Amendments to Existing Validated End-User Authorizations in the People's Republic of China: Samsung China Semiconductor Co. Ltd and Semiconductor Manufacturing International Corporation, 30713-30716 [2014-12158]
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Federal Register / Vol. 79, No. 103 / Thursday, May 29, 2014 / Rules and Regulations
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consumer financial protection laws from
the Board to the Bureau, effective July
21, 2011, including TISA. The Bureau
issued the Bureau Interim Final Rule to
implement TISA in connection with the
transfer of TISA rulemaking authority to
the Bureau. Pursuant to section 1029 of
the Dodd-Frank Act, however, the Board
retains rulemaking authority for
consumer financial protection laws to
the extent that such laws could cover
motor vehicle dealers identified in
section 1029(a) of the Dodd-Frank Act.
The Board does not believe that any
motor vehicle dealers identified in
section 1029(a) of the Dodd-Frank Act
are or could become depository
institutions engaged in activities that
would be subject to the Board’s
rulemaking authority under TISA.
Consequently, the Board is repealing the
Board’s Regulation DD, 12 CFR part 230.
2. Summary of issues raised by
comments in response to the initial
regulatory flexibility analysis. The
Board did not receive any comments on
the initial regulatory flexibility analysis.
3. Small entities affected by the final
rule. The Board does not believe that
any motor vehicle dealers identified in
section 1029(a) of the Dodd-Frank Act
are or could become depository
institutions engaged in activities that
would be subject to the Board’s
rulemaking authority under TISA.
Therefore, the Board believes the final
rule would not affect any entity,
including any small entity.
4. Recordkeeping, reporting, and
compliance requirements. The final rule
repeals the Board’s Regulation DD, 12
CFR part 230, and would therefore not
impose any recordkeeping, reporting, or
compliance requirements on any
entities.
5. Significant alternatives to the final
revisions. Because the repeal of the
Board’s Regulation DD (12 CFR part
230) will have no impact, there are no
significant alternatives that would
further minimize the economic impact
of the final rule on small entities.
V. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
3506; 5 CFR Part 1320, Appendix A.1),
the Board reviewed the rule under the
authority delegated to the Federal
Reserve by the Office of Management
and Budget. The final rule contains no
collections of information under the
PRA. See 44 U.S.C. 3502(3).
Accordingly, there is no paperwork
burden associated with the final rule.
List of Subjects in 12 CFR Part 230
Advertising, Banks, Banking,
Consumer protection, Reporting and
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recordkeeping requirements, Truth in
savings.
Background
Authority and Issuance
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.
For the reasons set forth in the
preamble, based on the transfer of
authority under 12 U.S.C. 5581, the
Board removes and reserves Regulation
DD, 12 CFR part 230.
PART 230—[REMOVED AND
RESERVED]
By order of the Board of Governors of the
Federal Reserve System, May 22, 2014.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2014–12356 Filed 5–28–14; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 140506409–4409–01]
RIN 0694–AG15
Amendments to Existing Validated
End-User Authorizations in the
People’s Republic of China: Samsung
China Semiconductor Co. Ltd and
Semiconductor Manufacturing
International Corporation
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) and Semiconductor
Manufacturing International
Corporation (SMIC) in the People’s
Republic of China (PRC). Specifically,
BIS amends Supplement No. 7 to part
748 of the EAR to change the address of
the facility used by Samsung China. In
addition, BIS adds a facility to the list
of eligible destinations and an item to
the list of eligible items for SMIC.
DATES: This rule is effective May 29,
2014.
SUMMARY:
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:
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Authorization Validated End-User
Amendments to Existing Validated EndUser Authorizations in the People’s
Republic of China (PRC)
Revision 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 change
the address of the Samsung China
facility to which eligible items may be
exported, reexported or transferred (incountry) using Authorization VEU. BIS
makes this change pursuant to a request
from Samsung China advising BIS that
Samsung China received verification of
the final address of its facility from the
Chinese government. Samsung China’s
VEU-eligible facility, which is located in
an area being newly developed for
corporate use, has not moved. The list
of eligible items for Samsung China
remains the same. 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).
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Federal Register / Vol. 79, No. 103 / Thursday, May 29, 2014 / Rules and Regulations
Prior Address of Samsung China
Destination:
Samsung China Semiconductor Co. Ltd.,
Xinglong Street, Chang’an District,
Xi’an, People’s Republic of China
710065.
New Address for Samsung China:
Samsung China Semiconductor Co. Ltd.,
No. 1999, North Xiaohe Road, Xi’an,
China 710119.
