Temporary Exports to Mexico Under License Exception TMP, 57505-57506 [2016-19670]
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Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules
NBA for which the Director has
extended the review period.
§ 1272.6
Examinations.
Nothing in this part shall limit in any
manner the right of FHFA to conduct
any examination of any Bank relating to
its implementation of an NBA,
including pre- or post-implementation
safety and soundness examinations, or
review of contracts or other agreements
between the Bank and any other party.
§ 1272.7
Approval of notices.
The Deputy Director for Federal Home
Loan Bank Regulation may approve
requests from a Bank seeking approval
of any NBA notice submitted in
accordance with this part. The Director
reserves the right to modify, rescind, or
supersede any such approval granted by
the Deputy Director, with such action
being effective only on a prospective
basis.
Dated: August 16, 2016.
Melvin L. Watt,
Director, Federal Housing Finance Agency.
[FR Doc. 2016–19858 Filed 8–22–16; 8:45 am]
BILLING CODE 8070–01–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 740
[160519443–6443–01]
RIN 0694–AG97
Temporary Exports to Mexico Under
License Exception TMP
Bureau of Industry and
Security, Commerce.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
align the time limit of License Exception
Temporary Imports, Exports, Reexports,
and Transfers (in-country) (TMP), which
authorizes, among other things, certain
temporary exports to Mexico, with the
time limit of Mexico’s Decree for the
Promotion of Manufacturing,
Maquiladora and Export Services
(IMMEX) program. Currently, TMP
allows for the temporary export and
reexport of various items subject to the
Export Administration Regulations
(EAR), as long as the items are returned
no later than one year after export,
reexport, or transfer if not consumed or
destroyed during the period of
authorized use. Other than a four-year
period for certain personal protective
equipment, the one-year limit extends to
all items shipped under license
exception TMP. However, the one-year
srobinson on DSK5SPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
17:24 Aug 22, 2016
Jkt 238001
period does not align with the time
constraints of Mexico’s IMMEX
program, which allows imports of items
for manufacturing operations on a time
limit that may exceed 18 months. This
rule proposes to amend TMP to
complement the timeline of the IMMEX
program. Under this proposed
amendment, items temporarily exported
or reexported under license exception
TMP and imported under the provisions
of the IMMEX program would be
authorized to remain in Mexico for up
to four years from the date of export or
reexport.
DATES: Comments must be received by
October 24, 2016.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. The identification
number for this rulemaking is BIS–
2016–0023.
• By email directly to
publiccomments@bis.doc.gov. Include
RIN 0694–AG97 in the subject line.
• By mail or delivery to Regulatory
Policy Division, Bureau of Industry and
Security, U.S. Department of Commerce,
Room 2099B, 14th Street and
Pennsylvania Avenue NW., Washington,
DC 20230. Refer to RIN 0694–AG97.
FOR FURTHER INFORMATION CONTACT:
Regulatory Policy Division, Office of
Exporter Services, Bureau of Industry
and Security, by telephone (202) 482–
2440 or email: RPD2@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Overview
Mexico’s Decree for the Promotion of
Manufacturing, Maquiladora and Export
Services, known as IMMEX, is a
platform used by U.S. and foreign
manufacturers to lower production costs
by temporarily importing production
materials into Mexico. Created in 2006,
IMMEX is the product of the merger of
two previous Mexican economic
policies: The Maquiladora program,
which was designed to attract foreign
investment by exempting temporary
imports from taxes, and the Temporary
Import Program to Promote Exports
(PITEX), which incentivized Mexican
companies to grow and compete in
foreign markets by providing temporary
import benefits. Under IMMEX,
companies located in Mexico are not
subject to quotas and do not have to pay
taxes on items temporarily imported
and manufactured, transformed, or
repaired before reexport.
