81_FR_15690 81 FR 15633 - Temporary General License

81 FR 15633 - Temporary General License

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 57 (March 24, 2016)

Page Range15633-15635
FR Document2016-06689

This final rule creates a temporary general license that temporarily restores the licensing requirements and policies under the Export Administration Regulations (EAR) for exports, reexports, and transfers (in-country) to two entities added to the Entity List on March 8, 2016. BIS is issuing this rule in connection with a request to remove or modify the listing.

Federal Register, Volume 81 Issue 57 (Thursday, March 24, 2016)
[Federal Register Volume 81, Number 57 (Thursday, March 24, 2016)]
[Rules and Regulations]
[Pages 15633-15635]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06689]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 160106014-6262-02]
RIN 0694-AG82


Temporary General License

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This final rule creates a temporary general license that 
temporarily restores the licensing requirements and policies under the 
Export Administration Regulations (EAR) for exports, reexports, and 
transfers (in-country) to two entities added to the Entity List on 
March 8, 2016. BIS is issuing this rule in connection with a request to 
remove or modify the listing.

DATES:  This rule is effective March 24, 2016 through June 30, 2016.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce,

[[Page 15634]]

Phone: (202) 482-5991, Fax: (202) 482-3911, Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The Entity List (Supplement No. 4 to Part 744) identifies entities 
and other persons reasonably believed to be involved, or to pose a 
significant risk of being or becoming involved, in activities contrary 
to the national security or foreign policy interests of the United 
States. The End-User Review Committee (ERC), composed of 
representatives of the Departments of Commerce (Chair), State, Defense, 
Energy and, where appropriate, the Treasury, makes all decisions 
regarding additions to, removals from, or other modifications to the 
Entity List. The ERC makes all decisions to add an entry to the Entity 
List by majority vote and all decisions to remove or modify an entry by 
unanimous vote.
    This final rule does not amend the Entity List, but modifies an 
entry on the Entity List as described further below by adding a 
temporary general license for two entities recently added to the Entity 
List.

Addition of ZTE to the Entity List and Overview of Requests for Removal

    BIS added Zhongxing Telecommunications Equipment (ZTE) Corporation 
(ZTE Corporation), ZTE Kangxun Telecommunications Ltd. (ZTE Kangxun), 
and two other entities to the Entity List on March 8, 2016. Details 
regarding the scope of the listing are at 81 FR 12004 (Mar. 8, 2016), 
(``Additions to the Entity List''). Each person on the Entity List has 
the right to request that its listing on the Entity List be removed or 
modified. Instructions on the request for removal or modification 
process are found at Sec.  744.16 of the EAR.
    The ERC reviews such requests in accordance with the procedures set 
forth in Supplement No. 5 to part 744. Specifically, as part of its 
review of requests to remove or modify a listing, the ERC will consider 
whether the circumstances that led to the decision to add the entity to 
the Entity List continue to exist. This includes reviewing whether 
there continues to be reasonable cause to believe, based on specific 
and articulable facts, that the entity has been involved, is involved, 
or poses a significant risk of being or becoming involved in activities 
that are contrary to the national security or foreign policy interests 
of the United States--the standard for revising the Entity List 
established in Sec.  744.11(b) of the EAR. In connection with a request 
by ZTE Corporation and ZTE Kangxun to remove or modify their listings 
on the Entity List submitted to BIS pursuant to the foregoing 
provisions, and binding commitments made by these entities to the U.S. 
Government, BIS is modifying the effect of their entries on the Entity 
List by adding a temporary general license to restore temporarily the 
status quo ante licensing policy pertaining to exports, reexports, and 
transfers (in-country) to ZTE Corporation and ZTE Kangxun. This final 
rule does not apply to the other two entities added to Supplement No. 4 
to part 744 (The Entity List) on March 8, 2016.
    Specifically, this final rule makes the following change to the 
EAR:

Addition of Temporary General License

    This final rule amends the EAR by adding Supplement No. 7 to Part 
744 to create a Temporary General License that returns until June 30, 
2016 the licensing and other policies of the EAR regarding exports, 
reexports, and transfers (in-country) to Zhongxing Telecommunications 
Equipment (ZTE) Corporation and ZTE Kangxun to that which was in effect 
just prior to their having been added to the Entity List on March 8, 
2016. For example, the authority of NLR or a License Exception that was 
available as of March 7, 2016, may be used as per this temporary 
general license. The temporary general license is renewable if the U.S. 
Government determines, in its sole discretion, that ZTE Corporation and 
ZTE Kangxun are timely performing their undertakings to the U.S. 
Government and otherwise cooperating with the U.S. Government in 
resolving the matter.
    The impact of this temporary general license is that the license 
and other requirements specified in Sec.  744.11 and Supplement No. 4 
to part 744 pertaining to exports, reexports, and transfers (in-
country) to ZTE Corporation and ZTE Kangxun do not apply during the 
period the temporary general license is in effect. This means that the 
license requirements, license review policies, and license exceptions 
that applied on March 7, 2016, are applicable regarding exports, 
reexports, and transfers (in-country) to ZTE Corporation and ZTE 
Kangxun until June 30, 2016, unless amended. However, the temporary 
general license does not relieve persons of other obligations under 
part 744 of the EAR or under other parts of the EAR, such as those 
specified in Sec. Sec.  744.2, 744.3 and 744.4 of the EAR. For example, 
this temporary general license does not relieve persons of their 
obligations under General Prohibition 5 in Sec.  736.2(b)(5) of the EAR 
which provides that, ``you may not, without a license, knowingly export 
or reexport any item subject to the EAR to an end-user or end-use that 
is prohibited by part 744 of the EAR.'' Additionally, this temporary 
general license does not relieve persons of their obligation to apply 
for export, reexport, or in-country transfer licenses required by other 
provisions of the EAR. BIS strongly urges the use of Supplement No. 3 
to part 732 of the EAR, ``BIS's `Know Your Customer' Guidance and Red 
Flags,'' when persons are involved in transactions that are subject to 
the EAR.

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, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license

[[Page 15635]]

applications and carries a burden estimate of 43.8 minutes for a manual 
or electronic submission.
    Total burden hours associated with the PRA and OMB control number 
0694-0088 are not expected to increase as a result of this rule. You 
may send comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, to 
Jasmeet K. Seehra, Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment, and a delay in effective date are inapplicable because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5 U.S.C. 553(a)(1)). If this rule were delayed to 
allow for notice and comment and a delay in effective date, then the 
national security and foreign policy objectives of this rule would be 
harmed. 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.

List of Subject in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15 
CFR parts 730 through 774) is amended as follows:

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of August 7, 2015, 80 FR 48233 
(August 11, 2015); Notice of September 18, 2015, 80 FR 57281 
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016).


0
2. Add Supplement No. 7 to part 744 to read as follows:

SUPPLEMENT NO. 7 TO PART 744--TEMPORARY GENERAL LICENSE

    Notwithstanding the requirements and other provisions of supplement 
4 to part 744, which became effective on March 8, 2016, the licensing 
and other requirements in the EAR as of March 7, 2016, pertaining to 
exports, reexports, and transfers (in-country) of items ``subject to 
the EAR'' to Zhongxing Telecommunications Equipment (ZTE) Corporation, 
ZTE Plaza, Keji Road South, Hi-Tech Industrial Park, Nanshan District, 
Shenzhen, China, and ZTE Kangxun Telecommunications Ltd., 2/3 Floor, 
Suite A, ZTE Communication Mansion Keji (S) Road, Hi-New Shenzhen, 
518057 China, are restored as of March 24, 2016 and through June 30, 
2016. Thus, for example, the authority of NLR or a License Exception 
that was available as of March 7, 2016, may be used as per this 
temporary general license. The temporary general license is renewable 
if the U.S. Government determines, in its sole discretion, that ZTE 
Corporation and ZTE Kangxun are timely performing their undertakings to 
the U.S. Government and otherwise cooperating with the U.S. Government 
in resolving the matter.

    Dated: March 21, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-06689 Filed 3-21-16; 4:15 pm]
BILLING CODE 3510-33-P



                                                                    Federal Register / Vol. 81, No. 57 / Thursday, March 24, 2016 / Rules and Regulations                                               15633

