[Federal Register Volume 83, Number 150 (Friday, August 3, 2018)]
[Rules and Regulations]
[Pages 38021-38023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16612]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 740
[Docket No. 180228230-8230-01]
RIN 0694-AH52
Revision of Export and Reexport License Requirements for Republic
of South Sudan Under the Export Administration Regulations
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) is
amending the Export Administration Regulations (EAR) to conform to the
Department of State's (State) amendment of February 14, 2018 to the
International Traffic in Arms Regulations (ITAR) that placed
restrictions on exports of defense articles (and defense services) to
the Republic of South Sudan (South Sudan). The State action reflected a
policy determination by the Secretary of State
[[Page 38022]]
that it was in the best interests of U.S. foreign policy to impose such
restrictions.
Consistent with the State action, in this amendment, BIS is
updating the EAR to restrict the export and reexport of certain items
on the Commerce Control List to South Sudan. Pursuant to established
procedure, BIS adds South Sudan to the list of U.S. embargoed countries
under the EAR, a list drawn from the list of arms embargoes in the ITAR
and State Federal Register notices, and adopts a restrictive license
application review policy consistent with State's review policy set
forth in the ITAR.
DATES: This rule is effective August 3, 2018.
FOR FURTHER INFORMATION CONTACT: Steven Schrader, Foreign Policy
Division, Bureau of Industry and Security, Phone: 202-482-4252, Email:
[email protected].
SUPPLEMENTARY INFORMATION:
Background
In a rule effective July 9, 2011, the date the United States
granted formal recognition to South Sudan, BIS amended the EAR to add
the new country to the Commerce Country Chart set forth in Supplement
No. 1 to part 740 and imposed controls on exports and reexports of
items subject to the EAR to the destination. See 76 FR 41046 (July 13,
2011). In that rule, BIS added South Sudan to Country Group B in
Supplement No. 1 to Part 740 (Country Groups), a grouping that rendered
the country eligible for certain License Exceptions not available to
countries in Country Groups D or E.
In this rule, BIS amends Supplement No.1 to Part 740 (Country
Groups) of the EAR to place South Sudan in Country Group D:5--U.S.
Embargoed Countries--to conform with a final rule published by State
that revised ITAR Sec. 126.1 (Prohibited exports, imports, and sales
to or from certain countries) by adding South Sudan in new paragraph
(w). See 83 FR 6457 (February 14, 2018). The ITAR amendment reflected a
determination by the Secretary of State that it was in the best
interests of U.S. foreign policy to impose such restrictions in order
to reflect the U.S. government's opposition to the trade of arms to
South Sudan and its contribution to the conflict and humanitarian
crisis in that country, promote the cessation of hostilities, and to
reinforce a unified international response by aligning the United
States with existing European Union restrictions on certain exports to
South Sudan. As a consequence of the ITAR amendment, a policy of denial
applies to applications for licenses or other approvals for the export
of defense articles and defense services destined for South Sudan. A
license or other approval may be issued on a case-by-case basis for six
enumerated categories of defense articles and defense services, as set
forth in ITAR Sec. 126.1(w) (South Sudan).
BIS primarily implements such controls through Country Group D:5.
Countries listed in Country Group D:5 are subject to additional
restrictions in the EAR, including on de minimis U.S. content, license
exception availability, and licensing policy for certain items. License
applications for the export or reexport of items classified under 9x515
or ``600 series'' Export Control Classification Numbers 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
(National security) and paragraph (b)(1) of Sec. 742.6 (Regional
stability) of the EAR.
The list of ``United States arms embargoed'' countries is intended
to mirror ITAR Sec. 126.1's list of countries subject to U.S. arms
embargoes and track Federal Register notices published by State. BIS
amends the list of Country Group D:5 countries as needed to conform to
amendments to ITAR Sec. 126.1 that State publishes, including
additions or deletions of countries subject to United States arms
embargoes. See footnote one to Country Group D:5. In implementing
United States embargoes in the EAR, BIS is adopting the policies for
each country listed in section 126.1 of the ITAR. See 78 FR 22660,
22675 (April 16, 2013).
Consistent with new Sec. 126.1(w) (South Sudan) of the ITAR, the
BIS licensing policy for the export and reexport of 9x515 and ``600
series'' items on the Commerce Control List, Supp. No. 1 to part 774,
destined for South Sudan is a policy of denial that recognizes six
categories of case-by-case approval. See ITAR Sec. 126.1(w)(1)-(6),
which describes these categories in detail.
Specific Amendment Implementing Revisions To Export and Reexport
License Requirements for South Sudan Under the EAR
Part 740 of the EAR
BIS amends Supplement No. 1 to Part 740 of the EAR to place ``South
Sudan, The Republic of'', in alphabetical order, in Country Group D:5.
Export Administration Act of 1979
Although the Export Administration Act of 1979 expired on August
20, 2001, the President, through Executive Order 13222 of August 17,
2001, 3 CFR, 2001 Comp., p. 783 (2002), as amended by Executive Order
13637 of March 8, 2013, 78 FR 16129 (March 13, 2013) and as extended by
the Notice of August 15, 2017, 82 FR 39005 (August 16, 2017), has
continued the Export Administration Regulations in effect under the
International Emergency Economic Powers Act. BIS continues to carry out
the provisions of the Export Administration Act of 1979, 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, distributive 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 rule has been designated to be not a significant
regulatory action, for purposes of Executive Order 12866. This rule is
not subject to the requirements of E.O. 13771 (82 FR 9339, February 3,
2017) because it is not significant under 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 OMB control number. This rule involves collections of information
approved under OMB control number 0694-0088--Simplified Network
Application Processing+ System (SNAP+) and the Multipurpose Export
License Application, which carries an annual estimated burden of 31,833
hours; and 0694-0137--License Exceptions and Exclusions, which carries
an annual estimated burden of 29,998. BIS believes that this rule will
have no significant impact on those burdens.
Send comments regarding this burden estimate or any other aspect of
this
[[Page 38023]]
collection of information, including suggestions for reducing the
burden, to Jasmeet K. Seehra, Office of Management and Budget, by email
at [email protected] or by fax to (202) 395-7285.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking and the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military or foreign affairs function
of the United States (see 5 U.S.C. 553(a)(1)). This rule implements a
necessary update of the status of South Sudan as a U.S. embargoed
country, consistent with the prohibitions implemented in the ITAR by
the Department of State. This rule also serves to prevent confusion by
the public as to the current EAR export and reexport license
requirements applicable to South Sudan. A delay in the effective date
would frustrate the achievement of this goal. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule. Because a notice of proposed
rulemaking and an opportunity for public comment are not required to be
given for this rule under 5 U.S.C. 553, or by any other law, the
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable.
List of Subjects in 15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, part 740 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:
PART 740--[AMENDED]
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1. The authority citation for part 740 continues to read as follows:
Authority: 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; Notice of
August 15, 2017, 82 FR 39005 (August 16, 2017).
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2. Amend Supplement No. 1 to Part 740 by adding, in alphabetical order,
an entry for ``South Sudan, Republic of'' under ``Country Group D'' to
read as follows:
SUPPLEMENT NO. 1 TO PART 740--COUNTRY GROUPS
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[GRAPHIC] [TIFF OMITTED] TR03AU18.002
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Dated: July 26, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-16612 Filed 8-2-18; 8:45 am]
BILLING CODE 3510-33-P