Addition to the List of Countries Excluded From Certain License Requirements Under the Export Administration Regulations (EAR), 13627-13628 [2022-05025]

Download as PDF 13627 Rules and Regulations Federal Register Vol. 87, No. 47 Thursday, March 10, 2022 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 746 [Docket No. 220304–0069] RIN 0694–AI77 Addition to the List of Countries Excluded From Certain License Requirements Under the Export Administration Regulations (EAR) Bureau of Industry and Security, Department of Commerce. ACTION: Final rule. AGENCY: In response to the Russian Federation’s (Russia’s) further invasion of Ukraine, and to protect U.S. national security and foreign policy interests, the Department of Commerce has added new and highly restrictive license requirements and policies for certain transactions involving Russia and Belarus under the Export Administration Regulations (EAR). In order to recognize partner countries that have committed to implementing substantially similar new export controls on Russia and Belarus in their domestic laws, the Department of Commerce has published a list of countries excluded from portions of these new U.S. export controls. These exclusions apply specifically to certain requirements under the EAR related to foreign-produced items. In this rule, the Department of Commerce adds the Republic of Korea (South Korea) to the list of excluded countries. DATES: This rule is effective March 4, 2022. khammond on DSKJM1Z7X2PROD with RULES SUMMARY: For questions on this final rule, contact Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482–0092, Fax: (202) 482– 482–3355, Email: rpd2@bis.doc.gov. For FOR FURTHER INFORMATION CONTACT: VerDate Sep<11>2014 15:49 Mar 09, 2022 Jkt 256001 emails, include ‘‘Russia’’ in the subject line. SUPPLEMENTARY INFORMATION: Background Effective February 24, 2022, in response to Russia’s further invasion of Ukraine, the Department of Commerce’s Bureau of Industry and Security (BIS) added new Russia license requirements and policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. See 87 FR 12226 (March 3, 2022) (Russia Sanctions rule). These new Russia license requirements included new Commerce Control List (CCL)-based license requirements involving exports, reexports, and transfer (in-country) transactions and two new foreign ‘‘direct product’’ rules (FDP rules) specific to Russia and to Russian ‘military end users.’ A subsequent rule, effective March 2, 2022, extended these license requirements to export, reexport, and transfer (in-country) transactions involving Belarus, as a result of Belarus’s substantial enabling of Russia’s invasion of Ukraine (Belarus Sanctions rule).1 Both of these rules included a savings clause specific to items controlled by the two FDP rules, stating that such items en route aboard a carrier to a port of export, reexport, or transfer (in-country), on or before March 26, 2022, pursuant to actual orders for reexport, or transfer (in-country) to or within a foreign destination, may proceed to such foreign destination under an applicable authorization that was available prior to the new license requirements, or with no license required, if no license requirements had previously applied to such transactions. The new Belarus and Russia restrictions set forth in § 746.8 of the EAR refer to a list of countries that have committed to implementing substantially similar export controls on Belarus and Russia under their domestic laws. Pursuant to § 746.8(a)(5), countries that have made such a commitment receive full or partial exclusions, as appropriate, from the FDP rules’ license requirements set forth under § 746.8(a)(2) and (3) of the EAR. Similarly, the license requirements in § 746.8(a)(1) are not used to determine 1 Imposition of Sanctions Against Belarus Under the Export Administration Regulations (EAR), FR 2022–04819, scheduled to publish March 8, 2022. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 controlled U.S.-content under the EAR’s de minimis rules, as set forth in supplement no. 2 to part 734 of the EAR, provided the criteria in § 746.8(a)(5)(i) and (ii) are met. Countries excluded from these requirements are listed in supplement no. 3 to part 746 (Russia and Belarus Exclusions List). As a result of South Korea’s commitment to implement substantially similar export controls on Russia and Belarus under its domestic laws, the Department of Commerce adds South Korea to supplement no. 3 to part 746 in this rule with the designation of ‘‘full.’’ 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) (codified, as amended, at 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. Rulemaking Requirements 1. This final rule is not a ‘‘significant regulatory action’’ because it ‘‘pertain[s]’’ to a ‘‘military or foreign affairs function of the United States’’ under sec. 3(d)(2) of Executive Order 12866. 