Cuba: Implementing Rescission of State Sponsor of Terrorism Designation, 43314-43320 [2015-17981]
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Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Rules and Regulations
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 736, 740, 742, 746,
748, 750, 758, 772, and 774
[Docket No. 150416374–5374–01]
RIN 0694–AG60
Cuba: Implementing Rescission of
State Sponsor of Terrorism
Designation
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
This rule amends the Export
Administration Regulations (EAR) to
implement the rescission of Cuba’s
designation as a State Sponsor of
Terrorism. Specifically, this rule
removes anti-terrorism (AT) license
requirements from Cuba and eliminates
references to Cuba as a State Sponsor of
Terrorism, but maintains preexisting
license requirements for all items
subject to the EAR unless authorized by
a license exception. This rule also
removes Cuba from Country Group E:1
(terrorist supporting countries), which
makes Cuba eligible for a general 25
percent de minimis level and portions of
four license exceptions. The Secretary of
State rescinded the designation of Cuba
as a State Sponsor of Terrorism on May
29, 2015.
DATES: This rule is effective July 22,
2015.
FOR FURTHER INFORMATION CONTACT:
Foreign Policy Division, Office of
Nonproliferation and Treaty
Compliance, Bureau of Industry and
Security, Phone: (202) 482–4252.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Contents
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I. Background
II. Removal of Anti-Terrorism Controls and
Text Associating Cuba With Terrorism
III. Jurisdiction—Items That Are Subject to
the Ear
A. Items With More Than de minimis
Controlled U.S. Origin Content
B. Items That Are the Direct Product of
U.S.-Origin National Security
Technology or Software
IV. Provisions Impacted by Cuba’s Removal
From County Group E:1
V. Provisions Being Amended To Retain
Existing Cuba-Related Requirements
I. Background
The United States maintains a
comprehensive embargo on trade with
Cuba. Pursuant to that embargo, all
items that are subject to the Export
Administration Regulations (EAR)
require a license for export or reexport
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to Cuba unless authorized by a license
exception. The Bureau of Industry and
Security (BIS) administers export and
reexport restrictions on Cuba consistent
with the goals of that embargo and with
relevant law. Accordingly, BIS may
issue specific or general authorizations
in the form of licenses or license
exceptions for transactions that support
the goals of United States policy while
the embargo remains in effect.
On December 17, 2014, the President
announced that the United States is
taking steps to chart a new course in
bilateral relations with Cuba and to
further engage and empower the Cuban
people. As one of these steps, the
President directed the Secretary of State
to review Cuba’s designation as a State
Sponsor of Terrorism and provide a
report to the President within six
months. Cuba was designated as a State
Sponsor of Terrorism in 1982. Pursuant
to Sections 6(a) and 6(j) of the Export
Administration Act of 1979, as amended
(EAA), State Sponsors of Terrorism are
subject to anti-terrorism (AT) controls
and certain other restrictions in the
EAR. Once designated, a country
remains a State Sponsor of Terrorism
until its designation is rescinded in
accordance with the relevant statutes
(Section 6(j) of the EAA; Section 40 of
the Arms Export Control Act of 1976, as
amended; and Section 620A of the
Foreign Assistance Act of 1961, as
amended).
There are two possible paths to
rescission of a State Sponsor of
Terrorism designation under the
relevant statutes. The first requires the
President to submit a report to Congress
before the proposed rescission would
take effect certifying that (1) there has
been a fundamental change in the
leadership and policies of the
government of the country concerned,
(2) the government is not supporting
acts of international terrorism, and (3)
the government has provided assurances
that it will not support acts of
international terrorism in the future.
The second path requires that the
President submit a report to Congress, at
least 45 days before the proposed
rescission would take effect, justifying
the rescission and certifying the subject
government has not provided any
support for international terrorism for
the preceding six-month period and has
given assurances that it will not support
acts of international terrorism in the
future. The rescission of Cuba’s
designation was done consistent with
the second path.
On April 8, 2015, the Secretary of
State completed the review requested by
the President and submitted his analysis
to the President recommending that
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Cuba should no longer be designated as
a State Sponsors of Terrorism. On April
14, 2015, the President submitted to
Congress the statutorily required report
indicating the Administration’s intent to
rescind Cuba’s State Sponsor of
Terrorism designation, including the
certification that Cuba has not provided
any support for international terrorism
during the previous six months; and
that Cuba has provided assurances that
it will not support acts of international
terrorism in the future. The Secretary of
State then made the final decision to
rescind Cuba’s designation as a State
Sponsor of Terrorism, which was
effective on May 29, 2015. Accordingly,
this rule removes references to Cuba as
a State Sponsor of Terrorism and
removes anti-terrorism (AT) controls
from Cuba.
However, Cuba is still subject to a
comprehensive embargo and, as
specified in § 746.2(a) of the EAR, a
license is still required to export or
reexport to Cuba any item subject to the
EAR unless authorized by a license
exception. Only those license
exceptions listed in § 746.2(a) may be
used to export or reexport to Cuba.
These requirements of § 746.2(a) apply
to all items subject to the EAR,
including EAR99 items and items that
are controlled on the Commerce Control
List (CCL) only for AT reasons.
II. Removal of Anti-Terrorism Controls
and Text Associating Cuba With
Terrorism
This rule removes:
• The reference to ‘‘counterterrorism’’ from the licensing policy that
applies to certain exports intended to
provide support for the Cuban people
that appears in § 746.2(b)(4)(i) (which
will be redesignated as § 746.2(b)(3)(i));
• § 746.2(c), which identifies Cuba as
a country whose government has
repeatedly provided support for acts of
international terrorism;
• the references to ‘‘terrorism’’ and
‘‘state sponsors of terrorism’’ from
§ 746.2(e), which describes the license
requirements regarding Cuba of the U.S.
Department of the Treasury, Office of
Foreign Assets Control and the U.S.
Department of State; and
• the word ‘‘Cuba’’ from the
statements of anti-terrorism license
requirements in Export Control
Classification Numbers 1C350, 1C355,
1C395, 2A994, 2D994 and 2E994.
This rule also removes Cuba from the
following provisions, which list
countries that have been designated as
State Sponsors of Terrorism or that have
repeatedly supported acts of
international terrorism: § 742.1(d);
Supplement No. 2 to part 742,
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countries subject to unilateral embargo.
Accordingly, BIS is amending
§ 734.4(a)(6)(ii) to include Country
Group E:2.
III. Jurisdiction—Items That Are
Subject to the EAR
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paragraphs (a) and (b)(1);
§ 750.4(b)(6)(i); and § 772.1, definition
of ‘‘countries supporting international
terrorism.’’
Finally, this rule removes Cuba from
Country Group E:1—Terrorist
Supporting Countries—in Supplement
No. 1 to Part 740—Country Groups.
However, Cuba remains in Country
Group E:2—Unilateral embargo. Cuba
also remains in Country Groups D:2,
D:3, and D:5. Because country groups
are used to specify the countries that are
subject to certain provisions of the EAR,
particularly license exceptions, and to
impose certain restrictions, removal of
Cuba from Country Group E:1 can have
effects elsewhere in the EAR as will be
discussed below.
IV. Provisions Impacted by Cuba’s
Removal From County Group E:1
The provisions of the four license
exceptions described below contain
restrictions that apply to countries in
Country Group E:1 or to nationals of
those countries. This section describes
the restrictions that will no longer apply
to Cuba or Cuban nationals as a result
of Cuba’s removal from Country Group
E:1. This rule makes no change to the
text of the four license exceptions
because the removal of the restrictions
results from the removal of Cuba from
Country Group E:1 and no changes to
the text of the license exceptions are
needed.
A. Items With More Than de minimis
Controlled U.S. Origin Content
The EAR apply to items that contain
more than a de minimis amount of
controlled U.S.-origin content including
foreign-made items located outside the
United States. For most items, the de
minimis level is 10 percent if the
destination of the foreign-made item is
in Country Group E:1 and 25 percent if
the destination is elsewhere. The
removal of Cuba from Country Group
E:1 raises the de minimis level to 25
percent for most items destined for
Cuba. Additionally, since Cuba is no
longer in Country Group E:1, the 25
percent de minimis level now applies to
certain foreign-made encryption items
destined for Cuba that meet the criteria
specified in § 734.4(b)(1)(iii) of the EAR.
With the general increase in the de
minimis level to 25 percent, paragraph
(b)(3) of § 746.2, which described the
circumstances under which foreign
made items containing an insubstantial
proportion of U.S. origin content (i.e.,
not exceeding 20 percent) would
generally be considered favorably, is no
longer needed, so this rule removes that
paragraph.
Foreign-made items destined for Cuba
that incorporate U.S.-origin 9x515 or
‘‘600 series’’ .y content continue to be
subject to the EAR regardless of the
level of U.S.-origin content, i.e., there is
no de minimis for these items when
destined for Cuba. To maintain this
exclusion with respect to Cuba, this rule
adds Country Group E:2 to the list of
destinations (Country Group E:1 and the
People’s Republic of China) subject to
that exclusion. Since 9x515 and ‘‘600
series’’ .y items are ‘‘specially designed’’
items transferred from the United States
Munitions List to the CCL, this de
minimis exclusion is still warranted for
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B. Items That Are the Direct Product of
U.S.-Origin National Security
Technology and Software
The EAR apply to foreign-made
national security items that are the
direct product of U.S.-origin national
security technology and software. Such
items are subject to the EAR (and
require a license) if destined to a
country in Country Group D:1 or E:1.
