Revision to an Entry on the Entity List, 18217-18220 [2017-07833]
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appears to have firmed somewhat. Inflation
has increased in recent quarters, moving
close to the Committee’s 2 percent longer-run
objective; excluding energy and food prices,
inflation was little changed and continued to
run somewhat below 2 percent. Market-based
measures of inflation compensation remain
low; survey-based measures of longer-term
inflation expectations are little changed, on
balance.
Consistent with its statutory mandate, the
Committee seeks to foster maximum
employment and price stability. The
Committee expects that, with gradual
adjustments in the stance of monetary policy,
economic activity will expand at a moderate
pace, labor market conditions will strengthen
somewhat further, and inflation will stabilize
around 2 percent over the medium term.
Near-term risks to the economic outlook
appear roughly balanced. The Committee
continues to closely monitor inflation
indicators and global economic and financial
developments.
In view of realized and expected labor
market conditions and inflation, the
Committee decided to raise the target range
for the federal funds rate to 3⁄4 to 1 percent.
The stance of monetary policy remains
accommodative, thereby supporting some
further strengthening in labor market
conditions and a sustained return to 2
percent inflation.
A Federal Reserve Implementation note
released simultaneously with the
announcement stated that:
The Board of Governors of the Federal
Reserve System voted unanimously to raise
the interest rate paid on required and excess
reserve balances to 1.00 percent, effective
March 16, 2017.
As a result, the Board is amending
§ 204.10(b)(5) of Regulation D to change
IORR to 1.00 percent and IOER to 1.00
percent.
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III. Administrative Procedure Act
In general, the Administrative
Procedure Act (12 U.S.C. 551 et seq.)
(‘‘APA’’) imposes three principal
requirements when an agency
promulgates legislative rules (rules
made pursuant to congressionally
delegated authority): (1) Publication
with adequate notice of a proposed rule;
(2) followed by a meaningful
opportunity for the public to comment
on the rule’s content; and (3)
publication of the final rule not less
than 30 days before its effective date.
The APA provides that notice and
comment procedures do not apply if the
agency for good cause finds them to be
‘‘unnecessary, impracticable, or contrary
to the public interest.’’ 12 U.S.C.
553(b)(3)(A). Section 553(d) of the APA
also provides that publication not less
than 30 days prior to a rule’s effective
date is not required for (1) a substantive
rule which grants or recognizes an
exemption or relieves a restriction; (2)
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interpretive rules and statements of
policy; or (3) an agency finding good
cause for shortened notice and
publishing its reasoning with the rule.
12 U.S.C. 553(d).
The Board has determined that good
cause exists for finding that the notice,
public comment, and delayed effective
date provisions of the APA are
unnecessary, impracticable, or contrary
to the public interest with respect to the
final amendments to Regulation D. The
rate increases for IORR and IOER that
are reflected in the final amendments to
Regulation D were made with a view
towards accommodating commerce and
business and with regard to their
bearing upon the general credit situation
of the country. Notice and public
comment would prevent the Board’s
action from being effective as promptly
as necessary in the public interest, and
would not otherwise serve any useful
purpose. Notice, public comment, and a
delayed effective date would create
uncertainty about the finality and
effectiveness of the Board’s action and
undermine the effectiveness of that
action. Accordingly, the Board has
determined that good cause exists to
dispense with the notice, public
comment, and delayed effective date
procedures of the APA with respect to
the final amendments to Regulation D.
PART 204—RESERVE
REQUIREMENTS OF DEPOSITORY
INSTITUTIONS (REGULATION D)
1. The authority citation for part 204
continues to read as follows:
■
Authority: 12 U.S.C. 248(a), 248(c), 461,
601, 611, and 3105.
2. Section 204.10 is amended by
revising paragraph (b)(5) to read as
follows:
■
§ 204.10
*
Payment of interest on balances.
*
*
*
*
(b) * * *
(5) The rates for IORR and IOER are:
Rate
(percent)
IORR .............................................
IOER .............................................