Under IMMEX, the length of time that
imports may remain in Mexico is
commodity dependent, with some items
allowed to remain in-country for 18
months or more. These time allotments
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
57505
are greater than the time limits for
License Exception Temporary Imports,
Exports, Reexports, and Transfers (incountry) (TMP) allowed under
§ 740.9(a)(14) of the EAR. With few
exceptions, items exported under TMP,
if not consumed or destroyed during the
authorized use abroad, must be returned
to the United States one year after the
date of export. The discrepancy between
the time periods of IMMEX and TMP
reduces the efficacy of both policies,
thereby hindering the shipment of items
subject to the EAR to and from Mexico.
U.S. companies that produce items
subject to the EAR and ship those items
to Mexico under IMMEX have notified
the Bureau of Industry and Security of
this discrepancy and have requested
that BIS amend the EAR to increase
compatibility with IMMEX. Considering
the strength of Mexico’s export control
regimen, as exemplified by its accession
as a member to the Wassenaar
Arrangement, the Australia Group, and
the Nuclear Suppliers Group, BIS
proposes to amend § 740.9(a) to account
for IMMEX’s time limit. For the purpose
of simplicity, BIS does not propose to
match the various time periods
instituted by IMMEX. Instead, this rule
proposes to revise § 740.9(a)(8) to allow
temporary exports and reexports to
remain in Mexico for up to four years,
which accommodates the maximum
available time that temporarily imported
items may remain in Mexico under
IMMEX and is in parallel with the
validity period of BIS’s licenses.
Additionally, this rule proposes to
revise introductory paragraph
§ 740.9(a)(14) to include a reference to
§ 740.9(a)(8) as an exception to the oneyear time limit of TMP.
Export Administration Act
Since August 21, 2001, the Export
Administration Act of 1979, as
amended, has been in lapse. However,
the President, through Executive Order
13222 of August 17, 2001, 3 CFR, 2001
Comp., p. 783 (2002), as amended by
Executive Order 13637 of March 8,
2013, 78 FR 16129 (March 13, 2013),
and as extended by the Notice of August
7, 2015, 80 FR 48233 (August 11, 2015)
has continued the EAR in effect under
the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.). BIS
continues to carry out the provisions of
the Export Administration Act, as
appropriate and to the extent permitted
by law, pursuant to Executive Order
13222 as amended by Executive Order
13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
E:\FR\FM\23AUP1.SGM
23AUP1
57506
Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules
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 determined to be not
significant for the purposes of Executive
Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is subject to a penalty
for failure to comply with, a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This rule does
not contain any collections of
information.
3. This rule does not contain policies
with Federalism implications as that
term is defined in Executive Order
13132.
4. The Regulatory Flexibility Act
(RFA), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency
to prepare a regulatory flexibility
analysis of any rule subject to the notice
and comment rulemaking requirements
under the Administrative Procedure Act
(5 U.S.C. 553) or any other statute.
Under section 605(b) of the RFA,
however, if the head of an agency
certifies that a rule will not have a
significant economic impact on a
substantial number of small entities, the
statute does not require the agency to
prepare a regulatory flexibility analysis.
Pursuant to section 605(b), the Chief
Counsel for Regulation, Department of
Commerce, certified to the Chief
Counsel for Advocacy, Small Business
Administration that this proposed rule,
if promulgated, will not have a
significant economic impact on a
substantial number of small entities.
srobinson on DSK5SPTVN1PROD with PROPOSALS
Number of Small Entities
The Bureau of Industry and Security
(BIS) does not collect data on the size
of entities that apply for and are issued
export licenses. Although BIS is unable
to estimate the exact number of small
entities that would be affected by this
rule, it acknowledges that this rule
would affect some unknown number.
VerDate Sep<11>2014
17:24 Aug 22, 2016
Jkt 238001
Economic Impact
BIS believes that this proposed rule
will not have a significant economic
impact because exporters are already
using other provisions of the EAR to
participate in IMMEX. Currently,
exporters participating in IMMEX are
using TMP for exports of a one-year
duration. If the item is to remain in
Mexico longer than one year, exporters
are required to either use another
license exception or apply for a license
that will address a specific time limit.
