80 FR 8520 - Revisions to License Exception Availability for Consumer Communications Devices and Licensing Policy for Civil Telecommunications-Related Items Such as Infrastructure Regarding Sudan
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 80, Issue 32 (February 18, 2015)
Bureau of Industry and Security
Federal Register Volume 80, Issue 32 (February 18, 2015)
| Page Range | 8520-8524 | |
| FR Document | 2015-03329 |
[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)] [Rules and Regulations] [Pages 8520-8524] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-03329] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 740 and 742 [Docket No. 140812661-4661-01] RIN 0694-AG24 Revisions to License Exception Availability for Consumer Communications Devices and Licensing Policy for Civil Telecommunications-Related Items Such as Infrastructure Regarding Sudan AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule amends the Export Administration Regulations to revise the general licensing policy of denial to one of case-by-case licensing for exports and reexports to Sudan of telecommunications equipment and associated computers, software, and technology for civil end use, including items useful for the development of civil telecommunications network [[Page 8521]] infrastructure. It also revises License Exception Consumer Communications Devices (CCD), which previously applied only to consumer communications devices to Cuba, to authorize exports and reexports of such devices to Sudan. Additionally, it makes minor technical changes to the list of items that are eligible for both Sudan and Cuba under the license exception. This rule also makes changes to License Exception Temporary Imports, Exports, Reexports and Transfers (in- country) (TMP) in light of the changes to License Exception CCD. Finally, it removes a license requirement for reexports to Sudan of certain telecommunications software. BIS is making these changes consistent with the U.S. Government's commitment to the advancement of the free flow of information to, from, and within Sudan, including during a national dialogue. DATES: The rule is effective February 18, 2015. FOR FURTHER INFORMATION CONTACT: Theodore Curtin, telephone (202) 482- 4252, email theodore.curtin@bis.doc.gov. SUPPLEMENTARY INFORMATION: Background Section 742.10 of the Export Administration Regulations (EAR) requires a license for antiterrorism reasons for the export and reexport of most items on the Commerce Control List, Supp. 1 to part 774, to Sudan in keeping with Sudan's designation as a state sponsor of terrorism. These items include certain consumer communication devices and related software and telecommunications infrastructure items that do not require a license for export or reexport to most destinations. Prior to publication of this rule, the EAR imposed a general policy of denial on applications for export or reexport of many of these items to Sudan. This rule modifies that policy to one of case-by-case review with respect to telecommunications equipment and associated computers, software and technology for civil end use, including items useful for the development of civil telecommunications network infrastructure. This rule also makes certain telecommunications software that was subject to a reexport license requirement prior to this rule's publication eligible for reexport to Sudan without a license and authorizes use of a license exception to export or reexport consumer communications devices to Sudan. This rule is being published simultaneously with a Department of the Treasury, Office of Foreign Assets Control general license in the Sudanese Sanctions Regulations (31 CFR part 538) for export or reexport of certain services, hardware, and software incident to personal communications to Sudan. BIS is publishing this rule after consultations with the Department of State to facilitate communication and the free flow of information among the Sudanese people, including by providing them with access to communications tools. Specific Changes Made by This Rule Expansion of License Exception Consumer Communication Devices (CCD) and Implementation of Conforming Change to License Temporary Imports, Exports, Reexports and Transfers (In-Country) (TMP) This rule revises Sec. 740.19 of the EAR (License Exception CCD) to add Sudan as an eligible destination. This license exception authorizes export and reexport of consumer communications devices (commodities such as computers, communications equipment and related items including personal computers, mobile phones, televisions, radios and digital cameras) that are widely available for retail purchase and that are commonly used to exchange information and facilitate interpersonal communications, as well as certain telecommunications- and information security-related software. Prior to publication of this rule, Cuba was the only eligible destination under License Exception CCD. This rule also makes some additions and other changes to the license exception related to the addition of Sudan. The changes related to Sudan are:Adding certain Global Positioning System receivers or similar satellite receivers as eligible items for export and reexport to Sudan under this license exception; and Limiting availability of the license exception to certain consumer software that is distributed free of charge in situations where the government of Sudan is the end user. Many of the items eligible for export and reexport under this license exception are designated EAR99. Consequently, prior to the publication of this rule, they did not require a license from BIS for export or reexport to Sudan under most circumstances (i.e., circumstances that do not trigger end-use or end-user concerns under part 744 of the EAR). Similarly, commodities classified under Export Control Classification Number (ECCN) 5A992 generally did