Conforming and Clarifying Changes to the Export Administration Regulations (EAR), 40369-40372 [2024-10280]
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40369
Rules and Regulations
Federal Register
Vol. 89, No. 92
Friday, May 10, 2024
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 Parts 734, 738, 740, and 758
[Docket No. 240506–0127]
RIN 0694–AJ65
Conforming and Clarifying Changes to
the Export Administration Regulations
(EAR)
Bureau of Industry and
Security, Department of Commerce.
ACTION: Final rule.
AGENCY:
This final rule makes
conforming and clarifying changes to
the Export Administration Regulations
(EAR). These changes include making
conforming changes to the EAR to
ensure that destination names reflect the
current destination names that are
recognized by the United States
Government, clarifying the removal of
certain license requirements for exports,
reexports, and transfers (in-country) to
and within Australia and the United
Kingdom, making a conforming change
to reflect that Cyprus is no longer a
Country Group D:5 country, and
clarifying how Russia and the Russian
Federation are referenced for
consistency with the designation of
Russia as a U.S. Arms Embargoed
destinations.
SUMMARY:
DATES:
This rule is effective May 30,
2024.
For
questions on this rule, contact Philip
Johnson at RPD2@bis.doc.gov or (202)
482–2440.
SUPPLEMENTARY INFORMATION:
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FOR FURTHER INFORMATION CONTACT:
I. Background
BIS is amending the EAR (15 CFR
parts 730–774) by making conforming
changes to the EAR to ensure that
destination names reflect the current
destination names that are recognized
by the United States Government, by
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making conforming changes to ensure
that the EAR reflects amendments and
description of those amendments made
pursuant to two recent rules, by making
a conforming change to reflect that
Cyprus is no longer a Country Group
D:5 country, and by clarifying how
Russia and the Russian Federation are
referenced in the EAR to ensure
consistency with the designation of
Russia as a U.S. Arms Embargoed
destination.
The four sets of changes this final rule
makes are described in section II as
follows:
A. Conforming changes to the
Commerce Country Chart and Country
Groups to ensure consistency with
destinations names that are recognized
by the United States Government;
B. Conforming changes to the
Commerce Country Chart entries for
Australia and the United Kingdom;
C. Conforming change to reflect
Cyprus is no longer a Country Group
D:5 country; and
D. Removing obsolete references to
Russia and the Russian Federation in
provisions that predate the country’s
addition to Country Group D:5.
II. Regulatory Changes
A. Conforming Changes to the
Commerce Country Chart and Country
Groups To Ensure Consistency With
Destination Names That Are Recognized
by the United States Government
This final rule in supplement no. 1 to
part 738 (Commerce Country Chart)
removes Swaziland from the Commerce
Country Chart and replaces it, in
alphabetical order, with Eswatini. On
April 19, 2018, King Mswati III declared
that the country be known as the
Kingdom of Eswatini, rather than the
Kingdom of Swaziland. BIS makes this
change to conform to King Mswati III’s
declaration, as subsequently formally
recognized by the State Department (see
https://www.state.gov/countries-areas/
eswatini/). This final rule also removes
Macedonia (The Former Yugoslav
Republic of) from the Commerce
Country Chart and replaces it, in
alphabetical order, with North
Macedonia. BIS makes this change to
the conform to the State Department’s
formal recognition of the new name in
February 2019 (see https://history.
state.gov/countries/macedonia). Lastly,
this final rule removes Turkey from the
Commerce Country Chart and replaces
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it, in alphabetical order, with Tu¨rkiye.
BIS makes this change to conform to the
State Department’s recognition on
January 9, 2023 of the new country’s
new name (see https://www.state.gov/
countries-areas/turkey/). This rule
revises only the names of the three
countries; the information set forth in
each of the three entries otherwise
remains the same.
As a conforming change to the
changes made to the Commerce Country
Chart described above, this final rule
removes Swaziland from Country Group
B in supplement no. 1 to part 740,
Country Groups), and replaces it (in
alphabetical order) with Eswatini.
Similarly, this rule removes Macedonia
(the Former Yugoslav Republic of) from
Country Group B and replaces it, in
alphabetical order, with North
Macedonia.
