Rule2024-09076
Amendment to Existing Controls on Russia and Belarus Under the Export Administration Regulations (EAR) Adding New License Exception Medical Devices (MED); Corrections
Primary source
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Published
April 29, 2024
Effective
April 29, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In this final rule, the Bureau of Industry and Security (BIS) makes changes to the Russia and Belarus sanctions under the Export Administration Regulations (EAR) to add a new license exception for EAR99 medical devices and related parts, components, accessories, and attachments for use in or with medical devices that are destined for both countries and the temporarily occupied Crimea region of Ukraine, or the covered regions of Ukraine. The purpose of this final rule is to authorize under a license exception certain exports, reexports, and transfers (in-country) of "medical devices" that are being regularly approved and that advance U.S. national security and foreign policy interests. In addition, this final rule makes two corrections to the EAR related to Russia-related rules published in January, and March, 2024 by correcting an end-user control and adding a cross-reference correction.
Full Text
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<title>Federal Register, Volume 89 Issue 83 (Monday, April 29, 2024)</title>
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[Federal Register Volume 89, Number 83 (Monday, April 29, 2024)]
[Rules and Regulations]
[Pages 33224-33229]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-09076]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740, 744, 746, and 762
[Docket No. 240423-0115]
RIN 0694-AJ59
Amendment to Existing Controls on Russia and Belarus Under the
Export Administration Regulations (EAR) Adding New License Exception
Medical Devices (MED); Corrections
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
makes changes to the Russia and Belarus sanctions under the Export
Administration Regulations (EAR) to add a new license exception for
EAR99 medical devices and related parts, components, accessories, and
attachments for use in or with medical devices that are destined for
both countries and the temporarily occupied Crimea region of Ukraine,
or the covered regions of Ukraine. The purpose of this final rule is to
authorize under a license
[[Page 33225]]
exception certain exports, reexports, and transfers (in-country) of
``medical devices'' that are being regularly approved and that advance
U.S. national security and foreign policy interests. In addition, this
final rule makes two corrections to the EAR related to Russia-related
rules published in January, and March, 2024 by correcting an end-user
control and adding a cross-reference correction.
DATES: This rule is effective on April 29, 2024.
FOR FURTHER INFORMATION CONTACT: For questions on this final rule,
contact Mark Salinas, Senior Export Policy Analyst, Foreign Policy
Division, Bureau of Industry and Security, Department of Commerce,
Phone: 202-482-4252, Email: <a href="/cdn-cgi/l/email-protection#ed808c9f86c39e8c8184838c9ead8f849ec389828ec38a829b"><span class="__cf_email__" data-cfemail="6904081b02471a08050007081a290b001a470d060a470e061f">[email protected]</span></a>.
For emails, include ``License Exception MED'' in the subject line.
SUPPLEMENTARY INFORMATION:
I. Background
A. Export Controls Implemented Against Russia and Belarus
In response to Russia's February 2022 full-scale invasion of
Ukraine, BIS imposed extensive sanctions on Russia under the EAR as
part of the final rule, ``Implementation of Sanctions Against Russia
Under the Export Administration Regulations (EAR)'' (the Russia
Sanctions Rule) (87 FR 12226, March 3, 2022). To address Belarus's
complicity in the invasion, BIS imposed similar sanctions on Belarus
under the EAR in a final rule, ``Implementation of Sanctions Against
Belarus'' (``Belarus Sanctions Rule'') (87 FR 13048, March 6, 2022).
During the last two years, BIS has published a number of additional
final rules strengthening the export controls on Russia and Belarus,
including measures undertaken in coordination with U.S. allies and
partners. Most recently, in March 2024, BIS amended the EAR to
strengthen export controls against Russia and other destinations by
expanding controls on persons identified on the List of Specially
Designated Nationals and Blocked Persons (SDN List) (March 21, 2024, 89
FR 20107). As corrected by this rule, as described below under section
II.C.1, Sec. 744.8 of the EAR imposes licensing restrictions on
exports, reexports, and transfers (in-country) made in connection with
persons designated as SDNs by the Department of the Treasury's Office
of Foreign Asset Controls pursuant to several Russia-related Executive
Orders.