not require a license from BIS for reexport to Sudan in the absence of part 744- related end-use and end-user concerns. The publication of this rule does not change these two general practices. Adding Sudan to License Exception CCD as an eligible destination does not impose a license requirement for such items. However, the license exception would be available for the export or reexport to Sudan of items listed on the CCL that would otherwise require a license. BIS is making these changes to License Exception CCD to facilitate the supplying of communications capabilities to people in Sudan in support of the U.S. Government's policy to promote the Sudanese people's communication among themselves and with the outside world, including during a national dialogue where the Sudanese people may participate in broad discussions to address their longstanding concerns regarding governance. This rule is intended to facilitate inclusive and broad participation in such a dialogue by making the necessary communications tools available to the Sudanese people. These changes are being made in coordination with a general license being published simultaneously by the Department of the Treasury, Office of Foreign Assets Control and added to the Sudanese Sanctions Regulations (31 CFR part 538) that generally authorizes the export and reexport to Sudan of certain services, hardware, and software incident to personal communications. Changes to License Exception CCD Affecting Items Eligible for Cuba and Sudan This rule adds a note that defines the term ``consumer'' for purposes of paragraph (b), which applies the term ``consumer'' when describing the commodities and software in paragraphs (b)(1)-- computers, (b)(2)--disk drives and solid state storage equipment, (b)(12)--information security equipment, software and peripherals and (b)(17)--software. This addition is not a substantive change to the scope of License Exception CCD. This addition emphasizes the consistency of this rule with the related general license being published simultaneously by the Department of the Treasury, Office of Foreign Assets Control, which includes this definition of ``consumer'' in connection with commodities and software. Conforming Change to License Exception TMP This rule also removes the provision of License Exception TMP (Sec. 740.9(a)(2) of the EAR) related to tools of trade being temporarily taken to Sudan for a specific class of persons for certain specified purposes (generally, [[Page 8522]] temporary exports and reexports by non-governmental organizations and related individuals, including employees and contractors, for development or humanitarian purposes) because it is no longer necessary. With the changes made by this rule, License Exception CCD now authorizes all of the exports and reexports that were authorized by that provision of License Exception TMP without the limitations imposed by License Exception TMP on duration, class of persons who may use the license exception, and end use. Certain Telecommunications Software Made Eligible for Reexport to Sudan Without a License This rule makes software controlled under ECCN 5D992.b or .c eligible for reexport to Sudan without a license from BIS. Software controlled under ECCN 5D992.b has the characteristics of, or performs or simulates the functions of, telecommunications equipment and information security equipment controlled under ECCN 5A992.a or .b. Commodities controlled under ECCN 5A992 were eligible for reexport to Sudan without a license from BIS prior to the publication of this rule. This change makes software that shares the characteristics of and/or performs or simulates the same functions as the hardware (commodities) eligible for reexport to Sudan on the same terms as the commodities themselves. Software controlled under ECCN 5D992.c includes mass market software such as mobile apps that may promote personal communications by the Sudanese people. Adoption of Case-by-Case License Application Review Policy This rule revises the statement of antiterrorism licensing policy for Sudan set forth in Sec. 742.10 of the EAR to provide that license applications for export or reexport to Sudan of ``telecommunications equipment and associated computers, software and technology for civil end use, including items useful for the development of civil telecommunications network infrastructure'' will be considered on a case-by-case basis rather than being subject to a general policy of denial. This change is being made to allow BIS and the other agencies that review such applications to further U.S. government policy of advancing the free flow of information to, from and within Sudan and to facilitate the Sudanese people's communications among themselves and with the outside world. BIS recognizes the importance of adequate civil telecommunications network infrastructural capability to enable the Sudanese people to engage in secure, effective, and reliable personal communications. 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). This rule does not impose any regulatory burden on the public and is consistent with the goals of Executive Order 13563. This rule has been determined to be significant for purposes of Executive Order 12866. 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person 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 rule involves a collection of information approved under OMB control number 0694-0088--Simplified Network Application Processing+ System (SNAP+) and the Multipurpose Export License Application which carries an annual estimated burden of 31,833 hours. BIS believes that this rule will have no material impact on that burden. To the extent that it has any impact at all, the impact would be to reduce the burden because this rule makes some transactions that would otherwise require a license eligible for a license exception. 