B. Conforming Changes to Commerce
Country Chart Entries for Australia and
the United Kingdom
This final rule also revises the
Commerce Country Chart entries for
Australia and the United Kingdom in
supplement no. 1 to part 738 to align
with the policy decisions and regulatory
changes described and implemented in
the August 19, 2024 interim final rule,
‘‘Export Control Revisions for Australia,
United Kingdom, United States
(AUKUS) Enhanced Trilateral Security
Partnership’’ (89 FR 28594, published
and effective on April 19, 2024) (April
19 IFR). Specifically, the April 19 IFR
removed the license requirements for
national security column 1 (NS1),
regional stability column 1 (RS1), and
missile technology column 1 (MT1)
reasons for control for these two
countries, as well as the footnote 3
designations for both of these countries,
because the license requirements
referenced in footnote 3 were no longer
applicable.
This rule corrects inadvertent errors
in which a subsequent interim final
rule, ‘‘Revisions of Firearms License
Requirements’’ (89 FR 34680, published
on April 30, 2024, and effective on May
30, 2024) (April 30 IFR), erroneously
included an ‘‘X’’ under the NS1, RS1,
and MT1 reasons for control for
Australia and the United Kingdom and
also erroneously included the
previously-applicable footnote 3
designation for these two countries.
This final rule revises the entries for
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Federal Register / Vol. 89, No. 92 / Friday, May 10, 2024 / Rules and Regulations
Australia and the United Kingdom by
removing the license requirement for
NS1, RS1, and MT1, as well as the
footnote 3 designation, for consistency
with the intended regulatory changes
described in the April 19 IFR.
The changes in this final rule
described under this section II.B are
limited to removing text (as described
above) that inadvertently appeared in
the two Commerce Country Chart
entries. The April 30 IFR correctly
removed the footnote 9 designation for
Australia and the United Kingdom. The
April 30 IFR addressed the license
requirement described in footnote 9 for
these two destinations by adding an ‘‘X’’
in the crime control column 2 (CC2)
reason for control for these two
countries.
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C. Conforming Change to Reflect the
Fact That Cyprus is No Longer a
Country Group D:5 Country
The U.S. State Department recently
amended § 126.1 of the International
Traffic in Arms Regulations (ITAR) (22
CFR parts 120 through 130) to specify
that Cyprus’s status as a proscribed
destination is suspended from October
1, 2023 through September 30, 2024 (see
88 FR 63016). Consistent with this
change, Cyprus was effectively removed
from Country Group D:5. As set forth in
the Note to Country Group D:5 in
supplement no. 1 to part 740 of the
EAR, if there are any discrepancies
between the list of D:5 countries and the
countries identified by the Department
of State as subject to a U.S. arms
embargo, the State Department’s list
shall be controlling. To avoid confusion
on the part of exporters, reexporters,
and transferors, this final rule removes
Cyprus from D:5. D:5 was the only ‘‘X’’
in the entry for Cyprus under Country
Group D, so the entry is no longer
needed.
D. Removing, for Clarity, References to
Russia and the Russian Federation for
Provisions That Also extend to Country
Group D:5
The final rule, ‘‘Implementation of
Sanctions Against Russia Under the
Export Administration Regulations
(EAR)’’ (87 FR 12226, published March
3, 2022, and effective February 24,
2022), included amendments to
supplement no. 1 to part 740 (Country
Groups) of the EAR consistent with the
ITAR § 126.1. The March 3 final rule
updated the Country Group designation
for Russia in supplement no. 1 to part
740 to reflect its identification by the
Department of State as a country subject
to a United States arms embargo. As
noted above, BIS harmonizes the arms
embargo-related provisions in the EAR
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with the Directorate of Defense Trade
Control’s (DDTC’s) regulation of arms
embargoes in § 126.1 of the ITAR. Three
sections of the EAR, which predated the
March 18, 2021 (see 86 FR 14802)
addition of Russia to § 126.1 under the
ITAR, continued to separately identify
Russia or the Russian Federation from
Country Group D:5. These references are
unnecessary due to the fact that Russia
was subsequently added to Country
Group D:5. Specifically, this final rule
revises § 734.18(a)(5)(iv); § 740.9(a)
introductory text (the fourth and
seventh sentences) and paragraph
(b)(5)(ii); and § 758.10, Note 1 to
paragraph (b)(1), by removing references
to Russia or the Russian Federation
when the same sentence also refers to
Country Group D:5. In the case of
§ 740.9(b)(5)(ii), the broader exclusion
under paragraph (b)(5)(i) means the
narrow exclusion under (b)(5)(ii) should
not include Russia, which is subject to
the broader exclusion as a Country
Group D:5 country.
