Amendments to Existing Validated End-User Authorizations in the People's Republic of China, 69535-69538 [2013-27809]
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69535
Rules and Regulations
Federal Register
Vol. 78, No. 224
Wednesday, November 20, 2013
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
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REGISTER issue of each week.
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 130927853–3853–01]
RIN 0694–AF99
Amendments to Existing Validated
End-User Authorizations in the
People’s Republic of China
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
In this rule, the Bureau of
Industry and Security (BIS) amends the
Export Administration Regulations
(EAR) to revise existing authorizations
for Validated End-Users (VEUs)
Samsung China Semiconductor Co. Ltd.
(Samsung China), Semiconductor
Manufacturing International
Corporation (SMIC), SK hynix
Semiconductor (China) Ltd. (SK hynix
China) and SK hynix Semiconductor
(Wuxi) Ltd. (SK hynix Wuxi)
(collectively ‘‘SK hynix’’) in the
People’s Republic of China (PRC).
Specifically, BIS amends Supplement
No. 7 to part 748 of the EAR to add two
items and remove one item from the list
of eligible items for VEU Samsung
China, add a facility to the list of
eligible destinations and two items to
the list of eligible items for VEU SMIC,
and update the addresses of the
facilities used by VEU SK hynix China
and VEU SK hynix Wuxi.
DATES: This rule is effective November
20, 2013.
FOR FURTHER INFORMATION CONTACT:
Karen Nies-Vogel, Chair, End-User
Review Committee, Bureau of Industry
and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania
Avenue NW., Washington, DC 20230; by
telephone: (202) 482–5991, fax: (202)
482–3991, or email: ERC@bis.doc.gov.
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SUMMARY:
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Supplement No. 7 to part 748 in a rule
published in the Federal Register on
July 10, 2013 (78 FR 41291).
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User
Validated End-Users (VEUs) are
designated entities located in eligible
destinations to which eligible items may
be exported, reexported, or transferred
(in-country) under a general
authorization instead of a license. The
names of the VEUs, as well as the dates
they were so designated, and their
respective eligible destinations and
items are identified in Supplement No.
7 to part 748 of the Export
Administration Regulations (EAR).
Under the terms described in that
supplement, VEUs may obtain eligible
items without an export license from the
Bureau of Industry and Security (BIS),
in conformity with section 748.15 of the
EAR. Eligible items vary between VEUs,
but may include commodities, software,
and technology, except those controlled
for missile technology or crime control
reasons on the Commerce Control List
(CCL) (part 774 of the EAR).
VEUs are reviewed and approved by
the U.S. Government in accordance with
the provisions of section 748.15 and
Supplement Nos. 8 and 9 to part 748 of
the EAR. The End-User Review
Committee (ERC), composed of
representatives from the Departments of
State, Defense, Energy, and Commerce,
and other agencies, as appropriate, is
responsible for administering the VEU
program. BIS amended the EAR in a
final rule published on June 19, 2007
(72 FR 33646) to create Authorization
VEU.
Amendments to Existing Validated EndUser Authorizations in the People’s
Republic of China (PRC)
Revisions to the List of ‘‘Eligible Items
(By ECCN)’’ for Validated End-User
Samsung China Semiconductor Co. Ltd
(Samsung China)
This final rule amends Supplement
No. 7 to part 748 of the EAR to add
Export Control Classification Numbers
(ECCNs) 2B350.i.3 and 3A233 to the list
of items that may be exported,
reexported or transferred (in-country) to
Samsung China’s facility in the PRC
under Authorization VEU. BIS also
removes ECCN 2B350.i.4 from Samsung
China’s list of approved items. BIS
makes these changes pursuant to
requests from Samsung China. BIS
added Samsung China as a VEU in
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Eligible Items (by ECCN) That May Be
Exported, Reexported or Transferred
(In-Country) to the Eligible Destination
Identified Under Samsung China
Semiconductor Co. Ltd.’s Validated
End-User Authorization
ECCNs 1C350.c.3, 1C350.d.7, 2B230,
2B350.d.2, 2B350.g.3, 2B350.i.3, 3A233,
3B001.a.1, 3B001.b, 3B001.c, 3B001.e,
3B001.f, 3B001.h, 3C002, 3C004, 3D002,
and 3E001 (limited to ‘‘technology’’ for
items classified under 3C002 and 3C004
and ‘‘technology’’ for use consistent
with the International Technology
Roadmap for Semiconductors process
for items classified under ECCNs 3B001
and 3B002).
Revisions to the List of ‘‘Eligible
Destinations’’ and ‘‘Eligible Items (By
ECCN)’’ for Validated End-User
Semiconductor Manufacturing
International Corporation (SMIC)
This final rule also amends
Supplement No. 7 to part 748 of the
EAR to add a facility to the list of SMIC
facilities to which eligible items may be
exported, reexported or transferred (incountry) using Authorization VEU, to
bring the number of SMIC’s VEUauthorized facilities in the PRC to a total
of four. BIS also adds two ECCNs to
SMIC’s list of eligible items that may be
sent to the four facilities. The ECCNs
added in this rule to SMIC’s VEU
authorization are ECCNs 2B350.d.3 and
3C003. BIS makes these changes
pursuant to requests from SMIC.
