81 FR 86571 - Temporary Exports to Mexico Under License Exception TMP
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 81, Issue 231 (December 1, 2016)
Bureau of Industry and Security
Federal Register Volume 81, Issue 231 (December 1, 2016)
| Page Range | 86571-86573 | |
| FR Document | 2016-28893 |
[Federal Register Volume 81, Number 231 (Thursday, December 1, 2016)] [Rules and Regulations] [Pages 86571-86573] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-28893] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 740 [160519443-6999-02] RIN 0694-AG97 Temporary Exports to Mexico Under License Exception TMP AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This final rule aligns the time limit of License Exception Temporary Imports, Exports, Reexports, and Transfers (in-country) (TMP), which authorizes, among other things, certain temporary exports to Mexico, with the time limit of Mexico's Decree for the Promotion of Manufacturing, Maquiladora and Export Services (IMMEX) program. Currently, TMP allows for the temporary export and reexport of various items subject to the Export Administration Regulations (EAR), as long as the items are returned no later than one year after export, reexport, or transfer if not consumed or destroyed during the period of authorized use. Other than a four-year period for certain personal protective equipment, the one-year limit extends to all items shipped under license exception TMP. However, the one-year period does not align with the time constraints of Mexico's IMMEX program, which allows imports of items for manufacturing operations on a time limit that may exceed 18 months. This rule amends TMP to complement the timeline of the IMMEX program. Under this amendment, items temporarily exported or reexported under license exception TMP and imported under the provisions of the IMMEX program would be authorized to remain in Mexico for up to four years from the date of export or reexport. DATES: Effective: January 3, 2017. FOR FURTHER INFORMATION CONTACT: Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, by telephone (202) 482-2440 or email: [email protected]. SUPPLEMENTARY INFORMATION: Overview Mexico's Decree for the Promotion of Manufacturing, Maquiladora and Export Services, known as IMMEX, is a platform used by U.S. and foreign manufacturers to lower production costs by temporarily importing production materials into Mexico. Created in 2006, IMMEX is the product of the merger of [[Page 86572]] two previous Mexican economic policies: The Maquiladora program, which was designed to attract foreign investment by exempting temporary imports from taxes, and the Temporary Import Program to Promote Exports (PITEX), which incentivized Mexican companies to grow and compete in foreign markets by providing temporary import benefits. Under IMMEX, companies located in Mexico are not subject to quotas and do not have to pay taxes on items temporarily imported and manufactured, transformed, or repaired before reexport. Under IMMEX, the length of time that imports may remain in Mexico is commodity dependent, with some items allowed to remain in-country for 18 months or more. These time allotments are greater than the time limits for License Exception Temporary Imports, Exports, Reexports, and Transfers (in-country) (TMP) allowed under Sec. 740.9(a)(14) of the EAR. With few exceptions, items exported under TMP, if not consumed or destroyed during the authorized use abroad, must be returned to the United States one year after the date of export. The discrepancy between the time periods of IMMEX and TMP reduces the efficacy of both policies, thereby hindering the shipment of items subject to the EAR to and from Mexico. U.S. companies that produce items subject to the EAR and ship those items to Mexico under IMMEX have notified the Bureau of Industry and Security of this discrepancy and have requested that BIS amend the EAR to increase compatibility with IMMEX. Considering the strength of Mexico's export control regime, as exemplified by its accession as a member to the Wassenaar Arrangement, the Australia Group, and the Nuclear Suppliers Group, BIS published the proposed rule 81 FR 57505 on August 23, 2016 (known hereafter as the August 23 rule) proposing to amend Sec. 740.9(a) to account for IMMEX's time limit. For the purpose of simplicity, BIS did not propose to match the various time periods instituted by IMMEX. Instead, the rule proposed to revise Sec. 740.9(a)(8) to allow temporary exports and reexports to remain in Mexico for up to four years, which accommodates the maximum available time that temporarily imported items may remain in Mexico under IMMEX and is in parallel with the validity period of BIS's licenses. Additionally, the August 23 rule proposed to revise introductory paragraph Sec. 740.9(a)(14) to include a reference to Sec. 740.9(a)(8) as an exception to the one-year time limit of TMP. BIS received only one comment regarding the rule, in which the user expressed support for the potential change in the regulations. Because BIS received only one comment, which was positive, regarding the August 23 rule, this final rule implements the proposed rule without change. Export Administration Act Although the Export Administration Act of 1979, as amended, 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 52585 (August 4, 2016), has continued the EAR 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. 