Rule2024-10280
Conforming and Clarifying Changes to the Export Administration Regulations (EAR)
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Published
May 10, 2024
Effective
May 30, 2024
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
This final rule makes conforming and clarifying changes to the Export Administration Regulations (EAR). These changes include making conforming changes to the EAR to ensure that destination names reflect the current destination names that are recognized by the United States Government, clarifying the removal of certain license requirements for exports, reexports, and transfers (in-country) to and within Australia and the United Kingdom, making a conforming change to reflect that Cyprus is no longer a Country Group D:5 country, and clarifying how Russia and the Russian Federation are referenced for consistency with the designation of Russia as a U.S. Arms Embargoed destinations.
Full Text
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<title>Federal Register, Volume 89 Issue 92 (Friday, May 10, 2024)</title>
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[Federal Register Volume 89, Number 92 (Friday, May 10, 2024)]
[Rules and Regulations]
[Pages 40369-40372]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-10280]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 89, No. 92 / Friday, May 10, 2024 / Rules and
Regulations
[[Page 40369]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, and 758
[Docket No. 240506-0127]
RIN 0694-AJ65
Conforming and Clarifying Changes to the Export Administration
Regulations (EAR)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: This final rule makes conforming and clarifying changes to the
Export Administration Regulations (EAR). These changes include making
conforming changes to the EAR to ensure that destination names reflect
the current destination names that are recognized by the United States
Government, clarifying the removal of certain license requirements for
exports, reexports, and transfers (in-country) to and within Australia
and the United Kingdom, making a conforming change to reflect that
Cyprus is no longer a Country Group D:5 country, and clarifying how
Russia and the Russian Federation are referenced for consistency with
the designation of Russia as a U.S. Arms Embargoed destinations.
DATES: This rule is effective May 30, 2024.
FOR FURTHER INFORMATION CONTACT: For questions on this rule, contact
Philip Johnson at <a href="/cdn-cgi/l/email-protection#673537235527050e144903080449000811"><span class="__cf_email__" data-cfemail="da888a9ee89ab8b3a9f4beb5b9f4bdb5ac">[email protected]</span></a> or (202) 482-2440.
SUPPLEMENTARY INFORMATION:
I. Background
BIS is amending the EAR (15 CFR parts 730-774) by making conforming
changes to the EAR to ensure that destination names reflect the current
destination names that are recognized by the United States Government,
by making conforming changes to ensure that the EAR reflects amendments
and description of those amendments made pursuant to two recent rules,
by making a conforming change to reflect that Cyprus is no longer a
Country Group D:5 country, and by clarifying how Russia and the Russian
Federation are referenced in the EAR to ensure consistency with the
designation of Russia as a U.S. Arms Embargoed destination.
The four sets of changes this final rule makes are described in
section II as follows:
A. Conforming changes to the Commerce Country Chart and Country
Groups to ensure consistency with destinations names that are
recognized by the United States Government;
B. Conforming changes to the Commerce Country Chart entries for
Australia and the United Kingdom;
C. Conforming change to reflect Cyprus is no longer a Country Group
D:5 country; and
D. Removing obsolete references to Russia and the Russian
Federation in provisions that predate the country's addition to Country
Group D:5.
II. Regulatory Changes
A. Conforming Changes to the Commerce Country Chart and Country Groups
To Ensure Consistency With Destination Names That Are Recognized by the
United States Government
This final rule in supplement no. 1 to part 738 (Commerce Country
Chart) removes Swaziland from the Commerce Country Chart and replaces
it, in alphabetical order, with Eswatini. On April 19, 2018, King
Mswati III declared that the country be known as the Kingdom of
Eswatini, rather than the Kingdom of Swaziland. BIS makes this change
to conform to King Mswati III's declaration, as subsequently formally
recognized by the State Department (see <a href="https://www.state.gov/countries-areas/eswatini/">https://www.state.gov/countries-areas/eswatini/</a>). This final rule also removes Macedonia (The
Former Yugoslav Republic of) from the Commerce Country Chart and
replaces it, in alphabetical order, with North Macedonia. BIS makes
this change to the conform to the State Department's formal recognition
of the new name in February 2019 (see <a href="https://history.state.gov/countries/macedonia">https://history.state.gov/countries/macedonia</a>). Lastly, this final rule removes Turkey from the
Commerce Country Chart and replaces it, in alphabetical order, with
T[uuml]rkiye. BIS makes this change to conform to the State
Department's recognition on January 9, 2023 of the new country's new
name (see <a href="https://www.state.gov/countries-areas/turkey/">https://www.state.gov/countries-areas/turkey/</a>). This rule
revises only the names of the three countries; the information set
forth in each of the three entries otherwise remains the same.
