Rule2024-05696
Revisions To Export, Reexport, and Transfer (In-Country) Controls for Nicaragua Under the Export Administration Regulations
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
March 15, 2024
Effective
March 15, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, BIS amends the Export Administration Regulations (EAR) to apply more restrictive treatment to exports and reexports to, and transfers (in-country) within, Nicaragua of items subject to the EAR. This action is consistent with the State Department's addition of Nicaragua to the list of countries that are subject to a U.S. arms embargo under the International Traffic in Arms Regulations (ITAR). To reflect this changed status under the ITAR, BIS adds Nicaragua to Country Group D:5. BIS's amendments also address concerns regarding the Nicaraguan Government's commission of human rights abuses against citizens and civil society groups, as well as the regime's ongoing military and security cooperation with Russia. Specifically, BIS is moving Nicaragua from Country Group B to Country Group D, a more restrictive country grouping, applying a stringent licensing policy for items controlled for national security reasons, and making the country subject to `military end use' and `military end user' restrictions. This rule advances the U.S. Government's efforts to restrict the availability of items subject to the EAR to Nicaragua's military and security services. Additionally, consistent with BIS's authorities under the Export Control Reform Act of 2018, this rule demonstrates a commitment to using export controls to protect human rights and promote democracy.
Full Text
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<title>Federal Register, Volume 89 Issue 52 (Friday, March 15, 2024)</title>
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[Federal Register Volume 89, Number 52 (Friday, March 15, 2024)]
[Rules and Regulations]
[Pages 18780-18784]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-05696]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740, 742, and 744
[Docket No. 240202-0036]
RIN 0694-AJ34
Revisions To Export, Reexport, and Transfer (In-Country) Controls
for Nicaragua Under the Export Administration Regulations
AGENCY: Bureau of Industry and Security (BIS), Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, BIS amends the Export Administration
Regulations (EAR) to apply more restrictive treatment to exports and
reexports to, and transfers (in-country) within, Nicaragua of items
subject to the EAR. This action is consistent with the State
Department's addition of Nicaragua to the list of countries that are
subject to a U.S. arms embargo under the International Traffic in Arms
Regulations (ITAR). To reflect this changed status under the ITAR, BIS
adds Nicaragua to Country Group D:5. BIS's amendments also address
concerns regarding the Nicaraguan Government's commission of human
rights abuses against citizens and civil society groups, as well as the
regime's ongoing military and security cooperation with Russia.
Specifically, BIS is moving Nicaragua from Country Group B to Country
Group D, a more restrictive country grouping, applying a stringent
licensing policy for items controlled for national security reasons,
and making the country subject to `military end use' and `military end
user' restrictions. This rule advances the U.S. Government's efforts to
restrict the availability of items subject to the EAR to Nicaragua's
military and security services. Additionally, consistent with BIS's
authorities under the Export Control Reform Act of 2018, this rule
demonstrates a commitment to using export controls to protect human
rights and promote democracy.
DATES: This rule is effective March 15, 2024.
FOR FURTHER INFORMATION CONTACT: Anthony Christino III, Director,
Foreign Policy Division, Office of Nonproliferation and Treaty
Compliance, Bureau of Industry and Security, U.S. Department of
Commerce, by email at <a href="/cdn-cgi/l/email-protection#20664f524549474e0e704f4c494359604249530e444f430e474f56"><span class="__cf_email__" data-cfemail="23654c51464a444d0d734c4f4a405a63414a500d474c400d444c55">[email protected]</span></a>, or by phone at 202-
482-4252.
SUPPLEMENTARY INFORMATION:
Background
To address ongoing foreign policy and national security concerns
raised by the actions of the Nicaraguan Government under the leadership
of President Daniel Ortega, including by Nicaraguan military and
security services, BIS is issuing this final rule that would subject
the country to more restrictive treatment under the Export
Administration Regulations (EAR), 15 CFR parts 730 through 774.