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 ECRA
(50 U.S.C. 4821), 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. Additionally,
this rule is exempt from the ordinary
rulemaking requirements of the APA
pursuant to 5 U.S.C. 553(a)(1) as a
military or foreign affairs function of the
United States Government.
5. Because neither the APA 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 has been prepared.
Export Control Reform Act of 2018
List of Subjects
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, as
amended, provides the legal basis for
BIS’s principal authorities and serves as
the authority under which BIS issues
this rule.
15 CFR Part 734
Administrative practice and
procedure, Exports, Inventions and
patents, Research, Science and
technology.
Rulemaking Requirements
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
1. BIS has examined the impact of this
rule as required by Executive Orders
12866, 13563, and 14094. Pursuant to
E.O. 12866, as amended by E.O. 14094,
this final rule has not been determined
to be a ‘‘significant regulatory action.’’
2. Notwithstanding any other
provision of law, no person is 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 an information collection
approved by OMB under control
number 0694–0088, Simplified Network
Application Processing System. BIS
does not anticipate a change to the
burden hours associated with this
collection as a result of this rule.
Information regarding the collection,
including all supporting materials, can
be accessed at https://www.reginfo.gov/
public/do/PRAMain.
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15 CFR Part 738
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 758
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Exports, Reporting and recordkeeping
requirements.
Accordingly, parts 734, 738, 740, and
758 of the Export Administration
Regulations (15 CFR parts 730–774) are
amended as follows:
PART 734—SCOPE OF THE EXPORT
ADMINISTRATION REGULATIONS
1. The authority citation for 15 CFR
part 734 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.; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996
Comp., p. 219; E.O. 13026, 61 FR 58767, 3
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13637, 78 FR 16129, 3 CFR, 2014 Comp., p.
223; Notice of November 1, 2023, 88 FR
75475 (November 3, 2023).
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■
2. Section 734.18(a)(5) is amended by
revising paragraph (a)(5)(iv) to read as
follows:
PART 738—COMMERCE CONTROL
LIST OVERVIEW AND THE COUNTRY
CHART
§ 734.18 Activities that are not exports,
reexports, or transfers.
■
(a) * * *
(5) * * *
(iv) Not intentionally stored in a
country listed in Country Group D:5 (see
supplement no. 1 to part 740 of the
EAR).
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.
8720; 10 U.S.C. 8730(e); 22 U.S.C. 287c; 22
U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22
U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824;
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.
3. The authority citation for 15 CFR
part 738 continues to read as follows:
Note 1 to paragraph (a)(5)(iv): Data intransit via the internet is not deemed to be
stored.
*
*
*
*
c. Removing the entries for
‘‘Macedonia (The Former Yugoslav
Republic of)’’;
■ d. Adding an entry for ‘‘North
Macedonia’’ in alphabetical order;
■ e. Removing the entry for
‘‘Swaziland’’;
■ f. Removing the entry for ‘‘Turkey’’;
and
¨ rkiye’’ in
■ g. Adding an entry for ‘‘Tu
alphabetical order.
■ h. Revising the entry for the ‘‘United
Kingdom’’;
The additions and revisions read as
follows:
■
4. Supplement no. 1 to part 738 is
amended by:
■ a. Revising the entry for ‘‘Australia’’;
■ b. Adding an entry for ‘‘Eswatini’’ in
alphabetical order;
■
*
*
*
CB 2
CB 3
NP 1
NP 2
NS 1
NS 2
MT 1
RS 1
RS 2
FC 1
CC
1
CC
2
*
Australia .........................
X
*
..........
..........
..........
*
..........
..........
*
..........
................
*
..........
..........
*
....................
........
X
*
Eswatini .........................
X
X
..........
X
*
..........
X
*
X
X
*
X
X
*
....................
X
X
*
North Macedonia ...........
X
X
..........
X
*
..........
X
*
X
X
*
X
X
*
....................
X
X
*
Tu¨rkiye ...........................
X
*
..........
..........
..........
