Revisions To Export, Reexport, and Transfer (In-Country) Controls for Nicaragua Under the Export Administration Regulations, 18780-18784 [2024-05696]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 89, Number 52 (Friday, March 15, 2024)]
[Rules and Regulations]
[Pages 18780-18784]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05696]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, and 744

[Docket No. 240202-0036]
RIN 0694-AJ34


Revisions To Export, Reexport, and Transfer (In-Country) Controls 
for Nicaragua Under the Export Administration Regulations

AGENCY: Bureau of Industry and Security (BIS), Commerce.

ACTION: Final rule.

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SUMMARY: In this final rule, BIS amends the Export Administration 
Regulations (EAR) to apply more restrictive treatment to exports and 
reexports to, and transfers (in-country) within, Nicaragua of items 
subject to the EAR. This action is consistent with the State 
Department's addition of Nicaragua to the list of countries that are 
subject to a U.S. arms embargo under the International Traffic in Arms 
Regulations (ITAR). To reflect this changed status under the ITAR, BIS 
adds Nicaragua to Country Group D:5. BIS's amendments also address 
concerns regarding the Nicaraguan Government's commission of human 
rights abuses against citizens and civil society groups, as well as the 
regime's ongoing military and security cooperation with Russia. 
Specifically, BIS is moving Nicaragua from Country Group B to Country 
Group D, a more restrictive country grouping, applying a stringent 
licensing policy for items controlled for national security reasons, 
and making the country subject to `military end use' and `military end 
user' restrictions. This rule advances the U.S. Government's efforts to 
restrict the availability of items subject to the EAR to Nicaragua's 
military and security services. Additionally, consistent with BIS's 
authorities under the Export Control Reform Act of 2018, this rule 
demonstrates a commitment to using export controls to protect human 
rights and promote democracy.

DATES: This rule is effective March 15, 2024.

FOR FURTHER INFORMATION CONTACT: Anthony Christino III, Director, 
Foreign Policy Division, Office of Nonproliferation and Treaty 
Compliance, Bureau of Industry and Security, U.S. Department of 
Commerce, by email at [email protected], or by phone at 202-
482-4252.

SUPPLEMENTARY INFORMATION:

Background

    To address ongoing foreign policy and national security concerns 
raised by the actions of the Nicaraguan Government under the leadership 
of President Daniel Ortega, including by Nicaraguan military and 
security services, BIS is issuing this final rule that would subject 
the country to more restrictive treatment under the Export 
Administration Regulations (EAR), 15 CFR parts 730 through 774.
    In particular, this rule makes regulatory changes that reflect the 
U.S. Government's opposition to the trade of arms with Nicaragua and 
its government consistent with the State Department's March 15, 2024, 
addition of Nicaragua to Sec.  126.1(p) of the International Traffic in 
Arms Regulations (ITAR), 22 CFR parts 120 through 130, thereby imposing 
restrictions (with limited exceptions) on the export of defense 
articles and defense services destined for or originating in the 
country.
    Additionally, BIS's action addresses the Nicaraguan Government's 
ongoing dismantling of democratic institutions and attacks on civil 
society. Since 2018, President Ortega's regime has targeted democratic 
movements supported by students and middle-class professionals and 
sought to curb religious expression, including by the Roman Catholic 
church. In many instances, the government crackdowns have been aided 
and abetted by the Nicaragua National Police (NNP), the government's 
primary law enforcement entity, and the Nicaraguan judiciary. The NNP 
has been responsible for using live ammunition against peaceful 
protesters and participating in death squads, as well as carrying out 
extrajudicial killings, disappearances, and kidnappings. As documented 
by Amnesty International, during a period of several months starting in 
July 2018, the NNP and other pro-government forces conducted 
``Operation Clean Up,'' an operation in which they deployed lethal 
force against protesters resulting in hundreds of deaths and injuries. 
On March 5, 2020, the U.S. Department of the Treasury's Office of 
Foreign Assets Control designated the NNP and three NNP commissioners, 
Juan Antonio Valle Valle, Luis Alberto Perez Olivas, and Justo Pastor 
Urbina, as Specially Designated Nationals. See https://home.treasury.gov/news/press-releases/sm930. On March 28, 2023, BIS 
amended the EAR by adding the NNP to the Entity List (88 FR 18983; 
March 30, 2023).
    BIS is also taking this regulatory action to address national 
security and foreign policy concerns arising out of

[[Page 18781]]

Nicaragua's deepening military and security ties with Russia. Since 
2016, Russia has supplied Nicaragua with military equipment and 
technology that provides surveillance capabilities, including satellite 
monitoring of telecommunications. In June 2022, the two countries 
renewed a decade-long training agreement for Russian forces. The Ortega 
regime has also formally supported Russia in connection with its 
February 2022 invasion of Ukraine in various international fora, 
including an October 2022 vote in support of Russia before the United 
Nations General Assembly.

