80 FR 29530 - Russian Sanctions: Revisions and Clarifications for Licensing Policy for the Crimea Region of Ukraine

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 99 (May 22, 2015)

Page Range		29530-29533
FR Document		2015-12267

The Bureau of Industry and Security (BIS) issues this final rule to amend the Export Administration Regulations (EAR) to facilitate Internet-based communications with persons in the Crimea region of Ukraine. This final rule allows exports or reexports without a license to the Crimea region of Ukraine of software that is necessary to enable the exchange of personal communications over the Internet, provided that such software is designated EAR99, or is classified as mass market software under Export Control Classification Number (ECCN) 5D992.c of the EAR, and provided further that such software is widely available to the public at no cost to the user. This final rule is being published simultaneously with the Department of the Treasury's Office of Foreign Assets Control (OFAC) issuance of General License No. 9, which authorizes the export or reexport from the United States or by U.S. persons to the Crimea region of Ukraine of certain services and software incident to the exchange of personal communications over the Internet. This action is consistent with the U.S. Government's policy to promote personal communications between the people in Crimea and the outside world. Lastly, this final rule makes clarifications to the EAR with respect to the addition of the Crimea region of Ukraine provisions in a final rule published on January, 29, 2015, to the EAR. These clarifications are in response to requests that BIS received for guidance on applying these provisions.

Federal Register, Volume 80 Issue 99 (Friday, May 22, 2015)

[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Rules and Regulations]
[Pages 29530-29533]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12267]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 740, and 746

[Docket No. 150302205-5205-01]
RIN 0694-AG54


Russian Sanctions: Revisions and Clarifications for Licensing 
Policy for the Crimea Region of Ukraine

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Industry and Security (BIS) issues this final 
rule to amend the Export Administration Regulations (EAR) to facilitate 
Internet-based communications with persons in the Crimea region of 
Ukraine. This final rule allows exports or reexports without a license 
to the Crimea region of Ukraine of software that is necessary to enable 
the exchange of personal communications over the Internet, provided 
that such software is designated EAR99, or is classified as mass market 
software under Export Control Classification Number (ECCN) 5D992.c of 
the EAR, and provided further that such software is widely available to 
the public at no cost to the user. This final rule is being published 
simultaneously with the Department of the Treasury's Office of Foreign 
Assets Control (OFAC) issuance of General License No. 9, which 
authorizes the export or reexport from the United States or by U.S. 
persons to the Crimea region of Ukraine of certain services and 
software incident to the exchange of personal communications over the 
Internet. This action is consistent with the U.S. Government's policy 
to promote personal communications between the people in Crimea and the 
outside world.
    Lastly, this final rule makes clarifications to the EAR with 
respect to the addition of the Crimea region of Ukraine provisions in a 
final rule published on January, 29, 2015, to the EAR. These 
clarifications are in response to requests that BIS received for 
guidance on applying these provisions.

DATES: This rule is effective May 22, 2015.

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
National Security and Technology Transfer Controls, Bureau of Industry 
and Security, Department of Commerce, Phone: (202) 482-0092, Fax: (202) 
482-482-3355, Email: [email protected]. For emails, include ``Russia'' 
in the subject line.

SUPPLEMENTARY INFORMATION: On January 29, 2015, the Bureau of Industry 
and Security (BIS) published the final rule Russian Sanctions: 
Licensing Policy for the Crimea Region of Ukraine (80 FR 4776) 
(hereinafter the ``January 29 rule''). The January 29 rule imposed 
additional sanctions that implemented U.S. policy toward Russia.
    Specifically, the January 29 rule imposed a license requirement for 
the export and reexport to the Crimea region of Ukraine, and the 
transfer within the Crimea region of Ukraine, of all items subject to 
the EAR, other than food and medicine designated as EAR99. The January 
29 rule also added other provisions specific to the Crimea region of 
Ukraine. This action was consistent with the goals and objectives of 
Executive Order 13685.

