82_FR_4791 82 FR 4781 - Revisions to Sudan Licensing Policy

82 FR 4781 - Revisions to Sudan Licensing Policy

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 10 (January 17, 2017)

Page Range4781-4783
FR Document2017-00836

This rule revises the policy of review for applications for licenses to export or reexport to Sudan certain items that are intended to ensure the safety of civil aviation or the safe operation of fixed- wing, commercial passenger aircraft. Such applications will now be reviewed under a general policy of approval rather than a general policy of denial. This rule also revises the review policy from a general policy of denial to a general policy of approval for applications for licenses to export or reexport to Sudan certain items for use to inspect, design, construct, operate, improve, maintain, repair, overhaul or refurbish railroads in Sudan. This rule does not create any new license requirements or remove any existing license requirements for exports or reexports to Sudan. BIS is making these licensing policy changes in connection with ongoing U.S.-Sudan bilateral engagement, and with the aim of enhancing the safety of Sudan's civil aviation and improving the country's railroads. This action takes into account the United States' goals to improve regional peace and security. This rule also removes two instances of ``contract sanctity dates'' pertaining to the export and reexport of certain items to Sudan from the EAR that currently serve no practical purpose. BIS is taking these actions in coordination with the Department of the Treasury's Office of Foreign Assets Control (OFAC), which is amending the Sudanese Sanctions Regulations.

Federal Register, Volume 82 Issue 10 (Tuesday, January 17, 2017)
[Federal Register Volume 82, Number 10 (Tuesday, January 17, 2017)]
[Rules and Regulations]
[Pages 4781-4783]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00836]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 742

[Docket No. 160901810-6810-01]
RIN 0694-AH10


 Revisions to Sudan Licensing Policy

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: This rule revises the policy of review for applications for 
licenses to export or reexport to Sudan certain items that are intended 
to ensure the safety of civil aviation or the safe operation of fixed-
wing, commercial passenger aircraft. Such applications will now be 
reviewed under a general policy of approval rather than a general 
policy of denial.
    This rule also revises the review policy from a general policy of 
denial to a general policy of approval for applications for licenses to 
export or reexport to Sudan certain items for use to inspect, design, 
construct, operate, improve, maintain, repair, overhaul or refurbish 
railroads in Sudan. This rule does not create any new license 
requirements or remove any existing license requirements for exports or 
reexports to Sudan. BIS is making these licensing policy changes in 
connection with ongoing U.S.-Sudan bilateral engagement, and with the 
aim of enhancing the safety of Sudan's civil aviation and improving the 
country's railroads. This action takes into account the United States' 
goals to improve regional peace and security.
    This rule also removes two instances of ``contract sanctity dates'' 
pertaining to the export and reexport of certain items to Sudan from 
the EAR that currently serve no practical purpose.
    BIS is taking these actions in coordination with the Department of 
the Treasury's Office of Foreign Assets Control (OFAC), which is 
amending the Sudanese Sanctions Regulations.

DATES: Effective Date: January 17, 2017.

FOR FURTHER INFORMATION CONTACT: Foreign Policy Division, Bureau of 
Industry and Security, Phone: (202) 482-4252.

SUPPLEMENTARY INFORMATION: 

Background

    Pursuant to Sec.  742.10 of the Export Administration Regulations 
(EAR), in keeping with Sudan's designation as a state sponsor of 
terrorism, persons must obtain a license to export or reexport to Sudan 
all aircraft controlled on the Commerce Control List (Supp. No. 1 to 
part 774 of the EAR) (CCL) and to export related parts and components 
that are controlled on the CCL. Prior to the publication of this rule, 
the EAR imposed a general policy of denial on license applications for 
such exports or reexports to all end-users and for all end uses in 
Sudan. This rule revises the licensing policy to a general policy of 
approval for parts, components, materials, equipment, and technology 
that are controlled on the CCL only for anti-terrorism reasons and that 
are intended to ensure the safety of civil aviation or the safe 
operation of fixed-wing, commercial passenger aircraft.
    Applications to export or reexport to Sudan complete aircraft and 
applications to export or reexport to Sudan aircraft-related items that 
are controlled for anti-terrorism reasons and one or more additional 
reasons (for example, missile technology reasons) will continue to be 
reviewed under a general policy of denial to all end users.
    This rule also revises the general policy of denial to a general 
policy of approval for license applications to export or reexport to 
Sudan items controlled on the CCL only for anti-terrorism reasons that 
will be used to inspect, design, construct, operate, improve, maintain, 
repair, overhaul or refurbish railroads in Sudan.
    With respect to both aircraft related-items and railroad-related 
items, the general policies of approval set forth in this rule apply 
only to exports and reexports to Sudan for civil uses by non-sensitive 
end-users within Sudan. Sensitive end users, who are not eligible for 
these policies, include Sudan's military, police, and/or intelligence 
services and persons that are owned by or are part of or are operated 
or controlled by those services. Additionally, license applications for 
the export or reexport of items that would substantially benefit such 
sensitive end users will generally be denied. To implement these 
policies, this rule revises Sec.  742.10(b)(3) of the EAR, which sets 
forth exceptions to the general policies of denial that apply to most 
license applications to export or reexport to Sudan.
    In conjunction with this rule, the Department of the Treasury's 
Office of Foreign Assets Control (OFAC) is

