Importation of Arms, Ammunition and Defense Articles-Removal of Certain Defense Articles Currently on the U.S. Munitions Import List That No Longer Warrant Import Control Under the Arms Export Control Act (2011R-25P), 17024-17029 [2014-06778]

Download as PDF 17024 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations Annual Update of Filing Fees (Issued March 20, 2014) The Federal Energy Regulatory Commission (Commission) is issuing this notice to update filing fees that the Commission assesses for specific services and benefits provided to identifiable beneficiaries. Pursuant to 18 CFR 381.104, the Commission is establishing updated fees on the basis of the Commission’s Fiscal Year 2013 costs. The adjusted fees announced in this notice are effective April 28, 2014. The Commission has determined, with the concurrence of the Administrator of the Office of Information and Regulatory Affairs of the Office of Management and Budget, that this final rule is not a major rule within the meaning of section 251 of Subtitle E of Small Business Regulatory Enforcement Fairness Act, 5 U.S.C. 804(2). The Commission is submitting this final rule to both houses of the United States Congress and to the Comptroller General of the United States. The new fee schedule is as follows: Fees Applicable to the Natural Gas Policy Act 1. Petitions for rate approval pursuant to 18 CFR 284.123(b)(2). (18 CFR 381.403) ...................................................................... Fees Applicable to General Activities 1. Petition for issuance of a declaratory order (except under Part I of the Federal Power Act). (18 CFR 381.302(a)) ................ 2. Review of a Department of Energy remedial order:. Amount in controversy $ 0–9,999. (18 CFR 381.303(b)) .................................................................................................................................................. $ 10,000–29,999. (18 CFR 381.303(b)) ....................................................................................................................................... $ 30,000 or more. (18 CFR 381.303(a)) ...................................................................................................................................... 3. Review of a Department of Energy denial of adjustment:. Amount in controversy $ 0–9,999. (18 CFR 381.304(b)) .................................................................................................................................................. $ 10,000–29,999. (18 CFR 381.304(b)) ....................................................................................................................................... $ 30,000 or more. (18 CFR 381.304(a)) ...................................................................................................................................... 4. Written legal interpretations by the Office of General Counsel. (18 CFR 381.305(a)) ............................................................... Fees Applicable to Natural Gas Pipelines 1. Pipeline certificate applications pursuant to 18 CFR 284.224. (18 CFR 381.207(b)) ................................................................. Fees Applicable to Cogenerators and Small Power Producers 1. Certification of qualifying status as a small power production facility. (18 CFR 381.505(a)) .................................................. 2. Certification of qualifying status as a cogeneration facility. (18 CFR 381.505(a)) ..................................................................... * This fee has not been changed. List of Subjects in 18 CFR Part 381 § 381.305 Electric power plants, Electric utilities, Natural gas, Reporting and recordkeeping requirements. [Amended] ■ § 381.403 In consideration of the foregoing, the Commission amends Part 381, Chapter I, Title 18, Code of Federal Regulations, as set forth below. PART 381—FEES ■ BILLING CODE 6717–01–P [Amended] 2. In 381.302, paragraph (a) is amended by removing ‘‘$ 24,370’’ and adding ‘‘$ 24,260’’ in its place. 3. In 381.303, paragraph (a) is amended by removing ‘‘$ 35,580’’ and adding ‘‘$ 35,410’’ in its place. sroberts on DSK5SPTVN1PROD with RULES [Amended] 4. In 381.304, paragraph (a) is amended by removing ‘‘$ 18,650’’ and adding ‘‘$ 18,570’’ in its place. ■ PO 00000 Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Department of Justice. ACTION: Interim final rule with request for comments. AGENCY: The Department of Justice is amending Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) regulations to remove those defense articles currently on the U.S. Munitions Import List that ATF by delegation has determined no longer warrant import control under the Arms Export Control Act. DATES: Effective date: This interim final rule is effective April 28, 2014. ■ Jkt 232001 RIN 1140–AA45 SUMMARY: [Amended] 16:40 Mar 26, 2014 Bureau of Alcohol, Tobacco, Firearms, and Explosives Importation of Arms, Ammunition and Defense Articles—Removal of Certain Defense Articles Currently on the U.S. Munitions Import List That No Longer Warrant Import Control Under the Arms Export Control Act (2011R–25P) [Amended] ■ VerDate Mar<15>2010 $ 20,860 $ 23,610 § 381.505 [FR Doc. 2014–06596 Filed 3–26–14; 8:45 am] § 381.304 * $ 1,000 [Docket No. ATF–25I; AG Order No. 3423– 2014] Authority: 15 U.S.C. 717–717w; 16 U.S.C. 791–828c, 2601–2645; 31 U.S.C. 9701; 42 U.S.C. 7101–7352; 49 U.S.C. 60502; 49 App. U.S.C. 1–85. § 381.303 $ 100 $ 600 $ 18,570 $ 6,960 6. Section 381.403 is amended by removing ‘‘$ 12,130’’ and adding ‘‘$ 12,070’’ in its place. ■ 7. In 381.505, paragraph (a) is amended by removing ‘‘$ 20,960’’ and adding ‘‘$ 20,860’’ in its place and by removing ‘‘$ 23,720’’ and adding ‘‘$ 23,610’’ in its place. § 381.302 $ 100 $ 600 $ 35,410 27 CFR Part 447 [Amended] 1. The authority citation for part 381 continues to read as follows: ■ $ 24,260 DEPARTMENT OF JUSTICE 5. In 381.305, paragraph (a) is amended by removing ‘‘$ 6,990’’ and adding ‘‘$ 6,960’’ in its place. Anton C. Porter, Executive Director. $ 12,070 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\27MRR1.SGM 27MRR1 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations Comment date: Written comments must be postmarked and electronic comments must be submitted on or before June 25, 2014. Commenters should be aware that the electronic Federal Docket Management System will not accept comments after Midnight Eastern Time on the last day of the comment period. ADDRESSES: You may submit comments, identified by docket number (ATF 25I), by any of the following methods— • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Fax: (202) 648–9741. • Mail: George M. Fodor, Mailstop 6N–602, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 99 New York Avenue NE., Washington, DC 20226; ATTN: ATF 25I. Instructions: All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to the Federal eRulemaking portal, https:// www.regulations.gov, including any personal information provided. For detailed instructions on submitting comments and additional information on the rulemaking process, see the ‘‘Public Participation’’ heading of the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: George M. Fodor, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 99 New York Avenue NE, Washington, DC 20226; telephone: (202) 648–7070. SUPPLEMENTARY INFORMATION: sroberts on DSK5SPTVN1PROD with RULES I. Background Section 38 of the Arms Export Control Act of 1976 (AECA), 22 U.S.C. 2778, as amended, authorizes the President, in furtherance of world peace and the security and foreign policy of the United States, to control the import and the export of defense articles and defense services. 22 U.S.C. 2778(a)(1). The AECA also authorizes the President to designate those items that shall be considered defense articles and defense services for the purposes of section 38, and to promulgate regulations for the import and export of such articles and services. Id. Through Executive Order 13637 of March 8, 2013, the President delegated his AECA authority to the Secretary of State with respect to the export and temporary import of defense articles and VerDate Mar<15>2010 16:40 Mar 26, 2014 Jkt 232001 defense services. E.O. 13637, 78 FR 16129. The International Traffic in Arms Regulations (ITAR), 22 CFR part 120 et seq., implement the Secretary of State’s delegated authority and list the defense articles and defense services regulated for export, re-export, and temporary import by the Secretary of State. The items so designated constitute the State Department’s regulatory United States Munitions List (USML) of the ITAR. Also through Executive Order 13637, the President delegated to the Attorney General the authority under the AECA to control the permanent import of defense articles and defense services. E.O. 13637, 78 FR 16129. In exercising that authority, the Attorney General ‘‘shall be guided by the views of the Secretary of State on matters affecting world peace, and the external security and foreign policy of the United States.’’ Id. at sec. 1(n)(ii). Controlling the import of defense articles and defense services furthers United States foreign policy and national security interests and is a foreign affairs function of the U.S. Government. That executive order also requires that the Attorney General obtain the concurrence of the Secretary of State and the Secretary of Defense and provide notice to the Secretary of Commerce for designations, including changes in designations, of defense articles and defense services subject to permanent import control. Id. To distinguish the regulatory list of defense articles and defense services controlled by the Attorney General for permanent import from the regulatory list of defense articles and defense services controlled by the Secretary of State for export and temporary import, the list of defense articles and defense services controlled by the Attorney General for permanent import is the United States Munitions Import List (USMIL). The regulations governing this list appear at 27 CFR part 447. The Attorney General delegated administration of the import provisions of the AECA to the Director of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), subject to the direction of the Attorney General and the Deputy Attorney General. 