Background for Executive Order 13685

    This Order took additional steps to address the national emergency 
declared in Executive Order 13660 of March 6, 2014 (as expanded by 
Executive Order 13661 of March 16, 2014 and Executive Order 13662 of 
March 20, 2014), finding that the actions and policies of the 
Government of the Russian Federation with respect to Ukraine--including 
the deployment of Russian Federation military forces in the Crimea 
region of Ukraine--undermine democratic processes and institutions in 
Ukraine; threaten its peace, security, stability, sovereignty, and 
territorial integrity; and contribute to the misappropriation of its 
assets, and thereby constitute an unusual and extraordinary threat to 
the national security and foreign policy of the United States.
    In part, Executive Order 13685 prohibits certain transactions with 
respect to the Crimea region of Ukraine, including the export, 
reexport, sale or supply, directly or indirectly, from the United 
States, or by a U.S. person, of any goods, services or technology to 
the Crimea region of Ukraine. Under Section 10 of Executive Order 
13685, all agencies of the United States Government are directed to 
take all appropriate measures within their authority to carry out the 
provisions of the Order.

Permitted Exports and Reexports of Certain Software to the Crimea 
Region of Ukraine

    This final rule published today makes additional changes to the EAR 
for the Crimea region of Ukraine. Specifically, in Sec.  746.6, this 
final rule revises paragraph (a) (license requirements) to

[[Page 29531]]

add an additional sentence that allows exports or reexports without a 
license to the Crimea region of Ukraine and transfers (in-country) 
within the Crimean region of Ukraine of certain software (described 
further below) that is necessary to enable the exchange of personal 
communications over the Internet.
    This change to the license requirements, in addition to relieving a 
regulatory burden on exporters, reexporters, and transferors of such 
software, may also facilitate Internet-based communication between 
people located in the Crimea region of Ukraine and other people around 
the world. Facilitating such Internet-based communication with the 
people located in the Crimea region of Ukraine is in the United States' 
national security and foreign policy interests because it helps the 
people of the Crimea region of Ukraine communicate with the outside 
world. Persons in the Crimea region of Ukraine may use such Internet-
based communication to describe their situation directly and counter 
any false messages being propagated by those currently exercising 
control over the Crimea region of Ukraine.
    By creating an opportunity for the people of the Crimea region of 
Ukraine to draw attention to these issues, this final rule may reduce 
the ability of Russia, and those acting on Russia's behalf in the 
Crimea region of Ukraine, to control the narrative of local events. In 
addition, creating an opportunity for people in the Crimea region of 
Ukraine to draw attention to these issues may also encourage other 
countries to join with the United States and other like-minded 
countries currently imposing sanctions on Russia as a result of their 
activities in the Crimea region of Ukraine and other parts of eastern 
Ukraine, which is also in the national security and foreign policy 
interests of the United States.
    This final rule is being published simultaneously with the 
Department of the Treasury's Office of Foreign Assets Control (OFAC) 
issuance of General License No. 9--Exportation of Certain Services and 
Software Incident to Internet-Based Communications Authorized. This 
general license authorizes the export or reexport, directly or 
indirectly, from the United States or by U.S. persons to the Crimea 
region of Ukraine of certain services incident to the exchange of 
personal communications over the Internet, such as instant messaging, 
chat and email, social networking, sharing of photos and movies, web 
browsing, and blogging, provided that such services are publicly 
available at no cost to the user, subject to certain exclusions. 
General License 9 further authorizes, in relevant part, the export or 
reexport, directly or indirectly, from the United States or by U.S. 
persons, wherever located, to persons in the Crimea region of Ukraine 
of software necessary to enable the services described above, provided 
that such software is designated as EAR99 or is classified as mass 
market software under ECCN 5D992.c of the EAR, and provided further 
that such software is widely available to the public at no cost to the 
user, subject to certain exclusions. See http://www.treasury.gov/resource-center/sanctions/Programs/Documents/ukraine_gl9.pdf BIS is 
publishing this rule to make Sec.  746.6(a) of the EAR consistent with 
OFAC's new general license. This rule revises Sec.  746.6(a) to allow 
license-free treatment of software that is necessary to enable the 
exchange of personal communications over the Internet only if such 
software is designated EAR99 or is classified as mass market software 
under ECCN 5D992.c of the EAR, and provided further that such software 
is widely available to the public at no cost to the user.

