[Federal Register Volume 79, Number 149 (Monday, August 4, 2014)]
[Rules and Regulations]
[Pages 45088-45089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17961]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 774
[Docket No. 140711578-4578-01]
RIN 0694--AG23
Technical Amendments to the Export Administration Regulations:
Update of Export Control Classification Number 0Y521 Series
Supplement--Biosensor Systems and Related Software and Technology
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule; technical amendment.
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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends
the Export Administration Regulations (EAR) by removing certain entries
from the supplement that identifies those items subject to the EAR that
are not listed elsewhere in the Commerce Control List (CCL), but which
the Department of Commerce, with the concurrence of the Departments of
Defense and State, has determined should be controlled for export for
foreign policy reasons or because the items provide a significant
military or intelligence advantage to the United States. Within one
calendar year from the date that such items are listed in the
supplement, BIS must publish a rule reclassifying the items under an
entry on the CCL. Otherwise, such items automatically become designated
as EAR99 items, unless BIS publishes a rule amending the supplement to
extend the period in which the items will be listed therein. In
accordance with this requirement, this rule removes references to
biosensor systems and related ``software'' and ``technology'' from the
supplement, because these items automatically became designated as
EAR99 items on March 28, 2014, and the references to them in the
supplement are now obsolete.
DATES: This rule is effective August 4, 2014.
FOR FURTHER INFORMATION CONTACT: Scott Hubinger, Senior Chemist and
General Engineer, Chemical and Biological Controls Division, Office of
Nonproliferation and Treaty Compliance by phone 202-482-5223 or by
email at [email protected].
SUPPLEMENTARY INFORMATION:
Background
ECCN 0Y521 Series
BIS established the ECCN 0Y521 series in a final rule published
April 13, 2012 (72 FR 22191) (hereinafter ``April 13 rule'') to
identify items that warrant control on the Commerce Control List (CCL)
but are not yet identified in an existing ECCN. Items are added to the
ECCN 0Y521 series by the Department of Commerce, with the concurrence
of the Departments of Defense and State, upon a determination that an
item should be controlled because it provides at least a significant
military or intelligence advantage to the United States or because
foreign policy reasons justify such control. The ECCN 0Y521 series is a
temporary holding classification with a limitation that while an item
is temporarily classified under ECCN 0Y521, the U.S. Government works
to adopt a control through the relevant multilateral regime(s), to
determine an appropriate longer-term control over the item, or that the
item does not warrant control on the CCL.
Under the procedures established in the April 13 rule and codified
at Sec. 742.6(a)(7)(iii) of the EAR, items classified under ECCN 0Y521
remain so-classified for one year from the date a final rule
identifying the item is published in the Federal Register amending the
EAR, unless the item is re-classified under a different ECCN, under an
EAR99 designation, or the 0Y521 classification is extended. During this
time, the U.S. Government determines whether it is appropriate to
submit a proposed control to the applicable export control regime
(e.g., the Wassenaar Arrangement) for potential multilateral control,
with the understanding that multilateral controls are preferable when
practical.
Technical Amendments Updating Supplement No. 5 to Part 774: Removal of
References to Biosensor Systems and Related ``Software'' and
``Technology''
On March 28, 2013 (78 FR 18814), BIS imposed 0Y521 license
requirements on biosensor systems and related ``software'' and
``technology'' for export and reexport to all destinations, except
Canada. Under the procedures established in the April 13 rule and as
described in Supplement No. 5 to Part 774, the effective date of the
initial classification was the date of that rule's publication, March
28, 2013, and the date the items would be designated EAR99, unless
reclassified in another ECCN or the 0Y521 classification was reissued,
was one year later, March 28, 2014. In the interim, BIS, on behalf of
the U.S. Government, submitted a proposal to the Australia Group (a
multilateral regime of which the United States is a member) for control
of the items for nonproliferation reasons. The Australia Group decided
that it would not impose controls on the items, and the U.S. Government
did not seek further consideration of multilateral controls, nor did
BIS re-classify the items under a different ECCN or reissue the 0Y521
classification. In accordance with Sec. 742.6(a)(7)(iii) of the EAR,
as of March 28, 2014, the 0Y521 classification of the biosensor systems
and related ``software'' and ``technology'' expired, meaning the items
were no longer classified in the 0Y521 series and became designated
EAR99. By removing the items from the list of items classified in the
0Y521 series in Supplement No. 5 to Part, this rule removes text that
[[Page 45089]]
imposes no license requirement but has potential to confuse readers
about the items' EAR99 status.
