81 FR 78714 - Updated Statements of Legal Authority for the Export Administration Regulations

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 217 (November 9, 2016)

Page Range		78714-78715
FR Document		2016-27017

This rule updates the Code of Federal Regulations (CFR) legal authority paragraphs in the Export Administration Regulations (EAR) to cite the most recent Presidential notice continuing an emergency declared pursuant to the International Emergency Economic Powers Act. This is a non-substantive rule that only updates authority paragraphs of the EAR. It does not alter any right, obligation or prohibition that applies to any person under the EAR.

Federal Register, Volume 81 Issue 217 (Wednesday, November 9, 2016)

[Federal Register Volume 81, Number 217 (Wednesday, November 9, 2016)]
[Rules and Regulations]
[Pages 78714-78715]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27017]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730 and 744

[Docket No. 161012953-6953-01]
RIN 0694-AH15


Updated Statements of Legal Authority for the Export 
Administration Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule updates the Code of Federal Regulations (CFR) legal 
authority paragraphs in the Export Administration Regulations (EAR) to 
cite the most recent Presidential notice continuing an emergency 
declared pursuant to the International Emergency Economic Powers Act. 
This is a non-substantive rule that only updates authority paragraphs 
of the EAR. It does not alter any right, obligation or prohibition that 
applies to any person under the EAR.

DATES: The rule is effective November 9, 2016.

FOR FURTHER INFORMATION CONTACT: Nancy Kook, Regulatory Policy 
Division, Bureau of Industry and Security, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION: 

Background

    The authority for parts 730 and 744 of the EAR rests, in part, on 
Executive Order 13224 of September 23, 2001--Blocking Property and 
Prohibiting Transactions With Persons Who Commit, Threaten To Commit, 
or Support Terrorism, 66 FR 49079, 3 CFR, 2001 Comp., p. 786 and on 
annual notices continuing the emergency declared in that executive 
order. This rule revises the authority paragraphs for the affected 
parts of the EAR to cite the most recent such notice, which the 
President signed on September 15, 2016.
    This rule is purely non-substantive and makes no changes other than 
to revise CFR authority paragraphs for the purpose of making the 
authority citations current. It does not change the text of any section 
of the EAR, nor does it alter any right, obligation or prohibition that 
applies to any person under the EAR.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). This rule 
does not impose any regulatory burden on the public and is consistent 
with the goals of Executive Order 13563. This rule has been determined 
to be not significant for purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
does not involve any collection of information.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
requiring prior notice and the opportunity for public comment because 
they are unnecessary. This rule only updates legal authority citations. 
It clarifies information and is non-discretionary. This rule does not 
alter any right, obligation or prohibition that applies to any person 
under the EAR. Because these revisions are not substantive changes, it 
is unnecessary to provide notice and opportunity for public comment. In 
addition, the 30-day delay in effectiveness otherwise required by 5 
U.S.C. 553(d) is not applicable because this rule is not a substantive 
rule. Because neither the Administrative Procedure Act nor any other 
law requires that notice of proposed rulemaking and an opportunity for 
public comment be given for this rule, the analytical requirements of 
the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not 
applicable. Accordingly, no Final Regulatory Flexibility Analysis is 
required and none has been prepared.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees, 
Exports, Reporting and recordkeeping requirements, Strategic and 
critical materials.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, parts 730 and 744 of the EAR (15 CFR parts 730-774) 
are amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for 15 CFR part 730 is revised to read as 
follows:

    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. 2151 note; 
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. 
11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 
35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854, 
58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918, 59 FR 28205, 3 
CFR, 1994 Comp., p. 899; 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. 
12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O. 13020, 61 FR 
54079, 3 CFR, 1996 Comp., p. 219; 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

[[Page 78715]]

Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; 
E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; E.O. 13637, 78 FR 
16129, 3 CFR, 2014 Comp., p. 223; Notice of November 12, 2015, 80 FR 
70667 (November 13, 2015); Notice of January 20, 2016, 81 FR 3937 
(January 22, 2016); Notice of May 3, 2016, 81 FR 27293 (May 5, 
2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); 
Notice of September 15, 2016, 81 FR 64343 (September 19, 2016).

PART 744--[AMENDED]

0
2. The authority citation for 15 CFR part 744 is revised 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 November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); 
Notice of September 15, 2016, 81 FR 64343 (September 19, 2016).

