; Request for Comments;
Extension of Comment Period
AGENCY:
Food and Drug Administration,
HHS.
Advance notice of proposed
rulemaking; extension of comment
period.
ACTION:
The Food and Drug
Administration (FDA) is extending the
comment period for the advance notice
of proposed rulemaking (ANPRM) that
appeared in the Federal Register of July
24, 2013 (78 FR 44484). In the ANPRM,
FDA requested comments, including
comments on FDA’s preliminary
evaluation, and data, research, or other
information that may inform regulatory
actions that FDA might take with
respect to menthol in cigarettes. The
Agency is taking this action in response
to requests for an extension to allow
interested persons additional time to
submit comments.
DATES: FDA is extending the comment
period on the ANPRM. Submit either
electronic or written comments by
November 22, 2013.
ADDRESSES: You may submit comments,
identified by Docket No. FDA–2013–N–
0521, by any of the following methods:
tkelley on DSK3SPTVN1PROD with PROPOSALS
SUMMARY:
Electronic Submissions
Submit electronic comments in the
following way:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
VerDate Mar<15>2010
16:39 Sep 10, 2013
Jkt 229001
Written Submissions
Submit written submissions in the
following ways:
• Mail/Hand delivery/Courier (for
paper or CD–ROM submissions):
Division of Dockets Management (HFA–
305), Food and Drug Administration,
5630 Fishers Lane, Rm. 1061, Rockville,
MD 20852.
Instructions: All submissions received
must include the Agency name and
Docket No. FDA–2013–N–0521 for this
rulemaking. All comments received may
be posted without change to https://
www.regulations.gov, including any
personal information provided. For
additional information on submitting
comments, see the ‘‘Comments’’ heading
of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov and insert the
docket number, found in brackets in the
heading of this document, into the
‘‘Search’’ box and follow the prompts
and/or go to the Division of Dockets
Management, 5630 Fishers Lane, Rm.
1061, Rockville, MD 20852.
FOR FURTHER INFORMATION CONTACT:
Lauren Berkowitz or Annette L.
Marthaler, Center for Tobacco Products,
Food and Drug Administration, 9200
Corporate Blvd., Rockville, MD 20850–
3229, 877–287–1373, CTPRegulations@
fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
I. Background
In the Federal Register of July 24,
2013 (78 FR 44484), FDA published an
ANPRM with a 60-day comment period
to request comments on FDA’s
preliminary evaluation, and data,
research, or other information that may
inform regulatory actions FDA might
take with respect to menthol in
cigarettes.
The Agency has received comments
requesting a 60-day extension of the
comment period for the ANPRM. These
comments convey concern that the
current 60-day comment period does
not allow sufficient time to develop
meaningful or thoughtful responses to
questions raised in the ANPRM. FDA
has also received comments opposing
an extension of the current comment
period on the grounds that ample time
has been given to comment on the
issues raised in the ANPRM.
FDA has considered the requests and
is extending the comment period for the
ANPRM for 60 days, until November 22,
2013. The Agency believes that a 60-day
extension allows adequate time for
interested persons to submit comments
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
55671
without significantly delaying any
potential regulatory action on these
important issues.
II. Request for Comments
Interested persons may submit either
electronic comments regarding this
document to https://www.regulations.gov
or written comments to the Division of
Dockets Management (see ADDRESSES). It
is only necessary to send one set of
comments. Identify comments with the
docket number found in brackets in the
heading of this document. Received
comments may be seen in the Division
of Dockets Management between 9 a.m.
and 4 p.m., Monday through Friday, and
will be posted to the docket at https://
www.regulations.gov.
Dated: September 4, 2013.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2013–22015 Filed 9–10–13; 8:45 am]
BILLING CODE 4160–01–P
DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 17
RIN 2900–AO78
Hospital Care and Medical Services for
Camp Lejeune Veterans
Department of Veterans Affairs.
Proposed rule.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA) proposes to amend its
regulations to implement a statutory
mandate that VA provide health care to
certain veterans who served at Camp
Lejeune, North Carolina, for at least 30
days during the period beginning on
January 1, 1957, and ending on
December 31, 1987. The law requires
VA to furnish hospital care and medical
services for these veterans for certain
illnesses and conditions that may be
attributed to exposure to toxins in the
water system at Camp Lejeune. This
proposed rule does not implement the
statutory provision requiring VA to
provide health care to these veterans’
family members; regulations applicable
to such family members are currently in
development and will be promulgated
through a separate notice.
DATES: Comments must be received on
or before October 11, 2013.