This rule retains Cuba as one of the
destinations that is subject to this
requirement by adding Country Group
E:2 to § 736.2(b)(3).
License Exception Servicing and
Replacement of Parts and Equipment
(RPL)
The removal of Cuba from Country
Group E:1 implicates only paragraph (a)
of License Exception Servicing and
Replacement of Parts and Equipment
(RPL) in § 740.10 because only
paragraph (a), which authorizes export
and reexport of one-for-one replacement
parts for items previously lawfully
exported, is authorized for Cuba in
§ 746.2 of the EAR. Since Cuba is no
longer in Country Group E:1, the
following exclusions to License
Exception RPL, paragraph (a) no longer
apply to Cuba: paragraph (a)(3)(iv),
which excludes parts, components,
accessories, or attachments to repair
‘‘aircraft’’ or commodities controlled for
national security (NS) reasons;
paragraph (a)(3)(v), which excludes
parts, components, accessories, or
attachments to repair explosives
detection equipment classified under
Export Control Classification Number
(ECCN) 2A983 or related software
classified under ECCN 2D983; and
paragraph (a)(3)(vi) which excludes
parts, components, accessories, or
attachments to repair concealed object
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detection equipment classified under
ECCN 2A984 or related software
classified under ECCN 2D984.
License Exception Governments,
International Organizations,
International Inspections Under the
Chemical Weapons Convention, and the
International Space Station (GOV)
Since Cuba is no longer in Country
Group E:1, the following restrictions in
License Exception GOV (§ 740.11) no
longer apply to Cuban nationals:
Paragraph (a)(2)(iv), which restricts
physical or computational access by
Country Group E:1 nationals to certain
computers for authorized international
safeguard use in connection with
activities of the International Atomic
Energy Agency and the European
Atomic Energy Community; paragraph
(d)(4), which restricts physical or
computational access by Country Group
E:1 nationals to certain computers for
authorized international inspection and
verification use in connection with the
activities of the Organization for the
Prohibition of Chemical Weapons; and
paragraph (e)(7)(i), which precludes
export, reexport or transfer (in-country)
to Country Group E:1 nationals of items
used to support the International Space
Station. Additionally, paragraph
(e)(8)(iii), which precludes return of
parts for the International Space Station
to destinations in Country Group E:1, no
longer applies to Cuba.
License Exception Baggage (BAG)
Since Cuba is no longer in Country
Group E:1, § 740.14(f)(1), which
authorizes certain exports and reexports
of encryption commodities and software
subject to Encryption Items (EI) controls
on the CCL by United States citizens
and permanent resident aliens to
destinations other than Country Group
E:1, and § 740.14(f)(2), which authorizes
such exports and reexports by
individuals other than nationals of a
country in Country Group E:1, no longer
apply to Cuba or Cuban nationals.
Additionally, § 740.14(g), which
authorizes certain exports and reexports
of technology by U.S. persons, but
excludes in paragraph (g)(4) exports and
reexports of encryption technology
controlled in ECCN 5E002 to
destinations in Country Group E:1, no
longer applies to Cuba.
License Exception Aircraft, Vessels and
Spacecraft (AVS)
The removal of Cuba from Country
Group E:1 implicates only paragraph (a)
of License Exception Aircraft, Vessels
and Spacecraft (AVS) in § 740.15
because only paragraph (a), which
authorizes aircraft on temporary
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sojourn, is authorized for Cuba in
§ 746.2 of the EAR. Since Cuba is no
longer in Country Group E:1, Cuba is no
longer subject to the following
restrictions:
• Paragraph (a)(1)(i), which prohibits
use of AVS for foreign registered aircraft
that were transferred to a national of a
country in Country Group E:1 while in
the United States;
• Paragraph (a)(1)(ii), which prohibits
use of AVS for foreign registered aircraft
that are departing the United States for
purpose of transfer to a national of a
country in Country Group E:1;
• Paragraph (a)(2)(ii), which prohibits
use of AVS for U.S. registered aircraft
that are not operating under an Air
Carrier Operating Certificate,
Commercial Operating Certificate or Air
Taxi Operating Certificate from using
AVS for temporary sojourns to a country
in Country Group E:1;
• Paragraph (a)(3)(iv), which
prohibits principal maintenance in
Country Group E:1 or right to control
the principal place of maintenance by a
national of a country in Country Group
E:1;
• Paragraph (a)(3)(v), which prohibits
location of spares in a destination in
Country Group E:1;
• Paragraph (a)(3)(vi), which
prohibits changing the place of
registration to a destination in Country
Group E:1;
• Paragraph (a)(3)(vii), which
prohibits transfer of technology to a
national of a country in Country Group
E:1;
• Paragraph (a)(3)(viii), which
prohibits aircraft bearing livery, colors
or logos of a national of a country in
Country Group E:1; and
• Paragraph (a)(3)(ix), which
prohibits flying under a flight number
issued to a national of a country in
Country Group E:1.
V. Provisions Being Amended To Retain
Existing Cuba-Related Requirements
Although Cuba is removed from
Country Group E:1, Cuba is still subject
to a comprehensive embargo and, as
specified in § 746.2(a) of the EAR, a
license is still required to export or
reexport to Cuba any item subject to the
EAR unless authorized by a license
exception. This rule makes the changes
described below to retain the
applicability of certain provisions and
license conditions to Cuba, consistent
with the embargo, that would otherwise
cease as a result of Cuba’s removal from
Country Group E:1. While Cuba was in
Country Group E:1, a separate reference
to Country Group E:2 would have had
no effect on exports or reexports to
Cuba. With the removal of Cuba from
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Country Group E:1, it is necessary to
explicitly link these provisions and
conditions to the embargo.
Written Assurance for License Exception
Technology and Software Under
Restriction (TSR)
Before an exporter or reexporter is
able to use License Exception
Technology and Software under
Restriction (TSR) in § 740.6 of the EAR
to export or reexport software or
technology controlled for national
security reasons, the exporter or
reexporter must obtain a written
assurance from the consignee that the
software or technology transferred and
its direct product will not be sent to
destinations in Country Group D:1 or
E:1 or released to nationals thereof. This
rule retains that restriction with respect
to Cuba by adding Country Group E:2 to
those written assurance requirements.
The need for a written assurance is
appropriate for countries in Country
Groups E:1 and E:2. However, until the
removal of Cuba from Country Group
E:1, listing both country groups would
have been redundant.
Note that License Exception TSR does
not authorize exports or reexports to
Cuba because it is not specified in
§ 746.2(a)(1) of the EAR and because, by
its terms, License Exception TSR is
available only for destinations in
Country Group B, which does not
include Cuba.
Supplement No. 2 to Part 748—Unique
Application and Submission
Requirements
Supplement No. 2 to Part 748 of the
EAR describes information required to
be included in license applications for
certain specific situations. Paragraph
(i)(2)(x) requires that technology
intended to accompany any shipment to
destinations in Country Group D:1 or
E:1 be described in the application.
Paragraph (o)(3)(i) requires applicants
for licenses to export or reexport
national security controlled technology
to obtain a written assurance against
transfer to destinations in Country
Groups D:1 or E:1. This rule adds
Country Group E:2 to both paragraphs to
continue both requirements with respect
to Cuba.
Export Clearance Requirements
Part 758 of the EAR describes certain
export clearance requirements. Section
758.1(b)(1) makes the $2,500 threshold
below which most exports need not be
filed in the Automated Export System
(AES) inapplicable for exports to
Country Group E:1 by requiring such
filing for exports to Country Group E:1
regardless of value. This rule retains
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that requirement for exports to Cuba by
adding Country Group E:2 to
§ 758.1(b)(1).
Section 758.2(b)(3) makes export to
Country Group E:1 grounds for rejecting
applications for post-departure filing in
AES (i.e., authorization to file after the
exporting carrier departs the port of
export). This rule retains export to Cuba
as a ground for rejection by adding
Country Group E:2 to § 758.2(b)(3).
License Condition General Order
Supplement No. 1 to Part 736 of the
EAR contains certain general orders.
This rule adds General Order No. 3,
which was reserved, to continue all
restrictions on transactions with Cuba or
Cuban nationals, by reference to
Country Group E:1, that are contained in
licenses issued prior to July 22, 2015.
Certain licenses issued by BIS contain
conditions that restrict the export,
reexport, or transfer (in-country) to State
Sponsors of Terrorism and countries
subject to unilateral embargo by
reference to Country Group E:1. Many of
those restrictions were intended to
apply to Cuba, not only as a State
Sponsor of Terrorism but also as a
country subject to unilateral embargo.
However, BIS did not always list both
Country Groups E:1 and E:2 in license
conditions because, at the time, doing so
would have been redundant. This
general order applies those conditions
to Country Groups E:1 and E:2.
Licensees who seek authorization for
transactions that are affected by General
Order No. 3, may submit license
applications that refer to General Order
No. 3 and explain the reason for the
request in Block 24 of the application.
All license applications involving Cuba
are reviewed pursuant to the licensing
policy in § 746.2(b) of the EAR.
ECCN 4A003
This rule adds a reference to Country
Group E:2 to the note that immediately
follows the control table in ECCN
4A003. That note states that except for
destinations in Country Group E:1, no
license is required for computers with
an Adjusted Peak Performance not
exceeding 8.0 weighted teraFLOPS. The
addition of Country Group E:2 retains
Cuba’s status as a destination for which
a license is required.