*
*
*
*
1.00
1.00
*
By order of the Board of Governors of the
Federal Reserve System, April 12, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017–07743 Filed 4–17–17; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF COMMERCE
IV. Regulatory Flexibility Analysis
Bureau of Industry and Security
The Regulatory Flexibility Act
(‘‘RFA’’) does not apply to a rulemaking
where a general notice of proposed
rulemaking is not required.5 As noted
previously, the Board has determined
that it is unnecessary and contrary to
the public interest to publish a general
notice of proposed rulemaking for this
final rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
15 CFR Part 744
V. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (‘‘PRA’’) of 1995 (44
U.S.C. 3506; 5 CFR part 1320, appendix
A.1), the Board reviewed the final rule
under the authority delegated to the
Board by the Office of Management and
Budget. The final rule contains no
requirements subject to the PRA.
List of Subjects in 12 CFR Part 204
Banks, Banking, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, the Board amends 12 CFR
part 204 as follows:
55
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RIN 0694–AH32
Revision to an Entry on the Entity List
Bureau of Industry and
Security, Commerce
ACTION: Final rule.
AGENCY:
This rule amends the Export
Administration Regulations (EAR) by
revising one existing entry in the Entity
List, under the destination of Russia.
The license requirement for the entry is
being revised to conform with a general
license issued by the Department of the
Treasury’s Office of Foreign Assets
Control on February 2, 2017.
DATES: This rule is effective April 18,
2017.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Chair, End-User Review Committee,
Office of the Assistant Secretary, Export
Administration, Bureau of Industry and
Security, Department of Commerce,
Phone: (202) 482–5991, Email: ERC@
bis.doc.gov.
SUPPLEMENTARY INFORMATION:
U.S.C. 603 and 604.
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Background
The Entity List (Supplement No. 4 to
Part 744) identifies entities and other
persons reasonably believed to be
involved, or to pose a significant risk of
being or becoming involved, in
activities contrary to the national
security or foreign policy interests of the
United States. The EAR imposes
additional license requirements on, and
limits the availability of most license
exceptions for, exports, reexports, and
transfers (in-country) to those listed.
The ‘‘license review policy’’ for each
listed entity or other person is identified
in the License Review Policy column on
the Entity List and the impact on the
availability of license exceptions is
described in the Federal Register notice
adding entities or other persons to the
Entity List. BIS places entities and other
persons on the Entity List pursuant to
sections of part 744 (Control Policy:
End-User and End-Use Based) and part
746 (Embargoes and Other Special
Controls) of the EAR.
The ERC, composed of representatives
of the Departments of Commerce
(Chair), State, Defense, Energy and,
where appropriate, the Treasury, makes
all decisions regarding additions to,
removals from, or other modifications to
the Entity List. The ERC makes all
decisions to add an entry to the Entity
List by majority vote and all decisions
to remove or modify an entry by
unanimous vote.
Entity List Revision
This rule implements the decision of
the ERC to revise one existing entry in
the Entity List, under the destination of
Russia as described below.
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Modification to License Requirements
for an Entry on the Entity List
On February 2, 2017, the Department
of the Treasury’s Office of Foreign
Assets Control (OFAC) issued General
License No. 1, Authorizing Certain
Transactions with the Federal Security
Service, an entity in the Russian
Federation. This general license
authorizes transactions and activities,
otherwise prohibited pursuant to
Executive Order 13694 (E.O.) of April 1,
2015, as amended by E.O. 13757 of
December 28, 2016, that are necessary
and ordinarily incident to: Requesting,
receiving, utilizing, paying for, or
dealing in licenses, permits,
certifications, or notifications issued or
registered by the Federal Security
Service (a.k.a. Federalnaya Sluzhba
Bezopasnosti) (a.k.a. FSB) for the
importation, distribution or use of
information technology products in the
Russian Federation, provided that (i) the
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exportation, reexportation, or provision
of any goods or technology that are
subject to the EAR, 15 CFR parts 730
through 774, are licensed or otherwise
authorized by the Department of
Commerce and (ii) the payment of any
fees to the Federal Security Service for
such licenses, permits, certifications, or
notifications does not exceed $5,000 in
any calendar year. The OFAC general
license also authorizes transactions and
activities ordinary and necessarily
incident to complying with law
enforcement or administrative actions or
investigations involving the Federal
Security Service and transactions and
activities ordinary and necessarily
incident to complying with rules and
regulations administrated by the Federal
Security Service. The general license
does not authorize exportation,
reexportation, or provision of any goods,
technology, or services to the Crimea
region of Ukraine or any transactions
that otherwise violate E.O. 13757 of
April 1, 2015. Any questions regarding
to the scope of this general license
should be directed to OFAC.