Changes Made by This Rule

    Consistent with the foreign policy and national security concerns 
detailed above, in this rule, BIS is making four sets of changes to the 
EAR that will subject Nicaragua to more stringent export, reexport, and 
transfer (in-country) controls involving items that are subject to the 
EAR. First, BIS is adding Nicaragua to Country Group D:5 (U.S. Arms 
Embargoed Countries) in supplement no. 1 to part 740 of the EAR. This 
amendment is made to conform with the State Department's amendment that 
added the country to Sec.  126.1 (Prohibited exports, imports, and 
sales to or from certain countries) under paragraph (p). March 15, 
2024.
    Second, BIS is moving Nicaragua from Country Group B to Country 
Group D:1 (see supp. no. 1 to part 740), a grouping of countries that 
raise national security concerns.
    Third, Nicaragua is being added to the countries subject to a 
stringent licensing policy set forth in Sec.  742.4 (national security 
controls) in connection with the risk of diversion to defined military 
end uses and end users. Finally, this rule makes the country subject to 
the `military end use' and `military end user' restrictions in Sec.  
744.21.
    Existing licensing requirements and related review policies not 
revised by this rule continue to apply to items subject to the EAR that 
are destined for Nicaragua. For example, items controlled for reasons 
identified in supplement no. 1 to part 738 (Commerce Country Chart) by 
``Xs'' in Columns CB1, CB2, NP1, NS1, NS2, MT1, RS1, RS2, FC1, CC1 and 
CC3 remain subject to the existing controls under the EAR. In 
particular, BIS will continue to review for national security and 
foreign policy (including human rights) concerns items controlled for 
regional stability to Nicaragua as set forth in the ``RS1'' column on 
the Commerce Country Chart (see Sec.  742.6(b)(1)(i)). It will also 
continue to review items controlled for Crime Control reasons pursuant 
to the human rights-related standard set forth in Sec.  742.7(b)(1). 
Additionally, pursuant to Sec.  742.7(b)(2), BIS will continue to 
review items destined for Nicaragua that are controlled for all reasons 
apart from short supply under the human rights-related standard set 
forth in paragraph (b)(1).

Impact of the EAR Amendments

Country Group Related Changes

Country Group D:5
    As a result of its placement in Country Group D:5, Nicaragua will 
be subject to additional restrictions in the EAR, including on de 
minimis U.S. content, license exception availability, and licensing 
policy for certain items. For example, license applications for the 
export or reexport of items classified under 9x515 or ``600 series'' 
Export Control Classification Numbers (ECCNs) to countries in Country 
Group D:5 are reviewed consistent with the policies in Sec.  126.1 of 
the ITAR, as provided in paragraph (b)(1)(ii) of Sec.  742.4 of the 
EAR.
    This rule also removes a reference to an outdated State Department 
website that is currently listed in the footnote to Country Group D:5 
(Note to Country Group D:5). As amended, the note directs the public to 
Sec.  126.1 of the ITAR and to Federal Register notices regarding U.S. 
arms embargoes.
Country Group D:1
    As a result of its placement in Country Group D:1, Nicaragua will 
be subject to more restrictive treatment under certain part 744 end use 
controls (see, e.g., Sec.  744.3(a) (restrictions on exports, 
reexports, or in-country transfers of certain rocket systems and 
unmanned aerial vehicles). Additionally, pursuant to Sec.  744.7, 
restrictions on certain exports and reexports to vessels and aircraft 
located in Nicaraguan ports or registered in Nicaragua will apply. The 
restrictions on the export, reexport, and transfer (in-country) of 
certain microprocessors and associated software and technology for 
defined military end uses and end users in Country Group D:1 pursuant 
to Sec.  744.17 will now apply to Nicaragua. Additionally, consistent 
with its placement in Country Group D:1, Nicaragua will be subject to 
two foreign direct product (FDP) rules set forth in Sec.  734.9 that 
apply to exports from abroad, reexports, and transfers (in-country) of 
foreign-produced direct products of U.S.-origin technology and 
software, specifically, a National Security FDP rule and a `600 series' 
FDP rule. See Sec.  734.9(b)(2) and (d)(2).
    Removing Nicaragua from Country Group B and placing it in Country 
Group D:1 also makes certain license exceptions unavailable. The 
license exceptions made unavailable in full are: Shipments of limited 
value (LVS) (Sec.  740.3); License Exception Shipments to Country Group 
B countries (GBS) (Sec.  740.4); and Technology and software under 
restriction (TSR) (Sec.  740.6). Certain provisions in additional 
license exceptions that are available to Country Group B countries are 
restricted to Country Group D:1.

