Amendments to Country Groups for Russia and Yemen Under the Export Administration Regulations, 10274-10278 [2020-02941]
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Federal Register / Vol. 85, No. 36 / Monday, February 24, 2020 / Rules and Regulations
[FR Doc. 2020–03279 Filed 2–21–20; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 738, 740, and 742
[Docket No. 200204–0044]
RIN 0694–AH93
Amendments to Country Groups for
Russia and Yemen Under the Export
Administration Regulations
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
In this final rule, the Bureau
of Industry and Security (BIS) amends
the Export Administration Regulations
(EAR) to revise the Country Group
designations for the Russian Federation
(Russia) and Yemen based on national
security and foreign policy concerns,
including proliferation-related concerns.
This action is intended to facilitate and
support accountability in connection
with exports and reexports of items to
these destinations under the EAR, and
is part of a larger effort to restructure
and re-align the Country Groups based
on the aforementioned interests.
DATES: This rule is effective February
24, 2020.
FOR FURTHER INFORMATION CONTACT:
Jodi.Kouts, Director, Chemical and
Biological Controls Division, at email
Jodi.Kouts@bis.doc.gov or by phone at
(202) 482–6109.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Background
The Bureau of Industry and Security
(BIS) is currently undertaking a
comprehensive review of all Country
Groups in the Export Administration
Regulations (EAR) to ensure that they
appropriately reflect current U.S.
national security and foreign policy,
including nonproliferation interests.
The foundation of this rule derives
from the structure and purposes of the
Commerce Country Chart found in
Supplement No. 1 to part 738 and the
Country Groups found in Supplement
No. 1 to part 740 of the EAR. The
Country Chart contains licensing
requirements based on the destination
to which items listed on the Commerce
Control List (CCL) (Supplement No. 1 to
part 774) will be exported or reexported
and their corresponding ‘‘Reason for
Control,’’ which is found in the CCL
entry. An ‘‘X’’ in the cell where the
‘‘reason for control’’ column intersects
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with the row of the destination indicates
a license requirement. Licenses are
required to export and reexport items
under the EAR for multilateral reasons
(i.e., chemical and biological (CB),
nuclear nonproliferation (NP), national
security (NS), and missile technology
(MT)); and for unilateral reasons (i.e.,
region stability (RS), crime control (CC)
and anti-terrorism (AT)), as well as to
implement controls for firearms
convention (FC) and United Nations
Security Council purposes. Controls for
United Nations Security Council
purposes are identified by the
abbreviation ‘‘UN’’ in the applicable
CCL entries. The ‘‘UN’’ reason for
control is described in § 746. 2(b) of the
EAR.
In combination with the CCL—the list
of items classified and set-out as Export
Control Classification Numbers (ECCNs)
and arranged by categories—the Country
Chart allows an exporter to determine
whether a license is required for the
export or reexport of an item on the CCL
to the destinations on the Chart, unless
otherwise specified in the particular
ECCN entry on the CCL. The lists of
Country Groups (A, B, D and E) set out
countries with respect to relative risk
and record of like-minded export
controls, and importantly, as a basis for
the availability of exceptions from
license requirements described in part
740 (License Exceptions) of the EAR,
provided the conditions for the use of
the License Exception are met. Country
Groups may also be used when
describing license review policy.
The two lists—the Commerce Country
Chart and Country Groups—were
developed for separate purposes and
allow for systematic licensing
determinations. Country Groups are not
reviewed unless a license is required by
the Country Chart for exports and
reexports of items listed in the CCL,
unless, as mentioned above, otherwise
indicated in the ECCN entry on the CCL.
Continuing to apply the structure and
purposes of the Country Chart and
Country Groups in furtherance of U.S.
national security and foreign policy,
including nonproliferation interests,
this rule is part of BIS’s review of
Country Groups. BIS has determined the
current Country Group designations for
Russia and Yemen should be changed to
address U.S. national security, foreign
policy, including proliferation concerns
as further described below.
Specifically, this rule removes Russia
from more favorable treatment under
Country Groups A:2 and A:4 and adds
it to Country Groups D:2 and D:4 based
on nuclear and missile technology
proliferation concerns, respectively. BIS
also amends the licensing policy for
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related items to reflect a presumption of
denial consistent with the Country
Group changes. Separately, this rule
removes Yemen from more favorable
treatment under Country Group B and
adds it to Country Group D:1 to reflect
national security concerns.
As a result of these Country Group
changes, certain license exceptions are
no longer available for Russia and
Yemen, and licenses are now required
for those destinations in connection
with exports, reexports, and transfers
(in-country) of certain controlled items.
In addition, certain transactions may be
subject to more stringent licensing
review policies or additional
prohibitions as outlined in other parts of
the EAR. With these actions, BIS seeks
to ensure accountability for exports and
reexports of items to these destinations.
This rule is the first action related to the
larger effort to re-structure and re-align
the Country Groups set forth in
Supplement No. 1 to Part 740 of the
EAR.
Specific Amendments
Russia: Country Groups A and D
In this rule, BIS removes Russia from
Country Groups A:2 (Missile
Technology Control Regime) and A:4
(Nuclear Suppliers Group) to address
U.S. concerns about diversion of U.S.origin items to or from Russia for
prohibited end uses and end users. This
rule removes the ‘‘X’’ from Column
‘‘[A:2]’’ and the ‘‘X’’ from Column
‘‘[A:4]’’ in Supplement No. 1 to Part 740
for ‘‘Russia.’’ In relation to the changes
to Country Groups A:2 and A:4 for
Russia, this rule also adds Russia to
Country Groups of concern D:2
(Nuclear) and D:4 (Missile Technology).
This rule adds an ‘‘X’’ in Column
‘‘[D:2]’’ and an ‘‘X’’ in Column ‘‘[D:4]’’
in Supplement No. 1 to Part 740 for
‘‘Russia.’’ Consistent with adding
‘‘Russia’’ to Country Group ‘‘[D:2],’’ this
rule adds an ‘‘X’’ in Column ‘‘NP 1’’ for
‘‘Russia’’ in Supplement No. 1 to Part
738—Commerce Country Chart. Finally,
BIS revises the licensing policy for
items to Russia to a policy of
presumption of denial when the items
are controlled for reasons described
under § 742.2 (Proliferation of chemical
and biological weapons), § 742.3
(Nuclear nonproliferation), or § 742.5
(Missile technology) of the EAR.
