Certain Investments in the United States by Foreign Persons and Certain Transactions by Foreign Persons Involving Real Estate in the United States, 731-732 [2021-28599]
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Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules and Regulations
Thea D. Rozman Kendler,
Assistant Secretary for Export
Administration.
and to facilitate coordination with the
United States on matters relating to
investment security.
This determination satisfies the
second criterion in the definition of
excepted foreign state under 31 CFR
800.218 with respect to Australia and
Canada. Therefore, Australia and
Canada are and will remain excepted
foreign states absent further Committee
action and notice in the Federal
Register.
[FR Doc. 2021–28444 Filed 1–5–22; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Part 800
Larry McDonald,
Acting Assistant Secretary for International
Markets.
Determination Regarding Excepted
Foreign States
Office of Investment Security,
Department of the Treasury.
ACTION: Determination.
AGENCY:
The Department of the
Treasury, as Chair of the Committee on
Foreign Investment in the United States,
is publishing the Committee’s
determination that two foreign states
have established and are effectively
utilizing a robust process to analyze
foreign investments for national security
risks and to facilitate coordination with
the United States on matters relating to
investment security.
DATES: Effective January 5, 2022.
FOR FURTHER INFORMATION CONTACT:
Laura Black, Director of Investment
Security Policy and International
Relations, at U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW, Washington, DC 20220; telephone:
(202) 622–3425; email: CFIUS.FIRRMA@
treasury.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
TKELLEY on DSK125TN23PROD with RULES1
Electronic Availability
The list of excepted foreign states and
additional information with respect to
the Committee on Foreign Investment in
the United States (CFIUS or the
Committee) are available on the
Committee’s section of the Department
of the Treasury website.
Notice of CFIUS Action
The Committee, taking into
consideration the factors identified on
the Committee’s section of the
Department of the Treasury website, has
determined, under the authority of
section 721 of the Defense Production
Act of 1950, as amended, and 31 CFR
800.1001(a), that: (1) Australia has
established and is effectively utilizing a
robust process to analyze foreign
investments for national security risks
and to facilitate coordination with the
United States on matters relating to
investment security; and (2) Canada has
established and is effectively utilizing a
robust process to analyze foreign
investments for national security risks
VerDate Sep<11>2014
18:43 Jan 05, 2022
Jkt 256001
[FR Doc. 2021–28598 Filed 1–5–22; 8:45 am]
BILLING CODE 4810–AK–P
DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Parts 800 and 802
Certain Investments in the United
States by Foreign Persons and Certain
Transactions by Foreign Persons
Involving Real Estate in the United
States
Office of Investment Security,
Department of the Treasury.
ACTION: Final rule.
AGENCY:
This final rule adopts without
change the proposed rule modifying the
definitions of ‘‘excepted foreign state’’
and ‘‘excepted real estate foreign state’’
by extending by one year the effective
date of one of two criteria set forth in
the definitions in the regulations
implementing certain provisions of
Section 721 of the Defense Production
Act of 1950, as amended.
DATES: This final rule is effective on
February 4, 2022.
FOR FURTHER INFORMATION CONTACT: For
questions about this rule, contact: Laura
Black, Director of Investment Security
Policy and International Relations,
Meena R. Sharma, Deputy Director of
Investment Security Policy and
International Relations, or Richard
Rowe, Senior Policy Advisor, at U.S.
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220; telephone: (202) 622–3425;
email: CFIUS.FIRRMA@treasury.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
A. Definitions of Excepted Foreign State
and Excepted Real Estate Foreign
State—Sections 800.218 and 802.214
On November 15, 2021, the
Department of the Treasury (Treasury
Department) published a proposed rule
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
731
amending the definitions of ‘‘excepted
foreign state’’ and ‘‘excepted real estate
foreign state’’ in 31 CFR part 800 and 31
CFR part 802, respectively. 86 FR 62978.