3. This rule does not contain policies with Federalism implications as that term is defined under Executive Order 13132. 4. BIS finds good cause under 5 U.S.C. 553(b)(B) to waive prior notice of proposed rulemaking and the opportunity for public comment because it is impracticable and contrary to the public interest. BIS is publishing this rule as part of a State Department-led initiative to promote the free flow of information and to facilitate communications by the Sudanese people. This rule supports that initiative by reducing the procedural requirements needed to send personal communications devices, such as mobile phones, that are the instruments of modern communications to Sudan. Ensuring that the Sudanese people have tools to communicate freely is particularly vital. In a joint statement issued on September 18, 2014, the United States, the United Kingdom, and Norway reiterated their ``support for a mediation architecture that facilitates both resolution of conflict and a comprehensive process of national dialogue.'' The time needed to conduct a notice and public comment would thwart the purpose of this rule, which is to enhance communications, including during a national dialogue period. Consistent with the initiative, this rule amends the EAR to allow case-by-case review of license applications to send telecommunications-related items, including items useful for the development of civil telecommunications infrastructure, to Sudan. In coordination with BIS, the Department of the Treasury, Office of Foreign Assets Control (OFAC) is amending the Sudanese Sanctions Regulations (31 CFR part 538) to authorize similar transactions involving the exportation of certain services, software, and hardware incident to personal communications. The time that would be required for notice and opportunity for public comment required by 5 U.S.C. part 553 for BIS's rule would undermine the opportunity for enhanced communications and information flow, thereby causing the rule to fail to meet the objective of promoting the Sudanese people's ability to communicate in a free, robust, and secure manner. Delay in publication of this rule would be contrary to the public interest because it would undermine the ability of the Sudanese people to participate fully in a national dialogue. BIS also finds good cause under 5 U.S.C. 553(d)(3) to waive the 30- day delay in effectiveness. This rule amends the EAR to allow case-by- case review of license applications to send telecommunications-related items, including items useful for the development of civil telecommunications infrastructure, to Sudan. The 30-day delay in effectiveness otherwise required under 5 U.S.C. 553 would undermine the opportunity for enhanced communications and information flow, thereby causing the rule to fail in its objective, which is to promote the Sudanese people's ability to communicate in a free, robust, and secure manner including during a national dialogue. This final rule is being implemented with immediate effectiveness to be concurrent with OFAC's publication of its regulatory changes, which are also being made effective upon publication. Prompt, simultaneous publication is important in light of the fact that certain [[Page 8523]] transactions with Sudan require authorization under both the EAR and the Sudanese Sanctions Regulations. For example, an export of an item might require an export license from BIS and a separate license from OFAC. Payment for the export might also require authorization from OFAC. Simultaneous publication would permit effective implementation of the changes to the two agencies' regulations. In particular, it would ensure that an export transaction authorized under OFAC's general license pertaining to certain software, hardware, and services incident to personal communications would be eligible for a license exception under the EAR rather than requiring a license from BIS, thereby effectuating the U.S. Government's policy to advance personal communications in Sudan. List of Subjects 15 CFR Part 740 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 742 Exports, Terrorism. For the reasons set forth in the preamble, the Export Administration Regulations (15 CFR parts 730-774) are amended as follows: PART 740--[AMENDED] 0 1. The authority citation for 15 CFR part 740 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2014, 79 FR 46959 (Aug. 11, 2014). Sec. 740.9 [Amended] 0 2. Section 740.9 is amended by: 0 a. Removing the semicolon and the phrase ``for Sudan, see paragraph (a)(2) of this section'' from the first sentence of paragraph (a)(1); and 0 b. Removing and reserving paragraph (a)(2). 0 3. Section 740.19 is amended by: 0 a. Revising paragraph (a); 0 b. Revising paragraph (b) introductory text; 0 c. Removing the word ``and'' from the end of paragraph (b)(16); 0 d. Removing the period from the end of paragraph (b)(17) and adding in its place a semicolon followed by the word ``and''; 0 e. Adding paragraph (b)(18); 0 f. Adding a note to paragraph (b); and 0 g. Revising paragraph (c). The revisions and additions read as follows: Sec. 740.19 Consumer Communications Devices (CCD). (a) Authorizations. This section authorizes the export or reexport of commodities and software, either sold or donated, to Cuba or Sudan subject to the requirements stated herein. This section does not authorize U.S.