Bureau of Industry and Security June 2014 – Federal Register Recent Federal Regulation Documents

The Bureau of Industry and Security (BIS) publishes this final rule to amend two supplements in the Export Administration Regulations (EAR), which contain lists of controlled crude oil and petroleum products (produced or derived from the Naval Petroleum Reserve (NPR)) and unprocessed western red cedar, respectively. These lists provide relevant Census Bureau Schedule B commodity numbers and associated commodity descriptions of these short supply commodities. Many of the Schedule B commodity numbers and associated commodity descriptions listed prior to publication of this rule in the two supplements are now obsolete. This rule updates the lists in the two supplements to remove obsolete descriptions and Schedule B commodity numbers, and to add relevant descriptions and Schedule B commodity numbers for these short supply commodities. This rule also clarifies the description of petroleum products in other sections of the EAR to ensure those references are current. This rule will not alter or otherwise affect BIS's current enforcement practice with respect to the EAR's controls on unprocessed western red cedar or crude oil and petroleum products.

The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by adding twenty-nine (29) persons to the Unverified List (the ``Unverified List'' or UVL). The 29 persons are being added to the UVL on the basis that BIS could not verify their bona fides because an end-use check could not be completed satisfactorily for reasons outside the U.S. Government's control. In addition, this rule reinserts a requirement for exporters to file an Automated Export System (AES) record for all exports subject to the EAR involving persons listed on the UVL following that provision's inadvertent removal from the EAR. The UVL contains the names and addresses of foreign persons who are or have been parties to a transaction, as that term is described in the EAR, involving the export, reexport, or transfer (in-country) of items subject to the EAR, and whose bona fides BIS has been unable to verify through an end-use check. There is a suspension of license exceptions for exports, reexports, and transfers (in-country) involving a party or parties to the transaction who are listed on the UVL, and a requirement for exporters, reexporters, and transferors to obtain (and keep a record of) a UVL statement from a party or parties to the transaction who are listed on the UVL before proceeding with exports, reexports, and transfers (in-country) involving items subject to the EAR, but where the item does not require a license.

This final rule makes corrections and clarifications to the Export Administration Regulations (EAR) for six final rules published in 2013 and early 2014. This final rule also makes other needed technical corrections and clarifications to the EAR identified by BIS. In addition, this final rule makes two conforming changes to the EAR as a result of a final rule published by the Department of State on April 17, 2014.