81_FR_77073 81 FR 76859 - Amendments to the Export Administration Regulations: Update of Arms Embargoes on Cote d'Ivoire, Liberia, Sri Lanka and Vietnam, and Recognition of India as Member of the Missile Technology Control Regime

81 FR 76859 - Amendments to the Export Administration Regulations: Update of Arms Embargoes on Cote d'Ivoire, Liberia, Sri Lanka and Vietnam, and Recognition of India as Member of the Missile Technology Control Regime

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 214 (November 4, 2016)

Page Range76859-76861
FR Document2016-26535

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to implement changes in controls on arms and related materiel to Cote d'Ivoire, Liberia, Sri Lanka, and Vietnam. BIS also updates the EAR to recognize the accession of India as a member of the Missile Technology Control Regime (MTCR).

Federal Register, Volume 81 Issue 214 (Friday, November 4, 2016)
[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Rules and Regulations]
[Pages 76859-76861]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26535]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR 738, 740, 742 and 746

[Docket No. 160810723-6723-01]
RIN 0694-AH07


Amendments to the Export Administration Regulations: Update of 
Arms Embargoes on Cote d'Ivoire, Liberia, Sri Lanka and Vietnam, and 
Recognition of India as Member of the Missile Technology Control Regime

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to implement changes in 
controls on arms and related materiel to Cote d'Ivoire, Liberia, Sri 
Lanka, and Vietnam. BIS also updates the EAR to recognize the accession 
of India as a member of the Missile Technology Control Regime (MTCR).

DATES: This rule is effective November 4, 2016.

FOR FURTHER INFORMATION CONTACT: Elan Mitchell-Gee, telephone (202) 
482-4252, email [email protected].

SUPPLEMENTARY INFORMATION:

Background

    In this rule, BIS amends the Export Administration Regulations 
(EAR) to implement certain United Nations Security Council Resolutions 
(UNSCRs) adopted in 2016 that terminated arms embargoes against Cote 
d'Ivoire (UNSCR 2283) and Liberia (UNSCR 2288). Further, BIS removes 
U.S. arms embargo-related controls on Sri Lanka to reflect the 
Consolidated Appropriations Act, 2016, and on Vietnam pursuant to a 
determination made by the Secretary of State and announced by the 
President.
    BIS aims to harmonize the arms embargo-related provisions in the 
EAR, expressly or by reference, with the Directorate of Defense Trade 
Control's (DDTC) regulation of arms embargoes in Sec.  126.1 of the 
International Traffic in Arms Regulations (ITAR), ``Prohibited Exports, 
Imports, and Sales to or from Certain Countries.'' These actions 
further ongoing efforts to harmonize the EAR and the ITAR, and the 
President's Export Control Reform Initiative. The ITAR list 
incorporates countries subject to United Nations Security Council 
(UNSC) and U.S. arms embargoes. BIS primarily implements such controls 
through Country Group D: 5 ``U.S. Arms Embargoed Countries,'' in 
Supplement No. 1 to part 740 of the EAR. BIS also identifies specific 
countries subject to UNSC arms embargoes in part 746 of the EAR, and 
maintains controls on certain items pursuant to those embargoes on the 
Commerce Control List (CCL) in Supplement No. 1 to part 774.
    Countries listed in Country Group D:5 are subject to additional 
restrictions in the EAR, including on de minimis U.S. content, license 
exception availability, and licensing policy for certain items. For 
example, license applications for the export or reexport of items 
classified under 9x515 or ``600 series'' Export Control Classification 
Numbers (ECCNs) to countries in Country Group D:5 are reviewed 
consistent with the policies in Sec.  126.1 of the ITAR, as provided in 
paragraph (b)(ii) of Sec.  742.4 of the EAR. Additionally, license 
applications for items controlled on the CCL for United Nations Embargo 
reasons and destined to countries specified in Sec.  746.1(b) of the 
EAR are not approved by BIS if the authorization would be contrary to 
the relevant UNSCR, to the extent consistent with United States 
national

[[Page 76860]]

security and foreign policy interests. As a result of this rule, the 
relevant additional restrictions described above no longer apply to 
Cote d'Ivoire, Liberia, Sri Lanka, and Vietnam.
    Finally, on June 27, 2016, India acceded to the Missile Technology 
Control Regime (MTCR) as the 35th member. In this rule, BIS updates the 
EAR to recognize the status of India as a member of the Missile 
Technology Control Regime by amending paragraph (d) of Sec.  742.5 to 
remove the reference to India as an adherent to the MTCR. This rule 
includes a conforming amendment.