*
..........
X
*
..........
X
*
X
..........
*
....................
........
X
*
United Kingdom .............
X
*
..........
..........
..........
*
..........
..........
*
..........
................
*
..........
..........
*
....................
........
X
*
*
*
*
*
*
*
*
PART 740—LICENSE EXCEPTIONS
5. The authority citation for 15 CFR
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.
6. Section 740.9 is amended by:
a. Removing ‘‘Russia,’’ in the fourth
and seventh sentences of paragraph (a)
■
■
*
Firearms
convention
*
CB 1
*
Regional
stability
*
Nuclear nonproliferation
*
Missile
tech
*
Chemical & biological
weapons
Countries
National
security
Supplement No. 1 to Part 738—
Commerce Country Chart
*
introductory text wherever it appears;
and
■ b. Removing ‘‘Russia,’’ in paragraph
(b)(5)(ii) wherever it appears.
■ 7. Supplement no. 1 to part 740 is
amended by:
■ a. In the ‘‘Country Group A’’ and
‘‘Country Group B’’ tables, removing the
entry for ‘‘Turkey’’ and adding an entry
for ‘‘Tu¨rkiye’’ in alphabetical order;
■ b. In the ‘‘Country Group B’’ table:
■ i. Adding an entry for ‘‘Eswatini’’ in
alphabetical order;
Crime control
CC
3
Antiterrorism
AT 1
AT 2
*
*
X
*
X
*
*
*
*
i. Removing the entry for ‘‘Macedonia,
The Former Yugoslav Republic of’’, and
adding an entry for ‘‘North Macedonia’’
in alphabetical order;
■ ii. Removing the entry for
‘‘Swaziland’’; and
■ c. In the ‘‘Country Group D’’ table,
removing the entry for Cyprus.
The additions and revisions read as
follows:
■
Supplement No. 1 to Part 740—
Commerce Country Chart
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COUNTRY GROUP A
Country
[A:1]
Wassenaar
participating
states 1
[A:2]
Missile
technology
control
regime 2
*
*
*
Tu¨rkiye .......................................................................................................
*
X
X
*
*
*
*
*
[A:4]
Nuclear
suppliers
group 3
[A:3]
Australia
group
[A:5]
*
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), Russia, and Belarus.
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*
X
*
[A:6]
40372
*
Federal Register / Vol. 89, No. 92 / Friday, May 10, 2024 / Rules and Regulations
*
*
*
§§ 303.11 and 303.12
*
Country Group B—Countries
*
*
*
*
*
*
*
*
Eswatini
*
*
North Macedonia
*
*
*
*
*
*
*
*
Dated: May 6, 2024.
James Olin,
FOIA and Privacy Officer.
Tu¨rkiye
*
*
[FR Doc. 2024–10181 Filed 5–9–24; 8:45 am]
PART 758—EXPORT CLEARANCE
REQUIREMENTS AND AUTHORITIES
BILLING CODE 6051–01–P
8. The authority citation for 15 CFR
part 758 continues to read as follows:
DEPARTMENT OF THE TREASURY
■
Authority: 50 U.S.C. 4801–4852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
9. Section 758.10 is amended by
removing ‘‘Russia,’’ in Note 1 to
paragraph (b)(1) wherever it appears.
■
PEACE CORPS
22 CFR Part 303
RIN 0420–AA31
Procedures for Disclosure of
Information Under the Freedom of
Information Act; Correction
The Peace Corps.
Final rule; correction.
AGENCY:
The Peace Corps is correcting
a final rule that appeared in the Federal
Register on April 11, 2024. This final
rule amends the regulations that the
Peace Corps follows in processing
requests under the Freedom of
Information Act (FOIA) to comply with
the FOIA Improvement Act of 2016.
These amendments clarify and update
procedures for requesting information
from the Peace Corps and procedures
that the Peace Corps follows in
responding to requests from the public
for information.
DATES: Effective May 13, 2024.
FOR FURTHER INFORMATION CONTACT:
David van Hoogstraten, 202–692–2150,
policy@peacecorps.gov.
SUPPLEMENTARY INFORMATION: In FR Doc.