-owned or -controlled entities in third countries to engage in reexports of foreign produced commodities to Cuba for which no license would be issued by the Department of the Treasury pursuant to 31 CFR 515.559. (b) Eligible commodities and software. Commodities and software in paragraphs (b)(1) through (17) of this section are eligible for export or reexport under this section to Cuba or Sudan. Commodities in paragraph (b)(18) of this section are eligible for export or reexport under this section to Sudan only. * * * (18) (Sudan only) Global Positioning System receivers or similar satellite receivers controlled under ECCN 7A994. Note to paragraph (b): In this paragraph, the term ``consumer'' refers to items that are: 1. Generally available to the public by being sold, without restriction, from stock at retail selling points by means of any of the following: a. Over-the-counter transactions; b. Mail order transactions; c. Electronic transactions; or d. Telephone call transactions; and 2. Designed for installation by the user without further substantial support by the supplier. (c) Eligible and ineligible end-users--(1) Organizations. (i) This license exception may be used to export or reexport eligible commodities and software to and for the use of independent non- governmental organizations in Cuba or Sudan. (ii) The Cuban Government or the Cuban Communist Party and organizations they administer or control are not eligible end-users. (iii) The Government of Sudan is not an eligible end-user for any item exported or reexported pursuant to this license exception except for consumer software that is authorized under paragraph (b)(12) or (b)(17) of this section and that is distributed free of charge. (2) Individuals. This License Exception may be used to export eligible commodities and software to and for the use of individuals other than the following: (i) Ineligible Cuban Government Officials. Ministers and vice- ministers; members of the Council of State; members of the Council of Ministers; members and employees of the National Assembly of People's Power; members of any provincial assembly; local sector chiefs of the Committees for the Defense of the Revolution; Director Generals and sub-Director Generals and higher of all Cuban ministries and state agencies; employees of the Ministry of the Interior (MININT); employees of the Ministry of Defense (MINFAR); secretaries and first secretaries of the Confederation of Labor of Cuba (CTC) and its component unions; chief editors, editors and deputy editors of Cuban state-run media organizations and programs, including newspapers, television, and radio; or members and employees of the Supreme Court (Tribuno Supremo Nacional). (ii) Ineligible Cuban Communist Party Officials. Members of the Politburo; the Central Committee; Department Heads of the Central Committee; employees of the Central Committee; and the secretaries and first secretaries of provincial Party central committees. PART 742--[AMENDED] 0 4. The authority citation for 15 CFR part 742 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; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of November 7, 2014, 79 FR 67035 (November 12, 2014). 0 5. Section 742.10 is amended by: 0 a. Revising the first sentence of paragraph (a)(2); 0 b. Revising paragraph (b)(3); 0 c. Redesignating the note to paragraph (b) as the note to paragraph (b)(3); and 0 d. Revising the newly redesignated note to paragraph (b)(3), to read as follows: Sec. 742.10 Anti-terrorism: Sudan. (a) * * * (2) If AT column 1 or AT column 2 of the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a license is required for reexport to Sudan for anti- terrorism purposes, except for ECCNs 2A994, 3A992.a, 5A991.g, 5A992, 5D992.b or .c, 6A991, 6A998, 7A994, 8A992.d, .e, .f, and .g, [[Page 8524]] 9A990.a and .b, and 9A991.d and .e. * * * * * * * * (b) * * * (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2) of this section, applications for Sudan will be considered on a case- by-case basis in the following four situations. (i) The transaction involves the reexport to Sudan of items where Sudan was not the intended ultimate destination at the time of original export from the United States, provided that the exports from the U.S. occurred prior to the applicable contract sanctity date. (ii) The U.S. content of foreign-produced commodities is 20% or less by value. (iii) The commodities are medical items. (iv) The items are telecommunications equipment and associated computers, software and technology for civil end use, including items useful for the development of civil telecommunications network infrastructure. Note to paragraph (b)(3) of this section: Applicants who wish any of the factors described in paragraph (b)(3) of this section to be considered in reviewing their license applications must submit adequate documentation demonstrating the appropriateness of the factor: i.e., the date of export from the United States, the value of the U.S. content, the specifications and medical use of the equipment, or the specific civil end use of the item and any function the item will have in the development of civil telecommunications network infrastructure, as relevant to the factor for which consideration is sought. * * * * * Dated: February 12, 2015. Kevin J. Wolf, Assistant Secretary for Export Administration. [FR Doc. 2015-03329 Filed 2-17-15; 8:45 am] BILLING CODE 3510-33-P
![8520 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations
recent notice continuing that Administrative Procedure Act requiring 168; E.O. 13637 of March 8, 2013, 78 FR
emergency. prior notice and the opportunity for 16129 (March 13, 2013); Notice of May 7,
This rule is purely procedural and public comment because they are 2014, 79 FR 26589 (May 9, 2014); Notice of
makes no changes other than to revise August 7, 2014, 79 FR 46959 (August 11,
unnecessary. This rule only updates
2014); Notice of September 17, 2014, 79 FR
CFR authority paragraphs for the legal authority citations. It clarifies 56475 (September 19, 2014); Notice of
purpose of making the authority information and is non-discretionary. November 7, 2014, 79 FR 67035 (November
citations current. It does not change the This rule does not alter any right, 12, 2014); Notice of January 21, 2015, 80 FR
text of any section of the EAR, nor does obligation or prohibition that applies to 3461 (January 22, 2015).