ADDRESSES: Written comments may be
submitted through https://
www.regulations.gov; by mail or handdelivery to Director, Regulations
Management (02REG), Department of
Veterans Affairs, 810 Vermont Avenue
NW., Room 1068, Washington, DC
SUMMARY:
E:\FR\FM\11SEP1.SGM
11SEP1
Agencies
[Federal Register Volume 78, Number 176 (Wednesday, September 11, 2013)]
[Proposed Rules]
[Pages 55664-55671]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21996]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 730, 740, 744, 756, 758, and 762
[Docket No. 120524116-2116-01]
RIN 0694-AF70
Revisions to the Export Administration Regulations (EAR):
Unverified List (UVL)
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security (BIS) proposes to amend
the Export Administration Regulations (EAR) by: requiring exporters to
file an Automated Export System (AES) record for all exports subject to
the EAR involving a party or parties to the transaction who are listed
on the Unverified List (the ``Unverified List'' or UVL); suspending the
availability of license exceptions for exports,
[[Page 55665]]
reexports, and transfers (in-country) involving a party or parties to
the transaction who are listed on the UVL; requiring exporters,
reexporters, and transferors to obtain a UVL statement from a party or
parties to the transaction who are listed on the UVL before proceeding
with exports, reexports, and transfers (in-country) involving items
subject to the EAR, but where the item does not require a license,
i.e., No License Required (NLR); publishing the UVL in the EAR; and
adding to the EAR the procedures to request removal or modification of
a UVL entry.
These proposed changes to the UVL enhance the U.S. Government's
ability to verify the bona fides of parties to exports, reexports, or
transfers (in-country) of items subject to the EAR and provide the U.S.
Government increased visibility into such exports, reexports, and
transfers involving persons whose bona fides could not be verified.
DATES: Comments must be received by BIS no later than October 11, 2013.
ADDRESSES: Comments on this rule may be submitted to the Federal
rulemaking portal (www.regulations.gov). The regulations.gov Docket ID
for this rule is: BIS-2012-0017. Comments may also be submitted via
email to publiccomments@bis.doc.gov or on paper to Regulatory Policy
Division, Bureau of Industry and Security, Room 2099B, U.S. Department
of Commerce, 14th St. and Pennsylvania Ave. NW., Washington, DC 20230.
Please refer to RIN 0694-AF70 in all comments and in the subject line
of email comments.
FOR FURTHER INFORMATION CONTACT: Kevin Kurland, Director, Office of
Enforcement Analysis, Bureau of Industry and Security, Department of
Commerce, Phone: (202) 482-2385 or by email at
Kevin.Kurland@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
On June 14, 2002, the Bureau of Industry and Security (``BIS'')
published a notice in the Federal Register (67 FR 40910) establishing a
list of persons in foreign countries who were parties to past export
transactions with respect to which pre-license checks or post-shipment
verifications could not be conducted for reasons outside the control of
the U.S. Government, including lack of cooperation by the host
government authority, the end user, or the ultimate consignee (the
``Unverified List'' or ``UVL''). That Federal Register notice also
indicated that BIS may add to the UVL names of persons that BIS
discovers are affiliated with a person on the UVL by virtue of
ownership, control, position of responsibility, or other affiliation or
connection in the conduct of trade or business. Since that time, BIS
has issued subsequent notices that added to or removed persons from the
UVL, as circumstances have warranted. Currently, the UVL is published
in the Federal Register in its entirety and updated as foreign persons
are added to or removed from that list. The UVL is also available on
the BIS Web site at https://www.bis.doc.gov/enforcement/unverifiedlist/unverified_parties.html.
The participation of a person listed on the UVL in any proposed
transaction raises a ``red flag'' for purposes of the ``Know Your
Customer'' guidance set forth in Supplement No. 3 to Part 732 of the
EAR. See 67 FR 40910 (June 14, 2002) and 69 FR 42562 (July 16, 2004).
Under that guidance, whenever there is a ``red flag,'' exporters have
an affirmative duty to inquire, verify, or otherwise satisfy themselves
that the transaction does not involve a proliferation activity
prohibited by Part 744 and does not violate other provisions of the
EAR.
On July 16, 2004 (69 FR 42652), BIS expanded the criteria for
adding persons to the UVL to include situations in which BIS is not
able to verify the existence or authenticity of the end user,
intermediate consignee, ultimate consignee, or other party to an export
transaction.
On August 21, 2008 (73 FR 49311), BIS expanded the scope of reasons
to add persons to the Entity List. That rule amended Section 744.11 of
the EAR to provide illustrative examples of the types of conduct that
the U.S. Government could determine are contrary to U.S. national
security or foreign policy interests for purposes of changes to the
Entity List. One example listed in that section is, ``[p]reventing
accomplishment of an end use check conducted by or on behalf of BIS or
the Directorate of Defense Trade Controls of the Department of State
by: precluding access to; refusing to provide information about; or
providing false or misleading information about parties to the
transaction or the item to be checked.'' That notice also included a
discussion of the apparent overlap in criteria for adding foreign
persons to the Entity List and the Unverified List based on a lack of
cooperation with an end-use check.
End-use checks sometimes cannot be completed for reasons unrelated
to the cooperation of the foreign party subject to the end-use check.
