80 FR 47402 - Russian Sanctions: Addition to the Entity List To Prevent Violations of Russian Industry Sector Sanctions
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 80, Issue 152 (August 7, 2015)
Bureau of Industry and Security
Federal Register Volume 80, Issue 152 (August 7, 2015)
| Page Range | 47402-47405 | |
| FR Document | 2015-19274 |
[Federal Register Volume 80, Number 152 (Friday, August 7, 2015)] [Rules and Regulations] [Pages 47402-47405] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-19274] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 744 and 746 [Docket No. 150610514-5514-01] RIN 0694-AG66 Russian Sanctions: Addition to the Entity List To Prevent Violations of Russian Industry Sector Sanctions AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule amends the Export Administration Regulations (EAR) to further implement U.S. sanctions on certain Russian energy projects. Specifically, in this rule, the Bureau of Industry and Security (BIS) amends the EAR by adding a Russian oil and gas field, the Yuzhno-Kirinskoye Field located in the Sea of Okhotsk, to the Entity List. This Russian field is reported to contain substantial reserves of oil in addition to reserves of gas. The U.S. Government has determined, therefore, that exports, reexports, and transfers (in- country) of all items subject to the EAR to this Russian field by any person without first obtaining a BIS license present an unacceptable risk of use in, or diversion to, the activities specified in the Russian industry sector sanctions. Thus, as part of the BIS ``is informed'' process, this final rule adds this Russian field to the Entity List to further implement the Russian industry sector sanctions. This Russian field will be listed on the Entity List under the destination of Russia. This final rule clarifies the introductory text of the Entity List to specify that the embargoes and other special controls part of the EAR is also used to add entities to the Entity List. Lastly, this final rule makes a change to the Russian industry sector sanctions by clarifying the additional prohibition on those informed by BIS also includes end-uses that are within the scope of the Russian Industry sector sanctions. DATES: This rule is effective August 7, 2015. FOR FURTHER INFORMATION CONTACT: For this Entity List-related change, contact the Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: [email protected]. For the Russian industry sector sanctions referred to in this rule, 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: Background This final rule amends the Export Administration Regulations (EAR) to further implement U.S. sanctions on certain Russian energy projects. Specifically, in this rule, the Bureau of Industry and Security (BIS) amends the EAR by adding a Russian oil and gas field, the Yuzhno- Kirinskoye Field located in the Sea of Okhotsk, to the Entity List. This Russian field is reported to contain substantial reserves of oil in addition to reserves of gas. The U.S. Government has determined, therefore, that exports, reexports, and transfers (in-country) of all items subject to the EAR to this Russian field by any person without first obtaining a BIS license present an unacceptable risk of use in, or diversion to, the activities specified in the Russian industry sector sanctions. Thus, as part of the BIS ``is informed'' process, this final rule adds this Russian field to the Entity List to further implement the Russian industry sector sanctions. This Russian field will be listed on the Entity List under the destination of Russia. Entity List The Entity List (Supplement No. 4 to Part 744) identifies entities and other persons reasonably believed to be involved, or to pose a significant risk of being or becoming involved, in activities contrary to the national security or foreign policy interests of the United States. The EAR imposes [[Page 47403]] additional licensing requirements on, and limits the availability of most license exceptions for, exports, reexports, and transfers (in- country) to those listed. The ``license review policy'' for each listed entity or other person is identified in the License Review Policy column on the Entity List and the impact on the availability of license exceptions is described in the Federal Register notice adding entities or other persons to the Entity List. BIS places entities and other persons on the Entity List pursuant to sections of part 744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes and Other Special Controls) of the EAR. The ERC, composed of representatives of the Departments of Commerce (Chair), State, Defense, Energy, and, where appropriate, the Treasury, rules on additions to, removals from, and other modifications to the Entity List. The ERC makes decisions to add an entry to the Entity List by majority vote and decisions to remove or modify an entry by unanimous vote. Addition to the Entity List Consistent With Executive Order 13662 Under Sec. 746.5(a)(2), BIS in this final rule is adding a Russian oil and gas field to the Entity List and informing the public of a license requirement for exports, reexports, or transfers (in-country) of any item subject to the EAR to that location. This Russian field is added based on being the site of activities that are described in Executive Order 13662 (79 FR 16169), Blocking Property of Additional Persons Contributing to the Situation in Ukraine, issued by the President on March 20, 2014. This Order expanded the scope of the national emergency declared in Executive Order 13660 of March 6, 2014 and