However, with regard to NP and MT
controls, applications for exports and
reexports of items, which include
commodities, software and technology,
to Russia in support of U.S.-Russia civil
space cooperation activities or
commercial space launches will be
reviewed on a case-by-case basis.
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These amendments are consistent
with the purpose of this rule to address
U.S. concerns about Russia’s lack of
cooperation and accountability for U.S.origin items and diversion to
unauthorized or prohibited proliferation
activities, end uses, and end users.
Specifically, Russia has not been
cooperative in allowing BIS to perform
pre-license checks or post-shipment
verifications related to U.S.-origin
goods. The presumption of denial under
§ 742.2 further accentuates the
seriousness with which the United
States takes Russia’s use of a
‘‘novichok’’ nerve agent in the attack
against Sergei Skripal and his daughter
Yulia Skripal in the United Kingdom on
March 4, 2018.
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Yemen: Country Groups B and D:1
In this rule, BIS removes Yemen from
Country Group B and places Yemen in
the country group of concern for
national security reasons, Country
Group D:1 (National Security).
Specifically, this rule removes ‘‘Yemen’’
from Country Group B in Supplement
No. 1 to part 740, and adds an ‘‘X’’ in
Column ‘‘[D:1]’’ of that Supplement for
‘‘Yemen.’’
These changes are being made to
address concerns about diversion of
U.S.-origin items in Yemen for
unauthorized purposes, including
prohibited proliferation activities, end
uses, and end users. In addition, there
are concerns about the diversion to
unauthorized and prohibited end uses
and users of U.S.-origin items controlled
for national security reasons. The
ongoing conflict in Yemen has fostered
international terrorism and instability in
the Arabian Peninsula, including the
proliferation of small arms, unmanned
aerial systems, and missiles.
Impact of Removing Russia From
Country Groups A:2 and A:4 and
Adding to Country Groups D:2 and D:4
The removal of Russia from Country
Groups A:2 and A:4 means a number of
license exceptions are no longer
available for Russia, and previously
eligible items now require a license to
Russia. Consistent with removing Russia
from Country Groups A:2 and A:4 and
adding it to Country Group D:2, a
license is required for the export or
reexport of items subject to NP 1
controls as identified in the applicable
Export Control Classification Numbers
(ECCNs) in Supplement No. 1 to part
774 (The Commerce Control List).
Denoting this license requirement, this
final rule adds an ‘‘X’’ in the NP 1
column of the nuclear nonproliferation
column in Supplement No. 1 to part 738
of the EAR for Russia. License
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applications for these items will be
reviewed with a presumption of denial.
Consistent with adding Russia to
Country Group D:2, the general
prohibition in paragraph (a)(1)(i)(A) of
§ 744.6, Restrictions on certain activities
of U.S. persons, will be applicable if the
U.S. person exports, reexports, or
transfers (in-country) with ‘‘knowledge’’
of a prohibited end use in or by Russia.
Consistent with adding Russia to
Country Group D:4, the general
prohibitions in paragraphs (a)(1) and (3)
of § 744.3, Restrictions on certain rocket
systems (including ballistic missiles,
space launch vehicles and sounding
rockets) and unmanned aerial vehicles
(including cruise missiles, target drones
and reconnaissance drones) end-uses,
will be applicable if the exporter,
reexporter, or transferor has
‘‘knowledge’’ the transaction involves
one of those prohibited end uses in or
by Russia. In addition, consistent with
adding Russia to Country Group D:4, the
general prohibitions in § 744.6 under
paragraphs (a)(1)(i)(B) and (a)(2)(i) will
be applicable if the U.S. person exports,
reexports, or transfers (in country) with
‘‘knowledge’’ of one of those prohibited
end uses in or by Russia, or engages in
one of those prohibited activities with
‘‘knowledge’’ that it will directly assist
such an end use.
Impact of Removing Yemen From
Country Group B and Adding to D:1
The removal of Yemen from County
Group B means that the following
license exceptions will no longer be
available: § 740.3, Shipments of limited
value (LVS); § 740.4, Shipments to
Country Group B countries (GBS); and
§ 740.6, Technology and software under
restriction (TSR). As a corollary,
Yemen’s addition to Country Group D:1
means that the following license
exceptions, or other portions thereof,
which include limitations related to
Country Group D, will no longer be
available: § 740.9, Temporary imports,
exports, reexports, and transfers (incountry) (TMP); § 740.10, Servicing and
replacement of parts and equipment
(RPL); § 740.12, Gift parcels and
humanitarian donations (GFT); § 740.14,
Baggage (BAG); § 740.15, Aircraft and
vessels (AVS); § 740.16, Additional
permissive reexports (APR); and
§ 740.17, Encryption, commodities,
software, and technology (ENC).
Section 742.4(b)(2) of the EAR states
the licensing policy for exports and
reexports of national-security controlled
items to destinations in Country Group
D:1. That licensing policy is to approve
applications when BIS determines, on a
case-by-case basis, that the items are for
civilian use or otherwise would not
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make a significant contribution to the
military potential of the country of
destination that would prove
detrimental to the national security of
the United States. License applications
to export or reexport national security
controlled items to Yemen will now be
subject to this licensing policy.
In addition, Yemen’s placement in
Country Group D:1 will result in the
imposition of restrictions on the export,
reexport, and transfer (in-country) of
certain microprocessors to military end
uses and end users in Yemen, pursuant
to § 744.17, Restrictions on certain
exports, reexports, and transfers (incountry) of microprocessors and
associated ‘‘software’’ and ‘‘technology’’
for ‘military end uses’ and to ‘military
end users.’ Furthermore, restrictions on
certain exports and reexports to vessels
and aircraft located in Yemeni ports or
registered in Yemen will become
effective pursuant to § 744.7,
Restrictions on certain exports to and
for the use of certain foreign vessels or
aircraft. Finally, the addition of Yemen
to Country Group D:1 will expand the
licensing requirements for reexports of
the foreign-produced direct product of
U.S.-origin technology and software to
Yemen pursuant to § 736.2(b)(3),
General Prohibition Three.