In such situations, BIS has added parties to the UVL where BIS or
federal officials acting on BIS's behalf have been unable to verify a
foreign person's bona fides (i.e., legitimacy and reliability relating
to the end use and end user of items subject to the EAR), where an end-
use check, such as a pre-license check (PLC) or a post-shipment
verification (PSV), cannot be completed satisfactorily for such
purposes for reasons outside the U.S. Government's control. For
example, BIS sometimes initiates end-use checks and cannot find a
foreign party at the address indicated on export documents, and cannot
locate the party by telephone or email. Additionally, BIS sometimes is
unable to conduct end-use checks when host government agencies do not
respond to requests to conduct end-use checks or refuse to schedule
them in a timely manner. Under these circumstances, there may not be a
basis to add the foreign persons at issue to the Entity List,
particularly if there is no nexus between the foreign person's conduct
and the failure to produce a complete, accurate and useful check (see
Sec. 744.11(b)(4) of the EAR (Criteria for revising the Entity List)).
Furthermore, BIS sometimes conducts end-use checks but cannot
verify the bona fides of a foreign party. For example, BIS may be
unable to verify bona fides if during the conduct of an end-use check a
recipient of items subject to the EAR is unable to produce those items
for visual inspection or provide sufficient documentation to confirm
the disposition of those items. The inability of foreign persons
subject to end-use checks to demonstrate their bona fides raises
concerns about the suitability of such persons as participants in
future exports, reexports, or transfers (in-country) and indicates a
risk that items subject to the EAR may be diverted to prohibited end
uses and/or end users. However, BIS may have insufficient information
to establish that such persons are involved in activities described in
Section 744.11 of the EAR, preventing the placement of the persons on
the Entity List. In such circumstances, those foreign persons may be
added to the Unverified List.
Reasons for This Rule
This rule proposes to eliminate ambiguity for listing foreign
persons on the UVL and the Entity List by removing lack of cooperation
by a foreign party as a basis for revising the UVL. Where the U.S.
Government determines that the foreign party's lack of cooperation
prevented the accomplishment of an end-use check, BIS may add such
parties to the Entity List on the basis of Sec. 744.11(b)(4) of the
EAR.
Specifically, BIS is amending the EAR to include the criteria for
listing persons in the UVL, including examples of actions that could
result in a person
[[Page 55666]]
being listed on the UVL. These amendments, consistent with past
practice, will apply to foreign persons who are parties to an export,
reexport, and transfer (in-country) subject to the EAR if BIS, or
federal officials acting on BIS's behalf, cannot verify the bona fides
of such persons because an end-use check, such as a PLC or a PSV,
cannot be completed satisfactorily for reasons outside of the U.S.
Government's control. Examples of actions that could result in a person
being listed on the UVL include: The subject of the check is unable to
demonstrate the disposition of items during an end-use check; the
existence or authenticity of the subject of an end-use check cannot be
verified because, inter alia, the subject of the check cannot be
located or contacted; or lack of cooperation by the host government
authority.
In addition, BIS is no longer considering affiliation with a person
on the UVL as a basis for adding foreign persons without further
substantiation (e.g., conduct of an end-use check at the affiliate). A
determination to list a particular person on the UVL is premised on
BIS's inability to evaluate the bona fides of that person by conducting
an end-use check. The fact that another, separate person is affiliated
with a person on the UVL will no longer be considered a criterion for
listing the affiliate. If BIS discovers a foreign person may be
affiliated with a person listed on the UVL, BIS will initiate an end-
use check on an export, reexport, or transfer (in-country) to which
that person was a party. That person may be listed on the UVL if BIS is
unable to verify that person's bona fides through an end-use check in
accordance with the criteria described above.
BIS is proposing these changes to the UVL to address concerns
raised by the public in the past about how to address a ``red flag''
identified by the U.S. Government. Accordingly, the proposed changes to
the regulation provide guidance on how exporters can conduct business
with a UVL person. Any license requirements for exports, reexports, or
transfers (in-country) of items subject to the EAR continue to apply.
For items not subject to a license requirement, the exporter,
reexporter, or transferer (in-country) must receive from the UVL-listed
person a UVL statement prior to the export, reexport, or transfer (in-
country), in which the UVL-listed party certifies the end use, end
user, and country of ultimate destination of items subject to the EAR
and consents to an end-use check by the U.S. Government. The end-use
check may include checks to any transaction to which that person was a
party for items subject to the EAR exported, reexported, or transferred
(in country) in the last five years, to enable the U.S. Government to
satisfy earlier concerns with the UVL-listed party as well as its
concerns with the current transaction.
Proposed Changes to the EAR
BIS proposes to amend the EAR by: (1) Requiring exporters to file
an AES record for all exports subject to the EAR involving persons
listed on the UVL; (2) suspending the availability of license
exceptions for exports, reexports, and transfers (in-country) involving
persons listed on the UVL; (3) requiring exporters, reexporters and
transferors (in-country) to obtain a UVL statement from UVL-listed
persons before proceeding with exports, reexports, and transfers (in-
country) that are not otherwise subject to a license requirement under
the EAR involving such persons; (4) adding the UVL to Supplement No. 6
to Part 744; and (5) adding to the EAR procedures to request removal or
modification of a UVL entry.
The first of these changes, requiring the filing of an AES record
for all exports to which a person listed on the UVL is a party, is
described in Sec. 748.5(d)-(f) of the EAR, and would increase U.S.