    Dated: November 3, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-27017 Filed 11-8-16; 8:45 am]
BILLING CODE 3510-33-P

78714 Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Rules and Regulations

(k) Material Incorporated by Reference DATES: The rule is effective November 9, waive the provisions of the
(1) The Director of the Federal Register 2016. Administrative Procedure Act requiring
approved the incorporation by reference FOR FURTHER INFORMATION CONTACT: prior notice and the opportunity for
(IBR) of the service information listed in this Nancy Kook, Regulatory Policy public comment because they are
paragraph under 5 U.S.C. 552(a) and 1 CFR unnecessary. This rule only updates
part 51.
Division, Bureau of Industry and
Security, Telephone: (202) 482–2440. legal authority citations. It clarifies
(2) You must use this service information
as applicable to do the actions required by SUPPLEMENTARY INFORMATION:
information and is non-discretionary.
this AD, unless the AD specifies otherwise. This rule does not alter any right,
(i) Boeing Alert Service Bulletin 737– Background obligation or prohibition that applies to
29A1119, Revision 1, dated June 23, 2016. The authority for parts 730 and 744 of any person under the EAR. Because
(ii) Reserved. the EAR rests, in part, on Executive these revisions are not substantive
(3) For Boeing service information changes, it is unnecessary to provide
Order 13224 of September 23, 2001—
identified in this AD, contact Boeing notice and opportunity for public
Commercial Airplanes, Attention: Blocking Property and Prohibiting
Transactions With Persons Who comment. In addition, the 30-day delay
Contractual & Data Services (C&DS), 2600
Westminster Blvd., MC 110–SK57, Seal Commit, Threaten To Commit, or in effectiveness otherwise required by 5
Beach, CA 90740–5600; telephone 562–797– Support Terrorism, 66 FR 49079, 3 CFR, U.S.C. 553(d) is not applicable because
1717; Internet https:// 2001 Comp., p. 786 and on annual this rule is not a substantive rule.
www.myboeingfleet.com. notices continuing the emergency Because neither the Administrative
(4) You may view this service information declared in that executive order. This Procedure Act nor any other law
at FAA, Transport Airplane Directorate, 1601 rule revises the authority paragraphs for requires that notice of proposed
Lind Avenue SW., Renton, WA. For rulemaking and an opportunity for
information on the availability of this
the affected parts of the EAR to cite the
most recent such notice, which the public comment be given for this rule,
material at the FAA, call 425–227–1221. the analytical requirements of the
(5) You may view this service information President signed on September 15, 2016.
that is incorporated by reference at the This rule is purely non-substantive Regulatory Flexibility Act (5 U.S.C. 601
National Archives and Records and makes no changes other than to et seq.) are not applicable. Accordingly,
Administration (NARA). For information on revise CFR authority paragraphs for the no Final Regulatory Flexibility Analysis
the availability of this material at NARA, call purpose of making the authority is required and none has been prepared.
202–741–6030, or go to: http:// citations current. It does not change the
www.archives.gov/federal-register/cfr/ibr-
List of Subjects
text of any section of the EAR, nor does
locations.html. 15 CFR Part 730
it alter any right, obligation or
Issued in Renton, Washington, on October prohibition that applies to any person Administrative practice and
25, 2016. under the EAR. procedure, Advisory committees,
Dionne Palermo, Exports, Reporting and recordkeeping
Acting Manager, Transport Airplane
Rulemaking Requirements
requirements, Strategic and critical
Directorate, Aircraft Certification Service. 1. Executive Orders 13563 and 12866 materials.
[FR Doc. 2016–26163 Filed 11–8–16; 8:45 am] direct agencies to assess all costs and
BILLING CODE 4910–13–P benefits of available regulatory 15 CFR Part 744
alternatives and, if regulation is Exports, Reporting and recordkeeping
necessary, to select regulatory requirements, Terrorism.
DEPARTMENT OF COMMERCE approaches that maximize net benefits Accordingly, parts 730 and 744 of the
(including potential economic, EAR (15 CFR parts 730–774) are
Bureau of Industry and Security environmental, public health and safety amended as follows:
effects, distributive impacts, and
15 CFR Parts 730 and 744 equity). This rule does not impose any PART 730—[AMENDED]
regulatory burden on the public and is
[Docket No. 161012953–6953–01]
consistent with the goals of Executive ■ 1. The authority citation for 15 CFR
RIN 0694–AH15 Order 13563. This rule has been part 730 is revised to read as follows:
determined to be not significant for Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
Updated Statements of Legal Authority purposes of Executive Order 12866. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
for the Export Administration 2. Notwithstanding any other 7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note;
Regulations provision of law, no person is required 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42
to respond to, nor shall any person be U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C.
AGENCY: Bureau of Industry and
subject to a penalty for failure to comply 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
Security, Commerce. E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp.,
ACTION: Final rule. with, a collection of information subject
p. 114; E.O. 12002, 42 FR 35623, 3 CFR, 1977
to the requirements of the Paperwork Comp., p. 133; E.O. 12058, 43 FR 20947, 3
SUMMARY: This rule updates the Code of Reduction Act of 1995 (44 U.S.C. 3501 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR
Federal Regulations (CFR) legal et seq.) (PRA), unless that collection of 29783, 3 CFR, 1980 Comp., p. 256; E.O.
authority paragraphs in the Export information displays a currently valid 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
Administration Regulations (EAR) to Office of Management and Budget 608; E.O. 12854, 58 FR 36587, 3 CFR, 1993
cite the most recent Presidential notice (OMB) Control Number. This rule does Comp., p. 179; E.O. 12918, 59 FR 28205, 3
continuing an emergency declared not involve any collection of CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR
jstallworth on DSK7TPTVN1PROD with RULES