These terms operate together with other
relevant terms to provide an exception
from the jurisdiction of the Committee
on Foreign Investment in the United
States (CFIUS or the Committee) over
covered investments by certain foreign
persons who meet specific criteria
establishing sufficiently close ties to
certain foreign states, as well as certain
other provisions of the Foreign
Investment Risk Review Modernization
Act of 2018.
The preamble to the proposed rule
provides background on CFIUS’s
statutory authority and the rationale for
these definitional changes. The public
was provided an opportunity to
comment on the proposed rule and
comments were due by December 10,
2021. The Treasury Department
received two comments prior to the
deadline, which are described in the
next section.
B. Excepted Foreign States and
Excepted Real Estate Foreign States
As described in the preamble to the
proposed rule, ‘‘excepted foreign state’’
and ‘‘excepted real estate foreign state’’
are each defined by a two-criteria
conjunctive test, with delayed
effectiveness for the second criterion.
This second criterion is a Committee
determination under § 800.1001(a) for
each eligible foreign state that it has
established and ‘‘is effectively utilizing’’
a robust process to analyze foreign
investments for national security risks
and to facilitate coordination with the
United States on matters relating to
investment security, and a Committee
determination under § 802.1001(a) for
each eligible foreign state that it has
‘‘made significant progress’’ toward
establishing and effectively utilizing the
robust process that is described in
§ 800.1001. The final rule extends the
effectiveness of the second criterion
with respect to each definition. Instead
of becoming effective on February 13,
2022, each such second criterion will
become effective on February 13, 2023.
II. Summary of Comments
During the public comment period,
the Treasury Department received two
comments to the proposed rule. The
Treasury Department considered each
submitted comment. All comments
received by the end of the comment
period are available on the public
rulemaking docket at https://
www.regulations.gov and addressed
herein.
E:\FR\FM\06JAR1.SGM
06JAR1
732
Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules and Regulations
One comment supported the proposed
rule and asked whether foreign states
understand the determination criteria
set forth in § 802.1001(a). The Treasury
Department notes that there is
additional information with respect to
the factors that the Committee will
consider in making determinations
under §§ 800.1001(a) and 802.1001(a) on
its website, available at https://
home.treasury.gov/policy-issues/
international/the-committee-on-foreigninvestment-in-the-united-states-cfius/
cfius-excepted-foreign-states. The public
disclosure of the factors that CFIUS will
consider in its determinations is
informative to foreign states of the
progress needed to meet the definitions
of excepted foreign state and excepted
real estate foreign state. CFIUS also
engages with foreign counterparts on
investment screening issues.
Another comment asked about the
impact of the pandemic and the
excepted foreign state determinations.
Extending the effective date of the
second criterion in each definition
provides foreign states with additional
time to meet the determination factors.
As stated in the preamble to the
proposed rule, the Committee had
determined that extending the time
period before which such requirements
become applicable is desirable given
certain ongoing changes to foreign
investment review regimes. The
proposed rule does not make any
change to the two-part conjunctive tests
or to the factors set forth under
§§ 800.1001(a) and 802.1001(a) for the
second criterion. These tests and factors
continue to provide the basis for CFIUS
to designate excepted foreign states and
excepted real estate foreign states.
Upon review and consideration of
these comments, the Treasury
Department has determined that the
proposed rule is desirable given certain
ongoing changes to foreign investment
review regimes. The final rule therefore
adopts the proposed rule without
change.
