82_FR_18290 82 FR 18217 - Revision to an Entry on the Entity List

82 FR 18217 - Revision to an Entry on the Entity List

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 73 (April 18, 2017)

Page Range18217-18220
FR Document2017-07833

This rule amends the Export Administration Regulations (EAR) by revising one existing entry in the Entity List, under the destination of Russia. The license requirement for the entry is being revised to conform with a general license issued by the Department of the Treasury's Office of Foreign Assets Control on February 2, 2017.

Federal Register, Volume 82 Issue 73 (Tuesday, April 18, 2017)
[Federal Register Volume 82, Number 73 (Tuesday, April 18, 2017)]
[Rules and Regulations]
[Pages 18217-18220]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-07833]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 170207154-7253-01]
RIN 0694-AH32


Revision to an Entry on the Entity List

AGENCY: Bureau of Industry and Security, Commerce

ACTION: Final rule.

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

SUMMARY: This rule amends the Export Administration Regulations (EAR) 
by revising one existing entry in the Entity List, under the 
destination of Russia. The license requirement for the entry is being 
revised to conform with a general license issued by the Department of 
the Treasury's Office of Foreign Assets Control on February 2, 2017.

DATES: This rule is effective April 18, 2017.

FOR FURTHER INFORMATION CONTACT: Chair, End-User Review Committee, 
Office of the Assistant Secretary, Export Administration, Bureau of 
Industry and Security, Department of Commerce, Phone: (202) 482-5991, 
Email: [email protected].

SUPPLEMENTARY INFORMATION:

[[Page 18218]]

Background

    The Entity List (Supplement No. 4 to Part 744) identifies entities 
and other persons reasonably believed to be involved, or to pose a 
significant risk of being or becoming involved, in activities contrary 
to the national security or foreign policy interests of the United 
States. The EAR imposes additional license requirements on, and limits 
the availability of most license exceptions for, exports, reexports, 
and transfers (in-country) to those listed. The ``license review 
policy'' for each listed entity or other person is identified in the 
License Review Policy column on the Entity List and the impact on the 
availability of license exceptions is described in the Federal Register 
notice adding entities or other persons to the Entity List. BIS places 
entities and other persons on the Entity List pursuant to sections of 
part 744 (Control Policy: End-User and End-Use Based) and part 746 
(Embargoes and Other Special Controls) of the EAR.
    The ERC, composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, where appropriate, the Treasury, 
makes all decisions regarding additions to, removals from, or other 
modifications to the Entity List. The ERC makes all decisions to add an 
entry to the Entity List by majority vote and all decisions to remove 
or modify an entry by unanimous vote.

Entity List Revision

    This rule implements the decision of the ERC to revise one existing 
entry in the Entity List, under the destination of Russia as described 
below.

Modification to License Requirements for an Entry on the Entity List

    On February 2, 2017, the Department of the Treasury's Office of 
Foreign Assets Control (OFAC) issued General License No. 1, Authorizing 
Certain Transactions with the Federal Security Service, an entity in 
the Russian Federation. This general license authorizes transactions 
and activities, otherwise prohibited pursuant to Executive Order 13694 
(E.O.) of April 1, 2015, as amended by E.O. 13757 of December 28, 2016, 
that are necessary and ordinarily incident to: Requesting, receiving, 
utilizing, paying for, or dealing in licenses, permits, certifications, 
or notifications issued or registered by the Federal Security Service 
(a.k.a. Federalnaya Sluzhba Bezopasnosti) (a.k.a. FSB) for the 
importation, distribution or use of information technology products in 
the Russian Federation, provided that (i) the exportation, 
reexportation, or provision of any goods or technology that are subject 
to the EAR, 15 CFR parts 730 through 774, are licensed or otherwise 
authorized by the Department of Commerce and (ii) the payment of any 
fees to the Federal Security Service for such licenses, permits, 
certifications, or notifications does not exceed $5,000 in any calendar 
year. The OFAC general license also authorizes transactions and 
activities ordinary and necessarily incident to complying with law 
enforcement or administrative actions or investigations involving the 
Federal Security Service and transactions and activities ordinary and 
necessarily incident to complying with rules and regulations 
administrated by the Federal Security Service. The general license does 
not authorize exportation, reexportation, or provision of any goods, 
technology, or services to the Crimea region of Ukraine or any 
transactions that otherwise violate E.O. 13757 of April 1, 2015. Any 
questions regarding to the scope of this general license should be 
directed to OFAC.
    In light of OFAC's General License No. 1, BIS makes a conforming 
change by modifying the listing for the Federal Security Service on the 
Entity List under the destination of Russia (the term used in the EAR 
for the Russian Federation). This final rule modifies the license 
requirement column for this entity to specify that the Entity List's 
license requirements do not apply to items subject to the EAR that are 
related to transactions authorized by OFAC pursuant to new General 
License No. 1 (i.e., transactions that are necessary and ordinarily 
incident to requesting, receiving, utilizing, paying for, or dealing in 
licenses, permits, certifications, or notifications issued or 
registered by the Federal Security Service (a.k.a. Federalnaya Sluzhba 
Bezopasnosti) (a.k.a. FSB) for the importation, distribution, or use of 
information technology products in the Russian Federation, so long as 
the transactions do not involve exportation, reexportation, or 
provision of any goods, technology, or services to the Crimea region of 
Ukraine and do not otherwise violate E.O. 13757). Except for the 
limited purposes described above, this conforming change does not 
authorize the exportation, reexportation, or provision of goods or 
technology to or on behalf of the Federal Security Service.
    This final rule makes the following revision to one entry on the 
Entity List:

Russia
    (1) Federal Security Service (FSB), a.k.a., the following one 
alias:

    --Federalnaya Sluzhba Bezopasnosti.
    Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; and 
Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia.


    Note: As described above, the changes this final rule makes to 
this Russian entity are limited to the License requirement column 
for this entry.

Export Administration Act of 1979

    Although the Export Administration Act of 1979 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 of 1979, 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, 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 be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System, which includes, among 
other things, license

[[Page 18219]]

applications and carries a burden estimate of 43.8 minutes for a manual 
or electronic submission. Total burden hours associated with the PRA 
and OMB control number 0694-0088 are not expected to increase as a 
result of this rule. You may send comments regarding the collection of 
information associated with this rule, including suggestions for 
reducing the burden, to Jasmeet K. Seehra, Office of Management and 
Budget (OMB), by email to [email protected], or by fax to 
(202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. Section 553(d) of the Administrative Procedure Act (APA) 
generally provides that rules may not take effect earlier than thirty 
(30) days after they are published in the Federal Register. BIS finds 
good cause to waive the 30-day delay in effectiveness under 5 U.S.C. 
553(d)(1) because this rule is a substantive rule which relieves a 
restriction. This rule's revision of the license requirement for the 
Federal Security Service (FSB) reduces the compliance burden that may 
be imposed on exporters due to the inconsistent sanctions. The revision 
also reduces the parties that are affected by the license requirements, 
addressing an unintended consequence of listing this entity on the 
Entity List.
    In addition, the Department finds that there is good cause under 5 
U.S.C. 553(b)(3)(B) to waive the provisions of the Administrative 
Procedure Act (APA) requiring prior notice and the opportunity for 
public comment for the revision included in this rule because they are 
either unnecessary or contrary to the public interest. The revision is 
limited to ensure consistency with OFAC's General License No. 1, and 
thus prior notice and the opportunity for public comment are 
unnecessary. The conforming change to the listing for Federal Security 
Service (FSB) is intended to ensure consistent treatment of this entity 
under both the EAR and OFAC's sanctions regime. Narrowing the scope of 
the license requirements addresses unintended consequences and 
unnecessary economic losses that U.S. exporters may face as they turn 
away potential sales due to this entity being listed on the Entity 
List. By publishing without prior notice and comment, U.S. exporters 
will be able to submit licenses, permits, certifications and 
notifications that are required under Russian law for information 
technology products imported into, distributed or used in Russia 
immediately, an action which was approved under OFAC's General License 
No. 1 since February 2, 2017. A prolonging of the inconsistent 
treatment for the sanctioned entity would create unnecessary compliance 
burden on exporters who are complying with OFAC and BIS regulations as 
well as additional delay and loss of potential sales for U.S. 
exporters.
    No other law requires that a notice of proposed rulemaking and an 
opportunity for public comment be given for this final rule. Because a 
notice of proposed rulemaking and an opportunity for public comment are 
not required under the APA or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. As a result, no final regulatory flexibility 
analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

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

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR 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 August 4, 2016, 81 FR 52587 
(August 8, 2016); Notice of September 15, 2016, 81 FR 64343 
(September 19, 2016); Notice of November 8, 2016, 81 FR 79379 
(November 10, 2016); Notice of January 13, 2017, 82 FR 6165 (January 
18, 2017).


0
2. Supplement No. 4 to part 744 is amended by revising, under Russia, 
one Russian entity ``Federal Security Service (FSB), a.k.a., the 
following one alias:

Federalnaya Sluzhba Bezopasnosti. Ulitsa Kuznetskiy Most, Dom 22, 
Moscow 107031, Russia; and Lubyanskaya Ploschad, Dom 2, Moscow 107031, 
Russia'' to read as follows:

Supplement No. 4 to Part 744--Entity List

* * * * *

----------------------------------------------------------------------------------------------------------------
                                                                              License review    Federal Register
        Country                     Entity             License requirement        policy            citation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA.................                                         * * * * * *
                         Federal Security Service      For all items        Presumption of     82 FR 724, 1/4/
                          (FSB), a.k.a., the            subject to the EAR   denial.            17. 82 FR
                          following one alias:          (see Sec.   744.11                      [INSERT FR PAGE
                         --Federalnaya Sluzhba          of the EAR), apart                      NUMBER AND 4/18/
                          Bezopasnosti.                 from items that                         17].
                         Ulitsa Kuznetskiy Most, Dom    are related to
                          22, Moscow 107031, Russia;    transactions that
                          and Lubyanskaya Ploschad,     are authorized by
                          Dom 2, Moscow 107031,         the Department of
                          Russia.                       the Treasury's
                                                        Office of Foreign
                                                        Assets Control
                                                        pursuant to
                                                        General License
                                                        No. 1 of February
                                                        2, 2017.
                                                                * * * * * *
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------



[[Page 18220]]

    Dated: April 13, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-07833 Filed 4-17-17; 8:45 am]
BILLING CODE 3510-33-P



                                                                 Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules and Regulations                                                             18217

                                             appears to have firmed somewhat. Inflation              interpretive rules and statements of                   PART 204—RESERVE
                                             has increased in recent quarters, moving                policy; or (3) an agency finding good                  REQUIREMENTS OF DEPOSITORY
                                             close to the Committee’s 2 percent longer-run           cause for shortened notice and                         INSTITUTIONS (REGULATION D)
                                             objective; excluding energy and food prices,            publishing its reasoning with the rule.
                                             inflation was little changed and continued to                                                                    1. The authority citation for part 204
                                             run somewhat below 2 percent. Market-based
                                                                                                     12 U.S.C. 553(d).                                      ■

                                             measures of inflation compensation remain                  The Board has determined that good                  continues to read as follows:
                                             low; survey-based measures of longer-term               cause exists for finding that the notice,                Authority: 12 U.S.C. 248(a), 248(c), 461,
                                             inflation expectations are little changed, on           public comment, and delayed effective                  601, 611, and 3105.
                                             balance.                                                date provisions of the APA are
                                               Consistent with its statutory mandate, the
                                                                                                                                                            ■ 2. Section 204.10 is amended by
                                                                                                     unnecessary, impracticable, or contrary                revising paragraph (b)(5) to read as
                                             Committee seeks to foster maximum
                                                                                                     to the public interest with respect to the             follows:
                                             employment and price stability. The
                                             Committee expects that, with gradual                    final amendments to Regulation D. The
                                                                                                     rate increases for IORR and IOER that                  § 204.10        Payment of interest on balances.
                                             adjustments in the stance of monetary policy,
                                             economic activity will expand at a moderate             are reflected in the final amendments to               *       *    *      *    *
                                             pace, labor market conditions will strengthen           Regulation D were made with a view                         (b) * * *
                                             somewhat further, and inflation will stabilize          towards accommodating commerce and                         (5) The rates for IORR and IOER are:
                                             around 2 percent over the medium term.                  business and with regard to their
                                             Near-term risks to the economic outlook                 bearing upon the general credit situation                                                                      Rate
                                             appear roughly balanced. The Committee                  of the country. Notice and public                                                                            (percent)
                                             continues to closely monitor inflation
                                                                                                     comment would prevent the Board’s
                                             indicators and global economic and financial                                                                    IORR .............................................        1.00
                                             developments.                                           action from being effective as promptly                 IOER .............................................        1.00
                                               In view of realized and expected labor                as necessary in the public interest, and
                                             market conditions and inflation, the                    would not otherwise serve any useful                   *         *        *        *        *
                                             Committee decided to raise the target range             purpose. Notice, public comment, and a
                                             for the federal funds rate to 3⁄4 to 1 percent.         delayed effective date would create                      By order of the Board of Governors of the
                                             The stance of monetary policy remains                                                                          Federal Reserve System, April 12, 2017.
                                                                                                     uncertainty about the finality and
                                             accommodative, thereby supporting some                  effectiveness of the Board’s action and                Ann E. Misback,
                                             further strengthening in labor market                   undermine the effectiveness of that                    Secretary of the Board.
                                             conditions and a sustained return to 2                                                                         [FR Doc. 2017–07743 Filed 4–17–17; 8:45 am]
                                                                                                     action. Accordingly, the Board has
                                             percent inflation.
                                                                                                     determined that good cause exists to                   BILLING CODE 6210–01–P
                                             A Federal Reserve Implementation note                   dispense with the notice, public
                                             released simultaneously with the                        comment, and delayed effective date
                                             announcement stated that:                               procedures of the APA with respect to
                                                                                                     the final amendments to Regulation D.                  DEPARTMENT OF COMMERCE
                                               The Board of Governors of the Federal
                                             Reserve System voted unanimously to raise
                                                                                                     IV. Regulatory Flexibility Analysis                    Bureau of Industry and Security
                                             the interest rate paid on required and excess
                                             reserve balances to 1.00 percent, effective                The Regulatory Flexibility Act
                                             March 16, 2017.                                                                                                15 CFR Part 744
                                                                                                     (‘‘RFA’’) does not apply to a rulemaking
                                             As a result, the Board is amending                      where a general notice of proposed                     [Docket No. 170207154–7253–01]
                                             § 204.10(b)(5) of Regulation D to change                rulemaking is not required.5 As noted
                                             IORR to 1.00 percent and IOER to 1.00                   previously, the Board has determined
                                                                                                                                                            RIN 0694–AH32
                                             percent.                                                that it is unnecessary and contrary to
                                                                                                     the public interest to publish a general               Revision to an Entry on the Entity List
                                             III. Administrative Procedure Act
                                                                                                     notice of proposed rulemaking for this
                                                In general, the Administrative                       final rule. Accordingly, the RFA’s                     AGENCY:  Bureau of Industry and
                                             Procedure Act (12 U.S.C. 551 et seq.)                   requirements relating to an initial and                Security, Commerce
                                             (‘‘APA’’) imposes three principal                       final regulatory flexibility analysis do               ACTION: Final rule.
                                             requirements when an agency                             not apply.
                                             promulgates legislative rules (rules                                                                           SUMMARY:   This rule amends the Export
                                             made pursuant to congressionally                        V. Paperwork Reduction Act                             Administration Regulations (EAR) by
                                             delegated authority): (1) Publication                     In accordance with the Paperwork                     revising one existing entry in the Entity
                                             with adequate notice of a proposed rule;                Reduction Act (‘‘PRA’’) of 1995 (44                    List, under the destination of Russia.
                                             (2) followed by a meaningful                            U.S.C. 3506; 5 CFR part 1320, appendix                 The license requirement for the entry is
                                             opportunity for the public to comment                   A.1), the Board reviewed the final rule                being revised to conform with a general
                                             on the rule’s content; and (3)                          under the authority delegated to the                   license issued by the Department of the
                                             publication of the final rule not less                  Board by the Office of Management and                  Treasury’s Office of Foreign Assets
                                             than 30 days before its effective date.                 Budget. The final rule contains no                     Control on February 2, 2017.
                                             The APA provides that notice and                        requirements subject to the PRA.                       DATES: This rule is effective April 18,
                                             comment procedures do not apply if the                                                                         2017.
                                             agency for good cause finds them to be                  List of Subjects in 12 CFR Part 204
                                                                                                                                                            FOR FURTHER INFORMATION CONTACT:
                                             ‘‘unnecessary, impracticable, or contrary
                                                                                                       Banks, Banking, Reporting and                        Chair, End-User Review Committee,
                                             to the public interest.’’ 12 U.S.C.
nlaroche on DSK30NT082PROD with RULES