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,
bringing the number of SMIC’s VEUauthorized facilities in the PRC to a total
of five. BIS also adds an ECCN to
SMIC’s list of eligible items that may be
sent to the five facilities. The ECCN
added in this rule to SMIC’s VEU
authorization is ECCN 3A233 (certain
types of mass spectrometers). BIS makes
these changes pursuant to requests from
SMIC. SMIC requested the addition of
the new VEU-eligible destination in
order to facilitate shipments to its new
business venture.
Additional SMIC Destination:
Semiconductor Manufacturing North
China (Beijing) Corporation, No. 18
Wen Chang Road, Building 9, Beijing
Economic-Technological
Development Area, Beijing, China
100176.
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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, 3A233, 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).
Authorization VEU eliminates the
burden on exporters and reexporters of
preparing individual license
applications because the export,
reexport and transfer (in-country) of the
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eligible items specified for each VEU
may be made under general
authorization instead of under
individual licenses.
Export Administration Act
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, as amended by Executive Order
13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
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
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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
updates the address of an existing VEU
and adds an eligible destination and an
item to a second existing VEU. 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
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Federal Register / Vol. 79, No. 103 / Thursday, May 29, 2014 / Rules and Regulations
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
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 regarding which
facilitates and items are authorized by
the U.S. Government and in turn stifle
the purpose of the VEU 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.
30715
Dated: May 21, 2014.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
Accordingly, part 748 of the EAR (15
CFR parts 730–774) is amended as
follows:
PART 748—[AMENDED]
1. The authority citation for 15 CFR
part 748 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767,
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 the entry for ‘‘Samsung
China Semiconductor Co. Ltd.’’ in
‘‘China (People’s Republic of)’’; and
■ b. Revising the entry for
‘‘Semiconductor Manufacturing
International Corporation’’ in ‘‘China
(People’s Republic of)’’ to 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
Validated
end-user
Country
Eligible items
(By ECCN)
Federal Register
citation
Eligible destination
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
emcdonald on DSK67QTVN1PROD with RULES
Semiconductor Manufacturing International
Corporation.
*
*
*
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,
3A233, 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).
*
*
Samsung China Semiconductor Co. Ltd., No.
1999, North Xiaohe Road, Xi’an, China
710119.
*
78 FR 41291, 7/10/13.
78 FR 69535, 11/20/13.
79 FR [INSERT PAGE
NUMBER], 5/29/14.
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 Economic-Technological 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 69535, 11/20/13.
79 FR [INSERT PAGE
NUMBER], 5/29/14.
Semiconductor Manufacturing North China (Beijing) Corporation, No. 18 Wen Chang Road,
Building 9, Beijing Economic-Technological
Development Area, Beijing, China 100176.
*
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Federal Register / Vol. 79, No. 103 / Thursday, May 29, 2014 / Rules and Regulations
[FR Doc. 2014–12158 Filed 5–28–14; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Parts 1 and 16
[Docket No. FDA–2013–N–0365]
Administrative Detention of Drugs
Intended for Human or Animal Use
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
Final rule.
The Food and Drug
Administration (FDA or the Agency) is
implementing administrative detention
authority with respect to drugs intended
for human or animal use as authorized
by amendments made to the Federal
Food, Drug, and Cosmetic Act (the
FD&C Act) by the Food and Drug
Administration Safety and Innovation
Act (FDASIA). FDA’s administrative
detention authority with respect to
drugs allows FDA to better protect the
integrity of the drug supply chain.
Specifically, FDA is able to
administratively detain drugs
encountered during an inspection that
an authorized FDA representative
conducting an inspection has reason to
believe are adulterated or misbranded.
This authority is intended to protect the
public by preventing distribution or
subsequent use of drugs encountered
during inspections that are believed to
be adulterated or misbranded, until FDA
has had time to consider what action it
should take concerning the drugs, and
to initiate legal action, if appropriate.
DATES: This rule is effective June 30,
2014.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Charlotte Hinkle, Office of Regulatory
Affairs, Food and Drug Administration,
10903 New Hampshire Ave., Bldg. 32,
Rm. 4343, Silver Spring, MD 20993–
0002, 301–796–5300,
FDASIAImplementationORA@
fda.hhs.gov.
SUPPLEMENTARY INFORMATION:
emcdonald on DSK67QTVN1PROD with RULES
Executive Summary
Purpose of the Regulatory Action
FDA’s administrative detention
authority with respect to drugs intended
for human or animal use allows FDA to
better protect the integrity of the drug
supply chain. Specifically,
administrative detention is intended to
protect the public by preventing
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distribution or subsequent use of drugs
encountered during inspections that
may be adulterated or misbranded, until
FDA has had time to consider what
action it should take concerning the
drugs, and to initiate legal action, if
appropriate. FDA already has the
authority to administratively detain
devices, tobacco, and foods that FDA
has reason to believe are adulterated or
misbranded.