28 CFR 0.130(a). ATF promulgated regulations that implement the provisions of section 38 of the AECA in 27 CFR part 447. With guidance from the Department of State and concurrence from the Departments of State and Defense pursuant to Executive Order 13637, ATF administers the list of items subject to import control under the USMIL, at 27 CFR 447.21. PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 17025 II. The President’s Export Control Reform Initiative In August 2009, the President directed a broad-based interagency review of the United States export control system in part to identify additional ways to enhance national security, better focus resources on protecting items for export that need to be protected, and provide clarity to make it easier for exporters to comply with regulations and for the United States Government to administer and enforce the regulations. As the result of a comprehensive review of export controls, it was determined that certain defense articles and defense services listed on the USML no longer warrant control for export purposes by the Secretary of State pursuant to the AECA. Pursuant to section 38(f) of the Arms Export Control Act, those defense articles are being transferred to the Department of Commerce’s Commerce Control List (CCL) for export control under the authority of the International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq. In effecting the President’s export control reform initiative, the export control reform interagency task force identified a way to improve the United States import control system to enhance national security and focus resources on protecting items for import that need to be protected. Accordingly, the task force requested ATF to identify those defense articles that no longer warrant control on the USMIL. III. Interim Final Rule ATF reviewed the USMIL in accordance with Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ and the export control reform interagency task force request. Those defense articles on the USMIL that ATF (acting through authority delegated from the President to the Attorney General, and in turn delegated by the Attorney General to ATF) has determined no longer warrant import control under the AECA are being removed from the USMIL. Controlling the permanent import of defense articles furthers United States foreign policy and national security interests and is a foreign affairs function of the U.S. Government. This interim final rule amends the regulations at 27 CFR 447.21 by removing those defense articles currently on the USMIL determined to no longer warrant import control under the AECA. The Department is removing from the USMIL Category I—Firearms, paragraph (e), ‘‘Riflescopes manufactured to military specifications and specifically designed or modified components E:\FR\FM\27MRR1.SGM 27MRR1 sroberts on DSK5SPTVN1PROD with RULES 17026 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations therefor.’’ The defense articles currently covered by Category I, paragraph (e) are readily available through diverse domestic commercial sources and they do not present a significant concern for trafficking or diversion into illicit channels. The defense articles currently covered by Category I, paragraph (e) do not warrant import control under the AECA. The Department reserves this paragraph. In Category III—Ammunition, the Department is removing and then reserving paragraphs (c), ‘‘Ammunition belting and linking machines,’’ and (d), ‘‘Ammunition manufacturing machines and ammunition loading machines (except handloading ones).’’ These defense articles are costly, difficult to maintain, too heavy for easy transport, and readily available from domestic vendors in the United States. These defense articles do not pose a trafficking and diversion threat warranting import control under the AECA. In addition, in Category IV—Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines, the Department is removing and reserving paragraph (f), ‘‘Ablative materials fabricated or semi-fabricated from advanced composites (e.g., silica, graphite, carbon, carbon/carbon, and boron filaments) for the articles in this category that are derived directly from or specifically developed or modified for defense articles.’’ Such materials are a low threat to domestic security and are readily available in the domestic market. In Category VI—Vessels of War and Special Naval Equipment, the Department is clarifying paragraph (a) to read: ‘‘Vessels of War, if they are armed and equipped with offensive or defensive weapons systems, including but not limited to amphibious warfare vessels, landing craft, mine warfare vessels, patrol vessels, auxiliary vessels, service craft, experimental types of naval ships, and any vessels specifically designed or modified for military purposes or other surface vessels equipped with offensive or defensive military systems.’’ The new text focuses precisely on defense articles that might threaten domestic security or enable terrorist activities. Further in Category VI—Vessels of War and Special Naval Equipment, the Department is revising paragraph (b) to read: ‘‘Turrets and gun mounts, special weapons systems, protective systems, and other components, parts, attachments, and accessories specifically designed or modified for such articles on combatant vessels.’’ The new language focuses on defense articles that might threaten domestic VerDate Mar<15>2010 16:40 Mar 26, 2014 Jkt 232001 security or enable terrorist activities. Also in Category VI, the Department is removing and reserving paragraphs (c) and (d). Mine sweeping equipment, harbor entrance detection devices, and related components and controls have numerous domestic suppliers and are low threats to domestic security. Additionally, the Department is revising the note in Category VI to clarify that the examples of vessels of war provided in Category VI must be armed and equipped with offensive or defensive weapon systems to be considered a defense article on the USMIL. The Department is updating Category VII—Tanks and Military Vehicles by removing and reserving paragraph (g), ‘‘Engines specifically designed or modified for the vehicles in paragraphs (a), (b), (c), and (f) of this category.’’ The defense articles listed in Category VII, paragraph (g) are substantially the same as those commercially available in the domestic market and not likely to be diverted for criminal use. The Department is revising paragraph (h) and including two explanatory notes. The Department is also adding a new paragraph (i), with a corresponding new note to Category VII to clarify that this category includes within its scope other ground vehicles that meet four technical parameters in the Wassenaar Arrangement’s Munitions List Category 6. In Category XIV—Toxicological Agents and Equipment and Radiological Equipment, the Department is removing and reserving paragraph (b) (biological agents) and revising paragraph (c) to limit regulation to all specifically designed or modified equipment, including components, parts, accessories, and attachments, for disseminating the articles in paragraph (a) of this category. The U.S. Department of Health and Human Services and the U.S. Department of Agriculture regulate the import and use of biological agents under such acts as the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107–56, and the Public Health Security and Bioterrorism Preparedness and Response Act of 2002, Public Law 107–188. Therefore, continued inclusion of these items on the USMIL is unnecessary to ensure domestic security. Further, by removing and reserving paragraph (d) (nuclear radiation detection and measuring devices manufactured to military specification) and paragraph (e) (components, parts, accessories, attachments, and associated equipment specifically designed or modified for the articles in paragraphs (c) and (d) of this PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 category), the Department recognizes the domestic availability of these articles and the associated low threat to domestic security. Finally, the Department is updating policies related to Category XVI— Nuclear Weapons Design and Test Equipment, to the extent that imports of these defense articles are under the control of the Department of Energy pursuant to the Atomic Energy Act of 1954, as amended, and the Nuclear Nonproliferation Act of 1978, as amended, or are government transfers authorized pursuant to these Acts. The Department is removing and reserving paragraph (a), (any article, material, equipment, or device, which is specifically designed or modified for use in the design, development, or fabrication of nuclear weapons or nuclear explosive devices), revising paragraph (b) to include modeling or simulation tools that model or simulate the environments generated by nuclear detonations or the effects of these environments on systems, subsystems, components, structures, or humans, and adding an explanatory note after paragraph (b) to indicate that Category XVI does not include equipment, technical data, or services controlled by the Department of Energy pursuant to the Atomic Energy Act of 1954, as amended, and the Nuclear NonProliferation Act of 1978, as amended, or are government transfers authorized pursuant to these Acts. Pursuant to Executive Order 13637, the Department of State and the Department of Defense have concurred on this interim final rule amending the USMIL. IV. Statutory and Executive Order Review A. Executive Order 12866 Because the amendments to 27 CFR part 447 involve a foreign affairs function of the United States, Executive Order 12866 does not apply. B. Executive Order 13132 This regulation will not have substantial direct effects on the States, on the relationship between the Federal Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with section 6 of Executive Order 13132, ‘‘Federalism’’, the Attorney General has determined that this regulation does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. E:\FR\FM\27MRR1.SGM 27MRR1 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations C. Executive Order 12988 This regulation meets the applicable standards set forth in subsections 3(a) and 3(b)(2) of Executive Order 12988, ‘‘Civil Justice Reform.’’ D. Administrative Procedure Act As reflected in 27 CFR 447.54, amendments made to 27 CFR part 447 are exempt from the rulemaking provisions of 5 U.S.C. 553 because this part involves a foreign affairs function of the United States. See 5 U.S.C. 553(a)(1). Accordingly, it is not necessary to issue this rule using the notice and public procedure set forth in 5 U.S.C. 553(b), and the requirement of a delayed effective date in 5 U.S.C. 553(d) does not apply. The Department of Justice nevertheless wishes to provide the public with an opportunity to participate in the regulatory process and provide feedback pursuant to Executive Order 13563, ‘‘Improving Regulation and Regulatory Review.’’ Accordingly, the Department is publishing this rule as an interim final rule with a 90-day provision for public comment and without prejudice to its determination that controlling the import of defense articles is a foreign affairs function of the United States Government. E. Regulatory Flexibility Act The provisions of the Regulatory Flexibility Act relating to an initial and final regulatory flexibility analysis are not applicable to this interim final rule because the Department is not publishing the rule as a general notice of proposed rulemaking under 5 U.S.C. 553 or any other law. See 5 U.S.C. 601 et seq. sroberts on DSK5SPTVN1PROD with RULES F. Small Business Regulatory Enforcement Fairness Act of 1996 This rule is not a major rule as defined by section 251 of the Small Business Regulatory Enforcement Fairness Act of 1996. 5 U.S.C. 804. This rule is not likely to result in an annual effect on the economy of $100 million or more; a major increase in costs or prices; or significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets. G. Unfunded Mandates Reform Act of 1995 This rule will not result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were VerDate Mar<15>2010 16:40 Mar 26, 2014 Jkt 232001 17027 The provisions of the Paperwork Reduction Act of 1995, Public Law 104– 13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this rule because there are no reporting or recordkeeping requirements. law shall be set forth on pages separate from the balance of the comment and shall be prominently marked ‘‘confidential’’ at the top of each page. Confidential information will be included in the rulemaking record but will not be disclosed to the public. Any comments containing material that is not confidential under law may be disclosed to the public. In any event, the name of the person submitting a comment is not exempt from disclosure. Public Participation C. Submitting Comments A. Comments Sought Comments may be submitted in any of three ways: • Mail: Send written comments to the address listed in the ADDRESSES section of this document. Written comments must appear in minimum 12 point font size (.17 inches), include your mailing address, and be signed, and may be of any length. • Facsimile: You may submit comments by facsimile transmission to (202) 648–9741. Faxed comments must: (1) Be legible and appear in minimum 12 point font size (.17 inches); (2) Be on 81⁄2″ x 11″ paper; (3) Contain a legible, written signature; and (4) Be no more than five pages long. ATF will not accept faxed comments that exceed five pages. • Federal eRulemaking Portal: To submit comments to ATF via the federal eRulemaking portal, visit https:// www.regulations.gov and follow the instructions for submitting comments. deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. See 2 U.S.C. 1501 et seq. H. Paperwork Reduction Act The Department is requesting comments on the interim final rule from all interested persons. The Department is also specifically requesting comments on the clarity of this interim final rule and how it may be made easier to understand. All comments must reference this document docket number (ATF 25I), be legible, and include your name and mailing address. The Department will treat all comments as originals and will not acknowledge receipt of comments. Comments received on or before the closing date will be carefully considered. Comments received after that date will be given the same consideration if it is practical to do so, but assurance of consideration cannot be given except as to comments received on or before the closing date. B. Confidentiality Comments, whether submitted electronically or on paper, will be made available for public viewing at ATF, and on the Internet as part of the eRulemaking initiative, and are subject to the Freedom of Information Act. Commenters who do not want their name or other personal identifying information posted on the Internet should submit their comment by mail or facsimile, along with a separate cover sheet that contains their personal identifying information. Both the cover sheet and comment must reference this docket number. Information contained in the cover sheet will not be posted on the Internet. Any personal identifying information that appears within the comment will be posted on the Internet and will not be redacted by ATF. Any material that the commenter considers to be inappropriate for disclosure to the public should not be included in the comment. Any person submitting a comment shall specifically designate that portion (if any) of the comment that contains material that is confidential under law (e.g., trade secrets, processes, etc.). Any portion of a comment that is confidential under PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 Disclosure Copies of this interim rule and the comments received will be available for public inspection online at www.regulations.gov and by appointment during normal business hours at: ATF Reading Room, Room 1E– 062, 99 New York Avenue NE., Washington, DC 20226, telephone (202) 648–8740. Drafting Information The author of this document is George M. Fodor, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives. List of Subjects in 27 CFR Part 447 Administrative practice and procedure, Arms control, Arms and munitions, Authority delegation, Chemicals, Customs duties and inspection, Imports, Penalties, Reporting and recordkeeping requirements, Scientific equipment, Seizures and forfeitures. E:\FR\FM\27MRR1.SGM 27MRR1 17028 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations Authority and Issuance Accordingly, for the reasons discussed in the preamble, part 447 of title 27 of the Code of Federal Regulations is amended as follows: PART 447—IMPORTATION OF ARMS, AMMUNITION AND DEFENSE ARTICLES 1. The authority citation for 27 CFR part 447 continues to read as follows: ■ Authority: 22 U.S.C. 2778. 2. Amend § 447.21 as follows: a. In Category I, remove and reserve paragraph (e). ■ b. In Category III, remove and reserve paragraphs (c) and (d). ■ c. In Category IV, remove and reserve paragraph (f). ■ d. In Category VI: ■ (1) Revise paragraph (a); ■ (2) Revise paragraph (b); ■ (3) Remove and reserve paragraphs (c) and (d); and ■ (4) Revise the introductory text of the ‘‘Note’’ after paragraph (e). ■ e. In Category VII: ■ (1) Remove and reserve paragraph (g); ■ (2) Revise paragraph (h); ■ (3) Add a new paragraph (i) after paragraph (h); ■ (4) Revise the ‘‘Note’’ that now appears after the newly inserted paragraph (i); and ■ (5) Add a second ‘‘Note’’ and a third ‘‘Note’’ after the newly inserted paragraph (i). ■ f. In Category XIV: ■ (1) Remove and reserve paragraph (b); ■ (2) Revise paragraph (c); and ■ (3) Remove and reserve paragraphs (d) and (e). ■ g. In Category XVI: ■ (1) Remove and reserve paragraph (a); ■ (2) Revise paragraph (b); and ■ (3) Add a ‘‘Note’’ after paragraph (b). These amendments to § 447.21 read as follows: ■ ■ § 447.21 * * The U.S. Munitions Import List. * * * CATEGORY I—FIREARMS * * * * (e) [Reserved] * * * * * * CATEGORY III—AMMUNITION sroberts on DSK5SPTVN1PROD with RULES * * * * (c) [Reserved] (d) [Reserved] * * * * * * CATEGORY IV—LAUNCH VEHICLES, GUIDED MISSILES, BALLISTIC MISSILES, ROCKETS, TORPEDOES, BOMBS AND MINES * * * VerDate Mar<15>2010 * * 16:40 Mar 26, 2014 Jkt 232001 * (f) [Reserved] * * * * CATEGORY VI—VESSELS OF WAR AND SPECIAL NAVAL EQUIPMENT (a) Vessels of War, if they are armed and equipped with offensive or defensive weapon systems, including but not limited to amphibious warfare vessels, landing craft, mine warfare vessels, patrol vessels, auxiliary vessels, service craft, experimental types of naval ships, and any vessels specifically designed or modified for military purposes or other surface vessels equipped with offensive or defensive military systems. (b) Turrets and gun mounts, special weapons systems, protective systems, and other components, parts, attachments, and accessories specifically designed or modified for such articles on combatant vessels. (c) [Reserved] (d) [Reserved] (e) * * * Note: The term ‘‘vessels of war’’ includes, but is not limited to, the following, if armed and equipped with offensive or defensive weapons systems:’’. * * * * * CATEGORY VII—TANKS AND MILITARY VEHICLES * * * * * (g) [Reserved] (h) Tank and military