This proposed rule merely extends the
eligibility period for TMP to four years
to complement the lengthy IMMEX time
limit which could be 18 months or
more, depending on circumstances.
Extending the time limit of TMP to four
years provides exporters flexibility in
complying with the EAR and allows
them to take fuller advantage of the
privileges granted by IMMEX. While
such a provision should reduce the
paperwork burden to exporters, BIS
does not believe increasing the time
limit will lead to a significant increase
in exports to Mexico. Rather, this
proposed rule is consistent with the
principle of the EAR in easing the
unnecessary regulatory burden to
exporters.
List of Subjects in 15 CFR Parts 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, 15 CFR part 740 of the
EAR (15 CFR parts 730–774) is proposed
to be amended as follows:
PART 740—[AMENDED]
1. The authority citation for part 740
continues to read as follows:
■
Authority: Authority: 50 U.S.C. 4601 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, 2015, 80 FR 48233 (August 11, 2015).
2. Section 740.9 is amended by
revising paragraphs (a)(8) and
introductory paragraph (a)(14) to read as
follows:
■
§ 740.9 Temporary imports, exports,
reexports, and transfers (in-country) (TMP).
(a) * * *
(8) Assembly in Mexico. Commodities
may be exported to Mexico under
Customs entries that require return to
the United States after processing,
assembly, or incorporation into end
products by companies, factories, or
facilities participating in Mexico’s inbond industrialization program
(IMMEX) under this paragraph (a)(8),
provided that all resulting end-products
PO 00000
Frm 00014
Fmt 4702
Sfmt 4702
(or the commodities themselves) are
returned to the United States as soon as
practicable but no later than four years
after the date of export or reexport.
*
*
*
*
*
(14) Return or disposal of items. With
the exception of items described in
paragraphs (a)(8) and (11) of this
section, all items exported, reexported,
or transferred (in-country) under this
section must, if not consumed or
destroyed in the normal course of
authorized temporary use abroad, be
returned to the United States or other
country from which the items were so
transferred as soon as practicable but no
later than one year after the date of
export, reexport, or transfer (in-country).
Items not returned shall be disposed of
or retained in one of the following ways:
*
*
*
*
*
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2016–19670 Filed 8–22–16; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Chapter IX
[Docket No. FR–5650–N–13]
Native American Housing Assistance
and Self-Determination Act of 1996:
Negotiated Rulemaking Committee
Ninth Meeting
Office of Assistant Secretary for
Public and Indian Housing, HUD.
ACTION: Notice of meeting of negotiated
rulemaking committee.
AGENCY:
This notice announces the
ninth meeting of the Indian Housing
Block Grant (IHBG) negotiated
rulemaking committee.
DATES: The ninth meeting is scheduled
for Tuesday, September 20, 2016, and
Wednesday, September 21, 2016. On
each day, the session will begin at
approximately 8:30 a.m., and adjourn at
approximately 5:30 p.m.
ADDRESSES: The meeting is scheduled to
take place at the Sheraton Midwest City
Hotel at the Reed Conference Center,
5750 Will Rogers Rd, Midwest City, OK,
73110.