2024–06800, appearing on page 25519
in the Federal Register on Thursday,
April 11, 2024, the following corrections
are made:
SUMMARY:
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31 CFR Part 501
Reporting, Procedures and Penalties
Regulations
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is issuing this interim
final rule to amend the Reporting,
Procedures and Penalties Regulations
(the ‘‘Regulations’’), to require
electronic filing of certain submissions
to OFAC and to describe and modify
certain reporting requirements related to
blocked property and rejected
transactions. In particular, the rule
would require use of the electronic
OFAC Reporting System for submission
of reports related to blocked property
and rejected transactions, remove the
mail option for certain other types of
OFAC submissions, describe reports
OFAC may require from financial
institutions for transactions that meet
specified criteria, and add a reporting
requirement for any blocked property
that is unblocked or transferred.
Additionally, OFAC is clarifying the
scope of the reporting requirement for
rejected transactions, in part to respond
to comments received on the interim
final rule OFAC published on June 21,
2019 to amend the Regulations. Further,
OFAC is modifying the procedures for
requests relating to property that is
blocked in error and updating the
Regulations with respect to the
availability of information under the
Freedom of Information Act (FOIA) for
certain categories of records. OFAC is
also clarifying that persons may submit
a petition for administrative
reconsideration to seek removal of a
person or property from the List of
SUMMARY:
BILLING CODE 3510–33–P
ACTION:
Office of Foreign Assets Control
Office of Foreign Assets
Control, Treasury.
ACTION: Interim final rule; request for
comments.
[FR Doc. 2024–10280 Filed 5–8–24; 11:15 am]
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Specially Designated Nationals and
Blocked Persons or any other list of
sanctioned persons maintained by
OFAC. OFAC is also adding a
description of reports OFAC may
require financial institutions to provide
about transactions that meet specified
criteria to aid in the identification of
blocked property. Finally, OFAC is
making several technical and
conforming edits. OFAC is soliciting
public comments for 30 days on this
interim final rule.
This interim final rule is
effective August 8, 2024. Written
comments may be submitted on or
before June 10, 2024.
DATES:
AGENCY:
Thea D. Rozman Kendler,
Assistant Secretary for Export
Administration.
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[Corrected]
1. On page 25525, in the third column,
in part 303, in amendment 12, the
instruction ‘‘Redesignate §§ 303.11 and
303.12 as §§ 303.13 and 303.14,
respectively’’ is corrected to read
‘‘Redesignate §§ 303.11 and 303.12 as
§§ 303.12 and 303.13, respectively.’’
■
Sfmt 4700
You may submit comments
via the following methods, electronic is
preferred:
Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions on the website for
submitting comments. Refer to Docket
Number OFAC–2024–0002.
Mail: Office of Foreign Assets Control,
U.S. Department of the Treasury,
Treasury Annex/Freedman’s Bank
Building, 1500 Pennsylvania Avenue
NW, Washington, DC 20220. Refer to
Docket Number OFAC–2024–0002.
Instructions: All submissions received
must include the agency name and the
Federal Register Doc. number that
appears at the end of this document. All
comments, including attachments and
other supporting materials, will become
part of the public record and subject to
public disclosure. Sensitive personal
information, such as account numbers
or Social Security numbers, should not
be included. Comments generally will
not be edited to remove any identifying
or contact information.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Licensing, 202–
622–2480; Assistant Director for
Regulatory Affairs, 202–622–4855;
Assistant Director for Compliance, 202–
622–2490.
SUPPLEMENTARY INFORMATION:
Background
The Regulations (31 CFR part 501),
originally issued August 25, 1997 (62 FR
45098), set forth standard reporting and
recordkeeping requirements, license
application procedures, and other
procedures relevant to the economic
sanctions programs administered by
OFAC. As described further below,
OFAC is providing updates within nine
sections of the Regulations: §§ 501.602,
501.603, 501.604, 501.605, 501.801,
501.804, 501.805, 501.806, and 501.807.