vehicle parts, components, accessories, attachments, and associated equipment for offensive or defensive systems for the articles in this category, as follows: (1) Armored hulls, armored turrets and turret support rings; (2) Active protection systems (i.e., defensive systems that actively detect and track incoming threats and launch a ballistic, explosive, energy or electromagnetic countermeasure(s) to neutralize the threat prior to contact with a vehicle); (3) Composite armor parts and components; (4) Spaced armor components and parts, including slat armor parts and components; (5) Reactive armor and components; (6) Electromagnetic armor parts and components, including pulsed power; (7) Gun mount, stabilization, turret drive, and automatic elevating systems; (8) Kits specifically designed to convert a vehicle in this category into either an unmanned or a driver-optional vehicle. For a kit to be controlled by this paragraph it must include all of the following: (i) Remote or autonomous steering; (ii) Acceleration and braking; and PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 (iii) A control system; (9) Fire control computers, stored management systems, armaments control processors, vehicle weapon interface units and computers; (10) Electro-optical sighting systems; and (11) Laser rangefinder or target designating devices. (i) Other ground vehicles having all of the following: (1) Manufactured or fitted with materials or components to provide ballistic protection to level III (NIJ 0108.01, September 1985) or better; (2) A transmission to provide drive to both front and rear wheels simultaneously, including those vehicles having additional wheels for load bearing purposes whether driven or not; (3) Gross Vehicle Weight Rating (GVWR) greater than 4,500 kg; and (4) Designed or modified for off-road use. Note: An ‘‘amphibious vehicle’’ in Category VII(f) is a vehicle or chassis that is equipped to meet special military requirements, and that is designed or adapted for operation on or under water, as well as on land. Note: Engines and engine parts are not included in paragraph (h) of Category VII. Note: Paragraph (i) of Category VII does not apply to civil vehicles designed or modified for transporting money or valuables. * * * * * CATEGORY XIV—TOXICOLOGICAL AGENTS AND EQUIPMENT AND RADIOLOGICAL EQUIPMENT * * * * * (b) [Reserved] (c) All specifically designed or modified equipment, including components, parts, accessories, and attachments for disseminating the articles in paragraph (a) of this category. (d) [Reserved] (e) [Reserved] * * * * * CATEGORY XVI—NUCLEAR WEAPONS DESIGN AND TEST EQUIPMENT (a) [Reserved] (b) Modeling or simulation tools that model or simulate the environments generated by nuclear detonations or the effects of these environments on systems, subsystems, components, structures, or humans. Note: Category XVI does not include equipment, technical data, or services controlled by the Department of Energy pursuant to the Atomic Energy Act of 1954, as amended, and the Nuclear Non- E:\FR\FM\27MRR1.SGM 27MRR1 Federal Register / Vol. 79, No. 59 / Thursday, March 27, 2014 / Rules and Regulations Proliferation Act of 1978, as amended, or are government transfers authorized pursuant to these Acts. * * * * * Dated: March 21, 2014. Eric H. Holder, Jr., Attorney General. that a part of the closure remain attached to the container when opened. This amendment will align the regulations for such products with those applicable to domestic distilled spirits products. Effective Date: April 28, 2014. Kate M. Bresnahan, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, at 202–453–1039, ext. 151. DATES: FOR FURTHER INFORMATION CONTACT: [FR Doc. 2014–06778 Filed 3–26–14; 8:45 am] BILLING CODE 4410–FY–P DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: Alcohol and Tobacco Tax and Trade Bureau Background TTB Authority 27 CFR Parts 19, 26, 27, and 73 [Docket No. TTB–2014–0004; T.D. TTB–119] RIN 1513–AB97 Electronic Submission of Forms, the Finished Products Records for Distilled Spirits Plants, and Closures on Certain Distilled Spirits Products Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Direct final rule; Treasury decision. AGENCY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) is amending its regulations regarding the electronic submission of forms to provide for the electronic submission to TTB of copies of certain forms, where the original is to be retained by the submitter along with other records. This amendment removes a barrier that industry members have faced when trying to apply for permits completely by electronic means. TTB is also amending its regulations to address circumstances where TTB requires certain information to be submitted to other agencies. Specifically, the amendments provide that TTB requirements for information to be submitted to another agency may be met by the electronic submission of the information, as long as the other agency has provided for such a submission of information by electronic means. In addition, TTB is amending its regulations governing the records that distilled spirits plant (DSP) proprietors must keep of finished products. Specifically, TTB is removing the requirement that DSP proprietors keep a daily summary record of the kind of distilled spirits bottled or packaged. Finally, TTB is amending its regulations regarding closures that must be affixed to containers of imported distilled spirits products or of such products brought into the United States from Puerto Rico or the Virgin Islands. The amendments remove a requirement sroberts on DSK5SPTVN1PROD with RULES SUMMARY: VerDate Mar<15>2010 16:40 Mar 26, 2014 Jkt 232001 The Internal Revenue Code of 1986, as amended (IRC), at 26 U.S.C. chapters 51 and 52, provides for the regulation of certain alcohol- and tobacco-related businesses. In addition, the Federal Alcohol Administration Act (FAA Act), at 27 U.S.C. chapter 8, provides for the regulation of certain operations of beverage alcohol businesses. Chapters 51 and 52 of the IRC and sections 103 and 104 of the FAA Act (27 U.S.C. 203 and 204) vest the Secretary of the Treasury with authority to prescribe regulations related to the issuance of permits, registrations, and notices for such businesses. The IRC provisions also include requirements for persons operating in certain alcohol and tobacco industries to obtain bonds and to submit reports and other documents related to regulated operations. In addition, section 4222 of the IRC (26 U.S.C. 4222) establishes registration requirements for persons who make tax-free sales of firearms and ammunition. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers these provisions, pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120–01 (Revised), dated December 10, 2013, to the TTB Administrator to perform the functions and duties in administration and enforcement of these laws. Electronic Submission of Forms and Use of Electronic Signatures on Forms TTB regulations implementing the permit, registration, and notice requirements of the IRC and the FAA Act are promulgated in chapter I of title 27 of the Code of Federal Regulations (27 CFR chapter I). These regulations require certain current and prospective industry members to obtain approval before commencing a new TTBregulated industry operation and to update permit information for an PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 17029 existing TTB-regulated business. These regulations also require that certain forms, reports, and other documents be submitted to TTB, depending on the operation. These documents may include operational reports, bonds, and powers of attorney, where applicable. In addition, some provisions require that the regulated industry members submit documents to other agencies. For example, provisions relating to the importation of the regulated commodities require that, in some circumstances, documents must be submitted to U.S. Customs and Border Protection (CBP) during the entry process. The TTB regulations currently implementing those requirements generally provide for the submission to TTB of applications and other documents in paper form. Under certain conditions, forms may be submitted electronically through an electronic document receiving system. The electronic submission of forms to TTB is governed by the TTB regulations at part 73 (27 CFR part 73). Part 73 sets forth the conditions under which TTB will allow current and prospective industry members to submit forms to TTB electronically, and to use electronic signatures or digital signatures to sign those forms, in lieu of submitting paper forms with handwritten signatures. These regulations do not currently address the electronic submission of TTB-required forms and documents to other agencies. Pursuant to the TTB regulations at 27 CFR 73.31, TTB-regulated industry members may submit an electronic form instead of a paper form to satisfy any reporting requirement in chapter I of Title 27 CFR under certain conditions. Currently, the conditions are as follows: (1) TTB has published a notice in the Federal Register and on its Web site (https://www.ttb.gov) announcing that it is prepared to receive a particular form electronically; (2) the person required to submit the form has registered to do so, pursuant to the instructions in that notice; (3) that person submits the electronic form to an electronic document receiving system that TTB has designated for the receipt of that specific form; and (4) the electronic form bears valid electronic signatures, as provided in subpart B of part 73, to the same extent that the paper form for which it substitutes would bear handwritten signatures. Amendments to Part 73 Recently, TTB has facilitated electronic communications and transactions in many ways. For example, TTB has made a number of E:\FR\FM\27MRR1.SGM 27MRR1