Government awareness of transactions involving U.S.-origin items to
such persons. Under current regulations, an AES filing is only required
if an export license is also required or if the transaction is above a
certain value. This rule proposes an exception to require an AES filing
regardless of value or destination if a person involved in the
transaction as described above is listed on the UVL.
Secondly, this rule's proposed suspension of license exceptions for
exports, reexports, and transfers (in-country) of U.S.-origin items to
persons listed on the UVL would increase U.S. Government insight into
certain transactions involving such persons of items on the Commerce
Control List (set forth in Supplement No. 1 to Part 774 of the EAR) by
requiring a license for those transactions. This suspension is also
consistent with Sec. 740.2(b) of the EAR, which states, ``all License
Exceptions are subject to revision, suspension, or revocation, in whole
or in part, without notice.''
Third, BIS proposes to require exporters to obtain a signed UVL
statement from UVL-listed persons before proceeding with any export,
reexport, or transfer (in-country) involving such persons, when such
persons are parties to a transaction as described in Sec. 748.5 of the
EAR, and when the item at issue is subject to the EAR but does not
require a license under the EAR. The rule would require that the
statement certify the end use, end user, and country of ultimate
destination of the items, and set forth the person's consent to an end-
use check by the U.S. Government. To facilitate any future end-use
checks by the U.S. Government, the UVL-listed person would also include
its complete contact information in the UVL statement, including its
physical address. Such a statement would, in effect, establish that the
UVL-listed party knows that it is required to comply with the EAR and
agrees to an end-use check. The statement would also provide the U.S.
Government with some assurance that the U.S.-origin item would be
delivered to an identified end user and end use and that the
transaction will comply with the EAR. In the absence of such
compliance, the UVL statement would assist the U.S. Government's
ability to take enforcement action.
BIS believes the proposed suspension of license exceptions, which
would allow pre-shipment review by the U.S. Government of exports,
reexports, and transfers (in-country) of certain controlled items
involving persons listed on the UVL, coupled with the proposed
requirement for exporters to obtain a UVL statement for exports,
reexports, and transfers (in-country) involving such persons of items
not subject to a license requirement, provides greater guidance on what
steps are necessary in order to undertake an export, reexport, or
transfer (in-country) of items subject to the EAR involving a party to
the transaction who is listed on the UVL
Specifically, when an export, reexport, or transfer (in-country) is
otherwise eligible for a license exception, if a party to the
transaction as described in Sec. 748.5 of the EAR is listed on the
UVL, the use of license exceptions is not authorized. Under these
circumstances, an exporter must apply to BIS for a license. If an
export, reexport, or transfer (in-country) involving a person listed on
the UVL is not subject to a license requirement under the EAR, the
possible availability of a license exception does not arise. In such a
case, an exporter may proceed with the export, reexport, or transfer
(in-country) once the exporter obtains the signed UVL statement
proposed herein and files an AES record in accordance with Sec. 758.1
of the EAR, as amended. The signed UVL statement is not needed for
transactions in which a license is required because BIS oversight of
the transaction resulting from the grant of
[[Page 55667]]
the license renders a UVL statement unnecessary.
Fourth, BIS proposes to add the UVL to the EAR in Supplement No. 6
to Part 744. When adding a person to the UVL, BIS would list the
person's name and address, and the date on which the person was added
to the UVL by publication in the Federal Register. Updates to the UVL
would continue to be published in the Federal Register, and would
remain available on the BIS Web site. The UVL also would continue to be
included in the Consolidated Screening List, available at
www.export.gov.
Once published in the EAR, the UVL shall contain the names and
addresses of foreign persons who are or have been parties to a
transaction, as that term is described in Sec. 748.5 of the EAR,
involving the export, reexport, or transfer (in-country) of items
subject to the EAR, and whose bona fides BIS has been unable to verify
through an end-use check. Any changes to the UVL would be published in
the Federal Register as an amendment to the UVL.
In addition to adding the UVL to Supplement No. 6 to Part 744, BIS
proposes adding to the regulations an overview of the UVL, the
conditions it imposes with respect to exports, reexports, and transfers
(in-country) to listed persons, the criteria for revising the UVL, and
the procedures for requesting removal or modification of a UVL entry.
BIS adds a person to the UVL under certain circumstances. For
example, in some instances, BIS may not be able to conduct an end-use
check, such as a PLC or a PSV, at all because, among other potential
reasons, BIS was unable to locate or contact the subject of the check
or the host government declined to schedule the check in a timely
manner. Alternatively, BIS may not be able to complete a satisfactory
end-use check because, inter alia, the foreign party is unable to
demonstrate its bona fides or the disposition of the items in question
during the end-use check. In either circumstance, BIS may determine to
add the foreign person to the UVL.
BIS removes a person listed on the UVL using certain procedures.
The successful completion of an end-use check, or, in the limited
circumstance where such a check cannot be completed due to lack of host
government cooperation, a suitable alternative process to verify the
bona fides of the foreign party at issue would be a prerequisite for
removing persons from the UVL. One illustrative example of alternative
authentication could involve the U.S. exporter or license applicant
visiting the foreign person subject to the end-use check, at that
person's request, and providing sufficient information to the U.S.