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[Federal Register Volume 89, Number 92 (Friday, May 10, 2024)]
[Rules and Regulations]
[Pages 40369-40372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10280]
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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
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The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 89, No. 92 / Friday, May 10, 2024 / Rules and
Regulations
[[Page 40369]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, and 758
[Docket No. 240506-0127]
RIN 0694-AJ65
Conforming and Clarifying Changes to the Export Administration
Regulations (EAR)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: This final rule makes conforming and clarifying changes to the
Export Administration Regulations (EAR). These changes include making
conforming changes to the EAR to ensure that destination names reflect
the current destination names that are recognized by the United States
Government, clarifying the removal of certain license requirements for
exports, reexports, and transfers (in-country) to and within Australia
and the United Kingdom, making a conforming change to reflect that
Cyprus is no longer a Country Group D:5 country, and clarifying how
Russia and the Russian Federation are referenced for consistency with
the designation of Russia as a U.S. Arms Embargoed destinations.
DATES: This rule is effective May 30, 2024.
FOR FURTHER INFORMATION CONTACT: For questions on this rule, contact
Philip Johnson at [email protected] or (202) 482-2440.
SUPPLEMENTARY INFORMATION:
I. Background
BIS is amending the EAR (15 CFR parts 730-774) by making conforming
changes to the EAR to ensure that destination names reflect the current
destination names that are recognized by the United States Government,
by making conforming changes to ensure that the EAR reflects amendments
and description of those amendments made pursuant to two recent rules,
by making a conforming change to reflect that Cyprus is no longer a
Country Group D:5 country, and by clarifying how Russia and the Russian
Federation are referenced in the EAR to ensure consistency with the
designation of Russia as a U.S. Arms Embargoed destination.
The four sets of changes this final rule makes are described in
section II as follows:
A. Conforming changes to the Commerce Country Chart and Country
Groups to ensure consistency with destinations names that are
recognized by the United States Government;
B. Conforming changes to the Commerce Country Chart entries for
Australia and the United Kingdom;
C. Conforming change to reflect Cyprus is no longer a Country Group
D:5 country; and
D. Removing obsolete references to Russia and the Russian
Federation in provisions that predate the country's addition to Country
Group D:5.
II. Regulatory Changes
A. Conforming Changes to the Commerce Country Chart and Country Groups
To Ensure Consistency With Destination Names That Are Recognized by the
United States Government
This final rule in supplement no. 1 to part 738 (Commerce Country
Chart) removes Swaziland from the Commerce Country Chart and replaces
it, in alphabetical order, with Eswatini. On April 19, 2018, King
Mswati III declared that the country be known as the Kingdom of
Eswatini, rather than the Kingdom of Swaziland. BIS makes this change
to conform to King Mswati III's declaration, as subsequently formally
recognized by the State Department (see https://www.state.gov/countries-areas/eswatini/). This final rule also removes Macedonia (The
Former Yugoslav Republic of) from the Commerce Country Chart and
replaces it, in alphabetical order, with North Macedonia. BIS makes
this change to the conform to the State Department's formal recognition
of the new name in February 2019 (see https://history.state.gov/countries/macedonia). Lastly, this final rule removes Turkey from the
Commerce Country Chart and replaces it, in alphabetical order, with
T[uuml]rkiye. BIS makes this change to conform to the State
Department's recognition on January 9, 2023 of the new country's new
name (see https://www.state.gov/countries-areas/turkey/). This rule
revises only the names of the three countries; the information set
forth in each of the three entries otherwise remains the same.
As a conforming change to the changes made to the Commerce Country
Chart described above, this final rule removes Swaziland from Country
Group B in supplement no. 1 to part 740, Country Groups), and replaces
it (in alphabetical order) with Eswatini. Similarly, this rule removes
Macedonia (the Former Yugoslav Republic of) from Country Group B and
replaces it, in alphabetical order, with North Macedonia.
B. Conforming Changes to Commerce Country Chart Entries for Australia
and the United Kingdom
This final rule also revises the Commerce Country Chart entries for
Australia and the United Kingdom in supplement no. 1 to part 738 to
align with the policy decisions and regulatory changes described and
implemented in the August 19, 2024 interim final rule, ``Export Control
Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced
Trilateral Security Partnership'' (89 FR 28594, published and effective
on April 19, 2024) (April 19 IFR). Specifically, the April 19 IFR
removed the license requirements for national security column 1 (NS1),
regional stability column 1 (RS1), and missile technology column 1
(MT1) reasons for control for these two countries, as well as the
footnote 3 designations for both of these countries, because the
license requirements referenced in footnote 3 were no longer
applicable.