                                                                                                     recordkeeping requirements.                            Office of the Assistant Secretary, Export
                                             553(b)(3)(A). Section 553(d) of the APA
                                             also provides that publication not less                   For the reasons set forth in the                     Administration, Bureau of Industry and
                                             than 30 days prior to a rule’s effective                preamble, the Board amends 12 CFR                      Security, Department of Commerce,
                                             date is not required for (1) a substantive              part 204 as follows:                                   Phone: (202) 482–5991, Email: ERC@
                                             rule which grants or recognizes an                                                                             bis.doc.gov.
                                             exemption or relieves a restriction; (2)                  55   U.S.C. 603 and 604.                             SUPPLEMENTARY INFORMATION:



                                        VerDate Sep<11>2014   13:31 Apr 17, 2017   Jkt 241001   PO 00000    Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\18APR1.SGM     18APR1


                                             18218               Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules and Regulations

                                             Background                                              exportation, reexportation, or provision              Russia
                                                The Entity List (Supplement No. 4 to                 of any goods or technology that are                     (1) Federal Security Service (FSB),
                                             Part 744) identifies entities and other                 subject to the EAR, 15 CFR parts 730                  a.k.a., the following one alias:
                                             persons reasonably believed to be                       through 774, are licensed or otherwise                  —Federalnaya Sluzhba Bezopasnosti.
                                             involved, or to pose a significant risk of              authorized by the Department of                         Ulitsa Kuznetskiy Most, Dom 22,
                                             being or becoming involved, in                          Commerce and (ii) the payment of any                       Moscow 107031, Russia; and
                                             activities contrary to the national                     fees to the Federal Security Service for                   Lubyanskaya Ploschad, Dom 2,
                                             security or foreign policy interests of the             such licenses, permits, certifications, or                 Moscow 107031, Russia.
                                             United States. The EAR imposes                          notifications does not exceed $5,000 in
                                                                                                                                                              Note: As described above, the changes this
                                             additional license requirements on, and                 any calendar year. The OFAC general                   final rule makes to this Russian entity are
                                             limits the availability of most license                 license also authorizes transactions and              limited to the License requirement column
                                             exceptions for, exports, reexports, and                 activities ordinary and necessarily                   for this entry.
                                             transfers (in-country) to those listed.                 incident to complying with law
                                             The ‘‘license review policy’’ for each                  enforcement or administrative actions or              Export Administration Act of 1979
                                             listed entity or other person is identified             investigations involving the Federal                    Although the Export Administration
                                             in the License Review Policy column on                  Security Service and transactions and                 Act of 1979 expired on August 20, 2001,
                                             the Entity List and the impact on the                   activities ordinary and necessarily                   the President, through Executive Order
                                             availability of license exceptions is                   incident to complying with rules and                  13222 of August 17, 2001, 3 CFR, 2001
                                             described in the Federal Register notice                regulations administrated by the Federal              Comp., p. 783 (2002), as amended by
                                             adding entities or other persons to the                 Security Service. The general license                 Executive Order 13637 of March 8,
                                             Entity List. BIS places entities and other              does not authorize exportation,                       2013, 78 FR 16129 (March 13, 2013) and
                                             persons on the Entity List pursuant to                  reexportation, or provision of any goods,             as extended by the Notice of August 4,
                                             sections of part 744 (Control Policy:                                                                         2016, 81 FR 52587 (August 8, 2016), has
                                                                                                     technology, or services to the Crimea
                                             End-User and End-Use Based) and part                                                                          continued the Export Administration
                                                                                                     region of Ukraine or any transactions
                                             746 (Embargoes and Other Special                                                                              Regulations in effect under the
                                             Controls) of the EAR.                                   that otherwise violate E.O. 13757 of
                                                                                                                                                           International Emergency Economic
                                                The ERC, composed of representatives                 April 1, 2015. Any questions regarding
                                                                                                                                                           Powers Act. BIS continues to carry out
                                             of the Departments of Commerce                          to the scope of this general license
                                                                                                                                                           the provisions of the Export
                                             (Chair), State, Defense, Energy and,                    should be directed to OFAC.                           Administration Act of 1979, as
                                             where appropriate, the Treasury, makes                     In light of OFAC’s General License                 appropriate and to the extent permitted