B. Overview of This Final Rule
In this final rule, BIS makes changes to the Russia and Belarus
sanctions under the EAR to add a new license exception for ``medical
devices'' under Sec. 740.23 (Medical Devices (MED)). License Exception
MED will authorize the export, reexport, or transfer (in country) of
``medical devices'' designated as EAR99 to or within Russia, Belarus,
the temporarily occupied Crimea region of Ukraine, or the covered
regions of Ukraine. Items subject to the EAR that are not on the
Commerce Control List (CCL) in supplement no. 1 to part 774 of the EAR
are designated as EAR99. License Exception MED will also authorize
``parts,'' ``components,'' ``accessories,'' and ``attachments''
designated as EAR99 that are exclusively for use in or with ``medical
devices'' designated as EAR99.
The purpose of this final rule is to create a new license exception
that will authorize (subject to certain terms and conditions) certain
exports, reexports, and transfers (in-country) that BIS generally has
been approving under the licensing application review policies set
forth in Sec. Sec. 746.5, 746.6, and 746.10 of the EAR. New License
Exception MED includes terms and conditions to ensure that only those
exports, reexports, and transfers (in-country) that are in U.S.
national security and foreign policy interests will be authorized.
This final rule also makes conforming changes to the EAR to reflect
the addition of this new license exception.
Lastly, this final rule makes two corrections to the EAR,
consisting of: one correction to an end-user control under the EAR that
was impacted by the final rule, ``Export Administration Regulations
End-User Controls: Imposition of Restrictions on Certain Persons
Identified on the List of Specially Designated Nationals and Blocked
Persons (SDN List),'' published March 21, 2024 (89 FR 20107); and a
cross-reference correction to the final rule, ``Implementation of
Additional Sanctions Against Russia and Belarus Under the Export
Administration Regulations (EAR) and Refinements to Existing
Controls,'' published January 25, 2024 (89 FR 4804).
The three sets of changes this final rule makes are described in
section II as follows:
A. Addition of License Exception Medical Devices (MED);
B. Conforming changes to the EAR made in connection with the
addition of License Exception MED; and
C. Correction to the March 21, 2024, final rule addressing EAR
controls for certain Specially Designated Nationals (SDNs) and
correction to the January 25, 2024, Russia sanctions final rule.
II. Amendments to the EAR
A. Addition of License Exception Medical Devices (MED)
In part 740 (License Exceptions), this final rule adds a new
license exception to the EAR under Sec. 740.23 (Medical Devices
(MED)).
1. Scope of License Exception MED
This final rule adds paragraph (a) (Scope) to specify that License
Exception MED authorizes the export, reexport, or transfer (in country)
of ``medical devices'' designated as EAR99 to Russia, Belarus, the
temporarily occupied Crimea region of Ukraine, or the covered regions
of Ukraine. See the Supplement No. 3 to Part 774--Statements of
Understanding under paragraph (a) (Statement of Understanding--medical
equipment) for guidance on classifying medical equipment and the
definition of ``medical device'' in Sec. 772.1 of the EAR. Exporters,
reexporters, or transferors that need assistance in classifying their
items to determine whether they are designated as EAR99 may submit
classification requests to BIS using the Simplified Network Application
Process (SNAR-R) available on the BIS website at <a href="https://www.bis.doc.gov">https://www.bis.doc.gov</a>.
The second sentence of paragraph (a) specifies that License
Exception MED is also available to authorize ``parts,'' ``components,''
``accessories,'' and ``attachments'' designated as EAR99 that are
exclusively for use in or with ``medical devices'' designated as EAR99.
Due to the importance of ``parts,'' ``components,'' ``accessories,''
and ``attachments'' for the use of ``medical devices,'' these
commodities are also included as part of this authorization. The
criterion ``exclusively for use in or with ``medical devices''
designated as EAR99'' is intended to limit the types of ``parts,''
``components,'' ``accessories,'' and ``attachments'' that may be
exported, reexported, or transferred (in-country) under License
Exception MED, to those which are necessary for replacement or
maintenance in or with medical devices, which will also reduce the
likelihood of diversion to industrial or military end uses. The last
sentence of paragraph (a) specifies that License Exception MED
authorizes transactions involving EAR99 designated items that would
otherwise require a license pursuant to Sec. Sec. 746.5, 746.6 or
746.10 of the EAR, provided the terms and conditions described in Sec.
740.23 are met.