                                                  Washington, IA, Washington Muni, Takeoff                Wilmington, OH, Wilmington Air Park, VOR              Auburn, WA, Auburn Muni, AUBURN ONE
                                                    Minimums and Obstacle DP, Amdt 2                        RWY 22R, Amdt 4C, CANCELED                            Graphic DP, CANCELED
                                                  Indianapolis, IN, Eagle Creek Airpark,                  Wilmington, OH, Wilmington Air Park, VOR/             Cumberland, WI, Cumberland Muni, GPS
                                                    Takeoff Minimums and Obstacle DP, Amdt                  DME RWY 22R, Amdt 5, CANCELED                         RWY 27, Orig, CANCELED
                                                    3                                                     Tulsa, OK, Tulsa Intl, ILS OR LOC RWY 18L,            Cumberland, WI, Cumberland Muni, RNAV
                                                  Winamac, IN, Arens Field, RNAV (GPS) RWY                  Amdt 16                                               (GPS) RWY 9, Orig
                                                    9, Amdt 1                                             Tulsa, OK, Tulsa Intl, ILS OR LOC RWY 18R,            Cumberland, WI, Cumberland Muni, RNAV
                                                  Winamac, IN, Arens Field, RNAV (GPS) RWY                  Amdt 7D                                               (GPS) RWY 27, Orig
                                                    27, Amdt 1                                            Tulsa, OK, Tulsa Intl, ILS OR LOC RWY 36R,            Cumberland, WI, Cumberland Muni, Takeoff
                                                  Independence, KS, Independence Muni,                      ILS RWY 36R (SA CAT I), ILS RWY 36R                   Minimums and Obstacle DP, Orig
                                                    RNAV (GPS) RWY 17, Amdt 1                               (CAT II), Amdt 29E                                  Lake Geneva, WI, Grand Geneva Resort,
                                                  Springfield, KY, Lebanon Springfield-George             Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 8,                Takeoff Minimums and Obstacle DP, Amdt
                                                    Hoerter Field, RNAV (GPS) RWY 11, Amdt                  Amdt 2A                                               1
                                                    1                                                     Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 18L,            Wisconsin Rapids, WI, Alexander Field
                                                  Springfield, KY, Lebanon Springfield-George               Amdt 1C                                               South Wood County, NDB RWY 30, Amdt
                                                    Hoerter Field, RNAV (GPS) RWY 29, Amdt                Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 18R,              9A, CANCELED
                                                    1                                                       Amdt 1D
                                                  Springfield, KY, Lebanon Springfield-George             Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 26,             Effective 28 APRIL 2016
                                                    Hoerter Field, Takeoff Minimums and                     Amdt 3D                                             Pittsburgh, PA, Pittsburgh Intl, RNAV (RNP)
                                                    Obstacle DP, Amdt 3                                   Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 36L,              Z RWY 32, Amdt 1C
                                                  Cumberland, MD, Greater Cumberland Rgnl,                  Orig-D                                                RESCINDED: On February 19, 2016 (81 FR
                                                    LOC–A, Amdt 4, CANCELED                               Tulsa, OK, Tulsa Intl, RNAV (GPS) RWY 36R,            8394), the FAA published an Amendment in
                                                  Cumberland, MD, Greater Cumberland Rgnl,                  Amdt 1B                                             Docket No. 31058, Amdt No. 3679, to Part 97
                                                    LOC/DME RWY 23, Amdt 7                                Tulsa, OK, Tulsa Intl, Takeoff Minimums and           of the Federal Aviation Regulations, under
                                                  Cumberland, MD, Greater Cumberland Rgnl,                  Obstacle DP, Amdt 1A                                section 97.23. The following entries for
                                                    RNAV (GPS) RWY 5, Amdt 2                              Dillon, SC, Dillon County, NDB RWY 7,                 Greenville, MS, Rochester, NY, and Aiken,
                                                  Cumberland, MD, Greater Cumberland Rgnl,                  Amdt 5A, CANCELED                                   SC, effective March 3, 2016, are hereby
                                                    Takeoff Minimums and Obstacle DP, Amdt                Centerville, TN, Centerville Muni, VOR RWY            rescinded in their entirety:
                                                    7                                                       2, Amdt 6, CANCELED
                                                                                                          Centerville, TN, Centerville Muni, VOR/DME            Greenville, MS, Greenville Mid-Delta, VOR/
                                                  Blue Earth, MN, Blue Earth Muni, NDB OR
                                                                                                            OR GPS RWY 2, Amdt 2, CANCELED                        DME RWY 18L, Amdt 13A, CANCELED
                                                    GPS RWY 34, Amdt 1, CANCELED
                                                                                                          Sparta, TN, Upper Cumberland Rgnl, RNAV               Rochester, NY, Greater Rochester Intl, VOR/
                                                  Blue Earth, MN, Blue Earth Muni, RNAV
                                                                                                            (GPS) RWY 4, Orig-C                                   DME RWY 4, Amdt 4A, CANCELED
                                                    (GPS) RWY 34, Orig
                                                                                                          Dallas, TX, Dallas Executive, VOR RWY 31,             Aiken, SC, Aiken Muni, VOR/DME–A, Amdt
                                                  Blue Earth, MN, Blue Earth Muni, Takeoff
                                                                                                            Amdt 1, CANCELED                                      1A, CANCELED
                                                    Minimums and Obstacle DP, Orig
                                                  Park Rapids, MN, Park Rapids Muni-Konshok               Dallas, TX, Dallas Love Field, ILS OR LOC             [FR Doc. 2016–06324 Filed 3–23–16; 8:45 am]
                                                    Field, VOR RWY 31, Amdt 14A,                            RWY 31L, Amdt 22                                    BILLING CODE 4910–13–P