Executive Order 13661 of March 16, 2014. Specifically, Executive Order 13662 expanded the scope to include sectors of the Russian Federation's economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State, such as financial services, energy, metals and mining, engineering, and defense and related materiel. The Department of the Treasury's Office of Foreign Assets Control (OFAC), pursuant to Executive Order 13662 and on behalf of the Secretary of the Treasury, has designated certain entities operating in these sectors. The Yuzhno-Kirinskoye Field is being added to the Entity List because it is reported to contain substantial reserves of oil. Consequently, exports, reexports, and transfers (in-country) of all items subject to the EAR to this Russian oil and gas field by any person without first obtaining a BIS license has been determined by the U.S. Government to present an unacceptable risk of use in, or diversion to, the activities specified in paragraph (a)(1) of Sec. 746.5, namely exploration for, or production of, oil or gas in Russian deepwater (greater than 500 feet) locations. Therefore, a license requirement for all items subject to the EAR is warranted. License applications for such transactions will be reviewed with a presumption of denial because such exports, reexports, and transfers (in-country) are for use directly or indirectly in exploration or production from a deepwater (greater than 500 feet) project in Russia that has the potential to produce oil. In addition, no license exceptions are available for exports, reexports, or transfers (in- country) to the field being added to the Entity List in this rule. This final rule adds the following one Russian gas and oil field to the Entity List to expand the EAR license requirements in Sec. 746.5: Russia (1) Yuzhno-Kirinskoye Field, in the Sea of Okhotsk. Clarification to the Introductory Text of the Entity List As noted above, BIS places entities on the Entity List based on certain sections of part 744 (Control Policy: End-User and End-Use Based) and part 746 (Embargoes and Other Special Controls) of the EAR. This final rule, as a clarification for this existing BIS policy for adding persons to the Entity List, revises the first sentence of the introductory text of the Entity List to add a reference to part 746. This clarification to the introductory text will make it clear that this Supplement lists certain entities subject to license requirements for specified items under this part 744 and part 746 of the EAR. Clarification to Russian Industry Sector Sanctions In Sec. 746.5 (Russian industry sector sanctions), this final rule revises the second sentence of paragraph (a)(2) for the additional prohibition on those informed by BIS to add the term ``end-use'' after the term ``end-user.'' This change clarifies that the additional prohibition described in this paragraph (a)(2), as part of the BIS ``is informed'' process, may be based on an end-user or end-use when BIS determines there is an unacceptable risk of use in, or diversion to, the activities specified in paragraph (a)(1) of this section in Russia. This clarification does not change the scope of Sec. 746.5, but rather clarifies the cases in which BIS will use the ``is informed'' process to assist exporters, reexporters, and transferors to ``know'' when an export, reexport, or transfer (in-country) is subject to the license requirements specified in Sec. 746.5. Export Administration Act Although the Export Administration Act expired on August 20, 2001, the President, through Executive Order 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 [[Page 47404]] 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. For the Entity List changes in this final rule, 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 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 protect U.S. foreign policy interests by preventing items from being exported, reexported, or transferred (in country) for use in, or diversion to, the activities specified in the Russian industry sector sanctions at the Russian field being added to the Entity List. If this rule were delayed to allow for notice and comment and a delay in effective date, then persons working on or in the Russian field being added to the Entity List by this action would continue to be able to receive items subject to the EAR without a license and to conduct activities contrary to the Russian industry sector sanctions. In addition, publishing a proposed rule would give parties trying to export, reexport, or transfer (in-country) to this location notice of the U.S. Government's intention to place this Russian field on the Entity List and would create an incentive for persons located at this Russian field to accelerate receiving items subject to the EAR to conduct activities that are contrary to the to the Russian industry sector sanctions, and/or to take steps to set up additional aliases and other measures to try to limit the impact of the listing on the Entity List. 