Other Clarifications To the EAR for the Crimea Region of Ukraine

    In addition to the changes described above, this final rule also 
makes clarifications to the EAR with respect to the addition of the 
Crimea region of Ukraine provisions to the EAR. These clarifications 
are in response to requests that BIS received for guidance on applying 
these provisions. These clarifications do not change policy as it 
relates to the Crimea region of Ukraine provisions added to the EAR in 
the January 29 rule, but rather provide guidance on how BIS interprets 
them. These questions primarily arise because Crimea is not a country, 
so the public had questions in regards to how to apply certain EAR 
provisions that are generally tied to countries when they involve the 
Crimea region of Ukraine.

New Footnote To Clarify Application of Country Groups for Crimea Region 
of Ukraine

    In Supplement No. 1 to part 740--Country Groups, this final rule 
adds a footnote 3 to the entry for Ukraine. The new footnote clarifies 
that for purposes of the Country Group provisions under the EAR, the 
Crimea region of Ukraine uses the same Country Group designations as 
the country of Ukraine. This is because the Crimea region of Ukraine is 
not a country. The Country Groups are also closely tied to the use of 
license exceptions, so the new footnote also clarifies that the only 
license exceptions that may be used for the Crimea region of Ukraine 
are those specified in Sec.  746.6(c). Similar to footnote 8 that was 
added to the Commerce Country Chart in Supplement No. 1 to part 738 in 
the January 29 rule, footnote 3 makes the public aware of the 
additional requirements under Sec.  746.6 that apply to the `Crimea 
region of Ukraine,' including limitations on the use of license 
exceptions. The new footnote also includes the same definition of 
`Crimea region of Ukraine' that appears in footnote 8 to the Commerce 
Country Chart and this rule's revision to Sec.  746.6.

New Note To Clarify Application of Deemed Exports and Deemed Reexports 
for Crimea Region of Ukraine

    In Sec.  746.6 (Crimea region of Ukraine), this final rule adds a 
paragraph (a)(2) to clarify that for purposes of applying the EAR 
deemed export and deemed reexport requirements for foreign nationals 
located in or from the Crimea region of Ukraine, the nationality of the 
foreign national (as determined by accepted methods, such as looking to 
the passport or other nationality documents recognized by the United 
States Government) is what is used for purposes of determining whether 
a license is required under the EAR. For example, if a foreign national 
is in the United States and has a Ukrainian passport, the person 
releasing the technology or software source code would use Ukraine for 
purposes of determining the EAR license requirements and would not need 
to determine whether the person was from the Crimea region of Ukraine. 
For releases of technology in the Crimea region to foreign nationals of 
any country other than Ukraine, the nationality of the foreign national 
is used for determining deemed reexport license requirements. For 
example, a release of technology or software source code to a Russian 
national located in the Crimea region of Ukraine would use Russia for 
purposes of determining the EAR license requirements. BIS makes this 
clarification because of requests received from the public for guidance 
on how to apply the Crimea region of Ukraine license requirements in 
the deemed export and deemed reexport contexts. Note that nothing in 
this rule affects licensing requirements for the provision of goods and 
services under the OFAC regulations, 31 CFR parts 500-599.