Export Administration Act
Although the Export Administration
Act expired on August 20, 2001, the
President, through Executive Order
13222 of August 17, 2001, 3 CFR, 2001
Comp., p. 783 (2002), as amended by
Executive Order 13637 of March 8,
2013, 78 FR 16129 (March 13, 2013),
and as extended by the Notice of August
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7, 2014, 79 FR 46959 (August 11, 2014),
has continued the Export
Administration Regulations 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, of
reducing costs, of harmonizing rules,
and of promoting flexibility. This rule
has been designated a ‘‘significant
regulatory action,’’ although not
economically significant, under section
3(f) of Executive Order 12866.
Accordingly, the rule has been reviewed
by the Office of Management and
Budget (OMB).
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor shall any person be
subject to a penalty for failure to comply
with, a collection of information subject
to the requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) control number. This rule
involves a collection of information
approved under OMB control number
0694–0088—Simplified Network
Application Processing+ System
(SNAP+) and the Multipurpose Export
License Application, which are the
methods for submitting all license
applications, commodity classification
requests and similar requests to BIS.
The estimated annual total burden of all
of those submissions is 31,833 hours.
BIS believes that this rule will have no
material impact on that burden. To the
extent that it has any impact, this rule
is likely to reduce the burden for two
reasons. First, this rule might reduce the
burden because it makes some
transactions, primarily temporary
sojourns in Cuba of general aviation
aircraft, which would otherwise require
a license, eligible for a license
exception. Second, because this rule
raises the percentage of U.S.-origin
content that a foreign-made item must
have before its export from abroad to
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Cuba becomes subject to the EAR, it
reduces the number of foreign-made
items that will need a license from BIS
to be exported from abroad to Cuba.
Send comments regarding this burden
estimate or any other aspect of this
collection of information, including
suggestions for reducing the burden, to
Jasmeet K. Seehra, Office of
Management and Budget, by email at
jseehra@omb.eop.gov or by fax to (202)
395–7285 and to William Arvin at
william.arvin@bis.doc.gov.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. The provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, the opportunity for public
participation, and a delay in effective
date, are inapplicable because this
regulation involves a military or foreign
affairs function of the United States (See
5 U.S.C. 553(a)(1)). This rule is a part of
the implementation of the rescission of
Cuba’s designation as a State Sponsor of
Terrorism, which became effective on
May 29, 2015. Delay in implementing
this rule to obtain public comment
would undermine the foreign policy
objectives that the rule is intended to
implement. Further, no other law
requires that a notice of proposed
rulemaking and an opportunity for
public comment be given for this rule.
Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule under 5 U.S.C. 553,
or by any other law, the requirements of
the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) are not applicable.
List of Subjects
15 CFR Part 734
Administrative practice and
procedure, Exports, Inventions and
patents, Research, Science and
technology.
Exports.
15 CFR Parts 740, 748, 750, and 758
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Parts 746 and 774
Exports, Reporting and recordkeeping
requirements.
Accordingly, parts 734, 736, 740, 742,
746, 748, 750, 758, 772, and 774 of the
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Export Administration Regulations (15
CFR parts 730–774) are amended as
follows:
PART 734—[AMENDED]
1. The authority citation for 15 CFR
part 734 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099,
3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; E.O. 13637 of March 8, 2013,
78 FR 16129 (March 13, 2013); Notice of
August 7, 2014, 79 FR 46959 (August 11,
2014); Notice of November 7, 2014, 79 FR
67035 (November 12, 2014).
2. Section 734.4 is amended by
revising paragraph (a)(6)(ii) to read as
follows:
■
§ 734.4
De minimis U.S. content.
(a) * * *
(6) * * *
(ii) There is no de minimis level for
foreign-made items that incorporate
U.S.-origin 9x515 or ‘‘600 series’’ .y
items when destined for a country listed
in Country Group E:1 or E:2 of
Supplement No. 1 to part 740 of the
EAR or for the People’s Republic of
China (PRC).
*
*
*
*
*
PART 736—[AMENDED]
3. The authority citation for 15 CFR
part 736 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 2151 note; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996
Comp., p. 219; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13338, 69 FR 26751, 3 CFR, 2004 Comp., p.
168; Notice of August 7, 2014, 79 FR 46959
(August 11, 2014); Notice of November 7,
2014, 79 FR 67035 (November 12, 2014);
Notice of May 6, 2015, 80 FR 26815 (May 8,
2015).
(6) * * *
4. Section 736.2 is amended by
revising paragraphs (b)(3)(i) and (iii) to
read as follows:
■
15 CFR Parts 736 and 772
PO 00000
43317
§ 736.2 General prohibitions and
determination of applicability.
*
*
*
*
*
(b) * * *
(3) General Prohibition Three—
Reexport and export from abroad of the
foreign-produced direct product of U.S.
technology and software (ForeignProduced Direct Product Reexports)—(i)
Country scope of prohibition. You may
not, without a license or license
exception, reexport any item subject to
the scope of this General Prohibition
E:\FR\FM\22JYR1.SGM
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Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Rules and Regulations
Three to a destination in Country Group
D:1, E:1, or E:2 (See Supplement No.1 to
part 740 of the EAR). Additionally, you
may not, without a license or license
exception, reexport or export from
abroad any ECCN 0A919 commodities
subject to the scope of this General
Prohibition Three to a destination in
Country Group D:1, D:3, D:4, D:5, E:1, or
E:2.
*
*
*
*
*
(iii) Country scope of prohibition for
9x515 or ‘‘600 series’’ items. You may
not, except as provided in paragraphs
(b)(3)(v) or (vi) of this section, reexport
or export from abroad without a license
any ‘‘600 series’’ item subject to the
scope of this General Prohibition Three
to a destination in Country Groups D:1,
D:3, D:4, D:5, E:1, or E:2 (see
Supplement No. 1 to part 740 of the
EAR). You may not, except as provided
in paragraphs (b)(3)(v) or (vi) of this
section, reexport or export from abroad
without a license any 9x515 item
subject to the scope of this General
Prohibition Three to a destination in
Country Groups D:5, E:1, or E:2 (see
Supplement No. 1 to part 740 of the
EAR).
*
*
*
*
*
■ 5. Supplement No. 1 to part 736 is
amended by revising the heading and
paragraph (c) to read as follows:
Supplement No. 1 to Part 736—General
Orders
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*
*
*
*
*
(c) General Order No. 3:
General Order No. 3 of July 22, 2015.
Certain licenses issued by BIS prior to
July 22, 2015 contain conditions that
restrict the export, reexport, or transfer
(in-country) to or within Country Group
E:1 as specified in Supplement No. 1 to
part 740 of the EAR. At the time those
license were issued, Cuba was in
Country Group E:1. Many of those
restrictions were intended to apply to
Cuba, not only as a State Sponsor of
Terrorism but also as a country subject
to unilateral embargo. However, BIS did
not always list both Country Groups E:1
and E:2 in license conditions because, at
the time, doing so would have been
redundant. However, with the rescission
of Cuba’s designation as a State Sponsor
of Terrorism and resultant removal from
Country Group E:1, continuing those
conditions with respect to Cuba is
consistent with the embargo.
Accordingly, all conditions that apply to
Country Group E:1 on licenses issued
prior to July 22, 2015 that are in effect
on that date, are revised to apply to
Country Groups E:1 and E:2 as specified
in Supplement No. 1 to part 740 of the
EAR. Licensees who seek authorization
VerDate Sep<11>2014
15:06 Jul 21, 2015
Jkt 235001
for transactions that are affected by this
General Order No. 3 may submit license
applications that refer to General Order
No. 3 and explain the reason for the
request in Block 24 of the application.
All license applications involving Cuba
are reviewed pursuant to the licensing
policy in § 746.2(b) of the EAR. The
request should provide any available
information in support of the argument
that the transaction would be consistent
with the licensing policy in § 746.2(b) of
the EAR.
*
*
*
*
*
PART 740—[AMENDED]
6. The authority citation for 15 CFR
part 740 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Notice of August 7, 2014, 79
FR 46959 (August 11, 2014).
§ 740.6
[Amended]
7. Section 740.6 is amended by
removing the phrase ‘‘D:1 or E:1’’
wherever it appears in paragraphs (a)(1)
and (2) and adding in its place the
phrase ‘‘D:1, E:1, or E:2’’.
■
Supplement No. 1 to Part 740
[Amended]
8. Supplement No. 1 to part 740 is
amended by removing the ‘‘X’’ from the
row for Cuba in the E:1 column of the
‘‘Country Group E’’ table.
■
9. The authority citation for 15 CFR
part 742 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Presidential Determination
2003–23 of May 7, 2003, 68 FR 26459, May
16, 2003; Notice of August 7, 2014, 79 FR
46959 (August 11, 2014); Notice of November
7, 2014, 79 FR 67035 (November 12, 2014).
[Amended]
10. Section 742.1 is amended by
removing the word ‘‘Cuba’’ and the
comma that follows it from each place
that it appears in paragraph (d).
■
Supplement No. 2 to Part 742
[Amended]
11. Supplement No. 2 to part 742 is
amended by removing the word ‘‘Cuba’’
■
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
PART 746—[AMENDED]
12. The authority citation for 15 CFR
part 746 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503,
Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;
22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
Comp., p. 899; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
26751, 3 CFR, 2004 Comp., p 168;
Presidential Determination 2003–23 of May
7, 2003, 68 FR 26459, May 16, 2003;
Presidential Determination 2007–7 of
December 7, 2006, 72 FR 1899 (January 16,
2007); Notice of August 7, 2014, 79 FR 46959
(August 11, 2014); Notice of May 6, 2015, 80
FR 26815 (May 8, 2015).
