81_FR_87657 81 FR 87424 - Amendment to the Export Administration Regulations: Removal of Special Iraq Reconstruction License

81 FR 87424 - Amendment to the Export Administration Regulations: Removal of Special Iraq Reconstruction License

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 233 (December 5, 2016)

Page Range87424-87426
FR Document2016-29056

In this final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) by removing the Special Iraq Reconstruction License (SIRL) from the EAR. This action furthers the objectives of the Retrospective Regulatory Review Initiative that directs BIS and other federal agencies to streamline regulations and reduce unnecessary regulatory burdens on the public. Specifically, the SIRL is outdated and seldom used by exporters, who now have more efficient options for exports and reexports to Iraq and transfers (in-country) in Iraq. This rule also makes conforming changes.

Federal Register, Volume 81 Issue 233 (Monday, December 5, 2016)
[Federal Register Volume 81, Number 233 (Monday, December 5, 2016)]
[Rules and Regulations]
[Pages 87424-87426]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29056]


=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 747, 748 and 762

[Docket No. 160303182-6999-02]
RIN 0694-AG89


Amendment to the Export Administration Regulations: Removal of 
Special Iraq Reconstruction License

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) by removing the 
Special Iraq Reconstruction License (SIRL) from the EAR. This action 
furthers the objectives of the Retrospective Regulatory Review 
Initiative that directs BIS and other federal agencies to streamline 
regulations and reduce unnecessary regulatory burdens on the public. 
Specifically, the SIRL is outdated and seldom used by exporters, who 
now have more efficient options for exports and reexports to Iraq and 
transfers (in-country) in Iraq. This rule also makes conforming 
changes.

DATES: This rule is effective January 4, 2017.

FOR FURTHER INFORMATION CONTACT: Thomas Andrukonis, Director, Export 
Management and Compliance Division, Office of Exporter Services, Bureau 
of Industry and Security, by telephone at (202) 482-6396 or by email at 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) issues this final rule to 
remove the Special Iraq Reconstruction License (SIRL) provisions from 
the Export Administration Regulations (EAR), consistent with the 
Retrospective Regulatory Review Initiative. In the preamble to the 
proposed rule published in the Federal Register on June 7, 2016 (81 FR 
36481) (hereinafter ``the June 7 proposed rule'' or ``the June 7 
rule''), BIS reviewed the origins of the SIRL, established in 2004 (69 
FR 46070, July 30, 2004) to supplement options to facilitate exports 
and reexports to Iraq and transfers within Iraq of items in furtherance 
of civil reconstruction and other projects in Iraq funded by specified 
entities, including the United States government. BIS also reviewed the 
record of related transactions since the SIRL was established.
    The record indicates that exporters supplying items used in support 
of the civil reconstruction efforts in Iraq have not relied on the SIRL 
to advance those efforts, apparently because of its complexity and 
narrowness. Further, since 2004, BIS processed only three applications 
for the SIRL and approved only one, as compared to over 400 approved 
individual license applications for the export of items to Iraq between 
2012 and 2015. Finally, with the implementation of updates to the EAR, 
the relative advantages of the SIRL have been offset by changes to 
individual licenses and other types of authorizations offered by BIS 
that provide less complex alternatives to the SIRL.
    Thus, consistent with the President's Retrospective Regulatory 
Review Initiative to streamline regulations and reduce unnecessary 
regulatory burdens on the public (see ``Improving Regulatory Review'' 
(Executive Order 13563 of January 18, 2011)), BIS

[[Page 87425]]

concluded that the SIRL proved not to be useful.
    BIS received no comments in response to the June 7 rule. BIS, 
therefore, publishes in final form the amendments to the EAR to remove 
the SIRL as described initially in the June 7 rule.