Respective Updates to EAR Arms Embargoes and Special Controls by 
Country

Cote d'Ivoire
    The arms embargo against Cote d'Ivoire was initially imposed 
through UNSCR 1572 (2004). UNSCR 2283 terminated the arms embargo 
against Cote d'Ivoire on April 28, 2016, in recognition of the progress 
achieved in the stabilization of the country, including in relation to 
disarmament, demobilization and reintegration, security sector reform, 
national reconciliation and the fight against impunity, as well as the 
successful conduct of the presidential election of October 25, 2015. 
Accordingly, this rule removes the United Nations Embargo (UN) controls 
on Cote d'Ivoire by removing that country from the names of UNSC arms 
embargoed countries in Sec.  746.1(b) and from Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR.
Liberia
    The arms embargo against Liberia was initially imposed through 
UNSCR 788 on November 19, 1992, and was continued through subsequent 
resolutions, including UNSCR 1903 (2009). The UNSC terminated the arms 
embargo against Liberia on May 25, 2016, through UNSCR 2288, in 
recognition of that country's progress in the past 13 years in building 
stable, effective and resilient national institutions. Accordingly, 
this rule removes the UN controls on Liberia by removing that country 
from the names of UNSC arms embargoed countries in Sec.  746.1(b) and 
from Country Group D:5 in Supplement No. 1 to part 740 of the EAR.
Sri Lanka
    The Department of State imposed a U.S. arms embargo on Sri Lanka on 
March 24, 2008, in accordance with the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2008 (Div. J, Pub. 
L. 110-161). However, licensing restrictions on Sri Lanka articulated 
in section 7044(e) of the Consolidated Appropriations Act, 2015 (Pub. 
L. 113-235) and in previous appropriations acts, were not carried 
forward in section 7044(e) of the Consolidated Appropriations Act, 2016 
(Pub. L. 114-113). On May 4, 2016, DDTC announced that it would begin 
reviewing license applications for Sri Lanka on a case-by-case basis. 
Accordingly, this rule removes Sri Lanka from Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR.
Vietnam
    Starting in the 1960s, the Department of State imposed a lethal 
arms sales embargo against Vietnam. Pursuant to a determination by the 
Secretary of State, the President announced the United States' 
termination of the U.S. arms embargo against Vietnam on May 23, 2016, 
in furtherance of deepening and broadening ties between the United 
States and Vietnam since the normalization of diplomatic relations. 
Accordingly, BIS removes Vietnam from Country Group D:5 in Supplement 
No.1 to part 740 the EAR.

International Export Control Regime Update: India, Member MTCR

    On June 27, 2016, India formally acceded to the MTCR as the 35th 
member. Prior to India's MTCR membership, India's commitment to the 
U.S.-India bilateral understanding contributed to the country's status 
as an ``MTCR adherent'' and placed the country among likeminded MTCR 
members in Country Group A:2 in Supplement No. 1 to part 740. In this 
rule, BIS formally recognizes India's status as a member of MTCR by 
removing the reference to India as only an ``MTCR adherent'' from 
paragraph (d) of Sec.  742.5 of the EAR.

Conforming Amendment

    Footnote notations appear next to countries listed in the Commerce 
Country Chart in Supplement No. 1 to part 738 of the EAR that are 
subject to UNSC arms embargos. BIS removes that notation for Cote 
d'Ivoire and Liberia to conform to the termination of UNSC arms 
embargoes against those countries.

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 4, 2016, 81 FR 52587 (August 8, 2016), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. BIS continues to carry out the provisions of the 
Export Administration Act, as appropriate and to the extent permitted 
by law, pursuant to Executive Order 13222 as amended by Executive Order 
13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is subject to a penalty for failure to 
comply with, a collection of information, subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
control number. This rule affects two approved collections: (1) The 
Simplified Network Application Processing + Redesign system (control 
number 0694-0088), which carries a burden hour estimate of 43.8 
minutes, including the time necessary to submit license applications, 
among other things, as well as miscellaneous and other recordkeeping 
activities that account for 12 minutes per submission; and (2) License 
Exceptions and Exclusions (0694-0137). This rule is not expected to 
increase the number of submissions under these collections.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States under 5 U.S.C. 553(a)(1). This final rule 
implements U.S. multilateral commitments pursuant to United Nations 
Security Council arms embargoes. The sanctions against Cote