This rule corrects inadvertent errors in which a subsequent interim
final rule, ``Revisions of Firearms License Requirements'' (89 FR
34680, published on April 30, 2024, and effective on May 30, 2024)
(April 30 IFR), erroneously included an ``X'' under the NS1, RS1, and
MT1 reasons for control for Australia and the United Kingdom and also
erroneously included the previously-applicable footnote 3 designation
for these two countries. This final rule revises the entries for
[[Page 40370]]
Australia and the United Kingdom by removing the license requirement
for NS1, RS1, and MT1, as well as the footnote 3 designation, for
consistency with the intended regulatory changes described in the April
19 IFR.
The changes in this final rule described under this section II.B
are limited to removing text (as described above) that inadvertently
appeared in the two Commerce Country Chart entries. The April 30 IFR
correctly removed the footnote 9 designation for Australia and the
United Kingdom. The April 30 IFR addressed the license requirement
described in footnote 9 for these two destinations by adding an ``X''
in the crime control column 2 (CC2) reason for control for these two
countries.
C. Conforming Change to Reflect the Fact That Cyprus is No Longer a
Country Group D:5 Country
The U.S. State Department recently amended Sec. 126.1 of the
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120
through 130) to specify that Cyprus's status as a proscribed
destination is suspended from October 1, 2023 through September 30,
2024 (see 88 FR 63016). Consistent with this change, Cyprus was
effectively removed from Country Group D:5. As set forth in the Note to
Country Group D:5 in supplement no. 1 to part 740 of the EAR, if there
are any discrepancies between the list of D:5 countries and the
countries identified by the Department of State as subject to a U.S.
arms embargo, the State Department's list shall be controlling. To
avoid confusion on the part of exporters, reexporters, and transferors,
this final rule removes Cyprus from D:5. D:5 was the only ``X'' in the
entry for Cyprus under Country Group D, so the entry is no longer
needed.
D. Removing, for Clarity, References to Russia and the Russian
Federation for Provisions That Also extend to Country Group D:5
The final rule, ``Implementation of Sanctions Against Russia Under
the Export Administration Regulations (EAR)'' (87 FR 12226, published
March 3, 2022, and effective February 24, 2022), included amendments to
supplement no. 1 to part 740 (Country Groups) of the EAR consistent
with the ITAR Sec. 126.1. The March 3 final rule updated the Country
Group designation for Russia in supplement no. 1 to part 740 to reflect
its identification by the Department of State as a country subject to a
United States arms embargo. As noted above, BIS harmonizes the arms
embargo-related provisions in the EAR with the Directorate of Defense
Trade Control's (DDTC's) regulation of arms embargoes in Sec. 126.1 of
the ITAR. Three sections of the EAR, which predated the March 18, 2021
(see 86 FR 14802) addition of Russia to Sec. 126.1 under the ITAR,
continued to separately identify Russia or the Russian Federation from
Country Group D:5. These references are unnecessary due to the fact
that Russia was subsequently added to Country Group D:5. Specifically,
this final rule revises Sec. 734.18(a)(5)(iv); Sec. 740.9(a)
introductory text (the fourth and seventh sentences) and paragraph
(b)(5)(ii); and Sec. 758.10, Note 1 to paragraph (b)(1), by removing
references to Russia or the Russian Federation when the same sentence
also refers to Country Group D:5. In the case of Sec. 740.9(b)(5)(ii),
the broader exclusion under paragraph (b)(5)(i) means the narrow
exclusion under (b)(5)(ii) should not include Russia, which is subject
to the broader exclusion as a Country Group D:5 country.
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, as amended, provides the legal basis for BIS's principal
authorities and serves as the authority under which BIS issues this
rule.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders 12866, 13563, and 14094. Pursuant to E.O. 12866, as
amended by E.O. 14094, this final rule has not been determined to be a
``significant regulatory action.''
2. Notwithstanding any other provision of law, no person is
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 an
information collection approved by OMB under control number 0694-0088,
Simplified Network Application Processing System. BIS does not
anticipate a change to the burden hours associated with this collection
as a result of this rule. Information regarding the collection,
including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
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 ECRA (50 U.S.C. 4821), 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. Additionally, this rule is
exempt from the ordinary rulemaking requirements of the APA pursuant to
5 U.S.C. 553(a)(1) as a military or foreign affairs function of the
United States Government.
5. Because neither the APA 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 has been
prepared.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology.