Export Administration Act

    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order

[[Page 29532]]

13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as amended 
by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013) 
and as extended by the Notice of August 7, 2014, 79 FR 46959 (August 
11, 2014), has continued the Export Administration Regulations in 
effect under the International Emergency Economic Powers Act. BIS 
continues to carry out the provisions of the Export Administration Act, 
as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222 as amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor 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 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission. Total burden hours 
associated with the PRA and OMB control number 0694-0088 are not 
expected to increase as a result of this rule. You may send comments 
regarding the collection of information associated with this rule, 
including suggestions for reducing the burden, to Jasmeet K. Seehra, 
Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment and a delay in effective date are inapplicable to the 
changes described above under the heading Permitted exports and 
reexports of certain software to the Crimea region of Ukraine because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to 
advance U.S. policy toward Russia and therefore promote U.S. national 
security or foreign policy objectives by immediately facilitating 
Internet-based communications with persons in the Crimea region of 
Ukraine. Delay in publication and the rule's effective date to allow 
for notice and comment would frustrate those objectives. This change to 
the license requirements, in addition to relieving a regulatory burden 
of exporters, reexporters and transferors of such software, may also 
facilitate Internet-based communication between people located in the 
Crimea region of Ukraine and other people around the world. 
Facilitating such Internet-based communication with the people located 
in the Crimea region of Ukraine is in U.S. national security and 
foreign policy interests because it helps create a potentially 
uncontrolled access point to the outside world for the people of the 
Crimea region of Ukraine. They may use such Internet-based 
communication to highlight their plight and to counter any false 
messages being propagated by those currently exercising control over 
the Crimea region of Ukraine. By creating an opportunity for the people 
of the Crimea region of Ukraine to draw attention to these issues, this 
final rule may increase pressure on Russia and those acting on Russia's 
behalf in the Crimea region of Ukraine to stop such activities, or at 
least to allow a counter version of local events. In addition, creating 
an opportunity for people in the Crimea region of Ukraine to draw 
attention to these issues may also encourage other countries to join 
with the United States and other like-minded countries currently 
imposing sanctions on Russia as a result of their activities in the 
Crimea region of Ukraine and other parts of eastern Ukraine, which is 
also in the national security and foreign policy interests of the 
United States. Further, no other law requires that a notice of proposed 
rulemaking and an opportunity for public comment be given for this 
rule. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by 5 U.S.C. 
553, or by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. Accordingly, 
no regulatory flexibility analysis is required and none has been 
prepared.
    5. The Department finds for the changes described under the heading 
Other Clarifications to the EAR for the Crimea region of Ukraine that 
there is good cause under 5 U.S.C. 553(b)(3)(B) to waive the provisions 
of the Administrative Procedure Act requiring prior notice and the 
opportunity for public comment because they are unnecessary. These 
changes included in this final rule are limited to clarifications to 
what was included in the final rule published on January 29, 2015. 
These revisions are non-substantive, or are limited to only clarifying 
the regulations to ensure consistency with the intent of the January 29 
rule; therefore, providing an additional opportunity for public comment 
on these corrections is unnecessary.
    In addition, BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3) because it will allow the 
clarifications to go into effect immediately, which will reduce the 
potential for confusion among the public and make sure all members of 
the public are aware of how BIS interprets these Crimea region of 
Ukraine provisions as they relate to other EAR provisions.

List of Subjects

15 CFR Part 738

    Exports.

15 CFR Part 740

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

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 738, 740, and 746 of the Export Administration 
Regulations (15 CFR parts 730-774) are amended as follows:

PART 738--[AMENDED]

0
1. The authority citation for 15 CFR part 738 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p.

[[Page 29533]]

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 7, 2014, 79 FR 46959 (August 11, 2014).


0
2. Supplement No. 1 to part 738 is amended by revising footnote 8 to 
read as follows:

Supplement No. 1 to Part 738--Commerce Country Chart

* * * * *
    \8\ See Sec.  746.6 for additional license requirements for export 
and reexports to the Crimea region of Ukraine and transfers (in-
country) within the Crimea region of Ukraine for all items subject to 
the EAR, other than food and medicine designated as EAR99 and certain 
EAR99 or ECCN 5D992.c software for Internet-based communications. The 
Crimea region of Ukraine includes the land territory in that region as 
well as any maritime area over which sovereignty, sovereign rights, or 
jurisdiction is claimed based on purported annexation of that land 
territory.

PART 740--[AMENDED]

0
3. The authority citation for 15 CFR part 740 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 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; Notice 
of August 7, 2014, 79 FR 46959 (August 11, 2014).