Export Control Reform Act of 2018
On August 13, 2018, the President
signed into law the John S. McCain
National Defense Authorization Act for
Fiscal Year 2019, which included the
Export Control Reform Act of 2018
(ECRA) (50 U.S.C. 4801–4852). ECRA
provides the legal basis for BIS’s
principal authorities and serves as the
authority under which BIS issues this
rule. As set forth in Section 1768 of
ECRA, all delegations, rules,
regulations, orders, determinations,
licenses, or other forms of
administrative action that were made,
issued, conducted, or allowed to
become effective under the Export
Administration Act of 1979 (50 U.S.C.
4601 et seq.) (as in effect on August 12,
2018, and as continued in effect
pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et
seq.)), or under the Export
Administration Regulations, and were
in effect as of August 13, 2018, shall
continue in effect according to their
terms until modified, superseded, set
aside, or revoked under the authority of
ECRA.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
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necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute 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 final rule has been
designated a ‘‘significant regulatory
action,’’ although not economically
significant, under section 3(f) of
Executive Order 12866. This final rule
will support the national security and
foreign policy objectives of the United
States by broadening the U.S.
Government’s visibility into exports,
reexports, and transfers (in-country), for
a country of concern when the
transactions involve national security
controlled items and items controlled
for proliferation reasons.
2. Notwithstanding any other
provision of law, no person may be
required to respond to or 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 a collection currently approved
by OMB under control number 0694–
0088, Simplified Network Application
Processing System. This collection
includes, among other things, license
applications, and carries a burden
estimate of 42.5 minutes for a manual or
electronic submission for a total burden
estimate of 31,878 hours. BIS expects
the burden hours associated with this
collection to increase slightly by 4 hours
for an estimated cost increase of $120.
This increase is not expected to exceed
the existing estimates currently
associated with OMB control number
0694–0088.
3. This rule does not contain policies
with federalism implications as that
term is defined under Executive Order
13132.
4. Pursuant to section 1762 of the
Export Control Reform Act of 2018 (50
U.S.C. 4801–4852), which was included
in the John S. McCain National Defense
Authorization Act for Fiscal Year 2019,
this action is exempt from the
Administrative Procedure Act (5 U.S.C.
553) requirements for notice of
proposed rulemaking, opportunity for
public participation, and delay in
effective date.
5. Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical
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.
6. This final rule is not subject to the
requirements of Executive Order 13771
(82 FR 9339, February 3, 2017) because
it is issued with respect to a national
security function of the United States.
The cost-benefit analysis required
pursuant to Executive Orders 12866 and
13563 indicates that this rule is
intended to improve national security as
its primary direct benefit. Specifically,
revising the status of the Country Group
designations for Russia and Yemen in
this rule protects the United States and
allies by serving the priorities of
reducing the risk that exports, reexports,
and transfers (in-country) of items
subject to the EAR could be diverted
and contribute to weapons of mass
destruction proliferation and the
military capability of countries of
concern, contrary to U.S. national
security interests. Accordingly, this rule
meets the requirements set forth in the
April 5, 2017 OMB guidance
implementing Executive Order 13771
(82 FR 9339, February 3, 2017),
regarding what constitutes a regulation
issued ‘‘with respect to a national
security function of the United States,’’
and is, therefore, exempt from the
requirements of Executive Order 13771.
Savings Clause
Shipments of items removed from
license exception eligibility or eligibility
for export, reexport or transfer (in
country) without a license as a result of
this regulatory action that were on dock
for loading, on lighter, laden aboard and
exporting carrier, or en route aboard a
carrier to a port of export, on February
24, 2020, pursuant to actual orders for
exports, reexports and transfers (in
country) to a foreign destination, may
proceed to that destination under the
previous license exception eligibility or
without a license so long as they have
been exported, reexported or transferred
(in-country) before 30 days from date of
publication. Any such items not
actually exported, reexported or
transferred (in-country) before midnight
on March 25, 2020 require a license in
accordance with this final rule.
List of Subjects
15 CFR Part 738
Exports.
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
Accordingly, parts 738, 740, and 742
of the Export Administration
Regulations (15 CFR parts 730–774) are
amended as follows:
PART 738—COMMERCE CONTROL
LIST OVERVIEW AND THE COUNTRY
CHART
1. The authority citation for part 738
is revised to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 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; 42 U.S.C.
2139a; 15 U.S.C. 1824a; 50 U.S.C. 4305; 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.
2. Supplement No. 1 to part 738 is
amended by revising the entry for
‘‘Russia’’ to read as follows:
■
SUPPLEMENT NO. 1 TO PART 738—COMMERCE COUNTRY CHART
[Reason for control]
Chemical and biological
weapons
Nuclear nonproliferation
National
security
Missile
tech
Regional
stability
CB
1
CB
2
CB
3
NP
1
NP
2
NS
1
NS
2
MT
1
RS
1
X
X
X
X
*
............
X
*
X
X
X
Firearms
convention
Crime control
Anti-terrorism
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Countries
*
Russia 6 ....................................
*
*
*
*
RS
2
FC
1
CC
1
CC
2
CC
3
AT
1
AT
2
X
*
....................
X
*
X
............
............
............
*
*
*
*
*
*
*
*
*
*
*
*
6 See § 746.5 for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999.
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*
*
*
*
1996 Comp., p. 228; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783.
*
PART 740—LICENSE EXCEPTIONS
4. Supplement No. 1 to part 740 is
amended by:
■ a. In the Country Group A table:
■ i. Revising the table headings for [A:2]
and [A:4], the entries for Russia and
Ukraine, and footnote 2; and
■
3. The authority citation for part 740
continues to read as follows:
■
Authority: 50 U.S.C. 4801–4852; 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,
ii. Redesignating footnote 3 as
footnote 4, adding a new footnote 3, and
revising newly redesignated footnote 4;
and
■ b. In the Country Group D table,
revising the entries for Russia and
Yemen and footnote 1.