Additional SMIC Destination
Semiconductor Manufacturing
International (Shenzhen) Corporation,
Qier Road, Export Processing Zone,
Pingshan New Area, Shenzhen, China
518118.
Eligible Items (by ECCN) That May Be
Exported, Reexported or Transferred
(In-Country) to the Eligible Destination
Identified Under Semiconductor
Manufacturing International
Corporation Validated End-User
Authorization
ECCNs 1C350.c.3, 1C350.d.7,
2B006.b.1, 2B230, 2B350.d.2, 2B350.d.3,
2B350.g.3, 2B350.i.3, 3B001.a, 3B001.b,
3B001.c, 3B001.e, 3B001.f, 3C001,
3C002, 3C003, 3C004, 5B002, and 5E002
(limited to ‘‘technology’’ according to
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Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Rules and Regulations
the General Technology Note for the
‘‘production’’ of integrated circuits
controlled by ECCN 5A002 that have
been classified by BIS as eligible for
License Exception ENC under paragraph
(b)(2) or (b)(3) of section 740.17 of the
EAR, or classified by BIS as a mass
market item under paragraph (b)(3) of
section 748.15 of the EAR).
Change of Address Name of the Facility
for Validated End-Users SK hynix
Semiconductor (China) Ltd. and SK
hynix Semiconductor (Wuxi) Ltd.
Finally, in this rule, BIS amends
Supplement No. 7 to part 748 to make
a technical change by updating the
facility address names for existing VEUs
SK hynix in the PRC. Although the
actual location of the facilities for these
VEUs has not changed, the technology
park where the VEUs are located
recently changed its name and this
amendment reflects that change and
also indicates the specific lot in which
each VEU is located.
Prior Address Name for SK hynix China
Lot K7/K7–1, Export Processing Zone,
Wuxi, Jiangsu, China 214028.
New Address Name for SK hynix China
Lot K7, Wuxi High-tech Zone
Comprehensive Bonded Zone, Wuxi
New District, Jiangsu Province, China
214028.
Prior Address Name for SK hynix Wuxi
Lot K7/K7–1, Export Processing Zone,
Wuxi, Jiangsu, China 214028.
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New Address Name for SK hynix Wuxi
Lot K7–1, Wuxi High-tech Zone
Comprehensive Bonded Zone Wuxi
New District, Jiangsu Province, China
214028.
Authorization VEU eliminates the
burden on exporters and reexporters of
preparing individual license
applications because the export,
reexport and transfer (in-country) of the
eligible items specified for each VEU
may be made under general
authorization instead of under
individual licenses. With the addition of
items for Samsung China and the
addition of items and a facility for
SMIC, exporters and reexporters can
supply items much more quickly, thus
enhancing the competitiveness of both
the VEU and its suppliers of U.S-origin
items. In addition, the update of the
facility addresses for existing VEUs SK
hynix reinforces the reliability of
information that facilitates legitimate
trade that exporters and reexporters
conduct under Authorization VEU.
Since August 21, 2001, the Export
Administration Act has been in lapse
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and 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 most recently 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. 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.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. This rule has been
determined to be not significant for
purposes of Executive Order 12866.
2. This rule involves collections
previously approved by the Office of
Management and Budget (OMB) under
Control Number 0694–0088, ‘‘MultiPurpose Application,’’ which carries a
burden hour estimate of 43.8 minutes to
prepare and submit form BIS–748; and
for recordkeeping, reporting and review
requirements in connection with
Authorization VEU, which carries an
estimated burden of 30 minutes per
submission. This rule is expected to
result in a decrease in license
applications submitted to BIS. Total
burden hours associated with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.) (PRA) and OMB
Control Number 0694–0088 are not
expected to increase significantly as a
result of this rule.
Notwithstanding any other provisions
of law, no person is required to respond
to, nor be subject to a penalty for failure
to comply with a collection of
information subject to the requirements
of the PRA, unless that collection of
information displays a currently valid
OMB Control Number.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. Pursuant to the Administrative
Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive
requirements that this rule be subject to
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notice and the opportunity for public
comment because they are unnecessary.
In determining whether to grant VEU
designations, a committee of U.S.
Government agencies evaluates
information about and commitments
made by candidate companies, the
nature and terms of which are set forth
in 15 CFR part 748, Supplement No. 8.
The criteria for evaluation by the
committee are set forth in 15 CFR
748.15(a)(2).