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that collection of information displays a currently valid Office of Management and Budget (OMB) Control Number. This rule involves the following OMB-approved collections of information subject to the PRA: 0694–0088, ‘‘Multi-Purpose Application,’’ which carries a burden hour estimate of 29.6 minutes for a manual or electronic submission; 0694– 0096 ‘‘Five Year Records Retention Period,’’ which carries a burden hour estimate of less than 1 minute; and 0607–0152 ‘‘Automated Export System (AES) Program,’’ which carries a burden hour estimate of 3 minutes per electronic submission. BIS anticipates this rule will result in a slight decrease in the number of estimated license applications because this rule provides E:\FR\FM\10MRR1.SGM 10MRR1 13628 Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules and Regulations relief from the burden of the new Russia Sanctions rule and Belarus Sanctions rule requirements that would otherwise pertain to items produced in, exported or reexported from South Korea, or transferred (in-country). Thus, this rule does not create a substantive change to OMB Control Numbers 0694–0088, 0694–0096, or 0607–0152. 3. This rule does not contain policies with federalism implications as that term is defined in Executive Order 13132. 4. Pursuant to section 1762 of the Export Control Reform Act of 2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date. While section 1762 of ECRA provides sufficient authority for such an exemption, this action is also independently exempt from these APA requirements because it involves a List of Subjects in 15 CFR Part 746 Exports, Reporting and recordkeeping requirements. For the reasons stated in the preamble, part 746 of the Export Administration Regulations (15 CFR parts 730 through 774) is amended as follows: PART 746—EMBARGOES AND OTHER SPECIAL CONTROLS Scope * * South Korea .................................................. * * Full ............................................................... * * Thea D. Rozman Kendler, Assistant Secretary for Export Administration. DEPARTMENT OF THE TREASURY 31 CFR Part 35 RIN 1505–AC79 State Small Business Credit Initiative; Demographics-Related Reporting Requirements Department of the Treasury. Interim final rule. AGENCY: ACTION: The Secretary of the Treasury is issuing this interim final rule to institute the reporting requirements related to demographics of those who own or control small businesses that receive a loan, investment, other credit or equity support, or technical assistance under the State Small Business Credit Initiative under the American Rescue Plan Act of 2021. DATES: Effective date: This interim final rule is effective March 9, 2022. SUMMARY: VerDate Sep<11>2014 15:49 Mar 09, 2022 * Jkt 256001 Frm 00002 * * * * * * * 87 FR [INSERT FR PAGE NUMBER] 3/10/2022. Please submit comments electronically through the Federal eRulemaking Portal: https:// www.regulations.gov. Comments can be mailed to the Office of Recovery Programs, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220. Because postal mail may be subject to processing delay, it is recommended that comments be submitted electronically. All comments should be captioned with ‘‘SSBCI Interim Final Rule Comments.’’ Please include your name, organization affiliation, address, email address and telephone number in your comment. Where appropriate, a comment should include a short executive summary. In general, comments received will be posted on https://www.regulations.gov without change, including any business or personal information provided. Comments received, including attachments and other supporting materials, will be part of the public record and subject to public disclosure. Do not enclose any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. PO 00000 Supplement No. 3 to Part 746— Countries Excluded From Certain License Requirements of § 746.8 * ADDRESSES: BILLING CODE 3510–33–P 2. Supplement no. 3 to part 746 is amended by adding an entry for ‘‘South Korea’’ in alphabetical order to read as follows: ■ Federal Register citation Comment date: Comments must be received on or before April 11, 2022. [FR Doc. 2022–05025 Filed 3–4–22; 4:15 pm] 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. 287c; Sec. 1503, Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential Determination 2003–23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007–7, 72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR 26793 (May 10, 2021). * 1. The authority citation for 15 CFR part 746 continues to read as follows: ■ Country * khammond on DSKJM1Z7X2PROD with RULES military or foreign affairs function of the United States (5 U.S.C. 553(a)(1)). 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. Fmt 4700 Sfmt 4700 * * Jeff Stout, Director, Office of Federal Program Finance, at (202) 622–2059 or ssbci_information@treasury.gov. FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: I. Background The American Rescue Plan Act of 2021 (ARPA) reauthorized and amended the Small Business Jobs Act of 2010 (SBJA) to provide $10 billion to fund the State Small Business Credit Initiative (SSBCI) as a response to the economic effects of the COVID–19 pandemic.1 SSBCI is a federal program administered by the U.S. Department of the Treasury (Treasury) that was created to strengthen the programs of eligible jurisdictions that support private financing for small businesses. Eligible jurisdictions include states, territories, Tribal governments, and eligible municipalities. SSBCI is expected to, in conjunction with new small business financing, create billions of dollars in lending to, and investments in, small businesses. 1 ARPA, Public Law 117–2, sec. 3301, codified at 12 U.S.C. 5701 et seq. SSBCI was originally established in Title III of the Small Business Jobs Act of 2010. E:\FR\FM\10MRR1.SGM 10MRR1