In light of OFAC’s General License
No. 1, BIS makes a conforming change
by modifying the listing for the Federal
Security Service on the Entity List
under the destination of Russia (the
term used in the EAR for the Russian
Federation). This final rule modifies the
license requirement column for this
entity to specify that the Entity List’s
license requirements do not apply to
items subject to the EAR that are related
to transactions authorized by OFAC
pursuant to new General License No. 1
(i.e., transactions that are necessary and
ordinarily incident to requesting,
receiving, utilizing, paying for, or
dealing in licenses, permits,
certifications, or notifications issued or
registered by the Federal Security
Service (a.k.a. Federalnaya Sluzhba
Bezopasnosti) (a.k.a. FSB) for the
importation, distribution, or use of
information technology products in the
Russian Federation, so long as the
transactions do not involve exportation,
reexportation, or provision of any goods,
technology, or services to the Crimea
region of Ukraine and do not otherwise
violate E.O. 13757). Except for the
limited purposes described above, this
conforming change does not authorize
the exportation, reexportation, or
provision of goods or technology to or
on behalf of the Federal Security
Service.
This final rule makes the following
revision to one entry on the Entity List:
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Russia
(1) Federal Security Service (FSB),
a.k.a., the following one alias:
—Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22,
Moscow 107031, Russia; and
Lubyanskaya Ploschad, Dom 2,
Moscow 107031, Russia.
Note: As described above, the changes this
final rule makes to this Russian entity are
limited to the License requirement column
for this entry.
Export Administration Act of 1979
Although the Export Administration
Act of 1979 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 4,
2016, 81 FR 52587 (August 8, 2016), 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 of 1979, 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 determined to be not
significant for purposes of Executive
Order 12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to nor be subject to a penalty
for failure to comply with a collection
of information, subject to the
requirements of the 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 regulation
involves collections previously
approved by OMB under control
number 0694–0088, Simplified Network
Application Processing System, which
includes, among other things, license
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applications and carries a burden
estimate of 43.8 minutes for a manual or
electronic submission. Total burden
hours associated with the PRA and
OMB control number 0694–0088 are not
expected to increase as a result of this
rule. You may send comments regarding
the collection of information associated
with this rule, including suggestions for
reducing the burden, to Jasmeet K.
Seehra, Office of Management and
Budget (OMB), by email to Jasmeet_K._
Seehra@omb.eop.gov, or by fax to (202)
395–7285.
3. This rule does not contain policies
with Federalism implications as that
term is defined in Executive Order
13132.
4. Section 553(d) of the
Administrative Procedure Act (APA)
generally provides that rules may not
take effect earlier than thirty (30) days
after they are published in the Federal
Register. BIS finds good cause to waive
the 30-day delay in effectiveness under
5 U.S.C. 553(d)(1) because this rule is a
substantive rule which relieves a
restriction. This rule’s revision of the
license requirement for the Federal
Security Service (FSB) reduces the
compliance burden that may be
imposed on exporters due to the
inconsistent sanctions. The revision also
reduces the parties that are affected by
the license requirements, addressing an
unintended consequence of listing this
entity on the Entity List.
In addition, the Department finds that
there is good cause under 5 U.S.C.
553(b)(3)(B) to waive the provisions of
the Administrative Procedure Act (APA)
requiring prior notice and the
opportunity for public comment for the
revision included in this rule because
they are either unnecessary or contrary
Country
Entity
*
*
RUSSIA ............
nlaroche on DSK30NT082PROD with RULES
to the public interest. The revision is
limited to ensure consistency with
OFAC’s General License No. 1, and thus
prior notice and the opportunity for
public comment are unnecessary. The
conforming change to the listing for
Federal Security Service (FSB) is
intended to ensure consistent treatment
of this entity under both the EAR and
OFAC’s sanctions regime. Narrowing
the scope of the license requirements
addresses unintended consequences and
unnecessary economic losses that U.S.
exporters may face as they turn away
potential sales due to this entity being
listed on the Entity List. By publishing
without prior notice and comment, U.S.
exporters will be able to submit
licenses, permits, certifications and
notifications that are required under
Russian law for information technology
products imported into, distributed or
used in Russia immediately, an action
which was approved under OFAC’s
General License No. 1 since February 2,
2017. A prolonging of the inconsistent
treatment for the sanctioned entity
would create unnecessary compliance
burden on exporters who are complying
with OFAC and BIS regulations as well
as additional delay and loss of potential
sales for U.S. exporters.