The information, commitments, and
criteria for this extensive review were
all established through the notice of
proposed rulemaking and public
comment process (71 FR 38313 (July 6,
2006) (proposed rule), and 72 FR 33646
(June 19, 2007) (final rule)). Given the
similarities between the authorizations
provided under the VEU program and
export licenses (as discussed further
below), the publication of this
information does not establish new
policy. In publishing this final rule, BIS
adds an eligible destination to an
existing VEU, updates the address name
of two others, and makes changes to the
list of eligible items for VEU Samsung
and VEU SMIC. These changes have
been made within the established
regulatory framework of the
Authorization VEU program. Further,
this rule does not abridge the rights of
the public or eliminate the public’s
option to export under any of the forms
of authorization set forth in the EAR.
Publication of this rule in other than
final form is unnecessary because the
authorizations granted in the rule are
consistent with the authorizations
granted to exporters for individual
licenses (and amendments or revisions
thereof), which do not undergo public
review. In addition, as with license
applications, VEU authorization
applications contain confidential
business information, which is
necessary for the extensive review
conducted by the U.S. Government in
assessing such applications. This
information is extensively reviewed
according to the criteria for VEU
authorizations, as set out in 15 CFR
748.15(a)(2). Additionally, just as the
interagency reviews license
applications, the authorizations granted
under the VEU program involve
interagency deliberation and result from
review of public and non-public
sources, including licensing data, and
the measurement of such information
against the VEU authorization criteria.
Given the nature of the review, and in
light of the parallels between the VEU
application review process and the
review of license applications, public
comment on this authorization and
subsequent amendments prior to
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publication is unnecessary. Moreover,
because, as noted above, the criteria and
process for authorizing and
administering VEUs were developed
with public comments, allowing
additional public comment on this
amendment to individual VEU
authorizations, which was determined
according to those criteria, is
unnecessary.
Section 553(d) of the APA generally
provides that rules may not take effect
earlier than thirty (30) days after they
are published in the Federal Register.
BIS finds good cause to waive the 30day delay in effectiveness under 5
U.S.C. 553(d)(3) because the delay
would be contrary to the public interest.
BIS is simply amending the list of VEU
authorizations by adding a new end
user, consistent with established
objectives and parameters administered
and enforced by the responsible
designated departmental representatives
to the End-User Review Committee.
Delaying this action’s effectiveness
could cause confusion with the new
VEU status as determined by those
authorized government representatives
and stifle the ongoing purpose of the
VEU Authorization Program.
Accordingly, it is contrary to the public
interest to delay this rule’s effectiveness.
No other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this final rule. Because a
notice of proposed rulemaking and an
opportunity for public comment are not
required under the APA or by any other
law, the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.) are not applicable. As a result,
no final regulatory flexibility analysis is
required and none has been prepared.
List of Subjects in 15 CFR Part 748
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, part 748 of the EAR (15
CFR parts 730–774) is amended as
follows:
PART 748—[AMENDED]
1. The authority citation for part 748
continues to read as follows:
■
69537
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767,
3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 8, 2013, 78 FR 49107 (August 12,
2013).
2. Amend Supplement No. 7 to part
748 by:
■ a. Revising the Export Control
Classification Numbers in the ‘‘Eligible
items (by ECCN)’’ column for Validated
End-User ‘‘Samsung China
Semiconductor Co. Ltd.’’ in ‘‘China,
(People’s Republic of)’’;
■ b. Revising the list of facilities in the
‘‘Eligible destination’’ column and items
in the ‘‘Eligible items (by ECCN)’’
column for Validated End-User
Semiconductor Manufacturing
International Corporation’’ in ‘‘China,
(People’s Republic of)’’; and
■ c. Revising the address of the facility
that appears in the ‘‘Eligible
destination’’ column for both Validated
End-Users ‘‘SK hynix Semiconductor
(China) Ltd.’’ and ‘‘SK hynix
Semiconductor (Wuxi) Ltd.’’ in ‘‘China,
(People’s Republic of)’’.
The revisions read as follows:
■
SUPPLEMENT NO. 7 TO PART 748—AUTHORIZATION VALIDATED END-USER (VEU): LIST OF VALIDATED END-USERS,
RESPECTIVE ITEMS ELIGIBLE FOR EXPORT, REEXPORT AND TRANSFER, AND ELIGIBLE DESTINATIONS
Country
Eligible items
(by ECCN)
Validated end-user
Eligible destination
Federal Register
Citation
Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited to § 748.15(c).
*
*
Samsung China
Semiconductor
Co. Ltd.
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Semiconductor
Manufacturing
International Corporation.
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*
*
1C350.c.3,
1C350.d.7,
2B230,
2B350.d.2,
2B350.g.3,
2B350.i.3,
3A233, 3B001.a.1, 3B001.b, 3B001.c,
3B001.e, 3B001.f, 3B001.h, 3C002,
3C004, 3D002, and 3E001 (limited to
‘‘technology’’ for items classified under
3C002 and 3C004 and ‘‘technology’’
for use consistent with the International Technology Roadmap for
Semiconductors process for items
classified under ECCNs 3B001 and
3B002).
