80_FR_70896 80 FR 70676 - Amendment to the Export Administration Regulations to Add XBS Epoxy System to the List of 0Y521 Series; Technical Amendment to Update Other 0Y521 Items

80 FR 70676 - Amendment to the Export Administration Regulations to Add XBS Epoxy System to the List of 0Y521 Series; Technical Amendment to Update Other 0Y521 Items

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 220 (November 16, 2015)

Page Range70676-70679
FR Document2015-28978

In this interim final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to make certain items subject to the EAR and to impose on those items a license requirement for export and reexport to all destinations, except Canada. Specifically, this rule classifies the specified XBS Epoxy System under Export Control Classification Number (ECCN) 0C521 on the Commerce Control List (CCL). As described in the final rule that established the 0Y521 series and that was published in the Federal Register on April 13, 2012, items are added to the 0Y521 series upon a determination by the Department of Commerce, with the concurrence of the Departments of Defense and State, that the items should be controlled for export because the items provide at least a significant military or intelligence advantage to the United States or foreign policy reasons justify control. The items identified in this rule are controlled for regional stability (RS) Column 1 reasons. The only license exception available for these items is for exports, reexports, and transfers (in-country) made by or consigned to a department or agency of the U.S. Government. In this rule, BIS also removes technology and software related to aircraft wing folding systems.

Federal Register, Volume 80 Issue 220 (Monday, November 16, 2015)
[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)]
[Rules and Regulations]
[Pages 70676-70679]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28978]


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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No.150825777-5777-01]
RIN 0694-AG70


Amendment to the Export Administration Regulations to Add XBS 
Epoxy System to the List of 0Y521 Series; Technical Amendment to Update 
Other 0Y521 Items

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule with request for comments.

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

SUMMARY: In this interim final rule, the Bureau of Industry and 
Security (BIS) amends the Export Administration Regulations (EAR) to 
make certain items subject to the EAR and to impose on those items a 
license requirement for export and reexport to all destinations, except 
Canada. Specifically, this rule classifies the specified XBS Epoxy 
System under Export Control Classification Number (ECCN) 0C521 on the 
Commerce Control List (CCL). As described in the final rule that 
established the 0Y521 series and that

[[Page 70677]]

was published in the Federal Register on April 13, 2012, items are 
added to the 0Y521 series upon a determination by the Department of 
Commerce, with the concurrence of the Departments of Defense and State, 
that the items should be controlled for export because the items 
provide at least a significant military or intelligence advantage to 
the United States or foreign policy reasons justify control. The items 
identified in this rule are controlled for regional stability (RS) 
Column 1 reasons. The only license exception available for these items 
is for exports, reexports, and transfers (in-country) made by or 
consigned to a department or agency of the U.S. Government. In this 
rule, BIS also removes technology and software related to aircraft wing 
folding systems.

DATES: This rule is effective November 16, 2015. Comments must be 
received by January 15, 2016. Comments requested on the addition of the 
0C521 item only.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. The identification number for this rulemaking is 
BIS-2015-0043.
     By email directly to: [email protected]. Include 
RIN 0694-AG70 in the subject line.
     By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 
0694-AG70.

FOR FURTHER INFORMATION CONTACT: Michael Rithmire, Electronics and 
Materials Division, Office of National Security and Technology Transfer 
Controls by phone at (202) 482-6105 or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    BIS established the ECCN 0Y521 series to identify items that 
warrant control on the CCL but are not yet identified in an existing 
ECCN (77 FR 22191, April 13, 2012). Items are added to the ECCN 0Y521 
series by the Department of Commerce, with the concurrence of the 
Departments of Defense and State, upon a determination that an item 
should be controlled because it provides at least a significant 
military or intelligence advantage to the United States or because 
foreign policy reasons justify such control. The ECCN 0Y521 series is a 
temporary holding classification with a limitation that while an item 
is temporarily classified under ECCN 0Y521, the U.S. Government works 
to adopt a control through the relevant multilateral regime(s), to 
determine an appropriate longer-term control over the item, or that the 
item does not warrant control on the CCL.
    Items classified under ECCN 0Y521, including the item identified in 
this interim final rule as an 0C521 item, remain so-classified for one 
year from the date a final rule identifying the item is published in 
the Federal Register amending the EAR, unless the item is re-classified 
under a different ECCN, under an EAR99 designation, or the 0Y521 
classification is extended. During this time, the U.S. Government 
determines whether it is appropriate to submit a proposed control to 
the applicable export control regime (e.g., the Wassenaar Arrangement) 
for potential multilateral control, with the understanding that 
multilateral controls are preferable when practical. An item's ECCN 
0Y521 classification may be extended for two one-year periods to 
provide time for the U.S. Government and multilateral regime(s) to 
reach agreement on controls for the item, and provided that the U.S. 
Government has submitted a proposal to obtain multilateral controls 
over the item. Further extension beyond three years may occur only if 
the Under Secretary for Industry and Security makes a determination 
that such extension is in the national security or foreign policy 
interests of the United States. An extension or re-extension, including 
a determination by the Under Secretary for Industry and Security, will 
be published in the Federal Register.

