81 FR 94962 - Burma: Amendment of the Export Administration Regulations Consistent With an Executive Order That Terminated U.S. Government's Sanctions

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 248 (December 27, 2016)

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) consistent with Executive Order 13742 of October 7, 2016. That Executive Order terminated the national emergency with respect to the actions and policies of the Government of Burma (Burma) and revoked several Burma-related Executive Orders in recognition of Burma's substantial advances to promote democracy, including historic elections held in November 2015 that resulted in the formation of a democratically elected, civilian-led government. Specifically, in this rule, BIS removes license requirements and other restrictions on exports, reexports or transfers (in country) of items subject to the EAR made to persons whose property and interests in property were blocked pursuant to three Burma-related Executive Orders that were revoked on October 7, 2016. Consistent with the revised U.S. policy toward Burma, this rule also moves Burma from Country Group D:1 to Country Group B, a less restrictive country group placement under the EAR.

[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Rules and Regulations]
[Pages 94962-94963]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31208]



[[Page 94962]]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 744

[Docket No. 161005929-6929-01]
RIN 0694-AH18


Burma: Amendment of the Export Administration Regulations 
Consistent With an Executive Order That Terminated U.S. Government's 
Sanctions

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) consistent with Executive 
Order 13742 of October 7, 2016. That Executive Order terminated the 
national emergency with respect to the actions and policies of the 
Government of Burma (Burma) and revoked several Burma-related Executive 
Orders in recognition of Burma's substantial advances to promote 
democracy, including historic elections held in November 2015 that 
resulted in the formation of a democratically elected, civilian-led 
government. Specifically, in this rule, BIS removes license 
requirements and other restrictions on exports, reexports or transfers 
(in country) of items subject to the EAR made to persons whose property 
and interests in property were blocked pursuant to three Burma-related 
Executive Orders that were revoked on October 7, 2016. Consistent with 
the revised U.S. policy toward Burma, this rule also moves Burma from 
Country Group D:1 to Country Group B, a less restrictive country group 
placement under the EAR.

DATES:  This rule is effective December 27, 2016.

FOR FURTHER INFORMATION CONTACT: Tracy Patts, Foreign Policy Division, 
Office of Nonproliferation and Treaty Compliance at telephone (202) 
482-4252 or email [email protected].

SUPPLEMENTARY INFORMATION: 

Background

U.S. Sanctions Against Burma

    In Executive Order 13047 of May 20, 1997, President Bill Clinton 
declared a national emergency to deal with the unusual and 
extraordinary threat to the national security and foreign policy of the 
United States posed by the actions and policies of the Government of 
Burma in response to a deepening pattern of severe repression by the 
State Law and Order Restoration Council, the then-governing regime in 
Burma, and prohibited new investment in Burma by U.S. persons.
    To take additional steps with respect to the national emergency and 
to implement the Burmese Freedom and Democracy Act of 2003 (Pub. L. 
108-61, 50 U.S.C. 1701 note) signed into law on July 28, 2003, 
President George W. Bush issued on the same day Executive Order 13310 
(E.O. 13310), which banned all imports into the United States of 
products of Burma and the export of financial services from the United 
States or by U.S. persons, wherever located, to Burma. E.O. 13310 also 
blocked the property and property interests of persons listed in its 
Annex or designated pursuant to criteria set forth in E.O. 13310. To 
address the Government of Burma's continued repression of the country's 
democratic opposition, President Bush issued two additional Executive 
Orders, Executive Order 13448 of October 18, 2007 and Executive Order 
13464 of April 30, 2008, that further expanded the scope of the 
national emergency and took additional steps with respect to it. Each 
of these two Executive Orders blocked the property and interests in 
property of persons listed in its Annex or designated pursuant to 
criteria set forth in the Executive Orders. President Barack Obama 
subsequently issued two Burma-related Executive Orders, Executive Order 
13619 of July 11, 2012 (E.O. 13619) and Executive Order 13651 of August 
6, 2013 (E.O. 13651), that further modified the scope of the national 
emergency and took additional steps with respect to it. E.O. 13619 
blocked the property and interests in property of persons listed in its 
Annex or designated pursuant to criteria set forth in the Executive 
Order. E.O. 13651 revoked the ban imposed in E.O. 13310 on the 
importation of products of Burma and imposed a ban on importing into 
the United States jadeite or rubies, and articles of jewelry containing 
jadeite or rubies, mined or extracted from Burma.
    Consistent with Executive Orders 13310, 13448, and 13464, and the 
Trade Sanctions Reform and Export Enhancement Act of 2000 (22 U.S.C. 
7201 et seq.), BIS amended the EAR by creating new Sec.  744.22 (see 72 
FR 60248, October 24, 2007; 74 FR 770, January 8, 2009), to impose a 
license requirement for exports, reexports, or transfers (in country) 
of items subject to the EAR, except agricultural commodities, medicine, 
or medical devices designated as EAR99, to persons listed in or 
designated pursuant to Executive Orders 13310, 13448, or 13464. As part 
of the initial October 2007 regulatory changes, Burma was moved from 
Computer Tier 1 to Computer Tier 3 in part 740 of the EAR (License 
Exceptions), thereby restricting Burma's access to high-performance 
computers and certain related technology and software under License 
Exception APP (Sec.  740.7). In Supplement No. 1 to part 740 (Country 
Groups), Burma was moved from Country Group B (countries raising few 
national security concerns) to Country Group D:1 (countries raising 
national security concerns). This move further limited the number of 
license exceptions available for exports or reexports to Burma. Burma 
remained in Country Group D:3 (countries raising proliferation concerns 
related to chemical and biological weapons).
    As set forth in Sec.  744.22 of the EAR, exports, reexports or 
transfers of items subject to the EAR, except agricultural commodities, 
medicine, or medical devices designated as EAR99, to any person whose 
property and interests in property were blocked pursuant to Executive 
Orders 13310, 13448 or 13464, required a license under the EAR and were 
reviewed under a general policy of denial. The requirement applied to 
such ``blocked'' persons either listed in the Annexes to one of these 
three Executive Orders or to persons designated pursuant to one of the 
Executive Orders. Persons included in an Annex or designated pursuant 
to one of these Executive Orders were identified with the reference 
[BURMA] on Treasury's Office of Foreign Assets Control (OFAC's) list of 
Specially Designated Nationals and Blocked Persons on OFAC's Web site 
at http://www.treas.gov/OFAC.