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 the 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 Office of Management and Budget (OMB) Control Number. This rule does not contain any collections of information. 3. This rule does not contain policies with Federalism implications as that term is defined in Executive Order 13132. 4. The Regulatory Flexibility Act (RFA), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et seq., generally requires an agency to prepare a regulatory flexibility analysis of any rule subject to the notice and comment rulemaking requirements under the Administrative Procedure Act (5 U.S.C. 553) or any other statute. Under section 605(b) of the RFA, however, if the head of an agency certifies that a rule will not have a significant economic impact on a substantial number of small entities, the statute does not require the agency to prepare a regulatory flexibility analysis. Pursuant to section 605(b), the Chief Counsel for Regulation, Department of Commerce, certified to the Chief Counsel for Advocacy, Small Business Administration at the proposed rule stage that this rule would not have a significant economic impact on a substantial number of small entities. Number of Small Entities The Bureau of Industry and Security (BIS) does not collect data on the size of entities that apply for and are issued export licenses. Although BIS is unable to estimate the exact number of small entities that would be affected by this rule, it acknowledges that this rule would affect some unknown number. Economic Impact BIS believes that this final rule will not have a significant economic impact because exporters are already using other provisions of the EAR to participate in IMMEX. Currently, exporters participating in IMMEX are using TMP for exports of a one-year duration. If the item is to remain in Mexico longer than one year, exporters are required to either use another license exception or apply for a license that will address a specific time limit. This final rule merely extends the eligibility period for TMP to four years to complement the lengthy IMMEX time limit which could be 18 months or more, depending on circumstances. Extending the time limit of TMP to four years provides exporters flexibility in complying with the EAR and allows them to take fuller advantage of the privileges granted by IMMEX. While such a provision should reduce the paperwork burden to exporters, BIS does not believe increasing the time limit will lead to a significant increase in exports to Mexico. Rather, this final rule is consistent with the principle of the EAR in easing the unnecessary regulatory burden to exporters. List of Subjects in 15 CFR Part 740 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. Accordingly, 15 CFR part 740 of the EAR (15 CFR parts 730-774) is amended as follows: [[Page 86573]] PART 740--[AMENDED] 0 1. The authority citation for part 740 continues to read as follows: 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). 0 2. Section 740.9 is amended by revising paragraph (a)(8) and the introductory text of paragraph (a)(14) to read as follows: Sec. 740.9 Temporary imports, exports, reexports, and transfers (in- country) (TMP). * * * * * (a) * * * (8) Assembly in Mexico. Commodities may be exported to Mexico under Customs entries that require return to the United States after processing, assembly, or incorporation into end products by companies, factories, or facilities participating in Mexico's in-bond industrialization program (IMMEX) under this paragraph (a)(8), provided that all resulting end-products (or the commodities themselves) are returned to the United States as soon as practicable but no later than four years after the date of export or reexport. * * * * * (14) Return or disposal of items. With the exception of items described in paragraphs (a)(8) and (11) of this section, all items exported, reexported, or transferred (in-country) under this section must, if not consumed or destroyed in the normal course of authorized temporary use abroad, be returned to the United States or other country from which the items were so transferred as soon as practicable but no later than one year after the date of export, reexport, or transfer (in-country). Items not returned shall be disposed of or retained in one of the following ways: * * * * * Kevin J. Wolf, Assistant Secretary for Export Administration. [FR Doc. 2016-28893 Filed 11-30-16; 8:45 am] BILLING CODE 3510-33-P
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FAA’s aeronautical database from ‘‘lat. environmental impacts. In accordance DEPARTMENT OF COMMERCE
31°48′24″ N., long. 106°22′40″ W.’’ to with FAA Order 1050.1F, paragraph 5–
‘‘lat. 31°48′26″ N., long. 106°22′35″ W.’’ 2 regarding Extraordinary Bureau of Industry and Security
Class C airspace areas are published Circumstances, this action has been
in paragraph 4000 of FAA Order reviewed for factors and circumstances 15 CFR Part 740
7400.11A, dated August 3, 2016, and in which a normally categorically [160519443–6999–02]
effective September 15, 2016, which is excluded action may have a significant
incorporated by reference in 14 CFR environmental impact requiring further RIN 0694–AG97
71.1. The Class C airspace area analysis, and it is determined that no
modification in this document will be extraordinary circumstances exist that Temporary Exports to Mexico Under
published subsequently in the Order. warrant preparation of an License Exception TMP
Regulatory Notices and Analyses environmental assessment. AGENCY: Bureau of Industry and
List of Subjects in 14 CFR Part 71 Security, Commerce.