The revisions read as follows:
■
SUPPLEMENT NO. 1 TO PART 740—COUNTRY GROUPS
[Country Group A]
Country
[A:1]
Wassenaar
participating
states 1
[A:2]
Missile
technology
control
regime 2
[A:3]
Australia
group
*
*
*
Russia 1 2 3 ..............................................................................................................................
*
........................
*
........................
*
........................
*
*
*
.................................................................................................................................
*
........................
*
Ukraine 4
*
*
*
[A:5]
........................
*
X ........................
........................
X
*
[A:6]
*
........................ ........................
*
X
*
[A:4]
Nuclear
suppliers
group 3
*
*
1 Country
Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
2 Country Group A:2 is a list of the Missile Technology Control Regime countries, except for Russia.
3 Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People’s Republic of China (PRC) and Russia.
4 For purposes of this supplement, as well as any other EAR provision that references the Country Groups, the designations for Ukraine also apply to the Crimea region of Ukraine. See
§ 746.6(c) of the EAR for an exhaustive listing of license exceptions that are available for the Crimea region of Ukraine. No other EAR license exceptions are available for the Crimea region of
Ukraine. The Crimea region of Ukraine includes the land territory in that region as well as any maritime area over which sovereignty, sovereign rights, or jurisdiction is claimed based on purported annexation of that land territory.
*
*
*
*
*
*
*
[Country Group D]
[D: 1]
National
security
Country
*
*
*
*
*
*
*
*
*
Russia .................................................................................................................................................................
*
*
*
*
*
Yemen ................................................................................................................................................................
*
*
*
*
*
[D: 3]
Chemical &
biological
[D: 2]
Nuclear
[D: 5]
U.S. arms
embargoed
countries 1
[D: 4]
Missile
technology
*
*
X
*
X
*
X
X
........................
X
*
........................
*
X
X
........................
*
*
*
1 Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in the Federal Register. The list of arms embargoed
destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Register notices related to arms embargoes (compiled at https://www.pmddtc.state.gov/embargoed_countries/) and will be amended when the State Department publishes subsequent notices. If there are any discrepancies between the list of countries in this table and the countries identified by the State Department as subject to a U.S. arms embargo (in the Federal Register), the State Department’s list of countries subject to U.S. arms embargoes shall be controlling.
*
*
*
*
§ 742.2 Proliferation of chemical and
biological weapons.
*
PART 742—CONTROL POLICY—CCL
BASED CONTROLS
5. The authority citation for part 742
is revised to read as follows:
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■
Authority: 50 U.S.C. 4801–4852; 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; 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, 68 FR
26459, 3 CFR, 2004 Comp., p. 320; Notice of
November 12, 2019, 84 FR 61817 (November
13, 2018).
6. Section 742.2 is amended by
revising paragraph (b)(4) to read as
follows:
■
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*
(b) * * *
(4) License applications for items
described in paragraph (a) of this
section, when destined for the People’s
Republic of China will be reviewed in
accordance with the licensing policies
in both paragraph (b) of this section and
§ 742.4(b)(7). When such items are
destined to Russia, license applications
will be reviewed under a presumption
of denial.
*
*
*
*
*
(4) License applications for items
described in paragraph (a) of this
section, when destined for the People’s
Republic of China will be reviewed in
accordance with the licensing policies
in both paragraph (b) of this section and
§ 742.4(b)(7). When such items are
destined to Russia, license applications
will be reviewed under a presumption
of denial. However, exports and
reexports of items to Russia in support
of U.S.-Russia civil space cooperation
activities or commercial space launches
will be reviewed on a case-by-case basis.
*
*
*
*
*
8. Section 742.5 is amended by adding
two sentences at the end of paragraph
(b)(5) to read as follows:
7. Section 742.3 is amended by
revising paragraph (b)(4) to read as
follows:
■
§ 742.3
§ 742.5
■
*
Nuclear nonproliferation.
*
*
(b) * * *
PO 00000
Frm 00009
*
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*
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*
Missile technology.
*
*
(b) * * *
E:\FR\FM\24FER1.SGM
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*
10278
Federal Register / Vol. 85, No. 36 / Monday, February 24, 2020 / Rules and Regulations
(5) * * * When such items are
destined to Russia, license applications
will be reviewed under a presumption
of denial. However, exports and
reexports of items to Russia in support
of U.S.-Russia civil space cooperation
activities or commercial space launches
will be reviewed on a case-by-case basis.
*
*
*
*
*
Dated: February 10, 2020.
Richard E. Ashooh,
Assistant Secretary for Export
Administration.
[FR Doc. 2020–02941 Filed 2–21–20; 8:45 am]
BILLING CODE 3510–33–P
SOCIAL SECURITY ADMINISTRATION
20 CFR Part 404
[Docket No. SSA–2020–0001]
RIN 0960–AI46
Extension of Expiration Dates for
Three Body System Listings
Social Security Administration.
Final rule.
AGENCY:
ACTION:
SUPPLEMENTARY INFORMATION:
Background
We use the listings in appendix 1 to
subpart P of part 404 of 20 CFR at the
third step of the sequential evaluation
process to evaluate claims filed by
adults and children for benefits based
on disability under the title II and title
XVI programs.1 20 CFR 404.1520(d),
416.920(d), 416.924(d). The listings are
in two parts: Part A has listings criteria
for adults and Part B has listings criteria
for children. If you are age 18 or over,
we apply the listings criteria in part A
when we assess your impairment or
combination of impairments. If you are
under age 18, we first use the criteria in
part B of the listings when we assess
your impairment(s). If the criteria in
part B do not apply, we may use the
criteria in part A when those criteria
consider the effects of your
impairment(s). 20 CFR 404.1525(b),
416.925(b).
Explanation of Changes
In this final rule, we are extending the
dates on which the listings for the
following three body systems will no
longer be effective as set out in the
following chart:
Listing
Current expiration date
Special Senses and Speech 2.00 and 102.00 .......................................
Hematological Disorders 7.00 and 107.00 ..............................................
Congenital Disorders That Affect Multiple Body Systems 10.00 and
110.00.
April 24, 2020 ................................
May 18, 2020 .................................
April 3, 2020 ..................................