No other law requires that a notice of
proposed rulemaking and an
opportunity for public comment be
given for this final rule. Because a
notice of proposed rulemaking and an
opportunity for public comment are not
required under the APA or by any other
law, the analytical requirements of the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.) are not applicable. As a result,
no final regulatory flexibility analysis is
required and none has been prepared.
License requirement
*
*
*
Federal Security Service (FSB), a.k.a.,
the following one alias:
—Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; and
Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia.
*
*
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*
*
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Accordingly, part 744 of the Export
Administration Regulations (15 CFR
parts 730–774) is amended as follows:
PART 744—[AMENDED]
1. The authority citation for 15 CFR
part 744 continues to read as follows:
■
Authority: 50 U.S.C. 4601 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;
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. 12947, 60 FR
5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August
4, 2016, 81 FR 52587 (August 8, 2016); Notice
of September 15, 2016, 81 FR 64343
(September 19, 2016); Notice of November 8,
2016, 81 FR 79379 (November 10, 2016);
Notice of January 13, 2017, 82 FR 6165
(January 18, 2017).
2. Supplement No. 4 to part 744 is
amended by revising, under Russia, one
Russian entity ‘‘Federal Security Service
(FSB), a.k.a., the following one alias:
■
Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22,
Moscow 107031, Russia; and
Lubyanskaya Ploschad, Dom 2, Moscow
107031, Russia’’ to read as follows:
Supplement No. 4 to Part 744—Entity
List
*
*
*
*
License review policy
*
Federal Register citation
*
*
*
Presumption of denial ......
*
*
82 FR 724, 1/4/17. 82 FR
[INSERT FR PAGE
NUMBER AND 4/18/
17].
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*
*
*
*
*
Frm 00005
Exports, Reporting and recordkeeping
requirements, Terrorism.
*
*
For all items subject to
the EAR (see § 744.11
of the EAR), apart from
items that are related to
transactions that are
authorized by the Department of the Treasury’s Office of Foreign
Assets Control pursuant
to General License No.
1 of February 2, 2017.
*
*
List of Subjects in 15 CFR Part 744
*
*
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Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules and Regulations
Dated: April 13, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
15 CFR Part 950
and seven World Data Centers. These
centers respond to over 2,000,000
requests for these data and products
annually from over 70 countries. This
collection of environmental data and
products is growing rapidly, both in size
and sophistication, and as a result the
associated costs have increased.
Users have the ability to access the
data offline, online and through the
NESDIS e-Commerce System (NeS)
online store. Our ability to provide data,
information, products and services
depends on user fees.
[Docket No. 161107999–6999–01]
Fee Schedule
RIN 0648–BG39
In an October 22, 2015, final rule (80
FR 63914), NESDIS established a new
schedule of fees for the sale of its data,
information, and related products and
services to users (‘‘October 2015 Fee
Schedule Rule’’). NESDIS revised the
fee schedule that had been in effect
since 2013 to ensure that the fees
accurately reflect the costs of providing
access to the environmental data,
information, and related products and
services.
NESDIS will continue to review the
user fees periodically, and will revise
such fees as necessary. Any future
changes in the user fees and their
effective date will be announced
through notice in the Federal Register.
[FR Doc. 2017–07833 Filed 4–17–17; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
Schedule of Fees for Access to NOAA
Environmental Data, Information, and
Related Products and Services
National Environmental
Satellite, Data and Information Service
(NESDIS), National Oceanic and
Atmospheric Administration (NOAA),
Department of Commerce.
ACTION: Final rule.