                                                    CANCELED                                              Dallas, TX, Dallas Love Field, ILS OR LOC
                                                  Warroad, MN, Warroad Intl Memorial, RNAV                  RWY 31R, ILS RWY 31R (SA CAT I), Amdt
                                                    (GPS) RWY 13, Amdt 1                                    6
                                                  St Louis, MO, Spirit of St Louis, ILS OR LOC            Dallas, TX, Dallas Love Field, ILS Y OR LOC           DEPARTMENT OF COMMERCE
                                                    RWY 8R, Amdt 14A                                        Y RWY 13L, Amdt 33
                                                  St Louis, MO, Spirit of St Louis, ILS OR LOC            Dallas, TX, Dallas Love Field, ILS Y OR LOC           Bureau of Industry and Security
                                                    RWY 26L, Orig-C                                         Y RWY 13R, Amdt 5A
                                                  St Louis, MO, Spirit of St Louis, NDB RWY               Dallas, TX, Dallas Love Field, RNAV (GPS)             15 CFR Part 744
                                                    8R, Amdt 11E                                            Y RWY 13L, Amdt 1B
                                                  St Louis, MO, Spirit of St Louis, NDB RWY               Dallas, TX, Dallas Love Field, RNAV (GPS)             [Docket No. 160106014–6262–02]
                                                    26L, Amdt 3A                                            Y RWY 13R, Orig-A
                                                                                                                                                                RIN 0694–AG82
                                                  St Louis, MO, Spirit of St Louis, RNAV (GPS)            Dallas, TX, Dallas Love Field, RNAV (GPS)
                                                    RWY 8L, Orig-A                                          Y RWY 31L, Amdt 1D
                                                  St Louis, MO, Spirit of St Louis, RNAV (GPS)            Dallas, TX, Dallas Love Field, RNAV (GPS)
                                                                                                                                                                Temporary General License
                                                    RWY 8R, Orig-A                                          Y RWY 31R, Amdt 2                                   AGENCY:  Bureau of Industry and
                                                  St Louis, MO, Spirit of St Louis, RNAV (GPS)            Dallas, TX, Dallas Love Field, RNAV (GPS)             Security, Commerce.
                                                    RWY 26L, Orig-B                                         Z RWY 13L, Amdt 3
                                                  St Louis, MO, Spirit of St Louis, RNAV (GPS)            Dallas, TX, Dallas Love Field, RNAV (GPS)             ACTION: Final rule.
                                                    RWY 26R, Orig-A                                         Z RWY 13R, Amdt 1B
                                                  Greenville, MS, Greenville Mid-Delta, VOR/              Dallas, TX, Dallas Love Field, RNAV (RNP)             SUMMARY:    This final rule creates a
                                                    DME RWY 18L, Amdt 13A, CANCELED                         W RWY 13L, Orig-B                                   temporary general license that
                                                  Bowman, ND, Bowman Regional, RNAV                       Dallas, TX, Dallas Love Field, RNAV (RNP)             temporarily restores the licensing
                                                    (GPS) RWY 13, Orig                                      W RWY 13R, Orig-C                                   requirements and policies under the
                                                  Bowman, ND, Bowman Regional, RNAV                       Dallas, TX, Dallas Love Field, RNAV (RNP)             Export Administration Regulations
                                                    (GPS) RWY 31, Orig                                      X RWY 13L, Orig-B                                   (EAR) for exports, reexports, and
                                                  Bowman, ND, Bowman Regional, Takeoff                    Dallas, TX, Dallas Love Field, RNAV (RNP)             transfers (in-country) to two entities
                                                    Minimums and Obstacle DP, Orig                          X RWY 13R, Orig-C
                                                                                                                                                                added to the Entity List on March 8,
                                                  Columbus, OH, Port Columbus Intl, ILS OR                Dallas, TX, Dallas Love Field, RNAV (RNP)
                                                    LOC RWY 28L, ILS RWY 28L (SA CAT I),                    Z RWY 31L, Orig-B                                   2016. BIS is issuing this rule in
                                                    ILS RWY 28L (SA CAT II), Amdt 30                      Dallas, TX, Dallas Love Field, RNAV (RNP)             connection with a request to remove or
                                                                                                                                                                modify the listing.
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  Wilmington, OH, Wilmington Air Park, ILS                  Z RWY 31R, Orig-B
                                                    OR LOC RWY 22R, ILS RWY 22R (CAT II),                 Wichita Falls, TX, Kickapoo Downtown,                 DATES: This rule is effective March 24,
                                                    ILS RWY 22R (CAT III), Amdt 5B                          RNAV (GPS) RWY 35, Amdt 1                           2016 through June 30, 2016.
                                                  Wilmington, OH, Wilmington Air Park, NDB                Logan, UT, Logan-Cache, ILS OR LOC/DME
                                                                                                                                                                FOR FURTHER INFORMATION CONTACT:
                                                    RWY 4L, Amdt 2E, CANCELED                               RWY 17, Amdt 1
                                                  Wilmington, OH, Wilmington Air Park, NDB                Logan, UT, Logan-Cache, RNAV (GPS) RWY                Chair, End-User Review Committee,
                                                    RWY 22R, Amdt 7E, CANCELED                              17, Amdt 2                                          Office of the Assistant Secretary, Export
                                                  Wilmington, OH, Wilmington Air Park, VOR                Logan, UT, Logan-Cache, RNAV (GPS) RWY                Administration, Bureau of Industry and
                                                    RWY 4L, Amdt 6, CANCELED                                35, Amdt 3                                          Security, Department of Commerce,