1C350.c.3,
1C350.d.7,
2B006.b.1,
2B230,
2B350.d.2,
2B350.d.3,
2B350.g.3,
2B350.i.3,
3B001.a,
3B001.b, 3B001.c, 3B001.e, 3B001.f,
3C001, 3C002, 3C003, 3C004,
5B002, and 5E002 (limited to ‘‘technology’’ according to the General
Technology Note for the ‘‘production’’
of integrated circuits controlled by
ECCN 5A002 that have been classified by BIS as eligible for License Exception ENC under paragraph (b)(2)
or (b)(3) of section 740.17 of the EAR,
or classified by BIS as a mass market
item under paragraph (b)(3) of section
748.15 of the EAR).
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*
*
Samsung China Semiconductor Co.
Ltd., Xinglong Street, Chang’an District, Xi’an, People’s Republic of China
710065.
*
78 FR 41291, 7/10/
13. 78 FR [INSERT PAGE
NUMBER], 11/20/
2013.
Semiconductor Manufacturing International (Shanghai) Corporation, 18
Zhang Jiang Rd., Pudong New Area,
Shanghai, China 201203.
Semiconductor Manufacturing International (Tianjin) Corporation, 19 Xing
Hua Avenue, Xi Qing Economic Development Area, Tianjin, China
300385.
Semiconductor Manufacturing International (Beijing) Corporation, No. 18
Wen Chang Road, Beijing EconomicTechnological Development Area, Beijing, China 100176.
Semiconductor Manufacturing International (Shenzhen) Corporation.
Qier Road, Export Processing Zone.
Pingshan New Area.
Shenzhen, China 518118.
72 FR 59164, 10/
19/07. 75 FR
67029, 11/1/10.
77 FR 10953, 2/
24/12. 78 FR [INSERT PAGE
NUMBER], 11/20/
2013.
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69538
Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 / Rules and Regulations
SUPPLEMENT NO. 7 TO PART 748—AUTHORIZATION VALIDATED END-USER (VEU): LIST OF VALIDATED END-USERS,
RESPECTIVE ITEMS ELIGIBLE FOR EXPORT, REEXPORT AND TRANSFER, AND ELIGIBLE DESTINATIONS—Continued
Eligible destination
Federal Register
Citation
*
*
*
SK hynix Semicon3B001.a, 3B001.b, 3B001.c, 3B001.e,
ductor (China) Ltd.
and 3B001.f.
*
*
SK hynix Semiconductor (China) Ltd.,
Lot K7, Wuxi High-tech Zone, Comprehensive Bonded Zone, Wuxi New
District, Jiangsu Province, China
214028.
SK hynix Semiconductor (Wuxi) Ltd.
SK hynix Semiconductor (Wuxi) Ltd., Lot
K7–1, Wuxi High-tech Zone, Comprehensive Bonded Zone, Wuxi New
District, Jiangsu Province, China
214028.
*
75 FR 62462, 10/
12/10. 77 FR
40258, 7/9/12. 78
FR 3319, 1/16/13.
78 FR [INSERT
PAGE NUMBER],
11/20/2013.
75 FR 62462, 10/
12/10. 77 FR
40258, 7/9/12. 78
FR 3319, 1/16/13.
78 FR [INSERT
PAGE NUMBER],
11/20/2013.
Country
*
Eligible items
(by ECCN)
Validated end-user
*
3B001.a, 3B001.b, 3B001.c, 3B001.e,
and 3B001.f.
*
*
Dated: November 14, 2013.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2013–27809 Filed 11–19–13; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF LABOR
Employment and Training
Administration
20 CFR Part 655
RIN 1205–AB66
Attestation Process for Employers
Using F–1 Students in Off-Campus
Work
Employment and Training
Administration, Department of Labor, in
concurrence with the Wage and Hour
Division, Department of Labor.
ACTION: Final rule; rescission of
regulations.
AGENCY:
This final rule rescinds the
regulations which provided rules
governing employers seeking to hire
F–1 foreign students as part-time
workers off-campus. These subparts
became obsolete after the authorizing
statute and its two-year extension
expired in 1996. Accordingly, the
Department of Labor (the Department) is
taking this action to remove regulations
that no longer have force and effect.
DATES: Effective November 20, 2013.
FOR FURTHER INFORMATION CONTACT:
William L. Carlson, Ph.D.,
Administrator, Office of Foreign Labor
Certification, Room C–4312,
Employment & Training Administration,
U.S. Department of Labor, 200
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SUMMARY:
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13:56 Nov 19, 2013
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*
*
Constitution Avenue NW., Washington,
DC 20210. Telephone number: 202–
693–3010 (this is not a toll-free
number). Individuals with hearing or
speech impairments may access the
telephone number above via TTY by
calling the toll-free Federal Information
Relay Service at 1–877–889–5627 (TTY/
TDD). Fax: 202–693–2768.