13. Section 746.2 is amended by:
a. Removing paragraph (b)(3);
b. Redesignating paragraphs (b)(4), (5),
and (6) as paragraphs (b)(3), (4), and (5),
respectively;
■ c. Removing the phrase ‘‘or counterterrorism’’ from the first sentence of
newly designated paragraph (b)(3)(i);
■ d. Removing paragraph (c);
■ e. Redesignating paragraphs (d) and
(e) as paragraphs (c) and (d),
respectively; and
■ f. Revising newly designated
paragraph (d).
The revision to read as follows:
■
■
■
§ 746.2
Cuba.
*
PART 742—[AMENDED]
§ 742.1
and the comma that follows it from
paragraphs (a) and (b)(1).
*
*
*
*
(d) Related controls. OFAC maintains
controls on the activities of persons
subject to U.S. jurisdiction, wherever
located, involving transactions with
Cuba or any Cuban national, as
provided in 31 CFR part 515. Exporters
and reexporters should consult with
OFAC for further guidance on its related
controls.
PART 748—[AMENDED]
14. 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 7, 2014, 79 FR 46959 (August 11,
2014).
Supplement No. 2 to Part 748
[Amended]
15. Supplement No. 2 to part 748 is
amended by removing the phrase
‘‘Country Group D:1 or E:1’’ wherever it
appears in paragraphs (i)(2)(x) and
(o)(3)(i) and adding in its place the
phrase ‘‘Country Group D:1, E:1, or E:2’’.
■
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22JYR1
Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Rules and Regulations
PART 750—[AMENDED]
Comp., p. 783; Notice of August 7, 2014, 79
FR 46959 (August 11, 2014).
16. The authority citation for 15 CFR
part 750 continues to read as follows:
■
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; Sec 1503, Pub. L. 108–
11, 117 Stat. 559; E.O. 13026, 61 FR 58767,
3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; E.O.
13637 of March 8, 2013, 78 FR 16129 (March
13, 2013); Presidential Determination 2003–
23 of May 7, 2003, 68 FR 26459, May 16,
2003; Notice of August 7, 2014, 79 FR 46959
(August 11, 2014).
§ 750.4
[Amended]
17. Section 750.4 is amended by
removing the word ‘‘Cuba’’ and the
comma immediately following it from
paragraph (b)(6)(i).
■
PART 758—[AMENDED]
18. The authority citation for 15 CFR
part 758 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
7, 2014, 79 FR 46959 (August 11, 2014).
§ 758.1
[Amended]
19. Section 758.1 is amended by
adding the phrase ‘‘or E:2’’ immediately
following the phrase ‘‘Country Group
E:1’’ in paragraph (b)(1).
■
§ 758.2
[Amended]
20. Section 758.2 is amended by
adding the phrase ‘‘or E:2’’ immediately
following the phrase ‘‘Country Group
E:1’’ in paragraph (b)(3).
■
PART 772—[AMENDED]
21. The authority citation for 15 CFR
part 772 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
7, 2014, 79 FR 46959 (August 11, 2014).
§ 772.1
[Amended]
22. Section 772.1 is amended by
removing the word ‘‘Cuba’’ and the
comma that follows it from the
definition of ‘‘Countries supporting
international terrorism.’’
■
PART 774—[AMENDED]
23. The authority citation for 15 CFR
part 774 continues to read as follows:
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■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
VerDate Sep<11>2014
15:06 Jul 21, 2015
Jkt 235001
24. In supplement No. 1 to part 774
(The Commerce Control List), Export
Control Classification Number (ECCN)
1C350 is amended by revising second
paragraph that follows the License
Requirements table to read as follows:
Supplement No. 1 to Part 774—The
Commerce Control List
*
*
*
*
*
1C350 Chemicals that may be used as
precursors for toxic chemical agents
(see List of Items Controlled).
License Requirements
*
*
*
*
*
AT applies to entire entry. The
Commerce Country Chart is not
designed to determine licensing
requirements for items controlled for AT
reasons in 1C350. A license is required,
for AT reasons, to export or reexport
items controlled by 1C350 to a country
in Country Group E:1 of Supplement
No. 1 to part 740 of the EAR. (See part
742 of the EAR for additional
information on the AT controls that
apply to Iran, North Korea, Sudan, and
Syria. See part 746 of the EAR for
additional information on sanctions that
apply to Iran, North Korea, and Syria.)
*
*
*
*
*
■ 25. In supplement No. 1 to part 774,
ECCN 1C355 is amended by revising the
second ‘‘Control(s)’’ paragraph to read
as follows:
1C355 Chemical Weapons Convention
(CWC) Schedule 2 and 3 chemicals and
families of chemicals not controlled by
ECCN 1C350 or ‘‘subject to the ITAR’’ (see
22 CFR parts 120 through 130) (see List of
Items Controlled).
License Requirements
*
*
*
*
*
Control(s): * * *
AT applies to entire entry. The
Commerce Country Chart is not
designed to determine licensing
requirements for items controlled for AT
reasons in 1C350. A license is required,
for AT reasons, to export or reexport
items controlled by 1C350 to a country
in Country Group E:1 of Supplement
No. 1 to part 740 of the EAR. (See part
742 of the EAR for additional
information on the AT controls that
apply to Iran, North Korea, Sudan, and
Syria. See part 746 of the EAR for
additional information on sanctions that
apply to Iran, North Korea, and Syria.)
*
*
*
*
*
■ 26. In supplement No. 1 to part 774,
ECCN 1C395 is amended by revising the
third ‘‘Control(s)’’ paragraph to read as
follows:
PO 00000
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Fmt 4700
Sfmt 4700
43319
1C395 Mixtures and Medical, Analytical,
Diagnostic, and Food Testing Kits Not
Controlled by ECCN 1C350, as follows (See
List of Items Controlled).
License Requirements
*
*
*
*
*
Control(s): * * *
AT applies to entire entry. The
Commerce Country Chart is not
designed to determine licensing
requirements for items controlled for AT
reasons in 1C395. A license is required,
for AT reasons, to export or reexport
items controlled by 1C395 to a country
in Country Group E:1 of Supplement
No. 1 to part 740 of the EAR. (See part
742 of the EAR for additional
information on the AT controls that
apply to Iran, North Korea, Sudan, and
Syria. See part 746 of the EAR for
additional information on sanctions that
apply to Iran, North Korea, and Syria.)
*
*
*
*
*
■ 27. In supplement No. 1 to part 774,
ECCN 2A994 is amended by revising the
‘‘Control(s)’’ paragraph to read as
follows:
2A994 Portable electric generators and
‘‘specially designed’’ ‘‘parts’’ and
‘‘components.’’
*
*
*
*
*
Control(s): AT applies to entire entry. A
license is required for items
controlled by this entry to Iran and
North Korea. The Commerce Country
Chart is not designed to determine
licensing requirements for this entry.
See part 746 of the EAR for additional
information on Iran. See § 742.19 of
the EAR for additional information on
North Korea.
*
*
*
*
*
■ 28. In supplement No. 1 to part 774,
ECCN 2D994 is amended by revising the
‘‘Control(s)’’ paragraph to read as
follows:
2D994 ‘‘Software’’ ‘‘specially designed’’ for
the ‘‘development’’ or ‘‘production’’ of
portable electric generators controlled by
2A994.
License Requirements
*
*
*
*
*
Control(s): AT applies to entire entry. A
license is required for items
controlled by this entry to Iran and
North Korea for anti-terrorism
reasons. The Commerce Country
Chart is not designed to determine
licensing requirements for this entry.
See part 746 of the EAR for additional
information on Iran. See § 742.19 of
the EAR for additional information on
North Korea.
*
*
*
*
*
E:\FR\FM\22JYR1.SGM
22JYR1
43320
Federal Register / Vol. 80, No. 140 / Wednesday, July 22, 2015 / Rules and Regulations
29. In supplement No. 1 to part 774,
ECCN 2E994 is amended by revising the
‘‘Control(s)’’ paragraph to read as
follows:
■
2E994 ‘‘Technology’’ for the ‘‘use’’ of
portable electric generators controlled by
2A994.
License Requirements
*
*
*
*
*
Control(s): AT applies to entire entry. A
license is required for items
controlled by this entry to Iran and
North Korea for anti-terrorism
reasons. The Commerce Country
Chart is not designed to determine
licensing requirements for this entry.
See part 746 of the EAR for additional
information on Iran. See § 742.19 of
the EAR for additional information on
North Korea.
*
*
*
*
*
ECCN 4A001—[Amended]
30. In supplement No. 1 to part 774,
ECCN 4A003 is amended by adding the
phrase ‘‘or E:2’’ immediately following
the phrase ‘‘Country Group E:1’’ in the
note that immediately follows the
License Requirements table.
■
Dated: July 17, 2015.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
the accuracy of the regulations. This
document confirms the effective date of
the direct final rule.
DATES: Effective date of the final rule
published in the Federal Register of
April 13, 2015 (80 FR 19530),
confirmed: August 26, 2015.
FOR FURTHER INFORMATION CONTACT:
Scott Gonzalez, Center for Devices and
Radiological Health, Food and Drug
Administration, 10903 New Hampshire
Ave., Bldg. 66, Rm. 4641, Silver Spring,
MD 20993–0002, 301–796–5889.