FDA is issuing this final rule under
section 304(g) of the FD&C Act (21
U.S.C. 334(g)), as amended by section
709 of FDASIA, and section 701 of the
FD&C Act (21 U.S.C. 371). Section
304(g) of the FD&C Act also authorizes
FDA to administratively detain devices
and tobacco products.
Summary of the Major Provisions
This final rule implements a
regulation for the administrative
detention of drugs. FDA is amending
parts 1 and 16 (21 CFR parts 1 and 16)
to create an implementing rule for this
authority. The changes set forth the
procedures for detention of drugs
believed to be adulterated or
misbranded and amend the scope of
FDA’s part 16 regulatory hearing
procedures to include the
administrative detention of drugs.
Costs and Benefits
The primary public health benefits
from adoption of the final rule would be
the value of the illnesses or deaths
prevented because the Agency
administratively detained a drug it has
reason to believe is adulterated or
misbranded; this benefit occurs only if
the drug would not have been prevented
from entering the market using one of
the Agency’s other enforcement tools.
The estimated primary costs to FDA
include marking or labeling the
detained product and costs associated
with appeals of detention orders. The
Agency estimates the net annual social
costs to be between $0 and $602,602.
I. Background
In the Federal Register of July 15,
2013 (78 FR 42381), FDA proposed
regulations to implement its new
authority to administratively detain
drugs that an authorized FDA
representative conducting an inspection
under section 704 of the FD&C Act (21
U.S.C. 374) has reason to believe are
adulterated or misbranded. As
discussed in the preamble to the
proposed rule, on July 9, 2012,
President Obama signed into law
FDASIA (Public Law 112–144). Title VII
of FDASIA provides FDA with
important new authorities to help it
better protect the integrity of the drug
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supply chain. One of those new
authorities is section 709, which
amends section 304(g) of the FD&C Act
to provide FDA with administrative
detention authority with respect to
drugs. Section 304(g) of the FD&C Act,
as amended by FDASIA, provides FDA
the same authority to detain drugs that
section 304(g) already provides FDA
with respect to devices and tobacco
products. Once these implementing
regulations with respect to drugs take
effect, the amendments to section 304(g)
of the FD&C Act will allow FDA to
administratively detain drugs that an
authorized FDA representative
conducting an inspection under section
704 of the FD&C Act has reason to
believe are adulterated or misbranded,
until FDA has had time to consider
what action it should take concerning
the drugs, and to initiate legal action, if
appropriate.
II. Overview of the Final Rule Including
Changes to the Proposed Rule
A. Revisions to Part 1
FDA is amending title 21 of the Code
of Federal Regulations, part 1 to create
an implementing regulation for the
administrative detention of drugs. The
amendment to part 1 consists of one
section, § 1.980, under a new subpart,
which is titled ‘‘Subpart Q—
Administrative Detention of Drugs
Intended for Human or Animal Use.’’
Section 1.980 sets forth the procedures
for the administrative detention of drugs
encountered during an inspection that
are believed to be adulterated or
misbranded. The new regulation is
closely modeled on the current
regulation for the administrative
detention of devices (21 CFR 800.55).
There are minor differences from the
device regulation, including updates to
statutory references to refer to drugs
instead of devices and changes to
language to conform to current Federal
Register requirements. Since FDA
issued the proposed rule on
administrative detention of drugs, FDA
has issued other regulations in part 1,
requiring reassignment of the section
number within part 1. No other changes
have been made to the substance of the
proposed regulation. Other than
renumbering the section, FDA is
finalizing the implementing regulations
as proposed.
B. Revisions to Part 16
The amendment to part 16 is a
technical change. This change amends a
statement in § 16.1 so that the scope of
part 16 regulatory hearing procedures
also will include administrative
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]]>Agencies
[Federal Register Volume 79, Number 103 (Thursday, May 29, 2014)]
[Rules and Regulations]
[Pages 30713-30716]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12158]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 140506409-4409-01]
RIN 0694-AG15
Amendments to Existing Validated End-User Authorizations in the
People's Republic of China: Samsung China Semiconductor Co. Ltd and
Semiconductor Manufacturing International Corporation
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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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) and Semiconductor Manufacturing
International Corporation (SMIC) in the People's Republic of China
(PRC). Specifically, BIS amends Supplement No. 7 to part 748 of the EAR
to change the address of the facility used by Samsung China. In
addition, BIS adds a facility to the list of eligible destinations and
an item to the list of eligible items for SMIC.
DATES: This rule is effective May 29, 2014.
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)
Revision 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
change the address of the Samsung China facility to which eligible
items may be exported, reexported or transferred (in-country) using
Authorization VEU. BIS makes this change pursuant to a request from
Samsung China advising BIS that Samsung China received verification of
the final address of its facility from the Chinese government. Samsung
China's VEU-eligible facility, which is located in an area being newly
developed for corporate use, has not moved. The list of eligible items
for Samsung China remains the same. 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).