Agencies

[Federal Register Volume 79, Number 59 (Thursday, March 27, 2014)]
[Rules and Regulations]
[Pages 17024-17029]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06778]


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DEPARTMENT OF JUSTICE

Bureau of Alcohol, Tobacco, Firearms, and Explosives

27 CFR Part 447

[Docket No. ATF-25I; AG Order No. 3423-2014]
RIN 1140-AA45


Importation of Arms, Ammunition and Defense Articles--Removal of 
Certain Defense Articles Currently on the U.S. Munitions Import List 
That No Longer Warrant Import Control Under the Arms Export Control Act 
(2011R-25P)

AGENCY: Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), 
Department of Justice.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Department of Justice is amending Bureau of Alcohol, 
Tobacco, Firearms, and Explosives (ATF) regulations to remove those 
defense articles currently on the U.S. Munitions Import List that ATF 
by delegation has determined no longer warrant import control under the 
Arms Export Control Act.

DATES: Effective date: This interim final rule is effective April 28, 
2014.

[[Page 17025]]

    Comment date: Written comments must be postmarked and electronic 
comments must be submitted on or before June 25, 2014. Commenters 
should be aware that the electronic Federal Docket Management System 
will not accept comments after Midnight Eastern Time on the last day of 
the comment period.

ADDRESSES: You may submit comments, identified by docket number (ATF 
25I), by any of the following methods--
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Fax: (202) 648-9741.
     Mail: George M. Fodor, Mailstop 6N-602, Office of 
Regulatory Affairs, Enforcement Programs and Services, Bureau of 
Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 
99 New York Avenue NE., Washington, DC 20226; ATTN: ATF 25I.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to the Federal eRulemaking portal, https://www.regulations.gov, including any personal information provided. For 
detailed instructions on submitting comments and additional information 
on the rulemaking process, see the ``Public Participation'' heading of 
the SUPPLEMENTARY INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: George M. Fodor, Office of Regulatory 
Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, 
Firearms, and Explosives, U.S. Department of Justice, 99 New York 
Avenue NE, Washington, DC 20226; telephone: (202) 648-7070.