FOR FURTHER INFORMATION CONTACT:
Heidi Frechette, Deputy Assistant
Secretary for Native American
Programs, Office of Public and Indian
Housing, Department of Housing and
Urban Development, 451 Seventh Street
SW., Room 4126, Washington, DC
20410, telephone number 202–401–7914
SUMMARY:
E:\FR\FM\23AUP1.SGM
23AUP1
Agencies
[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)]
[Proposed Rules]
[Pages 57505-57506]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19670]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 740
[160519443-6443-01]
RIN 0694-AG97
Temporary Exports to Mexico Under License Exception TMP
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would align the time limit of License
Exception Temporary Imports, Exports, Reexports, and Transfers (in-
country) (TMP), which authorizes, among other things, certain temporary
exports to Mexico, with the time limit of Mexico's Decree for the
Promotion of Manufacturing, Maquiladora and Export Services (IMMEX)
program. Currently, TMP allows for the temporary export and reexport of
various items subject to the Export Administration Regulations (EAR),
as long as the items are returned no later than one year after export,
reexport, or transfer if not consumed or destroyed during the period of
authorized use. Other than a four-year period for certain personal
protective equipment, the one-year limit extends to all items shipped
under license exception TMP. However, the one-year period does not
align with the time constraints of Mexico's IMMEX program, which allows
imports of items for manufacturing operations on a time limit that may
exceed 18 months. This rule proposes to amend TMP to complement the
timeline of the IMMEX program. Under this proposed amendment, items
temporarily exported or reexported under license exception TMP and
imported under the provisions of the IMMEX program would be authorized
to remain in Mexico for up to four years from the date of export or
reexport.
DATES: Comments must be received by October 24, 2016.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
The identification number for this rulemaking is BIS-2016-0023.
By email directly to publiccomments@bis.doc.gov. Include
RIN 0694-AG97 in the subject line.
By mail or delivery to Regulatory Policy Division, Bureau
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN
0694-AG97.
FOR FURTHER INFORMATION CONTACT: Regulatory Policy Division, Office of
Exporter Services, Bureau of Industry and Security, by telephone (202)
482-2440 or email: RPD2@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Overview
Mexico's Decree for the Promotion of Manufacturing, Maquiladora and
Export Services, known as IMMEX, is a platform used by U.S. and foreign
manufacturers to lower production costs by temporarily importing
production materials into Mexico. Created in 2006, IMMEX is the product
of the merger of two previous Mexican economic policies: The
Maquiladora program, which was designed to attract foreign investment
by exempting temporary imports from taxes, and the Temporary Import
Program to Promote Exports (PITEX), which incentivized Mexican
companies to grow and compete in foreign markets by providing temporary
import benefits. Under IMMEX, companies located in Mexico are not
subject to quotas and do not have to pay taxes on items temporarily
imported and manufactured, transformed, or repaired before reexport.
Under IMMEX, the length of time that imports may remain in Mexico
is commodity dependent, with some items allowed to remain in-country
for 18 months or more. These time allotments are greater than the time
limits for License Exception Temporary Imports, Exports, Reexports, and
Transfers (in-country) (TMP) allowed under Sec. 740.9(a)(14) of the
EAR. With few exceptions, items exported under TMP, if not consumed or
destroyed during the authorized use abroad, must be returned to the
United States one year after the date of export. The discrepancy
between the time periods of IMMEX and TMP reduces the efficacy of both
policies, thereby hindering the shipment of items subject to the EAR to
and from Mexico.
U.S. companies that produce items subject to the EAR and ship those
items to Mexico under IMMEX have notified the Bureau of Industry and
Security of this discrepancy and have requested that BIS amend the EAR
to increase compatibility with IMMEX. Considering the strength of
Mexico's export control regimen, as exemplified by its accession as a
member to the Wassenaar Arrangement, the Australia Group, and the
Nuclear Suppliers Group, BIS proposes to amend Sec. 740.9(a) to
account for IMMEX's time limit. For the purpose of simplicity, BIS does
not propose to match the various time periods instituted by IMMEX.
Instead, this rule proposes to revise Sec. 740.9(a)(8) to allow
temporary exports and reexports to remain in Mexico for up to four
years, which accommodates the maximum available time that temporarily
imported items may remain in Mexico under IMMEX and is in parallel with
the validity period of BIS's licenses. Additionally, this rule proposes
to revise introductory paragraph Sec. 740.9(a)(14) to include a
reference to Sec. 740.9(a)(8) as an exception to the one-year time
limit of TMP.