SUPPLEMENTARY INFORMATION: In the
Federal Register of April 13, 2015 (80
FR 19530), FDA solicited comments
concerning the direct final rule for a 75day period ending June 29, 2015. We
stated that the effective date of the
direct final rule would be on August 26,
2015, 30 days after the end of the
comment period, unless FDA received
any significant adverse comment during
the comment period. FDA did not
receive any significant adverse
comments.
Authority: 21 U.S.C. 351, 352, 360e–360j,
360hh–360ss, 371, 381. Accordingly, the
amendment issued thereby is effective.
Dated: July 16, 2015.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2015–17930 Filed 7–21–15; 8:45 am]
BILLING CODE 4164–01–P
[FR Doc. 2015–17981 Filed 7–21–15; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF VETERANS
AFFAIRS
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
38 CFR Parts 17, 39, 48, 49, 51, 52, 53,
59, 61, 62, and 64
Food and Drug Administration
RIN 2900–AP22
21 CFR Part 1020
[Docket No. FDA–2015–N–0828]
Performance Standards for Ionizing
Radiation Emitting Products;
Fluoroscopic Equipment; Correction;
Confirmation of Effective Date
Uniform Administrative Requirements,
Cost Principles, and Audit
Requirements for Federal Awards;
Updating References
AGENCY:
AGENCY:
Food and Drug Administration,
HHS.
Direct final rule; confirmation of
effective date.
ACTION:
The Food and Drug
Administration (FDA or we) is
confirming the effective date of August
26, 2015, for the direct final rule that
appeared in the Federal Register of
April 13, 2015. The direct final rule
amends a Federal performance standard
for ionizing radiation to correct a
drafting error regarding fluoroscopic
equipment measurement. We are taking
this action to ensure clarity and improve
Lhorne on DSK7TPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
15:06 Jul 21, 2015
Jkt 235001
ACTION:
Department of Veterans Affairs.
Final rule.
The Department of Veterans
Affairs (VA) is amending its regulations
with updated citations and references to
Office of Management and Budget
(OMB) authorities for Federal grant
programs. OMB has issued final
guidance, located in Title 2 of the Code
of Federal Regulations (CFR), which
streamlines and supersedes
requirements previously found in
various OMB Circulars. VA has adopted
OMB’s guidance, and this rule replaces
the obsolete OMB references in VA’s
regulations.
SUMMARY:
This final rule is effective July
22, 2015.
DATES:
PO 00000
Frm 00020
Fmt 4700
Sfmt 4700
FOR FURTHER INFORMATION CONTACT:
Brian McCarthy, Office of Regulatory
and Administrative Affairs (10B4),
Veterans Health Administration,
Department of Veterans Affairs, 810
Vermont Ave. NW., Washington, DC
20420, (202) 461–6345. (This is not a
toll-free telephone number.)
SUPPLEMENTARY INFORMATION: The Office
of Management and Budget (OMB) is
streamlining the Federal government’s
guidance on Administrative
Requirements, Cost Principles, and
Audit Requirements for Federal awards.
In a document published in the Federal
Register on December 26, 2013 (78 FR
78590), OMB adopted final guidance,
Uniform Administrative Requirements,
Cost Principles, and Audit
Requirements for Federal Awards
(Uniform Guidance), that supersedes
and streamlines requirements from
OMB Circulars A–21, A–87, A–110, and
A–122 (which have been placed in OMB
guidances); Circulars A–89, A–102, and
A–133; and the guidance in Circular
A–50 on Single Audit Act follow-up.
The final guidance is located in title 2
of the Code of Federal Regulations
(CFR).
On December 19, 2014, OMB
published a joint interim final rule in
the Federal Register (79 FR 75871).
OMB made technical corrections to the
Uniform Guidance, and Federal
awarding agencies, including VA,
implemented the guidance in their
respective chapters of title 2 of the CFR.
VA amended title 2 of the CFR to add
part 802. Section 802.101 of title 2 CFR
now provides, ‘‘The Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards set forth in 2 CFR part
200 shall apply to the Department of
Veterans Affairs.’’ VA also removed
parts 41 and 43 from title 38 CFR. Those
parts codified OMB Circulars that were
superseded by the Uniform Guidance.
Because of these changes, existing
references in VA’s regulations to the
superseded OMB guidance documents
and to parts 41 and 43 are obsolete.
Accordingly, we are amending various
VA regulations located in 38 CFR parts
17, 39, 48, 51, 52, 53, 59, 61, 62, and 64
to replace the obsolete references with
references to the current authority. For
the same reason, we are removing part
49 of title 38 CFR, which codified OMB
Circular A–110, and amending VA’s
regulations referencing part 49 to
reference 2 CFR part 200 instead.
Administrative Procedure Act
The Secretary of Veterans Affairs
finds there is good cause under the
provisions of 5 U.S.C. 553(b)(B) and
(d)(3) to publish this rule without prior
E:\FR\FM\22JYR1.SGM
22JYR1
]]>Agencies
[Federal Register Volume 80, Number 140 (Wednesday, July 22, 2015)]
[Rules and Regulations]
[Pages 43314-43320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17981]
[[Page 43314]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 736, 740, 742, 746, 748, 750, 758, 772, and 774
[Docket No. 150416374-5374-01]
RIN 0694-AG60
Cuba: Implementing Rescission of State Sponsor of Terrorism
Designation
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Export Administration Regulations (EAR)
to implement the rescission of Cuba's designation as a State Sponsor of
Terrorism. Specifically, this rule removes anti-terrorism (AT) license
requirements from Cuba and eliminates references to Cuba as a State
Sponsor of Terrorism, but maintains preexisting license requirements
for all items subject to the EAR unless authorized by a license
exception. This rule also removes Cuba from Country Group E:1
(terrorist supporting countries), which makes Cuba eligible for a
general 25 percent de minimis level and portions of four license
exceptions. The Secretary of State rescinded the designation of Cuba as
a State Sponsor of Terrorism on May 29, 2015.
DATES: This rule is effective July 22, 2015.
FOR FURTHER INFORMATION CONTACT: Foreign Policy Division, Office of
Nonproliferation and Treaty Compliance, Bureau of Industry and
Security, Phone: (202) 482-4252.
SUPPLEMENTARY INFORMATION:
Contents
I. Background
II. Removal of Anti-Terrorism Controls and Text Associating Cuba
With Terrorism
III. Jurisdiction--Items That Are Subject to the Ear
A. Items With More Than de minimis Controlled U.S. Origin
Content
B. Items That Are the Direct Product of U.S.-Origin National
Security Technology or Software
IV. Provisions Impacted by Cuba's Removal From County Group E:1
V. Provisions Being Amended To Retain Existing Cuba-Related
Requirements
I. Background
The United States maintains a comprehensive embargo on trade with
Cuba. Pursuant to that embargo, all items that are subject to the
Export Administration Regulations (EAR) require a license for export or
reexport to Cuba unless authorized by a license exception. The Bureau
of Industry and Security (BIS) administers export and reexport
restrictions on Cuba consistent with the goals of that embargo and with
relevant law. Accordingly, BIS may issue specific or general
authorizations in the form of licenses or license exceptions for
transactions that support the goals of United States policy while the
embargo remains in effect.
On December 17, 2014, the President announced that the United
States is taking steps to chart a new course in bilateral relations
with Cuba and to further engage and empower the Cuban people. As one of
these steps, the President directed the Secretary of State to review
Cuba's designation as a State Sponsor of Terrorism and provide a report
to the President within six months. Cuba was designated as a State
Sponsor of Terrorism in 1982. Pursuant to Sections 6(a) and 6(j) of the
Export Administration Act of 1979, as amended (EAA), State Sponsors of
Terrorism are subject to anti-terrorism (AT) controls and certain other
restrictions in the EAR. Once designated, a country remains a State
Sponsor of Terrorism until its designation is rescinded in accordance
with the relevant statutes (Section 6(j) of the EAA; Section 40 of the
Arms Export Control Act of 1976, as amended; and Section 620A of the
Foreign Assistance Act of 1961, as amended).
There are two possible paths to rescission of a State Sponsor of
Terrorism designation under the relevant statutes. The first requires
the President to submit a report to Congress before the proposed
rescission would take effect certifying that (1) there has been a
fundamental change in the leadership and policies of the government of
the country concerned, (2) the government is not supporting acts of
international terrorism, and (3) the government has provided assurances
that it will not support acts of international terrorism in the future.
The second path requires that the President submit a report to
Congress, at least 45 days before the proposed rescission would take
effect, justifying the rescission and certifying the subject government
has not provided any support for international terrorism for the
preceding six-month period and has given assurances that it will not
support acts of international terrorism in the future. The rescission
of Cuba's designation was done consistent with the second path.
On April 8, 2015, the Secretary of State completed the review
requested by the President and submitted his analysis to the President
recommending that Cuba should no longer be designated as a State
Sponsors of Terrorism. On April 14, 2015, the President submitted to
Congress the statutorily required report indicating the
Administration's intent to rescind Cuba's State Sponsor of Terrorism
designation, including the certification that Cuba has not provided any
support for international terrorism during the previous six months; and
that Cuba has provided assurances that it will not support acts of
international terrorism in the future. The Secretary of State then made
the final decision to rescind Cuba's designation as a State Sponsor of
Terrorism, which was effective on May 29, 2015. Accordingly, this rule
removes references to Cuba as a State Sponsor of Terrorism and removes
anti-terrorism (AT) controls from Cuba.