TKELLEY on DSK125TN23PROD with RULES1
Executive Order 12866
These regulations are not subject to
the general requirements of Executive
Order 12866, which covers review of
regulations by the Office of Information
and Regulatory Affairs in the Office of
Management and Budget (OMB),
because they relate to a foreign affairs
function of the United States, pursuant
to section 3(d)(2) of that order. In
addition, these regulations are not
subject to review under section 6(b) of
Executive Order 12866 pursuant to
section 7(c) of the April 11, 2018,
17:53 Jan 05, 2022
Jkt 256001
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq., RFA) generally
requires an agency to prepare a
regulatory flexibility analysis unless the
agency certifies that the rule will not,
once implemented, have a significant
economic impact on a substantial
number of small entities. The final rule
extends the delayed effectiveness period
for the second criterion in each of 31
CFR part 800 and 31 CFR part 802
without making any change to the twocriteria conjunctive test in either the
definition of excepted foreign state or
excepted real estate foreign state. The
final rule therefore does not change the
circumstances of any investor. Both
before and after the final rule’s
effectiveness, any investor with
sufficiently close ties to an eligible
foreign state may be excepted from
certain aspects of CFIUS’s jurisdiction,
including if engaging in a transaction
with a small business. Such exception
would be expected to lessen the burden
on any such small business. The final
rule therefore does not impose any
additional burden on potential filers,
including small businesses. Considering
the foregoing, the Secretary of the
Treasury certifies, pursuant to 5 U.S.C.
605(b), that this final rule will not have
a significant economic impact on a
substantial number of small entities.
Congressional Review Act
This rule has been submitted to the
Office of Information and Regulatory
Affairs (OIRA), which has determined
that the rule is not a ‘‘major’’ rule under
the Congressional Review Act.
31 CFR Part 800
Foreign investments in the United
States, Investments.
31 CFR Part 802
Frm 00004
Fmt 4700
1. The authority citation for part 800
continues to read:
■
Authority: 50 U.S.C. 4565; E.O. 11858, as
amended, 73 FR 4677.
Subpart B—Definitions
§ 800.218
[Amended]
2. Amend § 800.218 introductory text
by removing the year ‘‘2022’’ wherever
it appears and adding in its place
‘‘2023’’.
■
PART 802—REGULATIONS
PERTAINING TO CERTAIN
TRANSACTIONS BY FOREIGN
PERSONS INVOLVING REAL ESTATE
IN THE UNITED STATES
3. The authority citation for part 802
continues to read:
■
Authority: 50 U.S.C. 4565; E.O. 11858, as
amended, 73 FR 4677.
Subpart B—Definitions
§ 802.214
[Amended]
4. Amend § 802.214 introductory text
by removing the year ‘‘2022’’ wherever
it appears and adding in its place
‘‘2023’’.
■
Larry McDonald,
Acting Assistant Secretary for International
Markets.
[FR Doc. 2021–28599 Filed 1–5–22; 8:45 am]
BILLING CODE 4810–AK–P
DEPARTMENT OF THE INTERIOR
43 CFR Part 8365
[212.LLAZA01000.L1220000.DD0000]
Final Supplementary Rule for Public
Lands at Virgin River Canyon
Recreation Area in Mohave County,
Arizona
Bureau of Land Management,
Interior.
ACTION: Final supplementary rule.
AGENCY:
The Bureau of Land
Management (BLM) is finalizing a
supplementary rule to reinstate a 14-day
camping limit at the Virgin River
Canyon Recreation Area within the
Arizona Strip Field Office, Arizona
Strip District, Mohave County, Arizona.
The supplementary rule is needed to
protect public health and safety, reduce
user conflicts within the designated
SUMMARY:
Real estate transactions in the United
States, Investments.
For the reasons set forth in the
preamble, the Treasury Department
amends 31 CFR parts 800 and 802
regarding the definition of excepted
foreign state and excepted real estate
foreign state as follows:
PO 00000
PART 800—REGULATIONS
PERTAINING TO CERTAIN
INVESTMENTS IN THE UNITED
STATES BY FOREIGN PERSONS
Bureau of Land Management
List of Subjects
III. Rulemaking Requirements
VerDate Sep<11>2014
Memorandum of Agreement between
the Treasury Department and OMB,
which states that CFIUS regulations are
not subject to OMB’s standard
centralized review process under
Executive Order 12866.