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. For the clarification to Russian industry sector sanctions and clarification to the introductory text of the Entity List, the Department finds that there is good cause under 5 U.S.C. 553(b)(B) to waive the provisions of the Administrative Procedure Act requiring prior notice and the opportunity for public comment because allowing for notice and comment would be contrary to the public interest. The revisions to Sec. 746.5(a)(2) and the introductory text to Supplement No. 4 to Part 744, facilitate public understanding of existing interpretations of current EAR provisions, and therefore prior notice and the opportunity for public comment would prevent BIS promulgating these revisions as soon as possible so that the public will be aware of the correct text and meaning of these current EAR provisions. BIS finds good cause to waive the 30-day delay in effectiveness under 5 U.S.C. 553(d)(3). As mentioned previously, the revisions described here made by this rule consist of minor clarifications that need to be in place as soon as possible to avoid confusion by the public regarding the intent and meaning of these changes to the EAR. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for these amendments 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. List of Subjects 15 CFR Part 744 Exports, Reporting and recordkeeping requirements, Terrorism. 15 CFR Part 746 Exports, Reporting and recordkeeping requirements. Accordingly, parts 744 and 746 of the Export Administration Regulations (15 CFR parts 730-774) are amended as follows: PART 744--[AMENDED] 0 1. The authority citation for 15 CFR part 744 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. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of September 17, 2014, 79 FR 56475 (September 19, 2014); Notice of November 7, 2014, 79 FR 67035 (November 12, 2014); Notice of January 21, 2015, 80 FR 3461 (January 22, 2015). 0 2. Supplement No. 4 to part 744 is amended by: 0 a. Adding introductory text; 0 b. Removing from the table the text below the headings and above the entry for ``Afghansistan''; and 0 c. Adding under Russia, in alphabetical order, the entity ``Yuzhno- Kirinskoye Field, in the Sea of Okhotsk''. The additions read as follows: Supplement No. 4 to Part 744--Entity List This Supplement lists certain entities subject to license requirements for specified items under this part 744 and part 746 of the EAR. License requirements for these entities include exports, reexports, and transfers (in-country) unless otherwise stated. This list of entities is revised and updated on a periodic basis in this Supplement by adding new or amended notifications and deleting notifications no longer in effect. ---------------------------------------------------------------------------------------------------------------- License review Federal Register Country Entity License requirement policy citation ---------------------------------------------------------------------------------------------------------------- * * * * * * * RUSSIA................. * * * * * * Yuzhno-Kirinskoye Field, in For all items Presumption of 80 FR [INSERT FR the Sea of Okhotsk. subject to the denial. PAGE NUMBER]; 8/ EAR. (See Sec. 7/15. 746.5 of the EAR). * * * * * * ---------------------------------------------------------------------------------------------------------------- * * * * * * * ---------------------------------------------------------------------------------------------------------------- [[Page 47405]] PART 746--[AMENDED] 0 3. The authority citation for 15 CFR part 746 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. 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 4. Section 746.5 is amended by revising paragraph (a)(2) to read as follows: Sec. 746.5 Russian industry sector sanctions. (a) * * * (2) Additional prohibition on those informed by BIS. BIS may inform persons, either individually by specific notice or through amendment to the EAR, that a license is required for a specific export, reexport, or transfer (in-country) or for the export, reexport, or transfer (in- country) of specified items to a certain end-user or end-use, because there is an unacceptable risk of use in, or diversion to, the activities specified in paragraph (a)(1) of this section in Russia. Specific notice is to be given only by, or at the direction of, the Deputy Assistant Secretary for Export Administration. When such notice is provided orally, it will be followed by a written notice within two working days signed by the Deputy Assistant Secretary for Export Administration. However, the absence of any such notification does not excuse persons from compliance with the license requirements of paragraph (a)(1) of this section. * * * * * Dated: July 30, 2015. Eric L. Hirschhorn, Under Secretary of Commerce for Industry and Security. [FR Doc. 2015-19274 Filed 8-6-15; 8:45 am] BILLING CODE 3510-33-P
![47402 Federal Register / Vol. 80, No. 152 / Friday, August 7, 2015 / Rules and Regulations
system but do not merit the classic Note: The term ‘‘suitably aware’’ Entity List. Lastly, this final rule makes
‘‘failure warning.’’ indicates annunciations provided to the a change to the Russian industry sector
These special conditions contain the flightcrew are appropriately balanced sanctions by clarifying the additional
additional safety standards that the between nuisance and that necessary for prohibition on those informed by BIS
Administrator considers necessary to crew awareness. also includes end-uses that are within
establish a level of safety equivalent to b. If the design of the flight control the scope of the Russian Industry sector
that established by the existing system has multiple modes of operation, sanctions.
airworthiness standards. a means must be provided to indicate to DATES: This rule is effective August 7,
Applicability the flightcrew any mode that 2015.
significantly changes or degrades the
As discussed above, these special FOR FURTHER INFORMATION CONTACT: For
normal handling or operational
conditions are applicable to the this Entity List-related change, contact
characteristics of the airplane.