However, Cuba is still subject to a comprehensive embargo and, as
specified in Sec. 746.2(a) of the EAR, a license is still required to
export or reexport to Cuba any item subject to the EAR unless
authorized by a license exception. Only those license exceptions listed
in Sec. 746.2(a) may be used to export or reexport to Cuba. These
requirements of Sec. 746.2(a) apply to all items subject to the EAR,
including EAR99 items and items that are controlled on the Commerce
Control List (CCL) only for AT reasons.
II. Removal of Anti-Terrorism Controls and Text Associating Cuba With
Terrorism
This rule removes:
The reference to ``counter-terrorism'' from the licensing
policy that applies to certain exports intended to provide support for
the Cuban people that appears in Sec. 746.2(b)(4)(i) (which will be
redesignated as Sec. 746.2(b)(3)(i));
Sec. 746.2(c), which identifies Cuba as a country whose
government has repeatedly provided support for acts of international
terrorism;
the references to ``terrorism'' and ``state sponsors of
terrorism'' from Sec. 746.2(e), which describes the license
requirements regarding Cuba of the U.S. Department of the Treasury,
Office of Foreign Assets Control and the U.S. Department of State; and
the word ``Cuba'' from the statements of anti-terrorism
license requirements in Export Control Classification Numbers 1C350,
1C355, 1C395, 2A994, 2D994 and 2E994.
This rule also removes Cuba from the following provisions, which
list countries that have been designated as State Sponsors of Terrorism
or that have repeatedly supported acts of international terrorism:
Sec. 742.1(d); Supplement No. 2 to part 742,
[[Page 43315]]
paragraphs (a) and (b)(1); Sec. 750.4(b)(6)(i); and Sec. 772.1,
definition of ``countries supporting international terrorism.''
Finally, this rule removes Cuba from Country Group E:1--Terrorist
Supporting Countries--in Supplement No. 1 to Part 740--Country Groups.
However, Cuba remains in Country Group E:2--Unilateral embargo. Cuba
also remains in Country Groups D:2, D:3, and D:5. Because country
groups are used to specify the countries that are subject to certain
provisions of the EAR, particularly license exceptions, and to impose
certain restrictions, removal of Cuba from Country Group E:1 can have
effects elsewhere in the EAR as will be discussed below.
III. Jurisdiction--Items That Are Subject to the EAR
A. Items With More Than de minimis Controlled U.S. Origin Content
The EAR apply to items that contain more than a de minimis amount
of controlled U.S.-origin content including foreign-made items located
outside the United States. For most items, the de minimis level is 10
percent if the destination of the foreign-made item is in Country Group
E:1 and 25 percent if the destination is elsewhere. The removal of Cuba
from Country Group E:1 raises the de minimis level to 25 percent for
most items destined for Cuba. Additionally, since Cuba is no longer in
Country Group E:1, the 25 percent de minimis level now applies to
certain foreign-made encryption items destined for Cuba that meet the
criteria specified in Sec. 734.4(b)(1)(iii) of the EAR.
With the general increase in the de minimis level to 25 percent,
paragraph (b)(3) of Sec. 746.2, which described the circumstances
under which foreign made items containing an insubstantial proportion
of U.S. origin content (i.e., not exceeding 20 percent) would generally
be considered favorably, is no longer needed, so this rule removes that
paragraph.
Foreign-made items destined for Cuba that incorporate U.S.-origin
9x515 or ``600 series'' .y content continue to be subject to the EAR
regardless of the level of U.S.-origin content, i.e., there is no de
minimis for these items when destined for Cuba. To maintain this
exclusion with respect to Cuba, this rule adds Country Group E:2 to the
list of destinations (Country Group E:1 and the People's Republic of
China) subject to that exclusion. Since 9x515 and ``600 series'' .y
items are ``specially designed'' items transferred from the United
States Munitions List to the CCL, this de minimis exclusion is still
warranted for countries subject to unilateral embargo. Accordingly, BIS
is amending Sec. 734.4(a)(6)(ii) to include Country Group E:2.
B. Items That Are the Direct Product of U.S.-Origin National Security
Technology and Software
The EAR apply to foreign-made national security items that are the
direct product of U.S.-origin national security technology and
software. Such items are subject to the EAR (and require a license) if
destined to a country in Country Group D:1 or E:1. This rule retains
Cuba as one of the destinations that is subject to this requirement by
adding Country Group E:2 to Sec. 736.2(b)(3).
IV. Provisions Impacted by Cuba's Removal From County Group E:1
The provisions of the four license exceptions described below
contain restrictions that apply to countries in Country Group E:1 or to
nationals of those countries. This section describes the restrictions
that will no longer apply to Cuba or Cuban nationals as a result of
Cuba's removal from Country Group E:1. This rule makes no change to the
text of the four license exceptions because the removal of the
restrictions results from the removal of Cuba from Country Group E:1
and no changes to the text of the license exceptions are needed.
License Exception Servicing and Replacement of Parts and Equipment
(RPL)
The removal of Cuba from Country Group E:1 implicates only
paragraph (a) of License Exception Servicing and Replacement of Parts
and Equipment (RPL) in Sec. 740.10 because only paragraph (a), which
authorizes export and reexport of one-for-one replacement parts for
items previously lawfully exported, is authorized for Cuba in Sec.
746.2 of the EAR. Since Cuba is no longer in Country Group E:1, the
following exclusions to License Exception RPL, paragraph (a) no longer
apply to Cuba: paragraph (a)(3)(iv), which excludes parts, components,
accessories, or attachments to repair ``aircraft'' or commodities
controlled for national security (NS) reasons; paragraph (a)(3)(v),
which excludes parts, components, accessories, or attachments to repair
explosives detection equipment classified under Export Control
Classification Number (ECCN) 2A983 or related software classified under
ECCN 2D983; and paragraph (a)(3)(vi) which excludes parts, components,
accessories, or attachments to repair concealed object detection
equipment classified under ECCN 2A984 or related software classified
under ECCN 2D984.
License Exception Governments, International Organizations,
International Inspections Under the Chemical Weapons Convention, and
the International Space Station (GOV)
Since Cuba is no longer in Country Group E:1, the following
restrictions in License Exception GOV (Sec. 740.11) no longer apply to
Cuban nationals: Paragraph (a)(2)(iv), which restricts physical or
computational access by Country Group E:1 nationals to certain
computers for authorized international safeguard use in connection with
activities of the International Atomic Energy Agency and the European
Atomic Energy Community; paragraph (d)(4), which restricts physical or
computational access by Country Group E:1 nationals to certain
computers for authorized international inspection and verification use
in connection with the activities of the Organization for the
Prohibition of Chemical Weapons; and paragraph (e)(7)(i), which
precludes export, reexport or transfer (in-country) to Country Group
E:1 nationals of items used to support the International Space Station.
Additionally, paragraph (e)(8)(iii), which precludes return of parts
for the International Space Station to destinations in Country Group
E:1, no longer applies to Cuba.
License Exception Baggage (BAG)
Since Cuba is no longer in Country Group E:1, Sec. 740.14(f)(1),
which authorizes certain exports and reexports of encryption
commodities and software subject to Encryption Items (EI) controls on
the CCL by United States citizens and permanent resident aliens to
destinations other than Country Group E:1, and Sec. 740.14(f)(2),
which authorizes such exports and reexports by individuals other than
nationals of a country in Country Group E:1, no longer apply to Cuba or
Cuban nationals. Additionally, Sec. 740.14(g), which authorizes
certain exports and reexports of technology by U.S. persons, but
excludes in paragraph (g)(4) exports and reexports of encryption
technology controlled in ECCN 5E002 to destinations in Country Group
E:1, no longer applies to Cuba.
License Exception Aircraft, Vessels and Spacecraft (AVS)
The removal of Cuba from Country Group E:1 implicates only
paragraph (a) of License Exception Aircraft, Vessels and Spacecraft
(AVS) in Sec. 740.15 because only paragraph (a), which authorizes
aircraft on temporary
[[Page 43316]]
sojourn, is authorized for Cuba in Sec. 746.2 of the EAR. Since Cuba
is no longer in Country Group E:1, Cuba is no longer subject to the
following restrictions:
Paragraph (a)(1)(i), which prohibits use of AVS for
foreign registered aircraft that were transferred to a national of a
country in Country Group E:1 while in the United States;
Paragraph (a)(1)(ii), which prohibits use of AVS for
foreign registered aircraft that are departing the United States for
purpose of transfer to a national of a country in Country Group E:1;
Paragraph (a)(2)(ii), which prohibits use of AVS for U.S.
registered aircraft that are not operating under an Air Carrier
Operating Certificate, Commercial Operating Certificate or Air Taxi
Operating Certificate from using AVS for temporary sojourns to a
country in Country Group E:1;
Paragraph (a)(3)(iv), which prohibits principal
maintenance in Country Group E:1 or right to control the principal
place of maintenance by a national of a country in Country Group E:1;
Paragraph (a)(3)(v), which prohibits location of spares in
a destination in Country Group E:1;
Paragraph (a)(3)(vi), which prohibits changing the place
of registration to a destination in Country Group E:1;
Paragraph (a)(3)(vii), which prohibits transfer of
technology to a national of a country in Country Group E:1;
Paragraph (a)(3)(viii), which prohibits aircraft bearing
livery, colors or logos of a national of a country in Country Group
E:1; and
Paragraph (a)(3)(ix), which prohibits flying under a
flight number issued to a national of a country in Country Group E:1.