it alter any right, obligation or any person under the EAR. Because
prohibition that applies to any person these revisions are not substantive PART 744—[AMENDED]
under the EAR. changes, it is unnecessary to provide
■ 2. The authority citation for 15 CFR
Export Administration Act notice and opportunity for public
part 744 is revised to read as follows:
comment. In addition, the 30-day delay
Although the Export Administration in effectiveness required by 5 U.S.C. Authority: 50 U.S.C. app. 2401 et seq.; 50
Act expired on August 20, 2001, the 553(d) is not applicable because this U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
President, through Executive Order rule is not a substantive rule. Because 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
13222 of August 17, 2001, 3 CFR, 2001 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
neither the Administrative Procedure 1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
Comp., p. 783 (2002), as amended by Act nor any other law requires that
Executive Order 13637 of March 8, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
notice of proposed rulemaking and an FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
2013, 78 FR 16129 (March 13, 2013) and opportunity for public comment be 12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
as extended by the Notice of August 7, given for this rule, the analytical 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996
2014, 79 FR 46959 (August 11, 2014), requirements of the Regulatory Comp., p. 228; E.O. 13099, 63 FR 45167, 3
has continued the Export Flexibility Act (5 U.S.C. 601 et seq.) are CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
Administration Regulations in effect not applicable. 44025, 3 CFR, 2001 Comp., p. 783; E.O.
under the International Emergency 13224, 66 FR 49079, 3 CFR, 2001 Comp., p.
Economic Powers Act (50 U.S.C. 1701). List of Subjects 786; Notice of January 21, 2014, 79 FR 3721
BIS continues to carry out the (January 22, 2014); Notice of August 7, 2014,
15 CFR Part 730 79 FR 46959 (August 11, 2014); Notice of
provisions of the Export Administration
Administrative practice and September 17, 2014, 79 FR 56475 (September
Act, as appropriate and to the extent
procedure, Advisory committees, 19, 2014); Notice of January 21, 2015, 80 FR
permitted by law, pursuant to Executive 3461 (January 22, 2015).
Order 13222 as amended by Executive Exports, Reporting and recordkeeping
Order 13637. requirements, Strategic and critical Dated: February 9, 2015.
materials. Matthew S. Borman,
Rulemaking Requirements Deputy Assistant Secretary for Export
15 CFR Part 744
1. Executive Orders 13563 and 12866 Administration.
direct agencies to assess all costs and Exports, Reporting and recordkeeping [FR Doc. 2015–03318 Filed 2–17–15; 8:45 am]
benefits of available regulatory requirements, Terrorism.
BILLING CODE 3510–33–P
alternatives and, if regulation is Accordingly, parts 730 and 744 of the
necessary, to select regulatory EAR (15 CFR parts 730–774) are
approaches that maximize net benefits amended as follows: DEPARTMENT OF COMMERCE
(including potential economic,
environmental, public health and safety PART 730—[AMENDED] Bureau of Industry and Security
effects, distributive impacts, and ■ 1. The authority citation for 15 CFR
equity). This rule does not impose any 15 CFR Parts 740 and 742
part 730 is revised to read as follows:
regulatory burden on the public and is [Docket No. 140812661–4661–01]
Authority: 50 U.S.C. app. 2401 et seq.; 50
consistent with the goals of Executive
U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. RIN 0694–AG24
Order 13563. This rule has been 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note;
determined not to be significant for 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 Revisions to License Exception
purposes of Executive Order 12866. U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
2. Notwithstanding any other Availability for Consumer
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a;
provision of law, no person is required Communications Devices and
50 U.S.C. app. 5; 22 U.S.C. 7201 et seq.; 22
to respond to, nor shall any person be U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 CFR, Licensing Policy for Civil
subject to a penalty for failure to comply 1976 Comp., p. 114; E.O. 12002, 42 FR 35623, Telecommunications-Related Items
with, a collection of information subject 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 Such as Infrastructure Regarding
to the requirements of the Paperwork FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. Sudan
12214, 45 FR 29783, 3 CFR, 1980 Comp., p.