[[Page 76861]]

d'Ivoire and Liberia were promulgated in part to fulfill U.S. 
obligations and serve collective security interests by implementing 
United Nations Security Council arms embargoes. Furthermore, arms 
embargoes were imposed on Sri Lanka and Vietnam by the United States to 
advance national and regional stability and security. Termination of 
these embargoes under the EAR recognizes progress in the security 
situations in Cote d'Ivoire and Liberia, changes in legislative 
mandates related to Sri Lanka, and the evolution of U.S. relations with 
Vietnam, and updates the EAR to bring it in line with those changes, 
including with international authorities supported by the United States 
and which already are in effect. Lastly, these updates and the 
recognition of India as a member of the MTCR help to prevent confusing 
the public as to the status of the named destinations for purposes of 
export controls under the EAR. No other law requires that a notice of 
proposed rulemaking and an opportunity for public comment be given for 
this rule. Because a notice of proposed rulemaking and an opportunity 
for public comment are not required to be given for this rule by 5 
U.S.C. 553, or by any other law, the analytical requirements of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. 
Therefore, this regulation is issued in final form and is made 
effective immediately upon publication.

List of Subjects

15 CFR Part 738

    Exports.

15 CFR Part 740

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 738, 740, 742 and 746 of the Export 
Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 738--[AMENDED]

0
1. The authority citation for part 738 continues to read as follows:

    Authority:  Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et 
seq.; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 
3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 U.S.C. 1824a; 50 
U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of August 4, 2016, 81 FR 52587 (August 8, 
2016).

Supplement No. 1 to Part 738--[Amended]

0
2. Supplement No. 1 to part 738 ``Commerce Country Chart'' is amended 
by removing the footnote notation number 1 from ``Cote d'Ivoire'' and 
``Liberia''.

PART 740--[AMENDED]

0
3. The authority citation for part 740 continues to read as follows:

    Authority: Authority: 50 U.S.C. 4601 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 4, 2016, 81 FR 52587 (August 8, 2016).

Supplement No. 1 to Part 740--[Amended]

0
4. Supplement No. 1 to part 740, Country Group D, is amended by:
0
a. Removing the entries for ``Cote d'Ivoire'', ``Liberia'' and ``Sri 
Lanka''; and
0
b. Removing the ``X'' under column D:5 ``U.S. Arms Embargoed 
Countries'' for ``Vietnam''.

PART 742--[AMENDED]

0
5. The authority citation for part 742 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; 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, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); Notice 
of August 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  742.5  [Amended]

0
6. Section 742.5 is amended by removing the clause ``, and India as an 
MTCR adherent,'' from the first sentence of paragraph (d).

PART 746--[AMENDED]

0
7. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 2006 Comp., p. 
325; Notice of May 3, 2016, 81 FR 27293 (May 5, 2016); Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  746.1  [Amended]

0
8. Section 746.1 is amended by removing ``Cote d'Ivoire (Ivory 
Coast),'' and ``Liberia,'' from the list of countries in paragraph 
(b)(2).

    Dated: October 28, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-26535 Filed 11-3-16; 8:45 am]
 BILLING CODE 3510-33-P



                                                               Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations                                          76859