License Requirements, Policies and Exceptions

    The license requirements and policies for the ECCN 0Y521 series 
appear in Sec.  742.6(a)(7) of the EAR. ECCN 0Y521 items are subject to 
a nearly worldwide license requirement (i.e., for every country except 
Canada) with a case-by-case license review policy, through regional 
stability (RS Column 1) controls. The description and status of ECCN 
0Y521 items appear in Supplement No. 5 to part 774 of the EAR, along 
with any item-specific license exceptions, where applicable. Unless 
otherwise indicated, License Exception GOV is the only license 
exception available and is applicable to all ECCN 0Y521 series items, 
including those items identified in this document, if the item is 
within the scope of Sec.  740.11(b)(2)(ii) (Exports, reexports, and 
transfers (in-country) made by or consigned to a department or agency 
of the U.S. Government), as provided in Sec.  740.2(a)(14).

Addition of ECCN 0C521 Item: XBS Epoxy System

    In this rule, BIS amends the EAR to make the specified XBS Epoxy 
System subject to the EAR and impose a license requirement on the item. 
This item is being added to the 0Y521 series pursuant to a 
determination by the Department of Commerce, with the concurrence of 
the Departments of State and Defense, that the item should be 
controlled because it provides a significant military or intelligence 
advantage to the United States or because foreign policy reasons 
justify such controls. The specified XBS Epoxy System is classified 
under ECCN 0C521 No. 1. The control, which appears in the table found 
in Supplement No. 5 to part 774 of the EAR, covers an Epoxy system 
designed to obfuscate critical technology components against X-ray and 
terahertz microscopy imaging attempts.

License Applications for the New ECCN 0C521 Item

    License applications for this item may be submitted through SNAP-R 
in accordance with Sec.  748.6 of the EAR. Exporters are directed to 
include detailed descriptions and technical specifications with the 
license application, and identify the item as 0C521.

Technical Amendment: Removal of No. 3 0D521 and No. 2 0E521 Items, 
Aircraft Wing Folding Systems, From Supplement No. 5 to Part 774

    In this rule, BIS also removes references to aircraft wing folding 
systems ``software'' and related ``technology'' listed, prior to this 
rule, as entries No. 3 0D521 and No. 2 0E521, respectively, in 
Supplement No. 5 to part 774. The references to these items are 
obsolete because, in accordance with procedure established in the April 
13, 2012, final rule, the U.S. Government adopted a control through the 
relevant multilateral regime(s), which determined an appropriate 
longer-term control over the item. The wing fold system ``software'' is 
now controlled by ECCN 9D001, and the ``technology'' is controlled by 
ECCN 9E003.j on the CCL. A final rule published in the Federal Register 
May 21, 2015 (80 FR 29431), and which went into effect the same day, 
implemented the 2014 Wassenaar Plenary Agreements by establishing new 
controls on the items, rendering their 0Y521 status obsolete. BIS is 
not soliciting public comments on the removal provisions.
    The rule is being issued in interim final form because while the

[[Page 70678]]

government believes that it is in the national security interests of 
the United States to immediately implement these controls, it also 
wants to provide the interested public with an opportunity to comment 
on the new controls of the XBS Epoxy System. Comments may be submitted 
in accordance with the DATES and ADDRESSES sections of this rule.

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, 2015, 80 FR 48233 (August 11, 2015), 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, distribute 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 is 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 OMB 
control number. This rule affects two approved collections: (1) The 
Simplified Network Application Processing + System (control number 
0694-0088), which carries a burden hour estimate of 43.8 minutes, 
including the time necessary to submit license applications, among 
other things, as well as miscellaneous and other recordkeeping 
activities that account for 12 minutes per submission; and (2) License 
Exceptions and Exclusions (0694-0137). With these initial 0Y521 series 
items, BIS does not believe that this rule will materially increase the 
number of submissions under these collections.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring prior notice, 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, with the concurrence of the U.S. 
Departments of Defense and State, is implementing this rule because the 
item identified for the ECCN 0Y521 series in this rule provide a 
significant military or intelligence advantage to the United States. 
Immediate imposition of a license requirement is necessary to effect 
the national security and foreign policy goals of this rule. Immediate 
implementation will allow BIS to prevent exports of these items to 
users and for uses that pose a national security threat to the United 
States or its allies. If BIS delayed this rule to allow for prior 
notice and opportunity for public comment, the resulting delay in 
implementation would afford an opportunity for the export of these 
items to users and uses that pose such a national security threat, 
thereby undermining the purpose of the rule. In addition, if parties 
receive notice of the U.S. Government's intention to control these 
items under 0Y521 once a final rule was published, they might have an 
incentive to either accelerate orders of these items or attempt to have 
the items exported prior to the imposition of the control. In addition, 
prior notice and opportunity for public comment is unnecessary for the 
amendment to remove references to wing folding technology and software. 
The removal of the references updates Supplement No. 5 to part 774 and 
ensures that it accurately reflects the legal status of those items now 
classified under other ECCNs under the EAR. This amendment also serves 
to avoid confusing readers about the items' current status.
    Further, BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3). Immediate implementation of 
these changes will allow BIS to prevent exports of these items to users 
and for uses that pose a national security threat to the United States 
or its allies. If BIS delayed this rule to allow for a 30-day delay in 
effectiveness, the resulting delay in implementation would afford an 
opportunity for the export of these items to users and uses that pose 
such a national security threat, thereby undermining the purpose of the 
rule. BIS also finds good cause to waive the 30-delay in effectiveness 
for the implementation of the amendment to remove items because the 
amendment will assist in clarifying the current status of the wing 
folding technology and software, eliminating any possible confusion. 
Furthermore, the amendment is not a substantive change. 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. Although 
notice and opportunity for comment are not required, BIS is issuing 
this rule as an interim final rule with a request for comments. All 
comments must be in writing and submitted via one or more of the 
methods listed under the ADDRESSES caption to this document. All 
comments (including any personal identifiable information) will be 
available for public inspection and copying. Those wishing to comment 
anonymously may do so by submitting their comment via regulations.gov 
and leaving the fields for identifying information blank.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

PART 774--[AMENDED]

0
1. The authority citation for part 774 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. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Notice of August 7, 2015, 80 FR 48233 (August 11, 2015).