Termination of U.S. Sanctions Against Burma

    In Executive Order 13742 of October 7, 2016, President Obama 
terminated the national emergency declared in Executive Order 13047 and 
revoked that Executive Order and the five additional Burma-related 
Executive Orders, including Executive Orders 13310, 13448 and 13464. 
Consistent with the President's action, in this final rule, BIS removes 
and reserves Sec.  744.22 of the EAR.
    In recognition of Burma's substantial advances to promote democracy 
identified by President Obama in Executive Order 13742, BIS is also 
removing Burma from Country Group D:1 and placing it in Country Group 
B, a change that typically broadens the scope of license exceptions 
which may be available for exports and reexports of items under the 
EAR. Note, however, that Burma will remain in Country

[[Page 94963]]

Group D:3 (countries raising proliferation concerns related to chemical 
and biological weapons). Burma will also remain in Country Group D:5 
(U.S. Arms Embargoes), consistent with Sec.  126.1 of the International 
Traffic in Arms Regulations, 22 CFR 120-130, and State Department 
Federal Register notices. Therefore, the country is subject to the 
general license exception restrictions described in section 
740.2(a)(12) of the EAR that apply to 9x515 or ``600 series'' items 
destined to, shipped from, or manufactured in a destination listed in 
Country Group D:5, except as narrowly provided in subparagraphs 
(a)(12)(i) and (ii). Further, Burma will remain in Computer Tier 3 in 
part 740 (License Exceptions) pending additional consideration. 
Finally, as a general matter, exports and reexports to Burma, and 
transfers (in country), remain subject to EAR part 744 end user and 
end-use based controls.

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 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is subject to a penalty for failure to 
comply with, a collection of information, subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
control number. This rule affects one approved collection: The 
Simplified Network Application Processing + Redesign system (control 
number 0694-0088), which carries a burden hour estimate of 43.8 
minutes, including the time necessary to submit license applications, 
among other things, as well as miscellaneous and other recordkeeping 
activities that account for 12 minutes per submission. This rule is 
expected to decrease the number of submissions under this collection.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States under 5 U.S.C. 553(a)(1). This final rule 
implements the President's Executive Order 13742 of October 7, 2016, 
terminating the national emergency with respect to Burma that had been 
in effect since May 20, 1997, revoking certain Burma-related Executive 
Orders that expanded or otherwise modified the national emergency, and 
waiving other statutory blocking and financial sanctions on Burma. This 
rule serves the foreign policy interests of the United States by 
removing Burma sanctions under the EAR that were directly related to 
three of the revoked Executive Orders and conforming the treatment of 
Burma under the EAR with the change in U.S. foreign policy toward the 
country already in effect pursuant to Executive Order 13742. No other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this rule. Because a notice of proposed 
rulemaking and an opportunity for public comment are not required to be 
given for this rule by 5 U.S.C. 553, or by any other law, the 
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 
et seq., are not applicable. Therefore, this regulation is issued in 
final form and is made effective immediately upon publication.

List of Subjects

15 CFR Part 740

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

15 CFR Part 744

    Burma, Exports, Reporting and recordkeeping requirements, 
Terrorism.

    Accordingly, parts 740 and 744 of the Export Administration 
Regulations (15 CFR parts 730-774) are amended as follows:

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).

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

0
2. Supplement No. 1 to part 740 is amended by:
0
a. Adding ``Burma'' in Country Group B in alphabetical order; and
0
b. Removing the ``X'' from the row for Burma in the D:1 column of the 
Country Group D table.

PART 744--[AMENDED]

0
3. The authority citation for part 744 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of November 12, 2015, 80 FR 70667 
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January 
22, 2016); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016); 
Notice of September 15, 2016, 81 FR 64343 (September 19, 2016).


Sec.  744.22  [Removed and Reserved]

0
4. Remove and reserve Sec.  744.22.

    Dated: December 20, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-31208 Filed 12-23-16; 8:45 am]
 BILLING CODE 3510-13-P