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)

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 Specifically, the SIRL is outdated and seldom used by exporters, who now have more efficient options for exports and reexports to Iraq and transfers (in-country) in Iraq.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, 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.

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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Specifically, the SIRL is outdated and seldom used by exporters, who 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
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                              * * * * * * *
0694-0129.....................  Export and         Sec.  Sec.   732.3,
                                 Reexport           738, 744.18,
                                 Controls For       746.3(b)(1), 750,
                                 Iraq.              758, 762, 772, 774.
 
                              * * * * * * *
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[[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