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, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined to be not significant for purposes of 
Executive Order 12866.
    2. This rule amends collections previously approved by the Office 
of Management and Budget (OMB) under Control Numbers 0694-0088, 
``Simplified Network Application Processing + System (SNAP+) and the 
Multi-Purpose Application,'' which carries a burden hour estimate of 
43.8 minutes to prepare and submit form BIS-748; and 0694-0137, 
``License Exemptions and Exclusions.''
    The total burden hours associated with the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (PRA) and the aforementioned OMB 
Control Numbers are not expected to decrease significantly as a result 
of this removal of part 747 of the EAR because of the infrequent use of 
part 747 of the EAR by exporters.
    Notwithstanding any other provision of the 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 PRA, unless that collection of information displays 
a currently valid OMB Control Number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The Chief Counsel for Regulation at the Department of Commerce 
certified to the Chief Counsel for Advocacy at the Small Business 
Administration that this rule, if adopted, would not have a significant 
economic impact on a substantial number of small entities. The factual 
basis was published in the proposed rule and is not repeated here. BIS 
received no comments, which means there were no comments that addressed 
the economic impact of this rule on small entities. Therefore, a final 
regulatory flexibility analysis is not required and one was not 
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 747

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

15 CFR Part 748

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

15 CFR Part 762

    Administrative practice and procedure, Business and industry, 
Confidential business information, Exports, Reporting and recordkeeping 
requirements.

    Accordingly, under the authority of 50 U.S.C. 1701 et seq., parts 
730, 747, 748 and 762 of the Export Administration Regulations (15 CFR 
parts 730-774) are amended as follows:

PART 730--[AMENDED]

0
1. The authority citation for 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 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).


0
2. Supplement No. 1 to part 730 is amended by revising the entry for 
Collection number ``0694-0129''. The revision reads as follows:

Supplement No. 1 to Part 730--Information Collection Requirements Under 
the Paperwork Reduction Act: OMB Control Numbers

* * * * *

------------------------------------------------------------------------
        Collection No.                Title         Reference in the EAR
------------------------------------------------------------------------
 
                              * * * * * * *
0694-0129.....................  Export and         Sec.  Sec.   732.3,
                                 Reexport           738, 744.18,
                                 Controls For       746.3(b)(1), 750,
                                 Iraq.              758, 762, 772, 774.
 
                              * * * * * * *
------------------------------------------------------------------------


[[Page 87426]]

PART 747--[REMOVED AND RESERVED]

0
3. Remove and reserve part 747.

PART 748--[AMENDED]

0
4. The authority citation for part 748 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 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).


Sec.  748.1   [Amended]

0
5. Section 748.1 is amended by removing the parenthetical phrase 
``(other than Special Iraq Reconstruction License applications)'' from 
the first sentence of paragraph (d).


Sec.  748.7   [Amended]

0
6. Section 748.7 is amended by removing the parenthetical phrase 
``(other than Special Iraq Reconstruction Licenses)'' from paragraphs 
(a) and (d).

PART 762--[AMENDED]

0
7. The authority citation for part 762 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4, 
2016, 81 FR 52587 (August 8, 2016).


Sec.  762.2  [Amended]

0
8. Section 762.2 is amended by removing and reserving paragraph 
(b)(17).

    Dated: November 23, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-29056 Filed 12-2-16; 8:45 am]
 BILLING CODE 3510-33-P



                                              87424            Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Rules and Regulations