Extended expiration date
June 3, 2022.
June 3, 2022.
June 3, 2022.
553(d)(3). We are not making any
substantive changes to the listings in
these body systems. Without an
extension of the expiration dates for
these listings, we will not have the
criteria we need to assess medical
impairments in the three body systems
at step three of the sequential evaluation
processes. We therefore find it is in the
public interest to make this final rule
effective on the publication date.
We follow the Administrative
Procedure Act (APA) rulemaking
procedures specified in 5 U.S.C. 553 in
promulgating regulations. Section
702(a)(5) of the Social Security Act, 42
U.S.C. 902(a)(5). Generally, the APA
requires that an agency provide prior
notice and opportunity for public
comment before issuing a final
regulation. The APA provides
exceptions to the notice-and-comment
requirements when an agency finds
there is good cause for dispensing with
such procedures because they are
impracticable, unnecessary, or contrary
to the public interest.
We determined that good cause exists
for dispensing with the notice and
public comment procedures. 5 U.S.C.
553(b)(B). This final rule only extends
the date on which the three body system
listings will no longer be effective. It
makes no substantive changes to our
rules. Our current regulations 3 provide
that we may extend, revise, or
promulgate the body system listings
again. Therefore, we determined that
opportunity for prior comment is
unnecessary, and we are issuing this
regulation as a final rule.
In addition, for the reasons cited
above, we find good cause for
dispensing with the 30-day delay in the
effective date of this final rule. 5 U.S.C.
1 We also use the listings in the sequential
evaluation processes we use to determine whether
a beneficiary’s disability continues. See 20 CFR
404.1594, 416.994, and 416.994a.
2 We last extended the expiration dates of the
Special Senses and Speech and Congenital
Disorders that Affect Multiple Body Systems body
system listings on April 2, 2018 (83 FR 13862) and
we last updated the Hematological Disorders body
system listings on April 17, 2015 (80 FR 21159).
3 See the first sentence of appendix 1 to subpart
P of part 404 of 20 CFR.
We continue to revise and update the
listings on a regular basis, including
those body systems not affected by this
final rule.2 We intend to update the
three listings affected by this final rule
as necessary based on medical advances
as quickly as possible, but may not be
able to publish final rules revising these
listings by the current expiration dates.
Therefore, we are extending the
expiration dates listed above.
Regulatory Procedures
Justification for Final Rule
lotter on DSKBCFDHB2PROD with RULES
We are extending the
expiration dates of the following body
systems in the Listing of Impairments
(listings) in our regulations: Special
Senses and Speech, Hematological
Disorders, and Congenital Disorders
That Affect Multiple Body Systems. We
are making no other revisions to these
body systems in this final rule. This
extension ensures that we will continue
to have the criteria we need to evaluate
impairments in the affected body
systems at step three of the sequential
evaluation processes for initial claims
and continuing disability reviews.
DATES: This final rule is effective on
February 24, 2020.
FOR FURTHER INFORMATION CONTACT:
Cheryl A. Williams, Director, Office of
Medical Policy, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235–6401,
(410) 965–1020.
For information on eligibility or filing
for benefits, call our national toll-free
number, 1–800–772–1213, or TTY 1–
800–325–0778, or visit our internet site,
Social Security Online, at https://
www.socialsecurity.gov.
SUMMARY:
VerDate Sep<11>2014
16:25 Feb 21, 2020
Jkt 250001
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
Executive Order 12866, as
Supplemented by Executive Order
13563
We consulted with the Office of
Management and Budget (OMB) and
determined that this final rule does not
meet the requirements for a significant
regulatory action under Executive Order
12866, as supplemented by Executive
Order 13563. Therefore, OMB did not
review it. We also determined that this
E:\FR\FM\24FER1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 36 (Monday, February 24, 2020)]
[Rules and Regulations]
[Pages 10274-10278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02941]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 738, 740, and 742
[Docket No. 200204-0044]
RIN 0694-AH93
Amendments to Country Groups for Russia and Yemen Under the
Export Administration Regulations
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
amends the Export Administration Regulations (EAR) to revise the
Country Group designations for the Russian Federation (Russia) and
Yemen based on national security and foreign policy concerns, including
proliferation-related concerns. This action is intended to facilitate
and support accountability in connection with exports and reexports of
items to these destinations under the EAR, and is part of a larger
effort to restructure and re-align the Country Groups based on the
aforementioned interests.
DATES: This rule is effective February 24, 2020.
FOR FURTHER INFORMATION CONTACT: Jodi.Kouts, Director, Chemical and
Biological Controls Division, at email [email protected] or by
phone at (202) 482-6109.
SUPPLEMENTARY INFORMATION:
Background
The Bureau of Industry and Security (BIS) is currently undertaking
a comprehensive review of all Country Groups in the Export
Administration Regulations (EAR) to ensure that they appropriately
reflect current U.S. national security and foreign policy, including
nonproliferation interests.
The foundation of this rule derives from the structure and purposes
of the Commerce Country Chart found in Supplement No. 1 to part 738 and
the Country Groups found in Supplement No. 1 to part 740 of the EAR.
The Country Chart contains licensing requirements based on the
destination to which items listed on the Commerce Control List (CCL)
(Supplement No. 1 to part 774) will be exported or reexported and their
corresponding ``Reason for Control,'' which is found in the CCL entry.
An ``X'' in the cell where the ``reason for control'' column intersects
with the row of the destination indicates a license requirement.
Licenses are required to export and reexport items under the EAR for
multilateral reasons (i.e., chemical and biological (CB), nuclear
nonproliferation (NP), national security (NS), and missile technology
(MT)); and for unilateral reasons (i.e., region stability (RS), crime
control (CC) and anti-terrorism (AT)), as well as to implement controls
for firearms convention (FC) and United Nations Security Council
purposes. Controls for United Nations Security Council purposes are
identified by the abbreviation ``UN'' in the applicable CCL entries.
The ``UN'' reason for control is described in Sec. 746. 2(b) of the
EAR.