                                             VerDate Sep<11>2014   16:15 Mar 23, 2016   Jkt 238001   PO 00000   Frm 00021   Fmt 4700   Sfmt 4700   E:\FR\FM\24MRR1.SGM   24MRR1


                                                  15634             Federal Register / Vol. 81, No. 57 / Thursday, March 24, 2016 / Rules and Regulations

                                                  Phone: (202) 482–5991, Fax: (202) 482–                  to remove or modify their listings on the             license, knowingly export or reexport
                                                  3911, Email: ERC@bis.doc.gov.                           Entity List submitted to BIS pursuant to              any item subject to the EAR to an end-
                                                  SUPPLEMENTARY INFORMATION:                              the foregoing provisions, and binding                 user or end-use that is prohibited by
                                                                                                          commitments made by these entities to                 part 744 of the EAR.’’ Additionally, this
                                                  Background                                              the U.S. Government, BIS is modifying                 temporary general license does not
                                                     The Entity List (Supplement No. 4 to                 the effect of their entries on the Entity             relieve persons of their obligation to
                                                  Part 744) identifies entities and other                 List by adding a temporary general                    apply for export, reexport, or in-country
                                                  persons reasonably believed to be                       license to restore temporarily the status             transfer licenses required by other
                                                  involved, or to pose a significant risk of              quo ante licensing policy pertaining to               provisions of the EAR. BIS strongly
                                                  being or becoming involved, in                          exports, reexports, and transfers (in-                urges the use of Supplement No. 3 to
                                                  activities contrary to the national                     country) to ZTE Corporation and ZTE                   part 732 of the EAR, ‘‘BIS’s ‘Know Your
                                                  security or foreign policy interests of the             Kangxun. This final rule does not apply               Customer’ Guidance and Red Flags,’’
                                                  United States. The End-User Review                      to the other two entities added to                    when persons are involved in
                                                  Committee (ERC), composed of                            Supplement No. 4 to part 744 (The                     transactions that are subject to the EAR.
                                                  representatives of the Departments of                   Entity List) on March 8, 2016.
                                                                                                             Specifically, this final rule makes the            Export Administration Act
                                                  Commerce (Chair), State, Defense,
                                                  Energy and, where appropriate, the                      following change to the EAR:                            Although the Export Administration
                                                  Treasury, makes all decisions regarding                                                                       Act expired on August 20, 2001, the
                                                                                                          Addition of Temporary General License                 President, through Executive Order
                                                  additions to, removals from, or other
                                                  modifications to the Entity List. The                      This final rule amends the EAR by                  13222 of August 17, 2001, 3 CFR, 2001
                                                  ERC makes all decisions to add an entry                 adding Supplement No. 7 to Part 744 to                Comp., p. 783 (2002), as amended by
                                                  to the Entity List by majority vote and                 create a Temporary General License that               Executive Order 13637 of March 8,
                                                  all decisions to remove or modify an                    returns until June 30, 2016 the licensing             2013, 78 FR 16129 (March 13, 2013) and
                                                  entry by unanimous vote.                                and other policies of the EAR regarding               as extended by the Notice of August 7,
                                                     This final rule does not amend the                   exports, reexports, and transfers (in-                2015, 80 FR 48233 (August 11, 2015),
                                                  Entity List, but modifies an entry on the               country) to Zhongxing                                 has continued the Export
                                                  Entity List as described further below by               Telecommunications Equipment (ZTE)                    Administration Regulations in effect
                                                  adding a temporary general license for                  Corporation and ZTE Kangxun to that                   under the International Emergency
                                                  two entities recently added to the Entity               which was in effect just prior to their               Economic Powers Act. BIS continues to
                                                  List.                                                   having been added to the Entity List on               carry out the provisions of the Export
                                                                                                          March 8, 2016. For example, the                       Administration Act, as appropriate and
                                                  Addition of ZTE to the Entity List and                  authority of NLR or a License Exception               to the extent permitted by law, pursuant
                                                  Overview of Requests for Removal                        that was available as of March 7, 2016,               to Executive Order 13222, as amended