AGENCY:
In this final rule, NESDIS
adds a new service/product to the
NESDIS FY 2017 schedule of fees for the
sale of its data, information, and related
products and services to users. NESDIS
is authorized under the United States
Code to assess fees, up to fair market
value, for access to environmental data,
information, and products derived from,
collected, and/or archived by NOAA.
This action adds a new user fee for a
data product titled, High Definition
Geomagnetic Model—Real Time.
DATES: Effective May 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Lynn Hodges (301) 713–7064.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
NESDIS operates NOAA’s National
Center for Environmental Information
(NCEI). Through NCEI, NESDIS
provides and ensures timely access to
global environmental data from
satellites and other sources, provides
information services, and develops
science products. NESDIS maintains
some 1,300 databases containing over
2,400 environmental variables at NCEI
schedule of fees but rather the addition
of one new fee.
Classification
This rule has been determined to be
not significant for purposes of E.O.
12866. The provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking and the opportunity for
public comment are inapplicable
because this rule falls within the public
property exception of subparagraph
(a)(2) of section 553, as it relates only to
the assessment of fees, as authorized by
15 U.S.C. 1534, that accurately reflect
the costs of providing access to publicly
available environmental data,
information, and related products.
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. Accordingly, no
Regulatory Flexibility Analysis is
required and none has been prepared.
List of Subjects in 15 CFR Part 950
Organization and functions
(government agencies).
Need for Addition
High Definition Geomagnetic Model—
Real Time accurately models the
magnetic fields originating in the Earth’s
magnetosphere in real-time using a
combination of solar-wind observing
satellites situated between Earth and
sun and a chain of geomagnetic
observatories on the Earth’s surface.
We are adding a new user fee for this
data product—High Definition
Geomagnetic Model—Real Time—to the
current user fee schedule. Accordingly,
Appendix A to Part 950—Schedule of
User Fees for Access to NOAA
Environmental Data includes the user
fees established in October 2015 and the
new fee established by this final rule:
High Definition Geomagnetic Model—
Real Time Fee. In addition, NESDIS has
deleted the New Fee column in
Appendix A to avoid confusion given
that this final rule is not issuing a new
Dated: April 5, 2017.
Cherish Johnson,
Chief Financial Officer/Chief Administrative
Officer.
For the reasons set forth above, 15
CFR part 950 is amended as follows:
PART 950—ENVIRONMENTAL DATA
AND INFORMATION
1. The authority citation for part 950
continues to read as follows:
■
Authority: (5 U.S.C. 552, 553).
Reorganization Plan No. 4 of 1970.
2. Appendix A to part 950 is revised
to read as follows:
■
Appendix A to Part 950—Schedule of
User Fees for Access to NOAA
Environmental Data
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Name of product/data/publication/information/service
Current fee
NOAA National Center for Environmental Information:
Department of Commerce Certification ........................................................................................................................................
General Certification .....................................................................................................................................................................
Paper Copy ...................................................................................................................................................................................
Data Poster ...................................................................................................................................................................................
Shipping Service ...........................................................................................................................................................................
Rush Order Fee ............................................................................................................................................................................
Super Rush Order Fee .................................................................................................................................................................
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92.00
3.00
18.00
8.00
60.00
100.00
]]>Agencies
[Federal Register Volume 82, Number 73 (Tuesday, April 18, 2017)]
[Rules and Regulations]
[Pages 18217-18220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07833]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 170207154-7253-01]
RIN 0694-AH32
Revision to an Entry on the Entity List
AGENCY: Bureau of Industry and Security, Commerce
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends the Export Administration Regulations (EAR)
by revising one existing entry in the Entity List, under the
destination of Russia. The license requirement for the entry is being
revised to conform with a general license issued by the Department of
the Treasury's Office of Foreign Assets Control on February 2, 2017.
DATES: This rule is effective April 18, 2017.
FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee,
Office of the Assistant Secretary, Export Administration, Bureau of
Industry and Security, Department of Commerce, Phone: (202) 482-5991,
Email: ERC@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
[[Page 18218]]
Background
The Entity List (Supplement No. 4 to Part 744) identifies entities
and other persons reasonably believed to be involved, or to pose a
significant risk of being or becoming involved, in activities contrary
to the national security or foreign policy interests of the United
States. The EAR imposes additional license requirements on, and limits
the availability of most license exceptions for, exports, reexports,
and transfers (in-country) to those listed. The ``license review
policy'' for each listed entity or other person is identified in the
License Review Policy column on the Entity List and the impact on the
availability of license exceptions is described in the Federal Register
notice adding entities or other persons to the Entity List. BIS places
entities and other persons on the Entity List pursuant to sections of
part 744 (Control Policy: End-User and End-Use Based) and part 746
(Embargoes and Other Special Controls) of the EAR.
The ERC, composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy and, where appropriate, the Treasury,
makes all decisions regarding additions to, removals from, or other
modifications to the Entity List. The ERC makes all decisions to add an
entry to the Entity List by majority vote and all decisions to remove
or modify an entry by unanimous vote.
Entity List Revision
This rule implements the decision of the ERC to revise one existing
entry in the Entity List, under the destination of Russia as described
below.
Modification to License Requirements for an Entry on the Entity List
On February 2, 2017, the Department of the Treasury's Office of
Foreign Assets Control (OFAC) issued General License No. 1, Authorizing
Certain Transactions with the Federal Security Service, an entity in
the Russian Federation. This general license authorizes transactions
and activities, otherwise prohibited pursuant to Executive Order 13694
(E.O.) of April 1, 2015, as amended by E.O. 13757 of December 28, 2016,
that are necessary and ordinarily incident to: Requesting, receiving,
utilizing, paying for, or dealing in licenses, permits, certifications,
or notifications issued or registered by the Federal Security Service
(a.k.a. Federalnaya Sluzhba Bezopasnosti) (a.k.a. FSB) for the
importation, distribution or use of information technology products in
the Russian Federation, provided that (i) the exportation,
reexportation, or provision of any goods or technology that are subject
to the EAR, 15 CFR parts 730 through 774, are licensed or otherwise
authorized by the Department of Commerce and (ii) the payment of any
fees to the Federal Security Service for such licenses, permits,
certifications, or notifications does not exceed $5,000 in any calendar
year. The OFAC general license also authorizes transactions and
activities ordinary and necessarily incident to complying with law
enforcement or administrative actions or investigations involving the
Federal Security Service and transactions and activities ordinary and
necessarily incident to complying with rules and regulations
administrated by the Federal Security Service. The general license does
not authorize exportation, reexportation, or provision of any goods,
technology, or services to the Crimea region of Ukraine or any
transactions that otherwise violate E.O. 13757 of April 1, 2015. Any
questions regarding to the scope of this general license should be
directed to OFAC.
In light of OFAC's General License No. 1, BIS makes a conforming
change by modifying the listing for the Federal Security Service on the
Entity List under the destination of Russia (the term used in the EAR
for the Russian Federation). This final rule modifies the license
requirement column for this entity to specify that the Entity List's
license requirements do not apply to items subject to the EAR that are
related to transactions authorized by OFAC pursuant to new General
License No. 1 (i.e., transactions that are necessary and ordinarily
incident to requesting, receiving, utilizing, paying for, or dealing in
licenses, permits, certifications, or notifications issued or
registered by the Federal Security Service (a.k.a. Federalnaya Sluzhba
Bezopasnosti) (a.k.a. FSB) for the importation, distribution, or use of
information technology products in the Russian Federation, so long as
the transactions do not involve exportation, reexportation, or
provision of any goods, technology, or services to the Crimea region of
Ukraine and do not otherwise violate E.O. 13757). Except for the
limited purposes described above, this conforming change does not
authorize the exportation, reexportation, or provision of goods or
technology to or on behalf of the Federal Security Service.
This final rule makes the following revision to one entry on the
Entity List:
Russia
(1) Federal Security Service (FSB), a.k.a., the following one
alias:
--Federalnaya Sluzhba Bezopasnosti.
Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; and
Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia.
Note: As described above, the changes this final rule makes to
this Russian entity are limited to the License requirement column
for this entry.