[[Page 33226]]
License Exception MED does not overcome any license requirements
imposed under Sec. 746.8 or any other EAR license requirement (e.g.,
those specified under part 744) other than those specified under
Sec. Sec. 746.5, 746.6, or 746.10. Additionally, as with any EAR
license exception, exports, reexports, or transfers (in-country) under
License Exception MED may be restricted under Sec. 740.2 (Restrictions
on All License Exceptions).
2. Restrictions of License Exception MED
This final rule adds paragraph (b) (Restrictions) to specify that
License Exception MED does not authorize the export, reexport, or
transfer (in country) of any item that meets the restrictions under
paragraph (b)(1), (2), or (3) of Sec. 740.23. Paragraph (b)(1)
specifies that License Exception MED is not available when a
``proscribed person,'' as defined in Sec. 772.1, is a party to the
transaction as described in Sec. 748.5(c) through (f) of the EAR. This
final rule also includes an illustrative list in a parenthetical phrase
that provides some examples of ``proscribed persons'' (including but
not limited to `military end users' see Sec. Sec. 744.17(e) and
744.21(g)) or in situations in which an entity on the Entity List in
supplement no. 4 to part 744 or on the Military End-User (MEU) List)
that are excluded from being parties to the transaction. License
Exception MED may not be utilized to help support the Russian
industrial base (in particular, the Russian medical device industry) or
enable ``proscribed persons'' or entities to receive eligible items.
Paragraph (b)(2) restricts any export, reexport, or transfers (in-
country) destined to a ``production'' ``facility,'' as those terms are
defined in Sec. 772.1. For the same reason, this final rule under
paragraph (b)(3) restricts any export, reexport, or transfer (in-
country) destined to Russia, Belarus, the temporarily occupied Crimea
region of Ukraine, or the covered regions of Ukraine when the exporter,
reexporter, or transferor has ``knowledge'' that the items are intended
to develop or produce items. This final rule also adds a Note 1 to
paragraphs (b)(2) and (3), to specify that the assembly in a hospital
or other health care ``facility'' of a finished ``medical device''
completely ``produced'' outside of Russia, Belarus, the temporarily
occupied Crimea region of Ukraine, or the covered regions of Ukraine
for the sole purpose of using that ``medical device'' at that facility
is not considered a ``production'' activity for purposes of these two
paragraphs.
3. Verification Procedures for License Exception MED
This final rule adds paragraph (c) (Verification) to impose a
requirement on exporters, reexporters, and transferors to maintain a
system of distribution that ensures that ``medical devices'' are not
delivered to ``proscribed persons'' or entities engaged in the
``production'' of any product. Exporters, reexporters, and transferors
are responsible for ensuring that the items being exported, reexported,
or transferred (in-country) are not diverted contrary to the terms and
conditions of License Exception MED. The paragraph (c) text specifies
that the verification of the effectiveness of the distribution system
may entail obtaining certain information from a consignee (e.g.,
obtaining affirmations or other documentation from a consignee as part
of an exporter, reexporter, or transferor's compliance program) for
ensuring that the use and disposition of ``medical devices'' received
under License Exception MED meet the required terms and conditions.
This final rule under paragraph (c) also provides another
illustrative example for how the verification of the effectiveness of
the distribution system may be confirmed by the exporter, reexporter,
or transferor by conducting periodic on-site spot checks. This final
rule includes criteria in a parenthetical phrase that follows the
phrase `or performing periodic on-site spot-checks' to provide
illustrative examples of the verification methods that may be adopted
to ensure the effectiveness of the distribution system when an
exporter, reexporter, or transferor decides to use conducting periodic
on-site spot checks. Specifically, this final rule specifies in that
parenthetical phrase that a verification system may include periodic
on-site spot-checks in Russia, Belarus, the temporarily occupied Crimea
region of Ukraine, or the covered regions of Ukraine, by the exporter,
reexporter, or transferor; an internationally accredited auditing firm;
or by an internationally recognized non-governmental humanitarian
organization.
4. Recordkeeping and Review of Records Under License Exception MED
This final rule under paragraph (d) (Recordkeeping and review of
records), specifies that in addition to complying with the
recordkeeping requirements in part 762 of the EAR, that exporters,
reexporters, and transferors must maintain records of verification, as
specified in paragraph (d), for 5 five years, and, upon request, these
records must be provided to BIS, or any other official of the United
States designated by BIS, for review.
