[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Rules and Regulations]
[Pages 65931-65934]
[FR Doc No: 2015-27442]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 150825776-5776-01]
RIN 0694-AG69

Amendments to Existing Validated End-User Authorizations in the
People's Republic of China

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) amends
the Export Administration Regulations (EAR) to revise the existing
authorizations for Validated End Users Advanced Micro-Fabrication
Equipment, Inc., China (AMEC) and Applied Materials (China), Inc. (AMC)
in the People's Republic of China (PRC). Specifically, BIS amends
Supplement No. 7 to Part 748 of the EAR to add one item to AMEC's list
of eligible items that may be exported, reexported or transferred (in
country) to the company's eligible facility in the PRC, and to add a
facility and an item to Validated End User AMC's list of eligible
destinations and eligible items.

DATES: This rule is effective October 28, 2015.

FOR FURTHER INFORMATION CONTACT: End-User Review Committee, Office of
the Assistant Secretary, Export Administration, Bureau of Industry and
Security, U.S. Department of Commerce, Phone:<PHONE_NUMBER>; Fax: 202-
482-3911; Email<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User

    Validated End-Users (VEUs) are designated entities located in
eligible destinations to which eligible items may be exported,
reexported, or transferred (in-country) under a general authorization
instead of a license. The names of the VEUs, as well as the dates they
were so designated, and their respective eligible destinations and
items are identified in Supplement No. 7 to part 748 of the EAR. Under
the terms described in that supplement, VEUs may obtain eligible items
without an export license from BIS, in conformity with Section 748.15
of the EAR. Eligible items vary between VEUs and may include
commodities, software, and technology, except those controlled for
missile technology or crime control reasons on the Commerce Control
List (CCL) (part 774 of the EAR).
    VEUs are reviewed and approved by the U.S. Government in accordance
with the provisions of Section 748.15 and Supplement Nos. 8 and 9 to
part 748 of the EAR. The End-User Review Committee (ERC), composed of
representatives from the Departments of State, Defense, Energy, and
Commerce, and other agencies, as appropriate, is responsible for
administering the VEU program. BIS amended the EAR in a final rule
published on June 19, 2007 (72 FR 33646), to create Authorization VEU.

Amendments to Existing VEU Authorization for Advanced Micro-Fabrication
Equipment Inc. China (AMEC) and Applied Materials (China) Inc. (AMC) in
the People's Republic of China

Revision to the List of ``Eligible Items (by ECCN)'' for AMEC

    In this final rule, BIS amends Supplement No. 7 to Part 748 to add
one Export Control Classification Number (ECCN), 3B001.a.2, to the list
of items that may be exported, reexported or transferred (in country)
to AMEC's facility in the PRC under Authorization VEU. This amendment
is made in response to a request from AMEC and upon the ERC's
determination that adding the additional ECCN is authorized under
Section 748.15 of the EAR. The revised list of eligible items for AMEC
is as follows:

Eligible Items (by ECCN) That May Be Exported, Reexported or
Transferred (In Country) to the Eligible Destination Identified Under
AMEC's Validated End-User Authorization

    2B230, 3B001.a.2, 3B001.c and 3B001.e (items classified under ECCNs
3B001.a.2, 3B001.c, and 3B001.e are limited to components and
accessories).

Revision to the List of ``Eligible Items (by ECCN)'' and List of
``Eligible Destinations'' for AMC

    In this rule, BIS also amends Supplement No. 7 to Part 748 to add
an eligible facility, Applied Materials (China), Inc.--Headquarters, to
AMC's authorized list of ``Eligible Destinations.'' Further, BIS
authorizes one ECCN, 3E001 (limited to ``technology'' according to the
General Technology Note for the ``development,'' or ``production'' of
items controlled by ECCN 3B001), for the list of items which may be
exported, reexported or transferred (in country) to that facility in
the PRC under AMC's Authorization VEU. These amendments are made in
response to a request from AMC and upon the ERC's determination that
adding the additional facility and additional ECCN is authorized under
Section 748.15 of the EAR. The new eligible facility and related
eligible items, identified by three asterisks in Supplement No. 7 to
Part 748, for AMC are as follows:

New Eligible Destination, Applied Materials (China), Inc.--
Headquarters, 1388 Zhangdong Road, Bldg. 22, Zhangiang Hi-Tech Park,
Pudong, Shanghai, 201203, China
Eligible Item (by ECCN) That May Be Exported, Reexported or Transferred
(In Country) to the Applied Materials (China), Inc.--Headquarters
Eligible Destination Identified Under AMCs Validated End-User
Authorization, 3E001 (limited to ``technology'' according to the
General Technology Note for the ``development'' or ``production'' of
items controlled by ECCN 3B001)