SUPPLEMENTARY INFORMATION:

I. Background

    Section 38 of the Arms Export Control Act of 1976 (AECA), 22 U.S.C. 
2778, as amended, authorizes the President, in furtherance of world 
peace and the security and foreign policy of the United States, to 
control the import and the export of defense articles and defense 
services. 22 U.S.C. 2778(a)(1). The AECA also authorizes the President 
to designate those items that shall be considered defense articles and 
defense services for the purposes of section 38, and to promulgate 
regulations for the import and export of such articles and services. 
Id.
    Through Executive Order 13637 of March 8, 2013, the President 
delegated his AECA authority to the Secretary of State with respect to 
the export and temporary import of defense articles and defense 
services. E.O. 13637, 78 FR 16129. The International Traffic in Arms 
Regulations (ITAR), 22 CFR part 120 et seq., implement the Secretary of 
State's delegated authority and list the defense articles and defense 
services regulated for export, re-export, and temporary import by the 
Secretary of State. The items so designated constitute the State 
Department's regulatory United States Munitions List (USML) of the 
ITAR.
    Also through Executive Order 13637, the President delegated to the 
Attorney General the authority under the AECA to control the permanent 
import of defense articles and defense services. E.O. 13637, 78 FR 
16129. In exercising that authority, the Attorney General ``shall be 
guided by the views of the Secretary of State on matters affecting 
world peace, and the external security and foreign policy of the United 
States.'' Id. at sec. 1(n)(ii). Controlling the import of defense 
articles and defense services furthers United States foreign policy and 
national security interests and is a foreign affairs function of the 
U.S. Government. That executive order also requires that the Attorney 
General obtain the concurrence of the Secretary of State and the 
Secretary of Defense and provide notice to the Secretary of Commerce 
for designations, including changes in designations, of defense 
articles and defense services subject to permanent import control. Id.
    To distinguish the regulatory list of defense articles and defense 
services controlled by the Attorney General for permanent import from 
the regulatory list of defense articles and defense services controlled 
by the Secretary of State for export and temporary import, the list of 
defense articles and defense services controlled by the Attorney 
General for permanent import is the United States Munitions Import List 
(USMIL). The regulations governing this list appear at 27 CFR part 447.
    The Attorney General delegated administration of the import 
provisions of the AECA to the Director of the Bureau of Alcohol, 
Tobacco, Firearms, and Explosives (ATF), subject to the direction of 
the Attorney General and the Deputy Attorney General. 28 CFR 0.130(a). 
ATF promulgated regulations that implement the provisions of section 38 
of the AECA in 27 CFR part 447. With guidance from the Department of 
State and concurrence from the Departments of State and Defense 
pursuant to Executive Order 13637, ATF administers the list of items 
subject to import control under the USMIL, at 27 CFR 447.21.

II. The President's Export Control Reform Initiative

    In August 2009, the President directed a broad-based interagency 
review of the United States export control system in part to identify 
additional ways to enhance national security, better focus resources on 
protecting items for export that need to be protected, and provide 
clarity to make it easier for exporters to comply with regulations and 
for the United States Government to administer and enforce the 
regulations. As the result of a comprehensive review of export 
controls, it was determined that certain defense articles and defense 
services listed on the USML no longer warrant control for export 
purposes by the Secretary of State pursuant to the AECA. Pursuant to 
section 38(f) of the Arms Export Control Act, those defense articles 
are being transferred to the Department of Commerce's Commerce Control 
List (CCL) for export control under the authority of the International 
Emergency Economic Powers Act, 50 U.S.C. 1701 et seq.
    In effecting the President's export control reform initiative, the 
export control reform interagency task force identified a way to 
improve the United States import control system to enhance national 
security and focus resources on protecting items for import that need 
to be protected. Accordingly, the task force requested ATF to identify 
those defense articles that no longer warrant control on the USMIL.

III. Interim Final Rule

    ATF reviewed the USMIL in accordance with Executive Order 13563, 
``Improving Regulation and Regulatory Review,'' and the export control 
reform interagency task force request. Those defense articles on the 
USMIL that ATF (acting through authority delegated from the President 
to the Attorney General, and in turn delegated by the Attorney General 
to ATF) has determined no longer warrant import control under the AECA 
are being removed from the USMIL. Controlling the permanent import of 
defense articles furthers United States foreign policy and national 
security interests and is a foreign affairs function of the U.S. 
Government. This interim final rule amends the regulations at 27 CFR 
447.21 by removing those defense articles currently on the USMIL 
determined to no longer warrant import control under the AECA.
    The Department is removing from the USMIL Category I--Firearms, 
paragraph (e), ``Riflescopes manufactured to military specifications 
and specifically designed or modified components

[[Page 17026]]

therefor.'' The defense articles currently covered by Category I, 
paragraph (e) are readily available through diverse domestic commercial 
sources and they do not present a significant concern for trafficking 
or diversion into illicit channels. The defense articles currently 
covered by Category I, paragraph (e) do not warrant import control 
under the AECA. The Department reserves this paragraph.
    In Category III--Ammunition, the Department is removing and then 
reserving paragraphs (c), ``Ammunition belting and linking machines,'' 
and (d), ``Ammunition manufacturing machines and ammunition loading 
machines (except handloading ones).'' These defense articles are 
costly, difficult to maintain, too heavy for easy transport, and 
readily available from domestic vendors in the United States. These 
defense articles do not pose a trafficking and diversion threat 
warranting import control under the AECA.
    In addition, in Category IV--Launch Vehicles, Guided Missiles, 
Ballistic Missiles, Rockets, Torpedoes, Bombs and Mines, the Department 
is removing and reserving paragraph (f), ``Ablative materials 
fabricated or semi-fabricated from advanced composites (e.g., silica, 
graphite, carbon, carbon/carbon, and boron filaments) for the articles 
in this category that are derived directly from or specifically 
developed or modified for defense articles.'' Such materials are a low 
threat to domestic security and are readily available in the domestic 
market.
    In Category VI--Vessels of War and Special Naval Equipment, the 
Department is clarifying paragraph (a) to read: ``Vessels of War, if 
they are armed and equipped with offensive or defensive weapons 
systems, including but not limited to amphibious warfare vessels, 
landing craft, mine warfare vessels, patrol vessels, auxiliary vessels, 
service craft, experimental types of naval ships, and any vessels 
specifically designed or modified for military purposes or other 
surface vessels equipped with offensive or defensive military 
systems.'' The new text focuses precisely on defense articles that 
might threaten domestic security or enable terrorist activities.
    Further in Category VI--Vessels of War and Special Naval Equipment, 
the Department is revising paragraph (b) to read: ``Turrets and gun 
mounts, special weapons systems, protective systems, and other 
components, parts, attachments, and accessories specifically designed 
or modified for such articles on combatant vessels.'' The new language 
focuses on defense articles that might threaten domestic security or 
enable terrorist activities. Also in Category VI, the Department is 
removing and reserving paragraphs (c) and (d). Mine sweeping equipment, 
harbor entrance detection devices, and related components and controls 
have numerous domestic suppliers and are low threats to domestic 
security. Additionally, the Department is revising the note in Category 
VI to clarify that the examples of vessels of war provided in Category 
VI must be armed and equipped with offensive or defensive weapon 
systems to be considered a defense article on the USMIL.
    The Department is updating Category VII--Tanks and Military 
Vehicles by removing and reserving paragraph (g), ``Engines 
specifically designed or modified for the vehicles in paragraphs (a), 
(b), (c), and (f) of this category.'' The defense articles listed in 
Category VII, paragraph (g) are substantially the same as those 
commercially available in the domestic market and not likely to be 
diverted for criminal use. The Department is revising paragraph (h) and 
including two explanatory notes. The Department is also adding a new 
paragraph (i), with a corresponding new note to Category VII to clarify 
that this category includes within its scope other ground vehicles that 
meet four technical parameters in the Wassenaar Arrangement's Munitions 
List Category 6.
    In Category XIV--Toxicological Agents and Equipment and 
Radiological Equipment, the Department is removing and reserving 
paragraph (b) (biological agents) and revising paragraph (c) to limit 
regulation to all specifically designed or modified equipment, 
including components, parts, accessories, and attachments, for 
disseminating the articles in paragraph (a) of this category. The U.S. 
Department of Health and Human Services and the U.S. Department of 
Agriculture regulate the import and use of biological agents under such 
acts as the Uniting and Strengthening America by Providing Appropriate 
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public 
Law 107-56, and the Public Health Security and Bioterrorism 
Preparedness and Response Act of 2002, Public Law 107-188. Therefore, 
continued inclusion of these items on the USMIL is unnecessary to 
ensure domestic security. Further, by removing and reserving paragraph 
(d) (nuclear radiation detection and measuring devices manufactured to 
military specification) and paragraph (e) (components, parts, 
accessories, attachments, and associated equipment specifically 
designed or modified for the articles in paragraphs (c) and (d) of this 
category), the Department recognizes the domestic availability of these 
articles and the associated low threat to domestic security.
    Finally, the Department is updating policies related to Category 
XVI--Nuclear Weapons Design and Test Equipment, to the extent that 
imports of these defense articles are under the control of the 
Department of Energy pursuant to the Atomic Energy Act of 1954, as 
amended, and the Nuclear Non-proliferation Act of 1978, as amended, or 
are government transfers authorized pursuant to these Acts. The 
Department is removing and reserving paragraph (a), (any article, 
material, equipment, or device, which is specifically designed or 
modified for use in the design, development, or fabrication of nuclear 
weapons or nuclear explosive devices), revising paragraph (b) to 
include modeling or simulation tools that model or simulate the 
environments generated by nuclear detonations or the effects of these 
environments on systems, subsystems, components, structures, or humans, 
and adding an explanatory note after paragraph (b) to indicate that 
Category XVI does not include equipment, technical data, or services 
controlled by the Department of Energy pursuant to the Atomic Energy 
Act of 1954, as amended, and the Nuclear Non-Proliferation Act of 1978, 
as amended, or are government transfers authorized pursuant to these 
Acts.
    Pursuant to Executive Order 13637, the Department of State and the 
Department of Defense have concurred on this interim final rule 
amending the USMIL.

