81 FR 41799 - Temporary General License: Extension of Validity

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 124 (June 28, 2016)

Page Range		41799-41800
FR Document		2016-15228

On March 24, 2016, the Bureau of Industry and Security (BIS) published a final rule, Temporary General License. The March 24 final rule created a temporary general license that restored, for a specified time period, the licensing requirements and policies under the Export Administration Regulations (EAR) for exports, reexports, and transfers (in-country) as of March 7, 2016, to two entities (ZTE Corporation and ZTE Kangxun) that were added to the Entity List on March 8, 2016. At this time, the U.S. Government has decided to extend the temporary general license until August 30, 2016. In order to implement this decision, this final rule revises the temporary general license to remove the expiration date of June 30, 2016, and to substitute the date of August 30, 2016. This final rule makes no other changes to the EAR.

Federal Register, Volume 81 Issue 124 (Tuesday, June 28, 2016)

[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Pages 41799-41800]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15228]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 160106014-6530-03]
RIN 0694-AG82


Temporary General License: Extension of Validity

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: On March 24, 2016, the Bureau of Industry and Security (BIS) 
published a final rule, Temporary General License. The March 24 final 
rule created a temporary general license that restored, for a specified 
time period, the licensing requirements and policies under the Export 
Administration Regulations (EAR) for exports, reexports, and transfers 
(in-country) as of March 7, 2016, to two entities (ZTE Corporation and 
ZTE Kangxun) that were added to the Entity List on March 8, 2016. At 
this time, the U.S. Government has decided to extend the temporary 
general license until August 30, 2016. In order to implement this 
decision, this final rule revises the temporary general license to 
remove the expiration date of June 30, 2016, and to substitute the date 
of August 30, 2016. This final rule makes no other changes to the EAR.

DATES: This rule is effective June 28, 2016 through August 30, 2016. 
The expiration date of the final rule published on March 24, 2016 (81 
FR 15633) is extended until August 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, Phone: (202) 482-5991, 
Fax: (202) 482-3911, Email: [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    On March 24, 2016, the Bureau of Industry and Security (BIS) 
published a final rule, Temporary General License (81 FR 15633). The 
March 24 final rule amended the EAR by adding Supplement No. 7 to part 
744 to create a Temporary General License that returned, 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 were in 
effect prior to their addition 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''). Details regarding the 
Temporary General License can be found in the March 24 final rule and 
in Supplement No. 7 to Part 744--Temporary General License.
    BIS issued the March 24 final rule in connection with a request to 
remove or modify the listing. The March 24 final rule specified that 
the temporary general license was renewable if the U.S. Government 
determined, in its sole discretion, that ZTE Corporation and ZTE 
Kangxun were timely performing their undertakings to the U.S. 
Government and otherwise cooperating with the U.S. Government in 
resolving the matter which led to the two entities' listing.
    At this time, the U.S. Government has decided to extend the 
temporary general license until August 30, 2016. In order to implement 
this U.S. Government decision, this final rule revises the temporary 
general license to remove the date June 30, 2016, and substitute the 
date of August 30, 2016. This final rule makes no other changes 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.

[[Page 41800]]

    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license applications and carries a burden estimate of 
43.8 minutes for a manual or electronic submission. Total burden hours 
associated with the PRA and OMB control number 0694-0088 are not 
expected to increase as a result of this rule. You may send comments 
regarding the collection of information associated with this rule, 
including suggestions for reducing the burden, to Jasmeet K. Seehra, 
Office of Management and Budget (OMB), by email to 
[email protected], or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment, and a delay in effective date are inapplicable 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).

Supplement No. 7 to Part 744--[AMENDED]

0
2. In Supplement No. 7 to part 744, remove ``June 30, 2016'' and add in 
its place ``August 30, 2016''.