0
2. Supplement No. 5 to part 774 is revised to read as follows:

SUPPLEMENT NO. 5 TO PART 774--ITEMS CLASSIFIED UNDER ECCNS 0A521, 
0B521, 0C521, 0D521 AND 0E521

    The following table lists items subject to the EAR that are not 
listed elsewhere in the CCL, but which the Department of Commerce, 
with the concurrence of the Departments of Defense and State, has

[[Page 70679]]

identified warrant control for export or reexport because the items 
provide at least a significant military or intelligence advantage to 
the United States or for foreign policy reasons.

----------------------------------------------------------------------------------------------------------------
                                                                Date when the item will
      Item descriptor. Note: The          Date of initial or      be designated EAR99,
   description must match by model         subsequent  BIS       unless reclassified in   Item-specific license
 number or a broader descriptor that    classification  (ID =     another ECCN or the     exception eligibility
   does not necessarily need to be       initial date;  SD =    0Y521 classification is
           company specific                subsequent date)             reissued
----------------------------------------------------------------------------------------------------------------
                                    0A521. Systems, Equipment and Components
----------------------------------------------------------------------------------------------------------------
                                                   [RESERVED]
----------------------------------------------------------------------------------------------------------------
                                0B521. Test, Inspection and Production Equipment
----------------------------------------------------------------------------------------------------------------
                                                   [RESERVED]
----------------------------------------------------------------------------------------------------------------
                                                0C521. Materials
----------------------------------------------------------------------------------------------------------------
No. 1 XBS Epoxy system designed to     November 16, 2015 (ID).  November 16, 2016......  License Exception GOV
 obfuscate critical technology                                                            under Sec.
 components against x-ray and                                                             740.11(b)(2)(ii) only
 terahertz microscopy imaging
 attempts.
----------------------------------------------------------------------------------------------------------------
No. 2 [RESERVED].....................  [RESERVED].............  [RESERVED].............  [RESERVED]
----------------------------------------------------------------------------------------------------------------
                                                 0D521. Software
----------------------------------------------------------------------------------------------------------------
                                                   [RESERVED]
----------------------------------------------------------------------------------------------------------------
                                                0E521. Technology
----------------------------------------------------------------------------------------------------------------
                                                   [RESERVED]
----------------------------------------------------------------------------------------------------------------


    Dated: November 9, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-28978 Filed 11-13-15; 8:45 am]
 BILLING CODE 3510-33-P



                                                  70676            Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Rules and Regulations

                                                  rulemaking and the opportunity for                       0152 in Supplement No. 1 to part 730.                   U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
                                                  public participation are waived for good                 This change is necessary to ensure                      U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a;
                                                  cause because they are unnecessary and                   immediate, accurate and complete                        50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 22
                                                  contrary to the public interest. (See 5                  implementation of the purposes of the                   U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 CFR,
                                                                                                                                                                   1976 Comp., p. 114; E.O. 12002, 42 FR 35623,
                                                  U.S.C. 553(b)(B)). The changes                           August 26, 2015 final rule.                             3 CFR, 1977 Comp., p. 133; E.O. 12058, 43
                                                  contained in this rule are technical                       Further, no other law requires that a                 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
                                                  corrections of a previously published                    notice of proposed rulemaking and an                    12214, 45 FR 29783, 3 CFR, 1980 Comp., p.
                                                  final rule. This rule is necessary to                    opportunity for public comment be                       256; E.O. 12851, 58 FR 33181, 3 CFR, 1993
                                                  prevent confusion caused by the                          given for this final rule. Because a                    Comp., p. 608; E.O. 12854, 58 FR 36587, 3
                                                  continued inclusion in Supplement No.                    notice of proposed rulemaking and an                    CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR
                                                  1 to part 730 of references to the                       opportunity for public comment are not                  28205, 3 CFR, 1994 Comp., p. 899; E.O.
                                                  sections of the EAR that were removed                    required to be given for this rule under                12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
                                                  by the August 26, 2015 rule. Collection                  the Administrative Procedure Act or by                  950; E.O. 12947, 60 FR 5079, 3 CFR, 1995
                                                                                                                                                                   Comp., p. 356; E.O. 12981, 60 FR 62981, 3
                                                  number, ‘‘0607–0152,’’ needs to be                       any other law, the analytical
                                                                                                                                                                   CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR
                                                  revised for purposes of removing all the                 requirements of the Regulatory                          54079, 3 CFR, 1996 Comp., p. 219; E.O.
                                                  SCL provisions from the EAR.                             Flexibility Act (5 U.S.C. 601 et seq.) are              13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                  Therefore, this change is essential to                   not applicable. Therefore, this                         228; E.O. 13099, 63 FR 45167, 3 CFR, 1998
                                                  ensure the accurate and complete                         regulation is issued in final form.                     Comp., p. 208; E.O. 13222, 66 FR 44025, 3
                                                  implementation of the changes intended                                                                           CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR
                                                                                                           List of Subjects in CFR Part 730                        49079, 3 CFR, 2001 Comp., p. 786; E.O.
                                                  by the August 26, 2015 final rule.
                                                     The provision of the Administrative                     Administrative practice and                           13338, 69 FR 26751, 3 CFR, 2004 Comp., p
                                                                                                           procedure, Advisory committees,                         168; E.O. 13637 of March 8, 2013, 78 FR
                                                  Procedure Act (5 U.S.C. 553) requiring                                                                           16129 (March 13, 2013); Notice of September
                                                  a 30-day delay in effectiveness is also                  Exports, Reporting and recordkeeping
                                                                                                           requirements, Strategic and critical                    17, 2014, 79 FR 56475 (September 19, 2014);
                                                  waived for good cause. (5 U.S.C.                                                                                 Notice of November 7, 2014, 79 FR 67035
                                                  553(d)(3)). The correction contained in                  materials.
                                                                                                                                                                   (November 12, 2014); Notice of January 21,
                                                  this final rule is merely a technical                      For the reasons stated in the
                                                                                                                                                                   2015, 80 FR 3461 (January 22, 2015); Notice
                                                  correction necessitated by a                             preamble, part 730 of the Export                        of May 6, 2015, 80 FR 26815 (May 8, 2015);
                                                  typographical error in a previously                      Administration Regulations (15 CFR                      Notice of August 7, 2015, 80 FR 48233
                                                  published rule, for which a notice,                      parts 730–774) is amended as follows:                   (August 11, 2015); Notice of September 18,
                                                  comment and delay were completed.                                                                                2015, 80 FR 57281 (September 22, 2015).
                                                                                                           PART 730—[AMENDED]
                                                  The revisions made in this rule are                                                                              Supplement No. 1 to Part 730—
                                                  technical corrections which should be                    ■ 1. The authority citation for 15 CFR                  [Amended]
                                                  in place as soon as possible to avoid                    part 730 continues to read as follows:
                                                  confusion caused by the incorrect                          Authority: 50 U.S.C. app. 2401 et seq.; 50            ■ 2. Supplement No. 1 to part 730 is
                                                  inclusion of references to sections of the               U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.          amended by revising the entry for
                                                  EAR removed by the August 26, 2015                       7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note;           Collection number ‘‘0607–0152’’ to read
                                                  rule in OMB Collection number 0607–                      22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30              as follows:

                                                  SUPPLEMENT NO. 1 TO PART 730—INFORMATION COLLECTION REQUIREMENTS UNDER THE PAPERWORK REDUCTION ACT:
                                                                                         OMB CONTROL NUMBERS

                                                             *                       *                         *                      *                       *                      *                *

                                                       Collection No.                                                Title                                                    Reference in the EAR


                                                          *                         *                  *                    *                                *                   *                     *
                                                  0607–0152 .................   Automated Export System (AES) Program ....................................... §§ 740.1(d), 740.3(a)(3), 754.2(h), 754.4(c), 758.1,
                                                                                                                                                                758.2, and 758.3 of the EAR.



                                                    Dated: November 5, 2015.                               DEPARTMENT OF COMMERCE                                  ACTION:Interim final rule with request
                                                  Karen H. Nies-Vogel,                                                                                             for comments.
                                                  Director, Office of Exporter Services.                   Bureau of Industry and Security
                                                                                                                                                                   SUMMARY:    In this interim final rule, the
                                                  [FR Doc. 2015–29084 Filed 11–13–15; 8:45 am]
                                                                                                           15 CFR Part 774                                         Bureau of Industry and Security (BIS)
                                                  BILLING CODE 3510–33–P                                                                                           amends the Export Administration
                                                                                                           [Docket No.150825777–5777–01]                           Regulations (EAR) to make certain items
                                                                                                                                                                   subject to the EAR and to impose on
                                                                                                           RIN 0694–AG70                                           those items a license requirement for
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                                                                           Amendment to the Export                                 export and reexport to all destinations,
                                                                                                           Administration Regulations to Add                       except Canada. Specifically, this rule
                                                                                                           XBS Epoxy System to the List of 0Y521                   classifies the specified XBS Epoxy
                                                                                                           Series; Technical Amendment to                          System under Export Control
                                                                                                           Update Other 0Y521 Items                                Classification Number (ECCN) 0C521 on
                                                                                                                                                                   the Commerce Control List (CCL). As
                                                                                                           AGENCY:  Bureau of Industry and                         described in the final rule that
                                                                                                           Security, Commerce.                                     established the 0Y521 series and that


                                             VerDate Sep<11>2014    16:20 Nov 13, 2015   Jkt 238001   PO 00000     Frm 00008   Fmt 4700   Sfmt 4700   E:\FR\FM\16NOR1.SGM   16NOR1


                                                                   Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Rules and Regulations                                          70677