Restrictive National Security-Related Review Policy

    As a result of this rule, a restrictive licensing policy will apply 
to license applications involving the export, reexport, and transfer 
(in-country) to Nicaragua of items listed on the CCL and controlled for 
national security reasons (NS items). Specifically, such applications 
will now be subject to the licensing policy in Sec.  742.4(b)(7), which 
specifies that applications involving NS items will be reviewed to 
determine whether there is a risk of diversion to a defined military 
end use or end user (see Sec.  744.21(f) and (g)). Applications 
determined to be for civil end users or for civil end uses will be 
subject to a general policy of approval. Applications to export, 
reexport, or transfer (in-country) items that would make a material 
contribution to the ``development,'' ``production,'' maintenance, 
repair, or operation of weapons systems, subsystems, and assemblies, 
such as those described in supplement no. 7 to part 742 (major weapons 
systems) will be subject to a presumption of denial.

New Military End Use and Military End User Controls

    Finally, this rule adds Nicaragua to the countries that are subject 
to the `military end use' and `military end user' restrictions set 
forth in Sec.  744.21. As amended by this rule, pursuant to Sec.  
744.21(a)(1), a license is required for the export, reexport, or 
transfer (in-country) of any item subject to the EAR that is listed in 
supplement no. 2 to part 744 to Burma, Cambodia, the People's Republic 
of China, Venezuela, or Nicaragua if there is ``knowledge'' (see Sec.  
772.1 of the EAR) that such item is intended, entirely or in part, for 
a `military end use' or ``military end user' as defined in Sec.  
744.21(f) or (g), respectively. As a conforming change, this rule adds 
a country heading for Nicaragua in supplement no. 7 to part 744 
(`Military End-User' (MEU) List) but does not add any entities to the 
MEU List under this new country heading.

[[Page 18782]]

Saving 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 an exporting carrier, or en route 
aboard a carrier to a port of export, on March 15, 2024, 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 April 15, 
2024. Any such items not actually exported, reexported or transferred 
in-country) before midnight, on April 15, 2024, require a license in 
accordance with this final rule.

Export Administration Regulations

    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.

Rulemaking Requirements

    1. This final rule has been determined to be significant under 
Executive Order 12866.
    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, 
Simple Network Application Process and Multipurpose Application Form. 
This collection includes, among other things, license applications, and 
carries a burden estimate of 29.4 minutes for a manual or electronic 
submission for a total burden estimate of 36,689 hours. BIS expects an 
increase of 588 burden hours for this collection. This collection is 
currently under a 60-day Federal Register notice for public comment (88 
FR 85586) published on December 8, 2023. These additional burden hours 
will be added during this renewal process.
    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, 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. Because neither 
the Administrative Procedure Act nor any other law requires that notice 
of proposed rulemaking and an opportunity for public comment be given 
for this rule, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, 
no Final Regulatory Flexibility Analysis is required and none was 
prepared.

List of Subjects

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reexports and recordkeeping requirements, Terrorism.

    Accordingly, the Export Administration Regulations (15 CFR parts 
740, 742, and 744) are amended as follows:

PART 740--LICENSE EXCEPTIONS

0
1. 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
2. Supplement no. 1 to part 740 is amended by:
0
a. In the Country Group B table, removing ``Nicaragua''; and
0
b. In the Country Group D table, adding an entry for ``Nicaragua'' in 
alphabetical order and revising footnote 1 to the table.
    The addition and revision read as follows:

Supplement No. 1 to Part 740--Country Groups

* * * * *

                                                                     Country Group D
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           [D: 5] U.S.
                              Country                                [D: 1] National   [D: 2] Nuclear  [D: 3] Chemical   [D: 4] Missile   arms embargoed
                                                                         security                        & biological      technology     countries \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Nicaragua..........................................................               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 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.