    Dated: June 23, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-15228 Filed 6-27-16; 8:45 am]
 BILLING CODE 3510-33-P

Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations 41799

Environmental Review DEPARTMENT OF COMMERCE addition to the Entity List on March 8,
2016. Details regarding the scope of the
The FAA has determined that this Bureau of Industry and Security listing are at 81 FR 12004 (Mar. 8, 2016),
action qualifies for categorical exclusion (‘‘Additions to the Entity List’’). Details
under the National Environmental 15 CFR Part 744 regarding the Temporary General
Policy Act in accordance with FAA License can be found in the March 24
Order 1050.1F, ‘‘Environmental [Docket No. 160106014–6530–03]
final rule and in Supplement No. 7 to
Impacts: Policies and Procedures,’’ RIN 0694–AG82 Part 744—Temporary General License.
paragraph 5–6.5a. This airspace action BIS issued the March 24 final rule in
is not expected to cause any potentially Temporary General License: Extension connection with a request to remove or
significant environmental impacts, and of Validity modify the listing. The March 24 final
no extraordinary circumstances exist AGENCY: Bureau of Industry and rule specified that the temporary general
that warrant preparation of an Security, Commerce. license was renewable if the U.S.
environmental assessment. Government determined, in its sole
ACTION: Final rule.
discretion, that ZTE Corporation and
Lists of Subjects in 14 CFR Part 71
SUMMARY: On March 24, 2016, the ZTE Kangxun were timely performing
Airspace, Incorporation by reference, Bureau of Industry and Security (BIS) their undertakings to the U.S.
Navigation (air). published a final rule, Temporary Government and otherwise cooperating
General License. The March 24 final with the U.S. Government in resolving
Adoption of the Amendment rule created a temporary general license the matter which led to the two entities’
that restored, for a specified time listing.
In consideration of the foregoing, the At this time, the U.S. Government has
Federal Aviation Administration period, the licensing requirements and
policies under the Export decided to extend the temporary general
amends 14 CFR part 71 as follows: license until August 30, 2016. In order
Administration Regulations (EAR) for
exports, reexports, and transfers (in- to implement this U.S. Government
PART 71—DESIGNATION OF CLASS A,
country) as of March 7, 2016, to two decision, this final rule revises the
B, C, D, AND E AIRSPACE AREAS; AIR
entities (ZTE Corporation and ZTE temporary general license to remove the
TRAFFIC SERVICE ROUTES; AND
Kangxun) that were added to the Entity date June 30, 2016, and substitute the
REPORTING POINTS
List on March 8, 2016. At this time, the date of August 30, 2016. This final rule
U.S. Government has decided to extend makes no other changes to the EAR.
■ 1. The authority citation for Part 71
continues to read as follows: the temporary general license until Export Administration Act
August 30, 2016. In order to implement
Authority: 49 U.S.C. 106(f), 106(g); 40103, this decision, this final rule revises the Although the Export Administration
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, temporary general license to remove the Act expired on August 20, 2001, the
1959–1963 Comp., p. 389. expiration date of June 30, 2016, and to President, through Executive Order
substitute the date of August 30, 2016. 13222 of August 17, 2001, 3 CFR, 2001
§ 71.1 [Amended] Comp., p. 783 (2002), as amended by
This final rule makes no other changes
■ 2. The incorporation by reference in to the EAR. Executive Order 13637 of March 8,
14 CFR 71.1 of FAA Order 7400.9Z, 2013, 78 FR 16129 (March 13, 2013) and
DATES: This rule is effective June 28,
Airspace Designations and Reporting as extended by the Notice of August 7,
2016 through August 30, 2016. The 2015, 80 FR 48233 (August 11, 2015),
Points, dated August 6, 2015, and expiration date of the final rule
effective September 15, 2015, is has continued the Export
published on March 24, 2016 (81 FR Administration Regulations in effect
amended as follows: 15633) is extended until August 30, under the International Emergency
Paragraph 6005 Class E Airspace Areas 2016. Economic Powers Act. BIS continues to
Extending Upward From 700 Feet or More FOR FURTHER INFORMATION CONTACT: carry out the provisions of the Export
Above the Surface of the Earth. Chair, End-User Review Committee, Administration Act, as appropriate and
* * * * * Office of the Assistant Secretary, Export to the extent permitted by law, pursuant
Administration, Bureau of Industry and to Executive Order 13222, as amended
ANM WA E5 Shelton, WA [New]
Security, Department of Commerce, by Executive Order 13637.
Sanderson Field Airport, WA Phone: (202) 482–5991, Fax: (202) 482–
(Lat. 47°14′01″ N., long. 123°08′51″ W.) 3911, Email: ERC@bis.doc.gov. Rulemaking Requirements
That airspace extending upward from 700 SUPPLEMENTARY INFORMATION: 1. Executive Orders 13563 and 12866
feet above the surface within a 4-mile radius direct agencies to assess all costs and
of Sanderson Field Airport, and that airspace Background benefits of available regulatory
1.5 miles either side of the 068° bearing from On March 24, 2016, the Bureau of alternatives and, if regulation is
airport extending from the 4-mile radius to 5 necessary, to select regulatory
Industry and Security (BIS) published a
miles northeast of the airport, and that
final rule, Temporary General License approaches that maximize net benefits
airspace 2.3 miles either side of the 248°
bearing from airport extending from the 4-
(81 FR 15633). The March 24 final rule (including potential economic,
mile radius to 9.5 miles southwest of the amended the EAR by adding environmental, public health and safety
airport. Supplement No. 7 to part 744 to create effects, distributive impacts, and
asabaliauskas on DSK3SPTVN1PROD with RULES