Bombardier Models BD–700–2A12 and the Chair, End-User Review Committee,
Issued in Renton, Washington, on June 17, Office of the Assistant Secretary, Export
BD–700–2A13 series airplanes. Should
2015. Administration, Bureau of Industry and
Bombardier Inc. apply at a later date for
Jeffrey E. Duven, Security, Department of Commerce,
a change to the type certificate to
include another model incorporating the Manager, Transport Airplane Directorate, Phone: (202) 482–5991, Fax: (202) 482–
Aircraft Certification Service. 3911, Email: ERC@bis.doc.gov. For the
same novel or unusual design features,
these special conditions would apply to [FR Doc. 2015–19458 Filed 8–6–15; 8:45 am] Russian industry sector sanctions
that model as well. BILLING CODE 4910–13–P referred to in this rule, contact Eileen
Albanese, Director, Office of National
Conclusion Security and Technology Transfer
This action affects only certain novel DEPARTMENT OF COMMERCE Controls, Bureau of Industry and
or unusual design features on two Security, Department of Commerce,
model series of airplanes. It is not a rule Bureau of Industry and Security Phone: (202) 482–0092, Fax: (202) 482–
of general applicability. 482–3355, Email: rpd2@bis.doc.gov. For
The substance of these special 15 CFR Parts 744 and 746 emails, include ‘‘Russia’’ in the subject
conditions has been subjected to the [Docket No. 150610514–5514–01] line.
notice and comment period in several SUPPLEMENTARY INFORMATION:
prior instances and has been derived RIN 0694–AG66
without substantive change from those Background
previously issued. It is unlikely that Russian Sanctions: Addition to the
This final rule amends the Export
prior public comment would result in a Entity List To Prevent Violations of
Administration Regulations (EAR) to
significant change from the substance Russian Industry Sector Sanctions
further implement U.S. sanctions on
contained herein. Therefore, the FAA AGENCY: Bureau of Industry and certain Russian energy projects.
has determined that prior public notice Security, Commerce. Specifically, in this rule, the Bureau of
and comment are unnecessary, and good ACTION: Final rule. Industry and Security (BIS) amends the
cause exists for adopting these special EAR by adding a Russian oil and gas
conditions upon publication in the SUMMARY: This final rule amends the field, the Yuzhno-Kirinskoye Field
Federal Register. The FAA is requesting Export Administration Regulations located in the Sea of Okhotsk, to the
comments to allow interested persons to (EAR) to further implement U.S. Entity List.
submit views that may not have been sanctions on certain Russian energy This Russian field is reported to
submitted in response to the prior projects. Specifically, in this rule, the contain substantial reserves of oil in
opportunities for comment described Bureau of Industry and Security (BIS) addition to reserves of gas. The U.S.
above. amends the EAR by adding a Russian oil Government has determined, therefore,
and gas field, the Yuzhno-Kirinskoye that exports, reexports, and transfers (in-
List of Subjects in 14 CFR Part 25 Field located in the Sea of Okhotsk, to country) of all items subject to the EAR
Aircraft, Aviation safety, Reporting the Entity List. This Russian field is to this Russian field by any person
and recordkeeping requirements. reported to contain substantial reserves without first obtaining a BIS license
■ The authority citation for these of oil in addition to reserves of gas. The present an unacceptable risk of use in,
special conditions is as follows: U.S. Government has determined, or diversion to, the activities specified
therefore, that exports, reexports, and in the Russian industry sector sanctions.
Authority: 49 U.S.C. 106(g), 40113, 44701,
44702, 44704. transfers (in-country) of all items subject Thus, as part of the BIS ‘‘is informed’’
to the EAR to this Russian field by any process, this final rule adds this Russian
The Special Conditions person without first obtaining a BIS field to the Entity List to further
■ Accordingly, pursuant to the authority license present an unacceptable risk of implement the Russian industry sector
delegated to me by the Administrator, use in, or diversion to, the activities sanctions. This Russian field will be
the following special conditions are specified in the Russian industry sector listed on the Entity List under the
issued as part of the type certification sanctions. Thus, as part of the BIS ‘‘is destination of Russia.