In combination with the CCL--the list of items classified and set-
out as Export Control Classification Numbers (ECCNs) and arranged by
categories--the Country Chart allows an exporter to determine whether a
license is required for the export or reexport of an item on the CCL to
the destinations on the Chart, unless otherwise specified in the
particular ECCN entry on the CCL. The lists of Country Groups (A, B, D
and E) set out countries with respect to relative risk and record of
like-minded export controls, and importantly, as a basis for the
availability of exceptions from license requirements described in part
740 (License Exceptions) of the EAR, provided the conditions for the
use of the License Exception are met. Country Groups may also be used
when describing license review policy.
The two lists--the Commerce Country Chart and Country Groups--were
developed for separate purposes and allow for systematic licensing
determinations. Country Groups are not reviewed unless a license is
required by the Country Chart for exports and reexports of items listed
in the CCL, unless, as mentioned above, otherwise indicated in the ECCN
entry on the CCL.
Continuing to apply the structure and purposes of the Country Chart
and Country Groups in furtherance of U.S. national security and foreign
policy, including nonproliferation interests, this rule is part of
BIS's review of Country Groups. BIS has determined the current Country
Group designations for Russia and Yemen should be changed to address
U.S. national security, foreign policy, including proliferation
concerns as further described below.
Specifically, this rule removes Russia from more favorable
treatment under Country Groups A:2 and A:4 and adds it to Country
Groups D:2 and D:4 based on nuclear and missile technology
proliferation concerns, respectively. BIS also amends the licensing
policy for related items to reflect a presumption of denial consistent
with the Country Group changes. Separately, this rule removes Yemen
from more favorable treatment under Country Group B and adds it to
Country Group D:1 to reflect national security concerns.
As a result of these Country Group changes, certain license
exceptions are no longer available for Russia and Yemen, and licenses
are now required for those destinations in connection with exports,
reexports, and transfers (in-country) of certain controlled items. In
addition, certain transactions may be subject to more stringent
licensing review policies or additional prohibitions as outlined in
other parts of the EAR. With these actions, BIS seeks to ensure
accountability for exports and reexports of items to these
destinations. This rule is the first action related to the larger
effort to re-structure and re-align the Country Groups set forth in
Supplement No. 1 to Part 740 of the EAR.
Specific Amendments
Russia: Country Groups A and D
In this rule, BIS removes Russia from Country Groups A:2 (Missile
Technology Control Regime) and A:4 (Nuclear Suppliers Group) to address
U.S. concerns about diversion of U.S.-origin items to or from Russia
for prohibited end uses and end users. This rule removes the ``X'' from
Column ``[A:2]'' and the ``X'' from Column ``[A:4]'' in Supplement No.
1 to Part 740 for ``Russia.'' In relation to the changes to Country
Groups A:2 and A:4 for Russia, this rule also adds Russia to Country
Groups of concern D:2 (Nuclear) and D:4 (Missile Technology). This rule
adds an ``X'' in Column ``[D:2]'' and an ``X'' in Column ``[D:4]'' in
Supplement No. 1 to Part 740 for ``Russia.'' Consistent with adding
``Russia'' to Country Group ``[D:2],'' this rule adds an ``X'' in
Column ``NP 1'' for ``Russia'' in Supplement No. 1 to Part 738--
Commerce Country Chart. Finally, BIS revises the licensing policy for
items to Russia to a policy of presumption of denial when the items are
controlled for reasons described under Sec. 742.2 (Proliferation of
chemical and biological weapons), Sec. 742.3 (Nuclear
nonproliferation), or Sec. 742.5 (Missile technology) of the EAR.
However, with regard to NP and MT controls, applications for exports
and reexports of items, which include commodities, software and
technology, to Russia in support of U.S.-Russia civil space cooperation
activities or commercial space launches will be reviewed on a case-by-
case basis.
[[Page 10275]]
These amendments are consistent with the purpose of this rule to
address U.S. concerns about Russia's lack of cooperation and
accountability for U.S.-origin items and diversion to unauthorized or
prohibited proliferation activities, end uses, and end users.
Specifically, Russia has not been cooperative in allowing BIS to
perform pre-license checks or post-shipment verifications related to
U.S.-origin goods. The presumption of denial under Sec. 742.2 further
accentuates the seriousness with which the United States takes Russia's
use of a ``novichok'' nerve agent in the attack against Sergei Skripal
and his daughter Yulia Skripal in the United Kingdom on March 4, 2018.
Yemen: Country Groups B and D:1
In this rule, BIS removes Yemen from Country Group B and places
Yemen in the country group of concern for national security reasons,
Country Group D:1 (National Security). Specifically, this rule removes
``Yemen'' from Country Group B in Supplement No. 1 to part 740, and
adds an ``X'' in Column ``[D:1]'' of that Supplement for ``Yemen.''
These changes are being made to address concerns about diversion of
U.S.-origin items in Yemen for unauthorized purposes, including
prohibited proliferation activities, end uses, and end users. In
addition, there are concerns about the diversion to unauthorized and
prohibited end uses and users of U.S.-origin items controlled for
national security reasons. The ongoing conflict in Yemen has fostered
international terrorism and instability in the Arabian Peninsula,
including the proliferation of small arms, unmanned aerial systems, and
missiles.
Impact of Removing Russia From Country Groups A:2 and A:4 and Adding to
Country Groups D:2 and D:4
The removal of Russia from Country Groups A:2 and A:4 means a
number of license exceptions are no longer available for Russia, and
previously eligible items now require a license to Russia. Consistent
with removing Russia from Country Groups A:2 and A:4 and adding it to
Country Group D:2, a license is required for the export or reexport of
items subject to NP 1 controls as identified in the applicable Export
Control Classification Numbers (ECCNs) in Supplement No. 1 to part 774
(The Commerce Control List). Denoting this license requirement, this
final rule adds an ``X'' in the NP 1 column of the nuclear
nonproliferation column in Supplement No. 1 to part 738 of the EAR for
Russia. License applications for these items will be reviewed with a
presumption of denial. Consistent with adding Russia to Country Group
D:2, the general prohibition in paragraph (a)(1)(i)(A) of Sec. 744.6,
Restrictions on certain activities of U.S. persons, will be applicable
if the U.S. person exports, reexports, or transfers (in-country) with
``knowledge'' of a prohibited end use in or by Russia.