SUPPLEMENTARY INFORMATION: Section
221 of the Immigration Act of 1990
(IMMACT) (Pub L. 101–649; 104 Stat.
4978) as amended by section 303(b)(1)
of the Miscellaneous and Technical
Immigration and Naturalization
Amendments of 1991 (Pub. L. 102–232;
105 Stat. 1733), supplemented sections
101(a)(15)(F) of the Immigration and
Nationality Act (8 U.S.C 1101(a)(15)(F))
by creating a pilot program, of limited
duration. The pilot program permitted
nonimmigrant foreign students to be
admitted as F–1 nonimmigrant students
to work off-campus if: (1) The alien had
completed one academic year as an
F–1 nonimmigrant and was maintaining
good academic standing at the
educational institution; (2) the alien
would not be employed off-campus for
more than 20 hours per week during the
academic term; and (3) the employer
provided an attestation to the
Department of Labor and to the
educational institution that it
unsuccessfully recruited for the position
for at least 60 days and would pay the
higher of the actual wage at the worksite
or the prevailing wage for the
occupation in the area of employment.
IMMACT, Sec 221(a). IMMACT
established the program as a 3-year pilot
to end September 30, 1994. The
Immigration and Nationality Technical
Corrections Act of 1994 (Pub. L. 103–
416; 108 Stat. 4319) revived and
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*
*
extended the program through
September 30, 1996. The program
expired on September 30, 1996, and was
never extended.
The Department implemented the
F–1 visa pilot program through
regulations at 20 CFR part 655 subparts
J and K. See 56 FR 56860 (Nov. 6, 1991),
as amended by 59 FR 64776 (Dec. 15,
1994), 60 FR 61210 (Nov. 29, 1995).
Because of the expiration of the
statutory program, these regulations are
currently without force and effect and
should be rescinded.
The Department has determined that
it is unnecessary to publish the
rescission of these regulations as a
proposed rule, as generally required by
the Administrative Procedure Act
(‘‘APA’’), 5 U.S.C. 553(b). The statutory
provisions governing the pilot program
have expired, and this rule simply
rescinds the implementing regulations,
which no longer have force and effect.
Therefore, good cause exists for
dispensing with the notice and
comment requirements of the APA. 5
U.S.C. 553(b)(B). For the same reasons,
good cause exists to make this rule
effective immediately upon publication
of this rule. 5 U.S.C. 553(d)(3).
Administrative Information
A. Executive Order 12866
This final rule has been drafted and
reviewed in accordance with Executive
Order 12866, section 1(b), Principles of
Regulation. The Department has
determined that this rule is not a
‘‘significant regulatory action’’ under
Executive Order 12866, section 3(f),
Regulatory Planning and Review. The
Department has also determined that
this rule is not ‘‘economically
significant’’ as defined in section 3(f)(1)
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]]>Agencies
[Federal Register Volume 78, Number 224 (Wednesday, November 20, 2013)]
[Rules and Regulations]
[Pages 69535-69538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-27809]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 78, No. 224 / Wednesday, November 20, 2013 /
Rules and Regulations
[[Page 69535]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 130927853-3853-01]
RIN 0694-AF99
Amendments to Existing Validated End-User Authorizations in the
People's Republic of China
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) to revise existing
authorizations for Validated End-Users (VEUs) Samsung China
Semiconductor Co. Ltd. (Samsung China), Semiconductor Manufacturing
International Corporation (SMIC), SK hynix Semiconductor (China) Ltd.
(SK hynix China) and SK hynix Semiconductor (Wuxi) Ltd. (SK hynix Wuxi)
(collectively ``SK hynix'') in the People's Republic of China (PRC).
Specifically, BIS amends Supplement No. 7 to part 748 of the EAR to add
two items and remove one item from the list of eligible items for VEU
Samsung China, add a facility to the list of eligible destinations and
two items to the list of eligible items for VEU SMIC, and update the
addresses of the facilities used by VEU SK hynix China and VEU SK hynix
Wuxi.
DATES: This rule is effective November 20, 2013.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Bureau of Industry and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania Avenue NW., Washington, DC 20230;
by telephone: (202) 482-5991, fax: (202) 482-3991, or email:
ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User
Validated End-Users (VEUs) are designated entities located in
eligible destinations to which eligible items may be exported,
reexported, or transferred (in-country) under a general authorization
instead of a license. The names of the VEUs, as well as the dates they
were so designated, and their respective eligible destinations and
items are identified in Supplement No. 7 to part 748 of the Export
Administration Regulations (EAR). Under the terms described in that
supplement, VEUs may obtain eligible items without an export license
from the Bureau of Industry and Security (BIS), in conformity with
section 748.15 of the EAR. Eligible items vary between VEUs, but may
include commodities, software, and technology, except those controlled
for missile technology or crime control reasons on the Commerce Control
List (CCL) (part 774 of the EAR).