Agencies

[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Rules and Regulations]
[Pages 13627-13628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05025]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules 
and Regulations

[[Page 13627]]



DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 746

[Docket No. 220304-0069]
RIN 0694-AI77


Addition to the List of Countries Excluded From Certain License 
Requirements Under the Export Administration Regulations (EAR)

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: In response to the Russian Federation's (Russia's) further 
invasion of Ukraine, and to protect U.S. national security and foreign 
policy interests, the Department of Commerce has added new and highly 
restrictive license requirements and policies for certain transactions 
involving Russia and Belarus under the Export Administration 
Regulations (EAR). In order to recognize partner countries that have 
committed to implementing substantially similar new export controls on 
Russia and Belarus in their domestic laws, the Department of Commerce 
has published a list of countries excluded from portions of these new 
U.S. export controls. These exclusions apply specifically to certain 
requirements under the EAR related to foreign-produced items. In this 
rule, the Department of Commerce adds the Republic of Korea (South 
Korea) to the list of excluded countries.

DATES: This rule is effective March 4, 2022.

FOR FURTHER INFORMATION CONTACT: For questions on this final rule, 
contact Eileen Albanese, Director, Office of National Security and 
Technology Transfer Controls, Bureau of Industry and Security, 
Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355, 
Email: [email protected]. For emails, include ``Russia'' in the subject 
line.

SUPPLEMENTARY INFORMATION:

Background

    Effective February 24, 2022, in response to Russia's further 
invasion of Ukraine, the Department of Commerce's Bureau of Industry 
and Security (BIS) added new Russia license requirements and policies 
to the Export Administration Regulations (EAR) to protect U.S. national 
security and foreign policy interests. See 87 FR 12226 (March 3, 2022) 
(Russia Sanctions rule). These new Russia license requirements included 
new Commerce Control List (CCL)-based license requirements involving 
exports, reexports, and transfer (in-country) transactions and two new 
foreign ``direct product'' rules (FDP rules) specific to Russia and to 
Russian `military end users.' A subsequent rule, effective March 2, 
2022, extended these license requirements to export, reexport, and 
transfer (in-country) transactions involving Belarus, as a result of 
Belarus's substantial enabling of Russia's invasion of Ukraine (Belarus 
Sanctions rule).\1\ Both of these rules included a savings clause 
specific to items controlled by the two FDP rules, stating that such 
items en route aboard a carrier to a port of export, reexport, or 
transfer (in-country), on or before March 26, 2022, pursuant to actual 
orders for reexport, or transfer (in-country) to or within a foreign 
destination, may proceed to such foreign destination under an 
applicable authorization that was available prior to the new license 
requirements, or with no license required, if no license requirements 
had previously applied to such transactions.
---------------------------------------------------------------------------