BIS estimates the new License Exception MED under Sec. 740.23 will
result in a reduction of 3,900 license applications being submitted to
BIS annually.
B. Conforming Changes to the EAR for Addition of License Exception MED
In Sec. 746.5 (Russian and Belarusian industry sector sanctions),
this final rule revises paragraph (c)'s (License exceptions)
introductory text, to add a reference to new paragraph (c)(8) (License
Exception MED), an additional license exception that may overcome the
license requirements set forth in this section. This final rule also
adds paragraph (c)(8) (License Exception MED), including adding a cross
reference to new Sec. 740.23 of the EAR.
In Sec. 746.6 (Temporarily occupied Crimea region of Ukraine and
covered regions of Ukraine), this final rule adds a new paragraph
(c)(7) (License Exception MED), including adding a cross reference to
new Sec. 740.23 of the EAR.
In Sec. 746.10 (`Luxury goods' sanctions against Russia and
Belarus and Russian and Belarusian oligarchs and malign actors), this
final rule revises paragraph (c) (License Exceptions) introductory text
to add a reference to new paragraph (c)(8) (License Exception MED) as
an additional license exception that may overcome the license
requirements in paragraph (a)(1) of this section. This final rule also
adds paragraph (c)(8) (License Exception MED), including adding a cross
reference to new Sec. 740.23 of the EAR.
In Sec. 762.2 (Records to be retained), this final rule revises
paragraph (b) (Records retention references) to add a new paragraph
(b)(55) (Sec. 740.23, License Exception MED) and makes two conforming
changes by revising paragraph (b)(53) to remove the word ``and'' and
revising paragraph (b)(54) to replace the period with a semi-colon to
reflect the addition of new paragraph (b)(55).
C. Correction to March 24, 2024 Final Rule Imposing EAR Controls on
Certain Persons Identified on the SDN List and Correction to January
25, 2024 Russia Sanctions Final Rule
1. Correction to March 24, 2024 Final Rule
This final rule makes a conforming change correction to Sec.
744.11 to reflect the revisions made to Sec. 744.8 in the March 24,
2024, final rule, ``Export Administration Regulations End-User
[[Page 33227]]
Controls: Imposition of Restrictions on Certain Persons Identified on
the List of Specially Designated Nationals and Blocked Persons (SDN
List),'' (89 FR 20107). Specifically, this final rule removes the
fourth sentence of paragraph (b) introductory text that specified that
Sec. 744.11 ``may not be used to place on the Entity List any party to
which exports or reexports require a license pursuant to Sec. 744.8,
Sec. 744.12, Sec. 744.13, Sec. 744.14, or Sec. 744.18'' because it
is no longer needed or accurate. Sections 744.12 through 744.14 and
744.18 were reserved as of March 24, 2024. Note 2 to paragraph (a) of
the revised Sec. 744.8 provides guidance that the Entity List in
supplement no. 4 to part 744 includes certain persons that have also
been designated with certain identifiers on the SDN List. Note 2
includes a cross reference that directs persons to Sec. 744.11 and
supplement no. 4 to part 744 for requirements, including license review
policies, for these entities, which take precedence over the
requirements in Sec. 744.8.
2. Correction to January 25, 2024 Russia Sanctions Final Rule
This final rule makes a cross-reference correction to Sec. 746.10
to add a reference to paragraph (c)(7) to reflect that License
Exception CCD is intended to be available to overcome the license
requirements under Sec. 746.10(a)(1) as described in the Background
section of the January 25, 2024, final rule, ``Implementation of
Additional Sanctions Against Russia and Belarus Under the Export
Administration Regulations (EAR) and Refinements to Existing
Controls,'' published January 25, 2024 (89 FR 4804), but the regulatory
cross-reference was not updated to reflect paragraph (c)(3) was
redesignated as paragraph (c)(7) in the January 25, 2024 final rule.
This final rule corrects Sec. 746.10(c) introductory text to make a
needed cross-reference correction to specify that License Exception CCD
is available.
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. To the extent it applies to certain activities that
are the subject of this rule, the Trade Sanctions Reform and Export
Enhancement Act of 2000 (TSRA) (codified, as amended, at 22 U.S.C.
7201-7211) also serves as authority for this rule.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders 12866, 13563, and 14094, which 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 (e.g., potential economic, environmental, public,
health, and safety effects, distributive impacts, and equity). Pursuant
to E.O. 12866, as amended, this final rule has not been determined to
be a ``significant regulatory action.''