* * * * *

[[Page 18783]]

PART 742--CONTROL POLICY--CCL BASED CONTROLS

0
3. The authority citation for part 742 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. 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 8, 2022, 87 FR 68015 (November 10, 
2022).


0
4. Amend Sec.  742.4 by revising the first sentence of paragraph 
(b)(7)(i) to read as follows:


Sec.  742.4   National security.

* * * * *
    (b) * * *
    (7)(i) For Burma, Cambodia, the People's Republic of China (PRC), 
Nicaragua, and Venezuela, all applications will be reviewed to 
determine the risk of diversion to a military end user or military end 
use. * * *
* * * * *

PART 744--CONTROL POLICY: END-USER AND END-USE BASED

0
5. The authority citation for part 744 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. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice 
of September 7, 2023, 88 FR 62439 (September 11, 2023).


0
6. Amend Sec.  744.21 by revising paragraphs (a), (b) introductory 
text, (b)(1), and (e)(3) to read as follows:


Sec.  744.21   Restrictions on certain `military end uses' or `military 
end users'.

    (a) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL) (supplement no. 
1 to part 774 of the EAR), you may not export, reexport, or transfer 
(in-country):
    (1) Any item subject to the EAR listed in supplement no. 2 to this 
part without a license if, at the time of the export, reexport, or 
transfer (in-country), you have ``knowledge,'' as defined in Sec.  
772.1 of the EAR, that the item is intended, entirely or in part, for a 
`military end use,' as defined in paragraph (f) of this section, in 
Burma, Cambodia, the People's Republic of China (China), Nicaragua, or 
Venezuela, or a Burmese, Cambodian, Chinese, Nicaraguan, or Venezuelan 
`military end user,' as defined in paragraph (g) of this section, 
wherever located. `Military end users' located outside of Burma, 
Cambodia, China, Nicaragua, or Venezuela are limited to entities 
identified on the `Military End-User' (MEU) List under supplement no. 7 
to this part.
    (2) Any item subject to the EAR without a license if, at the time 
of the export, reexport, or transfer (in-country), you have 
``knowledge,'' as defined in Sec.  772.1 of the EAR that the item is 
intended, entirely or in part, for a `military end use,' as defined in 
paragraph (f) of this section, in Belarus or Russia, or a Belarusian or 
Russian `military end user,' as defined in paragraph (g) of this 
section, wherever located. Belarusian or Russian `military end users' 
located outside of Belarus or Russia are limited to entities identified 
on the Entity List under supplement no. 4 to this part with a footnote 
3 designation.

    Note 1 to paragraphs (a)(1) and (2): An entity anywhere in the 
world, including in Burma, Cambodia, China, Nicaragua, or Venezuela, 
may be listed on the Entity List as a Belarusian or Russian 
`military end user' with a footnote 3 designation. If the entity is 
not a Belarusian or Russian `military end user,' but has otherwise 
been identified by the End User Review Committee (ERC) as a 
`military end user,' that entity may be identified under the 
`Military End-User' (MEU) List under supplement no. 7 to this part. 
As noted in paragraph (a)(1) of this section, exporters, 
reexporters, and transferors, even in the absence of any such 
notification, are not excused from compliance with the license 
requirements of this paragraph (a) for all entities in Burma, 
Cambodia, China, Nicaragua, or Venezuela to determine whether the 
entity is a `military end user' for purposes of paragraph (g) of 
this section because supplement no. 7 is not an exhaustive listing 
of `military end users' in those countries. As noted in paragraph 
(a)(2) of this section, exporters, reexporters, and transferors, 
even in the absence of any such notification, are not excused from 
compliance with the license requirements of this paragraph (a) for 
all entities in Belarus or Russia to determine whether the entity is 
a `military end user' for purposes of paragraph (g) of this section 
because supplement no. 4 under this part is not an exhaustive 
listing of `military end users' in those countries.