Government to verify the foreign person's bona fides and satisfy
questions relating to the end use and end user of the items in
question. Procedures for requesting an alternative process to verify
the bona fides of a foreign person in this circumstance are identical
to the procedures for requesting removal of a UVL listing, set forth in
Section 744.15 of the EAR.
If BIS confirms the bona fides of the listed person, any subsequent
determination to remove the foreign person from the UVL would be
published in the Federal Register. Once a foreign person is removed
from the UVL, the provisions in the EAR regarding persons listed on the
Unverified List will no longer apply to that person, though other
provisions in the EAR will continue to apply as appropriate. BIS is
reviewing the entries of those parties who are currently on the UVL and
will publish its determination of which, if any, of the current UVL-
listed parties will be removed from the UVL at the time that this rule
is published in final form. Until such time, any parties listed on the
UVL will remain on the UVL unless separately removed through a Federal
Register notice. BIS will subsequently regularly review the UVL for the
purpose of identifying and implementing any needed corrections and
updates.
Lastly, this rule proposes to modify the procedures for requesting
removal of a person listed on the UVL by adding decisions on requests
to remove or modify a UVL entry to the list of administrative actions
that are not subject to Part 756 appeals. This would be accomplished
through the proposed addition of Sec. 744.15(d) of the EAR. Decisions
regarding the removal or modification of UVL listings would now be made
by the Deputy Assistant Secretary for Export Enforcement, based on a
demonstration by the listed person of its bona fides.
Proposed Amendment to Supplement No. 1 to part 730
Due to changes to Sec. 744.15 of the EAR, which are described
below, BIS proposes amending Supplement No. 1 to Part 730 of the EAR to
include references to the two additional information collections
associated with this proposed rule: (1) The UVL statement and (2)
requests to remove or modify listings on the UVL. The collection and
retention of the UVL statement by private parties in connection with
the export, reexport, or transfer (in-country) to a person listed on
the UVL of items not subject to a license requirement under the EAR
shall be made under Office of Management and Budget (OMB) control
number 0694-0122 (``Licensing Responsibilities and Enforcement''). The
submission of information to BIS by persons listed on the UVL in
support of an appeal for removal a UVL listing will be made under OMB
control number 0694-0134. Accordingly, BIS proposes to amend Supplement
No. 1 to Part 730 of the EAR by adding a reference to proposed Sec.
744.15 in connection with existing collection number 0694-0122, and by
changing the title of existing collection number 0694-0134 to
``Procedure for parties on the Entity List or Unverified List to
Request Removal or Modification of their Listing'' and adding a
reference to proposed Sec. 744.15 in connection with that collection
number.
Proposed Amendments to Sec. 740.2
BIS proposes adding a new paragraph (a)(17) to the Sec. 740.2
``Restrictions on all License Exceptions.'' This paragraph would state
that license exceptions may not be used where a party to the
transaction as described in Sec. 748.5 of the EAR is listed on the
Unverified List.
Proposed New Sec. 744.15 and Amendment to Sec. 756.1
BIS proposes adding a new section to Part 744 to set forth the new
provisions pertaining to persons listed on the UVL. New section Sec.
744.15 would provide an overview of the UVL, the conditions it imposes
with respect to exports, reexports, and transfers (in-country) to
listed persons, and the criteria for revising the UVL. This new section
would also include the procedures for requesting removal or
modification of a person on the UVL.
BIS also proposes to exclude appeals for removal of Unverified List
entries from the provisions of Part 756 of the EAR. Requests for
removal instead will be made according to the procedures set forth in
proposed Sec. 744.15 of the EAR. Accordingly, paragraph (a)(3) of
Sec. 756.1 of the EAR would be amended by adding a reference to
decisions on requests to remove UVL entries made pursuant to proposed
Sec. 744.15 of the EAR.
Proposed New Supplement No. 6 to Part 744
The UVL would be added to the EAR in Supplement No. 6 to Part 744.
Each listing would be grouped by country, and would be accompanied by
the person's address(es) as well as the Federal Register citation and
date the person was added to the UVL. In addition, the UVL would
include a
[[Page 55668]]
citation to Sec. 744.15, indicating that exports, reexports, and
transfers (in-country) where parties to the transactions are listed on
the Unverified List are subject to the provisions of Sec. 744.15.
Proposed Amendment to Sec. 758.1
BIS proposes adding a new paragraph (b)(8) of Sec. 758.1 of the
EAR, which would state that filing an AES record is required for all
exports of items subject to the EAR where a party to the transaction as
described in Sec. 748.5(d)-(f) is listed on the Unverified List,
regardless of value or destination.
Proposed Amendment to Sec. 762.2
Paragraph (b) in Sec. 762.2 of the EAR contains references to
parts, sections, and supplements of the EAR which require the retention
of records or contain recordkeeping provisions. Proposed Sec. 744.15
of the EAR contains a recordkeeping requirement related to the
retention of UVL statements. Section 762.2(b)(13) of the EAR is
currently reserved. BIS proposes to modify that paragraph to reference
the UVL statement recordkeeping requirement in proposed Sec. 744.15 of
the EAR.