[[Page 30714]]
Prior Address of Samsung China Destination:
Samsung China Semiconductor Co. Ltd., Xinglong Street, Chang'an
District, Xi'an, People's Republic of China 710065.
New Address for Samsung China:
Samsung China Semiconductor Co. Ltd., No. 1999, North Xiaohe Road,
Xi'an, China 710119.
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, bringing the number of SMIC's VEU-authorized
facilities in the PRC to a total of five. BIS also adds an ECCN to
SMIC's list of eligible items that may be sent to the five facilities.
The ECCN added in this rule to SMIC's VEU authorization is ECCN 3A233
(certain types of mass spectrometers). BIS makes these changes pursuant
to requests from SMIC. SMIC requested the addition of the new VEU-
eligible destination in order to facilitate shipments to its new
business venture.
Additional SMIC Destination:
Semiconductor Manufacturing North China (Beijing) Corporation, No. 18
Wen Chang Road, Building 9, Beijing Economic-Technological Development
Area, Beijing, China 100176.
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, 3A233, 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).
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.
Export Administration Act
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, as amended
by Executive Order 13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, 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 updates the address of an existing VEU and adds an eligible
destination and an item to a second existing VEU. 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
[[Page 30715]]
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 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
regarding which facilitates and items are authorized by the U.S.
Government and in turn stifle the purpose of the VEU 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.
Dated: May 21, 2014.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
Accordingly, part 748 of the EAR (15 CFR parts 730-774) is amended
as follows:
PART 748--[AMENDED]
0
1. The authority citation for 15 CFR part 748 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 8, 2013, 78 FR
49107 (August 12, 2013).
0
2. Amend Supplement No. 7 to part 748 by:
0
a. Revising the the entry for ``Samsung China Semiconductor Co. Ltd.''
in ``China (People's Republic of)''; and
0
b. Revising the entry for ``Semiconductor Manufacturing International
Corporation'' in ``China (People's Republic of)'' to 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
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Federal Register
Country Validated end-user Eligible items (By ECCN) Eligible destination citation
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Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
to Sec. 748.15(c).
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* * * * * * *
Samsung China 1C350.c.3, 1C350.d.7, Samsung China 78 FR 41291, 7/10/
Semiconductor Co. 2B230, 2B350.d.2, Semiconductor Co. Ltd., 13.
Ltd 2B350.g.3, 2B350.i.3, No. 1999, North Xiaohe 78 FR 69535, 11/20/
3A233, 3B001.a.1, Road, Xi'an, China 13.
3B001.b, 3B001.c, 710119. 79 FR [INSERT PAGE
3B001.e, 3B001.f, NUMBER], 5/29/14.
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).
Semiconductor 1C350.c.3, 1C350.d.7, Semiconductor 72 FR 59164, 10/19/
Manufacturing 2B006.b.1, 2B230, Manufacturing 07.
International 2B350.d.2, 2B350.d.3, International (Shanghai) 75 FR 67029, 11/1/
Corporation. 2B350.g.3, 2B350.i.3, Corporation, 18 Zhang 10.
3A233, 3B001.a, 3B001.b, Jiang Rd., Pudong New 77 FR 10953, 2/24/
3B001.c, 3B001.e, Area, Shanghai, China 12.
3B001.f, 3C001, 3C002, 201203. 78 FR 69535, 11/20/
3C003, 3C004, 5B002, and Semiconductor 13.
5E002 (limited to Manufacturing 79 FR [INSERT PAGE
``technology'' according International (Tianjin) NUMBER], 5/29/14.
to the General Corporation, 19 Xing Hua
Technology Note for the Avenue, Xi Qing Economic
``production'' of Development Area,
integrated circuits Tianjin, China 300385..
controlled by ECCN 5A002 Semiconductor
that have been Manufacturing
classified by BIS as International (Beijing)
eligible for License Corporation, No. 18 Wen
Exception ENC under Chang Road, Beijing
paragraph (b)(2) or Economic-Technological
(b)(3) of Section 740.17 Development Area,
of the EAR, or Beijing, China 100176..
classified by BIS as a Semiconductor
mass market item under Manufacturing
paragraph (b)(3) of International (Shenzhen)
Section 748.15 of the Corporation, Qier Road,
EAR). Export Processing Zone,
Pingshan New Area,
Shenzhen, China 518118..
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Semiconductor
Manufacturing North
China (Beijing)
Corporation, No. 18 Wen
Chang Road, Building 9,
Beijing Economic-
Technological
Development Area,
Beijing, China 100176.
* * * * * * *
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[[Page 30716]]
[FR Doc. 2014-12158 Filed 5-28-14; 8:45 am]
BILLING CODE 3510-33-P