    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate 
notification published in the Federal Register, that a license is 
required for specific exports, reexports, or transfers (in-country) of 
any item because there is an unacceptable risk of use in or diversion 
to a `military end use' in Belarus, Burma, Cambodia, China, Nicaragua, 
the Russian Federation, or Venezuela, or for a Belarusian, Burmese, 
Cambodian, Chinese, Nicaraguan, Russian, or Venezuelan `military end 
user,' wherever located. Specific notice will be given only by, or at 
the direction of, the Deputy Assistant Secretary for Export 
Administration. When such notice is provided orally, it will be 
followed by written notice within two working days signed by the Deputy 
Assistant Secretary for Export Administration or the Deputy Assistant 
Secretary's designee. The absence of BIS notification does not excuse 
the exporter from compliance with the license requirements of paragraph 
(a) of this section.
    (1) `Military End-User' (MEU) List. BIS may inform and provide 
notice to the public that certain entities are subject to the 
additional prohibition described under this paragraph (b) following a 
determination by the End-User Review Committee (ERC) that a specific 
entity is a `military end user' pursuant to this section and therefore 
any exports, reexports, or transfers (in-country) to that entity 
represent an unacceptable risk of use in or diversion to a `military 
end use' in Belarus, Burma, Cambodia, China, Nicaragua, the Russian 
Federation, or Venezuela, or for a Belarusian, Burmese, Cambodian, 
Chinese, Nicaraguan, Russian, or Venezuelan `military end user,' 
wherever located. Such Burmese, Cambodian, Chinese, Nicaraguan, or 
Venezuelan `military end users' may be added to supplement no. 7 to 
this part (MEU List). Such Belarusian or Russian `military end users' 
may also be added to supplement no. 4 to this part (Entity List) and 
will be listed with a footnote 3 designation. License requirements for 
listed MEU are described in paragraph (b)(1)(ii) of this section. The 
listing of entities under supplement no. 7 or 4 to this part is not an 
exhaustive listing of `military end users' for purposes of this 
section, except for `military end users' of a country identified in 
this section (Belarus, Burma, Cambodia, China, Nicaragua, the Russian 
Federation, or Venezuela) not located in that same country. As 
specified in paragraphs (a)(1) and (2) of this section, `military

[[Page 18784]]

end users' of a country identified in this section not located in that 
same country are exhaustively listed on either the Entity List with a 
footnote 3 designation or on the MEU List under supplement no. 7 this 
part. Exporters, reexporters, and transferors are responsible for 
determining whether transactions with entities not listed on supplement 
no. 7 or 4 to this part are subject to a license requirement under 
paragraph (a) of this section. The process in this paragraph (b)(1) for 
placing entities on the MEU List and Entity List is only one method BIS 
may use to inform exporters, reexporters, and transferors of license 
requirements under this section.
    (i) End-User Review Committee (ERC). The End-User Review Committee 
(ERC), composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, where appropriate, the Treasury, 
makes all decisions regarding additions to, removals from, or other 
modifications to the MEU List and Entity List. Decisions by the ERC for 
purposes of the MEU List and Entity List will be made following the 
procedures identified in this section and in supplement no. 5 to this 
part (Procedures for End-User Review Committee Entity List and 
`Military End User' (MEU) List Decisions).
    (ii) License requirement for parties to the transaction. Consistent 
with paragraph (a) of this section, a license is required for the 
export, reexport, or transfer (in-country) of any item subject to the 
EAR listed in supplement no. 2 to this part when an entity that is 
listed on the MEU List as a Burmese, Cambodian, Chinese, Nicaraguan, or 
Venezuelan `military end user' is a party to the transaction as 
described in Sec.  748.5(c) through (f) of the EAR. Consistent with 
paragraph (a) of this section, a license is required for the export, 
reexport, or transfer (in-country) of any item subject to the EAR when 
a Belarusian or Russian `military end user' that is listed on the 
Entity List pursuant to this section is a party to the transaction as 
described in Sec.  748.5(c) through (f) of the EAR.
* * * * *
    (e) * * *
    (3) Applications for items requiring a license for any reason that 
are destined for a `military end use' in Belarus, Burma, Cambodia, 
China, Nicaragua, the Russian Federation, or Venezuela or for a 
Belarusian, Burmese, Cambodian, Chinese, Nicaraguan, Russian, or 
Venezuelan `military end user,' wherever located, also will be subject 
to the review policy stated in paragraph (e)(1) of this section.
* * * * *

0
7. Supplement no. 7 to part 744 is amended in the table by adding in 
alphabetical order an entry for ``Nicaragua'' to read as follows:

Supplement No. 7 to Part 744--`Military End-User' (Meu) List

* * * * *

------------------------------------------------------------------------
                                                       Federal Register
             Country                    Entity             citation
------------------------------------------------------------------------
 
                                * * * * *
NICARAGUA.......................  [Reserved]........  [Reserved].
 
                                * * * * *
------------------------------------------------------------------------


Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-05696 Filed 3-14-24; 8:45 am]
BILLING CODE 3510-33-P