basis for the Bombardier Inc. Models informed’’ process, this final rule adds
this Russian field to the Entity List to Entity List
BD–700–2A12 and BD–700–2A13 series
airplanes. further implement the Russian industry The Entity List (Supplement No. 4 to
sector sanctions. This Russian field will Part 744) identifies entities and other
rmajette on DSK2TPTVN1PROD with RULES
1. In addition to the requirements of
§§ 25.143, 25.671, and 25.672, the be listed on the Entity List under the persons reasonably believed to be
following requirements apply: destination of Russia. This final rule involved, or to pose a significant risk of
a. The system design must ensure that clarifies the introductory text of the being or becoming involved, in
the flightcrew is made suitably aware Entity List to specify that the embargoes activities contrary to the national
whenever the primary control means and other special controls part of the security or foreign policy interests of the
nears the limit of control authority. EAR is also used to add entities to the United States. The EAR imposes
VerDate Sep<11>2014 15:21 Aug 06, 2015 Jkt 235001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\07AUR1.SGM 07AUR1](https://thefederalregister.org/doc/80_FR_47554/page/1.svg)
![47404 Federal Register / Vol. 80, No. 152 / Friday, August 7, 2015 / Rules and Regulations
the collection of information associated opportunity for public comment are not Accordingly, parts 744 and 746 of the
with this rule, including suggestions for required to be given for this rule by 5 Export Administration Regulations (15
reducing the burden, to Jasmeet K. U.S.C. 553, or by any other law, the CFR parts 730–774) are amended as
Seehra, Office of Management and analytical requirements of the follows:
Budget (OMB), by email to Jasmeet_K._ Regulatory Flexibility Act, 5 U.S.C. 601
Seehra@omb.eop.gov, or by fax to (202) et seq., are not applicable. Accordingly, PART 744—[AMENDED]
395–7285. no regulatory flexibility analysis is
3. This rule does not contain policies required and none has been prepared. ■ 1. The authority citation for 15 CFR
with Federalism implications as that 5. For the clarification to Russian part 744 continues to read as follows:
term is defined in Executive Order industry sector sanctions and
Authority: 50 U.S.C. app. 2401 et seq.; 50
13132. clarification to the introductory text of U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
4. For the Entity List changes in this the Entity List, the Department finds 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
final rule, the provisions of the that there is good cause under 5 U.S.C. U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
Administrative Procedure Act (5 U.S.C. 553(b)(B) to waive the provisions of the 1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
553) requiring notice of proposed Administrative Procedure Act requiring 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
rulemaking, the opportunity for public prior notice and the opportunity for FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
comment and a delay in effective date public comment because allowing for 12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
are inapplicable because this regulation notice and comment would be contrary 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996
involves a military or foreign affairs to the public interest. The revisions to Comp., p. 228; E.O. 13099, 63 FR 45167, 3
function of the United States. (See 5 § 746.5(a)(2) and the introductory text to CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
U.S.C. 553(a)(1)). BIS implements this Supplement No. 4 to Part 744, facilitate 44025, 3 CFR, 2001 Comp., p. 783; E.O.
rule to protect U.S. foreign policy public understanding of existing 13224, 66 FR 49079, 3 CFR, 2001 Comp., p.
interests by preventing items from being interpretations of current EAR 786; Notice of August 7, 2014, 79 FR 46959
exported, reexported, or transferred (in provisions, and therefore prior notice (August 11, 2014); Notice of September 17,
country) for use in, or diversion to, the and the opportunity for public comment 2014, 79 FR 56475 (September 19, 2014);
activities specified in the Russian would prevent BIS promulgating these Notice of November 7, 2014, 79 FR 67035
industry sector sanctions at the Russian revisions as soon as possible so that the (November 12, 2014); Notice of January 21,
field being added to the Entity List. If public will be aware of the correct text 2015, 80 FR 3461 (January 22, 2015).
this rule were delayed to allow for and meaning of these current EAR ■ 2. Supplement No. 4 to part 744 is
notice and comment and a delay in provisions. amended by:
effective date, then persons working on BIS finds good cause to waive the 30-
■ a. Adding introductory text;
or in the Russian field being added to day delay in effectiveness under 5
the Entity List by this action would U.S.C. 553(d)(3). As mentioned ■ b. Removing from the table the text
continue to be able to receive items previously, the revisions described here below the headings and above the entry
subject to the EAR without a license and made by this rule consist of minor for ‘‘Afghansistan’’; and
to conduct activities contrary to the clarifications that need to be in place as ■ c. Adding under Russia, in
Russian industry sector sanctions. In soon as possible to avoid confusion by alphabetical order, the entity ‘‘Yuzhno-
addition, publishing a proposed rule the public regarding the intent and Kirinskoye Field, in the Sea of
would give parties trying to export, meaning of these changes to the EAR. Okhotsk’’.