                                                     BIS added Zhongxing                                  may be used as per this temporary                     by Executive Order 13637.
                                                  Telecommunications Equipment (ZTE)                      general license. The temporary general
                                                  Corporation (ZTE Corporation), ZTE                      license is renewable if the U.S.                      Rulemaking Requirements
                                                  Kangxun Telecommunications Ltd.                         Government determines, in its sole                       1. Executive Orders 13563 and 12866
                                                  (ZTE Kangxun), and two other entities                   discretion, that ZTE Corporation and                  direct agencies to assess all costs and
                                                  to the Entity List on March 8, 2016.                    ZTE Kangxun are timely performing                     benefits of available regulatory
                                                  Details regarding the scope of the listing              their undertakings to the U.S.                        alternatives and, if regulation is
                                                  are at 81 FR 12004 (Mar. 8, 2016),                      Government and otherwise cooperating                  necessary, to select regulatory
                                                  (‘‘Additions to the Entity List’’). Each                with the U.S. Government in resolving                 approaches that maximize net benefits
                                                  person on the Entity List has the right                 the matter.                                           (including potential economic,
                                                  to request that its listing on the Entity                  The impact of this temporary general               environmental, public health and safety
                                                  List be removed or modified.                            license is that the license and other                 effects, distributive impacts, and
                                                  Instructions on the request for removal                 requirements specified in § 744.11 and                equity). Executive Order 13563
                                                  or modification process are found at                    Supplement No. 4 to part 744 pertaining               emphasizes the importance of
                                                  § 744.16 of the EAR.                                    to exports, reexports, and transfers (in-             quantifying both costs and benefits, of
                                                     The ERC reviews such requests in                     country) to ZTE Corporation and ZTE                   reducing costs, of harmonizing rules,
                                                  accordance with the procedures set                      Kangxun do not apply during the period                and of promoting flexibility. This rule
                                                  forth in Supplement No. 5 to part 744.                  the temporary general license is in                   has been determined to be not
                                                  Specifically, as part of its review of                  effect. This means that the license                   significant for purposes of Executive
                                                  requests to remove or modify a listing,                 requirements, license review policies,                Order 12866.
                                                  the ERC will consider whether the                       and license exceptions that applied on                   2. Notwithstanding any other
                                                  circumstances that led to the decision to               March 7, 2016, are applicable regarding               provision of law, no person is required
                                                  add the entity to the Entity List continue              exports, reexports, and transfers (in-                to respond to nor be subject to a penalty
                                                  to exist. This includes reviewing                       country) to ZTE Corporation and ZTE                   for failure to comply with a collection
                                                  whether there continues to be                           Kangxun until June 30, 2016, unless                   of information, subject to the
                                                  reasonable cause to believe, based on                   amended. However, the temporary                       requirements of the Paperwork
                                                  specific and articulable facts, that the                general license does not relieve persons              Reduction Act of 1995 (44 U.S.C. 3501
                                                  entity has been involved, is involved, or               of other obligations under part 744 of                et seq.) (PRA), unless that collection of
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                                                  poses a significant risk of being or                    the EAR or under other parts of the                   information displays a currently valid
                                                  becoming involved in activities that are                EAR, such as those specified in                       Office of Management and Budget
                                                  contrary to the national security or                    §§ 744.2, 744.3 and 744.4 of the EAR.                 (OMB) Control Number. This regulation
                                                  foreign policy interests of the United                  For example, this temporary general                   involves collections previously
                                                  States—the standard for revising the                    license does not relieve persons of their             approved by OMB under control
                                                  Entity List established in § 744.11(b) of               obligations under General Prohibition 5               number 0694–0088, Simplified Network
                                                  the EAR. In connection with a request                   in § 736.2(b)(5) of the EAR which                     Application Processing System, which
                                                  by ZTE Corporation and ZTE Kangxun                      provides that, ‘‘you may not, without a               includes, among other things, license