                                             all decisions regarding additions to,                   No. 1, BIS makes a conforming change                  by law, pursuant to Executive Order
                                             removals from, or other modifications to                by modifying the listing for the Federal              13222, as amended by Executive Order
                                             the Entity List. The ERC makes all                      Security Service on the Entity List                   13637.
                                             decisions to add an entry to the Entity                 under the destination of Russia (the
                                             List by majority vote and all decisions                                                                       Rulemaking Requirements
                                                                                                     term used in the EAR for the Russian
                                             to remove or modify an entry by                         Federation). This final rule modifies the                1. Executive Orders 13563 and 12866
                                             unanimous vote.                                         license requirement column for this                   direct agencies to assess all costs and
                                                                                                                                                           benefits of available regulatory
                                             Entity List Revision                                    entity to specify that the Entity List’s
                                                                                                                                                           alternatives and, if regulation is
                                                                                                     license requirements do not apply to
                                               This rule implements the decision of                                                                        necessary, to select regulatory
                                                                                                     items subject to the EAR that are related
                                             the ERC to revise one existing entry in                                                                       approaches that maximize net benefits
                                             the Entity List, under the destination of               to transactions authorized by OFAC                    (including potential economic,
                                             Russia as described below.                              pursuant to new General License No. 1                 environmental, public health and safety
                                                                                                     (i.e., transactions that are necessary and            effects, distributive impacts, and
                                             Modification to License Requirements                    ordinarily incident to requesting,                    equity). Executive Order 13563
                                             for an Entry on the Entity List                         receiving, utilizing, paying for, or                  emphasizes the importance of
                                               On February 2, 2017, the Department                   dealing in licenses, permits,                         quantifying both costs and benefits, of
                                             of the Treasury’s Office of Foreign                     certifications, or notifications issued or            reducing costs, of harmonizing rules,
                                             Assets Control (OFAC) issued General                    registered by the Federal Security                    and of promoting flexibility. This rule
                                             License No. 1, Authorizing Certain                      Service (a.k.a. Federalnaya Sluzhba                   has been determined to be not
                                             Transactions with the Federal Security                  Bezopasnosti) (a.k.a. FSB) for the                    significant for purposes of Executive
                                             Service, an entity in the Russian                       importation, distribution, or use of                  Order 12866.
                                             Federation. This general license                        information technology products in the                   2. Notwithstanding any other
                                             authorizes transactions and activities,                 Russian Federation, so long as the                    provision of law, no person is required
                                             otherwise prohibited pursuant to                        transactions do not involve exportation,              to respond to nor be subject to a penalty
                                             Executive Order 13694 (E.O.) of April 1,                reexportation, or provision of any goods,             for failure to comply with a collection
                                             2015, as amended by E.O. 13757 of                       technology, or services to the Crimea                 of information, subject to the
                                             December 28, 2016, that are necessary                   region of Ukraine and do not otherwise                requirements of the Paperwork
                                             and ordinarily incident to: Requesting,                 violate E.O. 13757). Except for the                   Reduction Act of 1995 (44 U.S.C. 3501
                                             receiving, utilizing, paying for, or                    limited purposes described above, this                et seq.) (PRA), unless that collection of
                                             dealing in licenses, permits,                           conforming change does not authorize                  information displays a currently valid
                                             certifications, or notifications issued or                                                                    Office of Management and Budget
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                                                                                                     the exportation, reexportation, or
                                             registered by the Federal Security                                                                            (OMB) Control Number. This regulation
                                                                                                     provision of goods or technology to or
                                             Service (a.k.a. Federalnaya Sluzhba                                                                           involves collections previously
                                                                                                     on behalf of the Federal Security
                                             Bezopasnosti) (a.k.a. FSB) for the                                                                            approved by OMB under control
                                             importation, distribution or use of                     Service.                                              number 0694–0088, Simplified Network
                                             information technology products in the                     This final rule makes the following                Application Processing System, which
                                             Russian Federation, provided that (i) the               revision to one entry on the Entity List:             includes, among other things, license