                                             and effective September 15, 2016. FAA                   PART 71—DESIGNATION OF CLASS A,                         DATES: This rule is effective November
                                             Order 7400.11A is publicly available as                 B, C, D, AND E AIRSPACE AREAS; AIR                      4, 2016.
                                             listed in the ADDRESSES section of this                 TRAFFIC SERVICE ROUTES; AND                             FOR FURTHER INFORMATION CONTACT: Elan
                                             document. FAA Order 7400.11A lists                      REPORTING POINTS                                        Mitchell-Gee, telephone (202) 482–4252,
                                             Class A, B, C, D, and E airspace areas,                                                                         email elan.mitchell-gee@bis.doc.gov.
                                             air traffic service routes, and reporting               ■ 1. The authority citation for Part 71
                                                                                                                                                             SUPPLEMENTARY INFORMATION:
                                                                                                     continues to read as follows:
                                             points.
                                                                                                       Authority: 49 U.S.C. 106(f), 106(g); 40103,           Background
                                             The Rule                                                40113, 40120, E.O. 10854, 24 FR 9565, 3 CFR,               In this rule, BIS amends the Export
                                                                                                     1959–1963 Comp., p. 389.
                                               This amendment to Title 14, Code of                                                                           Administration Regulations (EAR) to
                                             Federal Regulations (14 CFR) part 71                    § 71.1       [Amended]                                  implement certain United Nations
                                             establishes Class E Airspace at Murray                                                                          Security Council Resolutions (UNSCRs)
                                                                                                     ■ 2. The incorporation by reference in
                                             Calloway County Hospital Heliport,                                                                              adopted in 2016 that terminated arms
                                                                                                     14 CFR 71.1 of FAA Order 7400.11A,
                                                                                                                                                             embargoes against Cote d’Ivoire (UNSCR
                                             Murray, KY. Controlled airspace                         Airspace Designations and Reporting
                                                                                                                                                             2283) and Liberia (UNSCR 2288).
                                             extending upward from 700 feet above                    Points, dated August 3, 2016, effective
                                                                                                     September 15, 2016, is amended as                       Further, BIS removes U.S. arms
                                             the surface within a 6-mile radius of the
                                                                                                     follows:                                                embargo-related controls on Sri Lanka to
                                             heliport is established for IFR                                                                                 reflect the Consolidated Appropriations
                                             operations.                                             Paragraph 6005. Class E Airspace Areas                  Act, 2016, and on Vietnam pursuant to
                                                                                                     Extending Upward From 700 Feet or More                  a determination made by the Secretary
                                             Regulatory Notices and Analyses                         Above the Surface of the Earth.
                                                                                                                                                             of State and announced by the
                                                The FAA has determined that this                     *        *      *      *       *                        President.
                                             regulation only involves an established                 ASO KY E5 Murray, KY [New]                                 BIS aims to harmonize the arms
                                             body of technical regulations for which                 Murray Calloway County Hospital Heliport,               embargo-related provisions in the EAR,
                                             frequent and routine amendments are                          KY                                                 expressly or by reference, with the
                                             necessary to keep them operationally                      (Lat. 36°36′27″ N., long. 88°18′36″ W.)               Directorate of Defense Trade Control’s
                                             current. It, therefore: (1) Is not a                      That airspace extending upward from 700               (DDTC) regulation of arms embargoes in
                                             ‘‘significant regulatory action’’ under                 feet above the surface within a 6-mile radius           § 126.1 of the International Traffic in
                                             Executive Order 12866; (2) is not a                     of Murray Calloway County Hospital                      Arms Regulations (ITAR), ‘‘Prohibited
                                                                                                     Heliport.                                               Exports, Imports, and Sales to or from
                                             ‘‘significant rule’’ under DOT
                                             Regulatory Policies and Procedures (44                    Issued in College Park, Georgia, on October           Certain Countries.’’ These actions
                                             FR 11034; February 26, 1979); and (3)                   21, 2016.                                               further ongoing efforts to harmonize the
                                             does not warrant preparation of a                       Ryan W. Almasy,                                         EAR and the ITAR, and the President’s
                                             regulatory evaluation as the anticipated                Manager, Operations Support Group, Eastern              Export Control Reform Initiative. The
                                                                                                     Service Center, Air Traffic Organization.               ITAR list incorporates countries subject
                                             impact is so minimal. Since this is a
                                                                                                     [FR Doc. 2016–26449 Filed 11–3–16; 8:45 am]             to United Nations Security Council
                                             routine matter that only affects air traffic
                                                                                                     BILLING CODE 4910–13–P                                  (UNSC) and U.S. arms embargoes. BIS
                                             procedures and air navigation, it is                                                                            primarily implements such controls
                                             certified that this rule, when                                                                                  through Country Group D: 5 ‘‘U.S. Arms
                                             promulgated, does not have a significant                                                                        Embargoed Countries,’’ in Supplement
                                             economic impact on a substantial                        DEPARTMENT OF COMMERCE
                                                                                                                                                             No. 1 to part 740 of the EAR. BIS also
                                             number of small entities under the                      Bureau of Industry and Security                         identifies specific countries subject to
                                             criteria of the Regulatory Flexibility Act.                                                                     UNSC arms embargoes in part 746 of the
                                             Environmental Review                                    15 CFR 738, 740, 742 and 746                            EAR, and maintains controls on certain
                                                                                                                                                             items pursuant to those embargoes on
                                                                                                     [Docket No. 160810723–6723–01]
                                                The FAA has determined that this                                                                             the Commerce Control List (CCL) in
                                             action qualifies for categorical exclusion              RIN 0694–AH07                                           Supplement No. 1 to part 774.
                                             under the National Environmental                                                                                   Countries listed in Country Group D:5
                                                                                                     Amendments to the Export                                are subject to additional restrictions in
                                             Policy Act in accordance with FAA
                                                                                                     Administration Regulations: Update of                   the EAR, including on de minimis U.S.
                                             Order 1050.1F, ‘‘Environmental
                                                                                                     Arms Embargoes on Cote d’Ivoire,                        content, license exception availability,
                                             Impacts: Policies and Procedures,’’
                                                                                                     Liberia, Sri Lanka and Vietnam, and                     and licensing policy for certain items.
                                             paragraph 5–6.5a. This airspace action                  Recognition of India as Member of the
                                             is not expected to cause any potentially                                                                        For example, license applications for
                                                                                                     Missile Technology Control Regime                       the export or reexport of items classified
                                             significant environmental impacts, and
                                             no extraordinary circumstances exist                    AGENCY:  Bureau of Industry and                         under 9x515 or ‘‘600 series’’ Export
                                                                                                     Security, Commerce.                                     Control Classification Numbers (ECCNs)
                                             that warrant preparation of an
                                                                                                     ACTION: Final rule.
                                                                                                                                                             to countries in Country Group D:5 are
                                             environmental assessment.
                                                                                                                                                             reviewed consistent with the policies in
                                             Lists of Subjects in 14 CFR Part 71                     SUMMARY:   In this rule, the Bureau of                  § 126.1 of the ITAR, as provided in
                                                                                                     Industry and Security (BIS) amends the                  paragraph (b)(ii) of § 742.4 of the EAR.
                                              Airspace, Incorporation by reference,                  Export Administration Regulations                       Additionally, license applications for
                                             Navigation (air).                                       (EAR) to implement changes in controls                  items controlled on the CCL for United
rmajette on DSK2TPTVN1PROD with RULES