As a conforming change to the changes made to the Commerce Country
Chart described above, this final rule removes Swaziland from Country
Group B in supplement no. 1 to part 740, Country Groups), and replaces
it (in alphabetical order) with Eswatini. Similarly, this rule removes
Macedonia (the Former Yugoslav Republic of) from Country Group B and
replaces it, in alphabetical order, with North Macedonia.
B. Conforming Changes to Commerce Country Chart Entries for Australia
and the United Kingdom
This final rule also revises the Commerce Country Chart entries for
Australia and the United Kingdom in supplement no. 1 to part 738 to
align with the policy decisions and regulatory changes described and
implemented in the August 19, 2024 interim final rule, ``Export Control
Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced
Trilateral Security Partnership'' (89 FR 28594, published and effective
on April 19, 2024) (April 19 IFR). Specifically, the April 19 IFR
removed the license requirements for national security column 1 (NS1),
regional stability column 1 (RS1), and missile technology column 1
(MT1) reasons for control for these two countries, as well as the
footnote 3 designations for both of these countries, because the
license requirements referenced in footnote 3 were no longer
applicable.
This rule corrects inadvertent errors in which a subsequent interim
final rule, ``Revisions of Firearms License Requirements'' (89 FR
34680, published on April 30, 2024, and effective on May 30, 2024)
(April 30 IFR), erroneously included an ``X'' under the NS1, RS1, and
MT1 reasons for control for Australia and the United Kingdom and also
erroneously included the previously-applicable footnote 3 designation
for these two countries. This final rule revises the entries for
[[Page 40370]]
Australia and the United Kingdom by removing the license requirement
for NS1, RS1, and MT1, as well as the footnote 3 designation, for
consistency with the intended regulatory changes described in the April
19 IFR.
The changes in this final rule described under this section II.B
are limited to removing text (as described above) that inadvertently
appeared in the two Commerce Country Chart entries. The April 30 IFR
correctly removed the footnote 9 designation for Australia and the
United Kingdom. The April 30 IFR addressed the license requirement
described in footnote 9 for these two destinations by adding an ``X''
in the crime control column 2 (CC2) reason for control for these two
countries.
C. Conforming Change to Reflect the Fact That Cyprus is No Longer a
Country Group D:5 Country
The U.S. State Department recently amended Sec. 126.1 of the
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120
through 130) to specify that Cyprus's status as a proscribed
destination is suspended from October 1, 2023 through September 30,
2024 (see 88 FR 63016). Consistent with this change, Cyprus was
effectively removed from Country Group D:5. As set forth in the Note to
Country Group D:5 in supplement no. 1 to part 740 of the EAR, if there
are any discrepancies between the list of D:5 countries and the
countries identified by the Department of State as subject to a U.S.
arms embargo, the State Department's list shall be controlling. To
avoid confusion on the part of exporters, reexporters, and transferors,
this final rule removes Cyprus from D:5. D:5 was the only ``X'' in the
entry for Cyprus under Country Group D, so the entry is no longer
needed.
D. Removing, for Clarity, References to Russia and the Russian
Federation for Provisions That Also extend to Country Group D:5
The final rule, ``Implementation of Sanctions Against Russia Under
the Export Administration Regulations (EAR)'' (87 FR 12226, published
March 3, 2022, and effective February 24, 2022), included amendments to
supplement no. 1 to part 740 (Country Groups) of the EAR consistent
with the ITAR Sec. 126.1. The March 3 final rule updated the Country
Group designation for Russia in supplement no. 1 to part 740 to reflect
its identification by the Department of State as a country subject to a
United States arms embargo. As noted above, BIS harmonizes the arms
embargo-related provisions in the EAR with the Directorate of Defense
Trade Control's (DDTC's) regulation of arms embargoes in Sec. 126.1 of
the ITAR. Three sections of the EAR, which predated the March 18, 2021
(see 86 FR 14802) addition of Russia to Sec. 126.1 under the ITAR,
continued to separately identify Russia or the Russian Federation from
Country Group D:5. These references are unnecessary due to the fact
that Russia was subsequently added to Country Group D:5. Specifically,
this final rule revises Sec. 734.18(a)(5)(iv); Sec. 740.9(a)
introductory text (the fourth and seventh sentences) and paragraph
(b)(5)(ii); and Sec. 758.10, Note 1 to paragraph (b)(1), by removing
references to Russia or the Russian Federation when the same sentence
also refers to Country Group D:5. In the case of Sec. 740.9(b)(5)(ii),
the broader exclusion under paragraph (b)(5)(i) means the narrow
exclusion under (b)(5)(ii) should not include Russia, which is subject
to the broader exclusion as a Country Group D:5 country.
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), 50 U.S.C. 4801-
4852. ECRA, as amended, provides the legal basis for BIS's principal
authorities and serves as the authority under which BIS issues this
rule.