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:
<bullet> OMB Control Number 0694-0088, ``Multi-Purpose
Application,'' which carries a burden hour estimate of 29.4 minutes for
a manual or electronic submission;
<bullet> OMB Control Number 0694-0096 ``Five Year Records Retention
Period,'' which carries a burden hour estimate of less than one minute;
and
<bullet> OMB Control Number 0607-0152 ``Automated Export System
(AES) Program,'' which carries a burden hour estimate of three minutes
per electronic submission.
This rule changes the respondent burden for control number 0694-
0088 by reducing the estimated number of submissions by 3,900, which is
expected to reduce the current approved estimates, which will result in
a reduction of 1,911 burden hours saved and cost savings to the public
of $72,618 under this collection. The respondent burden under controls
numbers 0694-0096 and 0607-0152 are not anticipated to change as a
result of this final rule.
Current information regarding all three collections of
information--including all background materials--can be found at
<a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a> by using the search function
to enter either the title of the collection or the OMB Control Number.
3. This rule does not contain policies with federalism implications
as that term is defined in E.O. 13132.
4. Pursuant to section 1762 of ECRA (50 U.S.C. 4821), 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 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 has been prepared.
List of Subjects
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism
15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
15 CFR Part 762
Administrative practice and procedure, Business and industry,
Confidential business information, Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the preamble, parts 740, 744, 746, and
762 of the Export Administration Regulations (15 CFR parts 730 through
774) 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. Part 740 is amended by adding Sec. 740.23 to read as follows.
Sec. 740.23 MEDICAL DEVICES (MED).
(a) Scope. License Exception MED authorizes the export, reexport,
or transfer (in country) of ``medical devices'' designated as EAR99 to
or within Russia, Belarus, the temporarily
[[Page 33228]]
occupied Crimea region of Ukraine, or the covered regions of Ukraine
(as specified in Sec. 746.6(a)(2) of the EAR). See Supplement no. 3 to
part 774--Statements of Understanding under paragraph (a) (Statement of
Understanding--medical equipment) for guidance on classifying medical
equipment and the definition of ``medical device'' in Sec. 772.1 of
the EAR. License Exception MED also authorizes the export, reexport, or
transfer (in country) to or within Russia, Belarus, the temporarily
occupied Crimea region of Ukraine, or the covered regions of Ukraine of
``parts,'' ``components,'' ``accessories,'' and ``attachments''
designated as EAR99 that are exclusively for use in or with ``medical
devices'' designated as EAR99. This license exception authorizes
transactions involving items designated as EAR99 that would otherwise
require a license pursuant to Sec. Sec. 746.5, 746.6 or 746.10 of the
EAR, subject to the terms and conditions described in this section. For
``parts,'' ``components,'' ``accessories,'' and ``attachments''
authorized under License Exception MED, such replacement ``parts,''
``components,'' ``accessories,'' and ``attachments'' may only be
exported, reexported, or transferred (in-country) if they also meet the
additional requirements under paragraphs (a)(1) and (2) of this
section:
(1) The ``part,'' ``component,'' ``accessory,'' or ``attachment''
is being exported, reexported, or transferred (in-country) solely to
replace a broken or nonoperational ``part,'' ``component,''
``accessory,'' or ``attachment'' for use in or with a ``medical
device'' that falls within the scope of paragraph (a) of this section,
or the export, reexport, or transfer (in-country) of such replacement
``parts,'' ``components,'' ``accessories,'' and ``attachments'' is
necessary and ordinarily incident to the proper preventative
maintenance of such a ``medical device;'' and
(2) The number of replacement ``parts,'' ``components,''
``accessories,'' and ``attachments'' that are exported, reexported,
transferred (in-country), and stored in Russia, Belarus, the
temporarily occupied Crimea region of Ukraine, or the covered regions
of Ukraine does not exceed the number of corresponding operational
``parts,'' ``components,'' ``accessories,'' and ``attachments''
currently in use in or with the relevant medical devices in Russia,
Belarus, the temporarily occupied Crimea region of Ukraine, or the
covered regions of Ukraine.