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                                                                    Federal Register / Vol. 81, No. 57 / Thursday, March 24, 2016 / Rules and Regulations                                                  15635

                                                  applications and carries a burden                       2015, 80 FR 57281 (September 22, 2015);               026–1 is designed to ensure that
                                                  estimate of 43.8 minutes for a manual or                Notice of November 12, 2015, 80 FR 70667              applicable entities use protective relay
                                                  electronic submission.                                  (November 13, 2015); Notice of January 20,            systems that can differentiate between
                                                    Total burden hours associated with                    2016, 81 FR 3937 (January 22, 2016).                  faults and stable power swings.
                                                  the PRA and OMB control number                          ■ 2. Add Supplement No. 7 to part 744                 DATES: This rule will become effective
                                                  0694–0088 are not expected to increase                  to read as follows:                                   May 23, 2016.
                                                  as a result of this rule. You may send                                                                        FOR FURTHER INFORMATION CONTACT:
                                                  comments regarding the collection of                    SUPPLEMENT NO. 7 TO PART 744—
                                                                                                          TEMPORARY GENERAL LICENSE                             Kenneth Hubona (Technical
                                                  information associated with this rule,                                                                          Information), Office of Electric
                                                  including suggestions for reducing the                     Notwithstanding the requirements                     Reliability, Federal Energy Regulatory
                                                  burden, to Jasmeet K. Seehra, Office of                 and other provisions of supplement 4 to                 Commission, 888 First Street NE.,
                                                  Management and Budget (OMB), by                         part 744, which became effective on                     Washington, DC 20426, (301) 665–
                                                  email to Jasmeet_K._Seehra@                             March 8, 2016, the licensing and other                  1608, kenneth.hubona@ferc.gov.
                                                  omb.eop.gov, or by fax to (202) 395–                    requirements in the EAR as of March 7,                Kevin Ryan (Legal Information), Office
                                                  7285.                                                   2016, pertaining to exports, reexports,                 of the General Counsel, Federal
                                                    3. This rule does not contain policies                and transfers (in-country) of items                     Energy Regulatory Commission, 888
                                                  with Federalism implications as that                    ‘‘subject to the EAR’’ to Zhongxing                     First Street NE., Washington, DC
                                                  term is defined in Executive Order                      Telecommunications Equipment (ZTE)                      20426, (202) 502–6840, kevin.ryan@
                                                  13132.                                                  Corporation, ZTE Plaza, Keji Road                       ferc.gov.
                                                    4. The provisions of the                              South, Hi-Tech Industrial Park,
                                                                                                                                                                SUPPLEMENTARY INFORMATION:
                                                  Administrative Procedure Act (5 U.S.C.                  Nanshan District, Shenzhen, China, and
                                                  553) requiring notice of proposed                       ZTE Kangxun Telecommunications Ltd.,                  Order No. 823
                                                  rulemaking, the opportunity for public                  2/3 Floor, Suite A, ZTE Communication                 Final Rule
                                                  comment, and a delay in effective date                  Mansion Keji (S) Road, Hi-New
                                                  are inapplicable because this regulation                Shenzhen, 518057 China, are restored as                  1. Pursuant to section 215 of the
                                                  involves a military or foreign affairs                  of March 24, 2016 and through June 30,                Federal Power Act (FPA), the
                                                  function of the United States. (See 5                   2016. Thus, for example, the authority                Commission approves Reliability
                                                  U.S.C. 553(a)(1)). If this rule were                    of NLR or a License Exception that was                Standard PRC–026–1 (Relay
                                                  delayed to allow for notice and                         available as of March 7, 2016, may be                 Performance During Stable Power
                                                  comment and a delay in effective date,                  used as per this temporary general                    Swings).1 The North American Electric
                                                  then the national security and foreign                  license. The temporary general license                Reliability Corporation (NERC), the
                                                  policy objectives of this rule would be                 is renewable if the U.S. Government                   Commission-certified Electric
                                                  harmed. Because a notice of proposed                    determines, in its sole discretion, that              Reliability Organization (ERO),
                                                  rulemaking and an opportunity for                       ZTE Corporation and ZTE Kangxun are                   developed and submitted Reliability
                                                  public comment are not required to be                   timely performing their undertakings to               Standard PRC–026–1 for Commission
                                                  given for this rule by 5 U.S.C. 553, or                 the U.S. Government and otherwise                     approval. Reliability Standard PRC–
                                                  by any other law, the analytical                        cooperating with the U.S. Government                  026–1 applies to planning coordinators
                                                  requirements of the Regulatory                          in resolving the matter.                              and to generator owners and
                                                  Flexibility Act, 5 U.S.C. 601 et seq., are                                                                    transmission owners that apply certain
                                                                                                            Dated: March 21, 2016.
                                                  not applicable. Accordingly, no                                                                               load-responsive protective relays in
                                                                                                          Kevin J. Wolf,                                        specific, identified circumstances.
                                                  regulatory flexibility analysis is required
                                                  and none has been prepared.                             Assistant Secretary for Export                        Reliability Standard PRC–026–1 is
                                                                                                          Administration.                                       designed to ensure the use of protective
                                                  List of Subject in 15 CFR Part 744                      [FR Doc. 2016–06689 Filed 3–21–16; 4:15 pm]           relay systems that can differentiate
                                                    Exports, Reporting and recordkeeping                  BILLING CODE 3510–33–P                                between faults and stable power swings.
                                                  requirements, Terrorism.                                                                                         2. The Commission determines that
                                                    Accordingly, part 744 of the Export                                                                         Reliability Standard PRC–026–1
                                                  Administration Regulations (15 CFR                      DEPARTMENT OF ENERGY                                  satisfies the directive in Order No. 733
                                                  parts 730 through 774) is amended as                                                                          concerning undesirable relay operation
                                                  follows:                                                Federal Energy Regulatory                             due to power swings.2 The Commission
                                                                                                          Commission                                            concludes that Reliability Standard
                                                  PART 744—[AMENDED]                                                                                            PRC–026–1 provides an equally
                                                                                                          18 CFR Part 40                                        effective and efficient alternative to the
                                                  ■ 1. The authority citation for 15 CFR                                                                        Order No. 733 directive requiring the
                                                                                                          [Docket No. RM15–8–000; Order No. 823]
                                                  part 744 continues to read as follows:                                                                        use of protective relay systems that can
                                                    Authority: 50 U.S.C. 4601 et seq.; 50                 Relay Performance During Stable                       differentiate between faults and stable
                                                  U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;            Power Swings Reliability Standard                     power swings and, when necessary,
                                                  42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22                                                                   retirement of protective relay systems
                                                  U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,            AGENCY:  Federal Energy Regulatory                    that cannot meet this requirement.3
                                                  1978 Comp., p. 179; E.O. 12851, 58 FR 33181,            Commission, DOE.                                         3. The Commission approves NERC’s
                                                  3 CFR, 1993 Comp., p. 608; E.O. 12938, 59               ACTION: Final rule.                                   assigned violation risk factors, violation
asabaliauskas on DSK3SPTVN1PROD with RULES