                                                  was published in the Federal Register                   Government works to adopt a control                   Addition of ECCN 0C521 Item: XBS
                                                  on April 13, 2012, items are added to                   through the relevant multilateral                     Epoxy System
                                                  the 0Y521 series upon a determination                   regime(s), to determine an appropriate                   In this rule, BIS amends the EAR to
                                                  by the Department of Commerce, with                     longer-term control over the item, or                 make the specified XBS Epoxy System
                                                  the concurrence of the Departments of                   that the item does not warrant control                subject to the EAR and impose a license
                                                  Defense and State, that the items should                on the CCL.                                           requirement on the item. This item is
                                                  be controlled for export because the                       Items classified under ECCN 0Y521,
                                                                                                                                                                being added to the 0Y521 series
                                                  items provide at least a significant                    including the item identified in this
                                                                                                                                                                pursuant to a determination by the
                                                  military or intelligence advantage to the               interim final rule as an 0C521 item,
                                                                                                          remain so-classified for one year from                Department of Commerce, with the
                                                  United States or foreign policy reasons                                                                       concurrence of the Departments of State
                                                  justify control. The items identified in                the date a final rule identifying the item
                                                                                                          is published in the Federal Register                  and Defense, that the item should be
                                                  this rule are controlled for regional                                                                         controlled because it provides a
                                                  stability (RS) Column 1 reasons. The                    amending the EAR, unless the item is
                                                                                                          re-classified under a different ECCN,                 significant military or intelligence
                                                  only license exception available for                                                                          advantage to the United States or
                                                  these items is for exports, reexports, and              under an EAR99 designation, or the
                                                                                                          0Y521 classification is extended. During              because foreign policy reasons justify
                                                  transfers (in-country) made by or                                                                             such controls. The specified XBS Epoxy
                                                  consigned to a department or agency of                  this time, the U.S. Government
                                                                                                          determines whether it is appropriate to               System is classified under ECCN 0C521
                                                  the U.S. Government. In this rule, BIS                                                                        No. 1. The control, which appears in the
                                                  also removes technology and software                    submit a proposed control to the
                                                                                                          applicable export control regime (e.g.,               table found in Supplement No. 5 to part
                                                  related to aircraft wing folding systems.                                                                     774 of the EAR, covers an Epoxy system
                                                  DATES: This rule is effective November                  the Wassenaar Arrangement) for
                                                                                                          potential multilateral control, with the              designed to obfuscate critical
                                                  16, 2015. Comments must be received                                                                           technology components against X-ray
                                                  by January 15, 2016. Comments                           understanding that multilateral controls
                                                                                                          are preferable when practical. An item’s              and terahertz microscopy imaging
                                                  requested on the addition of the 0C521                                                                        attempts.
                                                  item only.                                              ECCN 0Y521 classification may be
                                                                                                          extended for two one-year periods to                  License Applications for the New ECCN
                                                  ADDRESSES: You may submit comments
                                                                                                          provide time for the U.S. Government                  0C521 Item
                                                  by any of the following methods:
                                                                                                          and multilateral regime(s) to reach
                                                     • Federal eRulemaking Portal: http://                                                                        License applications for this item may
                                                                                                          agreement on controls for the item, and
                                                  www.regulations.gov. The identification                                                                       be submitted through SNAP–R in
                                                                                                          provided that the U.S. Government has
                                                  number for this rulemaking is BIS–                                                                            accordance with § 748.6 of the EAR.
                                                                                                          submitted a proposal to obtain
                                                  2015–0043.                                                                                                    Exporters are directed to include
                                                     • By email directly to:                              multilateral controls over the item.
                                                                                                          Further extension beyond three years                  detailed descriptions and technical
                                                  publiccomments@bis.doc.gov. Include                                                                           specifications with the license
                                                  RIN 0694–AG70 in the subject line.                      may occur only if the Under Secretary
                                                                                                          for Industry and Security makes a                     application, and identify the item as
                                                     • By mail or delivery to Regulatory                                                                        0C521.
                                                  Policy Division, Bureau of Industry and                 determination that such extension is in
                                                  Security, U.S. Department of Commerce,                  the national security or foreign policy               Technical Amendment: Removal of No.
                                                  Room 2099B, 14th Street and                             interests of the United States. An                    3 0D521 and No. 2 0E521 Items, Aircraft
                                                  Pennsylvania Avenue NW., Washington,                    extension or re-extension, including a                Wing Folding Systems, From
                                                  DC 20230. Refer to RIN 0694–AG70.                       determination by the Under Secretary                  Supplement No. 5 to Part 774
                                                                                                          for Industry and Security, will be
                                                  FOR FURTHER INFORMATION CONTACT:                                                                                 In this rule, BIS also removes
                                                                                                          published in the Federal Register.
                                                  Michael Rithmire, Electronics and                                                                             references to aircraft wing folding
                                                  Materials Division, Office of National                  License Requirements, Policies and                    systems ‘‘software’’ and related
                                                  Security and Technology Transfer                        Exceptions                                            ‘‘technology’’ listed, prior to this rule, as
                                                  Controls by phone at (202) 482–6105 or                     The license requirements and policies              entries No. 3 0D521 and No. 2 0E521,
                                                  by email at Michael.Rithmire@                           for the ECCN 0Y521 series appear in                   respectively, in Supplement No. 5 to
                                                  bis.doc.gov.                                            § 742.6(a)(7) of the EAR. ECCN 0Y521                  part 774. The references to these items
                                                  SUPPLEMENTARY INFORMATION:                              items are subject to a nearly worldwide               are obsolete because, in accordance with
                                                                                                          license requirement (i.e., for every                  procedure established in the April 13,
                                                  Background                                              country except Canada) with a case-by-                2012, final rule, the U.S. Government
                                                    BIS established the ECCN 0Y521                        case license review policy, through                   adopted a control through the relevant
                                                  series to identify items that warrant                   regional stability (RS Column 1)                      multilateral regime(s), which
                                                  control on the CCL but are not yet                      controls. The description and status of               determined an appropriate longer-term
                                                  identified in an existing ECCN (77 FR                   ECCN 0Y521 items appear in                            control over the item. The wing fold
                                                  22191, April 13, 2012). Items are added                 Supplement No. 5 to part 774 of the                   system ‘‘software’’ is now controlled by
                                                  to the ECCN 0Y521 series by the                         EAR, along with any item-specific                     ECCN 9D001, and the ‘‘technology’’ is
                                                  Department of Commerce, with the                        license exceptions, where applicable.                 controlled by ECCN 9E003.j on the CCL.
                                                  concurrence of the Departments of                       Unless otherwise indicated, License                   A final rule published in the Federal
                                                  Defense and State, upon a determination                 Exception GOV is the only license                     Register May 21, 2015 (80 FR 29431),
                                                  that an item should be controlled                       exception available and is applicable to              and which went into effect the same
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                  because it provides at least a significant              all ECCN 0Y521 series items, including                day, implemented the 2014 Wassenaar
                                                  military or intelligence advantage to the               those items identified in this document,              Plenary Agreements by establishing new
                                                  United States or because foreign policy                 if the item is within the scope of                    controls on the items, rendering their
                                                  reasons justify such control. The ECCN                  § 740.11(b)(2)(ii) (Exports, reexports,               0Y521 status obsolete. BIS is not
                                                  0Y521 series is a temporary holding                     and transfers (in-country) made by or                 soliciting public comments on the
                                                  classification with a limitation that                   consigned to a department or agency of                removal provisions.
                                                  while an item is temporarily classified                 the U.S. Government), as provided in                     The rule is being issued in interim
                                                  under ECCN 0Y521, the U.S.                              § 740.2(a)(14).                                       final form because while the