reexport, or transfer (in-country) to this Because a notice of proposed
location notice of the U.S. Government’s rulemaking and an opportunity for The additions read as follows:
intention to place this Russian field on public comment are not required to be Supplement No. 4 to Part 744—Entity
the Entity List and would create an given for these amendments by 5 U.S.C. List
incentive for persons located at this 553, or by any other law, the analytical
Russian field to accelerate receiving requirements of the Regulatory This Supplement lists certain entities
items subject to the EAR to conduct Flexibility Act, 5 U.S.C. 601 et seq., are subject to license requirements for
activities that are contrary to the to the not applicable. specified items under this part 744 and
Russian industry sector sanctions, and/ List of Subjects part 746 of the EAR. License
or to take steps to set up additional requirements for these entities include
aliases and other measures to try to limit 15 CFR Part 744 exports, reexports, and transfers (in-
the impact of the listing on the Entity Exports, Reporting and recordkeeping country) unless otherwise stated. This
List. Further, no other law requires that requirements, Terrorism. list of entities is revised and updated on
a notice of proposed rulemaking and an a periodic basis in this Supplement by
opportunity for public comment be 15 CFR Part 746 adding new or amended notifications
given for this rule. Because a notice of Exports, Reporting and recordkeeping and deleting notifications no longer in
proposed rulemaking and an requirements. effect.
License License Federal Register
Country Entity requirement review policy citation
* * * * * * *
RUSSIA ............ * * * * * *
rmajette on DSK2TPTVN1PROD with RULES
Yuzhno-Kirinskoye Field, in the Sea of For all items subject to Presumption of denial ...... 80 FR [INSERT FR PAGE
Okhotsk. the EAR. (See § 746.5 NUMBER]; 8/7/15.
of the EAR).
* * * * * *
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![Federal Register / Vol. 80, No. 152 / Friday, August 7, 2015 / Rules and Regulations 47405
PART 746—[AMENDED] DEPARTMENT OF HOMELAND to part 191 of the CBP regulations to
SECURITY previous regulatory changes reflecting
■ 3. The authority citation for 15 CFR the closing of four drawback offices; (3)
part 746 continues to read as follows: U.S. Customs and Border Protection updating the regulations to reflect that
CBP is now part of the Department of
Authority: 50 U.S.C. app. 2401 et seq.; 50 DEPARTMENT OF THE TREASURY Homeland Security; and (4) making
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, other non-substantive editorial and
Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004; 19 CFR Parts 181 and 191 nomenclature changes.
22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
12854, 58 FR 36587, 3 CFR, 1993 Comp., p. [CBP Dec. 15–11] Easing the Requirements for
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 RIN 1515–AE02 Establishing Proof of Exportation
Comp., p. 899; E.O. 13222, 66 FR 44025, 3 This document amends title 19 of the
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR Liberalization of Certain Documentary Code of Federal Regulations (19 CFR) by
26751, 3 CFR, 2004 Comp., p 168; Evidence Required as Proof of making amendments to 19 CFR parts
Presidential Determination 2003–23 of May Exportation on Drawback Claims 181 and 191, specifically, sections 19
7, 2003, 68 FR 26459, May 16, 2003; CFR 181.47, 191.72 and 191.74 to align
Presidential Determination 2007–7 of AGENCY: U.S. Customs and Border
Protection, Department of Homeland CBP documentation requirements with
December 7, 2006, 72 FR 1899 (January 16, current business practices related to the
2007); Notice of August 7, 2014, 79 FR 46959 Security; Department of the Treasury.
documents used to establish the date
(August 11, 2014); Notice of May 6, 2015, 80 ACTION: Final rule.
and fact of exportation for purposes of
FR 26815 (May 8, 2015). drawback. In order to qualify for
SUMMARY: This document amends U.S.