                                                 (3) For Model CL–600–2B16 (CL–604                    (l) Material Incorporated by Reference                regulations and reduce unnecessary
                                              Variant) airplanes, having S/Ns 5701 through               (1) The Director of the Federal Register           regulatory burdens on the public.
                                              5913 inclusive, 5917, 5918, and 5923 through            approved the incorporation by reference               Specifically, the SIRL is outdated and
                                              5970 inclusive: Do a detailed inspection for            (IBR) of the service information listed in this       seldom used by exporters, who now
                                              chafing conditions of the negative-G fuel feed          paragraph under 5 U.S.C. 552(a) and 1 CFR
                                              drain line of the APU, and do all applicable
                                                                                                                                                            have more efficient options for exports
                                                                                                      part 51.                                              and reexports to Iraq and transfers (in-
                                              corrective actions, in accordance with the                 (2) You must use this service information
                                              Accomplishment Instructions in Part A and,                                                                    country) in Iraq. This rule also makes
                                                                                                      as applicable to do the actions required by
                                              if applicable, Part B of Bombardier Service             this AD, unless this AD specifies otherwise.          conforming changes.
                                              Bulletin 605–28–009, dated May 19, 2015.                   (i) Bombardier Service Bulletin 601–0640,          DATES: This rule is effective January 4,
                                              (h) Modification for Certain Other Airplanes            dated May 19, 2015.                                   2017.
                                                                                                         (ii) Bombardier Service Bulletin 604–28–           FOR FURTHER INFORMATION CONTACT:
                                                For Model CL–600–2B16 (604 Variant)                   021, dated May 19, 2015.
                                              airplanes having S/Ns 5914 through 5916                                                                       Thomas Andrukonis, Director, Export
                                                                                                         (iii) Bombardier Service Bulletin 605–28–
                                              inclusive and 5919 through 5922 inclusive:                                                                    Management and Compliance Division,
                                                                                                      009, dated May 19, 2015.
                                              Within 24 months after the effective date of               (3) For service information identified in          Office of Exporter Services, Bureau of
                                              this AD, replace the APU negative-G fuel feed           this AD, contact Bombardier, Inc., 400 Côte-         Industry and Security, by telephone at
                                              tube assembly and the drain line, in                    Vertu Road West, Dorval, Québec H4S 1Y9,             (202) 482–6396 or by email at
                                              accordance with Part C of the                           Canada; Widebody Customer Response                    Thomas.Andrukonis@bis.doc.gov.
                                              Accomplishment Instructions of Bombardier               Center North America toll-free telephone: 1–          SUPPLEMENTARY INFORMATION:
                                              Service Bulletin 605–28–009, dated May 19,              866–538–1247 or direct-dial telephone: 1–
                                              2015.                                                   514–855–2999; fax: 514–855–7401; email:               Background
                                                Note 1 to paragraph (h) of this AD: An                ac.yul@aero.bombardier.com; Internet:                    The Bureau of Industry and Security
                                              inspection is not required.                             http://www.bombardier.com.
                                                                                                                                                            (BIS) issues this final rule to remove the
                                                                                                         (4) You may view this service information
                                              (i) Service Information Exception                       at the FAA, Transport Airplane Directorate,           Special Iraq Reconstruction License
                                                Where any service information identified              1601 Lind Avenue SW., Renton, WA. For                 (SIRL) provisions from the Export
                                              in paragraphs (g)(1), (g)(2), and (g)(3) of this        information on the availability of this               Administration Regulations (EAR),
                                              AD specifies to contact the manufacturer for            material at the FAA, call 425–227–1221.               consistent with the Retrospective
                                              corrective action, before further flight, repair           (5) You may view this service information          Regulatory Review Initiative. In the
                                              using a method approved by the Manager,                 that is incorporated by reference at the              preamble to the proposed rule
                                              New York Aircraft Certification Office (ACO),           National Archives and Records                         published in the Federal Register on
                                              ANE–170, FAA; or Transport Canada Civil                 Administration (NARA). For information on             June 7, 2016 (81 FR 36481) (hereinafter
                                              Aviation (TCCA); or Bombardier, Inc.’s TCCA             the availability of this material at NARA, call
                                                                                                                                                            ‘‘the June 7 proposed rule’’ or ‘‘the June
                                              Design Approval Organization (DAO).                     202–741–6030, or go to: http://
                                                                                                      www.archives.gov/federal-register/cfr/ibr-            7 rule’’), BIS reviewed the origins of the
                                              (j) Other FAA AD Provisions                             locations.html.                                       SIRL, established in 2004 (69 FR 46070,
                                                 The following provisions also apply to this                                                                July 30, 2004) to supplement options to