                                             Adoption of the Amendment                               on arms and related materiel to Cote                    Nations Embargo reasons and destined
                                                                                                     d’Ivoire, Liberia, Sri Lanka, and                       to countries specified in § 746.1(b) of
                                               In consideration of the foregoing, the                Vietnam. BIS also updates the EAR to                    the EAR are not approved by BIS if the
                                             Federal Aviation Administration                         recognize the accession of India as a                   authorization would be contrary to the
                                             amends 14 CFR part 71 as follows:                       member of the Missile Technology                        relevant UNSCR, to the extent
                                                                                                     Control Regime (MTCR).                                  consistent with United States national


                                        VerDate Sep<11>2014   11:51 Nov 03, 2016   Jkt 241001   PO 00000   Frm 00017     Fmt 4700   Sfmt 4700   E:\FR\FM\04NOR1.SGM   04NOR1


                                             76860             Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations

                                             security and foreign policy interests. As               Appropriations Act, 2008 (Div. J, Pub. L.             as extended by the Notice of August 4,
                                             a result of this rule, the relevant                     110–161). However, licensing                          2016, 81 FR 52587 (August 8, 2016), has
                                             additional restrictions described above                 restrictions on Sri Lanka articulated in              continued the Export Administration
                                             no longer apply to Cote d’Ivoire, Liberia,              section 7044(e) of the Consolidated                   Regulations in effect under the
                                             Sri Lanka, and Vietnam.                                 Appropriations Act, 2015 (Pub. L. 113–                International Emergency Economic
                                                Finally, on June 27, 2016, India                     235) and in previous appropriations                   Powers Act. BIS continues to carry out
                                             acceded to the Missile Technology                       acts, were not carried forward in section             the provisions of the Export
                                             Control Regime (MTCR) as the 35th                       7044(e) of the Consolidated                           Administration Act, as appropriate and
                                             member. In this rule, BIS updates the                   Appropriations Act, 2016 (Pub. L. 114–                to the extent permitted by law, pursuant
                                             EAR to recognize the status of India as                 113). On May 4, 2016, DDTC announced                  to Executive Order 13222 as amended
                                             a member of the Missile Technology                      that it would begin reviewing license                 by Executive Order 13637.
                                             Control Regime by amending paragraph                    applications for Sri Lanka on a case-by-              Rulemaking Requirements
                                             (d) of § 742.5 to remove the reference to               case basis. Accordingly, this rule
                                             India as an adherent to the MTCR. This                  removes Sri Lanka from Country Group                     1. Executive Orders 13563 and 12866
                                             rule includes a conforming amendment.                   D:5 in Supplement No. 1 to part 740 of                direct agencies to assess all costs and
                                                                                                     the EAR.                                              benefits of available regulatory
                                             Respective Updates to EAR Arms                                                                                alternatives and, if regulation is
                                             Embargoes and Special Controls by                       Vietnam                                               necessary, to select regulatory
                                             Country                                                   Starting in the 1960s, the Department               approaches that maximize net benefits
                                             Cote d’Ivoire                                           of State imposed a lethal arms sales                  (including potential economic,
                                                                                                     embargo against Vietnam. Pursuant to a                environmental, public health and safety
                                               The arms embargo against Cote                         determination by the Secretary of State,              effects, distribute impacts, and equity).
                                             d’Ivoire was initially imposed through                  the President announced the United                    Executive Order 13563 emphasizes the
                                             UNSCR 1572 (2004). UNSCR 2283                           States’ termination of the U.S. arms                  importance of quantifying both costs
                                             terminated the arms embargo against                     embargo against Vietnam on May 23,                    and benefits, of reducing costs, of
                                             Cote d’Ivoire on April 28, 2016, in                     2016, in furtherance of deepening and                 harmonizing rules, and of promoting
                                             recognition of the progress achieved in                 broadening ties between the United                    flexibility. This rule has been
                                             the stabilization of the country,                       States and Vietnam since the                          determined to be not significant for
                                             including in relation to disarmament,                   normalization of diplomatic relations.                purposes of Executive Order 12866.
                                             demobilization and reintegration,                       Accordingly, BIS removes Vietnam from                    2. Notwithstanding any other
                                             security sector reform, national                        Country Group D:5 in Supplement No.1                  provision of law, no person is required