V. Provisions Being Amended To Retain Existing Cuba-Related
Requirements
Although Cuba is removed from Country Group E:1, Cuba is still
subject to a comprehensive embargo and, as specified in Sec. 746.2(a)
of the EAR, a license is still required to export or reexport to Cuba
any item subject to the EAR unless authorized by a license exception.
This rule makes the changes described below to retain the applicability
of certain provisions and license conditions to Cuba, consistent with
the embargo, that would otherwise cease as a result of Cuba's removal
from Country Group E:1. While Cuba was in Country Group E:1, a separate
reference to Country Group E:2 would have had no effect on exports or
reexports to Cuba. With the removal of Cuba from Country Group E:1, it
is necessary to explicitly link these provisions and conditions to the
embargo.
Written Assurance for License Exception Technology and Software Under
Restriction (TSR)
Before an exporter or reexporter is able to use License Exception
Technology and Software under Restriction (TSR) in Sec. 740.6 of the
EAR to export or reexport software or technology controlled for
national security reasons, the exporter or reexporter must obtain a
written assurance from the consignee that the software or technology
transferred and its direct product will not be sent to destinations in
Country Group D:1 or E:1 or released to nationals thereof. This rule
retains that restriction with respect to Cuba by adding Country Group
E:2 to those written assurance requirements. The need for a written
assurance is appropriate for countries in Country Groups E:1 and E:2.
However, until the removal of Cuba from Country Group E:1, listing both
country groups would have been redundant.
Note that License Exception TSR does not authorize exports or
reexports to Cuba because it is not specified in Sec. 746.2(a)(1) of
the EAR and because, by its terms, License Exception TSR is available
only for destinations in Country Group B, which does not include Cuba.
Supplement No. 2 to Part 748--Unique Application and Submission
Requirements
Supplement No. 2 to Part 748 of the EAR describes information
required to be included in license applications for certain specific
situations. Paragraph (i)(2)(x) requires that technology intended to
accompany any shipment to destinations in Country Group D:1 or E:1 be
described in the application. Paragraph (o)(3)(i) requires applicants
for licenses to export or reexport national security controlled
technology to obtain a written assurance against transfer to
destinations in Country Groups D:1 or E:1. This rule adds Country Group
E:2 to both paragraphs to continue both requirements with respect to
Cuba.
Export Clearance Requirements
Part 758 of the EAR describes certain export clearance
requirements. Section 758.1(b)(1) makes the $2,500 threshold below
which most exports need not be filed in the Automated Export System
(AES) inapplicable for exports to Country Group E:1 by requiring such
filing for exports to Country Group E:1 regardless of value. This rule
retains that requirement for exports to Cuba by adding Country Group
E:2 to Sec. 758.1(b)(1).
Section 758.2(b)(3) makes export to Country Group E:1 grounds for
rejecting applications for post-departure filing in AES (i.e.,
authorization to file after the exporting carrier departs the port of
export). This rule retains export to Cuba as a ground for rejection by
adding Country Group E:2 to Sec. 758.2(b)(3).
License Condition General Order
Supplement No. 1 to Part 736 of the EAR contains certain general
orders. This rule adds General Order No. 3, which was reserved, to
continue all restrictions on transactions with Cuba or Cuban nationals,
by reference to Country Group E:1, that are contained in licenses
issued prior to July 22, 2015. Certain licenses issued by BIS contain
conditions that restrict the export, reexport, or transfer (in-country)
to State Sponsors of Terrorism and countries subject to unilateral
embargo by reference to Country Group E:1. Many of those restrictions
were intended to apply to Cuba, not only as a State Sponsor of
Terrorism but also as a country subject to unilateral embargo. However,
BIS did not always list both Country Groups E:1 and E:2 in license
conditions because, at the time, doing so would have been redundant.
This general order applies those conditions to Country Groups E:1 and
E:2. Licensees who seek authorization for transactions that are
affected by General Order No. 3, may submit license applications that
refer to General Order No. 3 and explain the reason for the request in
Block 24 of the application. All license applications involving Cuba
are reviewed pursuant to the licensing policy in Sec. 746.2(b) of the
EAR.
ECCN 4A003
This rule adds a reference to Country Group E:2 to the note that
immediately follows the control table in ECCN 4A003. That note states
that except for destinations in Country Group E:1, no license is
required for computers with an Adjusted Peak Performance not exceeding
8.0 weighted teraFLOPS. The addition of Country Group E:2 retains
Cuba's status as a destination for which a license is required.
Export Administration Act
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March
8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of
August
[[Page 43317]]
7, 2014, 79 FR 46959 (August 11, 2014), has continued the Export
Administration Regulations 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, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action,'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget (OMB).
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) control number. This rule
involves a collection of information approved under OMB control number
0694-0088--Simplified Network Application Processing+ System (SNAP+)
and the Multipurpose Export License Application, which are the methods
for submitting all license applications, commodity classification
requests and similar requests to BIS. The estimated annual total burden
of all of those submissions is 31,833 hours. BIS believes that this
rule will have no material impact on that burden. To the extent that it
has any impact, this rule is likely to reduce the burden for two
reasons. First, this rule might reduce the burden because it makes some
transactions, primarily temporary sojourns in Cuba of general aviation
aircraft, which would otherwise require a license, eligible for a
license exception. Second, because this rule raises the percentage of
U.S.-origin content that a foreign-made item must have before its
export from abroad to Cuba becomes subject to the EAR, it reduces the
number of foreign-made items that will need a license from BIS to be
exported from abroad to Cuba.
Send comments regarding this burden estimate or any other aspect of
this collection of information, including suggestions for reducing the
burden, to Jasmeet K. Seehra, Office of Management and Budget, by email
at jseehra@omb.eop.gov or by fax to (202) 395-7285 and to William Arvin
at william.arvin@bis.doc.gov.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military or foreign affairs function
of the United States (See 5 U.S.C. 553(a)(1)). This rule is a part of
the implementation of the rescission of Cuba's designation as a State
Sponsor of Terrorism, which became effective on May 29, 2015. Delay in
implementing this rule to obtain public comment would undermine the
foreign policy objectives that the rule is intended to implement.
Further, no other law requires that a notice of proposed rulemaking and
an opportunity for public comment be given for this rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required to be given for this rule under 5 U.S.C. 553, or by any
other law, the requirements of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) are not applicable.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology.
15 CFR Parts 736 and 772
Exports.
15 CFR Parts 740, 748, 750, and 758
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Parts 746 and 774
Exports, Reporting and recordkeeping requirements.
Accordingly, parts 734, 736, 740, 742, 746, 748, 750, 758, 772, and
774 of the Export Administration Regulations (15 CFR parts 730-774) are
amended as follows:
PART 734--[AMENDED]
0
1. The authority citation for 15 CFR part 734 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013);
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of
November 7, 2014, 79 FR 67035 (November 12, 2014).
0
2. Section 734.4 is amended by revising paragraph (a)(6)(ii) to read as
follows:
Sec. 734.4 De minimis U.S. content.
(a) * * *
(6) * * *
(ii) There is no de minimis level for foreign-made items that
incorporate U.S.-origin 9x515 or ``600 series'' .y items when destined
for a country listed in Country Group E:1 or E:2 of Supplement No. 1 to
part 740 of the EAR or for the People's Republic of China (PRC).
* * * * *
PART 736--[AMENDED]
0
3. The authority citation for 15 CFR part 736 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp.,
p. 168; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014);
Notice of November 7, 2014, 79 FR 67035 (November 12, 2014); Notice
of May 6, 2015, 80 FR 26815 (May 8, 2015).
(6) * * *
0
4. Section 736.2 is amended by revising paragraphs (b)(3)(i) and (iii)
to read as follows:
Sec. 736.2 General prohibitions and determination of applicability.
* * * * *
(b) * * *
(3) General Prohibition Three--Reexport and export from abroad of
the foreign-produced direct product of U.S. technology and software
(Foreign-Produced Direct Product Reexports)--(i) Country scope of
prohibition. You may not, without a license or license exception,
reexport any item subject to the scope of this General Prohibition
[[Page 43318]]
Three to a destination in Country Group D:1, E:1, or E:2 (See
Supplement No.1 to part 740 of the EAR). Additionally, you may not,
without a license or license exception, reexport or export from abroad
any ECCN 0A919 commodities subject to the scope of this General
Prohibition Three to a destination in Country Group D:1, D:3, D:4, D:5,
E:1, or E:2.
* * * * *
(iii) Country scope of prohibition for 9x515 or ``600 series''
items. You may not, except as provided in paragraphs (b)(3)(v) or (vi)
of this section, reexport or export from abroad without a license any
``600 series'' item subject to the scope of this General Prohibition
Three to a destination in Country Groups D:1, D:3, D:4, D:5, E:1, or
E:2 (see Supplement No. 1 to part 740 of the EAR). You may not, except
as provided in paragraphs (b)(3)(v) or (vi) of this section, reexport
or export from abroad without a license any 9x515 item subject to the
scope of this General Prohibition Three to a destination in Country
Groups D:5, E:1, or E:2 (see Supplement No. 1 to part 740 of the EAR).