                                                                                                        Issued in Renton, Washington, on
                                              AD:                                                                                                           facilitate exports and reexports to Iraq
                                                                                                      September 19, 2016.
                                                 (1) Alternative Methods of Compliance                                                                      and transfers within Iraq of items in
                                                                                                      Dionne Palermo,
                                              (AMOCs): The Manager, New York ACO,                                                                           furtherance of civil reconstruction and
                                              ANE–170, FAA, has the authority to approve              Acting Manager, Transport Airplane                    other projects in Iraq funded by
                                              AMOCs for this AD, if requested using the               Directorate, Aircraft Certification Service.
                                                                                                                                                            specified entities, including the United
                                              procedures found in 14 CFR 39.19. In                    [FR Doc. 2016–28340 Filed 12–2–16; 8:45 am]           States government. BIS also reviewed
                                              accordance with 14 CFR 39.19, send your                 BILLING CODE 4910–13–P                                the record of related transactions since
                                              request to your principal inspector or local                                                                  the SIRL was established.
                                              Flight Standards District Office, as
                                                                                                                                                               The record indicates that exporters
                                              appropriate. If sending information directly
                                              to the ACO, send it to ATTN: Program
                                                                                                      DEPARTMENT OF COMMERCE                                supplying items used in support of the
                                              Manager, Continuing Operational Safety,                                                                       civil reconstruction efforts in Iraq have
                                                                                                      Bureau of Industry and Security                       not relied on the SIRL to advance those
                                              FAA, New York ACO, 1600 Stewart Avenue,
                                              Suite 410, Westbury, NY 11590; telephone                                                                      efforts, apparently because of its
                                              516–228–7300; fax 516–794–5531. Before                  15 CFR Parts 730, 747, 748 and 762                    complexity and narrowness. Further,
                                              using any approved AMOC, notify your                    [Docket No. 160303182–6999–02]                        since 2004, BIS processed only three
                                              appropriate principal inspector, or lacking a                                                                 applications for the SIRL and approved
                                              principal inspector, the manager of the local           RIN 0694–AG89                                         only one, as compared to over 400
                                              flight standards district office/certificate                                                                  approved individual license
                                              holding district office.                                Amendment to the Export
                                                                                                      Administration Regulations: Removal                   applications for the export of items to
                                                 (2) Contacting the Manufacturer: For any
                                              requirement in this AD to obtain corrective             of Special Iraq Reconstruction License                Iraq between 2012 and 2015. Finally,
                                              actions from a manufacturer, the action must                                                                  with the implementation of updates to
                                              be accomplished using a method approved                 AGENCY:  Bureau of Industry and                       the EAR, the relative advantages of the
                                              by the Manager, New York ACO, ANE–170,                  Security, Commerce.                                   SIRL have been offset by changes to
                                              FAA; or TCCA; or Bombardier, Inc.’s TCCA                ACTION: Final rule.                                   individual licenses and other types of
                                              DAO. If approved by the DAO, the approval                                                                     authorizations offered by BIS that
                                              must include the DAO-authorized signature.              SUMMARY:    In this final rule, the Bureau            provide less complex alternatives to the
                                              (k) Related Information                                 of Industry and Security (BIS) amends                 SIRL.
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                                                                                                      the Export Administration Regulations                    Thus, consistent with the President’s
                                                Refer to Mandatory Continuing
                                              Airworthiness Information (MCAI) Canadian
                                                                                                      (EAR) by removing the Special Iraq                    Retrospective Regulatory Review
                                              AD CF–2015–26, dated August 31, 2015, for               Reconstruction License (SIRL) from the                Initiative to streamline regulations and
                                              related information. This MCAI may be                   EAR. This action furthers the objectives              reduce unnecessary regulatory burdens
                                              found in the AD docket on the Internet at               of the Retrospective Regulatory Review                on the public (see ‘‘Improving
                                              http://www.regulations.gov by searching for             Initiative that directs BIS and other                 Regulatory Review’’ (Executive Order
                                              and locating Docket No. FAA–2016–7418.                  federal agencies to streamline                        13563 of January 18, 2011)), BIS