                                             VerDate Sep<11>2014   16:20 Nov 13, 2015   Jkt 238001   PO 00000   Frm 00009   Fmt 4700   Sfmt 4700   E:\FR\FM\16NOR1.SGM   16NOR1


                                                  70678            Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Rules and Regulations

                                                  government believes that it is in the                   series items, BIS does not believe that               national security threat, thereby
                                                  national security interests of the United               this rule will materially increase the                undermining the purpose of the rule.
                                                  States to immediately implement these                   number of submissions under these                     BIS also finds good cause to waive the
                                                  controls, it also wants to provide the                  collections.                                          30-delay in effectiveness for the
                                                  interested public with an opportunity to                   3. This rule does not contain policies             implementation of the amendment to
                                                  comment on the new controls of the                      with Federalism implications as that                  remove items because the amendment
                                                  XBS Epoxy System. Comments may be                       term is defined under E.O. 13132.                     will assist in clarifying the current
                                                  submitted in accordance with the DATES                     4. The provisions of the                           status of the wing folding technology
                                                  and ADDRESSES sections of this rule.                    Administrative Procedure Act (5 U.S.C.                and software, eliminating any possible
                                                                                                          553) requiring prior notice, the                      confusion. Furthermore, the amendment
                                                  Export Administration Act                               opportunity for public comment and a                  is not a substantive change. Because a
                                                    Although the Export Administration                    delay in effective date are inapplicable              notice of proposed rulemaking and an
                                                  Act expired on August 20, 2001, the                     because this regulation involves a                    opportunity for public comment are not
                                                  President, through Executive Order                      military or foreign affairs function of the           required to be given for this rule by 5
                                                  13222 of August 17, 2001, 3 CFR, 2001                   United States (See 5 U.S.C. 553(a)(1)).               U.S.C. 553, or by any other law, the
                                                  Comp., p. 783 (2002), as amended by                     BIS, with the concurrence of the U.S.                 analytical requirements of the
                                                  Executive Order 13637 of March 8,                       Departments of Defense and State, is                  Regulatory Flexibility Act, 5 U.S.C. 601
                                                  2013, 78 FR 16129 (March 13, 2013) and                  implementing this rule because the item               et seq., are not applicable. Accordingly,
                                                  as extended by the Notice of August 7,                  identified for the ECCN 0Y521 series in               no regulatory flexibility analysis is
                                                  2015, 80 FR 48233 (August 11, 2015),                    this rule provide a significant military              required and none has been prepared.
                                                  has continued the Export                                or intelligence advantage to the United               Although notice and opportunity for
                                                  Administration Regulations in effect                    States. Immediate imposition of a                     comment are not required, BIS is issuing
                                                  under the International Emergency                       license requirement is necessary to                   this rule as an interim final rule with a
                                                  Economic Powers Act. BIS continues to                   effect the national security and foreign              request for comments. All comments
                                                  carry out the provisions of the Export                  policy goals of this rule. Immediate                  must be in writing and submitted via
                                                  Administration Act, as appropriate and                  implementation will allow BIS to                      one or more of the methods listed under
                                                  to the extent permitted by law, pursuant                prevent exports of these items to users               the ADDRESSES caption to this
                                                  to Executive Order 13222 as amended                     and for uses that pose a national                     document. All comments (including any
                                                  by Executive Order 13637.                               security threat to the United States or its           personal identifiable information) will
                                                                                                          allies. If BIS delayed this rule to allow             be available for public inspection and
                                                  Rulemaking Requirements
                                                                                                          for prior notice and opportunity for                  copying. Those wishing to comment
                                                     1. Executive Orders 13563 and 12866                  public comment, the resulting delay in
                                                  direct agencies to assess all costs and                                                                       anonymously may do so by submitting
                                                                                                          implementation would afford an
                                                  benefits of available regulatory                                                                              their comment via regulations.gov and
                                                                                                          opportunity for the export of these items
                                                  alternatives and, if regulation is                                                                            leaving the fields for identifying
                                                                                                          to users and uses that pose such a
                                                  necessary, to select regulatory                                                                               information blank.
                                                                                                          national security threat, thereby
                                                  approaches that maximize net benefits                   undermining the purpose of the rule. In               List of Subjects in 15 CFR Part 774
                                                  (including potential economic,                          addition, if parties receive notice of the              Exports, Reporting and recordkeeping
                                                  environmental, public health and safety                 U.S. Government’s intention to control                requirements.
                                                  effects, distribute impacts, and equity).               these items under 0Y521 once a final
                                                  Executive Order 13563 emphasizes the                                                                            Accordingly, part 774 of the Export
                                                                                                          rule was published, they might have an
                                                  importance of quantifying both costs                                                                          Administration Regulations (15 CFR
                                                                                                          incentive to either accelerate orders of