                                             reconciliation and the fight against                    to part 740 the EAR.                                  to respond to, nor is subject to a penalty
                                             impunity, as well as the successful                                                                           for failure to comply with, a collection
                                             conduct of the presidential election of                 International Export Control Regime                   of information, subject to the
                                             October 25, 2015. Accordingly, this rule                Update: India, Member MTCR                            requirements of the Paperwork
                                             removes the United Nations Embargo                        On June 27, 2016, India formally                    Reduction Act of 1995 (44 U.S.C. 3501
                                             (UN) controls on Cote d’Ivoire by                       acceded to the MTCR as the 35th                       et seq.) (PRA), unless that collection of
                                             removing that country from the names                    member. Prior to India’s MTCR                         information displays a currently valid
                                             of UNSC arms embargoed countries in                     membership, India’s commitment to the                 OMB control number. This rule affects
                                             § 746.1(b) and from Country Group D:5                   U.S.-India bilateral understanding                    two approved collections: (1) The
                                             in Supplement No. 1 to part 740 of the                  contributed to the country’s status as an             Simplified Network Application
                                             EAR.                                                    ‘‘MTCR adherent’’ and placed the                      Processing + Redesign system (control
                                                                                                     country among likeminded MTCR                         number 0694–0088), which carries a
                                             Liberia
                                                                                                     members in Country Group A:2 in                       burden hour estimate of 43.8 minutes,
                                                The arms embargo against Liberia was                 Supplement No. 1 to part 740. In this                 including the time necessary to submit
                                             initially imposed through UNSCR 788                     rule, BIS formally recognizes India’s                 license applications, among other
                                             on November 19, 1992, and was                           status as a member of MTCR by                         things, as well as miscellaneous and
                                             continued through subsequent                            removing the reference to India as only               other recordkeeping activities that
                                             resolutions, including UNSCR 1903                       an ‘‘MTCR adherent’’ from paragraph (d)               account for 12 minutes per submission;
                                             (2009). The UNSC terminated the arms                    of § 742.5 of the EAR.                                and (2) License Exceptions and
                                             embargo against Liberia on May 25,                                                                            Exclusions (0694–0137). This rule is not
                                             2016, through UNSCR 2288, in                            Conforming Amendment                                  expected to increase the number of
                                             recognition of that country’s progress in                 Footnote notations appear next to                   submissions under these collections.
                                             the past 13 years in building stable,                   countries listed in the Commerce                         3. This rule does not contain policies
                                             effective and resilient national                        Country Chart in Supplement No. 1 to                  with Federalism implications as that
                                             institutions. Accordingly, this rule                    part 738 of the EAR that are subject to               term is defined under E.O. 13132.
                                             removes the UN controls on Liberia by                   UNSC arms embargos. BIS removes that                     4. The provisions of the
                                             removing that country from the names                    notation for Cote d’Ivoire and Liberia to             Administrative Procedure Act (5 U.S.C.
                                             of UNSC arms embargoed countries in                     conform to the termination of UNSC                    553) requiring notice of proposed
                                             § 746.1(b) and from Country Group D:5                   arms embargoes against those countries.               rulemaking, the opportunity for public
                                             in Supplement No. 1 to part 740 of the                                                                        participation, and a delay in effective
                                             EAR.                                                    Export Administration Act                             date, are inapplicable because this
                                                                                                       Although the Export Administration                  regulation involves a military or foreign
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                                             Sri Lanka                                               Act expired on August 20, 2001, the                   affairs function of the United States
                                               The Department of State imposed a                     President, through Executive Order                    under 5 U.S.C. 553(a)(1). This final rule
                                             U.S. arms embargo on Sri Lanka on                       13222 of August 17, 2001, 3 CFR, 2001                 implements U.S. multilateral
                                             March 24, 2008, in accordance with the                  Comp., p. 783 (2002), as amended by                   commitments pursuant to United
                                             Department of State, Foreign                            Executive Order 13637 of March 8,                     Nations Security Council arms
                                             Operations, and Related Programs                        2013, 78 FR 16129 (March 13, 2013) and                embargoes. The sanctions against Cote