a Temporary General License that equity). Executive Order 13563
Issued in Seattle, Washington, on June 17, returned, until June 30, 2016, the emphasizes the importance of
2016.
licensing and other policies of the EAR quantifying both costs and benefits, of
Brian J. Johnson, regarding exports, reexports, and reducing costs, of harmonizing rules,
Acting Manager, Operations Support Group, transfers (in-country) to Zhongxing and of promoting flexibility. This rule
Western Service Center. Telecommunications Equipment (ZTE) has been determined to be not
[FR Doc. 2016–15184 Filed 6–27–16; 8:45 am] Corporation and ZTE Kangxun to that significant for purposes of Executive
BILLING CODE 4910–13–P which were in effect prior to their Order 12866.

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41800 Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Rules and Regulations

2. Notwithstanding any other PART 744—[AMENDED] DATES: This correction is effective on
provision of law, no person is required June 28, 2016 and applicable on June 8,
to respond to nor be subject to a penalty ■ 1. The authority citation for 15 CFR 2016.
for failure to comply with a collection part 744 continues to read as follows:
FOR FURTHER INFORMATION CONTACT:
of information, subject to the 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. Austin M. Diamond-Jones at (202) 317–
requirements of the Paperwork
2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 5085 (not a toll free number).
Reduction Act of 1995 (44 U.S.C. 3501
E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp.,
et seq.) (PRA), unless that collection of p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993
SUPPLEMENTARY INFORMATION:
information displays a currently valid Comp., p. 608; E.O. 12938, 59 FR 59099, 3 Background
Office of Management and Budget CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR
(OMB) Control Number. This regulation 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, The final and temporary regulations
involves collections previously 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
(TD 9770) that are the subject of this
approved by OMB under control 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 correction are under section 337(d) of
number 0694–0088, Simplified Network Comp., p. 783; E.O. 13224, 66 FR 49079, 3 the Internal Revenue Code.
Application Processing System, which CFR, 2001 Comp., p. 786; Notice of August
includes, among other things, license 7, 2015, 80 FR 48233 (August 11, 2015); Need for Correction
applications and carries a burden Notice of September 18, 2015, 80 FR 57281
As published, the final and temporary
estimate of 43.8 minutes for a manual or (September 22, 2015); Notice of November
12, 2015, 80 FR 70667 (November 13, 2015); regulations (TD 9770) contain an error
electronic submission. Total burden
Notice of January 20, 2016, 81 FR 3937 that may prove to be misleading and is
hours associated with the PRA and (January 22, 2016). in need of clarification.
OMB control number 0694–0088 are not
expected to increase as a result of this Supplement No. 7 to Part 744— List of Subjects in 26 CFR Part 1
rule. You may send comments regarding [AMENDED]
the collection of information associated Income taxes, Reporting and
■ 2. In Supplement No. 7 to part 744,
with this rule, including suggestions for recordkeeping requirements.
remove ‘‘June 30, 2016’’ and add in its
reducing the burden, to Jasmeet K. place ‘‘August 30, 2016’’. Correction of Publication
Seehra, Office of Management and Dated: June 23, 2016.
Budget (OMB), by email to Jasmeet_K._ Accordingly, 26 CFR part 1 is
Kevin J. Wolf,
Seehra@omb.eop.gov, or by fax to (202) corrected by making the following
Assistant Secretary for Export