Reduction Act of 1995 (44 U.S.C. 3501 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 AGENCY: Bureau of Industry and
et seq.) (PRA), unless that collection of Comp., p. 608; E.O. 12854, 58 FR 36587, 3 Security, Commerce.
information displays a currently valid CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR ACTION: Final rule.
Office of Management and Budget 28205, 3 CFR, 1994 Comp., p. 899; E.O.
(OMB) Control Number. This rule does 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. SUMMARY: This rule amends the Export
not involve any collection of 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Administration Regulations to revise the
information. Comp., p. 356; E.O. 12981, 60 FR 62981, 3 general licensing policy of denial to one
mstockstill on DSK4VPTVN1PROD with RULES
3. This rule does not contain policies CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR of case-by-case licensing for exports and
54079, 3 CFR, 1996 Comp., p. 219; E.O. reexports to Sudan of
with Federalism implications as that 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
term is defined under Executive Order 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998
telecommunications equipment and
13132. Comp., p. 208; E.O. 13222, 66 FR 44025, 3 associated computers, software, and
4. The Department finds that there is CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR technology for civil end use, including
good cause under 5 U.S.C. 553(b)(3)(B) 49079, 3 CFR, 2001 Comp., p. 786; E.O. items useful for the development of civil
to waive the provisions of the 13338, 69 FR 26751, 3 CFR, 2004 Comp., p telecommunications network
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![Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations 8523
transactions with Sudan require The revisions and additions read as members of the Council of State;
authorization under both the EAR and follows: members of the Council of Ministers;
the Sudanese Sanctions Regulations. For members and employees of the National
example, an export of an item might § 740.19 Consumer Communications Assembly of People’s Power; members
Devices (CCD).
require an export license from BIS and of any provincial assembly; local sector
a separate license from OFAC. Payment (a) Authorizations. This section chiefs of the Committees for the Defense
for the export might also require authorizes the export or reexport of of the Revolution; Director Generals and
authorization from OFAC. Simultaneous commodities and software, either sold sub-Director Generals and higher of all
publication would permit effective or donated, to Cuba or Sudan subject to Cuban ministries and state agencies;
implementation of the changes to the the requirements stated herein. This employees of the Ministry of the Interior
two agencies’ regulations. In particular, section does not authorize U.S.-owned (MININT); employees of the Ministry of
it would ensure that an export or -controlled entities in third countries Defense (MINFAR); secretaries and first
transaction authorized under OFAC’s to engage in reexports of foreign secretaries of the Confederation of Labor
general license pertaining to certain produced commodities to Cuba for of Cuba (CTC) and its component
software, hardware, and services which no license would be issued by unions; chief editors, editors and deputy
incident to personal communications the Department of the Treasury editors of Cuban state-run media
would be eligible for a license exception pursuant to 31 CFR 515.559. organizations and programs, including
under the EAR rather than requiring a (b) Eligible commodities and software. newspapers, television, and radio; or
license from BIS, thereby effectuating Commodities and software in members and employees of the Supreme
the U.S. Government’s policy to paragraphs (b)(1) through (17) of this Court (Tribuno Supremo Nacional).
advance personal communications in section are eligible for export or
(ii) Ineligible Cuban Communist Party
Sudan. reexport under this section to Cuba or
Officials. Members of the Politburo; the
Sudan. Commodities in paragraph
List of Subjects Central Committee; Department Heads
(b)(18) of this section are eligible for
of the Central Committee; employees of
15 CFR Part 740 export or reexport under this section to
the Central Committee; and the
Sudan only.
Administrative practice and secretaries and first secretaries of
* * *
procedure, Exports, Reporting and provincial Party central committees.
(18) (Sudan only) Global Positioning
recordkeeping requirements. System receivers or similar satellite PART 742—[AMENDED]
15 CFR Part 742 receivers controlled under ECCN 7A994.
Exports, Terrorism. Note to paragraph (b): In this paragraph, ■ 4. The authority citation for 15 CFR
the term ‘‘consumer’’ refers to items that are: part 742 continues to read as follows:
For the reasons set forth in the 1. Generally available to the public by
preamble, the Export Administration Authority: 50 U.S.C. app. 2401 et seq.; 50
being sold, without restriction, from stock at
Regulations (15 CFR parts 730–774) are U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
retail selling points by means of any of the
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
amended as follows: following:
U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117
a. Over-the-counter transactions;
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,
PART 740—[AMENDED] b. Mail order transactions;
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
c. Electronic transactions; or
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
■ 1. The authority citation for 15 CFR d. Telephone call transactions; and
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
part 740 continues to read as follows: 2. Designed for installation by the user
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
without further substantial support by the
Authority: 50 U.S.C. app. 2401 et seq.; 50 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
supplier.