                                         VerDate Sep<11>2014   15:57 Dec 02, 2016   Jkt 241001   PO 00000   Frm 00016   Fmt 4700   Sfmt 4700   E:\FR\FM\05DER1.SGM   05DER1


                                                                  Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Rules and Regulations                                                     87425

                                              concluded that the SIRL proved not to                         1995 (44 U.S.C. 3501 et seq.) (PRA) and                 Exports, Reporting and recordkeeping
                                              be useful.                                                    the aforementioned OMB Control                          requirements.
                                                BIS received no comments in                                 Numbers are not expected to decrease
                                              response to the June 7 rule. BIS,                                                                                       Accordingly, under the authority of
                                                                                                            significantly as a result of this removal
                                              therefore, publishes in final form the                                                                                50 U.S.C. 1701 et seq., parts 730, 747,
                                                                                                            of part 747 of the EAR because of the
                                              amendments to the EAR to remove the                                                                                   748 and 762 of the Export
                                                                                                            infrequent use of part 747 of the EAR by
                                              SIRL as described initially in the June                                                                               Administration Regulations (15 CFR
                                                                                                            exporters.
                                              7 rule.                                                                                                               parts 730–774) are amended as follows:
                                                                                                              Notwithstanding any other provision
                                              Export Administration Act                                     of the law, no person is required to                    PART 730—[AMENDED]
                                                                                                            respond to, nor shall any person be
                                                Although the Export Administration                          subject to a penalty for failure to comply
                                              Act expired on August 20, 2001, the                                                                                   ■  1. The authority citation for part 730
                                                                                                            with, a collection of information subject
                                              President, through Executive Order                                                                                    is revised to read as follows:
                                                                                                            to the requirements of the PRA, unless
                                              13222 of August 17, 2001, 3 CFR, 2001                         that collection of information displays a                 Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                              Comp., p. 783 (2002), as amended by                           currently valid OMB Control Number.                     1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                              Executive Order 13637 of March 8,                               3. This rule does not contain policies                7430(e); 22 U.S.C. 287c; 22 U.S.C. 2151 note;
                                              2013, 78 FR 16129 (March 13, 2013) and                        with Federalism implications as that                    22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42
                                              as extended by the Notice of August 4,                        term is defined under Executive Order                   U.S.C. 2139a; 15 U.S.C. 1824a; 50 U.S.C.
                                              2016, 81 FR 52587 (August 8, 2016), has                       13132.                                                  4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
                                              continued the Export Administration                             4. The Chief Counsel for Regulation at                E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp.,
                                              Regulations in effect under the                               the Department of Commerce certified                    p. 114; E.O. 12002, 42 FR 35623, 3 CFR, 1977
                                              International Emergency Economic                              to the Chief Counsel for Advocacy at the                Comp., p. 133; E.O. 12058, 43 FR 20947, 3
                                              Powers Act. BIS continues to carry out                        Small Business Administration that this                 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR
                                              the provisions of the Export                                  rule, if adopted, would not have a                      29783, 3 CFR, 1980 Comp., p. 256; E.O.
                                              Administration Act, as appropriate and                        significant economic impact on a                        12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
                                              to the extent permitted by law, pursuant                      substantial number of small entities.                   608; E.O. 12854, 58 FR 36587, 3 CFR, 1993
                                              to Executive Order 13222 as amended                           The factual basis was published in the                  Comp., p. 179; E.O. 12918, 59 FR 28205, 3
                                              by Executive Order 13637.                                     proposed rule and is not repeated here.                 CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR
                                              Rulemaking Requirements                                       BIS received no comments, which                         59099, 3 CFR, 1994 Comp., p. 950; E.O.
                                                                                                            means there were no comments that                       12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
                                                 1. Executive Orders 13563 and 12866                                                                                356; E.O. 12981, 60 FR 62981, 3 CFR, 1995
                                              direct agencies to assess all costs and                       addressed the economic impact of this
                                                                                                            rule on small entities. Therefore, a final              Comp., p. 419; E.O. 13020, 61 FR 54079, 3
                                              benefits of available regulatory                                                                                      CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR
                                              alternatives and, if regulation is                            regulatory flexibility analysis is not
                                                                                                                                                                    58767, 3 CFR, 1996 Comp., p. 228; E.O.
                                              necessary, to select regulatory                               required and one was not prepared.
                                                                                                                                                                    13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
                                              approaches that maximize net benefits                         List of Subjects                                        208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                              (including potential economic,                                                                                        Comp., p. 783; E.O. 13224, 66 FR 49079, 3
                                              environmental, public health and safety                       15 CFR Part 730
                                                                                                                                                                    CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR
                                              effects, distributive impacts, and                              Administrative practice and                           26751, 3 CFR, 2004 Comp., p 168; E.O.
                                              equity). Executive Order 13563                                procedure, Advisory committees,                         13637, 78 FR 16129, 3 CFR, 2014 Comp., p.
                                              emphasizes the importance of                                  Exports, Reporting and recordkeeping                    223; Notice of November 12, 2015, 80 FR
                                              quantifying both costs and benefits,                          requirements, Strategic and critical                    70667 (November 13, 2015); Notice of
                                              reducing costs, harmonizing rules, and                        materials.                                              January 20, 2016, 81 FR 3937 (January 22,
                                              promoting flexibility. This rule has been                                                                             2016); Notice of May 3, 2016, 81 FR 27293
                                              determined to be not significant for                          15 CFR Part 747
                                                                                                                                                                    (May 5, 2016); Notice of August 4, 2016, 81
                                              purposes of Executive Order 12866.                              Administrative practice and                           FR 52587 (August 8, 2016); Notice of
                                                 2. This rule amends collections                            procedure, Exports, Foreign trade,                      September 15, 2016, 81 FR 64343 (September
                                              previously approved by the Office of                          Reporting and recordkeeping                             19, 2016).
                                              Management and Budget (OMB) under                             requirements.
                                              Control Numbers 0694–0088,                                                                                            ■ 2. Supplement No. 1 to part 730 is
                                              ‘‘Simplified Network Application                              15 CFR Part 748                                         amended by revising the entry for
                                              Processing + System (SNAP+) and the                             Administrative practice and                           Collection number ‘‘0694–0129’’. The
                                              Multi-Purpose Application,’’ which                            procedure, Exports, Reporting and                       revision reads as follows:
                                              carries a burden hour estimate of 43.8                        recordkeeping requirements.                             Supplement No. 1 to Part 730—
                                              minutes to prepare and submit form
                                                                                                            15 CFR Part 762                                         Information Collection Requirements
                                              BIS–748; and 0694–0137, ‘‘License
                                                                                                                                                                    Under the Paperwork Reduction Act:
                                              Exemptions and Exclusions.’’                                    Administrative practice and
                                                                                                                                                                    OMB Control Numbers
                                                 The total burden hours associated                          procedure, Business and industry,
                                              with the Paperwork Reduction Act of                           Confidential business information,                      *       *    *       *    *