VEUs are reviewed and approved by the U.S. Government in accordance
with the provisions of section 748.15 and Supplement Nos. 8 and 9 to
part 748 of the EAR. The End-User Review Committee (ERC), composed of
representatives from the Departments of State, Defense, Energy, and
Commerce, and other agencies, as appropriate, is responsible for
administering the VEU program. BIS amended the EAR in a final rule
published on June 19, 2007 (72 FR 33646) to create Authorization VEU.
Amendments to Existing Validated End-User Authorizations in the
People's Republic of China (PRC)
Revisions to the List of ``Eligible Items (By ECCN)'' for Validated
End-User Samsung China Semiconductor Co. Ltd (Samsung China)
This final rule amends Supplement No. 7 to part 748 of the EAR to
add Export Control Classification Numbers (ECCNs) 2B350.i.3 and 3A233
to the list of items that may be exported, reexported or transferred
(in-country) to Samsung China's facility in the PRC under Authorization
VEU. BIS also removes ECCN 2B350.i.4 from Samsung China's list of
approved items. BIS makes these changes pursuant to requests from
Samsung China. BIS added Samsung China as a VEU in Supplement No. 7 to
part 748 in a rule published in the Federal Register on July 10, 2013
(78 FR 41291).
Eligible Items (by ECCN) That May Be Exported, Reexported or
Transferred (In-Country) to the Eligible Destination Identified Under
Samsung China Semiconductor Co. Ltd.'s Validated End-User Authorization
ECCNs 1C350.c.3, 1C350.d.7, 2B230, 2B350.d.2, 2B350.g.3, 2B350.i.3,
3A233, 3B001.a.1, 3B001.b, 3B001.c, 3B001.e, 3B001.f, 3B001.h, 3C002,
3C004, 3D002, and 3E001 (limited to ``technology'' for items classified
under 3C002 and 3C004 and ``technology'' for use consistent with the
International Technology Roadmap for Semiconductors process for items
classified under ECCNs 3B001 and 3B002).
Revisions to the List of ``Eligible Destinations'' and ``Eligible Items
(By ECCN)'' for Validated End-User Semiconductor Manufacturing
International Corporation (SMIC)
This final rule also amends Supplement No. 7 to part 748 of the EAR
to add a facility to the list of SMIC facilities to which eligible
items may be exported, reexported or transferred (in-country) using
Authorization VEU, to bring the number of SMIC's VEU-authorized
facilities in the PRC to a total of four. BIS also adds two ECCNs to
SMIC's list of eligible items that may be sent to the four facilities.
The ECCNs added in this rule to SMIC's VEU authorization are ECCNs
2B350.d.3 and 3C003. BIS makes these changes pursuant to requests from
SMIC.
Additional SMIC Destination
Semiconductor Manufacturing International (Shenzhen) Corporation,
Qier Road, Export Processing Zone, Pingshan New Area, Shenzhen, China
518118.
Eligible Items (by ECCN) That May Be Exported, Reexported or
Transferred (In-Country) to the Eligible Destination Identified Under
Semiconductor Manufacturing International Corporation Validated End-
User Authorization
ECCNs 1C350.c.3, 1C350.d.7, 2B006.b.1, 2B230, 2B350.d.2, 2B350.d.3,
2B350.g.3, 2B350.i.3, 3B001.a, 3B001.b, 3B001.c, 3B001.e, 3B001.f,
3C001, 3C002, 3C003, 3C004, 5B002, and 5E002 (limited to ``technology''
according to
[[Page 69536]]
the General Technology Note for the ``production'' of integrated
circuits controlled by ECCN 5A002 that have been classified by BIS as
eligible for License Exception ENC under paragraph (b)(2) or (b)(3) of
section 740.17 of the EAR, or classified by BIS as a mass market item
under paragraph (b)(3) of section 748.15 of the EAR).
Change of Address Name of the Facility for Validated End-Users SK hynix
Semiconductor (China) Ltd. and SK hynix Semiconductor (Wuxi) Ltd.
Finally, in this rule, BIS amends Supplement No. 7 to part 748 to
make a technical change by updating the facility address names for
existing VEUs SK hynix in the PRC. Although the actual location of the
facilities for these VEUs has not changed, the technology park where
the VEUs are located recently changed its name and this amendment
reflects that change and also indicates the specific lot in which each
VEU is located.
Prior Address Name for SK hynix China
Lot K7/K7-1, Export Processing Zone, Wuxi, Jiangsu, China 214028.
New Address Name for SK hynix China
Lot K7, Wuxi High-tech Zone Comprehensive Bonded Zone, Wuxi New
District, Jiangsu Province, China 214028.
Prior Address Name for SK hynix Wuxi
Lot K7/K7-1, Export Processing Zone, Wuxi, Jiangsu, China 214028.