* * * * *
0
5. Supplement No. 1 to part 736 is amended by revising the heading and
paragraph (c) to read as follows:
Supplement No. 1 to Part 736--General Orders
* * * * *
(c) General Order No. 3:
General Order No. 3 of July 22, 2015. Certain licenses issued by
BIS prior to July 22, 2015 contain conditions that restrict the export,
reexport, or transfer (in-country) to or within Country Group E:1 as
specified in Supplement No. 1 to part 740 of the EAR. At the time those
license were issued, Cuba was in Country Group E:1. Many of those
restrictions were intended to apply to Cuba, not only as a State
Sponsor of Terrorism but also as a country subject to unilateral
embargo. However, BIS did not always list both Country Groups E:1 and
E:2 in license conditions because, at the time, doing so would have
been redundant. However, with the rescission of Cuba's designation as a
State Sponsor of Terrorism and resultant removal from Country Group
E:1, continuing those conditions with respect to Cuba is consistent
with the embargo. Accordingly, all conditions that apply to Country
Group E:1 on licenses issued prior to July 22, 2015 that are in effect
on that date, are revised to apply to Country Groups E:1 and E:2 as
specified in Supplement No. 1 to part 740 of the EAR. Licensees who
seek authorization for transactions that are affected by this General
Order No. 3 may submit license applications that refer to General Order
No. 3 and explain the reason for the request in Block 24 of the
application. All license applications involving Cuba are reviewed
pursuant to the licensing policy in Sec. 746.2(b) of the EAR. The
request should provide any available information in support of the
argument that the transaction would be consistent with the licensing
policy in Sec. 746.2(b) of the EAR.
* * * * *
PART 740--[AMENDED]
0
6. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp.,
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 7, 2014, 79 FR 46959 (August 11, 2014).
Sec. 740.6 [Amended]
0
7. Section 740.6 is amended by removing the phrase ``D:1 or E:1''
wherever it appears in paragraphs (a)(1) and (2) and adding in its
place the phrase ``D:1, E:1, or E:2''.
Supplement No. 1 to Part 740 [Amended]
0
8. Supplement No. 1 to part 740 is amended by removing the ``X'' from
the row for Cuba in the E:1 column of the ``Country Group E'' table.
PART 742--[AMENDED]
0
9. The authority citation for 15 CFR part 742 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of
November 7, 2014, 79 FR 67035 (November 12, 2014).
Sec. 742.1 [Amended]
0
10. Section 742.1 is amended by removing the word ``Cuba'' and the
comma that follows it from each place that it appears in paragraph (d).
Supplement No. 2 to Part 742 [Amended]
0
11. Supplement No. 2 to part 742 is amended by removing the word
``Cuba'' and the comma that follows it from paragraphs (a) and (b)(1).
PART 746--[AMENDED]
0
12. The authority citation for 15 CFR part 746 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C.
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR,
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899
(January 16, 2007); Notice of August 7, 2014, 79 FR 46959 (August
11, 2014); Notice of May 6, 2015, 80 FR 26815 (May 8, 2015).
0
13. Section 746.2 is amended by:
0
a. Removing paragraph (b)(3);
0
b. Redesignating paragraphs (b)(4), (5), and (6) as paragraphs (b)(3),
(4), and (5), respectively;
0
c. Removing the phrase ``or counter-terrorism'' from the first sentence
of newly designated paragraph (b)(3)(i);
0
d. Removing paragraph (c);
0
e. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
respectively; and
0
f. Revising newly designated paragraph (d).
The revision to read as follows:
Sec. 746.2 Cuba.
* * * * *
(d) Related controls. OFAC maintains controls on the activities of
persons subject to U.S. jurisdiction, wherever located, involving
transactions with Cuba or any Cuban national, as provided in 31 CFR
part 515. Exporters and reexporters should consult with OFAC for
further guidance on its related controls.
PART 748--[AMENDED]
0
14. 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 7, 2014, 79 FR
46959 (August 11, 2014).
Supplement No. 2 to Part 748 [Amended]
0
15. Supplement No. 2 to part 748 is amended by removing the phrase
``Country Group D:1 or E:1'' wherever it appears in paragraphs
(i)(2)(x) and (o)(3)(i) and adding in its place the phrase ``Country
Group D:1, E:1, or E:2''.
[[Page 43319]]
PART 750--[AMENDED]
0
16. The authority citation for 15 CFR part 750 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013);
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May
16, 2003; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014).
Sec. 750.4 [Amended]
0
17. Section 750.4 is amended by removing the word ``Cuba'' and the
comma immediately following it from paragraph (b)(6)(i).
PART 758--[AMENDED]
0
18. The authority citation for 15 CFR part 758 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2014, 79 FR 46959 (August 11, 2014).
Sec. 758.1 [Amended]
0
19. Section 758.1 is amended by adding the phrase ``or E:2''
immediately following the phrase ``Country Group E:1'' in paragraph
(b)(1).
Sec. 758.2 [Amended]
0
20. Section 758.2 is amended by adding the phrase ``or E:2''
immediately following the phrase ``Country Group E:1'' in paragraph
(b)(3).
PART 772--[AMENDED]
0
21. The authority citation for 15 CFR part 772 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2014, 79 FR 46959 (August 11, 2014).
Sec. 772.1 [Amended]
0
22. Section 772.1 is amended by removing the word ``Cuba'' and the
comma that follows it from the definition of ``Countries supporting
international terrorism.''
PART 774--[AMENDED]
0
23. The authority citation for 15 CFR part 774 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 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 7, 2014, 79 FR 46959 (August 11, 2014).
0
24. In supplement No. 1 to part 774 (The Commerce Control List), Export
Control Classification Number (ECCN) 1C350 is amended by revising
second paragraph that follows the License Requirements table to read as
follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
1C350 Chemicals that may be used as precursors for toxic chemical
agents (see List of Items Controlled).
License Requirements
* * * * *
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C350. A license is required, for AT reasons, to export
or reexport items controlled by 1C350 to a country in Country Group E:1
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR
for additional information on the AT controls that apply to Iran, North
Korea, Sudan, and Syria. See part 746 of the EAR for additional
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *
0
25. In supplement No. 1 to part 774, ECCN 1C355 is amended by revising
the second ``Control(s)'' paragraph to read as follows:
1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and
families of chemicals not controlled by ECCN 1C350 or ``subject to the
ITAR'' (see 22 CFR parts 120 through 130) (see List of Items
Controlled).
License Requirements
* * * * *
Control(s): * * *
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C350. A license is required, for AT reasons, to export
or reexport items controlled by 1C350 to a country in Country Group E:1
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR
for additional information on the AT controls that apply to Iran, North
Korea, Sudan, and Syria. See part 746 of the EAR for additional
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *
0
26. In supplement No. 1 to part 774, ECCN 1C395 is amended by revising
the third ``Control(s)'' paragraph to read as follows:
1C395 Mixtures and Medical, Analytical, Diagnostic, and Food Testing
Kits Not Controlled by ECCN 1C350, as follows (See List of Items
Controlled).
License Requirements
* * * * *
Control(s): * * *
AT applies to entire entry. The Commerce Country Chart is not
designed to determine licensing requirements for items controlled for
AT reasons in 1C395. A license is required, for AT reasons, to export
or reexport items controlled by 1C395 to a country in Country Group E:1
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR
for additional information on the AT controls that apply to Iran, North
Korea, Sudan, and Syria. See part 746 of the EAR for additional
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *
0
27. In supplement No. 1 to part 774, ECCN 2A994 is amended by revising
the ``Control(s)'' paragraph to read as follows:
2A994 Portable electric generators and ``specially designed'' ``parts''
and ``components.''
* * * * *
Control(s): AT applies to entire entry. A license is required for items
controlled by this entry to Iran and North Korea. The Commerce Country
Chart is not designed to determine licensing requirements for this
entry. See part 746 of the EAR for additional information on Iran. See
Sec. 742.19 of the EAR for additional information on North Korea.
* * * * *
0
28. In supplement No. 1 to part 774, ECCN 2D994 is amended by revising
the ``Control(s)'' paragraph to read as follows:
2D994 ``Software'' ``specially designed'' for the ``development'' or
``production'' of portable electric generators controlled by 2A994.
License Requirements
* * * * *
Control(s): AT applies to entire entry. A license is required for items
controlled by this entry to Iran and North Korea for anti-terrorism
reasons. The Commerce Country Chart is not designed to determine
licensing requirements for this entry. See part 746 of the EAR for
additional information on Iran. See Sec. 742.19 of the EAR for
additional information on North Korea.
* * * * *
[[Page 43320]]
0
29. In supplement No. 1 to part 774, ECCN 2E994 is amended by revising
the ``Control(s)'' paragraph to read as follows:
2E994 ``Technology'' for the ``use'' of portable electric generators
controlled by 2A994.
License Requirements
* * * * *
Control(s): AT applies to entire entry. A license is required for items
controlled by this entry to Iran and North Korea for anti-terrorism
reasons. The Commerce Country Chart is not designed to determine
licensing requirements for this entry. See part 746 of the EAR for
additional information on Iran. See Sec. 742.19 of the EAR for
additional information on North Korea.
* * * * *
ECCN 4A001--[Amended]
0
30. In supplement No. 1 to part 774, ECCN 4A003 is amended by adding
the phrase ``or E:2'' immediately following the phrase ``Country Group
E:1'' in the note that immediately follows the License Requirements
table.
Dated: July 17, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-17981 Filed 7-21-15; 8:45 am]
BILLING CODE 3510-33-P