                                                         Collection No.                                            Title                                                 Reference in the EAR
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                                              0694–0129 ...............................   Export and Reexport Controls For Iraq ............         §§ 732.3, 738, 744.18, 746.3(b)(1), 750, 758, 762, 772, 774.

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                                              87426            Federal Register / Vol. 81, No. 233 / Monday, December 5, 2016 / Rules and Regulations

                                              PART 747—[REMOVED AND                                   Export Administration Regulations                     Amendment to the List of Validated
                                              RESERVED]                                               (EAR) to remove one end-user from the                 End Users (VEU) in the People’s
                                                                                                      list of validated end-users in the                    Republic of China (PRC)
                                              ■   3. Remove and reserve part 747.                     People’s Republic of China (PRC).                     Removal of the Semiconductor
                                              PART 748—[AMENDED]                                      Specifically, BIS amends Supplement                   Manufacturing International
                                                                                                      Number 7 to part 748 of the EAR to                    Corporation (SMIC) From the List of
                                              ■ 4. The authority citation for part 748                remove the Semiconductor                              VEUs in the PRC
                                              continues to read as follows:                           Manufacturing International
                                                                                                                                                              In this final rule, BIS amends
                                                 Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.         Corporation (SMIC) as a validated end-                Supplement No. 7 to part 748 of the
                                              1701 et seq.; E.O. 13026, 61 FR 58767, 3 CFR,           user in the PRC. BIS makes this change                EAR (Supplement No. 7) to remove the
                                              1996 Comp., p. 228; E.O. 13222, 66 FR 44025,            at the company’s request, and not in                  VEU SMIC from the list of VEUs in the
                                              3 CFR, 2001 Comp., p. 783; Notice of August             response to activities of concern.
                                              4, 2016, 81 FR 52587 (August 8, 2016).                                                                        PRC. Specifically, BIS removes
                                                                                                      DATES:   This rule is effective December 5,           information for SMIC from Supplement
                                              § 748.1   [Amended]                                     2016.                                                 No. 7. BIS takes this action at SMIC’s
                                              ■  5. Section 748.1 is amended by                                                                             request. BIS makes this change to
                                                                                                      FOR FURTHER INFORMATION CONTACT:                      Supplement No. 7 at the company’s
                                              removing the parenthetical phrase
                                              ‘‘(other than Special Iraq Reconstruction               Chair, End-User Review Committee,                     request and not in response to activities
                                              License applications)’’ from the first                  Office of the Assistant Secretary, Export             of concern.
                                              sentence of paragraph (d).                              Administration, Bureau of Industry and
                                                                                                                                                            Export Administration Act
                                                                                                      Security, U.S. Department of Commerce,
                                              § 748.7   [Amended]                                     Phone: 202–482–5991; Email: ERC@                         Although the Export Administration
                                              ■  6. Section 748.7 is amended by                       bis.doc.gov.                                          Act expired on August 20, 2001, the
                                              removing the parenthetical phrase                                                                             President, through Executive Order
                                              ‘‘(other than Special Iraq Reconstruction               SUPPLEMENTARY INFORMATION:                            13222 of August 17, 2001, 3 CFR, 2001
                                              Licenses)’’ from paragraphs (a) and (d).                                                                      Comp., p. 783 (2002), as amended by
                                                                                                      Background                                            Executive Order 13637 of March 8,
                                              PART 762—[AMENDED]                                      Authorization Validated End-User                      2013, 78 FR 16129 (March 13, 2013),
                                                                                                                                                            and as extended by the Notice of August
                                              ■ 7. The authority citation for part 762                   Validated end-users (VEUs) are                     4, 2016, 81 FR 52587 (August 8, 2016),
                                              continues to read as follows:                           designated entities located in eligible               has continued the EAR in effect under
                                                Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.          destinations to which eligible items may              the International Emergency Economic