■ 4. Section 746.5 is amended by Customs and Border Protection (CBP) drawback, claimants must establish that
revising paragraph (a)(2) to read as regulations by removing some of the articles are exported or destroyed. When
follows: requirements for documentation used to drawback is claimed for exported goods,
establish proof of exportation for the claimant must submit
§ 746.5 Russian industry sector sanctions. drawback claims. Currently, claimants documentation that establishes fully the
must provide originally signed date and fact of exportation and the
(a) * * * identity of the exporter. See 19 CFR
documentary evidence or a certified
(2) Additional prohibition on those copy of such documentary evidence to 191.72. For certain types of drawback
informed by BIS. BIS may inform establish the date and fact of exportation claims subject to the North American
persons, either individually by specific of articles for drawback purposes. This Free Trade Agreement (NAFTA),
notice or through amendment to the document also amends various sections documentation must also establish the
EAR, that a license is required for a of title 19 of the Code of Federal identity and location of the ultimate
specific export, reexport, or transfer (in- Regulations (CFR) to reflect that there is consignee of the exported goods. See 19
country) or for the export, reexport, or no longer a legal requirement that the CFR 181.47 (b)(2)(ii)(G).
transfer (in-country) of specified items export invoice for mail shipments be The documents for establishing
to a certain end-user or end-use, because certified. Additionally, this document exportation include, but are not limited
there is an unacceptable risk of use in, amends Appendix B to part 191 of title to: a bill of lading, air waybill, freight
19 so that the Appendix reflects waybill, Canadian Customs manifest,
or diversion to, the activities specified
previous regulatory amendments closing and/or cargo manifest. See 19 CFR
in paragraph (a)(1) of this section in
191.72(a). If the export is a mail
Russia. Specific notice is to be given four drawback offices. Finally, this
shipment, vessel supply, or transfer to a
only by, or at the direction of, the document amends CBP regulations to
foreign trade zone, other procedures to
Deputy Assistant Secretary for Export reflect the change from the legacy
establish exportation may apply. See 19
Administration. When such notice is agency name of U.S. Customs Service to
CFR 191.72 (c)–(e). Current CBP
provided orally, it will be followed by the current agency name of U.S.
regulations specify that the documents
a written notice within two working Customs and Border Protection and to
listed in paragraph (a) must be either
days signed by the Deputy Assistant make other non-substantive editorial
originally signed or certified copies
Secretary for Export Administration. changes.
thereof. See 19 CFR 191.72(a).
However, the absence of any such DATES: This final rule is effective on Additionally, certain claims subject to
notification does not excuse persons August 7, 2015. NAFTA require that the claimant
from compliance with the license FOR FURTHER INFORMATION CONTACT: For produce an originally signed document
requirements of paragraph (a)(1) of this legal aspects, Carrie L. Owens, Chief, or a certified copy of such document.
section. Entry Process & Duty Refunds Branch, See 19 CFR 181.47(b)(2)(ii)(G).
Regulations and Rulings, Office of Acquiring pen and ink signatures for
* * * * *
International Trade, (202) 325–0266. For the original documentation or certified
Dated: July 30, 2015. operational aspects, Celestine L. Harrell, copies of such documentation is time
Eric L. Hirschhorn, Chief, Post Release and Trade Processes consuming and often unrealistic for the
Under Secretary of Commerce for Industry Branch, Office of International Trade, trade. CBP realizes the difficulty of
and Security. (202) 863–6937. having to provide a pen and ink
[FR Doc. 2015–19274 Filed 8–6–15; 8:45 am] SUPPLEMENTARY INFORMATION: signature for documents when these
documents are issued electronically and
BILLING CODE 3510–33–P Background do not contain an actual pen and ink
rmajette on DSK2TPTVN1PROD with RULES
This document amends the U.S. signature. As a consequence, drawback
Customs and Border Protection (CBP) claims are often denied when claimants
regulations by: (1) Removing some of can produce only documentary
the requirements for drawback evidence that does not contain a
claimants to establish proof of signature or copies of such documents
exportation; (2) conforming Appendix B that are not certified.
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Document Created: 2015-12-15 10:57:29
Document Modified: 2015-12-15 10:57:29
| 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 August 7, 2015. | |
| Contact | For this Entity List-related change, contact the Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: [email protected] For the Russian industry sector sanctions referred to in this rule, 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 47402 | |
| RIN Number | 0694-AG66 | |
| CFR Citation | 15
CFR
744 15 CFR 746 | |
| CFR Associated | Exports; Reporting and Recordkeeping Requirements and Terrorism |
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