[[Page 4782]]

amending the Sudanese Sanctions Regulations, 31 CFR part 538, to add a 
new general license that authorizes all transactions prohibited by 
those regulations and by Executive Orders 13067 and 13412. Under OFAC's 
new general license, newly-authorized transactions include the 
processing of transactions involving persons in Sudan; the importation 
of goods and services from Sudan; the exportation of goods, technology, 
and services to Sudan; and transactions involving property in which the 
Government of Sudan has an interest. Persons interested in exporting or 
reexporting to Sudan goods and technology that are subject to the EAR, 
including items related to railroads or the safety of civil aviation or 
safe operation of fixed-wing commercial passenger aircraft, pursuant to 
OFAC's new general license should consult BIS regarding any licensing 
obligations they may have under the EAR.
    BIS will continue to evaluate license applications in light of 
section 6(j) of the Export Administration Act of 1979 (EAA), as 
continued in effect under the International Emergency Economic Powers 
Act, and any other relevant legal requirements.
    This rule also removes and reserves paragraphs (c)(6)(iii) and 
(c)(10)(iii) of Supplement No. 2 to part 742, which state licensing 
policy and contract sanctity dates for aircraft, and cryptographic and 
cryptologic equipment, respectively. The licensing policies for these 
commodities are stated in paragraphs (b)(1)(iv) and (b)(1)(v) of Sec.  
742.10 and need not be repeated in Supplement No. 2. Moreover, as a 
consequence of this rule, which revises licensing policy for certain 
aircraft-related items and railroad-related items, the latter category 
potentially including cryptographic and cryptologic equipment, 
paragraphs (c)(6)(iii) and (c)(10)(iii)'s statements of a general 
policy of denial for all end-users in Sudan is no longer accurate. 
Additionally, the recitation of contract sanctity dates in Supplement 
No. 2 does not serve a practical purpose. The term ``contract sanctity 
date'' draws on section 6(p) of the EAA. That section constrains BIS's 
ability to limit exports and reexports in performance of contracts 
entered into prior to the date of imposition of export controls. The 
references to the contract sanctity dates in the supplement do not 
limit or otherwise affect the right of any license applicant to assert 
that the provisions of section 6(p) of the EAA apply to the license 
application that it is submitting. The identified dates are also long 
outdated, with March 21, 2003, the most recent contract sanctity date 
that this rule removes from Supplement No. 2 to part 742.

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, 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 not to be significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the 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 rule 
involves a collection of information approved under OMB control number 
0694-0088--Simplified Network Application Processing+ System (SNAP+) 
and the Multipurpose Export License Application, which carries an 
annual estimated burden of 31,833 hours. BIS believes that this rule 
will have no material impact on that burden. To the extent that it has 
any impact, BIS believes that the benefits of this rule justify any 
additional burden it creates. This rule does not impose any new license 
requirements; in fact, it creates more favorable license application 
review policies for exports and reexports to Sudan. These more 
favorable policies might increase the number of license applications 
submitted to BIS because applicants might be more optimistic about 
obtaining approval. However, the benefit to license applicants in the 
form of greater likelihood of approval justifies any additional burden. 
Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing the 
burden, to Jasmeet K. Seehra, Office of Management and Budget, by email 
at [email protected] or by fax to (202) 395-7285 and to Sheila 
Quarterman at [email protected].
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking and the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States (see 5 U.S.C. 553(a)(1)). BIS is making these 
licensing policy changes in connection with ongoing U.S.-Sudan 
bilateral engagement, and with the aim of enhancing the safety of 
Sudan's civil aviation and improving its railroads. This decision takes 
into account our goals to improve regional peace and security. A delay 
in effective date would undermine progress in that bilateral engagement 
adversely impacting the U.S. Government's foreign policy goals of 
improving regional peace and security.
    Further, no other law requires that a notice of proposed rulemaking 
and an opportunity for public comment be given for this rule. Because a 
notice of proposed rulemaking and an opportunity for public comment are 
not required to be given for this rule under 5 U.S.C. 553, or by any 
other law, the requirements of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) are not applicable.

List of Subjects in 15 CFR Part 742

    Exports, Terrorism.

    For the reasons set forth in the preamble, part 742 of the Export 
Administration Regulations (15 CFR parts 730-774) is amended as 
follows:

PART 742--[AMENDED]

0
1. The authority citation for 15 CFR part 742 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.;

[[Page 4783]]

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, 
Pub. L. 108-11, 117 Stat. 559; 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. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Presidential Determination 2003-23, 68 FR 26459, 
3 CFR, 2004 Comp., p. 320; Notice of August 4, 2016, 81 FR 52587 
(August 8, 2016); Notice of November 8, 2016, 81 FR 79379 (November 
10, 2016).


0
2. Section 742.10 is amended by:
0
a. Adding a paragraph heading to paragraph (b)(1) introductory text;
0
b. Revising the first sentence of paragraph (b)(1)(iv);
0
c. Adding a paragraph heading to paragraph (b)(2); and
0
d. Revising paragraph (b)(3).
    The additions and revisions read as follows:


Sec.  742.10   Anti-terrorism: Sudan.

* * * * *
    (b) * * *
    (1) General policy of denial. * * *
* * * * *
    (iv) Except as provided in paragraph (b)(3)(ii) of this section, 
all aircraft (powered and unpowered), helicopters, engines and related 
spare parts and components. * * *
* * * * *
    (2) Military end-user and end-use policy. * * *
    (3) Other licensing policies. The licensing policies set forth in 
this paragraph apply notwithstanding the provisions of paragraphs 
(b)(1) and (b)(2) of this section.
    (i) Case-by-case review policy. Applications to export or reexport 
to Sudan will be considered on a case-by-case basis in the four 
situations described in paragraphs (b)(3)(i)(A) through (D) of this 
section.
    (A) The transaction involves the reexport to Sudan of items where 
Sudan was not the intended ultimate destination at the time of original 
export from the United States, provided that the export from the United 
States occurred prior to the applicable contract sanctity date.
    (B) The U.S. content of foreign-produced commodities is 20% or less 
by value.
    (C) The commodities are medical items.
    (D) The items are telecommunications equipment and associated 
computers, software and technology for civil end use, including items 
useful for the development of civil telecommunications network 
infrastructure.
    Note to paragraph (b)(3)(i). Applicants seeking approval of their 
license applications pursuant to this paragraph must include with their 
applications documentation demonstrating how their proposed transaction 
is consistent with one or more of the four situations described in this 
paragraph.
    (ii) General policy of approval. Applications to export or reexport 
to Sudan the following for civil uses by non-sensitive end-users within 
Sudan will be reviewed with a general policy of approval.
    (A) Parts, components, materials, equipment, and technology that 
are controlled on the Commerce Control List (Supp. No. 1 to part 774 of 
the EAR) only for anti-terrorism reasons that are intended to ensure 
the safety of civil aviation or the safe operation of fixed-wing 
commercial passenger aircraft.
    (B) Items controlled on the Commerce Control List (Supp. No. 1 to 
part 774 of the EAR) only for anti-terrorism reasons that will be used 
to inspect, design, construct, operate, improve, maintain, repair, 
overhaul or refurbish railroads in Sudan.
    Note to paragraph (b)(3)(ii). Applications will generally be denied 
for exports or reexports that would substantially benefit a sensitive 
end user. Sensitive end users include Sudan's military, police, and 
intelligence services and persons that are owned by or are part of or 
operated or controlled by those services.
* * * * *

Supplement No. 2 to Part 742 [Amended]

0
 3. In Supplement No. 2 to part 742, remove and reserve paragraphs 
(c)(6)(iii) and (c)(10)(iii).

    Dated: January 4, 2017.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2017-00836 Filed 1-13-17; 8:45 am]
 BILLING CODE 3510-33-P



                                                                Federal Register / Vol. 82, No. 10 / Tuesday, January 17, 2017 / Rules and Regulations                                           4781

                                              emailed to: 9-ANM-Seattle-ACO-AMOC-                       Issued in Renton, Washington, on                     SUPPLEMENTARY INFORMATION:
                                              Requests@faa.gov.                                       December 30, 2016.
                                                (2) Before using any approved AMOC,                   John P. Piccola, Jr.,                                  Background
                                              notify your appropriate principal inspector,            Acting Manager, Transport Airplane                        Pursuant to § 742.10 of the Export
                                              or lacking a principal inspector, the manager           Directorate, Aircraft Certification Service.           Administration Regulations (EAR), in
                                              of the local flight standards district office/                                                                 keeping with Sudan’s designation as a
                                              certificate holding district office.                    [FR Doc. 2017–00115 Filed 1–13–17; 8:45 am]
                                                                                                                                                             state sponsor of terrorism, persons must
                                                (3) An AMOC that provides an acceptable               BILLING CODE 4910–13–P
                                                                                                                                                             obtain a license to export or reexport to
                                              level of safety may be used for any repair,
                                              modification, or alteration required by this
                                                                                                                                                             Sudan all aircraft controlled on the
                                              AD if it is approved by the Boeing                                                                             Commerce Control List (Supp. No. 1 to
                                                                                                      DEPARTMENT OF COMMERCE                                 part 774 of the EAR) (CCL) and to export
                                              Commercial Airplanes Organization
                                              Designation Authorization (ODA) that has                                                                       related parts and components that are
                                                                                                      Bureau of Industry and Security
                                              been authorized by the Manager, Seattle                                                                        controlled on the CCL. Prior to the
                                              ACO, to make those findings. To be                                                                             publication of this rule, the EAR
                                                                                                      15 CFR Part 742
                                              approved, the repair method, modification                                                                      imposed a general policy of denial on
                                              deviation, or alteration deviation must meet            [Docket No. 160901810–6810–01]                         license applications for such exports or
                                              the certification basis of the airplane and the                                                                reexports to all end-users and for all end
                                              approval must specifically refer to this AD.            RIN 0694–AH10
                                                                                                                                                             uses in Sudan. This rule revises the
                                              (m) Related Information                                 Revisions to Sudan Licensing Policy                    licensing policy to a general policy of
                                                For more information about this AD,
                                                                                                                                                             approval for parts, components,
                                                                                                      AGENCY:  Bureau of Industry and                        materials, equipment, and technology
                                              contact Francis Smith, Aerospace Engineer,
                                                                                                      Security, Commerce.                                    that are controlled on the CCL only for
                                              Cabin Safety and Environmental Controls
                                              Branch, ANM–150S, FAA, Seattle ACO, 1601                ACTION: Final rule.                                    anti-terrorism reasons and that are
                                              Lind Avenue SW., Renton, WA 98057–3356;                                                                        intended to ensure the safety of civil
                                                                                                      SUMMARY:    This rule revises the policy of            aviation or the safe operation of fixed-
                                              phone: 425–917–6596; fax: 425–917–6590;
                                              email: francis.smith@faa.gov.                           review for applications for licenses to                wing, commercial passenger aircraft.
                                                                                                      export or reexport to Sudan certain                       Applications to export or reexport to
                                              (n) Material Incorporated by Reference                  items that are intended to ensure the                  Sudan complete aircraft and
                                                 (1) The Director of the Federal Register             safety of civil aviation or the safe                   applications to export or reexport to
                                              approved the incorporation by reference                 operation of fixed-wing, commercial                    Sudan aircraft-related items that are
                                              (IBR) of the service information listed in this         passenger aircraft. Such applications
                                              paragraph under 5 U.S.C. 552(a) and 1 CFR
                                                                                                                                                             controlled for anti-terrorism reasons and
                                                                                                      will now be reviewed under a general                   one or more additional reasons (for
                                              part 51.                                                policy of approval rather than a general
                                                 (2) You must use this service information                                                                   example, missile technology reasons)
                                                                                                      policy of denial.                                      will continue to be reviewed under a
                                              as applicable to do the actions required by
                                              this AD, unless the AD specifies otherwise.
                                                                                                         This rule also revises the review                   general policy of denial to all end users.
                                                 (i) Boeing Service Bulletin 767–21–0235,             policy from a general policy of denial to                 This rule also revises the general
                                              dated October 8, 2009.                                  a general policy of approval for                       policy of denial to a general policy of
                                                 (ii) Boeing Service Bulletin 767–21–0235,            applications for licenses to export or                 approval for license applications to
                                              Revision 1, dated July 29, 2011.                        reexport to Sudan certain items for use                export or reexport to Sudan items
                                                 (iii) Boeing Service Bulletin 767–21–0244,           to inspect, design, construct, operate,                controlled on the CCL only for anti-
                                              Revision 1, dated March 8, 2010.                        improve, maintain, repair, overhaul or                 terrorism reasons that will be used to
                                                 (iv) Boeing Alert Service Bulletin 767–              refurbish railroads in Sudan. This rule
                                              21A0245, Revision 2, dated September 27,
                                                                                                                                                             inspect, design, construct, operate,
                                                                                                      does not create any new license                        improve, maintain, repair, overhaul or
                                              2013.                                                   requirements or remove any existing
                                                 (v) Boeing Alert Service Bulletin 767–                                                                      refurbish railroads in Sudan.
                                                                                                      license requirements for exports or                       With respect to both aircraft related-
                                              21A0247, Revision 1, dated April 9, 2013.
                                                 (vi) Boeing Alert Service Bulletin 767–              reexports to Sudan. BIS is making these                items and railroad-related items, the
                                              21A0253, dated October 12, 2012.                        licensing policy changes in connection                 general policies of approval set forth in
                                                 (vii) Boeing Alert Service Bulletin 767–             with ongoing U.S.-Sudan bilateral                      this rule apply only to exports and
                                              21A0254, dated June 7, 2013.                            engagement, and with the aim of                        reexports to Sudan for civil uses by non-
                                                 (viii) Boeing Service Bulletin 767–31–0073,          enhancing the safety of Sudan’s civil                  sensitive end-users within Sudan.
                                              dated October 12, 1995.                                 aviation and improving the country’s                   Sensitive end users, who are not eligible
                                                 (3) For service information identified in            railroads. This action takes into account              for these policies, include Sudan’s
                                              this AD, contact Boeing Commercial                      the United States’ goals to improve
                                              Airplanes, Attention: Contractual & Data
                                                                                                                                                             military, police, and/or intelligence
                                                                                                      regional peace and security.                           services and persons that are owned by
                                              Services (C&DS), 2600 Westminster Blvd.,                   This rule also removes two instances
                                              MC 110–SK57, Seal Beach, CA 90740–5600;                                                                        or are part of or are operated or
                                              telephone: 562–797–1717; Internet: https://
                                                                                                      of ‘‘contract sanctity dates’’ pertaining              controlled by those services.
                                              www.myboeingfleet.com.                                  to the export and reexport of certain                  Additionally, license applications for
                                                 (4) You may view this service information            items to Sudan from the EAR that                       the export or reexport of items that
                                              at the FAA, Transport Airplane Directorate,             currently serve no practical purpose.                  would substantially benefit such
                                              1601 Lind Avenue SW., Renton, WA. For                      BIS is taking these actions in                      sensitive end users will generally be
                                              information on the availability of this                 coordination with the Department of the                denied. To implement these policies,
                                              material at the FAA, call 425–227–1221.                 Treasury’s Office of Foreign Assets                    this rule revises § 742.10(b)(3) of the
sradovich on DSK3GMQ082PROD with RULES




                                                 (5) You may view this service information            Control (OFAC), which is amending the
                                              that is incorporated by reference at the
                                                                                                                                                             EAR, which sets forth exceptions to the
                                                                                                      Sudanese Sanctions Regulations.                        general policies of denial that apply to
                                              National Archives and Records
                                                                                                      DATES: Effective Date: January 17, 2017.               most license applications to export or
                                              Administration (NARA). For information on
                                              the availability of this material at NARA, call         FOR FURTHER INFORMATION CONTACT:                       reexport to Sudan.
                                              202–741–6030, or go to: http://                         Foreign Policy Division, Bureau of                        In conjunction with this rule, the
                                              www.archives.gov/federal-register/cfr/ibr-              Industry and Security, Phone: (202)                    Department of the Treasury’s Office of
                                              locations.html.                                         482–4252.                                              Foreign Assets Control (OFAC) is


                                         VerDate Sep<11>2014   16:30 Jan 13, 2017   Jkt 241001   PO 00000   Frm 00013   Fmt 4700   Sfmt 4700   E:\FR\FM\17JAR1.SGM   17JAR1


                                              4782              Federal Register / Vol. 82, No. 10 / Tuesday, January 17, 2017 / Rules and Regulations

                                              amending the Sudanese Sanctions                         recent contract sanctity date that this                reexports to Sudan. These more
                                              Regulations, 31 CFR part 538, to add a                  rule removes from Supplement No. 2 to                  favorable policies might increase the
                                              new general license that authorizes all                 part 742.                                              number of license applications
                                              transactions prohibited by those                                                                               submitted to BIS because applicants
                                                                                                      Export Administration Act of 1979
                                              regulations and by Executive Orders                                                                            might be more optimistic about
                                              13067 and 13412. Under OFAC’s new                          Although the Export Administration                  obtaining approval. However, the
                                              general license, newly-authorized                       Act of 1979 expired on August 20, 2001,                benefit to license applicants in the form
                                              transactions include the processing of                  the President, through Executive Order                 of greater likelihood of approval justifies
                                              transactions involving persons in                       13222 of August 17, 2001, 3 CFR, 2001                  any additional burden. Send comments
                                              Sudan; the importation of goods and                     Comp., p. 783 (2002), as amended by                    regarding this burden estimate or any
                                              services from Sudan; the exportation of                 Executive Order 13637 of March 8,                      other aspect of this collection of
                                              goods, technology, and services to                      2013, 78 FR 16129 (March 13, 2013),                    information, including suggestions for
                                              Sudan; and transactions involving                       and as extended by the Notice of August                reducing the burden, to Jasmeet K.
                                              property in which the Government of                     4, 2016, 81 FR 52587 (August 8, 2016),                 Seehra, Office of Management and
                                              Sudan has an interest. Persons                          has continued the Export                               Budget, by email at
                                              interested in exporting or reexporting to               Administration Regulations in effect                   jseehra@omb.eop.gov or by fax to (202)
                                              Sudan goods and technology that are                     under the International Emergency                      395–7285 and to Sheila Quarterman at
                                              subject to the EAR, including items                     Economic Powers Act. BIS continues to                  sheila.quarterman@bis.doc.gov.
                                              related to railroads or the safety of civil             carry out the provisions of the Export                    3. This rule does not contain policies
                                              aviation or safe operation of fixed-wing                Administration Act, as appropriate and                 with Federalism implications as that
                                              commercial passenger aircraft, pursuant                 to the extent permitted by law, pursuant               term is defined under Executive Order
                                              to OFAC’s new general license should                    to Executive Order 13222 as amended                    13132.
                                              consult BIS regarding any licensing                     by Executive Order 13637.                                 4. The provisions of the
                                              obligations they may have under the                     Rulemaking Requirements                                Administrative Procedure Act (5 U.S.C.
                                              EAR.                                                                                                           553) requiring notice of proposed
                                                 BIS will continue to evaluate license                   1. Executive Orders 13563 and 12866                 rulemaking and the opportunity for
                                              applications in light of section 6(j) of the            direct agencies to assess all costs and                public participation, and a delay in
                                              Export Administration Act of 1979                       benefits of available regulatory                       effective date, are inapplicable because
                                              (EAA), as continued in effect under the                 alternatives and, if regulation is                     this regulation involves a military or
                                              International Emergency Economic                        necessary, to select regulatory                        foreign affairs function of the United
                                              Powers Act, and any other relevant legal                approaches that maximize net benefits                  States (see 5 U.S.C. 553(a)(1)). BIS is
                                              requirements.                                           (including potential economic,                         making these licensing policy changes
                                                 This rule also removes and reserves                  environmental, public health and safety                in connection with ongoing U.S.-Sudan
                                              paragraphs (c)(6)(iii) and (c)(10)(iii) of              effects, distributive impacts, and                     bilateral engagement, and with the aim
                                              Supplement No. 2 to part 742, which                     equity). Executive Order 13563                         of enhancing the safety of Sudan’s civil
                                              state licensing policy and contract                     emphasizes the importance of                           aviation and improving its railroads.
                                              sanctity dates for aircraft, and                        quantifying both costs and benefits, of                This decision takes into account our
                                              cryptographic and cryptologic                           reducing costs, of harmonizing rules,                  goals to improve regional peace and
                                              equipment, respectively. The licensing                  and of promoting flexibility. This rule                security. A delay in effective date would
                                              policies for these commodities are                      has been determined not to be                          undermine progress in that bilateral
                                              stated in paragraphs (b)(1)(iv) and                     significant for purposes of Executive                  engagement adversely impacting the
                                              (b)(1)(v) of § 742.10 and need not be                   Order 12866.                                           U.S. Government’s foreign policy goals
                                              repeated in Supplement No. 2.                              2. Notwithstanding any other
                                                                                                                                                             of improving regional peace and
                                              Moreover, as a consequence of this rule,                provision of law, no person is required
                                                                                                                                                             security.
                                              which revises licensing policy for                      to respond to, nor shall any person be                    Further, no other law requires that a
                                              certain aircraft-related items and                      subject to a penalty for failure to comply             notice of proposed rulemaking and an
                                              railroad-related items, the latter category             with, a collection of information subject              opportunity for public comment be
                                              potentially including cryptographic and                 to the requirements of the Paperwork                   given for this rule. Because a notice of
                                              cryptologic equipment, paragraphs                       Reduction Act of 1995 (44 U.S.C. 3501                  proposed rulemaking and an
                                              (c)(6)(iii) and (c)(10)(iii)’s statements of            et seq.) (PRA), unless that collection of              opportunity for public comment are not
                                              a general policy of denial for all end-                 information displays a currently valid                 required to be given for this rule under
                                              users in Sudan is no longer accurate.                   Office of Management and Budget                        5 U.S.C. 553, or by any other law, the
                                              Additionally, the recitation of contract                (OMB) control number. This rule                        requirements of the Regulatory
                                              sanctity dates in Supplement No. 2 does                 involves a collection of information                   Flexibility Act (5 U.S.C. 601 et seq.) are
                                              not serve a practical purpose. The term                 approved under OMB control number                      not applicable.
                                              ‘‘contract sanctity date’’ draws on                     0694–0088—Simplified Network
                                              section 6(p) of the EAA. That section                   Application Processing+ System                         List of Subjects in 15 CFR Part 742
                                              constrains BIS’s ability to limit exports               (SNAP+) and the Multipurpose Export                      Exports, Terrorism.
                                              and reexports in performance of                         License Application, which carries an                    For the reasons set forth in the
                                              contracts entered into prior to the date                annual estimated burden of 31,833                      preamble, part 742 of the Export
                                              of imposition of export controls. The                   hours. BIS believes that this rule will                Administration Regulations (15 CFR
                                              references to the contract sanctity dates               have no material impact on that burden.                parts 730–774) is amended as follows:
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                                              in the supplement do not limit or                       To the extent that it has any impact, BIS
                                              otherwise affect the right of any license               believes that the benefits of this rule                PART 742—[AMENDED]
                                              applicant to assert that the provisions of              justify any additional burden it creates.
                                              section 6(p) of the EAA apply to the                    This rule does not impose any new                      ■ 1. The authority citation for 15 CFR
                                              license application that it is submitting.              license requirements; in fact, it creates              part 742 continues to read as follows:
                                              The identified dates are also long                      more favorable license application                       Authority: 50 U.S.C. 4601 et seq.; 50
                                              outdated, with March 21, 2003, the most                 review policies for exports and                        U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;



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                                                                Federal Register / Vol. 82, No. 10 / Tuesday, January 17, 2017 / Rules and Regulations                                                    4783

                                              42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22             license applications pursuant to this                  of the U.S. Department of Justice’s
                                              U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117             paragraph must include with their                      Office of Justice Programs (‘‘OJP’’),
                                              Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,              applications documentation                             publishes this partial final rule to
                                              1978 Comp., p. 179; E.O. 12851, 58 FR 33181,            demonstrating how their proposed                       amend portions of the formula grant
                                              3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
                                              FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
                                                                                                      transaction is consistent with one or                  program (‘‘Formula Grant Program’’)
                                              13026, 61 FR 58767, 3 CFR, 1996 Comp., p.               more of the four situations described in               regulation to reflect changes in OJJDP
                                              228; E.O. 13222, 66 FR 44025, 3 CFR, 2001               this paragraph.                                        policy.
                                              Comp., p. 783; Presidential Determination                  (ii) General policy of approval.                    DATES:  Effective Date: This rule is
                                              2003–23, 68 FR 26459, 3 CFR, 2004 Comp.,                Applications to export or reexport to                  effective February 16, 2017.
                                              p. 320; Notice of August 4, 2016, 81 FR 52587           Sudan the following for civil uses by
                                              (August 8, 2016); Notice of November 8,                                                                        FOR FURTHER INFORMATION CONTACT:
                                                                                                      non-sensitive end-users within Sudan
                                              2016, 81 FR 79379 (November 10, 2016).                                                                         Gregory Thompson, Senior Advisor,
                                                                                                      will be reviewed with a general policy
                                                                                                                                                             Office of Juvenile Justice and
                                              ■ 2. Section 742.10 is amended by:                      of approval.
                                                                                                                                                             Delinquency Prevention, at 202–307–
                                              ■ a. Adding a paragraph heading to                         (A) Parts, components, materials,
                                                                                                                                                             5911.
                                              paragraph (b)(1) introductory text;                     equipment, and technology that are
                                              ■ b. Revising the first sentence of                     controlled on the Commerce Control                     SUPPLEMENTARY INFORMATION:      The OJJDP
                                              paragraph (b)(1)(iv);                                   List (Supp. No. 1 to part 774 of the EAR)              Formula Grant Program is authorized by
                                              ■ c. Adding a paragraph heading to                      only for anti-terrorism reasons that are               the Juvenile Justice and Delinquency
                                              paragraph (b)(2); and                                   intended to ensure the safety of civil                 Prevention Act (‘‘JJDPA’’). The JJDPA
                                              ■ d. Revising paragraph (b)(3).                         aviation or the safe operation of fixed-               authorizes OJJDP to provide an annual
                                                The additions and revisions read as                   wing commercial passenger aircraft.                    grant to each State to improve its
                                              follows:                                                   (B) Items controlled on the Commerce                juvenile justice system and to support
                                              § 742.10   Anti-terrorism: Sudan.                       Control List (Supp. No. 1 to part 774 of               juvenile delinquency prevention
                                                                                                      the EAR) only for anti-terrorism reasons               programs. OJJDP published a notice of
                                              *      *     *      *    *                                                                                     proposed rulemaking on August 8, 2016,
                                                 (b) * * *                                            that will be used to inspect, design,
                                                                                                      construct, operate, improve, maintain,                 81 FR 52377, that proposed to revise the
                                                 (1) General policy of denial. * * *
                                                                                                      repair, overhaul or refurbish railroads in             entirety of the Formula Grant Program
                                              *      *     *      *    *                              Sudan.                                                 regulation.
                                                 (iv) Except as provided in paragraph                                                                          OJJDP is finalizing some, but not all,
                                                                                                         Note to paragraph (b)(3)(ii).
                                              (b)(3)(ii) of this section, all aircraft                                                                       aspects of the proposed rule here. For
                                                                                                      Applications will generally be denied
                                              (powered and unpowered), helicopters,                                                                          several provisions, OJJDP has addressed
                                                                                                      for exports or reexports that would
                                              engines and related spare parts and                                                                            the comments received and is amending
                                                                                                      substantially benefit a sensitive end
                                              components. * * *                                                                                              the current Formula Grant Program
                                                                                                      user. Sensitive end users include
                                              *      *     *      *    *                              Sudan’s military, police, and                          regulation through this partial final rule.
                                                 (2) Military end-user and end-use                    intelligence services and persons that                 For other provisions included in the
                                              policy. * * *                                           are owned by or are part of or operated                proposed rule, OJJDP received
                                                 (3) Other licensing policies. The                    or controlled by those services.                       voluminous comments that will require
                                              licensing policies set forth in this                                                                           additional time for OJJDP to consider
                                              paragraph apply notwithstanding the                     *       *   *     *     *
                                                                                                                                                             them thoughtfully. OJJDP anticipates
                                              provisions of paragraphs (b)(1) and                     Supplement No. 2 to Part 742                           publishing a final rule in the future
                                              (b)(2) of this section.                                 [Amended]                                              addressing the remainder of the
                                                 (i) Case-by-case review policy.                                                                             proposed changes that are not addressed
                                              Applications to export or reexport to                   ■ 3. In Supplement No. 2 to part 742,
                                                                                                                                                             in this partial final rule.
                                              Sudan will be considered on a case-by-                  remove and reserve paragraphs (c)(6)(iii)
                                              case basis in the four situations                       and (c)(10)(iii).                                      I. Executive Summary
                                              described in paragraphs (b)(3)(i)(A)                      Dated: January 4, 2017.                              A. Purpose of the Regulatory Action
                                              through (D) of this section.                            Kevin J. Wolf,
                                                 (A) The transaction involves the                                                                              The JJDPA authorizes annual formula
                                                                                                      Assistant Secretary for Export                         grants to be made to States to improve
                                              reexport to Sudan of items where Sudan                  Administration.
                                              was not the intended ultimate                                                                                  their juvenile justice systems and to
                                                                                                      [FR Doc. 2017–00836 Filed 1–13–17; 8:45 am]
                                              destination at the time of original export                                                                     support juvenile delinquency
                                                                                                      BILLING CODE 3510–33–P                                 prevention programs.1 See 42 U.S.C.
                                              from the United States, provided that
                                              the export from the United States                                                                              5631(a). OJJDP promulgates this rule
                                              occurred prior to the applicable contract                                                                      pursuant to the rulemaking authority
                                              sanctity date.                                          DEPARTMENT OF JUSTICE                                  granted to the OJJDP Administrator (the
                                                 (B) The U.S. content of foreign-                                                                            Administrator) by 42 U.S.C. 5611(b).
                                                                                                      28 CFR Part 31
                                              produced commodities is 20% or less by                                                                         B. Summary of the Major Provisions of
                                              value.                                                  [Docket No.: OJP (OJJDP) 1719]                         the Partial Final Rule
                                                 (C) The commodities are medical
                                                                                                      RIN 1121–AA83                                            This rule amends the Formula Grant
                                              items.
                                                 (D) The items are telecommunications                                                                        Program regulation in the following
                                                                                                      Juvenile Justice and Delinquency                       respects: (1) It replaces 28 CFR
                                              equipment and associated computers,                     Prevention Act Formula Grant Program
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                                              software and technology for civil end                                                                          31.303(f)(6), which provides standards
                                              use, including items useful for the                     AGENCY:  Office of Justice Programs,                   for determining compliance with the
                                              development of civil                                    Department of Justice.
                                                                                                                                                               1 Pursuant to 42 U.S.C. 5603(7), ‘‘the term ‘State’
                                              telecommunications network                              ACTION: Final rule.                                    includes the District of Columbia, the
                                              infrastructure.                                                                                                Commonwealth of Puerto Rico, the Virgin Islands,
                                                 Note to paragraph (b)(3)(i).                         SUMMARY: The Office of Juvenile Justice                Guam, American Samoa, and the Commonwealth of
                                              Applicants seeking approval of their                    and Delinquency Prevention (‘‘OJJDP’’)                 Northern Mariana Islands.’’



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Document Created: 2017-01-14 01:44:37
Document Modified: 2017-01-14 01:44:37
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.
DatesEffective Date: January 17, 2017.
ContactForeign Policy Division, Bureau of Industry and Security, Phone: (202) 482-4252.
FR Citation82 FR 4781 
RIN Number0694-AH10
CFR AssociatedExports and Terrorism

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