                                              1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR,           be exported, reexported, or transferred               Powers Act. BIS continues to carry out
                                              2001 Comp., p. 783; Notice of August 4,                 (in-country) under a general                          the provisions of the Export
                                              2016, 81 FR 52587 (August 8, 2016).                     authorization instead of a license. The               Administration Act, as appropriate and
                                              § 762.2   [Amended]                                     names of the VEUs, as well as the dates               to the extent permitted by law, pursuant
                                                                                                      they were so designated, and their                    to Executive Order 13222 as amended
                                              ■ 8. Section 762.2 is amended by                                                                              by Executive Order 13637.
                                                                                                      respective eligible destinations
                                              removing and reserving paragraph
                                                                                                      (facilities) and items are identified in              Rulemaking Requirements
                                              (b)(17).
                                                                                                      Supplement No. 7 to part 748 of the
                                                Dated: November 23, 2016.                                                                                      1. Executive Orders 13563 and 12866
                                                                                                      EAR (15 CFR part 748). Under the terms
                                              Kevin J. Wolf,                                                                                                direct agencies to assess all costs and
                                                                                                      described in that supplement, and in                  benefits of available regulatory
                                              Assistant Secretary for Export                          conformity with section 748.15 of the
                                              Administration.                                                                                               alternatives and, if regulation is
                                                                                                      EAR, VEUs may obtain eligible items                   necessary, to select regulatory
                                              [FR Doc. 2016–29056 Filed 12–2–16; 8:45 am]             without an export license from BIS.
                                              BILLING CODE 3510–33–P
                                                                                                                                                            approaches that maximize net benefits
                                                                                                      Eligible items vary between VEUs, and                 (including potential economic,
                                                                                                      may include commodities, software, and                environmental, public health and safety
                                              DEPARTMENT OF COMMERCE                                  technology, except items controlled for               effects, distributive impacts, and
                                                                                                      missile technology or crime control                   equity). Executive Order 13563
                                              Bureau of Industry and Security                         reasons on the Commerce Control List                  emphasizes the importance of
                                                                                                      (CCL) (part 774 of the EAR).                          quantifying both costs and benefits,
                                              15 CFR Part 748                                            VEUs are reviewed and approved by                  reducing costs, harmonizing rules, and
                                              [Docket No. 161005927–6927–01]                          the U.S. Government in accordance with                promoting flexibility. This rule has been
                                                                                                      the provisions of section 748.15 and                  determined to be not significant for
                                              RIN 0694–AH16                                                                                                 purposes of Executive Order 12866.
                                                                                                      Supplement Nos. 8 and 9 to part 748 of
                                                                                                                                                               2. This rule involves collections
                                              Amendment to the Export                                 the EAR. The End-User Review
                                                                                                                                                            previously approved by the Office of
                                              Administration Regulations: Removal                     Committee (ERC), composed of
                                                                                                                                                            Management and Budget (OMB) under
                                              of Semiconductor Manufacturing                          representatives from the Departments of               Control Number 0694–0088, ‘‘Multi-
                                              International Corporation From the List                 State, Defense, Energy, Commerce, and                 Purpose Application,’’ which carries a
                                              of Validated End-Users in the People’s                  other agencies, as appropriate, is                    burden hour estimate of 43.8 minutes to
sradovich on DSK3GMQ082PROD with RULES