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; Comp., p. 783; Presidential Determination
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., (c) Eligible and ineligible end-users— 2003–23 of May 7, 2003, 68 FR 26459, May
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 (1) Organizations. (i) This license 16, 2003; Notice of August 7, 2014, 79 FR
Comp., p. 783; Notice of August 7, 2014, 79 exception may be used to export or 46959 (August 11, 2014); Notice of November
FR 46959 (Aug. 11, 2014). reexport eligible commodities and 7, 2014, 79 FR 67035 (November 12, 2014).
§ 740.9 [Amended] software to and for the use of ■ 5. Section 742.10 is amended by:
independent non-governmental ■ a. Revising the first sentence of
■ 2. Section 740.9 is amended by: organizations in Cuba or Sudan.
■ a. Removing the semicolon and the paragraph (a)(2);
(ii) The Cuban Government or the
phrase ‘‘for Sudan, see paragraph (a)(2) ■ b. Revising paragraph (b)(3);
Cuban Communist Party and
of this section’’ from the first sentence organizations they administer or control ■ c. Redesignating the note to paragraph
of paragraph (a)(1); and are not eligible end-users. (b) as the note to paragraph (b)(3); and
■ b. Removing and reserving paragraph (iii) The Government of Sudan is not ■ d. Revising the newly redesignated
(a)(2). an eligible end-user for any item note to paragraph (b)(3), to read as
■ 3. Section 740.19 is amended by: exported or reexported pursuant to this follows:
■ a. Revising paragraph (a); license exception except for consumer
§ 742.10 Anti-terrorism: Sudan.
■ b. Revising paragraph (b) introductory software that is authorized under
text; paragraph (b)(12) or (b)(17) of this (a) * * *
■ c. Removing the word ‘‘and’’ from the section and that is distributed free of (2) If AT column 1 or AT column 2
end of paragraph (b)(16); charge. of the Commerce Country Chart
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■ d. Removing the period from the end (2) Individuals. This License (Supplement No. 1 to part 738 of the
of paragraph (b)(17) and adding in its Exception may be used to export eligible EAR) is indicated in the appropriate
place a semicolon followed by the word commodities and software to and for the ECCN, a license is required for reexport
‘‘and’’; use of individuals other than the to Sudan for anti-terrorism purposes,
■ e. Adding paragraph (b)(18); following: except for ECCNs 2A994, 3A992.a,
■ f. Adding a note to paragraph (b); and (i) Ineligible Cuban Government 5A991.g, 5A992, 5D992.b or .c, 6A991,
■ g. Revising paragraph (c). Officials. Ministers and vice-ministers; 6A998, 7A994, 8A992.d, .e, .f, and .g,
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![8524 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations
9A990.a and .b, and 9A991.d and .e. SUMMARY: This rule amends the Export where appropriate, the Treasury, makes
* * * Administration Regulations (EAR) by all decisions regarding additions to,
* * * * * adding eleven persons to the Entity List. removals from, or other modifications to
(b) * * * The eleven persons who are added to the Entity List. The ERC makes all
(3) Notwithstanding the provisions of the Entity List have been determined by decisions to add an entry to the Entity
paragraphs (b)(1) and (b)(2) of this the U.S. Government to be acting List by majority vote and all decisions
section, applications for Sudan will be contrary to the national security or to remove or modify an entry by
considered on a case-by-case basis in foreign policy interests of the United unanimous vote.
the following four situations. States. These eleven persons will be
ERC Entity List Decisions
(i) The transaction involves the listed on the Entity List under the
reexport to Sudan of items where Sudan destinations of People’s Republic of Additions to the Entity List
was not the intended ultimate China (China), Pakistan, and United This rule implements the decision of
destination at the time of original export Arab Emirates (U.A.E.). the ERC to add eleven persons under
from the United States, provided that This final rule also removes one eleven entries to the Entity List. These
the exports from the U.S. occurred prior person from the Entity List, as the result eleven persons are being added on the
to the applicable contract sanctity date. of a request for removal submitted by basis of § 744.11 (License requirements
(ii) The U.S. content of foreign- the person, a review of information that apply to entities acting contrary to
produced commodities is 20% or less by provided in the removal request in the national security or foreign policy
value. accordance with the procedure for interests of the United States) of the
(iii) The commodities are medical requesting removal or modification of EAR. The eleven entries added to the
items. an Entity List entity, and further review
(iv) The items are telecommunications Entity List consist of four entries in
conducted by the End-User Review China, four in Pakistan, and three in the
equipment and associated computers, Committee (ERC).
software and technology for civil end U.A.E.