In particular, this rule makes regulatory changes that reflect the
U.S. Government's opposition to the trade of arms with Nicaragua and
its government consistent with the State Department's March 15, 2024,
addition of Nicaragua to Sec. 126.1(p) of the International Traffic in
Arms Regulations (ITAR), 22 CFR parts 120 through 130, thereby imposing
restrictions (with limited exceptions) on the export of defense
articles and defense services destined for or originating in the
country.
Additionally, BIS's action addresses the Nicaraguan Government's
ongoing dismantling of democratic institutions and attacks on civil
society. Since 2018, President Ortega's regime has targeted democratic
movements supported by students and middle-class professionals and
sought to curb religious expression, including by the Roman Catholic
church. In many instances, the government crackdowns have been aided
and abetted by the Nicaragua National Police (NNP), the government's
primary law enforcement entity, and the Nicaraguan judiciary. The NNP
has been responsible for using live ammunition against peaceful
protesters and participating in death squads, as well as carrying out
extrajudicial killings, disappearances, and kidnappings. As documented
by Amnesty International, during a period of several months starting in
July 2018, the NNP and other pro-government forces conducted
``Operation Clean Up,'' an operation in which they deployed lethal
force against protesters resulting in hundreds of deaths and injuries.
On March 5, 2020, the U.S. Department of the Treasury's Office of
Foreign Assets Control designated the NNP and three NNP commissioners,
Juan Antonio Valle Valle, Luis Alberto Perez Olivas, and Justo Pastor
Urbina, as Specially Designated Nationals. See <a href="https://home.treasury.gov/news/press-releases/sm930">https://home.treasury.gov/news/press-releases/sm930</a>. On March 28, 2023, BIS
amended the EAR by adding the NNP to the Entity List (88 FR 18983;
March 30, 2023).
BIS is also taking this regulatory action to address national
security and foreign policy concerns arising out of
[[Page 18781]]
Nicaragua's deepening military and security ties with Russia. Since
2016, Russia has supplied Nicaragua with military equipment and
technology that provides surveillance capabilities, including satellite
monitoring of telecommunications. In June 2022, the two countries
renewed a decade-long training agreement for Russian forces. The Ortega
regime has also formally supported Russia in connection with its
February 2022 invasion of Ukraine in various international fora,
including an October 2022 vote in support of Russia before the United
Nations General Assembly.
Changes Made by This Rule
Consistent with the foreign policy and national security concerns
detailed above, in this rule, BIS is making four sets of changes to the
EAR that will subject Nicaragua to more stringent export, reexport, and
transfer (in-country) controls involving items that are subject to the
EAR. First, BIS is adding Nicaragua to Country Group D:5 (U.S. Arms
Embargoed Countries) in supplement no. 1 to part 740 of the EAR. This
amendment is made to conform with the State Department's amendment that
added the country to Sec. 126.1 (Prohibited exports, imports, and
sales to or from certain countries) under paragraph (p). March 15,
2024.
Second, BIS is moving Nicaragua from Country Group B to Country
Group D:1 (see supp. no. 1 to part 740), a grouping of countries that
raise national security concerns.
Third, Nicaragua is being added to the countries subject to a
stringent licensing policy set forth in Sec. 742.4 (national security
controls) in connection with the risk of diversion to defined military
end uses and end users. Finally, this rule makes the country subject to
the `military end use' and `military end user' restrictions in Sec.
744.21.
Existing licensing requirements and related review policies not
revised by this rule continue to apply to items subject to the EAR that
are destined for Nicaragua. For example, items controlled for reasons
identified in supplement no. 1 to part 738 (Commerce Country Chart) by
``Xs'' in Columns CB1, CB2, NP1, NS1, NS2, MT1, RS1, RS2, FC1, CC1 and
CC3 remain subject to the existing controls under the EAR. In
particular, BIS will continue to review for national security and
foreign policy (including human rights) concerns items controlled for
regional stability to Nicaragua as set forth in the ``RS1'' column on
the Commerce Country Chart (see Sec. 742.6(b)(1)(i)). It will also
continue to review items controlled for Crime Control reasons pursuant
to the human rights-related standard set forth in Sec. 742.7(b)(1).