Further, BIS received two comments in response to the March 28,
2013 interim final rule. One commenter stated that designating the
Biosensor System No. 1 0A521 without license exception options other
than License Exception GOV section 740.11(b)(2)(ii) may result in
regulating the item more restrictively than it would under the ITAR and
may result in ``chilling effects toward academic research and thereby
diminish innovation.'' Another commenter raised concerns that the scope
of what is covered by the No.1 0E521 ``Technology'' might be overly
broad without a reference to the General Technology Note and that BIS
should provide guidance on how to interpret the scope. The change of
status of the biosensor systems and related ``software'' and
``technology'' to EAR99 renders the comments moot.
Therefore, in this rule, BIS amends the EAR to update certain
entries in Supplement No. 5 to Part 774-- Items Classified Under Export
Control Classification Numbers (ECCNs) 0A521, 0B521, 0C521, 0D521 and
0E521--according to the procedure set forth in the April 13 rule that
established the 0Y521 series. Specifically, in this rule, BIS removes
references to biosensor systems and related ``software'' and
``technology'' under ECCNs 0A521 No. 1, 0D521 No. 1 and 0E521 No. 1,
respectively, from Supplement No. 5 to Part 774 of the EAR to conform
with the current legal status of those items under the EAR and rid the
Supplement of obsolete references. The items are EAR99 and the 0Y521
series license requirements do not apply. This is a technical amendment
that only updates Supplement No. 5 to Part 774 of the EAR. It does not
alter any right, obligation or prohibition under the EAR.
Export Administration Act
Since August 21, 2001, the Export Administration Act has been in
lapse and the President, through Executive Order 13222 of August 17,
2001 (3 CFR, 2001 Comp., 783 (2002)), as amended by Executive Order
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013), and extended most
recently by the Notice of August 8, 2013, 78 FR 49107 (August 12,
2013), has continued the EAR in effect under the International
Emergency Economic Powers Act. BIS continues to carry out the
provisions of the Export Administration Act, as appropriate and to the
extent permitted by law, pursuant to Executive Order 13222 as amended
by Executive Order 13637.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This final rule has been determined to be not significant
for purposes 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
does not involve any collection of information.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. The Department finds that there is good cause under 5 U.S.C.
553(b)(3)(B) to waive the provisions of the Administrative Procedure
Act requiring prior notice and the opportunity for public comment
because they are unnecessary. This rule only updates Supplement No. 5
to Part 774 to the EAR by removing references to certain items to make
the Supplement conform to the current legal status of those items under
the EAR. These revisions are merely technical and reflect what already
is in effect under the EAR in accordance with established procedure,
and the procedure itself was proposed to the public and the subject of
public comment. This rule clarifies information, which serves to avoid
confusing readers about the items' EAR99 status. It does not alter any
right, obligation or prohibition that applies to any person under the
EAR. Because these revisions are not substantive changes, it is
unnecessary to provide notice and opportunity for public comment. In
addition, the 30-day delay in effectiveness required by 5 U.S.C. 553(d)
is not applicable because this rule is not a substantive rule. 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.
List of Subjects in 15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
Accordingly, Part 774 of the Export Administration Regulations (15
CFR Parts 730-774) is amended as follows:
PART 774--[AMENDED]
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1. The authority citation for part 774 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 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; Notice of August 8, 2013, 78 FR 49107 (August 12, 2013).
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2. Supplement No. 5 to Part 774--Items Classified Under ECCNs Items
Classified Under Export Control Classification Numbers (ECCNs) 0A521,
0B521, 0C521, 0D521 and 0E521--is amended by:
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a. Removing and reserving the entire entry for item ``No. 1 Biosensor
systems and dedicated detecting components'' under the section ``0A521.
Systems, Equipment and Components'';
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b. Removing and reserving the entire entry for item ``No. 1 0D521
``Software'' for the function of Biosensor Systems controlled by ECCN
0A521.'' under section ``0D521. Software''; and
0
c. Removing and reserving the entire entry for item ``No. 1 0E521
``Technology for the ``development'' or ``production'' of Biosensor
Systems controlled by ECCN 0A521.'' under section ``0E521.
Technology''.
Dated: July 25, 2014.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2014-17961 Filed 8-1-14; 8:45 am]
BILLING CODE 3510-33-P