Rulemaking Requirements
1. BIS has examined the impact of this rule as required by
Executive Orders 12866, 13563, and 14094. Pursuant to E.O. 12866, as
amended by E.O. 14094, 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 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 an
information collection approved by OMB under control number 0694-0088,
Simplified Network Application Processing System. BIS does not
anticipate a change to the burden hours associated with this collection
as a result of this rule. Information regarding the collection,
including all supporting materials, can be accessed at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>.
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 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. Additionally, this rule is
exempt from the ordinary rulemaking requirements of the APA pursuant to
5 U.S.C. 553(a)(1) as a military or foreign affairs function of the
United States Government.
5. Because neither the APA 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 734
Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology.
15 CFR Part 738
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 758
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Exports, Reporting and recordkeeping requirements.
Accordingly, parts 734, 738, 740, and 758 of the Export
Administration Regulations (15 CFR parts 730-774) are amended as
follows:
PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
0
1. The authority citation for 15 CFR part 734 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. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp.,
p. 223; Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).
[[Page 40371]]
0
2. Section 734.18(a)(5) is amended by revising paragraph (a)(5)(iv) to
read as follows:
Sec. 734.18 Activities that are not exports, reexports, or
transfers.
(a) * * *
(5) * * *
(iv) Not intentionally stored in a country listed in Country Group
D:5 (see supplement no. 1 to part 740 of the EAR).
Note 1 to paragraph (a)(5)(iv): Data in-transit via the internet
is not deemed to be stored.
* * * * *
PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
0
3. The authority citation for 15 CFR part 738 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C.
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004;
42 U.S.C. 2139a; 15 U.S.C. 1824; 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.
0
4. Supplement no. 1 to part 738 is amended by:
0
a. Revising the entry for ``Australia'';
0
b. Adding an entry for ``Eswatini'' in alphabetical order;
0
c. Removing the entries for ``Macedonia (The Former Yugoslav Republic
of)'';
0
d. Adding an entry for ``North Macedonia'' in alphabetical order;
0
e. Removing the entry for ``Swaziland'';
0
f. Removing the entry for ``Turkey''; and
0
g. Adding an entry for ``T[uuml]rkiye'' in alphabetical order.
0
h. Revising the entry for the ``United Kingdom'';
The additions and revisions read as follows:
Supplement No. 1 to Part 738--Commerce Country Chart
* * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical & biological Nuclear National Missile Regional Firearms Crime control Anti-
weapons nonproliferation security tech stability convention ------------------------ terrorism
Countries ----------------------------------------------------------------------------------------------------------- ---------------
CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Australia.................................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
* * * * * * *
Eswatini..................................... X X ....... X ....... X X X X X ............ X X X
* * * * * * *
North Macedonia.............................. X X ....... X ....... X X X X X ............ X X X
* * * * * * *
T[uuml]rkiye................................. X ....... ....... ....... ....... X ....... X X ....... ............ ...... X
* * * * * * *
United Kingdom............................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
* * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * *
PART 740--LICENSE EXCEPTIONS
0
5. The authority citation for 15 CFR 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
6. Section 740.9 is amended by:
0
a. Removing ``Russia,'' in the fourth and seventh sentences of
paragraph (a) introductory text wherever it appears; and
0
b. Removing ``Russia,'' in paragraph (b)(5)(ii) wherever it appears.
0
7. Supplement no. 1 to part 740 is amended by:
0
a. In the ``Country Group A'' and ``Country Group B'' tables, removing
the entry for ``Turkey'' and adding an entry for ``T[uuml]rkiye'' in
alphabetical order;
0
b. In the ``Country Group B'' table:
0
i. Adding an entry for ``Eswatini'' in alphabetical order;
0
i. Removing the entry for ``Macedonia, The Former Yugoslav Republic
of'', and adding an entry for ``North Macedonia'' in alphabetical
order;
0
ii. Removing the entry for ``Swaziland''; and
0
c. In the ``Country Group D'' table, removing the entry for Cyprus.
The additions and revisions read as follows:
Supplement No. 1 to Part 740--Commerce Country Chart
Country Group A
--------------------------------------------------------------------------------------------------------------------------------------------------------
[A:2] Missile [A:4]
[A:1] Wassenaar technology [A:3] Nuclear
Country participating control regime Australia suppliers [A:5] [A:6]
states \1\ \2\ group group \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
T[uuml]rkiye.................................................. X 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:2 is a list of the Missile Technology Control Regime countries, except for Russia.
\3\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC), Russia, and Belarus.
[[Page 40372]]
* * * * *
Country Group B--Countries
* * * * *
Eswatini
* * * * *
North Macedonia
* * * * *
T[uuml]rkiye
* * * * *
PART 758--EXPORT CLEARANCE REQUIREMENTS AND AUTHORITIES
0
8. The authority citation for 15 CFR part 758 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
9. Section 758.10 is amended by removing ``Russia,'' in Note 1 to
paragraph (b)(1) wherever it appears.
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2024-10280 Filed 5-8-24; 11:15 am]
BILLING CODE 3510-33-P
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