Additionally, pursuant to Sec. 742.7(b)(2), BIS will continue to
review items destined for Nicaragua that are controlled for all reasons
apart from short supply under the human rights-related standard set
forth in paragraph (b)(1).
Impact of the EAR Amendments
Country Group Related Changes
Country Group D:5
As a result of its placement in Country Group D:5, Nicaragua will
be subject to additional restrictions in the EAR, including on de
minimis U.S. content, license exception availability, and licensing
policy for certain items. For example, license applications for the
export or reexport of items classified under 9x515 or ``600 series''
Export Control Classification Numbers (ECCNs) to countries in Country
Group D:5 are reviewed consistent with the policies in Sec. 126.1 of
the ITAR, as provided in paragraph (b)(1)(ii) of Sec. 742.4 of the
EAR.
This rule also removes a reference to an outdated State Department
website that is currently listed in the footnote to Country Group D:5
(Note to Country Group D:5). As amended, the note directs the public to
Sec. 126.1 of the ITAR and to Federal Register notices regarding U.S.
arms embargoes.
Country Group D:1
As a result of its placement in Country Group D:1, Nicaragua will
be subject to more restrictive treatment under certain part 744 end use
controls (see, e.g., Sec. 744.3(a) (restrictions on exports,
reexports, or in-country transfers of certain rocket systems and
unmanned aerial vehicles). Additionally, pursuant to Sec. 744.7,
restrictions on certain exports and reexports to vessels and aircraft
located in Nicaraguan ports or registered in Nicaragua will apply. The
restrictions on the export, reexport, and transfer (in-country) of
certain microprocessors and associated software and technology for
defined military end uses and end users in Country Group D:1 pursuant
to Sec. 744.17 will now apply to Nicaragua. Additionally, consistent
with its placement in Country Group D:1, Nicaragua will be subject to
two foreign direct product (FDP) rules set forth in Sec. 734.9 that
apply to exports from abroad, reexports, and transfers (in-country) of
foreign-produced direct products of U.S.-origin technology and
software, specifically, a National Security FDP rule and a `600 series'
FDP rule. See Sec. 734.9(b)(2) and (d)(2).
Removing Nicaragua from Country Group B and placing it in Country
Group D:1 also makes certain license exceptions unavailable. The
license exceptions made unavailable in full are: Shipments of limited
value (LVS) (Sec. 740.3); License Exception Shipments to Country Group
B countries (GBS) (Sec. 740.4); and Technology and software under
restriction (TSR) (Sec. 740.6). Certain provisions in additional
license exceptions that are available to Country Group B countries are
restricted to Country Group D:1.
Restrictive National Security-Related Review Policy
As a result of this rule, a restrictive licensing policy will apply
to license applications involving the export, reexport, and transfer
(in-country) to Nicaragua of items listed on the CCL and controlled for
national security reasons (NS items). Specifically, such applications
will now be subject to the licensing policy in Sec. 742.4(b)(7), which
specifies that applications involving NS items will be reviewed to
determine whether there is a risk of diversion to a defined military
end use or end user (see Sec. 744.21(f) and (g)). Applications
determined to be for civil end users or for civil end uses will be
subject to a general policy of approval. Applications to export,
reexport, or transfer (in-country) items that would make a material
contribution to the ``development,'' ``production,'' maintenance,
repair, or operation of weapons systems, subsystems, and assemblies,
such as those described in supplement no. 7 to part 742 (major weapons
systems) will be subject to a presumption of denial.
New Military End Use and Military End User Controls
Finally, this rule adds Nicaragua to the countries that are subject
to the `military end use' and `military end user' restrictions set
forth in Sec. 744.21. As amended by this rule, pursuant to Sec.
744.21(a)(1), a license is required for the export, reexport, or
transfer (in-country) of any item subject to the EAR that is listed in
supplement no. 2 to part 744 to Burma, Cambodia, the People's Republic
of China, Venezuela, or Nicaragua if there is ``knowledge'' (see Sec.
772.1 of the EAR) that such item is intended, entirely or in part, for
a `military end use' or ``military end user' as defined in Sec.
744.21(f) or (g), respectively. As a conforming change, this rule adds
a country heading for Nicaragua in supplement no. 7 to part 744
(`Military End-User' (MEU) List) but does not add any entities to the
MEU List under this new country heading.
[[Page 18782]]
Saving Clause
Shipments of items removed from license exception eligibility or
eligibility for export, reexport or transfer (in-country) without a
license as a result of this regulatory action that were on dock for
loading, on lighter, laden aboard an exporting carrier, or en route
aboard a carrier to a port of export, on March 15, 2024, pursuant to
actual orders for exports, reexports and transfers (in-country) to a
foreign destination may proceed to that destination under the previous
license exception eligibility or without a license so long as they have
been exported, reexported or transferred (in-country) before April 15,
2024. Any such items not actually exported, reexported or transferred
in-country) before midnight, on April 15, 2024, require a license in
accordance with this final rule.
Export Administration Regulations
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), 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 has been determined to be significant under
Executive Order 12866.
2. 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.) (PRA), 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 0694-0088,
Simple Network Application Process and Multipurpose Application Form.
This collection includes, among other things, license applications, and
carries a burden estimate of 29.4 minutes for a manual or electronic
submission for a total burden estimate of 36,689 hours. BIS expects an
increase of 588 burden hours for this collection. This collection is
currently under a 60-day Federal Register notice for public comment (88
FR 85586) published on December 8, 2023. These additional burden hours
will be added during this renewal process.
3. This rule does not contain policies with federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018, 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. Because neither
the Administrative Procedure Act nor any other law requires that notice
of proposed rulemaking and an opportunity for public comment be given
for this rule, the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
no Final Regulatory Flexibility Analysis is required and none was
prepared.
List of Subjects
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 744
Exports, Reexports and recordkeeping requirements, Terrorism.
Accordingly, the Export Administration Regulations (15 CFR parts
740, 742, and 744) are amended as follows:
PART 740--LICENSE EXCEPTIONS
0
1. The authority citation for part 740 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. 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.
0
2. Supplement no. 1 to part 740 is amended by:
0
a. In the Country Group B table, removing ``Nicaragua''; and
0
b. In the Country Group D table, adding an entry for ``Nicaragua'' in
alphabetical order and revising footnote 1 to the table.
The addition and revision read as follows:
Supplement No. 1 to Part 740--Country Groups
* * * * *
Country Group D
--------------------------------------------------------------------------------------------------------------------------------------------------------
[D: 5] U.S.
Country [D: 1] National [D: 2] Nuclear [D: 3] Chemical [D: 4] Missile arms embargoed
security & biological technology countries \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Nicaragua.......................................................... X ............... ............... ............... X
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in the Federal
Register. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Register notices related to
arms embargoes and will be amended when the State Department publishes subsequent notices. If there are any discrepancies between the list of
countries in this table and the countries identified by the State Department as subject to a U.S. arms embargo (in the Federal Register), the State
Department's list of countries subject to U.S. arms embargoes shall be controlling.
* * * * *
[[Page 18783]]
PART 742--CONTROL POLICY--CCL BASED CONTROLS
0
3. The authority citation for part 742 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. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR
59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004
Comp., p. 320; Notice of November 8, 2022, 87 FR 68015 (November 10,
2022).
0
4. Amend Sec. 742.4 by revising the first sentence of paragraph
(b)(7)(i) to read as follows:
Sec. 742.4 National security.
* * * * *
(b) * * *
(7)(i) For Burma, Cambodia, the People's Republic of China (PRC),
Nicaragua, and Venezuela, all applications will be reviewed to
determine the risk of diversion to a military end user or military end
use. * * *
* * * * *
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
0
5. The authority citation for part 744 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. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of November 8, 2022, 87 FR 68015, 3 CFR, 2022 Comp., p. 563; Notice
of September 7, 2023, 88 FR 62439 (September 11, 2023).