Consistent with adding Russia to Country Group D:4, the general
prohibitions in paragraphs (a)(1) and (3) of Sec. 744.3, Restrictions
on certain rocket systems (including ballistic missiles, space launch
vehicles and sounding rockets) and unmanned aerial vehicles (including
cruise missiles, target drones and reconnaissance drones) end-uses,
will be applicable if the exporter, reexporter, or transferor has
``knowledge'' the transaction involves one of those prohibited end uses
in or by Russia. In addition, consistent with adding Russia to Country
Group D:4, the general prohibitions in Sec. 744.6 under paragraphs
(a)(1)(i)(B) and (a)(2)(i) will be applicable if the U.S. person
exports, reexports, or transfers (in country) with ``knowledge'' of one
of those prohibited end uses in or by Russia, or engages in one of
those prohibited activities with ``knowledge'' that it will directly
assist such an end use.
Impact of Removing Yemen From Country Group B and Adding to D:1
The removal of Yemen from County Group B means that the following
license exceptions will no longer be available: Sec. 740.3, Shipments
of limited value (LVS); Sec. 740.4, Shipments to Country Group B
countries (GBS); and Sec. 740.6, Technology and software under
restriction (TSR). As a corollary, Yemen's addition to Country Group
D:1 means that the following license exceptions, or other portions
thereof, which include limitations related to Country Group D, will no
longer be available: Sec. 740.9, Temporary imports, exports,
reexports, and transfers (in-country) (TMP); Sec. 740.10, Servicing
and replacement of parts and equipment (RPL); Sec. 740.12, Gift
parcels and humanitarian donations (GFT); Sec. 740.14, Baggage (BAG);
Sec. 740.15, Aircraft and vessels (AVS); Sec. 740.16, Additional
permissive reexports (APR); and Sec. 740.17, Encryption, commodities,
software, and technology (ENC).
Section 742.4(b)(2) of the EAR states the licensing policy for
exports and reexports of national-security controlled items to
destinations in Country Group D:1. That licensing policy is to approve
applications when BIS determines, on a case-by-case basis, that the
items are for civilian use or otherwise would not make a significant
contribution to the military potential of the country of destination
that would prove detrimental to the national security of the United
States. License applications to export or reexport national security
controlled items to Yemen will now be subject to this licensing policy.
In addition, Yemen's placement in Country Group D:1 will result in
the imposition of restrictions on the export, reexport, and transfer
(in-country) of certain microprocessors to military end uses and end
users in Yemen, pursuant to Sec. 744.17, Restrictions on certain
exports, reexports, and transfers (in-country) of microprocessors and
associated ``software'' and ``technology'' for `military end uses' and
to `military end users.' Furthermore, restrictions on certain exports
and reexports to vessels and aircraft located in Yemeni ports or
registered in Yemen will become effective pursuant to Sec. 744.7,
Restrictions on certain exports to and for the use of certain foreign
vessels or aircraft. Finally, the addition of Yemen to Country Group
D:1 will expand the licensing requirements for reexports of the
foreign-produced direct product of U.S.-origin technology and software
to Yemen pursuant to Sec. 736.2(b)(3), General Prohibition Three.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities
and serves as the authority under which BIS issues this rule. As set
forth in Section 1768 of ECRA, all delegations, rules, regulations,
orders, determinations, licenses, or other forms of administrative
action that were made, issued, conducted, or allowed to become
effective under the Export Administration Act of 1979 (50 U.S.C. 4601
et seq.) (as in effect on August 12, 2018, and as continued in effect
pursuant to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.)), or under the Export Administration Regulations, and
were in effect as of August 13, 2018, shall continue in effect
according to their terms until modified, superseded, set aside, or
revoked under the authority of ECRA.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is
[[Page 10276]]
necessary, to select regulatory approaches that maximize net benefits
(including potential economic, environmental, public health and safety
effects, distribute 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 final rule has been designated a ``significant regulatory
action,'' although not economically significant, under section 3(f) of
Executive Order 12866. This final rule will support the national
security and foreign policy objectives of the United States by
broadening the U.S. Government's visibility into exports, reexports,
and transfers (in-country), for a country of concern when the
transactions involve national security controlled items and items
controlled for proliferation reasons.
2. Notwithstanding any other provision of law, no person may be
required to respond to or 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 a
collection currently approved by OMB under control number 0694-0088,
Simplified Network Application Processing System. This collection
includes, among other things, license applications, and carries a
burden estimate of 42.5 minutes for a manual or electronic submission
for a total burden estimate of 31,878 hours. BIS expects the burden
hours associated with this collection to increase slightly by 4 hours
for an estimated cost increase of $120. This increase is not expected
to exceed the existing estimates currently associated with OMB control
number 0694-0088.
3. This rule does not contain policies with federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018 (50 U.S.C. 4801-4852), which was included in the John S. McCain
National Defense Authorization Act for Fiscal Year 2019, this action is
exempt from the Administrative Procedure Act (5 U.S.C. 553)
requirements for notice of proposed rulemaking, opportunity for public
participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical 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.
6. This final rule is not subject to the requirements of Executive
Order 13771 (82 FR 9339, February 3, 2017) because it is issued with
respect to a national security function of the United States. The cost-
benefit analysis required pursuant to Executive Orders 12866 and 13563
indicates that this rule is intended to improve national security as
its primary direct benefit. Specifically, revising the status of the
Country Group designations for Russia and Yemen in this rule protects
the United States and allies by serving the priorities of reducing the
risk that exports, reexports, and transfers (in-country) of items
subject to the EAR could be diverted and contribute to weapons of mass
destruction proliferation and the military capability of countries of
concern, contrary to U.S. national security interests. Accordingly,
this rule meets the requirements set forth in the April 5, 2017 OMB
guidance implementing Executive Order 13771 (82 FR 9339, February 3,
2017), regarding what constitutes a regulation issued ``with respect to
a national security function of the United States,'' and is, therefore,
exempt from the requirements of Executive Order 13771.