Export Administration Act

    Although the Export Administration Act 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 7, 2015, 80 FR 48233 (August 11, 2015), 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, 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, reducing costs, harmonizing rules, and promoting flexibility.
This rule has been determined to be not significant for purposes of
Executive Order 12866.
    2. This rule involves collections previously approved by the Office
of Management and Budget (OMB) under Control Number 0694-0088, ``Multi-
Purpose Application,'' which carries a burden hour estimate of 43.8
minutes to prepare and submit form BIS-748; and for recordkeeping,
reporting and review requirements in connection with Authorization VEU,
which carries an estimated burden of 30 minutes per submission. This
rule is expected to result in a decrease in license applications
submitted to BIS. Total burden hours associated with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB Control
Number 0694-0088 are not expected to increase significantly as a result
of this rule. Notwithstanding any other provisions of law, no person is
required to respond to, nor be subject to a penalty for failure to
comply with a collection of information subject to the requirements of
the PRA, unless that collection of information displays a currently
valid OMB Control Number.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
    4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive requirements that this rule be
subject to notice and the opportunity for public comment because they
are unnecessary. In determining whether to grant VEU designations, a
committee of U.S. Government agencies evaluates information about and
commitments made by candidate companies, the nature and terms of which
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for
evaluation by the committee are set forth in 15 CFR 748.15(a)(2). The
information, commitments, and criteria for this extensive review were
all established through the notice of proposed rulemaking and public
comment process (71 FR 38313 (July 6, 2006) (proposed rule), and 72 FR
33646 (June 19, 2007) (final rule)). Given the similarities between the
authorizations provided under the VEU program and export licenses (as
discussed further below), the publication of this information does not
establish new policy. In publishing this final rule, BIS adds eligible
destinations and items to two existing eligible VEUs. These changes
have been made within the established regulatory framework of the VEU
program. Further, this rule does not abridge the rights of the public
or eliminate the public's option to export under any of the forms of
authorization set forth in the EAR.
    Publication of this rule in other than final form is unnecessary
because the authorizations granted in the rule are consistent with the
authorizations granted to exporters for individual licenses (and
amendments or revisions thereof), which do not undergo public review.
In addition, as with license applications, VEU authorization
applications contain confidential business information, which is
necessary for the extensive review conducted by the U.S. Government in
assessing such applications. This information is extensively reviewed
according to the criteria for VEU authorizations, as set out in 15 CFR
748.15(a)(2). Additionally, just as the interagency reviews license
applications, the authorizations granted under the VEU program involve
interagency deliberation and result from review of public and non-
public sources, including licensing data, and the measurement of such
information against the VEU authorization criteria. Given the nature of
the review, and in light of the parallels between the VEU application
review process and the review of license applications, public comment
on this authorization and subsequent amendments prior to publication is
unnecessary. Moreover, because, as noted above, the criteria and
process for authorizing and administering VEUs were developed with
public comments, allowing additional public comment on this amendment
to individual VEU authorizations, which was determined according to
those criteria, is unnecessary.
    Section 553(d) of the APA generally provides that rules may not
take effect earlier than thirty (30) days after they are published in
the Federal Register. However, BIS finds good cause to waive the 30-day
delay in effectiveness for this rule pursuant to 5 U.S.C. 553(d)(3)
because the delay would be contrary to the public interest. BIS is
simply amending the authorization of two existing VEUs by adding an
ECCN and a facility for one and an ECCN for the other to the list of
eligible items that may be sent to them, consistent with established
objectives and parameters administered and enforced by the responsible
designated departmental representatives to the End-User Review
Committee. Delaying this action's effectiveness would likely cause
confusion regarding which items are authorized by the U.S. Government
and in turn stifle the purpose of the VEU Program. Accordingly, it is
contrary to the public interest to delay this rule's effectiveness.
    No other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this final rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required under the APA or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. As a result, no final regulatory flexibility
analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 748

    Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.

    Accordingly, part 748 of the EAR (15 CFR parts 730-774) is amended
as follows:

PART 748--[AMENDED]

0
1. The authority citation for Part 748 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 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 7, 2015, 80 FR
48233 (August 11, 2015).

0
2. Amend Supplement No. 7 to part 748, under ``China (People's Republic
of),'' by revising the entries for ``Advanced Micro-Fabrication
Equipment, Inc., China'' and ``Applied Materials (China), Inc.'' to
read as follows:

  Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): List of Validated End-Users, Respective
                   Items Eligible for Export, Reexport and Transfer, and Eligible Destinations
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                                    Validated  end-   Eligible items (by       Eligible        Federal Register
             Country                     user                ECCN)            destination          citation
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 Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
                                              to Sec.   748.15(c).
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                                                  * * * * * * *
                                  Advanced Micro-     2B230, 3B001.a.2,   Advanced Micro-     78 FR 41291, 7/10/
                                   Fabrication         3B001.c and         Fabrication         13. 80 FR [INSERT
                                   Equipment, Inc.,    3B001.e (items      Equipment, Inc.,    PAGE NUMBER], 10/
                                   China.              classified under    188 Taihua Road,    28/15.
                                                       ECCNs 3B001.a.2,    Jinqiao Export
                                                       3B001.c and         Processing Zone
                                                       3B001.e are         (South Area),
                                                       limited to          Pudong, Shanghai
                                                       components and      201201, China.
                                                       accessories).
                                  Applied Materials   These Items         * Applied           72 FR 59164, 10/19/
                                   (China), Inc.       Authorized for      Materials South     07. 74 FR 19382,
                                                       those Applied       East Asia Pte.      4/29/09. 75 FR
                                                       Materials           Ltd.--Shanghai      27185, 5/14/10.
                                                       Destinations        Depot, c/o          77 FR 10953, 2/24/
                                                       Identified by one   Shanghai Applied    12. 80 FR,
                                                       asterisk (*):,      Materials           [INSERT PAGE
                                                       2B006.b, 2B230,     Technical Service   NUMBER], 10/28/
                                                       2B350.g.3,          Center, No. 2667    15.
                                                       2B350.i, 3B001.a,   Zuchongzhi Road,
                                                       3B001.b, 3B001.c,   Shanghai, China
                                                       3B001.e, 3B001.f,   201203.
                                                       3C001, 3C002,      * Applied
                                                       3D002 (limited to   Materials South
                                                       ``software''        East Asia Pte.
                                                       specially           Ltd.--Beijing
                                                       designed for the    Depot, c/o
                                                       ``use'' of stored   Beijing Applied
                                                       program             Materials
                                                       controlled items    Technical Service
                                                       classified under    Center, No. 1
                                                       ECCN 3B001).        North Di Sheng
                                                                           Street, BDA,
                                                                           Beijing, China
                                                                           100176..
                                                                          * Applied
                                                                           Materials South
                                                                           East Asia Pte.
                                                                           Ltd.--Wuxi Depot,
                                                                           c/o Sinotrans
                                                                           Jiangsu Fuchang
                                                                           Logistics Co.,
                                                                           Ltd., 1 Xi Qin
                                                                           Road, Wuxi Export
                                                                           Processing Zone,
                                                                           Wuxi, Jiangsu,
                                                                           China 214028.
                                                                          * Applied
                                                                           Materials South
                                                                           East Asia Pte.
                                                                           Ltd.--Wuhan
                                                                           Depot, c/o Wuhan
                                                                           Optics Valley
                                                                           Import & Export
                                                                           Co., Ltd., No.
                                                                           101 Guanggu Road,
                                                                           East Lake High-
                                                                           Tec Development
                                                                           Zone, Wuhan,
                                                                           Hubei, China
                                                                           430074.
                                                                          * Applied
                                                                           Materials
                                                                           (China), Inc.--
                                                                           Shanghai Depot,
                                                                           No. 2667,
                                                                           Zuchongzhi Road,
                                                                           Shanghai, China
                                                                           201203.
                                                                          * Applied
                                                                           Materials
                                                                           (China), Inc.--
                                                                           Beijing Depot,
                                                                           No. 1 North Di
                                                                           Sheng Street,
                                                                           BDA, Beijing,
                                                                           China 100176.
                                                      These Items         ** Applied
                                                       Authorized for      Materials (Xi'an)
                                                       the Applied         Ltd., No. 28 Xin
                                                       Materials           Xi Ave., Xi'an
                                                       Destination         High Tech Park,
                                                       Identified by two   Export Processing
                                                       asterisks (**):     Zone, Xi'an,
                                                       2B006.b, 2B230,     Shaanxi, China
                                                       2B350.g.3,          710075.
                                                       2B350.i, 3B001.a,
                                                       3B001.b, 3B001.c,
                                                       3B001.e, 3B001.f,
                                                       3C001, 3C002,
                                                       3D002 (limited to
                                                       ``software''
                                                       specially
                                                       designed for the
                                                       ``use'' of stored
                                                       program
                                                       controlled items
                                                       classified under
                                                       ECCN 3B001), and
                                                       3E001 (limited to
                                                       ``technology''
                                                       according to the
                                                       General
                                                       Technology Note
                                                       for the
                                                       ``development''
                                                       or ``production''
                                                       of items
                                                       controlled by
                                                       ECCN 3B001).

                                                      This item is        *** Applied
                                                       authorized for      Materials
                                                       those Applied       (China), Inc.--
                                                       Materials           Headquarters,
                                                       Destination         1388 Zhangdong
                                                       Identified by       Road, Bldg. 22,
                                                       three asterisks     Zhangjiang Hi-
                                                       (***): 3E001        Tech Park,
                                                       (limited to         Pudong, Shanghai,
                                                       ``technology''      201203, China.
                                                       according to the
                                                       General
                                                       Technology Note
                                                       for the
                                                       ``development''
                                                       or ``production''
                                                       of items
                                                       controlled by
                                                       ECCN 3B001).

                                                  * * * * * * *
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    Dated: October 21, 2015.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2015-27442 Filed 10-27-15; 8:45 am]
 BILLING CODE 3510-33-P