0
4. Supplement No. 1 to part 740 is amended by:
0
a. Adding footnote designation ``3'' to ``Ukraine'' in Country Group A; 
and
0
b. Adding footnote 3 to Country Group A to read as follows:

Supplement No. 1 to Part 740--Country Groups

* * * * *
    \3\ For purposes of this supplement, as well as any other EAR 
provision that references the Country Groups, the designations for 
Ukraine also apply to the Crimea region of Ukraine. See Sec.  746.6(c) 
for an exhaustive listing of license exceptions that are available for 
the Crimea region of Ukraine. No other EAR license exceptions are 
available for the Crimea region of Ukraine. The Crimea region of 
Ukraine includes the land territory in that region as well as any 
maritime area over which sovereignty, sovereign rights, or jurisdiction 
is claimed based on purported annexation of that land territory.

PART 746--[AMENDED]

0
5. The authority citation for 15 CFR part 746 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899 
(January 16, 2007); Notice of August 7, 2014, 79 FR 46959 (August 
11, 2014); Notice of May 6, 2015, 80 FR 26815 (May 8, 2015).


0
6. Section 746.6 is amended by revising paragraph (a) to read as 
follows:


Sec.  746.6  Crimea region of Ukraine.

    (a) License requirements--(1) General prohibition. As authorized by 
Section 6 of the Export Administration Act of 1979, a license is 
required to export or reexport any item subject to the EAR to the 
Crimea region of Ukraine and the transfer within the Crimea region of 
Ukraine except food and medicine designated as EAR99 or software that 
is necessary to enable the exchange of personal communications over the 
Internet (such as instant messaging, chat and email, social networking, 
sharing of photos and movies, Web browsing, and blogging), provided 
that such software is designated EAR99 or is classified as mass market 
software under Export Control Classification Number (ECCN) 5D992.c of 
the EAR, and provided further that such software is widely available to 
the public at no cost to the user. The `Crimea region of Ukraine' 
includes the land territory in that region as well as any maritime area 
over which sovereignty, sovereign rights, or jurisdiction is claimed 
based on purported annexation of that land territory.
    (2) For purposes of applying the EAR deemed export and deemed 
reexport requirements for foreign nationals located in or from the 
Crimea region of Ukraine, the nationality of the foreign national (as 
determined by accepted methods, such as looking to the passport or 
other nationality document(s) recognized by the United States 
Government) is what is used for purposes of determining whether a 
license is required for a deemed export or deemed reexport. For any 
other export, reexport or transfer (in-country), see the license 
requirements specified in paragraph (a).
* * * * *

    Dated: May 14, 2015.
Eric L. Hirschhorn,
Under Secretary of Commerce for Industry and Security.
[FR Doc. 2015-12267 Filed 5-21-15; 8:45 am]
 BILLING CODE 3510-33-P