                                                  FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
                                                  12947, 60 FR 5079, 3 CFR, 1995 Comp., p.                SUMMARY:   The Federal Energy                           1 16  U.S.C. 824o.
                                                  356; E.O. 13026, 61 FR 58767, 3 CFR, 1996               Regulatory Commission approves                          2 Transmission   Relay Loadability Reliability
                                                  Comp., p. 228; E.O. 13099, 63 FR 45167, 3
                                                  CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
                                                                                                          Reliability Standard PRC–026–1 (Relay                 Standard, Order No. 733, 130 FERC ¶ 61,221, at P
                                                                                                          Performance During Stable Power                       153 (2010), order on reh’g and clarification, Order
                                                  44025, 3 CFR, 2001 Comp., p. 783; E.O.                                                                        No. 733–A, 134 FERC ¶ 61,127, order on reh’g and
                                                  13224, 66 FR 49079, 3 CFR, 2001 Comp., p.               Swings), submitted by the North                       clarification, Order No. 733–B, 136 FERC ¶ 61,185
                                                  786; Notice of August 7, 2015, 80 FR 48233              American Electric Reliability                         (2011).
                                                  (August 11, 2015); Notice of September 18,              Corporation. Reliability Standard PRC–                  3 Id. P 150.




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Document Created: 2016-03-24 00:58:01
Document Modified: 2016-03-24 00:58:01
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
ActionFinal rule.
DatesThis rule is effective March 24, 2016 through June 30, 2016.
ContactChair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: [email protected]
FR Citation81 FR 15633 
RIN Number0694-AG82
CFR AssociatedExports; Reporting and Recordkeeping Requirements and Terrorism

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