(b) Restrictions. This license exception does not authorize the
export, reexport, or transfer (in country) of any item:
(1) To a ``proscribed person'' (including but not limited to
`military end users' (see Sec. Sec. 744.17(e) and 744.21(g)) or in
situations in which an entity on the Entity List in supplement no. 4 to
part 744 or on the Military End-User (MEU) List) is a party to the
transaction as described in Sec. 748.5(c) through (f) of the EAR;
(2) Destined to a ``production'' ``facility;'' or
(3) When you have ``knowledge'' that the item is intended to
develop or produce items.
Note 1 to paragraphs (b)(2) and (3): The assembly in a hospital
or other health care facility of a finished ``medical device''
completely ``produced'' outside of Russia, Belarus, the temporarily
occupied Crimea region of Ukraine, or the covered regions of
Ukraine'' for the sole purpose of using that ``medical device'' at
that facility is not considered a ``production'' activity for
purposes of the restrictions under paragraphs (b)(2) and (3) of this
section.
(c) Verification. Exporters, reexporters, and transferors must
maintain a system of distribution that ensures that ``medical devices''
and ``parts,'' ``components,'' ``accessories,'' or ``attachments'' are
not delivered to ``proscribed persons'' or entities engaged in the
``production'' of any product. Verification of the effectiveness of the
distribution system may entail obtaining certain information from a
consignee (e.g., obtaining affirmations or other documentation from a
consignee, or performing periodic on-site spot-checks (e.g., conducting
such verification by staff of the exporter, reexporter, or transferor;
an internationally accredited auditing firm; or an internationally
recognized non-governmental humanitarian organization in Russia,
Belarus, the temporarily occupied Crimea region of Ukraine, or the
covered regions of Ukraine to conduct such verification).
(d) Recordkeeping and review or inspection of records. In addition
to complying with the recordkeeping requirements in part 762 of the
EAR, exporters, reexporters, and transferors must maintain records of
verification, as specified in paragraph (c) of this section, for 5
years and, upon request, provide records to BIS, or any other official
of the United States designated by BIS, for review or inspection.
PART 744--CONTROL POLICY: END-USER AND END-USE BASED
0
3. 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 September 19, 2022, 87 FR 57569 (September 21, 202); 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).
Sec. 744.11 [Amended]
0
4. Section 744.11 is amended by removing the fourth sentence of
paragraph (b) introductory text.
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
0
5. 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 8, 2023, 88 FR
30211 (May 10, 2023).
0
6. Section 746.5 is amended by revising paragraph (c) introductory text
and adding paragraph (c)(8), to read as follows:
Sec. 746.5 Russian and Belarusian industry sector sanctions.
* * * * *
(c) License exceptions. No license exceptions may overcome the
license requirements set forth in this section, except the license
exceptions identified in paragraphs (c)(2), (7), and (8) of this
section.
* * * * *
(8) License Exception MED (Sec. 740.23 of the EAR).
0
7. Section 746.6 is amended by adding paragraph (c)(7), to read as
follows:
Sec. 746.6 Temporarily occupied Crimea region of Ukraine and covered
regions of Ukraine.
* * * * *
(c) * * *
(7) License Exception MED (Sec. 740.23 of the EAR).
* * * * *
[[Page 33229]]
0
8. Section 746.10 is amended by revising paragraph (c) introductory
text and adding paragraph (c)(8), to read as follows:
Sec. 746.10 `Luxury goods' sanctions against Russia and Belarus and
Russian and Belarusian oligarchs and malign actors.
* * * * *
(c) License exceptions. No license exceptions may overcome the
license requirements in paragraph (a)(1) of this section except the
license exceptions identified in paragraphs (c)(1) through (3), (c)(7)
and (8) of this section.
* * * * *
(8) License Exception MED (Sec. 740.23 of the EAR).
PART 762--RECORDKEEPING
0
9. 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
0
10. Section 762.2 is amended by:
0
a. Revising paragraphs (b)(53) and (54), and
0
b. Adding paragraph (b)(55).
The revisions and addition read as follows:
Sec. 762.2 Records to be retained.
* * * * *
(b) * * *
(53) Sec. 750.7(c)(2), Notification of name change by advisory
opinion request;
(54) Sec. 748.13, Certain Hong Kong import and export licenses;
and
(55) Sec. 740.23, License Exception MED.
* * * * *
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-09076 Filed 4-25-24; 8:45 am]
BILLING CODE 3510-JT-P
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