29530 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Rules and Regulations

256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 DEPARTMENT OF COMMERCE emails, include ‘‘Russia’’ in the subject
Comp., p. 608; E.O. 12854, 58 FR 36587, 3 line.
CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR Bureau of Industry and Security SUPPLEMENTARY INFORMATION: On
28205, 3 CFR, 1994 Comp., p. 899; E.O. January 29, 2015, the Bureau of Industry
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 15 CFR Parts 738, 740, and 746 and Security (BIS) published the final
950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 rule Russian Sanctions: Licensing Policy
Comp., p. 356; E.O. 12981, 60 FR 62981, 3 [Docket No. 150302205–5205–01]
for the Crimea Region of Ukraine (80 FR
CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR
RIN 0694–AG54 4776) (hereinafter the ‘‘January 29
54079, 3 CFR, 1996 Comp., p. 219; E.O.
rule’’). The January 29 rule imposed
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. Russian Sanctions: Revisions and additional sanctions that implemented
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Clarifications for Licensing Policy for
Comp., p. 208; E.O. 13222, 66 FR 44025, 3
U.S. policy toward Russia.
the Crimea Region of Ukraine Specifically, the January 29 rule
CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR
49079, 3 CFR, 2001 Comp., p. 786; E.O.
imposed a license requirement for the
AGENCY: Bureau of Industry and
13338, 69 FR 26751, 3 CFR, 2004 Comp., p
export and reexport to the Crimea region
Security, Commerce. of Ukraine, and the transfer within the
168; E.O. 13637 of March 8, 2013, 78 FR ACTION: Final rule.
16129 (March 13, 2013); Notice of August 7, Crimea region of Ukraine, of all items
2014, 79 FR 46959 (August 11, 2014); Notice subject to the EAR, other than food and
SUMMARY: The Bureau of Industry and
of September 17, 2014, 79 FR 56475 medicine designated as EAR99. The
Security (BIS) issues this final rule to
(September 19, 2014); Notice of November 7, January 29 rule also added other
amend the Export Administration
2014, 79 FR 67035 (November 12, 2014); provisions specific to the Crimea region
Regulations (EAR) to facilitate Internet-
Notice of January 21, 2015, 80 FR 3461 of Ukraine. This action was consistent
based communications with persons in
(January 22, 2015); Notice of May 6, 2015, 80 with the goals and objectives of
the Crimea region of Ukraine. This final Executive Order 13685.
FR 26815 (May 8, 2015).
rule allows exports or reexports without
a license to the Crimea region of Background for Executive Order 13685
PART 736—[AMENDED]
Ukraine of software that is necessary to This Order took additional steps to
enable the exchange of personal address the national emergency
■ 2. The authority citation for 15 CFR communications over the Internet,
part 736 is revised to read as follows: declared in Executive Order 13660 of
provided that such software is March 6, 2014 (as expanded by
Authority: 50 U.S.C. app. 2401 et seq.; 50 designated EAR99, or is classified as Executive Order 13661 of March 16,
U.S.C. 1701 et seq.; 22 U.S.C. 2151 note; E.O. mass market software under Export 2014 and Executive Order 13662 of
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. Control Classification Number (ECCN) March 20, 2014), finding that the actions
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 5D992.c of the EAR, and provided and policies of the Government of the
Comp., p. 219; E.O. 13026, 61 FR 58767, 3 further that such software is widely Russian Federation with respect to
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR available to the public at no cost to the Ukraine—including the deployment of
44025, 3 CFR, 2001 Comp., p. 783; E.O. user. This final rule is being published Russian Federation military forces in
13338, 69 FR 26751, 3 CFR, 2004 Comp., p. simultaneously with the Department of the Crimea region of Ukraine—
168; Notice of August 7, 2014, 79 FR 46959 the Treasury’s Office of Foreign Assets
(August 11, 2014); Notice of November 7,
undermine democratic processes and
Control (OFAC) issuance of General institutions in Ukraine; threaten its
2014, 79 FR 67035 (November 12, 2014);
License No. 9, which authorizes the peace, security, stability, sovereignty,
Notice of May 6, 2015, 80 FR 26815 (May 8,
2015).
export or reexport from the United and territorial integrity; and contribute
States or by U.S. persons to the Crimea to the misappropriation of its assets, and
PART 746—[AMENDED] region of Ukraine of certain services and thereby constitute an unusual and
software incident to the exchange of extraordinary threat to the national
■ 3. The authority citation for 15 CFR personal communications over the security and foreign policy of the United
part 746 is revised to read as follows: Internet. This action is consistent with States.
the U.S. Government’s policy to In part, Executive Order 13685
Authority: 50 U.S.C. app. 2401 et seq.; 50 promote personal communications prohibits certain transactions with
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, between the people in Crimea and the respect to the Crimea region of Ukraine,
Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004; outside world. including the export, reexport, sale or
22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. Lastly, this final rule makes supply, directly or indirectly, from the
12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
clarifications to the EAR with respect to United States, or by a U.S. person, of
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
the addition of the Crimea region of any goods, services or technology to the
Comp., p. 899; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
Ukraine provisions in a final rule Crimea region of Ukraine. Under
26751, 3 CFR, 2004 Comp., p 168; published on January, 29, 2015, to the Section 10 of Executive Order 13685, all
Presidential Determination 2003–23 of May EAR. These clarifications are in agencies of the United States
7, 2003, 68 FR 26459, May 16, 2003; response to requests that BIS received Government are directed to take all
Presidential Determination 2007–7 of for guidance on applying these appropriate measures within their
December 7, 2006, 72 FR 1899 (January 16, provisions. authority to carry out the provisions of
2007); Notice of August 7, 2014, 79 FR 46959 DATES: This rule is effective May 22, the Order.
(August 11, 2014); Notice of May 6, 2015, 80 2015. Permitted Exports and Reexports of
FR 26815 (May 8, 2015).
FOR FURTHER INFORMATION CONTACT: Certain Software to the Crimea Region
tkelley on DSK3SPTVN1PROD with RULES