Export Administration Act
Since August 21, 2001, the Export Administration Act of 1979, as
amended, has been in lapse. However, the President, through Executive
Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March
13, 2013), and as extended by the Notice of August 7, 2015, 80 FR 48233
(August 11, 2015) has continued the EAR in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
BIS continues to carry out the provisions of the Export Administration
Act, as appropriate and to the extent permitted by law, pursuant to
Executive Order 13222 as amended by Executive Order 13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and
[[Page 57506]]
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 determined to be not significant for the purposes of
Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor is subject to a penalty for failure to
comply with, a collection of information, subject to the requirements
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This rule does not
contain any collections of information.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to the notice and comment
rulemaking requirements under the Administrative Procedure Act (5
U.S.C. 553) or any other statute. Under section 605(b) of the RFA,
however, if the head of an agency certifies that a rule will not have a
significant economic impact on a substantial number of small entities,
the statute does not require the agency to prepare a regulatory
flexibility analysis. Pursuant to section 605(b), the Chief Counsel for
Regulation, Department of Commerce, certified to the Chief Counsel for
Advocacy, Small Business Administration that this proposed rule, if
promulgated, will not have a significant economic impact on a
substantial number of small entities.
Number of Small Entities
The Bureau of Industry and Security (BIS) does not collect data on
the size of entities that apply for and are issued export licenses.
Although BIS is unable to estimate the exact number of small entities
that would be affected by this rule, it acknowledges that this rule
would affect some unknown number.
Economic Impact
BIS believes that this proposed rule will not have a significant
economic impact because exporters are already using other provisions of
the EAR to participate in IMMEX. Currently, exporters participating in
IMMEX are using TMP for exports of a one-year duration. If the item is
to remain in Mexico longer than one year, exporters are required to
either use another license exception or apply for a license that will
address a specific time limit. This proposed rule merely extends the
eligibility period for TMP to four years to complement the lengthy
IMMEX time limit which could be 18 months or more, depending on
circumstances. Extending the time limit of TMP to four years provides
exporters flexibility in complying with the EAR and allows them to take
fuller advantage of the privileges granted by IMMEX. While such a
provision should reduce the paperwork burden to exporters, BIS does not
believe increasing the time limit will lead to a significant increase
in exports to Mexico. Rather, this proposed rule is consistent with the
principle of the EAR in easing the unnecessary regulatory burden to
exporters.
List of Subjects in 15 CFR Parts 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, 15 CFR part 740 of the EAR (15 CFR parts 730-774) is
proposed to be amended as follows:
PART 740--[AMENDED]
0
1. The authority citation for part 740 continues to read as follows:
Authority: Authority: 50 U.S.C. 4601 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, 2015, 80 FR 48233 (August 11, 2015).
0
2. Section 740.9 is amended by revising paragraphs (a)(8) and
introductory paragraph (a)(14) to read as follows:
Sec. 740.9 Temporary imports, exports, reexports, and transfers (in-
country) (TMP).
(a) * * *
(8) Assembly in Mexico. Commodities may be exported to Mexico under
Customs entries that require return to the United States after
processing, assembly, or incorporation into end products by companies,
factories, or facilities participating in Mexico's in-bond
industrialization program (IMMEX) under this paragraph (a)(8), provided
that all resulting end-products (or the commodities themselves) are
returned to the United States as soon as practicable but no later than
four years after the date of export or reexport.
* * * * *
(14) Return or disposal of items. With the exception of items
described in paragraphs (a)(8) and (11) of this section, all items
exported, reexported, or transferred (in-country) under this section
must, if not consumed or destroyed in the normal course of authorized
temporary use abroad, be returned to the United States or other country
from which the items were so transferred as soon as practicable but no
later than one year after the date of export, reexport, or transfer
(in-country). Items not returned shall be disposed of or retained in
one of the following ways:
* * * * *
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-19670 Filed 8-22-16; 8:45 am]
BILLING CODE 3510-33-P