IV. Statutory and Executive Order Review

A. Executive Order 12866

    Because the amendments to 27 CFR part 447 involve a foreign affairs 
function of the United States, Executive Order 12866 does not apply.

B. Executive Order 13132

    This regulation will not have substantial direct effects on the 
States, on the relationship between the Federal Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with section 6 
of Executive Order 13132, ``Federalism'', the Attorney General has 
determined that this regulation does not have sufficient federalism 
implications to warrant the preparation of a federalism summary impact 
statement.

[[Page 17027]]

C. Executive Order 12988

    This regulation meets the applicable standards set forth in 
subsections 3(a) and 3(b)(2) of Executive Order 12988, ``Civil Justice 
Reform.''

D. Administrative Procedure Act

    As reflected in 27 CFR 447.54, amendments made to 27 CFR part 447 
are exempt from the rulemaking provisions of 5 U.S.C. 553 because this 
part involves a foreign affairs function of the United States. See 5 
U.S.C. 553(a)(1). Accordingly, it is not necessary to issue this rule 
using the notice and public procedure set forth in 5 U.S.C. 553(b), and 
the requirement of a delayed effective date in 5 U.S.C. 553(d) does not 
apply. The Department of Justice nevertheless wishes to provide the 
public with an opportunity to participate in the regulatory process and 
provide feedback pursuant to Executive Order 13563, ``Improving 
Regulation and Regulatory Review.'' Accordingly, the Department is 
publishing this rule as an interim final rule with a 90-day provision 
for public comment and without prejudice to its determination that 
controlling the import of defense articles is a foreign affairs 
function of the United States Government.

E. Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to an 
initial and final regulatory flexibility analysis are not applicable to 
this interim final rule because the Department is not publishing the 
rule as a general notice of proposed rulemaking under 5 U.S.C. 553 or 
any other law. See 5 U.S.C. 601 et seq.

F. Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 251 of the 
Small Business Regulatory Enforcement Fairness Act of 1996. 5 U.S.C. 
804. This rule is not likely to result in an annual effect on the 
economy of $100 million or more; a major increase in costs or prices; 
or significant adverse effects on competition, employment, investment, 
productivity, innovation, or the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

G. Unfunded Mandates Reform Act of 1995

    This rule will not result in the expenditure by State, local and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995. See 2 U.S.C. 1501 et seq.

H. Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Public Law 
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this rule because there are no reporting or 
recordkeeping requirements.

Public Participation

A. Comments Sought

    The Department is requesting comments on the interim final rule 
from all interested persons. The Department is also specifically 
requesting comments on the clarity of this interim final rule and how 
it may be made easier to understand.
    All comments must reference this document docket number (ATF 25I), 
be legible, and include your name and mailing address. The Department 
will treat all comments as originals and will not acknowledge receipt 
of comments.
    Comments received on or before the closing date will be carefully 
considered. Comments received after that date will be given the same 
consideration if it is practical to do so, but assurance of 
consideration cannot be given except as to comments received on or 
before the closing date.

B. Confidentiality

    Comments, whether submitted electronically or on paper, will be 
made available for public viewing at ATF, and on the Internet as part 
of the eRulemaking initiative, and are subject to the Freedom of 
Information Act. Commenters who do not want their name or other 
personal identifying information posted on the Internet should submit 
their comment by mail or facsimile, along with a separate cover sheet 
that contains their personal identifying information. Both the cover 
sheet and comment must reference this docket number. Information 
contained in the cover sheet will not be posted on the Internet. Any 
personal identifying information that appears within the comment will 
be posted on the Internet and will not be redacted by ATF.
    Any material that the commenter considers to be inappropriate for 
disclosure to the public should not be included in the comment. Any 
person submitting a comment shall specifically designate that portion 
(if any) of the comment that contains material that is confidential 
under law (e.g., trade secrets, processes, etc.). Any portion of a 
comment that is confidential under law shall be set forth on pages 
separate from the balance of the comment and shall be prominently 
marked ``confidential'' at the top of each page. Confidential 
information will be included in the rulemaking record but will not be 
disclosed to the public. Any comments containing material that is not 
confidential under law may be disclosed to the public. In any event, 
the name of the person submitting a comment is not exempt from 
disclosure.

C. Submitting Comments

    Comments may be submitted in any of three ways:
     Mail: Send written comments to the address listed in the 
ADDRESSES section of this document. Written comments must appear in 
minimum 12 point font size (.17 inches), include your mailing address, 
and be signed, and may be of any length.
     Facsimile: You may submit comments by facsimile 
transmission to (202) 648-9741. Faxed comments must:
    (1) Be legible and appear in minimum 12 point font size (.17 
inches);
    (2) Be on 8\1/2\'' x 11'' paper;
    (3) Contain a legible, written signature; and
    (4) Be no more than five pages long. ATF will not accept faxed 
comments that exceed five pages.
     Federal eRulemaking Portal: To submit comments to ATF via 
the federal eRulemaking portal, visit https://www.regulations.gov and 
follow the instructions for submitting comments.