Sfmt 4700
E:\FR\FM\06JAR1.SGM
06JAR1
]]>Agencies
[Federal Register Volume 87, Number 4 (Thursday, January 6, 2022)]
[Rules and Regulations]
[Pages 731-732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28599]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Investment Security
31 CFR Parts 800 and 802
Certain Investments in the United States by Foreign Persons and
Certain Transactions by Foreign Persons Involving Real Estate in the
United States
AGENCY: Office of Investment Security, Department of the Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule adopts without change the proposed rule
modifying the definitions of ``excepted foreign state'' and ``excepted
real estate foreign state'' by extending by one year the effective date
of one of two criteria set forth in the definitions in the regulations
implementing certain provisions of Section 721 of the Defense
Production Act of 1950, as amended.
DATES: This final rule is effective on February 4, 2022.
FOR FURTHER INFORMATION CONTACT: For questions about this rule,
contact: Laura Black, Director of Investment Security Policy and
International Relations, Meena R. Sharma, Deputy Director of Investment
Security Policy and International Relations, or Richard Rowe, Senior
Policy Advisor, at U.S. Department of the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220; telephone: (202) 622-3425; email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
A. Definitions of Excepted Foreign State and Excepted Real Estate
Foreign State--Sections 800.218 and 802.214
On November 15, 2021, the Department of the Treasury (Treasury
Department) published a proposed rule amending the definitions of
``excepted foreign state'' and ``excepted real estate foreign state''
in 31 CFR part 800 and 31 CFR part 802, respectively. 86 FR 62978.
These terms operate together with other relevant terms to provide an
exception from the jurisdiction of the Committee on Foreign Investment
in the United States (CFIUS or the Committee) over covered investments
by certain foreign persons who meet specific criteria establishing
sufficiently close ties to certain foreign states, as well as certain
other provisions of the Foreign Investment Risk Review Modernization
Act of 2018.
The preamble to the proposed rule provides background on CFIUS's
statutory authority and the rationale for these definitional changes.
The public was provided an opportunity to comment on the proposed rule
and comments were due by December 10, 2021. The Treasury Department
received two comments prior to the deadline, which are described in the
next section.
B. Excepted Foreign States and Excepted Real Estate Foreign States
As described in the preamble to the proposed rule, ``excepted
foreign state'' and ``excepted real estate foreign state'' are each
defined by a two-criteria conjunctive test, with delayed effectiveness
for the second criterion. This second criterion is a Committee
determination under Sec. 800.1001(a) for each eligible foreign state
that it has established and ``is effectively utilizing'' a robust
process to analyze foreign investments for national security risks and
to facilitate coordination with the United States on matters relating
to investment security, and a Committee determination under Sec.
802.1001(a) for each eligible foreign state that it has ``made
significant progress'' toward establishing and effectively utilizing
the robust process that is described in Sec. 800.1001. The final rule
extends the effectiveness of the second criterion with respect to each
definition. Instead of becoming effective on February 13, 2022, each
such second criterion will become effective on February 13, 2023.
II. Summary of Comments
During the public comment period, the Treasury Department received
two comments to the proposed rule. The Treasury Department considered
each submitted comment. All comments received by the end of the comment
period are available on the public rulemaking docket at https://www.regulations.gov and addressed herein.
[[Page 732]]
One comment supported the proposed rule and asked whether foreign
states understand the determination criteria set forth in Sec.
802.1001(a). The Treasury Department notes that there is additional
information with respect to the factors that the Committee will
consider in making determinations under Sec. Sec. 800.1001(a) and
802.1001(a) on its website, available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-excepted-foreign-states. The public
disclosure of the factors that CFIUS will consider in its
determinations is informative to foreign states of the progress needed
to meet the definitions of excepted foreign state and excepted real
estate foreign state. CFIUS also engages with foreign counterparts on
investment screening issues.