Export Administration Act
Since August 21, 2001, the Export Administration Act of 1979, as
amended, has been in lapse. However, the President, through Executive
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March
13, 2013), and as extended by the Notice of August 8, 2013, 78 FR 49107
(August 12, 2013) has continued the EAR in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
BIS continues to carry out the provisions of the Export Administration
Act, as appropriate and to the extent permitted by law, pursuant to
Executive Order 13222 as amended by Executive Order 13637.
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 not been designated a ``significant
regulatory action,'' under section 3(f) of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor is subject to a penalty for failure to
comply with, a collection of information, subject to the requirements
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by OMB under the following control
numbers: 0694-0088, 0694-0122, 0694-0134, and 0694-0137. Specifically,
BIS would be requesting a revision and extension of existing collection
OMB 0694-0134 (Procedure for parties on the Entity List to Request
Removal or Modification of their Listing) and non-substantive changes
to OMB Control Numbers 0694-0088 (Simplified Network Application
Processing and Multipurpose Application Form), 0694-0122 (Licensing
Responsibilities and Enforcement), and 0694-0137 (License Exemptions
and Exclusions).
This proposed rule, if published in final form, would slightly
increase public burden in a collection of information approved by OMB
under control number 0694-0088, which authorizes, among other things,
export license applications. The removal of license exceptions for
listed parties on the Unverified List would result in increased license
applications being submitted to BIS by exporters. Total burden hours
associated with the Paperwork Reduction Act and OMB control number
0694-0088 are expected to increase minimally, as the suspension of
license exceptions will only affect transactions involving parties
listed on the Unverified List and not all export transactions. If
license exceptions are restricted from use, this rule will decrease
public burden in a collection of information approved by OMB under
control number 0694-0137 minimally, as this will only affect a very
small number of individual listed parties. The increased burden under
0694-0088 would be reciprocal to the decrease of burden under 0694-
0137, which would result in no change of burden to the public. This
proposed rule would also increase public burden in a collection of
information under OMB control number 0694-0122, as a result of the
exchange of UVL statements between private parties, and under OMB
control number 0694-0134 as a result of appeals from persons listed on
the UVL for removal of their listing. The total increase in burden
hours associated with both of these collections is expected to be
minimal, as they involve a limited number of persons listed on the UVL.
3. This proposed rule does not contain policies with Federalism
implications as that term is defined in Executive Order 13132.
4. The Chief Counsel for Regulation of the Department of Commerce
has certified to the Chief Counsel for Advocacy of the Small Business
Administration that this proposed rule, if adopted in final form, would
not have a significant economic impact on a substantial number of small
entities.
Number of Small Entities
Currently, BIS does not collect data on the size of entities that
apply for and are issued export licenses. Although BIS is unable to
estimate the exact number of small entities that would be impacted by
this rule, it acknowledges that this rule would impact some unknown
number. This rule would affect exporters and freight forwarders, with
obligations to apply for export licenses, obtain and retain UVL
statements, and/or file AES records in connection with exports,
reexports, or transfers (in-country) in which a person listed on the
UVL is a party to the transaction. These requirements would apply to
all entities proceeding with such transactions, regardless of size.
Conclusion
BIS is unable to determine whether there are a substantial number
of small entities affected by this rule. However, this rule is not
expected to affect a disproportionate number of small entities because
it is directed at a limited number of foreign persons and will impact
all export transactions to these persons, regardless of whether the
exports are made or intended to be made by small, medium, or large
entities. BIS has administered the UVL based on listing criteria
similar to those proposed in this rule since 2002. This rule would
impact transactions involving persons listed on the UVL, which
currently has 36 persons listed. Due to the limited number of persons
expected to be maintained on the UVL, BIS estimates that the number of
transactions involving these persons represents only a small fraction
of the total number of transactions recorded in AES. BIS estimates that
regulated entities would incur minimal economic burdens on transactions
involving UVL persons as a result of this rule because there are few
transactions involving such persons and for those transactions where
they are involved, there is no monetary fee to apply for a BIS license
or file a record in AES. Moreover,
[[Page 55669]]
obtaining a signed UVL statement from UVL persons for items not subject
to a license requirement will result in minimal burden to U.S.
exporters, as the statement can simply be copied from the EAR and
forwarded to the UVL person for review and signature. The maintenance
of any such UVL statement also will have minimal burden on U.S.
exporters as the EAR already has similar recordkeeping requirements
under Section 762.2 of the EAR. As a result, the requirements proposed
by this rule would amount to very little economic burden.
For the reasons above, the Chief Counsel for Regulation certified
that this proposed rule would not have a significant economic impact on
a substantial number of small entities.
List of Subjects
15 CFR Part 730
Administrative practice and procedure, Advisory committees,
Exports, Reporting and recordkeeping requirements, Strategic and
critical materials
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
15 CFR Part 756
Appeals.