Disclosure

    Copies of this interim rule and the comments received will be 
available for public inspection online at www.regulations.gov and by 
appointment during normal business hours at: ATF Reading Room, Room 1E-
062, 99 New York Avenue NE., Washington, DC 20226, telephone (202) 648-
8740.

Drafting Information

    The author of this document is George M. Fodor, Office of 
Regulatory Affairs, Enforcement Programs and Services, Bureau of 
Alcohol, Tobacco, Firearms, and Explosives.

List of Subjects in 27 CFR Part 447

    Administrative practice and procedure, Arms control, Arms and 
munitions, Authority delegation, Chemicals, Customs duties and 
inspection, Imports, Penalties, Reporting and recordkeeping 
requirements, Scientific equipment, Seizures and forfeitures.

[[Page 17028]]

Authority and Issuance

    Accordingly, for the reasons discussed in the preamble, part 447 of 
title 27 of the Code of Federal Regulations is amended as follows:

PART 447--IMPORTATION OF ARMS, AMMUNITION AND DEFENSE ARTICLES

0
1. The authority citation for 27 CFR part 447 continues to read as 
follows:

    Authority: 22 U.S.C. 2778.


0
2. Amend Sec.  447.21 as follows:
0
a. In Category I, remove and reserve paragraph (e).
0
b. In Category III, remove and reserve paragraphs (c) and (d).
0
c. In Category IV, remove and reserve paragraph (f).
0
d. In Category VI:
0
(1) Revise paragraph (a);
0
(2) Revise paragraph (b);
0
(3) Remove and reserve paragraphs (c) and (d); and
0
(4) Revise the introductory text of the ``Note'' after paragraph (e).
0
e. In Category VII:
0
(1) Remove and reserve paragraph (g);
0
(2) Revise paragraph (h);
0
(3) Add a new paragraph (i) after paragraph (h);
0
(4) Revise the ``Note'' that now appears after the newly inserted 
paragraph (i); and
0
(5) Add a second ``Note'' and a third ``Note'' after the newly inserted 
paragraph (i).
0
f. In Category XIV:
0
(1) Remove and reserve paragraph (b);
0
(2) Revise paragraph (c); and
0
(3) Remove and reserve paragraphs (d) and (e).
0
g. In Category XVI:
0
(1) Remove and reserve paragraph (a);
0
(2) Revise paragraph (b); and
0
(3) Add a ``Note'' after paragraph (b).
    These amendments to Sec.  447.21 read as follows:


Sec.  447.21  The U.S. Munitions Import List.

* * * * *
CATEGORY I--FIREARMS
* * * * *
    (e) [Reserved]
* * * * *
CATEGORY III--AMMUNITION
* * * * *
    (c) [Reserved]
    (d) [Reserved]
* * * * *
CATEGORY IV--LAUNCH VEHICLES, GUIDED MISSILES, BALLISTIC MISSILES, 
ROCKETS, TORPEDOES, BOMBS AND MINES
* * * * *
    (f) [Reserved]
* * * * *
CATEGORY VI--VESSELS OF WAR AND SPECIAL NAVAL EQUIPMENT
    (a) Vessels of War, if they are armed and equipped with offensive 
or defensive weapon systems, including but not limited to amphibious 
warfare vessels, landing craft, mine warfare vessels, patrol vessels, 
auxiliary vessels, service craft, experimental types of naval ships, 
and any vessels specifically designed or modified for military purposes 
or other surface vessels equipped with offensive or defensive military 
systems.
    (b) Turrets and gun mounts, special weapons systems, protective 
systems, and other components, parts, attachments, and accessories 
specifically designed or modified for such articles on combatant 
vessels.
    (c) [Reserved]
    (d) [Reserved]
    (e) * * *

    Note: The term ``vessels of war'' includes, but is not limited 
to, the following, if armed and equipped with offensive or defensive 
weapons systems:''.

* * * * *
CATEGORY VII--TANKS AND MILITARY VEHICLES
* * * * *
    (g) [Reserved]
    (h) Tank and military vehicle parts, components, accessories, 
attachments, and associated equipment for offensive or defensive 
systems for the articles in this category, as follows:
    (1) Armored hulls, armored turrets and turret support rings;
    (2) Active protection systems (i.e., defensive systems that 
actively detect and track incoming threats and launch a ballistic, 
explosive, energy or electromagnetic countermeasure(s) to neutralize 
the threat prior to contact with a vehicle);
    (3) Composite armor parts and components;
    (4) Spaced armor components and parts, including slat armor parts 
and components;
    (5) Reactive armor and components;
    (6) Electromagnetic armor parts and components, including pulsed 
power;
    (7) Gun mount, stabilization, turret drive, and automatic elevating 
systems;
    (8) Kits specifically designed to convert a vehicle in this 
category into either an unmanned or a driver-optional vehicle. For a 
kit to be controlled by this paragraph it must include all of the 
following:
    (i) Remote or autonomous steering;
    (ii) Acceleration and braking; and
    (iii) A control system;
    (9) Fire control computers, stored management systems, armaments 
control processors, vehicle weapon interface units and computers;
    (10) Electro-optical sighting systems; and
    (11) Laser rangefinder or target designating devices.
    (i) Other ground vehicles having all of the following:
    (1) Manufactured or fitted with materials or components to provide 
ballistic protection to level III (NIJ 0108.01, September 1985) or 
better;
    (2) A transmission to provide drive to both front and rear wheels 
simultaneously, including those vehicles having additional wheels for 
load bearing purposes whether driven or not;
    (3) Gross Vehicle Weight Rating (GVWR) greater than 4,500 kg; and
    (4) Designed or modified for off-road use.

    Note: An ``amphibious vehicle'' in Category VII(f) is a vehicle 
or chassis that is equipped to meet special military requirements, 
and that is designed or adapted for operation on or under water, as 
well as on land.


    Note: Engines and engine parts are not included in paragraph (h) 
of Category VII.


    Note: Paragraph (i) of Category VII does not apply to civil 
vehicles designed or modified for transporting money or valuables.

* * * * *
CATEGORY XIV--TOXICOLOGICAL AGENTS AND EQUIPMENT AND RADIOLOGICAL 
EQUIPMENT
* * * * *
    (b) [Reserved]
    (c) All specifically designed or modified equipment, including 
components, parts, accessories, and attachments for disseminating the 
articles in paragraph (a) of this category.
    (d) [Reserved]
    (e) [Reserved]
* * * * *
CATEGORY XVI--NUCLEAR WEAPONS DESIGN AND TEST EQUIPMENT
    (a) [Reserved]
    (b) Modeling or simulation tools that model or simulate the 
environments generated by nuclear detonations or the effects of these 
environments on systems, subsystems, components, structures, or humans.

    Note: Category XVI does not include equipment, technical data, 
or services controlled by the Department of Energy pursuant to the 
Atomic Energy Act of 1954, as amended, and the Nuclear Non-

[[Page 17029]]

Proliferation Act of 1978, as amended, or are government transfers 
authorized pursuant to these Acts.

* * * * *

    Dated: March 21, 2014.
Eric H. Holder, Jr.,
Attorney General.
[FR Doc. 2014-06778 Filed 3-26-14; 8:45 am]
BILLING CODE 4410-FY-P
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