pursuant to the International Emergency information. 59099, 3 CFR, 1994 Comp., p. 950; E.O.
Economic Powers Act. This is a non- 3. This rule does not contain policies 12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
356; E.O. 12981, 60 FR 62981, 3 CFR, 1995
substantive rule that only updates with Federalism implications as that Comp., p. 419; E.O. 13020, 61 FR 54079, 3
authority paragraphs of the EAR. It does term is defined under Executive Order CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR
not alter any right, obligation or 13132. 58767, 3 CFR, 1996 Comp., p. 228; E.O.
prohibition that applies to any person 4. The Department finds that there is 13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
under the EAR. good cause under 5 U.S.C. 553(b)(B) to 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001

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Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Rules and Regulations 78715

Comp., p. 783; E.O. 13224, 66 FR 49079, 3 apply special due diligence to guard institutions. Section 311 identifies
CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR against such use by North Korean factors for the Secretary to consider and
26751, 3 CFR, 2004 Comp., p 168; E.O. financial institutions. requires consultations with Federal
13637, 78 FR 16129, 3 CFR, 2014 Comp., p. agencies before making a finding that
DATES: This final rule is effective
223; Notice of November 12, 2015, 80 FR
70667 (November 13, 2015); Notice of December 9, 2016. reasonable grounds exist for concluding
January 20, 2016, 81 FR 3937 (January 22, FOR FURTHER INFORMATION CONTACT: The that a jurisdiction, institution, class of
2016); Notice of May 3, 2016, 81 FR 27293 FinCEN Resource Center, (800) 949– transactions or type of account is of
(May 5, 2016); Notice of August 4, 2016, 81 2732. primary money laundering concern. The
FR 52587 (August 8, 2016); Notice of statute also provides similar procedures,
SUPPLEMENTARY INFORMATION:
September 15, 2016, 81 FR 64343 (September including factors to consider and
19, 2016). I. Statutory Provisions consultation requirements for selecting
On October 26, 2001, the President and imposing the fifth special measure.
PART 744—[AMENDED]
signed into law the Uniting and II. FinCEN’s Section 311 Rulemaking
■ 2. The authority citation for 15 CFR Strengthening America by Providing Regarding North Korea
part 744 is revised to read as follows: Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, A. Notice of Finding Regarding North
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. Korea
1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. Public Law 107–56 (the USA PATRIOT
2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; Act). Title III of the USA PATRIOT Act In a Notice of Finding (NOF)
E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., amended the anti-money laundering published in the Federal Register on
p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 (AML) provisions of the Bank Secrecy June 2, 2016, FinCEN found that
Comp., p. 608; E.O. 12938, 59 FR 59099, 3 Act (BSA), codified at 12 U.S.C. 1829b, reasonable grounds exist for concluding
CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 12 U.S.C. 1951–1959, and 31 U.S.C. that the Democratic People’s Republic of
5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 5311–5314, 5316–5332, to promote the Korea (DPRK or North Korea) is a
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. prevention, detection, and prosecution jurisdiction of primary money
13099, 63 FR 45167, 3 CFR, 1998 Comp., p. of international money laundering and
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 laundering concern pursuant to 31
Comp., p. 783; E.O. 13224, 66 FR 49079, 3
the financing of terrorism. Regulations U.S.C. 5318A.2 FinCEN’s NOF noted
CFR, 2001 Comp., p. 786; Notice of implementing the BSA appear at 31 CFR four main areas of concern: North Korea
November 12, 2015, 80 FR 70667 (November Chapter X. The authority of the (1) uses state-controlled financial
13, 2015); Notice of January 20, 2016, 81 FR Secretary of the Treasury (the Secretary) institutions and front companies to
3937 (January 22, 2016); Notice of August 4, to administer the BSA and its conduct international financial
2016, 81 FR 52587 (August 8, 2016); Notice implementing regulations has been transactions that support the
of September 15, 2016, 81 FR 64343 delegated to the Director of FinCEN.1 proliferation of weapons of mass