0
6. Amend Sec. 744.21 by revising paragraphs (a), (b) introductory
text, (b)(1), and (e)(3) to read as follows:
Sec. 744.21 Restrictions on certain `military end uses' or `military
end users'.
(a) General prohibition. In addition to the license requirements
for items specified on the Commerce Control List (CCL) (supplement no.
1 to part 774 of the EAR), you may not export, reexport, or transfer
(in-country):
(1) Any item subject to the EAR listed in supplement no. 2 to this
part without a license if, at the time of the export, reexport, or
transfer (in-country), you have ``knowledge,'' as defined in Sec.
772.1 of the EAR, that the item is intended, entirely or in part, for a
`military end use,' as defined in paragraph (f) of this section, in
Burma, Cambodia, the People's Republic of China (China), Nicaragua, or
Venezuela, or a Burmese, Cambodian, Chinese, Nicaraguan, or Venezuelan
`military end user,' as defined in paragraph (g) of this section,
wherever located. `Military end users' located outside of Burma,
Cambodia, China, Nicaragua, or Venezuela are limited to entities
identified on the `Military End-User' (MEU) List under supplement no. 7
to this part.
(2) Any item subject to the EAR without a license if, at the time
of the export, reexport, or transfer (in-country), you have
``knowledge,'' as defined in Sec. 772.1 of the EAR that the item is
intended, entirely or in part, for a `military end use,' as defined in
paragraph (f) of this section, in Belarus or Russia, or a Belarusian or
Russian `military end user,' as defined in paragraph (g) of this
section, wherever located. Belarusian or Russian `military end users'
located outside of Belarus or Russia are limited to entities identified
on the Entity List under supplement no. 4 to this part with a footnote
3 designation.
Note 1 to paragraphs (a)(1) and (2): An entity anywhere in the
world, including in Burma, Cambodia, China, Nicaragua, or Venezuela,
may be listed on the Entity List as a Belarusian or Russian
`military end user' with a footnote 3 designation. If the entity is
not a Belarusian or Russian `military end user,' but has otherwise
been identified by the End User Review Committee (ERC) as a
`military end user,' that entity may be identified under the
`Military End-User' (MEU) List under supplement no. 7 to this part.
As noted in paragraph (a)(1) of this section, exporters,
reexporters, and transferors, even in the absence of any such
notification, are not excused from compliance with the license
requirements of this paragraph (a) for all entities in Burma,
Cambodia, China, Nicaragua, or Venezuela to determine whether the
entity is a `military end user' for purposes of paragraph (g) of
this section because supplement no. 7 is not an exhaustive listing
of `military end users' in those countries. As noted in paragraph
(a)(2) of this section, exporters, reexporters, and transferors,
even in the absence of any such notification, are not excused from
compliance with the license requirements of this paragraph (a) for
all entities in Belarus or Russia to determine whether the entity is
a `military end user' for purposes of paragraph (g) of this section
because supplement no. 4 under this part is not an exhaustive
listing of `military end users' in those countries.
(b) Additional prohibition on those informed by BIS. BIS may inform
you either individually by specific notice, through amendment to the
EAR published in the Federal Register, or through a separate
notification published in the Federal Register, that a license is
required for specific exports, reexports, or transfers (in-country) of
any item because there is an unacceptable risk of use in or diversion
to a `military end use' in Belarus, Burma, Cambodia, China, Nicaragua,
the Russian Federation, or Venezuela, or for a Belarusian, Burmese,
Cambodian, Chinese, Nicaraguan, Russian, or Venezuelan `military end
user,' wherever located. Specific notice will be given only by, or at
the direction of, the Deputy Assistant Secretary for Export
Administration. When such notice is provided orally, it will be
followed by written notice within two working days signed by the Deputy
Assistant Secretary for Export Administration or the Deputy Assistant
Secretary's designee. The absence of BIS notification does not excuse
the exporter from compliance with the license requirements of paragraph
(a) of this section.