The FAA has determined that this
regulation only involves an established ACTION: Final rule.
body of technical regulations for which Airspace, Incorporation by reference,
Navigation (air). SUMMARY: This final rule aligns the time
frequent and routine amendments are limit of License Exception Temporary
necessary to keep them operationally Adoption of the Amendment Imports, Exports, Reexports, and
current. It, therefore: (1) Is not a Transfers (in-country) (TMP), which
‘‘significant regulatory action’’ under In consideration of the foregoing, the authorizes, among other things, certain
Executive Order 12866; (2) is not a Federal Aviation Administration temporary exports to Mexico, with the
‘‘significant rule’’ under Department of amends 14 CFR part 71 as follows: time limit of Mexico’s Decree for the
Transportation (DOT) Regulatory Promotion of Manufacturing,
Policies and Procedures (44 FR 11034; PART 71—DESIGNATION OF CLASS A,
Maquiladora and Export Services
February 26, 1979); and (3) does not B, C, D, AND E AIRSPACE AREAS; AIR
(IMMEX) program. Currently, TMP
warrant preparation of a regulatory TRAFFIC SERVICE ROUTES; AND
allows for the temporary export and
evaluation as the anticipated impact is REPORTING POINTS
reexport of various items subject to the
so minimal. Since this is a routine Export Administration Regulations
matter that will only affect air traffic ■ 1. The authority citation for part 71 (EAR), as long as the items are returned
procedures and air navigation, it is continues to read as follows: no later than one year after export,
certified that this rule, when
Authority: 49 U.S.C. 106(f), 106(g); 40103, reexport, or transfer if not consumed or
promulgated, will not have a significant
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, destroyed during the period of
economic impact on a substantial 1959–1963 Comp., p. 389. authorized use. Other than a four-year
number of small entities under the
period for certain personal protective
criteria of the Regulatory Flexibility Act. § 71.1 [Amended] equipment, the one-year limit extends to
Environmental Review ■ 2. The incorporation by reference in all items shipped under license
The FAA has determined that this 14 CFR 71.1 of the FAA Order exception TMP. However, the one-year
action of modifying the El Paso 7400.11A, Airspace Designations and period does not align with the time
International Airport, El Paso, TX, Class Reporting Points, dated August 3, 2016, constraints of Mexico’s IMMEX
C airspace area by removing a cutout and effective September 15, 2016, is program, which allows imports of items
from the Class C airspace area that amended as follows: for manufacturing operations on a time
excludes the airspace within a 2-mile limit that may exceed 18 months. This
Paragraph 4000 Subpart C—Class C rule amends TMP to complement the
radius of West Texas Airport (now Airspace.
closed) and the airspace beyond an 8- timeline of the IMMEX program. Under
mile arc from the El Paso International * * * * * this amendment, items temporarily
Airport beginning at the 115° bearing exported or reexported under license
ASW TX C El Paso International Airport,
from the airport clockwise to the Rio TX [Amended] exception TMP and imported under the
Grande River, removing the West Texas provisions of the IMMEX program
El Paso International Airport, TX would be authorized to remain in
Airport and geographic coordinate (Lat. 31°48′26″ N., long. 106°22′35″ W.)