395–7285. correcting amendment:
Administration.
3. This rule does not contain policies [FR Doc. 2016–15228 Filed 6–27–16; 8:45 am] PART 1—INCOME TAXES
with Federalism implications as that BILLING CODE 3510–33–P
term is defined in Executive Order
■ Paragraph 1. The authority citation
13132.
for part 1 continues to read in part as
4. The provisions of the DEPARTMENT OF THE TREASURY follows:
Administrative Procedure Act (5 U.S.C.
Internal Revenue Service Authority: 26 U.S.C. 7805 * * *
553) requiring notice of proposed
rulemaking, the opportunity for public ■ Par. 2. Section 1.337(d)–7T is
comment, and a delay in effective date 26 CFR Part 1
amended by revising paragraph (f)(3)(iii)
are inapplicable because this regulation [TD 9770] to read as follows:
involves a military or foreign affairs RIN 1545–BN39
function of the United States. (See 5 § 1.337(d)–7T Tax on property owned by a
U.S.C. 553(a)(1)). If this rule were Certain Transfers of Property to C corporation that becomes property of a
delayed to allow for notice and Regulated Investment Companies RIC or REIT.
comment and a delay in effective date, [RICs] and Real Estate Investment * * * * *
then the national security and foreign Trusts [REITs]; Correction (f) * * *
policy objectives of this rule would be
AGENCY: Internal Revenue Service (IRS), (3) * * *
harmed. Because a notice of proposed
Treasury. (iii) The related section 355
rulemaking and an opportunity for
ACTION: Final and temporary distribution occurred before December
public comment are not required to be
regulations; correcting amendment. 7, 2015 or is described in a ruling
given for this rule by 5 U.S.C. 553, or
by any other law, the analytical SUMMARY: This document contains a request referred to in section 311(c) of
requirements of the Regulatory correction to final and temporary Division Q of the Consolidated
Flexibility Act, 5 U.S.C. 601 et seq., are regulations (TD 9770) that were Appropriations Act, 2016, Public Law
not applicable. Accordingly, no published in the Federal Register on 114–113, 129 Stat. 2422.
regulatory flexibility analysis is required June 8, 2016 (81 FR 36793). The final * * * * *
and none has been prepared. and temporary regulations effect the
repeal of the General Utilities doctrine Martin V. Franks,
List of Subject in 15 CFR Part 744
asabaliauskas on DSK3SPTVN1PROD with RULES

by the Tax Reform Act of 1986 and Chief, Publications and Regulations Branch,
prevent abuse of the Protecting Legal Processing Division, Associate Chief
Exports, Reporting and recordkeeping Counsel (Procedure and Administration).
requirements, Terrorism. Americans from Tax Hikes Act of 2015.
The temporary regulations impose [FR Doc. 2016–15264 Filed 6–27–16; 8:45 am]
Accordingly, part 744 of the Export corporate level tax on certain BILLING CODE 4830–01–P
Administration Regulations (15 CFR transactions in which property of a C
parts 730 through 774) is amended as corporation becomes the property of a
follows: REIT.

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Document Created: 2016-06-28 00:53:28
Document Modified: 2016-06-28 00:53:28

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This rule is effective June 28, 2016 through August 30, 2016. The expiration date of the final rule published on March 24, 2016 (81 FR 15633) is extended until August 30, 2016.
Contact		Chair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202) 482-3911, Email: [email protected]
FR Citation		81 FR 41799
RIN Number		0694-AG82
CFR Associated		Exports; Reporting and Recordkeeping Requirements and Terrorism

81 FR 41799 - Temporary General License: Extension of Validity

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 81, Issue 124 (June 28, 2016)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security