15 CFR Part 758
Export Clearance Requirements.
15 CFR Part 762
Recordkeeping.
Accordingly, 15 CFR Parts 730, 740, 744, 756, 758, and 762 of the
Export Administration Regulations are proposed to be amended as
follows:
PART 730--[AMENDED]
0
1. The authority citation for 15 CFR part 730 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. 2151
note; 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. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42
FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p.
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854,
58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3
CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O.
12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR
54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224,
66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR 26751, 3
CFR, 2004 Comp., p 168; Notice of May 9, 2012, 77 FR 27559 (May 10,
2012); Notice of August 15, 2012, 77 FR 49699 (August 16, 2012);
Notice of September 11, 2012, 77 FR 56519 (September, 12, 2012) ;
Notice of November 1, 2012, 77 FR 66513 (November 5, 2012); Notice
of January 17, 2013, 78 FR 4303 (January 22, 2013).
0
2. Supplement No. 1 to part 730 is amended by:
0
a. Removing the phrase ``Part 758, and Sec. 748.4'' and adding in its
place ``Sec. Sec. 744.15(b) and 748.4 and Part 758'' in the
``Reference in the EAR'' column of 0694-0122 row;
0
b. Removing the Title ``Procedure for parties on the Entity List to
Request Removal or Modification of their Listing'' and adding in its
place ``Procedure for parties on the Entity List or the Unverified List
to Request Removal or Modification of their Listing'' in the Title
Column of the 0694-0134 row; and
0
c. Removing the reference ``Sec. 744.16'' and adding in its place
``Sec. Sec. 744.15 and 744.16'' in the Reference in the EAR column of
the 0694-0134 row.
PART 740--[AMENDED]
0
3. The authority citation for 15 CFR 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 15, 2012, 77 FR 49699 (August 16, 2012).
0
4. Section 740.2 is amended by adding paragraph (a)(17) to read as
follows:
Sec. 740.2 Restrictions on all License Exceptions.
(a) * * *
(17) A party to the transaction, as described in Sec. 748.5 of the
EAR, is listed on the Unverified List in Supplement No. 6 to Part 744,
see Sec. 744.15 of the EAR.
* * * * *
PART 744--[AMENDED]
0
5. The authority citation for 15 CFR Part 744 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. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 15, 2012, 77 FR 49699
(August 16, 2012); Notice of September 11, 2012, 77 FR 56519
(September, 12, 2012) ; Notice of November 1, 2012, 77 FR 66513
(November 5, 2012); Notice of January 17, 2013, 78 FR 4303 (January
22, 2013).
0
6. Part 744 is amended by adding Sec. 744.15 to read as follows:
Sec. 744.15 Restrictions on Exports, Reexports and Transfers (in-
country) to Persons Listed on the Unverified List.
(a) General requirement. In addition to the requirements set forth
elsewhere in the EAR, exports, reexports, or transfers (in-country) of
item(s) subject to the EAR involving parties to the transaction who are
listed on the Unverified List may be made only in accordance with
paragraph (b) of this section. The names and addresses of foreign
persons subject to end-user controls based on the criteria described in
paragraph (c) of this section are identified in the Unverified List
found in Supplement No. 6 to this part. Requirements found elsewhere in
the EAR also apply, including but not limited to any license
requirements, the record filing requirements pursuant to Sec.
758.1(b)(8), and the restrictions on license exceptions described in
Sec. 740.2(a)(17).
(b) UVL Statement. Before proceeding with any export, reexport, or
transfer (in-country) subject to the EAR that is not subject to a
license requirement, involving a person listed on the Unverified List
as a party described in Sec. 748.5 of the EAR, an exporter,
reexporter, or transferor (in-country) must obtain a UVL statement from
such person, according to the provisions set forth in this section. The
statement must be retained in accordance with Part 762 of the EAR.
(1) One UVL statement may be used for multiple shipments of the
same items between the same parties, so long as the party names, the
description(s) of the items and the ECCNs are correct. If one UVL
statement is used for multiple shipments, the exporter, reexporter, and
transferor (in-country) must maintain a log or other record that
identifies each shipment made pursuant to this section and the specific
UVL statement that is associated with each shipment. The log or record
must be retained in accordance with Part 762 of the EAR.
(2) The UVL statement must be in writing, signed by an individual
of
[[Page 55670]]
sufficient authority to legally bind the UVL party, and state the
following:
(i) Name of UVL party; complete physical address (simply listing a
post office is insufficient); telephone number; fax number; email
address; Web site (if available); and name of individual signing the
UVL statement.
(ii) Agrees not to use the item(s) for any use prohibited by the
United States Export Administration Regulations (EAR), 15 CFR Parts
730-772, and agrees not to reexport or transfer (in-country) the
item(s) to any destination, use or user prohibited by the EAR.
(iii) Declares that the end use, end user, and country of ultimate
destination of the item(s) subject to the EAR are as follows: [INSERT
END USE, END USER, AND COUNTRY OF ULTIMATE DESTINATION].
