83_FR_38168 83 FR 38018 - U.S.-India Major Defense Partners: Implementation Under the Export Administration Regulations of India's Membership in the Wassenaar Arrangement and Addition of India to Country Group A:5

83 FR 38018 - U.S.-India Major Defense Partners: Implementation Under the Export Administration Regulations of India's Membership in the Wassenaar Arrangement and Addition of India to Country Group A:5

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 150 (August 3, 2018)

Page Range38018-38021
FR Document2018-16691

In this rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to formally recognize and implement India's membership in the Wassenaar Arrangement (Wassenaar or WA). Further, BIS removes India from Country Group A:6 and places it in Country Group A:5. This action befits India's status as a Major Defense Partner and recognizes the country's membership in three of the four export control regimes: Missile Technology Control Regime (MTCR), WA and Australia Group (AG). This rule is another in the series of rules that implement reforms to which the United States and India mutually agreed to promote global nonproliferation, expand high technology cooperation and trade, and ultimately facilitate India's full membership in the four multilateral export control regimes (Nuclear Suppliers Group, MTCR, WA, and AG). This rule also makes conforming amendments.

Federal Register, Volume 83 Issue 150 (Friday, August 3, 2018)
[Federal Register Volume 83, Number 150 (Friday, August 3, 2018)]
[Rules and Regulations]
[Pages 38018-38021]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16691]


=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 740, 743, 758 and 772

[Docket No. 180228229-8229-01]
RIN 0694-AH49


U.S.-India Major Defense Partners: Implementation Under the 
Export Administration Regulations of India's Membership in the 
Wassenaar Arrangement and Addition of India to Country Group A:5

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to formally recognize and 
implement India's membership in the Wassenaar Arrangement (Wassenaar or 
WA). Further, BIS removes India from Country Group A:6 and places it in 
Country Group A:5. This action befits India's status as a Major Defense 
Partner and recognizes the country's membership in three of the four 
export control regimes: Missile Technology Control Regime (MTCR), WA 
and Australia Group (AG). This rule is another in the series of rules 
that implement reforms to which the United States and India mutually 
agreed to promote global nonproliferation, expand high technology 
cooperation and trade, and ultimately facilitate India's full 
membership in the four multilateral export control regimes (Nuclear 
Suppliers Group, MTCR, WA, and AG). This rule also makes conforming 
amendments.

DATES: This rule is effective August 3, 2018.

FOR FURTHER INFORMATION CONTACT: Chantal Lakatos, Office of 
Nonproliferation and Treaty Compliance, Bureau of Industry and 
Security, by phone: 202-482-1739 or by email: 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The United States and India continue their commitment to work 
together to strengthen the global nonproliferation and export control 
framework and further transform bilateral export control cooperation to 
recognize the full potential of the global strategic partnership 
between the two countries. This commitment has been realized in the two 
countries' mutually agreed upon

[[Page 38019]]

steps to expand cooperation in civil space, defense, and other high-
technology sectors and the complementary steps of the United States to 
remove India defense and space-related entities from the Entity List, 
realign India in U.S. export control regulations, and support India's 
membership in the four multilateral export control regimes (Nuclear 
Suppliers Group, Missile Technology Control Regime, Wassenaar 
Arrangement and Australia Group).
    To date, with the effective support of the United States, India has 
been admitted to three of the four multilateral export control regimes: 
Missile Technology Control Regime (MTCR) on June 27, 2016, the 
Wassenaar Arrangement (Wassenaar or WA) on December 7, 2017 and the 
Australia Group (AG) on January 19, 2018. These memberships, important 
to the two countries' global strategic partnership, are enhanced by the 
United States' recognition of India as a Major Defense Partner in the 
India-U.S. Joint Statement of June 7, 2016, entitled, ``The United 
States and India: Enduring Global Partners in the 21st Century.'' This 
recognition facilitates and supports India's military modernization 
efforts with the United States as a reliable provider of advanced 
defense articles.
    Therefore, in this rule, the Bureau of Industry and Security (BIS), 
formally recognizes under the Export Administration Regulations (EAR) 
India's membership in the WA multilateral export control regimes and 
revises the EAR accordingly. Further, in this rule, BIS adds India to 
Country Group A:1 in Supplement No. 1 to Part 740 (Country Groups) of 
the EAR to implement under the EAR India's status as a member of the 
WA. In addition, to export control-related benefits for India as a 
result of prior amendments to the EAR in furtherance of the U.S.-India 
global strategic partnership, BIS places India in Country Group A:5, 
which provides the benefit of greater availability of License Exception 
Strategic Trade Authorization (STA) for exports and reexports to, and 
transfers within India under the EAR.
    Countries listed in Country Group A:5 are countries included in STA 
Sec.  740.20(c)(1), which authorizes exports, reexports and in-country 
transfers that are subject to multiple reasons for control. With this 
rule, India becomes the 37th country to join Country Group A:5.

Specific EAR Amendments Recognizing and Implementing India's Membership 
in Wassenaar and Adding India to Country Group A:5

Part 738
    BIS amends Supplement No. 1 to Part 738, Commerce Country Chart, by 
removing the license requirements for National Security Column 2 (NS2) 
reasons. Accordingly, this rule removes the ``X'' in NS Column 2 for 
India.
Part 740
    BIS amends Supplement No. 1 to Part 740 to add, in alphabetical 
order, India to Country Groups A:1 and A:5.
Conforming Amendments
Part 738
    Consistent with India's new multilateral export control regime 
status, this rule also removes the first sentence of footnote 7 to the 
Commerce Country Chart in Supplement No. 1 to Part 738, related to 
India. This amendment removes the requirement that exporters file in 
the Automated Export System when items controlled for Crime Control 
Columns 1 and 3 reasons, and Regional Stability Column 2 reasons were 
destined to India. As a conforming change, this rule removes the word 
``Also'' from the second sentence of footnote 7 and capitalizes the 
``n'' in ``note'' since it begins the sentence.
    Also, as a conforming change in Part 738, BIS amends paragraph 
(b)(3) of Sec.  738.4, related to a sample analysis using the Commerce 
Control List and Country Chart to determine when a license is required, 
to remove the name ``India'' and replace it with the name ``Chad.'' The 
sample analysis used India as an example of a country with NS Column 2 
controls. That reason for control no longer applies to India but 
currently applies to Chad.
Part 740
    In adding India to Country Group A:5, BIS removes India from 
Country Group A:6 to avoid creating conflicting eligibility criteria 
for STA provisions.
Part 743
    As a member of Wassenaar, India now is subject to reporting 
requirements for items controlled under Wassenaar, as set forth in Part 
743, Special Reporting and Notification. Specifically, India is added, 
in alphabetical order, to Supplement No. 1 to Part 743, Wassenaar 
Arrangement Participating States.
Part 758
    Also, consistent with India's achievements and status as a Major 
Defense Partner, BIS removes the requirement that exporters file 
certain Electronic Export Information in AES as set forth in Sec.  
758.1(b)(9). Specifically, this amendment removes the requirement that 
exporters file in AES when items controlled for CC Columns 1 and 3 
reasons and RS Column 2 reasons are destined to India. This reporting 
requirement had been instituted when the license requirement for such 
items was removed (see U.S.-India Bilateral Understanding: Additional 
Revisions to the U.S. Export and Reexport Controls Under the Export 
Administration Regulations; January 23, 2015; 80 FR 3463). BIS has 
determined that this reporting requirement is no longer necessary.
Part 772
    In this rule, BIS also adds India, in alphabetical order, to the 
list of countries under the term Australia Group in Sec.  772.1, 
Definitions of terms as used in the Export Administration Regulations 
(EAR). This updates the definition consistent with formal recognition 
of India's membership in the AG in a BIS final rule, entitled 
``Implementation of the February 2017 Australia Group (AG) 
Intersessional Decisions and June 2017 Plenary Understandings; Addition 
of India to the AG'' (83 FR 13849, April 2, 2018).

Export Administration Act

    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 15, 2017, 82 FR 39005 (August 16, 2017), 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

[[Page 38020]]

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,'' 
although not economically significant, under section 3(f) of Executive 
Order 12866. Accordingly, the rule has been reviewed by the Office of 
Management and Budget (OMB). This rule is not subject to the 
requirements of E.O. 13771 (82 FR 9339, February 3, 2017) because it is 
issued with respect to a national security function of the United 
States.
    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 OMB control number. This rule involves collections 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; 0694-0137--License Exceptions and Exclusions, which carries an 
annual estimated burden of 29,998 hours; and 0694-0122--Miscellaneous 
Licensing Responsibilities and Enforcement which carries an annual 
estimated burden of 104,288 hours. BIS believes that this rule will 
have no significant impact on those burdens. In fact, because India has 
been admitted to the MTCR, Wassenaar and AG multilateral regimes and is 
a Major Defense Partner, it is listed in favored country groups for 
purposes of license requirements, license application review policy and 
availability of license exceptions. Membership in favored country 
groups generally reduces the number of licenses required and increases 
the number of license exceptions available. Therefore, BIS believes 
that this rule will reduce the paperwork burden to the public.
    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.
    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)). This rule implements 
decisions of multilateral export control regimes, of which the United 
States is a supporting member, and the rule furthers the objectives of 
the strategic commitment established between the United States and 
India. Delay in implementing this rule to obtain public comment would 
undermine the foreign policy objectives that the rule is intended to 
implement. 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

15 CFR Part 738 and 772

    Exports.

15 CFR Parts 740, 743 and 758

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

    For the reasons set forth in the preamble, 15 CFR Chapter VII, 
Subchapter C is amended as follows:

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

0
1. The authority citation for part 738 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 15, 2017, 82 FR 39005 (August 
16, 2017).


0
2. Section 738.4 is amended by revising paragraph (b)(3) to read as 
follows:


Sec.  738.4  Determining whether a license is required.

* * * * *
    (b) * * *
    (3) Sample analysis. After consulting the CCL, I determine my item, 
valued at $10,000, is classified under ECCN 2A000.a. I read that the 
entire entry is controlled for national security, and anti-terrorism 
reasons. Because my item is classified under paragraph .a, and not .b, 
I understand that though nuclear nonproliferation controls apply to a 
portion of the entry, they do not apply to my item. I note that the 
appropriate Country Chart column identifiers are NS Column 2 and AT 
Column 1. Turning to the Country Chart, I locate my specific 
destination, Chad, and see that an ``X'' appears in the NS Column 2 
cell for Chad, but not in the AT Column 1 cell. I understand that a 
license is required, unless my transaction qualifies for a License 
Exception. From the License Exception LVS value listed in the entry, I 
know immediately that my proposed transaction exceeds the value 
limitation associated with LVS. Noting that License Exception GBS is 
``Yes'' for this entry, I turn to part 740 of the EAR to review the 
provisions related to use of GBS.

0
3. In Supplement No. 1 to Part 738 revise the entry for India to read 
as follows:

[[Page 38021]]



                                                  Supplement No. 1 to Part 738--Commerce Country Chart
                                                                  [Reason for control]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                           Chemical and       Nuclear        National     Missile    Regional     Firearms   Crime control      Anti-
                                            biological   nonproliferation    security      tech      stability   convention ---------------   terrorism
                                             weapons    --------------------------------------------------------------------               -------------
                Countries                ---------------                                                                      CC   CC   CC
                                           CB   CB   CB    NP 1     NP 2    NS 1   NS 2    MT 1     RS 1   RS 2     FC 1      1    2    3    AT 1   AT 2
                                           1    2    3
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
India \7\...............................   X   ...  ...     X     .......    X    .....      X       X    .....  ..........  ...  ...  ...  .....  .....
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * *
\7\ Note that a license is still required for items controlled under ECCNs 6A003.b.4.b and 9A515.e for RS column 2 reasons when destined to India.

* * * * *

PART 740--LICENSE EXCEPTIONS

0
4. 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 15, 2017, 82 FR 39005 (August 16, 2017).

0
5. In Supplement No. 1 to part 740, in Country Group A, revise the 
entry for ``India'' to read as follows:

                                                      Supplement No. 1 to Part 740--Country Groups
                                                                     Country Group A
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                               [A:1] Wassenaar    [A:2] Missile                       [A:4] Nuclear
                   Country                      participating      technology      [A:3] Australia   suppliers group        [A:5]             [A:6]
                                                 states \1\      control regime         group              \2\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
India.......................................                X                 X                 X   ................                X   ................
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Country Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
\2\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC).

* * * * *

PART 743--SPECIAL REPORTING AND NOTIFICATION

0
6. The authority citation for part 743 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 
16129, 3 CFR, 2014 Comp., p. 223; 78 FR 16129; Notice of August 15, 
2017, 82 FR 39005 (August 16, 2017).

Supplement No. 1 to Part 743 [Amended]

0
7. Supplement No. 1 to part 743--Wassenaar Arrangement Participating 
States is amended by adding ``India'' in alphabetical order after 
``Hungary''.

PART 758--EXPORT CLEARANCE REQUIREMENTS

0
8. The authority citation for part 758 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2017, 82 FR 39005 (August 16, 2017).


Sec.  758.1   [Amended]

0
9. Section 758.1 is amended by removing paragraph (b)(9).

PART 772--DEFINITIONS OF TERMS

0
10. The authority citation for part 772 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 15, 
2017, 82 FR 39005 (August 16, 2017).


Sec.  772.1  [Amended]

0
11. Amend the definition of Australia Group in Sec.  772.1 by adding 
``India'', in alphabetical order, after ``Iceland,''.

    Dated: July 31, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-16691 Filed 8-2-18; 8:45 am]
 BILLING CODE 3510-33-P



                                           38018               Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Rules and Regulations

                                           AEA PA E2 Reading, PA [Amended]                         bearing from the airport and within an 11.3-           DEPARTMENT OF COMMERCE
                                           Reading Regional Airport/Carl A. Spaatz                 mile radius of the airport extending
                                               Field, PA                                           clockwise from the 004° bearing to the 099°            Bureau of Industry and Security
                                             (Lat. 40°22′43″ N, long. 75°57′55″ W)                 bearing from the airport and within 3.5 miles
                                             That airspace extending from the surface              south of the airport east localizer course             15 CFR Parts 738, 740, 743, 758 and
                                           within a 4.8-mile radius of Reading Regional/           extending from the 4.2-mile radius of the              772
                                           Carl A. Spaatz Field. This Class E airspace             airport east to the 099° bearing from the
                                           area is effective during specific dates and             airport.                                               [Docket No. 180228229–8229–01]
                                           times established in advance by a Notice to
                                                                                                   Paragraph 6005 Class E Airspace Areas                  RIN 0694–AH49
                                           Airmen. The effective date and time will
                                           thereafter be continuously published in the             Extending Upward From 700 Feet or More
                                           Chart Supplement.                                       Above the Surface of the Earth.                        U.S.-India Major Defense Partners:
                                                                                                   *      *      *       *       *                        Implementation Under the Export
                                           *      *     *       *      *                                                                                  Administration Regulations of India’s
                                           AEA PA E2 Williamsport, PA [Amended]                    AEA PA E5         Reading, PA [Amended]                Membership in the Wassenaar
                                           Williamsport Regional Airport, PA                         Reading Regional Airport/Carl A. Spaatz              Arrangement and Addition of India to
                                              (Lat. 41°14′30″ N, long. 76°55′19″ W)                     Field, PA                                         Country Group A:5
                                           Williamsport Regional Airport ILS localizer               (Lat. 40°22′43″ N, long. 75°57′55″ W)
                                              (Lat. 41°14′17″ N, long. 76°56′17″ W)                                                                       AGENCY:  Bureau of Industry and
                                                                                                     That airspace extending upward from 700
                                              Within a 4.2-mile radius of Williamsport
                                                                                                                                                          Security, Commerce.
                                                                                                   feet above the surface within a 10.3-mile
                                           Regional Airport. This Class E airspace area            radius of Reading Regional/Carl A. Spaatz              ACTION: Final rule.
                                           is effective during the specific dates and              Field.
                                           times established in advance by a Notice to                                                                    SUMMARY:   In this rule, the Bureau of
                                           Airmen. The effective date and time will                *      *      *       *       *                        Industry and Security (BIS) amends the
                                           thereafter be continuously published in the             AEA PA E5         Williamsport, PA [Amended]           Export Administration Regulations
                                           Chart Supplement.                                                                                              (EAR) to formally recognize and
                                                                                                   Williamsport Regional Airport, PA
                                           Paragraph 6004 Class E Airspace                                                                                implement India’s membership in the
                                                                                                     (Lat. 41°14′30″ N, long. 76°55′19″ W)
                                           Designated as an Extension to a Class D                 Picture Rocks NDB
                                                                                                                                                          Wassenaar Arrangement (Wassenaar or
                                           Surface Area.                                             (Lat. 41°16′37″ N, long. 76°42′36″ W)                WA). Further, BIS removes India from
                                           *      *     *       *      *                           Williamsport Hospital, Point In Space                  Country Group A:6 and places it in
                                                                                                        Coordinates                                       Country Group A:5. This action befits
                                           AEA PA E4 Lancaster, PA [Amended]                                                                              India’s status as a Major Defense Partner
                                                                                                     (Lat. 41°14′43″ N, long. 77°00′04″ W)
                                           Lancaster Airport, PA                                   Williamsport Regional Airport ILS localizer            and recognizes the country’s
                                              (Lat. 40°07′21″ N, long. 76°17′40″ W)                  (Lat. 41°14′17″ N, long. 76°56′17″ W)                membership in three of the four export
                                           Lancaster VORTAC                                                                                               control regimes: Missile Technology
                                              (Lat. 40°07′12″ N, long. 76°17′29″ W)                  That airspace extending upward from 700
                                                                                                   feet above the surface within a 17.9-mile              Control Regime (MTCR), WA and
                                              That airspace extending upward from the                                                                     Australia Group (AG). This rule is
                                           surface within 2.7 miles each side of the               radius of Williamsport Regional Airport
                                                                                                   extending clockwise from the 025° bearing to           another in the series of rules that
                                           Lancaster VORTAC 260° radial extending
                                           from the VORTAC to 7.4 miles west of the                the 067° bearing from the airport, and within          implement reforms to which the United
                                           VORTAC, and within 2.7 miles each side of               a 12.6-mile radius of Williamsport Regional            States and India mutually agreed to
                                           the Lancaster VORTAC 128° radial extending              Airport extending clockwise from the 067°              promote global nonproliferation, expand
                                           from the VORTAC to 7.4 miles southeast of               bearing to a 099° bearing from the airport,            high technology cooperation and trade,
                                           the VORTAC, and within 1.8 miles each side              and within a 6.7-mile radius of Williamsport           and ultimately facilitate India’s full
                                           of the Lancaster VORTAC 055° radial                     Regional Airport extending clockwise from              membership in the four multilateral
                                           extending from the VORTAC to 4.4 miles                  the 099° bearing to the 270° bearing from the          export control regimes (Nuclear
                                           northeast of the VORTAC.                                airport, and within a 17.9-mile radius of              Suppliers Group, MTCR, WA, and AG).
                                           *      *     *       *      *                           Williamsport Regional Airport extending                This rule also makes conforming
                                                                                                   clockwise from the 270° bearing to the 312°            amendments.
                                           AEA PA E4 Reading, PA [Amended]
                                                                                                   bearing from the airport and within a 19.6-
                                           Reading Regional Airport/Carl A. Spaatz                 mile radius of Williamsport Regional Airport           DATES:   This rule is effective August 3,
                                                Field, PA                                          extending clockwise from the 312° bearing to           2018.
                                             (Lat. 40°22′43″ N, long. 75°57′55″ W)                 the 350° bearing from the airport and within           FOR FURTHER INFORMATION CONTACT:
                                             That airspace extending upward from the               a 6.7-mile radius of Williamsport Regional             Chantal Lakatos, Office of
                                           surface within 4 miles either side of the 172°          Airport extending clockwise from the 350°
                                           bearing from Reading Regional/Carl A.
                                                                                                                                                          Nonproliferation and Treaty
                                                                                                   bearing to the 025° bearing from the airport           Compliance, Bureau of Industry and
                                           Spaatz Field extending from the 4.8-mile
                                                                                                   and within 4.4 miles each side of the                  Security, by phone: 202–482–1739 or by
                                           radius of the airport to 10.1 miles south of
                                                                                                   Williamsport Regional Airport ILS localizer            email: Chantal.Lakatos@bis.doc.gov.
                                           the airport.
                                                                                                   east course extending from the Picture Rocks
                                           *      *     *       *      *                                                                                  SUPPLEMENTARY INFORMATION:
                                                                                                   NDB to 11.3 miles east of the NDB; and that
                                           AEA PA E4 Williamsport, PA [Amended]                    airspace within a 6-mile radius of the point           Background
                                           Williamsport Regional Airport, PA                       in space (Lat. 41°14′43″ N, long. 77°00′04″ W)
                                                                                                   serving Williamsport Hospital.                            The United States and India continue
                                             (Lat. 41°14′30″ N, long. 76°55′19″ W)                                                                        their commitment to work together to
                                           Williamsport Regional Airport ILS localizer               Issued in College Park, Georgia, on July 26,         strengthen the global nonproliferation
                                             (Lat. 41°14′17″ N, long. 76°56′17″ W)                 2018.                                                  and export control framework and
amozie on DSK3GDR082PROD with RULES




                                             That airspace extending upward from the               Shawn Reddinger,                                       further transform bilateral export
                                           surface from the 4.2-mile radius of
                                           Williamsport Regional Airport extending
                                                                                                   Acting Manager, Operations Support Group,              control cooperation to recognize the full
                                                                                                   Eastern Service Center, Air Traffic                    potential of the global strategic
                                           clockwise from a 270° bearing to the 312°
                                                                                                   Organization.                                          partnership between the two countries.
                                           bearing from the airport and within an 11.3-
                                           mile radius of the airport extending                    [FR Doc. 2018–16607 Filed 8–2–18; 8:45 am]             This commitment has been realized in
                                           clockwise from the 312° bearing to the 350°             BILLING CODE 4910–13–P                                 the two countries’ mutually agreed upon


                                      VerDate Sep<11>2014   23:08 Aug 02, 2018   Jkt 244001   PO 00000   Frm 00008    Fmt 4700   Sfmt 4700   E:\FR\FM\03AUR1.SGM   03AUR1


                                                               Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Rules and Regulations                                       38019

                                           steps to expand cooperation in civil                    Specific EAR Amendments Recognizing                   Part 758
                                           space, defense, and other high-                         and Implementing India’s Membership                     Also, consistent with India’s
                                           technology sectors and the                              in Wassenaar and Adding India to                      achievements and status as a Major
                                           complementary steps of the United                       Country Group A:5                                     Defense Partner, BIS removes the
                                           States to remove India defense and                      Part 738                                              requirement that exporters file certain
                                           space-related entities from the Entity                                                                        Electronic Export Information in AES as
                                           List, realign India in U.S. export control                BIS amends Supplement No. 1 to Part                 set forth in § 758.1(b)(9). Specifically,
                                           regulations, and support India’s                        738, Commerce Country Chart, by                       this amendment removes the
                                           membership in the four multilateral                     removing the license requirements for                 requirement that exporters file in AES
                                           export control regimes (Nuclear                         National Security Column 2 (NS2)                      when items controlled for CC Columns
                                           Suppliers Group, Missile Technology                     reasons. Accordingly, this rule removes               1 and 3 reasons and RS Column 2
                                           Control Regime, Wassenaar                               the ‘‘X’’ in NS Column 2 for India.                   reasons are destined to India. This
                                           Arrangement and Australia Group).                                                                             reporting requirement had been
                                                                                                   Part 740                                              instituted when the license requirement
                                             To date, with the effective support of                                                                      for such items was removed (see U.S.-
                                           the United States, India has been                         BIS amends Supplement No. 1 to Part
                                                                                                   740 to add, in alphabetical order, India              India Bilateral Understanding:
                                           admitted to three of the four multilateral                                                                    Additional Revisions to the U.S. Export
                                           export control regimes: Missile                         to Country Groups A:1 and A:5.
                                                                                                                                                         and Reexport Controls Under the Export
                                           Technology Control Regime (MTCR) on                     Conforming Amendments                                 Administration Regulations; January 23,
                                           June 27, 2016, the Wassenaar                                                                                  2015; 80 FR 3463). BIS has determined
                                           Arrangement (Wassenaar or WA) on                        Part 738
                                                                                                                                                         that this reporting requirement is no
                                           December 7, 2017 and the Australia                         Consistent with India’s new                        longer necessary.
                                           Group (AG) on January 19, 2018. These                   multilateral export control regime                    Part 772
                                           memberships, important to the two                       status, this rule also removes the first
                                           countries’ global strategic partnership,                sentence of footnote 7 to the Commerce                   In this rule, BIS also adds India, in
                                           are enhanced by the United States’                      Country Chart in Supplement No. 1 to                  alphabetical order, to the list of
                                           recognition of India as a Major Defense                 Part 738, related to India. This                      countries under the term Australia
                                           Partner in the India-U.S. Joint Statement               amendment removes the requirement                     Group in § 772.1, Definitions of terms as
                                                                                                   that exporters file in the Automated                  used in the Export Administration
                                           of June 7, 2016, entitled, ‘‘The United
                                                                                                                                                         Regulations (EAR). This updates the
                                           States and India: Enduring Global                       Export System when items controlled
                                                                                                                                                         definition consistent with formal
                                           Partners in the 21st Century.’’ This                    for Crime Control Columns 1 and 3
                                                                                                                                                         recognition of India’s membership in
                                           recognition facilitates and supports                    reasons, and Regional Stability Column
                                                                                                                                                         the AG in a BIS final rule, entitled
                                           India’s military modernization efforts                  2 reasons were destined to India. As a
                                                                                                                                                         ‘‘Implementation of the February 2017
                                           with the United States as a reliable                    conforming change, this rule removes
                                                                                                                                                         Australia Group (AG) Intersessional
                                           provider of advanced defense articles.                  the word ‘‘Also’’ from the second
                                                                                                                                                         Decisions and June 2017 Plenary
                                                                                                   sentence of footnote 7 and capitalizes
                                             Therefore, in this rule, the Bureau of                                                                      Understandings; Addition of India to
                                                                                                   the ‘‘n’’ in ‘‘note’’ since it begins the
                                           Industry and Security (BIS), formally                                                                         the AG’’ (83 FR 13849, April 2, 2018).
                                                                                                   sentence.
                                           recognizes under the Export                                                                                   Export Administration Act
                                           Administration Regulations (EAR)                           Also, as a conforming change in Part
                                                                                                   738, BIS amends paragraph (b)(3) of                     Although the Export Administration
                                           India’s membership in the WA
                                                                                                   § 738.4, related to a sample analysis                 Act of 1979 expired on August 20, 2001,
                                           multilateral export control regimes and
                                                                                                   using the Commerce Control List and                   the President, through Executive Order
                                           revises the EAR accordingly. Further, in                                                                      13222 of August 17, 2001, 3 CFR, 2001
                                                                                                   Country Chart to determine when a
                                           this rule, BIS adds India to Country                    license is required, to remove the name               Comp., p. 783 (2002), as amended by
                                           Group A:1 in Supplement No. 1 to Part                   ‘‘India’’ and replace it with the name                Executive Order 13637 of March 8,
                                           740 (Country Groups) of the EAR to                      ‘‘Chad.’’ The sample analysis used India              2013, 78 FR 16129 (March 13, 2013) and
                                           implement under the EAR India’s status                  as an example of a country with NS                    as extended by the Notice of August 15,
                                           as a member of the WA. In addition, to                  Column 2 controls. That reason for                    2017, 82 FR 39005 (August 16, 2017),
                                           export control-related benefits for India               control no longer applies to India but                has continued the Export
                                           as a result of prior amendments to the                  currently applies to Chad.                            Administration Regulations in effect
                                           EAR in furtherance of the U.S.-India                                                                          under the International Emergency
                                           global strategic partnership, BIS places                Part 740                                              Economic Powers Act. BIS continues to
                                           India in Country Group A:5, which                                                                             carry out the provisions of the Export
                                                                                                      In adding India to Country Group A:5,
                                           provides the benefit of greater                                                                               Administration Act of 1979, as
                                                                                                   BIS removes India from Country Group
                                           availability of License Exception                                                                             appropriate and to the extent permitted
                                                                                                   A:6 to avoid creating conflicting
                                           Strategic Trade Authorization (STA) for                                                                       by law, pursuant to Executive Order
                                                                                                   eligibility criteria for STA provisions.
                                           exports and reexports to, and transfers                                                                       13222, as amended by Executive Order
                                           within India under the EAR.                             Part 743                                              13637.
                                             Countries listed in Country Group A:5                    As a member of Wassenaar, India now                Rulemaking Requirements
                                           are countries included in STA                           is subject to reporting requirements for                 1. Executive Orders 13563 and 12866
                                           § 740.20(c)(1), which authorizes exports,               items controlled under Wassenaar, as                  direct agencies to assess all costs and
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                                           reexports and in-country transfers that                 set forth in Part 743, Special Reporting              benefits of available regulatory
                                           are subject to multiple reasons for                     and Notification. Specifically, India is              alternatives and, if regulation is
                                           control. With this rule, India becomes                  added, in alphabetical order, to                      necessary, to select regulatory
                                           the 37th country to join Country Group                  Supplement No. 1 to Part 743,                         approaches that maximize net benefits
                                           A:5.                                                    Wassenaar Arrangement Participating                   (including potential economic,
                                                                                                   States.                                               environmental, public health and safety


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                                           38020               Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Rules and Regulations

                                           effects, distributive impacts, and                      will reduce the paperwork burden to the               PART 738—COMMERCE CONTROL
                                           equity). Executive Order 13563                          public.                                               LIST OVERVIEW AND THE COUNTRY
                                           emphasizes the importance of                               Send comments regarding this burden                CHART
                                           quantifying both costs and benefits, of                 estimate or any other aspect of this
                                           reducing costs, of harmonizing rules,                   collection of information, including                  ■ 1. The authority citation for part 738
                                           and of promoting flexibility. This rule                 suggestions for reducing the burden, to               continues to read as follows:
                                           has been designated a ‘‘significant                     Jasmeet K. Seehra, Office of
                                                                                                                                                            Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                           regulatory action,’’ although not                       Management and Budget, by email at                    1701 et seq.; 10 U.S.C. 7420; 10 U.S.C.
                                           economically significant, under section                 jseehra@omb.eop.gov or by fax to (202)                7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et
                                           3(f) of Executive Order 12866.                          395–7285.                                             seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15
                                           Accordingly, the rule has been reviewed                    3. This rule does not contain policies             U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201
                                           by the Office of Management and                         with Federalism implications as that                  et seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR
                                           Budget (OMB). This rule is not subject                  term is defined under Executive Order                 58767, 3 CFR, 1996 Comp., p. 228; E.O.
                                           to the requirements of E.O. 13771 (82 FR                13132.                                                13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
                                           9339, February 3, 2017) because it is                      4. The provisions of the                           783; Notice of August 15, 2017, 82 FR 39005
                                                                                                   Administrative Procedure Act (5 U.S.C.                (August 16, 2017).
                                           issued with respect to a national
                                           security function of the United States.                 553) requiring notice of proposed
                                                                                                   rulemaking and the opportunity for                    ■ 2. Section 738.4 is amended by
                                              2. Notwithstanding any other                         public participation, and a delay in                  revising paragraph (b)(3) to read as
                                           provision of law, no person is required                 effective date, are inapplicable because              follows:
                                           to respond to, nor shall any person be                  this regulation involves a military or                § 738.4 Determining whether a license is
                                           subject to a penalty for failure to comply              foreign affairs function of the United                required.
                                           with, a collection of information subject               States (see 5 U.S.C. 553(a)(1)). This rule
                                           to the requirements of the Paperwork                                                                          *      *    *     *     *
                                                                                                   implements decisions of multilateral
                                           Reduction Act of 1995 (44 U.S.C. 3501                   export control regimes, of which the                     (b) * * *
                                           et seq.) (PRA), unless that collection of               United States is a supporting member,                    (3) Sample analysis. After consulting
                                           information displays a currently valid                  and the rule furthers the objectives of               the CCL, I determine my item, valued at
                                           OMB control number. This rule involves                  the strategic commitment established                  $10,000, is classified under ECCN
                                           collections of information approved                     between the United States and India.                  2A000.a. I read that the entire entry is
                                           under OMB control number 0694–0088-                     Delay in implementing this rule to                    controlled for national security, and
                                           Simplified Network Application                          obtain public comment would                           anti-terrorism reasons. Because my item
                                           Processing+ System (SNAP+) and the                      undermine the foreign policy objectives               is classified under paragraph .a, and not
                                           Multipurpose Export License                             that the rule is intended to implement.               .b, I understand that though nuclear
                                           Application, which carries an annual                    Further, no other law requires that a                 nonproliferation controls apply to a
                                           estimated burden of 31,833 hours;                       notice of proposed rulemaking and an                  portion of the entry, they do not apply
                                           0694–0137—License Exceptions and                        opportunity for public comment be                     to my item. I note that the appropriate
                                           Exclusions, which carries an annual                     given for this rule. Because a notice of              Country Chart column identifiers are NS
                                           estimated burden of 29,998 hours; and                   proposed rulemaking and an                            Column 2 and AT Column 1. Turning to
                                           0694–0122—Miscellaneous Licensing                       opportunity for public comment are not                the Country Chart, I locate my specific
                                           Responsibilities and Enforcement which                  required to be given for this rule under              destination, Chad, and see that an ‘‘X’’
                                           carries an annual estimated burden of                   5 U.S.C. 553, or by any other law, the                appears in the NS Column 2 cell for
                                           104,288 hours. BIS believes that this                   requirements of the Regulatory                        Chad, but not in the AT Column 1 cell.
                                           rule will have no significant impact on                 Flexibility Act (5 U.S.C. 601 et seq.) are            I understand that a license is required,
                                           those burdens. In fact, because India has               not applicable.                                       unless my transaction qualifies for a
                                           been admitted to the MTCR, Wassenaar                                                                          License Exception. From the License
                                                                                                   List of Subjects
                                           and AG multilateral regimes and is a                                                                          Exception LVS value listed in the entry,
                                           Major Defense Partner, it is listed in                  15 CFR Part 738 and 772                               I know immediately that my proposed
                                           favored country groups for purposes of                    Exports.                                            transaction exceeds the value limitation
                                           license requirements, license                                                                                 associated with LVS. Noting that
                                                                                                   15 CFR Parts 740, 743 and 758                         License Exception GBS is ‘‘Yes’’ for this
                                           application review policy and
                                           availability of license exceptions.                       Administrative practice and                         entry, I turn to part 740 of the EAR to
                                           Membership in favored country groups                    procedure, Exports, Reporting and                     review the provisions related to use of
                                           generally reduces the number of                         recordkeeping requirements.                           GBS.
                                           licenses required and increases the                       For the reasons set forth in the                    ■ 3. In Supplement No. 1 to Part 738
                                           number of license exceptions available.                 preamble, 15 CFR Chapter VII,                         revise the entry for India to read as
                                           Therefore, BIS believes that this rule                  Subchapter C is amended as follows:                   follows:
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                                                                             Federal Register / Vol. 83, No. 150 / Friday, August 3, 2018 / Rules and Regulations                                                                                                                        38021

                                                                                                      SUPPLEMENT NO. 1 TO PART 738—COMMERCE COUNTRY CHART
                                                                                                                                                      [Reason for control]

                                                                                                                        Chemical                Nuclear                   National         Missile         Regional            Firearms                      Crime                      Anti-ter-
                                                                                                                           and                nonprolifera-               security          tech           stability           conven-                       control                     rorism
                                                                                                                        biological                tion                                                                            tion
                                                                      Countries                                         weapons
                                                                                                                                                                                                                                                    CC        CC           CC
                                                                                                                                                                      NS 1     NS 2         MT 1          RS 1     RS 2                                                             AT 1       AT 2
                                                                                                                    CB      CB           CB   NP 1       NP 2                                                                         FC 1           1         2            3
                                                                                                                     1       2            3


                                                                       *                                 *                              *                             *                          *                               *                                     *
                                           India 7 .............................................................    X       ......   ......    X         ..........       X    ........      X             X       ........    ................     ......    ......       ......   ........   ........

                                                                         *                               *                                *                           *                          *                                *                                    *
                                               * * * * *
                                               7 Note that a license is still required for items controlled under ECCNs 6A003.b.4.b and 9A515.e for RS column 2 reasons when destined to India.




                                           *          *          *           *         *                                          Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.                                 ■  5. In Supplement No. 1 to part 740, in
                                                                                                                                1701 et seq.; 22 U.S.C. 7201 et seq.; E.O.                                     Country Group A, revise the entry for
                                           PART 740—LICENSE EXCEPTIONS                                                          13026, 61 FR 58767, 3 CFR, 1996 Comp., p.                                      ‘‘India’’ to read as follows:
                                                                                                                                228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
                                           ■ 4. The authority citation for part 740                                             Comp., p. 783; Notice of August 15, 2017, 82
                                           continues to read as follows:                                                        FR 39005 (August 16, 2017).

                                                                                                                   SUPPLEMENT NO. 1 TO PART 740—COUNTRY GROUPS
                                                                                                                                 COUNTRY GROUP A
                                                                                                                                                 [A:2]
                                                                                                                   [A:1]                        Missile                        [A:3]                        [A:4]
                                                                                                               Wassenaar                                                                                   Nuclear
                                                                  Country                                                                     technology                      Australia                                                           [A:5]                             [A:6]
                                                                                                               participating                    control                        group                      suppliers
                                                                                                                 states 1                       regime                                                     group 2


                                                       *                                *                                            *                                *                               *                                   *                                         *
                                           India ..............................................                         X                            X                             X                 ..........................                    X                       ..........................

                                                           *                                    *                                    *                                *                               *                                   *                                         *
                                               1 Country        Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
                                               2 Country        Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People’s Republic of China (PRC).


                                           *          *          *           *         *                                        § 758.1       [Amended]                                                        DEPARTMENT OF COMMERCE
                                           PART 743—SPECIAL REPORTING AND                                                       ■ 9. Section 758.1 is amended by                                               Bureau of Industry and Security
                                           NOTIFICATION                                                                         removing paragraph (b)(9).
                                                                                                                                                                                                               15 CFR Part 740
                                           ■ 6. The authority citation for part 743                                             PART 772—DEFINITIONS OF TERMS
                                           continues to read as follows:                                                                                                                                       [Docket No. 180228230–8230–01]
                                             Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.                                       ■ 10. The authority citation for part 772                                      RIN 0694–AH52
                                           1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR,                                        continues to read as follows:
                                           2001 Comp., p. 783; E.O. 13637, 78 FR 16129,                                                                                                                        Revision of Export and Reexport
                                                                                                                                  Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                           3 CFR, 2014 Comp., p. 223; 78 FR 16129;                                                                                                                             License Requirements for Republic of
                                           Notice of August 15, 2017, 82 FR 39005                                               1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR,
                                                                                                                                                                                                               South Sudan Under the Export
                                           (August 16, 2017).                                                                   2001 Comp., p. 783; Notice of August 15,
                                                                                                                                                                                                               Administration Regulations
                                                                                                                                2017, 82 FR 39005 (August 16, 2017).
                                           Supplement No. 1 to Part 743                                                                                                                                        AGENCY:  Bureau of Industry and
                                           [Amended]                                                                            § 772.1       [Amended]                                                        Security, Commerce.
                                           ■ 7. Supplement No. 1 to part 743—                                                   ■ 11. Amend the definition of Australia                                        ACTION: Final rule.
                                           Wassenaar Arrangement Participating                                                  Group in § 772.1 by adding ‘‘India’’, in                                       SUMMARY:   In this rule, the Bureau of
                                           States is amended by adding ‘‘India’’ in                                             alphabetical order, after ‘‘Iceland,’’.                                        Industry and Security (BIS) is amending
                                           alphabetical order after ‘‘Hungary’’.
                                                                                                                                  Dated: July 31, 2018.                                                        the Export Administration Regulations
                                           PART 758—EXPORT CLEARANCE                                                            Richard E. Ashooh,                                                             (EAR) to conform to the Department of
                                           REQUIREMENTS                                                                                                                                                        State’s (State) amendment of February
                                                                                                                                Assistant Secretary for Export
                                                                                                                                                                                                               14, 2018 to the International Traffic in
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                                                                                                                                Administration.
                                           ■ 8. The authority citation for part 758                                                                                                                            Arms Regulations (ITAR) that placed
                                                                                                                                [FR Doc. 2018–16691 Filed 8–2–18; 8:45 am]
                                           continues to read as follows:                                                                                                                                       restrictions on exports of defense
                                                                                                                                BILLING CODE 3510–33–P                                                         articles (and defense services) to the
                                             Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
                                           1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR,                                                                                                                       Republic of South Sudan (South Sudan).
                                           2001 Comp., p. 783; Notice of August 15,                                                                                                                            The State action reflected a policy
                                           2017, 82 FR 39005 (August 16, 2017).                                                                                                                                determination by the Secretary of State


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Document Created: 2018-11-06 10:35:40
Document Modified: 2018-11-06 10:35:40
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 August 3, 2018.
ContactChantal Lakatos, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, by phone: 202-482-1739 or by email: [email protected]
FR Citation83 FR 38018 
RIN Number0694-AH49
CFR Citation15 CFR 738
15 CFR 740
15 CFR 743
15 CFR 758
15 CFR 772
CFR AssociatedExports; Administrative Practice and Procedure and Reporting and Recordkeeping Requirements

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