                                                  and benefits, of reducing costs, of                                                                           parts 730–774) is amended as follows:
                                                                                                          these items or attempt to have the items
                                                  harmonizing rules, and of promoting                     exported prior to the imposition of the               PART 774—[AMENDED]
                                                  flexibility. This rule has been                         control. In addition, prior notice and
                                                  determined to be not significant for                    opportunity for public comment is                     ■ 1. The authority citation for part 774
                                                  purposes of Executive Order 12866.                      unnecessary for the amendment to                      continues to read as follows:
                                                     2. Notwithstanding any other                         remove references to wing folding                       Authority: 50 U.S.C. app. 2401 et seq.; 50
                                                  provision of law, no person is required                 technology and software. The removal                  U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                                  to respond to, nor is subject to a penalty              of the references updates Supplement                  7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
                                                  for failure to comply with, a collection                No. 5 to part 774 and ensures that it                 seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u);
                                                  of information, subject to the                          accurately reflects the legal status of               42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C.
                                                  requirements of the Paperwork                           those items now classified under other                1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
                                                  Reduction Act of 1995 (44 U.S.C. 3501                   ECCNs under the EAR. This amendment                   U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
                                                  et seq.) (PRA), unless that collection of               also serves to avoid confusing readers                13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
                                                  information displays a currently valid                                                                        228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                                                                          about the items’ current status.                      Comp., p. 783; Notice of August 7, 2015, 80
                                                  OMB control number. This rule affects                      Further, BIS finds good cause to                   FR 48233 (August 11, 2015).
                                                  two approved collections: (1) The                       waive the 30-day delay in effectiveness
                                                  Simplified Network Application                                                                                ■ 2. Supplement No. 5 to part 774 is
                                                                                                          under 5 U.S.C. 553(d)(3). Immediate
                                                  Processing + System (control number                     implementation of these changes will                  revised to read as follows:
                                                  0694–0088), which carries a burden                      allow BIS to prevent exports of these                 SUPPLEMENT NO. 5 TO PART 774—
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                  hour estimate of 43.8 minutes, including                items to users and for uses that pose a               ITEMS CLASSIFIED UNDER ECCNS
                                                  the time necessary to submit license                    national security threat to the United                0A521, 0B521, 0C521, 0D521 AND
                                                  applications, among other things, as                    States or its allies. If BIS delayed this             0E521
                                                  well as miscellaneous and other                         rule to allow for a 30-day delay in                     The following table lists items subject to
                                                  recordkeeping activities that account for               effectiveness, the resulting delay in                 the EAR that are not listed elsewhere in the
                                                  12 minutes per submission; and (2)                      implementation would afford an                        CCL, but which the Department of
                                                  License Exceptions and Exclusions                       opportunity for the export of these items             Commerce, with the concurrence of the
                                                  (0694–0137). With these initial 0Y521                   to users and uses that pose such a                    Departments of Defense and State, has



                                             VerDate Sep<11>2014   16:20 Nov 13, 2015   Jkt 238001   PO 00000   Frm 00010   Fmt 4700   Sfmt 4700   E:\FR\FM\16NOR1.SGM   16NOR1


                                                                    Federal Register / Vol. 80, No. 220 / Monday, November 16, 2015 / Rules and Regulations                                                             70679

                                                  identified warrant control for export or                        to the United States or for foreign policy
                                                  reexport because the items provide at least a                   reasons.
                                                  significant military or intelligence advantage

                                                                                                                                    Date of initial or            Date when the item will be
                                                                       Item descriptor.                                               subsequent                  designated EAR99, unless
                                                   Note: The description must match by model number or                                                                                                  Item-specific license
                                                                                                                                   BIS classification               reclassified in another
                                                   a broader descriptor that does not necessarily need to                                                                                                exception eligibility
                                                                                                                                   (ID = initial date;            ECCN or the 0Y521 classi-
                                                                   be company specific                                           SD = subsequent date)                fication is reissued

                                                                                                                 0A521. Systems, Equipment and Components

                                                                                                                                       [RESERVED]

                                                                                                             0B521. Test, Inspection and Production Equipment

                                                                                                                                       [RESERVED]

                                                                                                                                     0C521. Materials

                                                  No. 1 XBS Epoxy system designed to obfuscate critical                        November 16, 2015 (ID) ...         November 16, 2016 ...........      License Exception GOV
                                                    technology components against x-ray and terahertz                                                                                                  under § 740.11(b)(2)(ii)
                                                    microscopy imaging attempts.                                                                                                                       only