(September 19, 2016). Section 311 of the USA PATRIOT Act destruction (WMD) and the
Dated: November 3, 2016. (Section 311), codified at 31 U.S.C. development of ballistic missiles in
Kevin J. Wolf, 5318A, grants FinCEN the authority, violation of international and U.S.
Assistant Secretary for Export
upon finding that reasonable grounds sanctions; (2) is subject to little or no
Administration. exist for concluding that a foreign bank supervision or anti-money
[FR Doc. 2016–27017 Filed 11–8–16; 8:45 am]
jurisdiction, financial institution, class laundering or combating the financing
of transactions, or type of account is of of terrorism (‘‘AML/CFT’’) controls; (3)
BILLING CODE 3510–33–P
‘‘primary money laundering concern,’’ has no mutual legal assistance treaty
to require domestic financial with the United States; and (4) relies on
institutions and financial agencies to the illicit and corrupt activity of high-
DEPARTMENT OF THE TREASURY take certain ‘‘special measures’’ to level officials to support its government.
address the primary money laundering In the NOF, FinCEN also noted that
Financial Crimes Enforcement Network
concern. The special measures the North Korean government continues
enumerated under Section 311 are to access the international financial
31 CFR Part 1010
prophylactic safeguards that defend the system to support its WMD and
RIN 1506–AB35 U.S. financial system from money conventional weapons programs
laundering and terrorist financing. through its use of aliases, agents, foreign
Imposition of Special Measure Against FinCEN may impose one or more of
North Korea as a Jurisdiction of individuals in multiple jurisdictions,
these special measures in order to and a long-standing network of front
Primary Money Laundering Concern protect the U.S. financial system from companies and North Korean embassy
AGENCY: Financial Crimes Enforcement these threats. Special measures one personnel which support illicit
Network (‘‘FinCEN’’), Treasury. through four, codified at 31 U.S.C. activities through banking, bulk cash,
5318A(b)(1)–(b)(4), impose additional and trade. Front company transactions
ACTION: Final rule.
recordkeeping, information collection, originating in foreign-based banks have
SUMMARY: FinCEN is issuing this final and reporting requirements on covered been processed through correspondent
rule to prohibit U.S. financial U.S. financial institutions. The fifth bank accounts in the United States and
institutions from opening or special measure, codified at 31 U.S.C. Europe. Further, the enhanced due
maintaining a correspondent account 5318A(b)(5), allows FinCEN to prohibit diligence required by United Nations
for, or on behalf of, North Korean or impose conditions on the opening or Security Council Resolutions (UNSCRs)
jstallworth on DSK7TPTVN1PROD with RULES

banking institutions. The rule further maintaining of correspondent or related to North Korea is undermined by
prohibits U.S. financial institutions payable-through accounts for the North Korean-linked front companies,
from processing transactions for the identified jurisdiction by U.S. financial which are often registered by non-North
correspondent account of a foreign bank 1 Therefore, references to the authority of the
Korean citizens, and which conceal
in the United States if such a transaction Secretary of the Treasury under Section 311 of the their activity through the use of indirect
involves a North Korean financial USA PATRIOT Act apply equally to the Director of
institution, and requires institutions to FinCEN. 2 81 FR 35441 (June 2, 2016).

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Document Created: 2016-11-09 01:39:36
Document Modified: 2016-11-09 01:39:36

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		The rule is effective November 9, 2016.
Contact		Nancy Kook, Regulatory Policy Division, Bureau of Industry and Security, Telephone: (202) 482-2440.
FR Citation		81 FR 78714
RIN Number		0694-AH15
CFR Citation		15 CFR 730 15 CFR 744
CFR Associated		Administrative Practice and Procedure; Advisory Committees; Exports; Reporting and Recordkeeping Requirements; Strategic and Critical Materials and Terrorism

81 FR 78714 - Updated Statements of Legal Authority for the Export Administration Regulations

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 81, Issue 217 (November 9, 2016)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security