references from the Class C airspace Mexico for up to four years from the
That airspace extending upward from the date of export or reexport.
description, and amending the El Paso
surface to and including 8,000 feet MSL
International Airport geographic DATES: Effective: January 3, 2017.
within a 5-mile radius of the El Paso
coordinates to reflect the current airport International Airport, excluding that airspace FOR FURTHER INFORMATION CONTACT:
reference point information contained west of long. 106°27′02″ W., and that airspace Regulatory Policy Division, Office of
in the FAA’s aeronautical database within Mexico; and that airspace extending Exporter Services, Bureau of Industry
qualifies for categorical exclusion under upward from 5,200 feet MSL to and and Security, by telephone (202) 482–
the National Environmental Policy Act including 8,000 feet MSL within a 10-mile 2440 or email: RPD2@bis.doc.gov.
and its implementing regulations at 40 radius of the El Paso International Airport, SUPPLEMENTARY INFORMATION:
CFR part 1500, and in accordance with excluding that airspace west of long.
FAA Order 1050.1F. Environmental Overview
106°27′02″ W., and that airspace within
Impacts: Policies and Procedures, Mexico. Mexico’s Decree for the Promotion of
jstallworth on DSK7TPTVN1PROD with RULES
Paragraph 5–6.5a, which categorically Manufacturing, Maquiladora and Export
Issued in Washington, DC, on November
excludes from further environmental 22, 2016.
Services, known as IMMEX, is a
review [R]ulemaking actions that platform used by U.S. and foreign
Leslie M. Swann,
designate or modify classes of airspace manufacturers to lower production costs
areas, airways, routes, and reporting Acting Manager, Airspace Policy Group. by temporarily importing production
points. This action is not expected to [FR Doc. 2016–28726 Filed 11–30–16; 8:45 am] materials into Mexico. Created in 2006,
cause any potentially significant BILLING CODE 4910–13–P IMMEX is the product of the merger of
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PART 740—[AMENDED] DEPARTMENT OF ENERGY process privilege; (3) codify the
Department of Justice’s foreseeability of
■ 1. The authority citation for part 740 Federal Energy Regulatory harm standard when rendering FOIA
continues to read as follows: Commission determinations; 3 (4) take reasonable
steps to segregate exempt information
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 18 CFR Parts 375 and 388 from nonexempt information; (5) limit
1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. fees in unusual circumstances when the
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. [Docket No. RM17–5–000; Order No.832]
agency response is delayed; and (6)
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Regulations Implementing the FOIA provide additional notice requirements
Comp., p. 783; Notice of August 4, 2016, 81
Improvement Act of 2016 and to FOIA requesters in agency
FR 52587 (August 8, 2016).
Clarifying the FOIA Regulations determination letters.
■ 2. Section 740.9 is amended by 2. Section 3 of the Act requires
AGENCY: Federal Energy Regulatory agencies to revise their regulations to
revising paragraph (a)(8) and the Commission, Department of Energy.
introductory text of paragraph (a)(14) to account for the new statutory mandates.
ACTION: Final rule. The Act provides that agencies must
read as follows:
revise their rules within 180 days to
§ 740.9 Temporary imports, exports,
SUMMARY: On June 30, 2016, President incorporate the statutory changes.
reexports, and transfers (in-country) (TMP). Obama signed the Freedom of Accordingly, the Commission is revising
Information Act Improvement Act of its regulations to implement the FOIA
* * * * * 2016. The Act requires agencies to Improvement Act. Consistent with the
(a) * * * revise their regulations within 180 days FOIA administrative appeal provisions
(8) Assembly in Mexico. Commodities to account for the new statutory in section 388.110, the Commission also
may be exported to Mexico under mandates. After undertaking a review of is clarifying under section 375.309 that
Customs entries that require return to Commission regulations in accordance the General Counsel or a designee may
the United States after processing, with Section 3 of the Act, the issue final determinations on
assembly, or incorporation into end Commission is revising its FOIA administrative FOIA appeals.
regulations to incorporate the statutory
products by companies, factories, or II. Discussion
mandates. Additionally, this rule
facilities participating in Mexico’s in-
updates the delegation regulations with 3. After undertaking a review of
bond industrialization program respect to determinations made by the Commission regulations in accordance
(IMMEX) under this paragraph (a)(8), General Counsel in response to FOIA with Section 3 of the Act, the
provided that all resulting end-products administrative appeals. Commission is revising its FOIA
(or the commodities themselves) are regulations in 18 CFR 388.106–388.10,
DATES: This rule will become effective
returned to the United States as soon as as follows.