    \1\ Imposition of Sanctions Against Belarus Under the Export 
Administration Regulations (EAR), FR 2022-04819, scheduled to 
publish March 8, 2022.
---------------------------------------------------------------------------

    The new Belarus and Russia restrictions set forth in Sec.  746.8 of 
the EAR refer to a list of countries that have committed to 
implementing substantially similar export controls on Belarus and 
Russia under their domestic laws. Pursuant to Sec.  746.8(a)(5), 
countries that have made such a commitment receive full or partial 
exclusions, as appropriate, from the FDP rules' license requirements 
set forth under Sec.  746.8(a)(2) and (3) of the EAR. Similarly, the 
license requirements in Sec.  746.8(a)(1) are not used to determine 
controlled U.S.-content under the EAR's de minimis rules, as set forth 
in supplement no. 2 to part 734 of the EAR, provided the criteria in 
Sec.  746.8(a)(5)(i) and (ii) are met. Countries excluded from these 
requirements are listed in supplement no. 3 to part 746 (Russia and 
Belarus Exclusions List). As a result of South Korea's commitment to 
implement substantially similar export controls on Russia and Belarus 
under its domestic laws, the Department of Commerce adds South Korea to 
supplement no. 3 to part 746 in this rule with the designation of 
``full.''

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) (codified, as 
amended, at 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.

Rulemaking Requirements

    1. This final rule is not a ``significant regulatory action'' 
because it ``pertain[s]'' to a ``military or foreign affairs function 
of the United States'' under sec. 3(d)(2) of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves the following OMB-approved collections of information subject 
to the PRA: 0694-0088, ``Multi-Purpose Application,'' which carries a 
burden hour estimate of 29.6 minutes for a manual or electronic 
submission; 0694-0096 ``Five Year Records Retention Period,'' which 
carries a burden hour estimate of less than 1 minute; and 0607-0152 
``Automated Export System (AES) Program,'' which carries a burden hour 
estimate of 3 minutes per electronic submission. BIS anticipates this 
rule will result in a slight decrease in the number of estimated 
license applications because this rule provides

[[Page 13628]]

relief from the burden of the new Russia Sanctions rule and Belarus 
Sanctions rule requirements that would otherwise pertain to items 
produced in, exported or reexported from South Korea, or transferred 
(in-country). Thus, this rule does not create a substantive change to 
OMB Control Numbers 0694-0088, 0694-0096, or 0607-0152.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the 
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for 
notice of proposed rulemaking, opportunity for public participation, 
and delay in effective date. While section 1762 of ECRA provides 
sufficient authority for such an exemption, this action is also 
independently exempt from these APA requirements because it involves a 
military or foreign affairs function of the United States (5 U.S.C. 
553(a)(1)).
    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.

List of Subjects in 15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, part 746 of the Export 
Administration Regulations (15 CFR parts 730 through 774) is amended as 
follows:

PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS

0
1. The authority citation for 15 CFR part 746 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. 287c; Sec. 1503, Pub. L. 108-11, 117 
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et 
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR 
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7, 
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR 
26793 (May 10, 2021).


0
2. Supplement no. 3 to part 746 is amended by adding an entry for 
``South Korea'' in alphabetical order to read as follows:

Supplement No. 3 to Part 746--Countries Excluded From Certain License 
Requirements of Sec.  746.8

* * * * *

------------------------------------------------------------------------
                                                       Federal Register
             Country                     Scope             citation
------------------------------------------------------------------------
 
                              * * * * * * *
South Korea.....................  Full..............  87 FR [INSERT FR
                                                       PAGE NUMBER] 3/10/
                                                       2022.
 
                              * * * * * * *
------------------------------------------------------------------------


Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-05025 Filed 3-4-22; 4:15 pm]
BILLING CODE 3510-33-P