Another comment asked about the impact of the pandemic and the
excepted foreign state determinations. Extending the effective date of
the second criterion in each definition provides foreign states with
additional time to meet the determination factors. As stated in the
preamble to the proposed rule, the Committee had determined that
extending the time period before which such requirements become
applicable is desirable given certain ongoing changes to foreign
investment review regimes. The proposed rule does not make any change
to the two-part conjunctive tests or to the factors set forth under
Sec. Sec. 800.1001(a) and 802.1001(a) for the second criterion. These
tests and factors continue to provide the basis for CFIUS to designate
excepted foreign states and excepted real estate foreign states.
Upon review and consideration of these comments, the Treasury
Department has determined that the proposed rule is desirable given
certain ongoing changes to foreign investment review regimes. The final
rule therefore adopts the proposed rule without change.
III. Rulemaking Requirements
Executive Order 12866
These regulations are not subject to the general requirements of
Executive Order 12866, which covers review of regulations by the Office
of Information and Regulatory Affairs in the Office of Management and
Budget (OMB), because they relate to a foreign affairs function of the
United States, pursuant to section 3(d)(2) of that order. In addition,
these regulations are not subject to review under section 6(b) of
Executive Order 12866 pursuant to section 7(c) of the April 11, 2018,
Memorandum of Agreement between the Treasury Department and OMB, which
states that CFIUS regulations are not subject to OMB's standard
centralized review process under Executive Order 12866.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq., RFA)
generally requires an agency to prepare a regulatory flexibility
analysis unless the agency certifies that the rule will not, once
implemented, have a significant economic impact on a substantial number
of small entities. The final rule extends the delayed effectiveness
period for the second criterion in each of 31 CFR part 800 and 31 CFR
part 802 without making any change to the two-criteria conjunctive test
in either the definition of excepted foreign state or excepted real
estate foreign state. The final rule therefore does not change the
circumstances of any investor. Both before and after the final rule's
effectiveness, any investor with sufficiently close ties to an eligible
foreign state may be excepted from certain aspects of CFIUS's
jurisdiction, including if engaging in a transaction with a small
business. Such exception would be expected to lessen the burden on any
such small business. The final rule therefore does not impose any
additional burden on potential filers, including small businesses.
Considering the foregoing, the Secretary of the Treasury certifies,
pursuant to 5 U.S.C. 605(b), that this final rule will not have a
significant economic impact on a substantial number of small entities.
Congressional Review Act
This rule has been submitted to the Office of Information and
Regulatory Affairs (OIRA), which has determined that the rule is not a
``major'' rule under the Congressional Review Act.
List of Subjects
31 CFR Part 800
Foreign investments in the United States, Investments.
31 CFR Part 802
Real estate transactions in the United States, Investments.
For the reasons set forth in the preamble, the Treasury Department
amends 31 CFR parts 800 and 802 regarding the definition of excepted
foreign state and excepted real estate foreign state as follows:
PART 800--REGULATIONS PERTAINING TO CERTAIN INVESTMENTS IN THE
UNITED STATES BY FOREIGN PERSONS
0
1. The authority citation for part 800 continues to read:
Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.
Subpart B--Definitions
Sec. 800.218 [Amended]
0
2. Amend Sec. 800.218 introductory text by removing the year ``2022''
wherever it appears and adding in its place ``2023''.
PART 802--REGULATIONS PERTAINING TO CERTAIN TRANSACTIONS BY FOREIGN
PERSONS INVOLVING REAL ESTATE IN THE UNITED STATES
0
3. The authority citation for part 802 continues to read:
Authority: 50 U.S.C. 4565; E.O. 11858, as amended, 73 FR 4677.
Subpart B--Definitions
Sec. 802.214 [Amended]
0
4. Amend Sec. 802.214 introductory text by removing the year ``2022''
wherever it appears and adding in its place ``2023''.
Larry McDonald,
Acting Assistant Secretary for International Markets.
[FR Doc. 2021-28599 Filed 1-5-22; 8:45 am]
BILLING CODE 4810-AK-P