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                                                                   Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules and Regulations                                                      18219

                                             applications and carries a burden                       to the public interest. The revision is                    List of Subjects in 15 CFR Part 744
                                             estimate of 43.8 minutes for a manual or                limited to ensure consistency with
                                             electronic submission. Total burden                     OFAC’s General License No. 1, and thus                       Exports, Reporting and recordkeeping
                                             hours associated with the PRA and                       prior notice and the opportunity for                       requirements, Terrorism.
                                             OMB control number 0694–0088 are not                    public comment are unnecessary. The                          Accordingly, part 744 of the Export
                                             expected to increase as a result of this                conforming change to the listing for                       Administration Regulations (15 CFR
                                             rule. You may send comments regarding                   Federal Security Service (FSB) is                          parts 730–774) is amended as follows:
                                             the collection of information associated                intended to ensure consistent treatment
                                             with this rule, including suggestions for               of this entity under both the EAR and                      PART 744—[AMENDED]
                                             reducing the burden, to Jasmeet K.                      OFAC’s sanctions regime. Narrowing
                                             Seehra, Office of Management and                        the scope of the license requirements                      ■ 1. The authority citation for 15 CFR
                                             Budget (OMB), by email to Jasmeet_K._                   addresses unintended consequences and                      part 744 continues to read as follows:
                                             Seehra@omb.eop.gov, or by fax to (202)                  unnecessary economic losses that U.S.
                                             395–7285.                                                                                                             Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                                                                                     exporters may face as they turn away                       1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C.
                                                3. This rule does not contain policies               potential sales due to this entity being
                                             with Federalism implications as that                                                                               2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210;
                                                                                                     listed on the Entity List. By publishing                   E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp.,
                                             term is defined in Executive Order                      without prior notice and comment, U.S.                     p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993
                                             13132.                                                  exporters will be able to submit                           Comp., p. 608; E.O. 12938, 59 FR 59099, 3
                                                4. Section 553(d) of the                             licenses, permits, certifications and                      CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR
                                             Administrative Procedure Act (APA)                      notifications that are required under                      5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026,
                                             generally provides that rules may not                   Russian law for information technology                     61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
                                             take effect earlier than thirty (30) days                                                                          13099, 63 FR 45167, 3 CFR, 1998 Comp., p.
                                                                                                     products imported into, distributed or
                                             after they are published in the Federal                                                                            208; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                                                                                     used in Russia immediately, an action
                                             Register. BIS finds good cause to waive                                                                            Comp., p. 783; E.O. 13224, 66 FR 49079, 3
                                                                                                     which was approved under OFAC’s
                                             the 30-day delay in effectiveness under                                                                            CFR, 2001 Comp., p. 786; Notice of August
                                                                                                     General License No. 1 since February 2,
                                             5 U.S.C. 553(d)(1) because this rule is a                                                                          4, 2016, 81 FR 52587 (August 8, 2016); Notice
                                                                                                     2017. A prolonging of the inconsistent
                                             substantive rule which relieves a                                                                                  of September 15, 2016, 81 FR 64343
                                                                                                     treatment for the sanctioned entity                        (September 19, 2016); Notice of November 8,
                                             restriction. This rule’s revision of the
                                                                                                     would create unnecessary compliance                        2016, 81 FR 79379 (November 10, 2016);
                                             license requirement for the Federal
                                                                                                     burden on exporters who are complying                      Notice of January 13, 2017, 82 FR 6165
                                             Security Service (FSB) reduces the
                                                                                                     with OFAC and BIS regulations as well                      (January 18, 2017).
                                             compliance burden that may be
                                             imposed on exporters due to the                         as additional delay and loss of potential
                                                                                                     sales for U.S. exporters.                                  ■ 2. Supplement No. 4 to part 744 is
                                             inconsistent sanctions. The revision also                                                                          amended by revising, under Russia, one
                                             reduces the parties that are affected by                   No other law requires that a notice of
                                                                                                                                                                Russian entity ‘‘Federal Security Service
                                             the license requirements, addressing an                 proposed rulemaking and an
                                                                                                                                                                (FSB), a.k.a., the following one alias:
                                             unintended consequence of listing this                  opportunity for public comment be
                                             entity on the Entity List.                              given for this final rule. Because a                       Federalnaya Sluzhba Bezopasnosti.
                                                In addition, the Department finds that               notice of proposed rulemaking and an                       Ulitsa Kuznetskiy Most, Dom 22,
                                             there is good cause under 5 U.S.C.                      opportunity for public comment are not                     Moscow 107031, Russia; and
                                             553(b)(3)(B) to waive the provisions of                 required under the APA or by any other                     Lubyanskaya Ploschad, Dom 2, Moscow
                                             the Administrative Procedure Act (APA)                  law, the analytical requirements of the                    107031, Russia’’ to read as follows:
                                             requiring prior notice and the                          Regulatory Flexibility Act (5 U.S.C. 601
                                             opportunity for public comment for the                  et seq.) are not applicable. As a result,                  Supplement No. 4 to Part 744—Entity
                                             revision included in this rule because                  no final regulatory flexibility analysis is                List
                                             they are either unnecessary or contrary                 required and none has been prepared.                       *       *    *        *       *

                                                  Country                             Entity                           License requirement                License review policy           Federal Register citation


                                                       *                       *                       *                          *                       *                       *                      *

                                             RUSSIA ............               *                   *                          *                           *                    *                     *
                                                                   Federal Security Service (FSB), a.k.a.,        For all items subject to             Presumption of denial ......   82 FR 724, 1/4/17. 82 FR
                                                                     the following one alias:                       the EAR (see § 744.11                                               [INSERT FR PAGE
                                                                   —Federalnaya Sluzhba Bezopasnosti.               of the EAR), apart from                                             NUMBER AND 4/18/
                                                                   Ulitsa Kuznetskiy Most, Dom 22, Mos-             items that are related to                                           17].
                                                                     cow 107031, Russia; and                        transactions that are
                                                                     Lubyanskaya Ploschad, Dom 2, Mos-              authorized by the De-
                                                                     cow 107031, Russia.                            partment of the Treas-
                                                                                                                    ury’s Office of Foreign
                                                                                                                    Assets Control pursuant
                                                                                                                    to General License No.
                                                                                                                    1 of February 2, 2017.
                                                                               *                       *                      *                           *                       *                      *
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                                                       *                       *                       *                          *                       *                       *                      *




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                                             18220                      Federal Register / Vol. 82, No. 73 / Tuesday, April 18, 2017 / Rules and Regulations

                                               Dated: April 13, 2017.                                                  and seven World Data Centers. These                                        schedule of fees but rather the addition
                                             Matthew S. Borman,                                                        centers respond to over 2,000,000                                          of one new fee.
                                             Deputy Assistant Secretary for Export                                     requests for these data and products
                                                                                                                                                                                                  Classification
                                             Administration.                                                           annually from over 70 countries. This
                                             [FR Doc. 2017–07833 Filed 4–17–17; 8:45 am]                               collection of environmental data and                                          This rule has been determined to be
                                             BILLING CODE 3510–33–P                                                    products is growing rapidly, both in size                                  not significant for purposes of E.O.
                                                                                                                       and sophistication, and as a result the                                    12866. The provisions of the
                                                                                                                       associated costs have increased.                                           Administrative Procedure Act (5 U.S.C.
                                             DEPARTMENT OF COMMERCE                                                      Users have the ability to access the                                     553) requiring notice of proposed
                                                                                                                       data offline, online and through the                                       rulemaking and the opportunity for
                                             National Oceanic and Atmospheric                                          NESDIS e-Commerce System (NeS)                                             public comment are inapplicable
                                             Administration                                                            online store. Our ability to provide data,                                 because this rule falls within the public
                                                                                                                       information, products and services                                         property exception of subparagraph
                                             15 CFR Part 950                                                           depends on user fees.                                                      (a)(2) of section 553, as it relates only to
                                             [Docket No. 161107999–6999–01]
                                                                                                                                                                                                  the assessment of fees, as authorized by
                                                                                                                       Fee Schedule                                                               15 U.S.C. 1534, that accurately reflect
                                             RIN 0648–BG39                                                                In an October 22, 2015, final rule (80                                  the costs of providing access to publicly
                                                                                                                       FR 63914), NESDIS established a new                                        available environmental data,
                                             Schedule of Fees for Access to NOAA                                       schedule of fees for the sale of its data,                                 information, and related products.
                                             Environmental Data, Information, and                                      information, and related products and                                      Further, no other law requires that a
                                             Related Products and Services                                             services to users (‘‘October 2015 Fee                                      notice of proposed rulemaking and an
                                             AGENCY:   National Environmental                                          Schedule Rule’’). NESDIS revised the                                       opportunity for public comment be
                                             Satellite, Data and Information Service                                   fee schedule that had been in effect                                       given for this rule. Because a notice of
                                             (NESDIS), National Oceanic and                                            since 2013 to ensure that the fees                                         proposed rulemaking and an
                                             Atmospheric Administration (NOAA),                                        accurately reflect the costs of providing                                  opportunity for public comment are not
                                             Department of Commerce.                                                   access to the environmental data,                                          required to be given for this rule under
                                                                                                                       information, and related products and                                      5 U.S.C. 553 or by any other law, the
                                             ACTION: Final rule.                                                       services.                                                                  requirements of the Regulatory
                                             SUMMARY:    In this final rule, NESDIS                                       NESDIS will continue to review the                                      Flexibility Act (5 U.S.C. 601 et seq.) are
                                             adds a new service/product to the                                         user fees periodically, and will revise                                    not applicable. Accordingly, no
                                             NESDIS FY 2017 schedule of fees for the                                   such fees as necessary. Any future                                         Regulatory Flexibility Analysis is
                                             sale of its data, information, and related                                changes in the user fees and their                                         required and none has been prepared.
                                             products and services to users. NESDIS                                    effective date will be announced
                                                                                                                       through notice in the Federal Register.                                    List of Subjects in 15 CFR Part 950
                                             is authorized under the United States
                                             Code to assess fees, up to fair market                                                                                                                 Organization and functions
                                                                                                                       Need for Addition
                                             value, for access to environmental data,                                                                                                             (government agencies).
                                                                                                                         High Definition Geomagnetic Model—                                         Dated: April 5, 2017.
                                             information, and products derived from,
                                                                                                                       Real Time accurately models the
                                             collected, and/or archived by NOAA.                                                                                                                  Cherish Johnson,
                                                                                                                       magnetic fields originating in the Earth’s
                                             This action adds a new user fee for a                                                                                                                Chief Financial Officer/Chief Administrative
                                                                                                                       magnetosphere in real-time using a
                                             data product titled, High Definition                                                                                                                 Officer.
                                                                                                                       combination of solar-wind observing
                                             Geomagnetic Model—Real Time.                                                                                                                           For the reasons set forth above, 15
                                                                                                                       satellites situated between Earth and
                                             DATES: Effective May 18, 2017.                                            sun and a chain of geomagnetic                                             CFR part 950 is amended as follows:
                                             FOR FURTHER INFORMATION CONTACT:                                          observatories on the Earth’s surface.
                                             Lynn Hodges (301) 713–7064.                                                 We are adding a new user fee for this                                    PART 950—ENVIRONMENTAL DATA
                                                                                                                       data product—High Definition                                               AND INFORMATION
                                             SUPPLEMENTARY INFORMATION:
                                                                                                                       Geomagnetic Model—Real Time—to the
                                             Background                                                                                                                                           ■ 1. The authority citation for part 950
                                                                                                                       current user fee schedule. Accordingly,
                                                                                                                                                                                                  continues to read as follows:
                                               NESDIS operates NOAA’s National                                         Appendix A to Part 950—Schedule of
                                             Center for Environmental Information                                      User Fees for Access to NOAA                                                 Authority: (5 U.S.C. 552, 553).
                                             (NCEI). Through NCEI, NESDIS                                              Environmental Data includes the user                                       Reorganization Plan No. 4 of 1970.
                                             provides and ensures timely access to                                     fees established in October 2015 and the                                   ■ 2. Appendix A to part 950 is revised
                                             global environmental data from                                            new fee established by this final rule:                                    to read as follows:
                                             satellites and other sources, provides                                    High Definition Geomagnetic Model—
                                             information services, and develops                                        Real Time Fee. In addition, NESDIS has                                     Appendix A to Part 950—Schedule of
                                             science products. NESDIS maintains                                        deleted the New Fee column in                                              User Fees for Access to NOAA
                                             some 1,300 databases containing over                                      Appendix A to avoid confusion given                                        Environmental Data
                                             2,400 environmental variables at NCEI                                     that this final rule is not issuing a new

                                                                                                      Name of product/data/publication/information/service                                                                                        Current fee

                                             NOAA National Center for Environmental Information:
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                                                Department of Commerce Certification ........................................................................................................................................                         $116.00
                                                General Certification .....................................................................................................................................................................             92.00
                                                Paper Copy ...................................................................................................................................................................................           3.00
                                                Data Poster ...................................................................................................................................................................................         18.00
                                                Shipping Service ...........................................................................................................................................................................             8.00
                                                Rush Order Fee ............................................................................................................................................................................             60.00
                                                Super Rush Order Fee .................................................................................................................................................................                 100.00



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Document Created: 2017-04-18 00:00:22
Document Modified: 2017-04-18 00:00:22
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 April 18, 2017.
ContactChair, End-User Review Committee, Office of the Assistant Secretary, Export Administration, Bureau of Industry and Security, Department of Commerce, Phone: (202) 482-5991, Email: [email protected]
FR Citation82 FR 18217 
RIN Number0694-AH32
CFR AssociatedExports; Reporting and Recordkeeping Requirements and Terrorism

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