Dated: May 18, 2015. of Ukraine
Eileen Albanese, Director, Office of
Kevin J. Wolf, National Security and Technology This final rule published today makes
Assistant Secretary for Export Transfer Controls, Bureau of Industry additional changes to the EAR for the
Administration. and Security, Department of Commerce, Crimea region of Ukraine. Specifically,
[FR Doc. 2015–12453 Filed 5–21–15; 8:45 am] Phone: (202) 482–0092, Fax: (202) 482– in § 746.6, this final rule revises
BILLING CODE 3510–33–P 482–3355, Email: rpd2@bis.doc.gov. For paragraph (a) (license requirements) to

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29532 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Rules and Regulations

13222 of August 17, 2001, 3 CFR, 2001 4. The provisions of the required to be given for this rule by 5
Comp., p. 783 (2002), as amended by Administrative Procedure Act (5 U.S.C. U.S.C. 553, or by any other law, the
Executive Order 13637 of March 8, 553) requiring notice of proposed analytical requirements of the
2013, 78 FR 16129 (March 13, 2013) and rulemaking, the opportunity for public Regulatory Flexibility Act, 5 U.S.C. 601
as extended by the Notice of August 7, comment and a delay in effective date et seq., are not applicable. Accordingly,
2014, 79 FR 46959 (August 11, 2014), are inapplicable to the changes no regulatory flexibility analysis is
has continued the Export described above under the heading required and none has been prepared.
Administration Regulations in effect Permitted exports and reexports of 5. The Department finds for the
under the International Emergency certain software to the Crimea region of changes described under the heading
Economic Powers Act. BIS continues to Ukraine because this regulation Other Clarifications to the EAR for the
carry out the provisions of the Export involves a military or foreign affairs Crimea region of Ukraine that there is
Administration Act, as appropriate and function of the United States. (See 5 good cause under 5 U.S.C. 553(b)(3)(B)
to the extent permitted by law, pursuant U.S.C. 553(a)(1)). BIS implements this to waive the provisions of the
to Executive Order 13222 as amended rule to advance U.S. policy toward Administrative Procedure Act requiring
by Executive Order 13637. Russia and therefore promote U.S. prior notice and the opportunity for
national security or foreign policy public comment because they are
Rulemaking Requirements unnecessary. These changes included in
objectives by immediately facilitating
1. Executive Orders 13563 and 12866 Internet-based communications with this final rule are limited to
direct agencies to assess all costs and persons in the Crimea region of Ukraine. clarifications to what was included in
benefits of available regulatory Delay in publication and the rule’s the final rule published on January 29,
alternatives and, if regulation is effective date to allow for notice and 2015. These revisions are non-
necessary, to select regulatory comment would frustrate those substantive, or are limited to only
approaches that maximize net benefits objectives. This change to the license clarifying the regulations to ensure
(including potential economic, requirements, in addition to relieving a consistency with the intent of the
environmental, public health and safety regulatory burden of exporters, January 29 rule; therefore, providing an
effects, distributive impacts, and reexporters and transferors of such additional opportunity for public
equity). Executive Order 13563 software, may also facilitate Internet- comment on these corrections is
emphasizes the importance of based communication between people unnecessary.
quantifying both costs and benefits, of located in the Crimea region of Ukraine In addition, BIS finds good cause to
reducing costs, of harmonizing rules, and other people around the world. waive the 30-day delay in effectiveness
and of promoting flexibility. This rule Facilitating such Internet-based under 5 U.S.C. 553(d)(3) because it will
has been determined to be not communication with the people located allow the clarifications to go into effect
significant for purposes of Executive in the Crimea region of Ukraine is in immediately, which will reduce the
Order 12866. U.S. national security and foreign policy potential for confusion among the