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                                                               Federal Register / Vol. 81, No. 214 / Friday, November 4, 2016 / Rules and Regulations                                              76861

                                             d’Ivoire and Liberia were promulgated                   7201 et seq.; 22 U.S.C. 7210; E.O. 13026, 61          Comp., p. 899; E.O. 13222, 66 FR 44025, 3
                                             in part to fulfill U.S. obligations and                 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.             CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
                                             serve collective security interests by                  13222, 66 FR 44025, 3 CFR, 2001 Comp., p.             26751, 3 CFR, 2004 Comp., p 168;
                                                                                                     783; Notice of August 4, 2016, 81 FR 52587            Presidential Determination 2003–23, 68 FR
                                             implementing United Nations Security
                                                                                                     (August 8, 2016).                                     26459, 3 CFR, 2004 Comp., p. 320;
                                             Council arms embargoes. Furthermore,                                                                          Presidential Determination 2007–7, 72 FR
                                             arms embargoes were imposed on Sri                      Supplement No. 1 to Part 738—                         1899, 3 CFR, 2006 Comp., p. 325; Notice of
                                             Lanka and Vietnam by the United States                  [Amended]                                             May 3, 2016, 81 FR 27293 (May 5, 2016);
                                             to advance national and regional                                                                              Notice of August 4, 2016, 81 FR 52587
                                                                                                     ■  2. Supplement No. 1 to part 738
                                             stability and security. Termination of                                                                        (August 8, 2016).
                                                                                                     ‘‘Commerce Country Chart’’ is amended
                                             these embargoes under the EAR
                                                                                                     by removing the footnote notation                     § 746.1    [Amended]
                                             recognizes progress in the security
                                                                                                     number 1 from ‘‘Cote d’Ivoire’’ and
                                             situations in Cote d’Ivoire and Liberia,                                                                      ■ 8. Section 746.1 is amended by
                                                                                                     ‘‘Liberia’’.
                                             changes in legislative mandates related                                                                       removing ‘‘Cote d’Ivoire (Ivory Coast),’’
                                             to Sri Lanka, and the evolution of U.S.                 PART 740—[AMENDED]                                    and ‘‘Liberia,’’ from the list of countries
                                             relations with Vietnam, and updates the                                                                       in paragraph (b)(2).
                                             EAR to bring it in line with those                      ■ 3. The authority citation for part 740                Dated: October 28, 2016.
                                             changes, including with international                   continues to read as follows:                         Kevin J. Wolf,
                                             authorities supported by the United                        Authority: Authority: 50 U.S.C. 4601 et            Assistant Secretary for Export
                                             States and which already are in effect.                 seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 7201          Administration.
                                             Lastly, these updates and the                           et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996
                                                                                                                                                           [FR Doc. 2016–26535 Filed 11–3–16; 8:45 am]
                                             recognition of India as a member of the                 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
                                                                                                     CFR, 2001 Comp., p. 783; Notice of August             BILLING CODE 3510–33–P
                                             MTCR help to prevent confusing the
                                             public as to the status of the named                    4, 2016, 81 FR 52587 (August 8, 2016).
                                             destinations for purposes of export                     Supplement No. 1 to Part 740—
                                             controls under the EAR. No other law                                                                          DEPARTMENT OF THE TREASURY
                                                                                                     [Amended]
                                             requires that a notice of proposed
                                                                                                     ■ 4. Supplement No. 1 to part 740,                    Office of Foreign Assets Control
                                             rulemaking and an opportunity for
                                             public comment be given for this rule.                  Country Group D, is amended by:
                                                                                                     ■ a. Removing the entries for ‘‘Cote                  31 CFR Parts 501 and 593 and
                                             Because a notice of proposed
                                                                                                     d’Ivoire’’, ‘‘Liberia’’ and ‘‘Sri Lanka’’;            Appendix A to Chapter V
                                             rulemaking and an opportunity for
                                             public comment are not required to be                   and
                                                                                                     ■ b. Removing the ‘‘X’’ under column                  Amendments to OFAC Regulations To
                                             given for this rule by 5 U.S.C. 553, or                                                                       Remove the Former Liberian Regime of
                                             by any other law, the analytical                        D:5 ‘‘U.S. Arms Embargoed Countries’’
                                                                                                     for ‘‘Vietnam’’.                                      Charles Taylor Sanctions Regulations
                                             requirements of the Regulatory                                                                                and References to Fax-on-Demand