15 CFR Part 738
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 758
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Exports, Reporting and recordkeeping requirements.
Accordingly, parts 734, 738, 740, and 758 of the Export
Administration Regulations (15 CFR parts 730-774) are amended as
follows:
PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
0
1. The authority citation for 15 CFR part 734 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.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp.,
p. 223; Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).
[[Page 40371]]
0
2. Section 734.18(a)(5) is amended by revising paragraph (a)(5)(iv) to
read as follows:
Sec. 734.18 Activities that are not exports, reexports, or
transfers.
(a) * * *
(5) * * *
(iv) Not intentionally stored in a country listed in Country Group
D:5 (see supplement no. 1 to part 740 of the EAR).
Note 1 to paragraph (a)(5)(iv): Data in-transit via the internet
is not deemed to be stored.
* * * * *
PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
0
3. The authority citation for 15 CFR part 738 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C.
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004;
42 U.S.C. 2139a; 15 U.S.C. 1824; 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
4. Supplement no. 1 to part 738 is amended by:
0
a. Revising the entry for ``Australia'';
0
b. Adding an entry for ``Eswatini'' in alphabetical order;
0
c. Removing the entries for ``Macedonia (The Former Yugoslav Republic
of)'';
0
d. Adding an entry for ``North Macedonia'' in alphabetical order;
0
e. Removing the entry for ``Swaziland'';
0
f. Removing the entry for ``Turkey''; and
0
g. Adding an entry for ``T[uuml]rkiye'' in alphabetical order.
0
h. Revising the entry for the ``United Kingdom'';
The additions and revisions read as follows:
Supplement No. 1 to Part 738--Commerce Country Chart
* * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical & biological Nuclear National Missile Regional Firearms Crime control Anti-
weapons nonproliferation security tech stability convention ------------------------ terrorism
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
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Australia.................................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
* * * * * * *
Eswatini..................................... X X ....... X ....... X X X X X ............ X X X
* * * * * * *
North Macedonia.............................. X X ....... X ....... X X X X X ............ X X X
* * * * * * *
T[uuml]rkiye................................. X ....... ....... ....... ....... X ....... X X ....... ............ ...... X
* * * * * * *
United Kingdom............................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
* * * * * * *
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* * * * *
PART 740--LICENSE EXCEPTIONS
0
5. The authority citation for 15 CFR 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
6. Section 740.9 is amended by:
0
a. Removing ``Russia,'' in the fourth and seventh sentences of
paragraph (a) introductory text wherever it appears; and
0
b. Removing ``Russia,'' in paragraph (b)(5)(ii) wherever it appears.
0
7. Supplement no. 1 to part 740 is amended by:
0
a. In the ``Country Group A'' and ``Country Group B'' tables, removing
the entry for ``Turkey'' and adding an entry for ``T[uuml]rkiye'' in
alphabetical order;
0
b. In the ``Country Group B'' table:
0
i. Adding an entry for ``Eswatini'' in alphabetical order;
0
i. Removing the entry for ``Macedonia, The Former Yugoslav Republic
of'', and adding an entry for ``North Macedonia'' in alphabetical
order;
0
ii. Removing the entry for ``Swaziland''; and
0
c. In the ``Country Group D'' table, removing the entry for Cyprus.
The additions and revisions read as follows:
Supplement No. 1 to Part 740--Commerce Country Chart
Country Group A
--------------------------------------------------------------------------------------------------------------------------------------------------------
[A:2] Missile [A:4]
[A:1] Wassenaar technology [A:3] Nuclear
Country participating control regime Australia suppliers [A:5] [A:6]
states \1\ \2\ group group \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
T[uuml]rkiye.................................................. X X 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), Russia, and Belarus.
[[Page 40372]]
* * * * *
Country Group B--Countries
* * * * *
Eswatini
* * * * *
North Macedonia
* * * * *
T[uuml]rkiye
* * * * *
PART 758--EXPORT CLEARANCE REQUIREMENTS AND AUTHORITIES
0
8. The authority citation for 15 CFR part 758 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
0
9. Section 758.10 is amended by removing ``Russia,'' in Note 1 to
paragraph (b)(1) wherever it appears.
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-10280 Filed 5-8-24; 11:15 am]
BILLING CODE 3510-33-P
