Rule2022-05025
Addition to the List of Countries Excluded From Certain License Requirements Under the Export Administration Regulations (EAR)
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Published
March 10, 2022
Effective
March 4, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In response to the Russian Federation's (Russia's) further invasion of Ukraine, and to protect U.S. national security and foreign policy interests, the Department of Commerce has added new and highly restrictive license requirements and policies for certain transactions involving Russia and Belarus under the Export Administration Regulations (EAR). In order to recognize partner countries that have committed to implementing substantially similar new export controls on Russia and Belarus in their domestic laws, the Department of Commerce has published a list of countries excluded from portions of these new U.S. export controls. These exclusions apply specifically to certain requirements under the EAR related to foreign-produced items. In this rule, the Department of Commerce adds the Republic of Korea (South Korea) to the list of excluded countries.
Full Text
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<title>Federal Register, Volume 87 Issue 47 (Thursday, March 10, 2022)</title>
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[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
[Rules and Regulations]
[Pages 13627-13628]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-05025]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules
and Regulations
[[Page 13627]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 746
[Docket No. 220304-0069]
RIN 0694-AI77
Addition to the List of Countries Excluded From Certain License
Requirements Under the Export Administration Regulations (EAR)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In response to the Russian Federation's (Russia's) further
invasion of Ukraine, and to protect U.S. national security and foreign
policy interests, the Department of Commerce has added new and highly
restrictive license requirements and policies for certain transactions
involving Russia and Belarus under the Export Administration
Regulations (EAR). In order to recognize partner countries that have
committed to implementing substantially similar new export controls on
Russia and Belarus in their domestic laws, the Department of Commerce
has published a list of countries excluded from portions of these new
U.S. export controls. These exclusions apply specifically to certain
requirements under the EAR related to foreign-produced items. In this
rule, the Department of Commerce adds the Republic of Korea (South
Korea) to the list of excluded countries.
DATES: This rule is effective March 4, 2022.
FOR FURTHER INFORMATION CONTACT: For questions on this final rule,
contact Eileen Albanese, Director, Office of National Security and
Technology Transfer Controls, Bureau of Industry and Security,
Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355,
Email: <a href="/cdn-cgi/l/email-protection#790b091d4b391b100a571d161a571e160f"><span class="__cf_email__" data-cfemail="720002164032101b015c161d115c151d04">[email protected]</span></a>. For emails, include ``Russia'' in the subject
line.
SUPPLEMENTARY INFORMATION:
Background
Effective February 24, 2022, in response to Russia's further
invasion of Ukraine, the Department of Commerce's Bureau of Industry
and Security (BIS) added new Russia license requirements and policies
to the Export Administration Regulations (EAR) to protect U.S. national
security and foreign policy interests. See 87 FR 12226 (March 3, 2022)
(Russia Sanctions rule). These new Russia license requirements included
new Commerce Control List (CCL)-based license requirements involving
exports, reexports, and transfer (in-country) transactions and two new
foreign ``direct product'' rules (FDP rules) specific to Russia and to
Russian `military end users.' A subsequent rule, effective March 2,
2022, extended these license requirements to export, reexport, and
transfer (in-country) transactions involving Belarus, as a result of
Belarus's substantial enabling of Russia's invasion of Ukraine (Belarus
Sanctions rule).\1\ Both of these rules included a savings clause
specific to items controlled by the two FDP rules, stating that such
items en route aboard a carrier to a port of export, reexport, or
transfer (in-country), on or before March 26, 2022, pursuant to actual
orders for reexport, or transfer (in-country) to or within a foreign
destination, may proceed to such foreign destination under an
applicable authorization that was available prior to the new license
requirements, or with no license required, if no license requirements
had previously applied to such transactions.
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\1\ Imposition of Sanctions Against Belarus Under the Export
Administration Regulations (EAR), FR 2022-04819, scheduled to
publish March 8, 2022.
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The new Belarus and Russia restrictions set forth in Sec. 746.8 of
the EAR refer to a list of countries that have committed to
implementing substantially similar export controls on Belarus and
Russia under their domestic laws. Pursuant to Sec. 746.8(a)(5),
countries that have made such a commitment receive full or partial
exclusions, as appropriate, from the FDP rules' license requirements
set forth under Sec. 746.8(a)(2) and (3) of the EAR. Similarly, the
license requirements in Sec. 746.8(a)(1) are not used to determine
controlled U.S.-content under the EAR's de minimis rules, as set forth
in supplement no. 2 to part 734 of the EAR, provided the criteria in
Sec. 746.8(a)(5)(i) and (ii) are met. Countries excluded from these
requirements are listed in supplement no. 3 to part 746 (Russia and
Belarus Exclusions List). As a result of South Korea's commitment to
implement substantially similar export controls on Russia and Belarus
under its domestic laws, the Department of Commerce adds South Korea to
supplement no. 3 to part 746 in this rule with the designation of
``full.''
Export Control Reform Act of 2018
On August 13, 2018, the President 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) (codified, as
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for
BIS's principal authorities and serves as the authority under which BIS
issues this rule.
Rulemaking Requirements
1. This final rule is not a ``significant regulatory action''
because it ``pertain[s]'' to a ``military or foreign affairs function
of the United States'' under sec. 3(d)(2) 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 the following OMB-approved collections of information subject
to the PRA: 0694-0088, ``Multi-Purpose Application,'' which carries a
burden hour estimate of 29.6 minutes for a manual or electronic
submission; 0694-0096 ``Five Year Records Retention Period,'' which
carries a burden hour estimate of less than 1 minute; and 0607-0152
``Automated Export System (AES) Program,'' which carries a burden hour
estimate of 3 minutes per electronic submission. BIS anticipates this
rule will result in a slight decrease in the number of estimated
license applications because this rule provides
[[Page 13628]]
relief from the burden of the new Russia Sanctions rule and Belarus
Sanctions rule requirements that would otherwise pertain to items
produced in, exported or reexported from South Korea, or transferred
(in-country). Thus, this rule does not create a substantive change to
OMB Control Numbers 0694-0088, 0694-0096, or 0607-0152.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for
notice of proposed rulemaking, opportunity for public participation,
and delay in effective date. While section 1762 of ECRA provides
sufficient authority for such an exemption, this action is also
independently exempt from these APA requirements because it involves a
military or foreign affairs function of the United States (5 U.S.C.
553(a)(1)).
5. 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.
Accordingly, no regulatory flexibility analysis is required, and none
has been prepared.
List of Subjects in 15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, part 746 of the Export
Administration Regulations (15 CFR parts 730 through 774) is amended as
follows:
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
0
1. The authority citation for 15 CFR part 746 continues 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.; 22 U.S.C. 287c; Sec. 1503, Pub. L. 108-11, 117
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7,
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR
26793 (May 10, 2021).
0
2. Supplement no. 3 to part 746 is amended by adding an entry for
``South Korea'' in alphabetical order to read as follows:
Supplement No. 3 to Part 746--Countries Excluded From Certain License
Requirements of Sec. 746.8
* * * * *
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Federal Register
Country Scope citation
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* * * * * * *
South Korea..................... Full.............. 87 FR [INSERT FR
PAGE NUMBER] 3/10/
2022.
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Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-05025 Filed 3-4-22; 4:15 pm]
BILLING CODE 3510-33-P
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