Bureau of Industry and Security 2015 – Federal Register Recent Federal Regulation Documents

This proposed rule would revise Bureau of Industry and Security's (BIS) guidance regarding administrative enforcement cases based on violations of the Export Administration Regulations (EAR). The rule would rewrite Supplement No. 1 to part 766 of the EAR, setting forth the factors BIS considers when setting penalties in settlements of administrative enforcement cases and when deciding whether to pursue administrative charges or settle allegations of EAR violations. This proposed rule would not apply to alleged violations of part 760 Restrictive Trade Practices and Boycotts, which would continue to be subject to Supplement No. 2 to part 766. BIS is proposing these changes to make administrative penalties more predictable to the public and aligned with those promulgated by the Department of the Treasury, Office of Foreign Assets Control (OFAC).

The Bureau of Industry and Security (BIS) maintains, as part of its Export Administration Regulations (EAR), the Commerce Control List (CCL), which identifies certain of the items subject to Department of Commerce jurisdiction. This correction rule revises the Commerce Country Chart by implementing revisions that BIS inadvertently omitted from the ``Wassenaar Arrangement 2014 Plenary Agreements Implementation and Country Policy Amendments'' rule published on May 21, 2015 (80 FR 29442) (``May 21 rule''), for Argentina and South Africa. This rule also implements the Wassenaar Arrangement (WA) agreement to make a clarification to the control text for rebreathing equipment that BIS inadvertently did not make in the May 21 rule. A license requirement note indicating jurisdiction is corrected and a related control note is clarified in an entry on the CCL controlling space launch vehicles and ``spacecraft,'' ``space buses,'' ``spacecraft payloads,'' etc., as the range of the reference was incorrectly stated in the May 21 rule. The reference concerning jurisdiction for ``specially designed'' parts, components, systems and structures, for launch vehicles, launch vehicle propulsion systems or ``spacecraft'' is corrected in the CCL entry controlling such items in this rule. In addition, this rule makes one minor correction to remove Fiji from Column D:5 ``U.S. Arms Embargoed Countries,'' as well as from Country Group D, because Fiji is not listed under any other column within Country Group D and because the Department of State published a final rule that revised the International Traffic in Arms Regulations (ITAR) to rescind the previous policy of denying the export of defense articles and defense services to Fiji. Lastly, this rule removes an outdated reference in the Definitions part of the EAR.

The Bureau of Industry and Security (BIS) publishes this final rule to amend the Export Administration Regulations (EAR) Supplement that lists ``Information Collection Requirements Under the Paperwork Reduction Act: OMB Control Numbers'' to remove certain citations related to Special Comprehensive Licenses listed under Collection number 0607-0152. This final rule is precipitated by an error contained in a final rule published on August 26, 2015 that resulted in the retention of these citations. This action will ensure the accurate and complete implementation of the purposes of the August 26, 2015 final rule: To remove all Special Comprehensive License provisions and related provisions from the EAR.

This rule amends the Export Administration Regulations (EAR) by adding seven persons under ten entries to the Entity List. The seven persons who are added to the Entity List have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. These persons will be listed on the Entity List under the destinations of China and Hong Kong. This final rule also removes two persons from the Entity List. One entity requested removal from the Entity List in accordance with the procedure for requesting removal or modification of an Entity List entity. The End-User Review Committee (ERC) decided to remove this entity following a review of information provided in the removal request. The ERC decided to remove a second person from the Entity List following a proposal submitted by an ERC member agency, in accordance with the procedure for requesting removal or modification of an Entity List entity. Finally, this final rule modifies ten existing entries on the Entity List consisting of one entry under China and nine entries under Hong Kong to provide additional or modified addresses and/or aliases for these persons.

This rule updates the Code of Federal Regulations (CFR) legal authority paragraphs in the Export Administration Regulations (EAR) to cite the most recent Presidential notice continuing an emergency declared pursuant to the International Emergency Economic Powers Act. This is a non-substantive rule that only updates authority paragraphs of the EAR. It does not alter any right, obligation or prohibition that applies to any person under the EAR.

The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by adding twelve (12) persons to the Unverified List (the ``Unverified List'' or UVL), adding additional addresses for four (4) persons currently listed on the UVL, and removing two (2) persons from the UVL. The 12 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. New addresses are added for four current UVL persons because BIS has determined they are receiving U.S. exports at addresses not previously included in their UVL listings. Finally, two persons are removed from the UVL based on BIS's ability to verify those person's bona fides through the successful completion of end-use checks.