                                             Flexibility Act, 5 U.S.C. 601 et seq., are              PART 742—[AMENDED]                                    Service
                                             not applicable. Therefore, this
                                             regulation is issued in final form and is               ■ 5. The authority citation for part 742              AGENCY:  Office of Foreign Assets
                                             made effective immediately upon                         continues to read as follows:                         Control, Treasury
                                             publication.                                               Authority: 50 U.S.C. 4601 et seq.; 50              ACTION: Final rule.
                                             List of Subjects                                        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           SUMMARY:    The Department of the
                                             15 CFR Part 738                                         U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117           Treasury’s Office of Foreign Assets
                                                                                                     Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,            Control (OFAC) is removing from the
                                               Exports.
                                                                                                     1978 Comp., p. 179; E.O. 12851, 58 FR 33181,          Code of Federal Regulations the Former
                                             15 CFR Part 740                                         3 CFR, 1993 Comp., p. 608; E.O. 12938, 59             Liberian Regime of Charles Taylor
                                                                                                     FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.             Sanctions Regulations as a result of the
                                               Administrative practice and
                                                                                                     13026, 61 FR 58767, 3 CFR, 1996 Comp., p.             termination of the national emergency
                                             procedure, Exports, Reporting and                       228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                             recordkeeping requirements.                                                                                   on which the regulations were based.
                                                                                                     Comp., p. 783; Presidential Determination
                                                                                                                                                           OFAC also is amending the Reporting,
                                             15 CFR Part 742                                         2003–23, 68 FR 26459, 3 CFR, 2004 Comp.,
                                                                                                     p. 320; Notice of November 12, 2015, 80 FR            Procedures and Penalties Regulations
                                               Exports, Terrorism.                                   70667 (November 13, 2015); Notice of August           and Appendix A to chapter V by making
                                                                                                     4, 2016, 81 FR 52587 (August 8, 2016).                technical changes including to remove
                                             15 CFR Part 746                                                                                               references to OFAC’s fax-on-demand
                                               Exports, Reporting and recordkeeping                  § 742.5   [Amended]                                   service in order to reflect the
                                             requirements.                                           ■ 6. Section 742.5 is amended by                      discontinuation of that service.
                                               Accordingly, parts 738, 740, 742 and                  removing the clause ‘‘, and India as an               DATES: Effective: November 4, 2016.
                                             746 of the Export Administration                        MTCR adherent,’’ from the first sentence              FOR FURTHER INFORMATION CONTACT: The
                                             Regulations (15 CFR parts 730–774) are                  of paragraph (d).                                     Department of the Treasury’s Office of
                                             amended as follows:                                                                                           Foreign Assets Control: Assistant
                                                                                                     PART 746—[AMENDED]
                                             PART 738—[AMENDED]                                                                                            Director for Licensing, tel.: 202–622–
                                                                                                     ■ 7. The authority citation for 15 CFR                2480, Assistant Director for Regulatory
                                                                                                                                                           Affairs, tel.: 202–622–4855, Assistant
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                                             ■ 1. The authority citation for part 738                part 746 continues to read as follows:
                                             continues to read as follows:                                                                                 Director for Sanctions Compliance &
                                                                                                       Authority: 50 U.S.C. 4601 et seq.; 50
                                               Authority: Authority: 50 U.S.C. 4601 et               U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503,
                                                                                                                                                           Evaluation, tel.: 202–622–2490, or the
                                             seq.; 50 U.S.C. 1701 et seq.; 10 U.S.C. 7420;           Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;        Department of the Treasury’s Office of
                                             10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C.            22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.          the Chief Counsel (Foreign Assets
                                             3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a;          12854, 58 FR 36587, 3 CFR, 1993 Comp., p.             Control), Office of the General Counsel,
                                             15 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C.              614; E.O. 12918, 59 FR 28205, 3 CFR, 1994             tel.: 202–622–2410.


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Document Created: 2018-02-14 08:27:19
Document Modified: 2018-02-14 08:27:19
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 November 4, 2016.
ContactElan Mitchell-Gee, telephone (202) 482-4252, email [email protected]
FR Citation81 FR 76859 
RIN Number0694-AH07
CFR Citation15 CFR 738
15 CFR 740
15 CFR 742
15 CFR 746
CFR AssociatedExports; Administrative Practice and Procedure; Reporting and Recordkeeping Requirements and Terrorism

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