Export Administration Act of 1979
Although the Export Administration Act of 1979 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 4, 2016, 81 FR 52587 (August 8, 2016), 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 of 1979, 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 determined to be not significant for
purposes of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to nor be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the 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 regulation involves
collections previously approved by OMB under control number 0694-0088,
Simplified Network Application Processing System, which includes, among
other things, license
[[Page 18219]]
applications and carries a burden estimate of 43.8 minutes for a manual
or electronic submission. Total burden hours associated with the PRA
and OMB control number 0694-0088 are not expected to increase as a
result of this rule. You may send comments regarding the collection of
information associated with this rule, including suggestions for
reducing the burden, to Jasmeet K. Seehra, Office of Management and
Budget (OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or by fax to
(202) 395-7285.
3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
4. Section 553(d) of the Administrative Procedure Act (APA)
generally provides that rules may not take effect earlier than thirty
(30) days after they are published in the Federal Register. BIS finds
good cause to waive the 30-day delay in effectiveness under 5 U.S.C.
553(d)(1) because this rule is a substantive rule which relieves a
restriction. This rule's revision of the license requirement for the
Federal Security Service (FSB) reduces the compliance burden that may
be imposed on exporters due to the inconsistent sanctions. The revision
also reduces the parties that are affected by the license requirements,
addressing an unintended consequence of listing this entity on the
Entity List.
In addition, the Department finds that there is good cause under 5
U.S.C. 553(b)(3)(B) to waive the provisions of the Administrative
Procedure Act (APA) requiring prior notice and the opportunity for
public comment for the revision included in this rule because they are
either unnecessary or contrary to the public interest. The revision is
limited to ensure consistency with OFAC's General License No. 1, and
thus prior notice and the opportunity for public comment are
unnecessary. The conforming change to the listing for Federal Security
Service (FSB) is intended to ensure consistent treatment of this entity
under both the EAR and OFAC's sanctions regime. Narrowing the scope of
the license requirements addresses unintended consequences and
unnecessary economic losses that U.S. exporters may face as they turn
away potential sales due to this entity being listed on the Entity
List. By publishing without prior notice and comment, U.S. exporters
will be able to submit licenses, permits, certifications and
notifications that are required under Russian law for information
technology products imported into, distributed or used in Russia
immediately, an action which was approved under OFAC's General License
No. 1 since February 2, 2017. A prolonging of the inconsistent
treatment for the sanctioned entity would create unnecessary compliance
burden on exporters who are complying with OFAC and BIS regulations as
well as additional delay and loss of potential sales for U.S.
exporters.
No other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this final rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required under the APA or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. As a result, no final regulatory flexibility
analysis is required and none has been prepared.
List of Subjects in 15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. 4601 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; 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. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; Notice of August 4, 2016, 81 FR 52587
(August 8, 2016); Notice of September 15, 2016, 81 FR 64343
(September 19, 2016); Notice of November 8, 2016, 81 FR 79379
(November 10, 2016); Notice of January 13, 2017, 82 FR 6165 (January
18, 2017).
0
2. Supplement No. 4 to part 744 is amended by revising, under Russia,
one Russian entity ``Federal Security Service (FSB), a.k.a., the
following one alias:
Federalnaya Sluzhba Bezopasnosti. Ulitsa Kuznetskiy Most, Dom 22,
Moscow 107031, Russia; and Lubyanskaya Ploschad, Dom 2, Moscow 107031,
Russia'' to read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
----------------------------------------------------------------------------------------------------------------
License review Federal Register
Country Entity License requirement policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................. * * * * * *
Federal Security Service For all items Presumption of 82 FR 724, 1/4/
(FSB), a.k.a., the subject to the EAR denial. 17. 82 FR
following one alias: (see Sec. 744.11 [INSERT FR PAGE
--Federalnaya Sluzhba of the EAR), apart NUMBER AND 4/18/
Bezopasnosti. from items that 17].
Ulitsa Kuznetskiy Most, Dom are related to
22, Moscow 107031, Russia; transactions that
and Lubyanskaya Ploschad, are authorized by
Dom 2, Moscow 107031, the Department of
Russia. the Treasury's
Office of Foreign
Assets Control
pursuant to
General License
No. 1 of February
2, 2017.
* * * * * *
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* * * * * * *
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[[Page 18220]]
Dated: April 13, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-07833 Filed 4-17-17; 8:45 am]
BILLING CODE 3510-33-P