Savings Clause
Shipments of items removed from license exception eligibility or
eligibility for export, reexport or transfer (in country) without a
license as a result of this regulatory action that were on dock for
loading, on lighter, laden aboard and exporting carrier, or en route
aboard a carrier to a port of export, on February 24, 2020, pursuant to
actual orders for exports, reexports and transfers (in country) to a
foreign destination, may proceed to that destination under the previous
license exception eligibility or without a license so long as they have
been exported, reexported or transferred (in-country) before 30 days
from date of publication. Any such items not actually exported,
reexported or transferred (in-country) before midnight on March 25,
2020 require a license in accordance with this final rule.
List of Subjects
15 CFR Part 738
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
Accordingly, parts 738, 740, and 742 of the Export Administration
Regulations (15 CFR parts 730-774) are amended as follows:
PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
0
1. The authority citation for part 738 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 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; 42 U.S.C. 2139a; 15
U.S.C. 1824a; 50 U.S.C. 4305; 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.
0
2. Supplement No. 1 to part 738 is amended by revising the entry for
``Russia'' to read as follows:
Supplement No. 1 to Part 738--Commerce Country Chart
[Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical and biological Nuclear National security Missile Regional stability Firearms Crime control Anti-terrorism
weapons nonproliferation -------------------- tech convention -------------------------------------------------
Countries -------------------------------------------------- --------------------------------------------
CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Russia \6\.................. X X X X ........ X X X X X ............ X X ........ ........ ........
* * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
\6\ See Sec. 746.5 for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999.
[[Page 10277]]
* * * * *
PART 740--LICENSE EXCEPTIONS
0
3. The authority citation for part 740 continues to read as follows:
Authority: 50 U.S.C. 4801-4852; 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.
0
4. Supplement No. 1 to part 740 is amended by:
0
a. In the Country Group A table:
0
i. Revising the table headings for [A:2] and [A:4], the entries for
Russia and Ukraine, and footnote 2; and
0
ii. Redesignating footnote 3 as footnote 4, adding a new footnote 3,
and revising newly redesignated footnote 4; and
0
b. In the Country Group D table, revising the entries for Russia and
Yemen and footnote 1.
The revisions read as follows:
Supplement No. 1 to Part 740--Country Groups
[Country Group A]
--------------------------------------------------------------------------------------------------------------------------------------------------------
[A:1] [A:2] Missile
Wassenaar technology [A:3] [A:4] Nuclear
Country participating control regime Australia suppliers [A:5] [A:6]
states \1\ \2\ group group \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Russia 1 2 3............................................ .............. .............. .............. .............. .............. ..............
* * * * * * *
Ukraine \4\............................................. .............. X X X .............. ..............
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Country Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
\2\ Country Group A:2 is a list of the Missile Technology Control Regime countries, except for Russia.
\3\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC) and Russia.
\4\ For purposes of this supplement, as well as any other EAR provision that references the Country Groups, the designations for Ukraine also apply to
the Crimea region of Ukraine. See Sec. 746.6(c) of the EAR for an exhaustive listing of license exceptions that are available for the Crimea region
of Ukraine. No other EAR license exceptions are available for the Crimea region of Ukraine. The Crimea region of Ukraine includes the land territory
in that region as well as any maritime area over which sovereignty, sovereign rights, or jurisdiction is claimed based on purported annexation of that
land territory.
* * * * * * *
[Country Group D]
----------------------------------------------------------------------------------------------------------------
[D: 1] [D: 3] [D: 5] U.S.
Country National [D: 2] Nuclear Chemical & [D: 4] Missile arms embargoed
security biological technology countries \1\
----------------------------------------------------------------------------------------------------------------
* * * * * * *
* * * * * * *
Russia.......................... X X X X ..............
* * * * * * *
Yemen........................... X .............. X X ..............
* * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department
through notices published in the Federal Register. The list of arms embargoed destinations in this table is
drawn from 22 CFR 126.1 and State Department Federal Register notices related to arms embargoes (compiled at
https://www.pmddtc.state.gov/embargoed_countries/) and will be amended when the State Department
publishes subsequent notices. If there are any discrepancies between the list of countries in this table and
the countries identified by the State Department as subject to a U.S. arms embargo (in the Federal Register),
the State Department's list of countries subject to U.S. arms embargoes shall be controlling.
* * * * *
PART 742--CONTROL POLICY--CCL BASED CONTROLS
0
5. The authority citation for part 742 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 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; 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, 68 FR 26459, 3 CFR, 2004
Comp., p. 320; Notice of November 12, 2019, 84 FR 61817 (November
13, 2018).
0
6. Section 742.2 is amended by revising paragraph (b)(4) to read as
follows:
Sec. 742.2 Proliferation of chemical and biological weapons.
* * * * *
(b) * * *
(4) License applications for items described in paragraph (a) of
this section, when destined for the People's Republic of China will be
reviewed in accordance with the licensing policies in both paragraph
(b) of this section and Sec. 742.4(b)(7). When such items are destined
to Russia, license applications will be reviewed under a presumption of
denial.
* * * * *
0
7. Section 742.3 is amended by revising paragraph (b)(4) to read as
follows:
Sec. 742.3 Nuclear nonproliferation.
* * * * *
(b) * * *
(4) License applications for items described in paragraph (a) of
this section, when destined for the People's Republic of China will be
reviewed in accordance with the licensing policies in both paragraph
(b) of this section and Sec. 742.4(b)(7). When such items are destined
to Russia, license applications will be reviewed under a presumption of
denial. However, exports and reexports of items to Russia in support of
U.S.-Russia civil space cooperation activities or commercial space
launches will be reviewed on a case-by-case basis.
* * * * *
0
8. Section 742.5 is amended by adding two sentences at the end of
paragraph (b)(5) to read as follows:
Sec. 742.5 Missile technology.
* * * * *
(b) * * *
[[Page 10278]]
(5) * * * When such items are destined to Russia, license
applications will be reviewed under a presumption of denial. However,
exports and reexports of items to Russia in support of U.S.-Russia
civil space cooperation activities or commercial space launches will be
reviewed on a case-by-case basis.
* * * * *
Dated: February 10, 2020.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2020-02941 Filed 2-21-20; 8:45 am]
BILLING CODE 3510-33-P