This rule amends the Export Administration Regulations (EAR) to expand the scope of License Exception Support for the Cuban People (SCP) to facilitate engagement between the U.S. and Cuban people; the free flow of information to, from, and among the Cuban people; and independent economic activity generated by Cuba's private sector. It also makes temporary sojourns of most vessels to Cuba eligible for License Exception Aircraft, Vessels and Spacecraft (AVS). Additionally, this rule creates a case-by-case review policy of license applications to export and reexport to Cuba items to ensure the safety of civil aviation and safe operation of commercial passenger aircraft. Finally, it amends the deemed export and deemed reexport license requirements for releases of technology and source code to Cuban nationals; removes certain unintended restrictions on exports and reexports under License Exception SCP and License Exception Consumer Communications Devices (CCD); and makes certain technical corrections to License Exception Agricultural Commodities (AGR).

This final rule makes additional clarifications and corrections to the interim final rule that was published on May 13, 2014. The May 13 rule added controls to the Export Administration Regulations (EAR) for spacecraft and related items that the President has determined no longer warrant control under United States Munitions List (USML) Category XVspacecraft and related items. The changes included in this final rule are limited to corrections and clarifications to what was included in the interim final rule. This is the second corrections and clarifications rule BIS has published for the May 13 rule. These corrections and clarifications were also informed by comments received in response to the May 13 rule that included a request for comments. The corrections and clarifications to the May 13 rule are also part of Commerce's retrospective regulatory review plan under Executive Order (EO) 13563 (see the SUPPLEMENTARY INFORMATION section of this rule for information on the availability of the plan).

The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.

The Bureau of Industry and Security (BIS) publishes this final rule to amend the Export Administration Regulations (EAR) to implement the recommendations presented at the November 2013 Australia Group (AG) intersessional implementation meeting and later adopted pursuant to the AG silent approval procedure. Specifically, this rule amends the Commerce Control List (CCL) entry in the EAR that controls certain human and zoonotic pathogens and toxins, and removes the CCL entry that controls certain animal pathogens to reflect the merger of two AG common control lists based on recommendations presented at the AG intersessional implementation meeting. As a result of these recommendations, the AG ``List of Animal Pathogens for Export Control'' was merged with the AG ``List of Biological Agents for Export Control,'' creating a single AG common control list for these items (i.e., the AG ``List of Human and Animal Pathogens and Toxins for Export Control''). The scope of the controls on these human and animal pathogens and toxins was not affected by the merger of the two lists into a single AG common control list. This rule also makes conforming amendments to other provisions in the EAR to reflect these changes. In addition, this rule amends the CCL entry that controls chemical manufacturing facilities and equipment to reflect changes to the AG ``Control List of Dual-Use Chemical Manufacturing Facilities and Equipment and Related Technology and Software,'' based on the November 2013 AG intersessional recommendation to revise controls on certain valves, casings (valve bodies) designed for such valves, and preformed casing liners designed for such valves. This rule also amends this CCL entry to add a Technical Note clarifying how the terms ``multi-seal'' and ``seal-less'' are used with respect to the controls on pumps. In a change unrelated to any revisions to the AG common control lists or guidelines, this rule also amends this CCL entry to authorize the use of License Exception LVS for specified shipments. This rule does not contain changes based on the understandings reached at the June 2014 AG Plenary meeting, because no amendments to the EAR were required as a result of these understandings.

The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995.

This proposed rule is part of the Administration's Export Control Reform Initiative. The Initiative will enhance U.S. national and economic security, facilitate compliance with export controls, update the controls, and reduce unnecessary regulatory burdens on U.S. exporters. As part of this effort, this rulemaking proposes revisions to the Export Administration Regulations (EAR) to include the definitions of ``technology,'' ``required,'' ``peculiarly responsible,'' ``proscribed person,'' ``published,'' results of ``fundamental research,'' ``export,'' ``reexport,'' ``release,'' ``transfer,'' and ``transfer (in-country)'' to enhance clarity and consistency with terms also found on the International Traffic in Arms Regulations (ITAR), which is administered by the Department of State, Directorate of Defense Trade Controls (DDTC). This rulemaking also proposes amendments to the Scope part of the EAR to update and clarify application of controls to electronically transmitted and stored technology and software. DDTC is concurrently publishing comparable proposed amendments to the ITAR's definitions of ``technical data,'' ``required,'' ``peculiarly responsible,'' ``public domain,'' results of ``fundamental research,'' ``export,'' ``reexport,'' ``release,'' and ``retransfer'' for the same reasons. Finally, this rulemaking proposes conforming changes to related provisions.