                                              Republic of China                                       responsible for administering the VEU                 prepare and submit form BIS–748; and
                                                                                                      program. BIS amended the EAR in a                     for recordkeeping, reporting and review
                                              AGENCY:  Bureau of Industry and
                                                                                                      final rule published on June 19, 2007                 requirements in connection with
                                              Security, Commerce.
                                                                                                      (72 FR 33646), to create Authorization                Authorization VEU, which carries an
                                              ACTION: Final rule.
                                                                                                      VEU.                                                  estimated burden of 30 minutes per
                                              SUMMARY:  In this rule, the Bureau of                                                                         submission. Total burden hours
                                              Industry and Security (BIS) amends the                                                                        associated with the Paperwork


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Document Created: 2016-12-03 00:25:46
Document Modified: 2016-12-03 00:25:46
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 January 4, 2017.
ContactThomas Andrukonis, Director, Export Management and Compliance Division, Office of Exporter Services, Bureau of Industry and Security, by telephone at (202) 482-6396 or by email at [email protected]
FR Citation81 FR 87424 
RIN Number0694-AG89
CFR Citation15 CFR 730
15 CFR 747
15 CFR 748
15 CFR 762
CFR AssociatedAdministrative Practice and Procedure; Advisory Committees; Exports; Reporting and Recordkeeping Requirements; Strategic and Critical Materials; Foreign Trade; Business and Industry and Confidential Business Information

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