Bureau of Industry and Security March 2021 – Federal Register Recent Federal Regulation Documents

On February 24, 2021, President Biden issued the Executive Order on ``America's Supply Chains,'' which directs several Federal agency actions to secure and strengthen America's supply chains. One of these directions is for the Secretary of Commerce to submit, within 100 days, a report to the President identifying risks in the semiconductor manufacturing and advanced packaging supply chains, and proposing policy recommendations to address these risks. Additionally, the National Defense Authorization Act of 2021 includes a title for ``Creating Helpful Incentives to Produce Semiconductors for America'' that mandates several Federal actions in securing the semiconductor- related supply chain. On March 15, 2021, the Bureau of Industry and Security (BIS) published a notice of request for public comments, Risks in the Semiconductor Manufacturing and Advanced Packaging Supply Chain (March 15 notice). The March 15 notice requests written comments and information from the public to assist the Department of Commerce in preparing the report required by the Executive Order with written comments due by April 5, 2021. BIS is publishing today's notice to announce a virtual forum that will occur on April 8, 2021, that will allow participants to orally address the policy objectives listed in the Executive Order as they affect the U.S. semiconductor manufacturing and advanced packaging supply chains, including but not limited to the elements included in the March 15 notice. Today's notice sets forth the procedures for public participation in the virtual forum.

The Bureau of Industry and Security (BIS) maintains, as part of its Export Administration Regulations (EAR), the Commerce Control List (CCL), which identifies certain items subject to Department of Commerce jurisdiction. This final rule revises the CCL, as well as corresponding parts of the EAR, to implement changes to the Wassenaar Arrangement List of Dual-Use Goods and Technologies (WA List) that were decided upon by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement, or WA) at the December 2019 WA Plenary meeting. The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. This rule harmonizes the CCL with the decisions reached at the 2019 Plenary meeting by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL. This rule also makes associated changes to the EAR as well as corrections. This rule also makes changes to various provisions related to Category 5Part 2 of the CCL in the EAR, including provisions on License Exception Encryption commodities, software, and technology (ENC). These changes, which include the elimination of reporting requirements for certain encryption items, are designed to reduce the regulatory burden for exporters while still fulfilling U.S. national security and foreign policy objectives.

The Department of Commerce, in accordance with the Paperwork Reduction Act of 1995 (PRA), invites the general public and other Federal agencies to comment on proposed, and continuing information collections, which helps us assess the impact of our information collection requirements and minimize the public's reporting burden. This collection is necessary under Part 748.11 of the Export Administration Regulations (EAR). The purpose of this notice is to allow for 60 days of public comment preceding submission of the collection to OMB.

The Secretary of State, acting under authority delegated pursuant to Executive Order 12851, has determined pursuant to the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act) that the Government of the Russian Federation has used chemical or biological weapons in violation of international law or lethal chemical or biological weapons against its own nationals. The sanctions imposed on Russia in connection with this determination include a prohibition, subject to partial waiver, on the export to Russia of national security-controlled goods and technology subject to the Export Administration Regulations (EAR). Pursuant to the EAR, BIS already maintains controls on exports and reexports to Russia of national security-controlled ``items'' (commodities, software and technology) that are subject to the EAR. This document informs the public that, consistent with BIS's implementation of the CBW Act sanctions, certain license exceptions will be suspended for use with national security-controlled items destined for Russia, and most license applications for exports or reexports of national security- controlled items destined for Russia will be reviewed under a presumption of denial.

On February 24, 2021, President Biden issued an Executive order on ``America's Supply Chains,'' which directs several Federal agency actions to secure and strengthen America's supply chains. One of these directions is for the Secretary of Commerce (the Secretary) to submit, within 100 days, a report to the President identifying risks in the semiconductor manufacturing and advanced packaging supply chains, and proposing policy recommendations to address these risks. Additionally, the National Defense Authorization Act of 2021 (FY21 NDAA) includes a title for, ``Creating Helpful Incentives to Produce Semiconductors for America'' that mandates several Federal actions in securing the semiconductor-related supply chain. One of these requirements is for the Secretary to assess the capabilities of the U.S. microelectronics industrial base to support the national defense, in light of the global nature and interdependence of the supply chain with respect to manufacture, design, and end use. This notice requests comments and information from the public to assist the Department of Commerce (Commerce) in preparing the report required by the Executive order. After that report is completed, Commerce will assess whether additional information will be needed to conduct the assessment required by the FY21 NDAA.

In this final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to further implement U.S. sanctions on selected Burmese government ministries and related enterprises. Specifically, BIS amends the EAR by adding four entities to the Entity List under the destination of Burma. These four entities have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests of the United States. The actions in this rule support the United States Government's efforts to promote a return to democracy in Burma following the February 1, 2021 Burmese military coup. They also reflect the United States Government's goal of supporting the people of Burma by preventing Burma' military and security services from obtaining items subject to the EAR.

This final rule amends the Export Administration Regulations (EAR) by adding fourteen entities to the Entity List. These fourteen entities 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 fourteen entities will be listed on the Entity List under the destinations of Germany, Russia, and Switzerland. This rule also corrects six existing entries to the Entity List, one under the destination of Germany and the other five under the destination of China.