2. Notwithstanding any other interests because it helps create a public and make sure all members of the
provision of law, no person is required potentially uncontrolled access point to public are aware of how BIS interprets
to respond to nor be subject to a penalty the outside world for the people of the these Crimea region of Ukraine
for failure to comply with a collection Crimea region of Ukraine. They may use provisions as they relate to other EAR
of information, subject to the such Internet-based communication to provisions.
requirements of the Paperwork highlight their plight and to counter any List of Subjects
Reduction Act of 1995 (44 U.S.C. 3501 false messages being propagated by
et seq.) (PRA), unless that collection of those currently exercising control over 15 CFR Part 738
information displays a currently valid the Crimea region of Ukraine. By Exports.
Office of Management and Budget creating an opportunity for the people of
(OMB) Control Number. This regulation 15 CFR Part 740
the Crimea region of Ukraine to draw
involves collections previously attention to these issues, this final rule Administrative practice and
approved by OMB under control may increase pressure on Russia and procedure, Exports, Reporting and
number 0694–0088, Simplified Network those acting on Russia’s behalf in the recordkeeping requirements.
Application Processing System, which Crimea region of Ukraine to stop such 15 CFR Part 746
includes, among other things, license activities, or at least to allow a counter
applications and carries a burden version of local events. In addition, Exports, Reporting and recordkeeping
estimate of 43.8 minutes for a manual or creating an opportunity for people in requirements.
electronic submission. Total burden the Crimea region of Ukraine to draw Accordingly, parts 738, 740, and 746
hours associated with the PRA and attention to these issues may also of the Export Administration
OMB control number 0694–0088 are not encourage other countries to join with Regulations (15 CFR parts 730–774) are
expected to increase as a result of this the United States and other like-minded amended as follows:
rule. You may send comments regarding countries currently imposing sanctions
the collection of information associated on Russia as a result of their activities PART 738—[AMENDED]
with this rule, including suggestions for in the Crimea region of Ukraine and ■ 1. The authority citation for 15 CFR
reducing the burden, to Jasmeet K. other parts of eastern Ukraine, which is part 738 continues to read as follows:
Seehra, Office of Management and also in the national security and foreign
Budget (OMB), by email to Jasmeet_K._ policy interests of the United States. Authority: 50 U.S.C. app. 2401 et seq.; 50
tkelley on DSK3SPTVN1PROD with RULES

Seehra@omb.eop.gov, or by fax to (202) Further, no other law requires that a U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
395–7285. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et
notice of proposed rulemaking and an seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
3. This rule does not contain policies opportunity for public comment be 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
with Federalism implications as that given for this rule. Because a notice of 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
term is defined in Executive Order proposed rulemaking and an U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
13132. opportunity for public comment are not 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.

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Document Created: 2015-12-15 15:45:22
Document Modified: 2015-12-15 15:45:22

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This rule is effective May 22, 2015.
Contact		Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355, Email: [email protected] For emails, include ``Russia'' in the subject line.
FR Citation		80 FR 29530
RIN Number		0694-AG54
CFR Citation		15 CFR 738 15 CFR 740 15 CFR 746
CFR Associated		Exports; Administrative Practice and Procedure and Reporting and Recordkeeping Requirements

80 FR 29530 - Russian Sanctions: Revisions and Clarifications for Licensing Policy for the Crimea Region of Ukraine

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 80, Issue 99 (May 22, 2015)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security