January 3, 2017.
practicable but no later than four years
FOR FURTHER INFORMATION CONTACT: A. Revisions to Section 375.309
after the date of export or reexport.
Mark Hershfield, Office of the General
* * * * * 4. The FOIA administrative appeal
Counsel, 888 First Street NE.,
provisions in section 388.110 provide
(14) Return or disposal of items. With Washington, DC 20426, (202) 502–8597,
that a FOIA administrative appeal must
the exception of items described in mark.hershfield@ferc.gov.
be directed to the General Counsel for
paragraphs (a)(8) and (11) of this Christopher MacFarlane, Office of the
determination, and that the General
section, all items exported, reexported, General Counsel, 888 First Street NE.,
Counsel or the General Counsel’s
or transferred (in-country) under this Washington, DC 20426, (202) 502–6761,
designee will make a determination on
section must, if not consumed or christopher.macfarlane@ferc.gov.
that appeal within the statutory
destroyed in the normal course of SUPPLEMENTARY INFORMATION: timeframe.4 Consistent with the
authorized temporary use abroad, be ORDER NO. 832 Commission’s FOIA administrative
returned to the United States or other appeal provisions in section 388.110,
country from which the items were so FINAL RULE the Commission is clarifying, in section
transferred as soon as practicable but no I. Introduction 375.309, that the General Counsel or a
later than one year after the date of designee will provide determinations in
1. On June 30, 2016, President Obama
export, reexport, or transfer (in-country). signed the Freedom of Information Act response to FOIA administrative
Items not returned shall be disposed of (FOIA) Improvement Act of 2016 (FOIA appeals.
or retained in one of the following ways: Improvement Act or the Act).1 The Act B. Revisions to Section 388.106
* * * * * directs agencies to: (1) Make 5. The FOIA Improvement Act
information that has been requested and requires agencies to ‘‘make available for
Kevin J. Wolf,
disclosed three times publically public inspection in an electronic
Assistant Secretary for Export accessible in an electronic format; 2 (2)
Administration. format’’ records that have been released
institute a sunset period of 25 years on and ‘‘that have been requested 3 or more
[FR Doc. 2016–28893 Filed 11–30–16; 8:45 am] records protected under the deliberative times.’’ Section 388.106 concerns
BILLING CODE 3510–33–P
1 FOIA Improvement Act of 2016, Public Law
Commission records available in the
public reference room at the
jstallworth on DSK7TPTVN1PROD with RULES
114–185, 130 Stat. 538 (June 2016). The Act also
requires several actions that do not necessitate a
revising of the regulations such as FOIA officers 3 See 5 U.S.C. 552(b)(5)(2012) (incorporating
offering additional FOIA training. various privileges including the deliberative
2 See Proactive Disclosure of Non-Exempt Agency process privilege covering ‘‘inter-agency or intra-
Information: Making Information Available Without agency memorandums or letters which would not
the Need to File a FOIA Request, OIP Guidance be available by law to a party other than an agency
(Oct. 5, 2015), https://www.justice.gov/oip/oip- in litigation with the agency.’’)
guidance-5. 4 See 5 U.S.C. 552(a)(6)(A)(ii) (2012).
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Document Created: 2018-02-14 09:00:54
Document Modified: 2018-02-14 09:00:54
| 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 | Effective: January 3, 2017. | |
| Contact | Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, by telephone (202) 482-2440 or email: [email protected] | |
| FR Citation | 81 FR 86571 | |
| RIN Number | 0694-AG97 | |
| CFR Associated | Administrative Practice and Procedure; Exports and Reporting and Recordkeeping Requirements |
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