New Address Name for SK hynix Wuxi
Lot K7-1, Wuxi High-tech Zone Comprehensive Bonded Zone Wuxi New
District, Jiangsu Province, China 214028.
Authorization VEU eliminates the burden on exporters and
reexporters of preparing individual license applications because the
export, reexport and transfer (in-country) of the eligible items
specified for each VEU may be made under general authorization instead
of under individual licenses. With the addition of items for Samsung
China and the addition of items and a facility for SMIC, exporters and
reexporters can supply items much more quickly, thus enhancing the
competitiveness of both the VEU and its suppliers of U.S-origin items.
In addition, the update of the facility addresses for existing VEUs SK
hynix reinforces the reliability of information that facilitates
legitimate trade that exporters and reexporters conduct under
Authorization VEU.
Since August 21, 2001, the Export Administration Act has been in
lapse and 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
most recently 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. 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.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
This rule has been determined to be not significant for purposes of
Executive Order 12866.
2. This rule involves collections previously approved by the Office
of Management and Budget (OMB) under Control Number 0694-0088, ``Multi-
Purpose Application,'' which carries a burden hour estimate of 43.8
minutes to prepare and submit form BIS-748; and for recordkeeping,
reporting and review requirements in connection with Authorization VEU,
which carries an estimated burden of 30 minutes per submission. This
rule is expected to result in a decrease in license applications
submitted to BIS. Total burden hours associated with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB Control
Number 0694-0088 are not expected to increase significantly as a result
of this rule.
Notwithstanding any other provisions of law, no person is required
to respond to, nor be subject to a penalty for failure to comply with a
collection of information subject to the requirements of the PRA,
unless that collection of information displays a currently valid OMB
Control Number.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive requirements that this rule be
subject to notice and the opportunity for public comment because they
are unnecessary. In determining whether to grant VEU designations, a
committee of U.S. Government agencies evaluates information about and
commitments made by candidate companies, the nature and terms of which
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for
evaluation by the committee are set forth in 15 CFR 748.15(a)(2).
The information, commitments, and criteria for this extensive
review were all established through the notice of proposed rulemaking
and public comment process (71 FR 38313 (July 6, 2006) (proposed rule),
and 72 FR 33646 (June 19, 2007) (final rule)). Given the similarities
between the authorizations provided under the VEU program and export
licenses (as discussed further below), the publication of this
information does not establish new policy. In publishing this final
rule, BIS adds an eligible destination to an existing VEU, updates the
address name of two others, and makes changes to the list of eligible
items for VEU Samsung and VEU SMIC. These changes have been made within
the established regulatory framework of the Authorization VEU program.
Further, this rule does not abridge the rights of the public or
eliminate the public's option to export under any of the forms of
authorization set forth in the EAR.
Publication of this rule in other than final form is unnecessary
because the authorizations granted in the rule are consistent with the
authorizations granted to exporters for individual licenses (and
amendments or revisions thereof), which do not undergo public review.
In addition, as with license applications, VEU authorization
applications contain confidential business information, which is
necessary for the extensive review conducted by the U.S. Government in
assessing such applications. This information is extensively reviewed
according to the criteria for VEU authorizations, as set out in 15 CFR
748.15(a)(2). Additionally, just as the interagency reviews license
applications, the authorizations granted under the VEU program involve
interagency deliberation and result from review of public and non-
public sources, including licensing data, and the measurement of such
information against the VEU authorization criteria. Given the nature of
the review, and in light of the parallels between the VEU application
review process and the review of license applications, public comment
on this authorization and subsequent amendments prior to
[[Page 69537]]
publication is unnecessary. Moreover, because, as noted above, the
criteria and process for authorizing and administering VEUs were
developed with public comments, allowing additional public comment on
this amendment to individual VEU authorizations, which was determined
according to those criteria, is unnecessary.
Section 553(d) of the APA generally provides that rules may not
take effect earlier than thirty (30) days after they are published in
the Federal Register. BIS finds good cause to waive the 30-day delay in
effectiveness under 5 U.S.C. 553(d)(3) because the delay would be
contrary to the public interest. BIS is simply amending the list of VEU
authorizations by adding a new end user, consistent with established
objectives and parameters administered and enforced by the responsible
designated departmental representatives to the End-User Review
Committee. Delaying this action's effectiveness could cause confusion
with the new VEU status as determined by those authorized government
representatives and stifle the ongoing purpose of the VEU Authorization
Program. Accordingly, it is contrary to the public interest to delay
this rule's effectiveness.
No other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this final rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required under the APA or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. As a result, no final regulatory flexibility
analysis is required and none has been prepared.
List of Subjects in 15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, part 748 of the EAR (15 CFR parts 730-774) is amended
as follows:
PART 748--[AMENDED]
0
1. The authority citation for part 748 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 8, 2013, 78 FR
49107 (August 12, 2013).