(1) `Military End-User' (MEU) List. BIS may inform and provide
notice to the public that certain entities are subject to the
additional prohibition described under this paragraph (b) following a
determination by the End-User Review Committee (ERC) that a specific
entity is a `military end user' pursuant to this section and therefore
any exports, reexports, or transfers (in-country) to that entity
represent an unacceptable risk of use in or diversion to a `military
end use' in Belarus, Burma, Cambodia, China, Nicaragua, the Russian
Federation, or Venezuela, or for a Belarusian, Burmese, Cambodian,
Chinese, Nicaraguan, Russian, or Venezuelan `military end user,'
wherever located. Such Burmese, Cambodian, Chinese, Nicaraguan, or
Venezuelan `military end users' may be added to supplement no. 7 to
this part (MEU List). Such Belarusian or Russian `military end users'
may also be added to supplement no. 4 to this part (Entity List) and
will be listed with a footnote 3 designation. License requirements for
listed MEU are described in paragraph (b)(1)(ii) of this section. The
listing of entities under supplement no. 7 or 4 to this part is not an
exhaustive listing of `military end users' for purposes of this
section, except for `military end users' of a country identified in
this section (Belarus, Burma, Cambodia, China, Nicaragua, the Russian
Federation, or Venezuela) not located in that same country. As
specified in paragraphs (a)(1) and (2) of this section, `military
[[Page 18784]]
end users' of a country identified in this section not located in that
same country are exhaustively listed on either the Entity List with a
footnote 3 designation or on the MEU List under supplement no. 7 this
part. Exporters, reexporters, and transferors are responsible for
determining whether transactions with entities not listed on supplement
no. 7 or 4 to this part are subject to a license requirement under
paragraph (a) of this section. The process in this paragraph (b)(1) for
placing entities on the MEU List and Entity List is only one method BIS
may use to inform exporters, reexporters, and transferors of license
requirements under this section.
(i) End-User Review Committee (ERC). The End-User Review Committee
(ERC), composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy and, where appropriate, the Treasury,
makes all decisions regarding additions to, removals from, or other
modifications to the MEU List and Entity List. Decisions by the ERC for
purposes of the MEU List and Entity List will be made following the
procedures identified in this section and in supplement no. 5 to this
part (Procedures for End-User Review Committee Entity List and
`Military End User' (MEU) List Decisions).
(ii) License requirement for parties to the transaction. Consistent
with paragraph (a) of this section, a license is required for the
export, reexport, or transfer (in-country) of any item subject to the
EAR listed in supplement no. 2 to this part when an entity that is
listed on the MEU List as a Burmese, Cambodian, Chinese, Nicaraguan, or
Venezuelan `military end user' is a party to the transaction as
described in Sec. 748.5(c) through (f) of the EAR. Consistent with
paragraph (a) of this section, a license is required for the export,
reexport, or transfer (in-country) of any item subject to the EAR when
a Belarusian or Russian `military end user' that is listed on the
Entity List pursuant to this section is a party to the transaction as
described in Sec. 748.5(c) through (f) of the EAR.
* * * * *
(e) * * *
(3) Applications for items requiring a license for any reason that
are destined for a `military end use' in Belarus, Burma, Cambodia,
China, Nicaragua, the Russian Federation, or Venezuela or for a
Belarusian, Burmese, Cambodian, Chinese, Nicaraguan, Russian, or
Venezuelan `military end user,' wherever located, also will be subject
to the review policy stated in paragraph (e)(1) of this section.
* * * * *
0
7. Supplement no. 7 to part 744 is amended in the table by adding in
alphabetical order an entry for ``Nicaragua'' to read as follows:
Supplement No. 7 to Part 744--`Military End-User' (Meu) List
* * * * *
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Federal Register
Country Entity citation
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* * * * *
NICARAGUA....................... [Reserved]........ [Reserved].
* * * * *
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Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-05696 Filed 3-14-24; 8:45 am]
BILLING CODE 3510-33-P
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