82 FR 27108 - Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates; Corrections
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 82, Issue 113 (June 14, 2017)
Bureau of Industry and Security
Federal Register Volume 82, Issue 113 (June 14, 2017)
| Page Range | 27108-27110 | |
| FR Document | 2017-12269 |
[Federal Register Volume 82, Number 113 (Wednesday, June 14, 2017)] [Rules and Regulations] [Pages 27108-27110] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-12269] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 740 and 774 [Docket No. 160217120-7396-02] RIN 0694-AG85 Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates; Corrections AGENCY: Bureau of Industry and Security, Commerce. ACTION: Correcting amendments. ----------------------------------------------------------------------- SUMMARY: The Bureau of Industry and Security (BIS) maintains, as part of its Export Administration Regulations (EAR), the Commerce Control List (CCL), which identifies certain items subject to Department of Commerce jurisdiction. This rule corrects citations, replaces text that was inadvertently removed, and corrects other errors associated with the ``Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates'' final rule published on September 20, 2016 (WA15 rule). DATES: This rule is effective: June 14, 2017. FOR FURTHER INFORMATION CONTACT: For general questions contact Sharron Cook, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce at 202-482 2440 or by email: [email protected]. For technical questions contact: Office of National Security and Technology Transfer Controls, Information Technology Control Division, Aaron Amundson at 202-482-0707. SUPPLEMENTARY INFORMATION: Background On September 20, 2016, BIS published a final rule entitled, ``Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates'' (81 FR 64656-64692), (WA15 [[Page 27109]] rule). The Wassenaar Arrangement (WA) on Export Controls for Conventional Arms and Dual-Use Goods and Technologies is a group of 41 like-minded states committed to promoting responsibility and transparency in the global arms trade, and preventing destabilizing accumulations of arms. As a Participating State, the United States has committed to controlling for export all items on the WA control lists. The lists were first established in 1996 and have been revised annually thereafter. Proposals for changes to the WA control lists that achieve consensus are approved by Participating States at annual Plenary meetings. Participating States are charged with implementing the agreed list changes as soon as possible after approval. The United States' implementation of WA list changes ensures U.S. companies have a level playing field with their competitors in other WA Participating States. This rule affects three sections of the EAR by correcting citations, replacing text that was inadvertently removed, and correcting other errors associated with the publication of the September 20th WA15 rule. Part 740--License Exceptions, Sec. 740.13 Technology and Software Unrestricted (TSU) The introductory paragraph of Sec. 740.13 (License Exception TSU) of the EAR is corrected by removing the reference to ``encryption source code (and corresponding object code) that would be considered publicly available under Sec. 734.3(b)(3) of the EAR,'' because the publicly available provisions for encryption were moved to Sec. 742.15(b) in the WA15 rule. This action also adds to the introductory paragraph a reference to ``release of technology and source code in the United States by U.S. universities to their bona fide and full time regular employees'' as that authorization was added in Sec. 740.13(f) of the EAR by the initial implementation rule (78 FR 22718), April 16, 2013. Part 740--License Exceptions, Sec. 740.17 Encryption Commodities, Software, and Technology (ENC) This correcting action makes three changes to Sec. 740.17 of the EAR, as described below. In Sec. 740.17, a Note that was inadvertently removed by the WA15 rule is added to introductory paragraph (b). The Note was omitted by error when the mass market provisions were moved from Sec. 742.15(b) to Sec. 740.17(b) in order to consolidate these provisions in one place. Also in Sec. 740.17, paragraph (b)(2)(i) is amended by replacing the incorrect reference to non-existing paragraph (a)(i)(A) and adding in its place the correct reference to paragraph (b)(2)(i)(A). Supplement No. 3 to Part 774 (Statements of Understanding) This correction rule amends the Notes to paragraph (a) by revising paragraph (6) to replace the reference to Note 1 to Category 5, Part II with a reference to Supplement No. 2 to part 774 of the EAR because Note 1 to Category 5, Part II was removed by the WA15 rule and replaced with the Supp. No. 2 reference. Export Administration Act Although the Export Administration Act of 1979, as amended, expired on August 21, 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 (EAR) in effect under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 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, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a ``significant regulatory action,'' as defined under Executive Order 12866. 2. This rule does not contain policies with Federalism implications as that term is defined under Executive Order 13132. 3. The provisions of the Administrative Procedure Act requiring notice of proposed rulemaking, the opportunity for public participation, and a 30-day delay in effective date (5 U.S.C. 553) are inapplicable, because this regulation involves a military and foreign affairs function of the United States (5 U.S.C. 553(a)(1)). Immediate implementation of these amendments fulfills the United States' international obligation to the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies (Wassenaar Arrangement). The Wassenaar Arrangement contributes to international security and regional stability by promoting greater responsibility in transfers of conventional arms and dual use goods and technologies, thus preventing destabilizing accumulations of such items. The Wassenaar Arrangement consists of 41 member countries that act on a consensus basis, and the changes set forth in this action make technical corrections to regulations implementing agreements reached at the December 2015 plenary session of the Wassenaar Arrangement. Because the United States is a significant exporter of the items covered by this rule, implementation of this rule is necessary for the Wassenaar Arrangement to achieve its purpose. Any delay in implementation will create a disruption in the movement of affected items globally, because of disharmony between export control measures implemented by Wassenaar Arrangement members, resulting in tension between member countries. Export controls work best when all countries implement the same export controls in a timely manner. Delaying this rulemaking to allow for notice and comment and a 30-day delay in effectiveness would prevent the United States from fulfilling its commitment to the Wassenaar Arrangement in a timely manner, and would injure the credibility of the United States in this and other multilateral regimes. In addition, issuing a notice of proposed rulemaking would be inappropriate and contrary to the public interest in this instance, as this rule is merely making corrections to a previously published final rule. Although there is no formal comment period, public comments on this final rule are welcome on a continuing basis. Comments should be submitted to Sharron Cook, Office of Exporter Services, Bureau of Industry and Security, Department of Commerce, 14th and Pennsylvania Ave. NW., Room 2099, Washington, DC 20230. 4. Because this action merely makes technical correcting amendments to the previously published WA15 final rule, the analysis required by the the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) that is contained in the WA15 final rule continues to apply to the regulatory text that is corrected by this [[Page 27110]] action, and no additional analysis is necessary. List of Subjects 15 CFR Part 740 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 774 Exports, Reporting and recordkeeping requirements. Accordingly, parts 740 and 774 of the Export Administration Regulations (15 CFR parts 730 through 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). 0 2. Section 740.13 is amended by revising the introductory text to read as follows: Sec. 740.13 Technology and Software--unrestricted (TSU). This license exception authorizes exports and reexports of operation technology and software; sales technology and software; software updates (bug fixes); ``mass market'' software subject to the General Software Note; and release of technology and source code in the United States by U.S. universities to their bona fide and full time regular employees. Note that encryption software subject to the EAR is not subject to the General Software Note (see paragraph (d)(2) of this section). * * * * * 0 3. In Sec. 740.17: 0 a. Paragraph (b) introductory text is amended by adding a Note to the paragraph; and 0 b. Paragraph (b)(2)(i) is amended by removing the reference ``paragraph (a)(i)(A)'' and adding in its place ``paragraph (b)(2)(i)(A)''. The addition reads as follows: Sec. 740.17 Encryption commodities, software, and technology (ENC). * * * * * (b) * * * Note to paragraph (b) introductory text: Mass market encryption software that would be considered publicly available under Sec. 734.3(b)(3) of the EAR, and is authorized for export under this paragraph (b), remains subject to the EAR until all applicable classification or self-classification requirements set forth in this section are fulfilled. * * * * * PART 774 [AMENDED] 0 4. The authority citation for part 774 continues 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. 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. 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. 3 to Part 774 [Amended] 0 5. In Supplement No. 3 to part 774, the Notes to paragraph (a) are amended by revising paragraph (6) to read as follows: Supplement No. 3 to Part 774--Statements of Understanding (a) * * * Notes to Paragraph (a): * * * (6) For commodities and software ``specially designed'' for medical end-use that incorporate an encryption or other ``information security'' item subject to the EAR, see also section 3 (General ``Information Security'' Note (GISN)) to Supplement No. 2 to this part. * * * * * Dated: June 7, 2017. Matthew S. Borman, Deputy Assistant Secretary for Export Administration. [FR Doc. 2017-12269 Filed 6-13-17; 8:45 am] BILLING CODE 3510-33-P
![27108 Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Rules and Regulations
to or by external network sources, and special conditions would apply to that Issued in Renton, Washington, on June 2,
may be used for or interfaced with a model as well. 2017.
diverse set of functions, including: Michael Kaszycki,
This action affects only a certain
• Flight-safety-related control, novel or unusual design feature on one Acting Manager, Transport Airplane
communication, and navigation systems model of airplane. It is not a rule of Directorate, Aircraft Certification Service.
(airplane-control domain); general applicability. [FR Doc. 2017–12280 Filed 6–13–17; 8:45 am]
• Operator business and BILLING CODE 4910–13–P
administrative support (operator- The substance of these special
information domain); and conditions has been subject to the notice
• Passenger information and and comment period in several prior
instances and has been derived without DEPARTMENT OF COMMERCE
entertainment systems (passenger-
entertainment domain) substantive change from those Bureau of Industry and Security
previously issued. It is unlikely that
Discussion
prior public comment would result in a 15 CFR Parts 740 and 774
The Embraer Model ERJ 190–300 significant change from the substance
airplane’s digital-systems network contained herein. Therefore, the FAA [Docket No. 160217120–7396–02]
architecture is novel or unusual for has determined that prior public notice
commercial transport airplanes as it RIN 0694–AG85
and comment are unnecessary and
allows connection to airplane electronic impracticable, and good cause exists for Wassenaar Arrangement 2015 Plenary
systems and networks, and access from adopting these special conditions upon Agreements Implementation, Removal
sources external to the airplane (e.g., publication in the Federal Register. The of Foreign National Review
operator networks, wireless devices, FAA is requesting comments to allow Requirements, and Information
Internet connectivity, service-provider interested persons to submit views that Security Updates; Corrections
satellite communications, electronic may not have been submitted in
flight bags, etc.) to the previously response to the prior opportunities for AGENCY: Bureau of Industry and
isolated airplane electronic assets. comment described above. Security, Commerce.
Airplane electronic assets include ACTION: Correcting amendments.
electronic equipment and systems, List of Subjects in 14 CFR Part 25
instruments, networks, servers, software SUMMARY: The Bureau of Industry and
Aircraft, Aviation safety, Reporting Security (BIS) maintains, as part of its
and electronic components, field-
and recordkeeping requirements. Export Administration Regulations
loadable software and hardware
applications, databases, etc. This The authority citation for these (EAR), the Commerce Control List
proposed design may result in network special conditions is as follows: (CCL), which identifies certain items
security vulnerabilities from intentional subject to Department of Commerce
Authority: 49 U.S.C. 106(g), 40113, 44701,
or unintentional corruption of data and 44702, 44704.
jurisdiction. This rule corrects citations,
systems required for the safety, replaces text that was inadvertently
operation, and maintenance of the The Special Conditions removed, and corrects other errors
airplane. associated with the ‘‘Wassenaar
The existing regulations and guidance Accordingly, pursuant to the Arrangement 2015 Plenary Agreements
material did not anticipate these types authority delegated to me by the Implementation, Removal of Foreign
of digital-system architectures, nor Administrator, the following special National Review Requirements, and
access to airplane systems. Furthermore, conditions are issued as part of the type Information Security Updates’’ final rule
14 CFR part 25, and current system- certification basis for electronic system- published on September 20, 2016
safety assessment policy and security protection from unauthorized (WA15 rule).
techniques, do not address potential external access on Embraer S.A. Model
DATES: This rule is effective: June 14,
security vulnerabilities by unauthorized ERJ 190–300 airplanes.
2017.
access to airplane data busses and 1. The applicant must ensure that the
servers. Therefore, these special FOR FURTHER INFORMATION CONTACT: For
airplane electronic systems are
conditions are issued to ensure that the general questions contact Sharron Cook,
protected from access by unauthorized
security, integrity, and availability of Office of Exporter Services, Bureau of
sources external to the airplane,
airplane systems are not compromised Industry and Security, U.S. Department
including those possibly caused by
by certain wired or wireless electronic of Commerce at 202–482 2440 or by
maintenance activity.
connections between airplane data email: Sharron.Cook@bis.doc.gov.
2. The applicant must ensure that For technical questions contact:
busses and networks. electronic system-security threats are
These special conditions contain the Office of National Security and
identified and assessed, and that Technology Transfer Controls,
additional safety standards that the
effective electronic system-security Information Technology Control
Administrator considers necessary to
protection strategies are implemented to Division, Aaron Amundson at 202–482–
establish a level of safety equivalent to
protect the airplane from all adverse 0707.
that established by the existing
impacts on safety, functionality, and SUPPLEMENTARY INFORMATION:
airworthiness standards.
continued airworthiness.
Applicability 3. The applicant must establish Background
mstockstill on DSK30JT082PROD with RULES
As discussed above, these special appropriate procedures to allow the On September 20, 2016, BIS
conditions are applicable to the Embraer operator to ensure that continued published a final rule entitled,
Model ERJ 190–300 airplane. Should airworthiness of the airplane is ‘‘Wassenaar Arrangement 2015 Plenary
Embraer apply at a later date for a maintained, including all post-type- Agreements Implementation, Removal
change to the type certificate to include certification modifications that may of Foreign National Review
another model incorporating the same have an impact on the approved Requirements, and Information Security
novel or unusual design feature, these electronic system-security safeguards. Updates’’ (81 FR 64656–64692), (WA15
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![27110 Federal Register / Vol. 82, No. 113 / Wednesday, June 14, 2017 / Rules and Regulations
action, and no additional analysis is paragraph (b), remains subject to the Keweenaw Waterway for the annual
necessary. EAR until all applicable classification or Breakers to Bridge Paddle Festival. This
self-classification requirements set forth annual event historically occurs within
List of Subjects
in this section are fulfilled. the first 2 weeks of September and lasts
15 CFR Part 740 * * * * * for 1 day. This action is necessary to
Administrative practice and safeguard the participants and
procedure, Exports, Reporting and PART 774 [AMENDED] spectators on the water in a portion of
recordkeeping requirements. the Keweenaw Waterway between the
■ 4. The authority citation for part 774 North Entry and the Portage Lake Lift
15 CFR Part 774 continues to read as follows: Bridge located in Houghton, MI. This
Exports, Reporting and recordkeeping Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. regulation will functionally restrict all
requirements. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. vessel speeds while within a designated
7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et no-wake zone, unless otherwise
Accordingly, parts 740 and 774 of the seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 specifically authorized by the Captain of
Export Administration Regulations (15 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 the Port Duluth (COTP) or a designated
CFR parts 730 through 774) are et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR
representative. The area forming the
amended as follows: 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. subject of this permanent special local
PART 740 [AMENDED] 783; Notice of August 4, 2016, 81 FR 52587 regulation is described below.
(August 8, 2016). DATES: This rule is effective July 14,
■ 1. The authority citation for part 740 2017.
continues to read as follows: Supplement No. 3 to Part 774
[Amended] ADDRESSES: To view documents
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. mentioned in this preamble as being
1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. available in the docket, go to http://
■ 5. In Supplement No. 3 to part 774,
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. www.regulations.gov, type USCG–2017–
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 the Notes to paragraph (a) are amended
Comp., p. 783; Notice of August 4, 2016, 81 by revising paragraph (6) to read as 0170 in the ‘‘SEARCH’’ box and click
FR 52587 (August 8, 2016). follows: ‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
■ 2. Section 740.13 is amended by Supplement No. 3 to Part 774— rule.
revising the introductory text to read as Statements of Understanding
FOR FURTHER INFORMATION CONTACT: If
follows: (a) * * * you have questions about this
Notes to Paragraph (a): * * * rulemaking, call or email Lieutenant
§ 740.13 Technology and Software—
(6) For commodities and software John Mack, Waterways management,
unrestricted (TSU).
‘‘specially designed’’ for medical end- MSU Duluth, Coast Guard; telephone
This license exception authorizes use that incorporate an encryption or
exports and reexports of operation 218–725–3818, email John.V.Mack@
other ‘‘information security’’ item uscg.mil.
technology and software; sales subject to the EAR, see also section 3
technology and software; software (General ‘‘Information Security’’ Note SUPPLEMENTARY INFORMATION:
updates (bug fixes); ‘‘mass market’’ (GISN)) to Supplement No. 2 to this I. Table of Abbreviations
software subject to the General Software part.
Note; and release of technology and COTP Captain of the Port Duluth
* * * * * CFR Code of Federal Regulations
source code in the United States by U.S.
universities to their bona fide and full Dated: June 7, 2017. DHS Department of Homeland Security
Matthew S. Borman, FR Federal Register
time regular employees. Note that
NPRM Notice of proposed rulemaking
encryption software subject to the EAR Deputy Assistant Secretary for Export § Section
is not subject to the General Software Administration. U.S.C. United States Code
Note (see paragraph (d)(2) of this [FR Doc. 2017–12269 Filed 6–13–17; 8:45 am]
section). BILLING CODE 3510–33–P
II. Background, Purpose, and Legal
* * * * * Basis
■ 3. In § 740.17: On March 30, 2017 the Coast Guard
■ a. Paragraph (b) introductory text is DEPARTMENT OF HOMELAND published an NPRM in the Federal
amended by adding a Note to the SECURITY Register (82 FR 15662) entitled ‘‘Special
paragraph; and Local Regulation; Breakers to Bridge
■ b. Paragraph (b)(2)(i) is amended by
Coast Guard Paddle Festival, Lake Superior,
removing the reference ‘‘paragraph Keweenaw Waterway, MI.’’ The NPRM
(a)(i)(A)’’ and adding in its place 33 CFR Part 100 proposed to establish a no-wake zone
‘‘paragraph (b)(2)(i)(A)’’. [Docket Number USCG–2017–0170] within the Keweenaw Waterway on an
The addition reads as follows: annual basis during the Breakers to
RIN 1625–AA08 Bridge Paddle Festival, and invited
§ 740.17 Encryption commodities, comments on our proposed regulatory
software, and technology (ENC). Special Local Regulation; Breakers to
action related to this fireworks display.
* * * * * Bridge Paddle Festival, Lake Superior,
The aforementioned NPRM was open
Keweenaw Waterway, MI
mstockstill on DSK30JT082PROD with RULES
(b) * * * for comment for 30 days, in which no
Note to paragraph (b) AGENCY: Coast Guard, DHS. comments were received.
introductory text: Mass market ACTION: Final rule.
encryption software that would be III. Discussion of Comments, Changes,
considered publicly available under SUMMARY: The Coast Guard is and the Rule
§ 734.3(b)(3) of the EAR, and is establishing a permanent special local As noted above, we received no
authorized for export under this regulation on Lake Superior within the comments on our NPRM published on
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Document Created: 2017-06-14 01:23:42
Document Modified: 2017-06-14 01:23:42
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Correcting amendments. | |
| Dates | This rule is effective: June 14, 2017. | |
| Contact | For general questions contact Sharron Cook, Office of Exporter Services, Bureau of Industry and Security, U.S. Department of Commerce at 202-482 2440 or by email: [email protected] | |
| FR Citation | 82 FR 27108 | |
| RIN Number | 0694-AG85 | |
| CFR Citation | 15
CFR
740 15 CFR 774 | |
| CFR Associated | Administrative Practice and Procedure; Exports and Reporting and Recordkeeping Requirements |
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