(iv) Agrees to cooperate with end-use checks, including a Pre-
License Check or a Post-Shipment Verification, conducted by or on
behalf of the Bureau of Industry and Security, U.S. Department of
Commerce, for any item subject to the EAR in transactions to which they
were a party in the last five years. This cooperation includes
facilitating the timely conduct of the check and providing full and
accurate information concerning the disposition of items subject to the
EAR.
(v) Agrees to provide copies of this document and all other export,
reexport or transfer (in-country) records required to be retained in
Part 762 of the EAR.
(vi) Certifies that the individual signing the UVL Statement has
sufficient authority to legally bind the party.
(c) Criteria for revising the Unverified List. (1) Foreign persons
who are parties to an export, reexport, and transfer (in-country)
subject to the EAR may be added to the Unverified List if BIS or
federal officials acting on BIS's behalf cannot verify the bona fides
(i.e., legitimacy and reliability relating to the end use and end user
of items subject to the EAR) of such persons because an end-use check,
such as a pre-license check (PLC) or a post-shipment verification
(PSV), cannot be completed satisfactorily for reasons outside of the
U.S. Government's control. The examples in paragraphs (c)(1)(i) through
(iii) of this section provide an illustrative list of those
circumstances.
(i) During the conduct of an end-use check, the subject of the
check is unable to demonstrate the disposition of items subject to the
EAR.
(ii) The existence or authenticity of the subject of an end-use
check cannot be verified (e.g., the subject of the check cannot be
located or contacted).
(iii) Lack of cooperation by the host government authority prevents
an end-use check from being conducted.
(2) BIS may remove a person from the Unverified List when BIS is
able to verify the bona fides of the listed person as an end user,
consignee, or other party to exports, reexports, or transfers (in-
country) involving items subject to the EAR by completing a PLC or PSV.
In the limited circumstance involving a PLC or PSV that cannot be
completed due to lack of host government cooperation, an alternative
bona fides verification process may be determined by BIS to be
sufficient. Such a determination is separate from those made by BIS
pursuant to Sec. 744.11(b) of the EAR, and should be requested through
paragraph (d) of this section.
(d) Procedure for requesting removal of a person on the Unverified
List. Any person listed on the Unverified List may request that its
listing be amended or removed.
(1) All such requests, including reasons therefor and information
that would verify the bona fides, i.e., legitimacy and reliability of
the person listed on the Unverified List as an end user, consignee or
other party to exports, reexports, and transfers (in-country) of items
subject to the EAR, must be in writing and sent to: Director, Office of
Enforcement Analysis, Bureau of Industry and Security, U.S. Department
of Commerce, 14th Street and Pennsylvania Avenue NW., Room 4065,
Washington, DC 20230, via fax to (202) 482-0971, or by email to [insert
email address].
(2) The Deputy Assistant Secretary for Export Enforcement will
review such requests and will convey the decision on the request to the
requester in writing based on an assessment of the listed person's bona
fides as a party to exports, reexports, and transfers (in-country)
subject to the EAR. That decision will be the final agency action on
the request.
0
7. Part 744 is amended by adding Supplement No. 6 to read as follows:
Supplement No. 6 to Part 744--Unverified List
Exports, reexports, and transfers (in-country) involving parties to
the transaction who are listed in this supplement are subject to the
restrictions outlined in Sec. 744.15 of the EAR.
------------------------------------------------------------------------
Federal Register
Country Listed person and citation and date
address of publication
------------------------------------------------------------------------
Reserved........................ Reserved.......... Reserved.
------------------------------------------------------------------------
PART 756--[AMENDED]
0
8. The authority citation for 15 CFR Part 756 continues to read as
follows:
Authority: 50 U.S.C. app 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
0
9. Section 756.1 is amended by revising paragraph (a)(3) to read as
follows:
Sec. 756.1 Introduction.
(a) * * *
(3) A decision on a request to remove or modify an Entity List
entry made pursuant to Sec. 744.16 of the EAR or a decision on a
request to remove an Unverified List entry made pursuant to Sec.
744.15 of the EAR.
PART 758--[AMENDED]
0
10. The authority citation for 15 CFR Part 758 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
0
11. Section 758.1 is amended by adding paragraph (b)(8) to read as
follows:
Sec. 758.1 The Shipper's Export Declaration (SED) or Automated Export
System (AES) record.
* * * * *
(b) * * *
(8) For all exports of items subject to the EAR where parties to
the transaction, as described in Sec. 748.5(d)-(f) of the EAR, are
listed on the Unverified List (Supplement 6 to Part 744 of the EAR),
regardless of value or destination.
PART 762--[AMENDED]
0
12. The authority citation for 15 CFR Part 762 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
[[Page 55671]]
0
13. Section 762.2 is amended by revising paragraph (b)(13) to read as
follows:
Sec. 762.2 Records to be retained.
* * * * *
(b) * * *
(13) Sec. 744.15(b), UVL statement as well as any logs or records
created for multiple shipments;
* * * * *
Dated: September 3, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-21996 Filed 9-10-13; 8:45 am]
BILLING CODE 3510-33-P