DATES: This rule is effective February The ERC reviewed § 744.11(b)
use, including items useful for the 18, 2015. (Criteria for revising the Entity List) in
development of civil
FOR FURTHER INFORMATION CONTACT: making the determination to add these
telecommunications network
Chair, End-User Review Committee, eleven persons to the Entity List. Under
infrastructure.
Office of the Assistant Secretary, Export that paragraph, persons for whom there
Note to paragraph (b)(3) of this section: Administration, Bureau of Industry and is reasonable cause to believe, based on
Applicants who wish any of the factors Security, Department of Commerce, specific and articulable facts, have been
described in paragraph (b)(3) of this section
to be considered in reviewing their license
Phone: (202) 482–5991, Fax: (202) 482– involved, are involved, or pose a
applications must submit adequate 3911, Email: ERC@bis.doc.gov. significant risk of being or becoming
documentation demonstrating the SUPPLEMENTARY INFORMATION: involved in, activities that are contrary
appropriateness of the factor: i.e., the date of to the national security or foreign policy
export from the United States, the value of Background interests of the United States and those
the U.S. content, the specifications and The Entity List (Supplement No. 4 to acting on behalf of such persons may be
medical use of the equipment, or the specific Part 744) notifies the public about added to the Entity List. Paragraphs
civil end use of the item and any function the entities that have engaged in activities (b)(1) through (b)(5) of § 744.11 include
item will have in the development of civil
that could result in an increased risk of an illustrative list of activities that could
telecommunications network infrastructure,
as relevant to the factor for which the diversion of exported, reexported or be contrary to the national security or
consideration is sought. transferred (in-country) items to foreign policy interests of the United
weapons of mass destruction (WMD) States.
* * * * * programs. Since its initial publication, The ERC determined the following
Dated: February 12, 2015. grounds for inclusion on the Entity List four persons being added to the Entity
Kevin J. Wolf, have expanded to include activities List under the destination of China have
Assistant Secretary for Export sanctioned by the State Department and been involved in activities contrary to
Administration. activities contrary to U.S. national the national security and foreign policy
[FR Doc. 2015–03329 Filed 2–17–15; 8:45 am]
security or foreign policy interests. interests of the United States. The ERC
Certain exports, reexports, and transfers determined that the National University
BILLING CODE 3510–33–P
(in-country) to entities identified on the of Defense Technology (NUDT), the
Entity List require licenses from BIS and National Supercomputing Center in
DEPARTMENT OF COMMERCE are usually subject to a policy of denial. Changsha (NSCC–CS), National
The availability of license exceptions in Supercomputing Center in Guangzhou
Bureau of Industry and Security such transactions is very limited. The (NSCC–GZ), and the National
license review policy for each entity is Supercomputing Center in Tianjin
15 CFR Part 744 identified in the license review policy (NSCC–TJ), all located in the People’s
column on the Entity List and the Republic of China, meet the guidelines
[Docket No. 141230999–4999–01]
availability of license exceptions is listed under § 744.11(b): Entities for
RIN 0694–AG46 noted in the Federal Register notices which there is reasonable cause to
adding persons to the Entity List. BIS believe, based on specific and
Addition of Certain Persons to the places entities on the Entity List based articulated facts, that an entity has been
mstockstill on DSK4VPTVN1PROD with RULES
Entity List; and Removal of Person on certain sections of part 744 (Control involved, is involved, or poses a
From the Entity List Based on a Policy: End-User and End-Use Based) significant risk of being or becoming
Removal Request and part 746 (Embargoes and Other involved in activities that are contrary
AGENCY: Bureau of Industry and Special Controls) of the EAR. to the national security or foreign policy
Security, Commerce. The ERC, composed of representatives interests of the United States and those
of the Departments of Commerce acting on behalf of such entities may be
ACTION: Final rule.
(Chair), State, Defense, Energy and, added to the Entity List pursuant to this
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Document Created: 2018-02-16 11:10:55
Document Modified: 2018-02-16 11:10:55
| 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 | The rule is effective February 18, 2015. | |
| Contact | Theodore Curtin, telephone (202) 482- 4252, email [email protected] | |
| FR Citation | 80 FR 8520 | |
| RIN Number | 0694-AG24 | |
| CFR Citation | 15
CFR
740 15 CFR 742 | |
| CFR Associated | Administrative Practice and Procedure; Exports; Reporting and Recordkeeping Requirements and Terrorism |
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