0
2. Amend Supplement No. 7 to part 748 by:
0
a. Revising the Export Control Classification Numbers in the ``Eligible
items (by ECCN)'' column for Validated End-User ``Samsung China
Semiconductor Co. Ltd.'' in ``China, (People's Republic of)'';
0
b. Revising the list of facilities in the ``Eligible destination''
column and items in the ``Eligible items (by ECCN)'' column for
Validated End-User Semiconductor Manufacturing International
Corporation'' in ``China, (People's Republic of)''; and
0
c. Revising the address of the facility that appears in the ``Eligible
destination'' column for both Validated End-Users ``SK hynix
Semiconductor (China) Ltd.'' and ``SK hynix Semiconductor (Wuxi) Ltd.''
in ``China, (People's Republic of)''.
The revisions read as follows:
Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): List of Validated End-Users, Respective
Items Eligible for Export, Reexport and Transfer, and Eligible Destinations
----------------------------------------------------------------------------------------------------------------
Eligible items (by Federal Register
Country Validated end-user ECCN) Eligible destination Citation
----------------------------------------------------------------------------------------------------------------
Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
to Sec. 748.15(c).
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Samsung China 1C350.c.3, 1C350.d.7, Samsung China 78 FR 41291, 7/10/
Semiconductor Co. 2B230, 2B350.d.2, Semiconductor Co. 13. 78 FR [INSERT
Ltd. 2B350.g.3, 2B350.i.3, Ltd., Xinglong Street, PAGE NUMBER], 11/
3A233, 3B001.a.1, Chang'an District, 20/2013.
3B001.b, 3B001.c, Xi'an, People's
3B001.e, 3B001.f, Republic of China
3B001.h, 3C002, 3C004, 710065.
3D002, and 3E001
(limited to
``technology'' for
items classified under
3C002 and 3C004 and
``technology'' for use
consistent with the
International
Technology Roadmap for
Semiconductors process
for items classified
under ECCNs 3B001 and
3B002).
Semiconductor 1C350.c.3, 1C350.d.7, Semiconductor 72 FR 59164, 10/19/
Manufacturing 2B006.b.1, 2B230, Manufacturing 07. 75 FR 67029,
International 2B350.d.2, 2B350.d.3, International 11/1/10. 77 FR
Corporation. 2B350.g.3, 2B350.i.3, (Shanghai) 10953, 2/24/12.
3B001.a, 3B001.b, Corporation, 18 Zhang 78 FR [INSERT
3B001.c, 3B001.e, Jiang Rd., Pudong New PAGE NUMBER], 11/
3B001.f, 3C001, 3C002, Area, Shanghai, China 20/2013.
3C003, 3C004, 5B002, 201203.
and 5E002 (limited to Semiconductor
``technology'' Manufacturing
according to the International
General Technology Note (Tianjin) Corporation,
for the ``production'' 19 Xing Hua Avenue, Xi
of integrated circuits Qing Economic
controlled by ECCN Development Area,
5A002 that have been Tianjin, China 300385.
classified by BIS as Semiconductor
eligible for License Manufacturing
Exception ENC under International
paragraph (b)(2) or (Beijing) Corporation,
(b)(3) of section No. 18 Wen Chang Road,
740.17 of the EAR, or Beijing Economic-
classified by BIS as a Technological
mass market item under Development Area,
paragraph (b)(3) of Beijing, China 100176.
section 748.15 of the Semiconductor
EAR). Manufacturing
International
(Shenzhen) Corporation.
Qier Road, Export
Processing Zone.
Pingshan New Area......
Shenzhen, China 518118.
[[Page 69538]]
* * * * * * *
SK hynix 3B001.a, 3B001.b, SK hynix Semiconductor 75 FR 62462, 10/12/
Semiconductor 3B001.c, 3B001.e, and (China) Ltd., Lot K7, 10. 77 FR 40258,
(China) Ltd. 3B001.f. Wuxi High-tech Zone, 7/9/12. 78 FR
Comprehensive Bonded 3319, 1/16/13. 78
Zone, Wuxi New FR [INSERT PAGE
District, Jiangsu NUMBER], 11/20/
Province, China 214028. 2013.
SK hynix 3B001.a, 3B001.b, SK hynix Semiconductor 75 FR 62462, 10/12/
Semiconductor 3B001.c, 3B001.e, and (Wuxi) Ltd., Lot K7-1, 10. 77 FR 40258,
(Wuxi) Ltd. 3B001.f. Wuxi High-tech Zone, 7/9/12. 78 FR
Comprehensive Bonded 3319, 1/16/13. 78
Zone, Wuxi New FR [INSERT PAGE
District, Jiangsu NUMBER], 11/20/
Province, China 214028. 2013.
* * * * * * *
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Dated: November 14, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-27809 Filed 11-19-13; 8:45 am]
BILLING CODE 3510-33-P