                                                  No. 2 [RESERVED] .........................................................   [RESERVED] .....................   [RESERVED] .....................   [RESERVED]

                                                                                                                                     0D521. Software

                                                                                                                                       [RESERVED]

                                                                                                                                   0E521. Technology

                                                                                                                                       [RESERVED]



                                                    Dated: November 9, 2015.                                      of tobacco products under the Family                        reference 3. We are also placing a
                                                  Kevin J. Wolf,                                                  Smoking Prevention and Tobacco                              corrected copy of the rule in the docket.
                                                  Assistant Secretary for Export                                  Control Act (Tobacco Control Act). The                        In FR Doc. 2015–24219, appearing on
                                                  Administration.                                                 final rule also included amendments to                      page 57531 in the Federal Register of
                                                  [FR Doc. 2015–28978 Filed 11–13–15; 8:45 am]                    certain environmental impact                                Thursday, September 24, 2015 (80 FR
                                                  BILLING CODE 3510–33–P                                          regulations to include tobacco products,                    57531), FDA is making the following
                                                                                                                  where appropriate, in light of its                          corrections:
                                                                                                                  authority under the Tobacco Control
                                                                                                                  Act.                                                          1. On page 57533, in the second
                                                  DEPARTMENT OF HEALTH AND                                                                                                    column, under the Response for
                                                                                                                     The document published with
                                                  HUMAN SERVICES                                                                                                              Comment 1, add ‘‘(Ref. 3)’’ at the end of
                                                                                                                  technical errors in reference numbers
                                                                                                                                                                              the second sentence.
                                                  Food and Drug Administration                                    cited in the document. This document
                                                                                                                  corrects those errors. We are placing a                       2. On page 57535, in the first column,
                                                                                                                  corrected copy of the rule in the docket.                   under section IX, ‘‘2. Statement of
                                                  21 CFR Part 25
                                                                                                                  DATES: Effective on November 16, 2015.
                                                                                                                                                                              RADM David Ashley, Ph.D. and
                                                  [Docket No. FDA–2013–N–1282]                                                                                                Hoshing Chang, Ph.D., ‘Impact of
                                                                                                                  FOR FURTHER INFORMATION CONTACT:                            Tobacco Products on the
                                                  National Environmental Policy Act;                              Katherine Collins, Center for Tobacco                       Environment.’ ’’ is corrected to read ‘‘2.
                                                  Environmental Assessments for                                   Products, Food and Drug                                     ‘Final Regulatory Impact Analysis,’
                                                  Tobacco Products; Categorical                                   Administration, Document Control                            Food and Drug Administration,
                                                  Exclusions; Correction                                          Center, Bldg. 71, Rm. G335, 10903 New                       available at http://www.fda.gov/About
                                                                                                                  Hampshire Ave., Silver Spring, MD                           FDA/ReportsManualsForms/Reports/
                                                  AGENCY:      Food and Drug Administration,                      20993–0002, 877–287–1373, CTP                               EconomicAnalyses/default.htm.’
                                                  HHS.                                                            Regulations@fda.hhs.gov.
                                                                                                                                                                                3. On page 57535, in the first column,
                                                  ACTION:     Final rule; correction.                             SUPPLEMENTARY INFORMATION: FDA is                           under section IX, add ‘‘3. Statement of
                                                                                                                  correcting the preamble to the                              RADM David Ashley, Ph.D. and
                                                  SUMMARY:   The Food and Drug                                    September 24, 2015 (80 FR 57531), final                     Hoshing Chang, Ph.D., ‘Impact of
                                                  Administration (FDA or we) is                                   rule entitled, ‘‘National Environmental                     Tobacco Products on the Environment.’
                                                  correcting the preamble to a final rule
asabaliauskas on DSK5VPTVN1PROD with RULES




                                                                                                                  Policy Act; Environmental Assessments
                                                  that appeared in the Federal Register of                        for Tobacco Products; Categorical                             Dated: November 9, 2015.
                                                  September 24, 2015. This final rule                             Exclusions.’’ The document published                        Leslie Kux,
                                                  provided FDA with categorical                                   with three technical errors in reference                    Associate Commissioner for Policy.
                                                  exclusions from the requirement to                              numbers cited in the document. This                         [FR Doc. 2015–28848 Filed 11–13–15; 8:45 am]
                                                  prepare environmental assessments for                           document corrects those errors. We are                      BILLING CODE 4164–01–P
                                                  certain actions regarding the marketing                         correcting reference 2 and adding new



                                             VerDate Sep<11>2014      17:29 Nov 13, 2015     Jkt 238001    PO 00000      Frm 00011    Fmt 4700   Sfmt 4700   E:\FR\FM\16NOR1.SGM       16NOR1



Document Created: 2015-12-14 14:12:46
Document Modified: 2015-12-14 14:12:46
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule with request for comments.
DatesThis rule is effective November 16, 2015. Comments must be received by January 15, 2016. Comments requested on the addition of the 0C521 item only.
ContactMichael Rithmire, Electronics and Materials Division, Office of National Security and Technology Transfer Controls by phone at (202) 482-6105 or by email at [email protected]
FR Citation80 FR 70676 
RIN Number0694-AG70
CFR AssociatedExports and Reporting and Recordkeeping Requirements

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR