Rule2021-12125
Export Administration Regulations: Termination of United Arab Emirates Participation in the Arab League Boycott of Israel
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 9, 2021
Effective
June 8, 2021
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, the Bureau of Industry and Security (BIS) amends the Export Administration Regulations (EAR) to reflect the formal termination by the United Arab Emirates (UAE) of its participation in the Arab League Boycott of Israel. Specifically, in recognition of the UAE's August 16, 2020 issuance of Federal Decree-Law No. 4 of 2020, certain requests for information, action or agreement from the UAE, which were presumed to be boycott-related if made prior to August 16, 2020, would not be presumed to be boycott-related if made following that date, and thus would not be prohibited or reportable under the EAR. Accordingly, BIS adds an interpretation to the Restrictive Trade Practices or Boycotts regulations of the EAR, which sets forth BIS's view that the prohibitions and reporting requirements contained in the EAR's antiboycott provisions do not apply to such requests from the UAE made after August 16, 2020.
Full Text
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<title>Federal Register, Volume 86 Issue 109 (Wednesday, June 9, 2021)</title>
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[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Rules and Regulations]
[Pages 30535-30537]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-12125]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 760
[Docket No. 210528-0118]
RIN 0694-AI48
Export Administration Regulations: Termination of United Arab
Emirates Participation in the Arab League Boycott of Israel
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
amends the Export Administration Regulations (EAR) to reflect the
formal termination by the United Arab Emirates (UAE) of its
participation in the Arab League Boycott of Israel. Specifically, in
recognition of the UAE's August 16, 2020 issuance of Federal Decree-Law
No. 4 of 2020, certain requests for information, action or agreement
from the UAE, which were presumed to be boycott-related if made prior
to August 16, 2020, would not be presumed to be boycott-related if made
following that date, and thus would not be prohibited or reportable
under the EAR. Accordingly, BIS adds an interpretation to the
Restrictive Trade Practices or Boycotts regulations of the EAR, which
sets forth BIS's view that the prohibitions and reporting requirements
contained in the EAR's antiboycott provisions do not apply to such
requests from the UAE made after August 16, 2020.
DATES: This rule is effective June 8, 2021.
FOR FURTHER INFORMATION CONTACT: Cathleen Ryan, Director, Office of
Antiboycott Compliance, Bureau of Industry and Security, U.S.
Department of Commerce, by email at <a href="/cdn-cgi/l/email-protection#4609070568112324173323342f233506242f356822292568212930"><span class="__cf_email__" data-cfemail="abe4eae885fccec9fadeced9c2ced8ebc9c2d885cfc4c885ccc4dd">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#3877797b7176696d716a717d6b785a514b165c575b165f574e"><span class="__cf_email__" data-cfemail="8bc4cac8c2c5dadec2d9c2ced8cbe9e2f8a5efe4e8a5ece4fd">[email protected]</span></a>, or by phone at 202-482-2381.
SUPPLEMENTARY INFORMATION:
Background
The Office of Antiboycott Compliance (OAC) administers and enforces
the antiboycott provisions set forth in part 760 (Restrictive Trade
Practices and Boycotts) of the Export Administration
[[Page 30536]]
Regulations (EAR) (15 CFR parts 730 through 774). These antiboycott
provisions discourage, and in certain circumstances prohibit, United
States persons from taking specific actions in furtherance or support
of an unsanctioned foreign boycott by a country against a country
friendly to the United States, including complying with certain
requests to provide information about business relationships with a
boycotted country or with blacklisted persons or to refuse to do
business with certain persons for boycott-related reasons. Pursuant to
part 760 of the EAR, the receipt of such requests may be reportable to
OAC.
In connection with an agreement between the United Arab Emirates
(UAE) and Israel establishing full diplomatic and commercial relations
and normalization (the ``Abraham Accords''), on August 16, 2020, the
UAE issued Federal Decree-Law No. 4 of 2020, which repealed Federal Law
No. 15 of 1972 Concerning the Arab League Boycott of Israel (``August
16, 2020 decree''), thereby formally ending the UAE's participation in
the Arab League Boycott of Israel.
In this final rule, the Bureau of Industry and Security (BIS)
amends part 760 of the EAR to add an Interpretation that reflects the
UAE's formal termination (through the issuance of the August 16, 2020
decree) of its participation in the Arab League Boycott of Israel. In
making this amendment, BIS has also taken into account actions that the
UAE Government has undertaken to implement, in policy and practice, the
August 16, 2020 decree. As set forth in this Interpretation, which will
appear as new Supplement No. 17 to part 760 of the EAR, certain
requests for information, action or agreement from the UAE that were
presumed to be boycott-related prior to August 16, 2020 would not be
presumed to be boycott-related if issued after August 16, 2020, and
thus would not be subject to the prohibitions or reporting requirements
of part 760 of the EAR. Further, the Interpretation reminds United
States persons that requests that are on their face boycott-related or
that are for action obviously in furtherance or support of an
unsanctioned foreign boycott are subject to part 760 of the EAR,
irrespective of the country of origination.
Export Control Reform Act of 2018
On August 13, 2018, President Donald J. Trump signed into law the
John S. McCain National Defense Authorization Act for Fiscal Year 2019,
which included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C.
4801-4852). Part II of ECRA contains the Anti-Boycott Act of 2018. ECRA
provides the legal basis for BIS's principal authorities and serves as
the authority under which BIS issues this rule.
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, distribute 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 final rule has been designated as not significant for
purposes of Executive Order 12866.
2. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
3. Pursuant to section 1762 of the Export Control Reform Act of
2018 (50 U.S.C. 4821), this action is exempt from the Administrative
Procedure Act (5 U.S.C. 553) requirements for notice of proposed
rulemaking, opportunity for public participation, and delay in
effective date.
4. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable. This rule
reflects a policy development involving the United Arab Emirates that
advances the U.S. Government's foreign policy and national security.
Accordingly, no regulatory flexibility analysis is required, and none
has been prepared.
5. Notwithstanding any other provision of law, no person may be
required to respond to or 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.), unless that
collection of information displays a currently valid Office of
Management and Budget (OMB) Control Number. This regulation involves a
collection currently approved by OMB under control number 0694-0012,
Report of Requests for Restrictive Trade Practice or Boycott--Single or
Multiple Transactions. The collection carries a burden estimate of 60
to 90 minutes for a manual or electronic submission for a total burden
estimate of 482 hours. BIS expects the burden hours associated with
this collection to decrease with the publication of this rule.
List of Subjects in 15 CFR Part 760
Exports, Reporting and recordkeeping requirements, Trade practices.
Accordingly, part 760 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 760--RESTRICTIVE TRADE PRACTICES OR BOYCOTTS
0
1. The authority citation for part 760 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 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.
0
2. Add supplement no. 17 to part 760 to read as follows:
Supplement No. 17 to Part 760--Interpretation
Pursuant to the agreement between the United Arab Emirates (UAE)
and Israel establishing diplomatic and commercial relations (the
``Abraham Accords''), on August 16, 2020, the UAE issued Federal
Decree-Law No. 4 of 2020, abolishing Federal Law No. 15 of 1972
Concerning the Arab League Boycott of Israel, thereby formally
terminating participation by the UAE in the Arab League Boycott of
Israel as of that date.
On the basis of this action, it is the Department's position that
certain requests for information, action or agreement from the UAE,
which were presumed to be boycott-related under this part of the EAR if
issued prior to August 16, 2020, would not be presumed to be boycott-
related if issued after August 16, 2020, and thus would not be
prohibited or reportable under this part of the EAR.
For example, a request from the UAE that an exporter certify that
the vessel on which it is shipping its goods is eligible to enter UAE
ports was formerly presumed to be a boycott-related request under this
part of the EAR with which the exporter could not comply because the
UAE had a boycott law in force against Israel. Such a request from the
UAE made after August 16, 2020, would no longer be presumed to be
boycott-related because the underlying boycott requirement/basis for
the certification was eliminated as of August 16, 2020. Similarly, a
U.S. company would not be prohibited from complying with a request made
by UAE government officials after August 16, 2020, to furnish the place
of birth of employees the company is seeking to take to the UAE because
there is no underlying
[[Page 30537]]
UAE government boycott law or policy that would give rise to a
presumption that the request was boycott-related.
U.S. persons are reminded that requests that are on their face
boycott-related or that are for action obviously in furtherance or
support of an unsanctioned foreign boycott are subject to this part of
the EAR, irrespective of the country of origination. For example,
requests containing references to ``blacklisted companies,'' ``Israel
boycott list,'' ``non-Israeli goods,'' or other phrases or words
indicating a boycott purpose would be subject to the appropriate
provisions of the Department's antiboycott regulations in this part.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-12125 Filed 6-7-21; 4:15 pm]
BILLING CODE 3510-33-P
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