[Federal Register Volume 86, Number 10 (Friday, January 15, 2021)]
[Rules and Regulations]
[Pages 4865-4873]
[FR Doc No: 2021-00977]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 730, 734, 736, and 744

[Docket No.<PHONE_NUMBER>]
RIN 0694-AI38

Expansion of Certain End-Use and End-User Controls and Controls
on Specific Activities of U.S. Persons

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule.

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SUMMARY: The Bureau of Industry and Security (BIS), Department of
Commerce, is issuing this interim final rule to implement the
provisions of the Export Control Reform Act of 2018 by: imposing
additional license requirements under the Export Administration
Regulations (EAR) for exports, reexports, and transfers (in-country),
as well as specific activities of U.S. persons, in connection with
certain military-intelligence end uses and end users; clarifying that
license requirements under the EAR for specific activities of U.S.
persons apply even when the items at issue are not subject to the EAR;
establishing restrictions on transactions intended to circumvent
license requirements for listed entities; and expanding the scope of
activities subject to chemical and biological weapons and rocket
systems and unmanned aerial vehicles end-use controls.

DATES: Effective date: This rule is effective March 16, 2021. Comment
date: Comments must be received by BIS no later than March 1, 2021.

ADDRESSES: Comments on this rule may be submitted to the Federal
rulemaking portal (www.regulations.gov). The regulations.gov ID for
this rule is: BIS-2020-0044 or RIN 0694-AI38. All relevant comments
(including any personally identifying information) will be made
available for public inspection and copying. Follow the instructions
for submitting comments.
    All filers using the portal should use the name of the person or
entity submitting the comments as the name of their files, in
accordance with the instructions below. Anyone submitting business
confidential information should clearly identify the business
confidential portion at the time of submission, file a statement
justifying nondisclosure and referring to the specific legal authority
claimed, and also provide a non-confidential version of the submission.
    For comments submitted electronically containing business
confidential information, the file name of the business confidential
version should begin with the characters ``BC.'' Any page containing
business confidential information must be clearly marked ``BUSINESS
CONFIDENTIAL'' on the top of that page. The corresponding non-
confidential version of those comments must be clearly marked
``PUBLIC.'' The file name of the non-confidential version should begin
with the character ``P.'' The ``BC'' and ``P'' should be followed by
the name of the person or entity submitting the comments or rebuttal
comments. Any submissions with file names that do not begin with either
a ``BC'' or a ``P'' will be assumed to be public and will be made
publicly available through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Philip Johnson, Senior Advisor, Export
Enforcement, Bureau of Industry and Security, Phone:<PHONE_NUMBER>,
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    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 directs the President to control exports, reexports, and
transfers (in-country); as well as the activities of U.S. persons in
connection with nuclear, chemical, and biological weapons; whole plants
for chemical weapons precursors; missiles; foreign maritime nuclear
projects; and foreign military intelligence services. Accordingly, BIS
is amending parts 730, 734, 736, and 744 of the Export Administration
Regulations (EAR) (15 CFR parts 730 through 774) to implement such
controls. BIS is also making certain revisions to enhance existing end-
use and end-user controls under the EAR, including their
enforceability.

Restrictions on Specific Activities of U.S. Persons

    Section 1753(a)(2) of ECRA (50 U.S.C. 4812(a)(2)) directs the
President to impose controls on the activities of U.S. persons,
wherever located, relating to specific nuclear explosive devices,
missiles, chemical or biological weapons, whole plants for chemical
weapons precursors, foreign maritime nuclear projects, and foreign
military intelligence services. Additionally, section 1754(d) of ECRA
(50 U.S.C. 4813(d)) directs the Secretary of Commerce to require U.S.
persons to apply for and receive a license to engage in specific
activities in connection with nuclear explosive devices, missiles,
chemical or biological weapons, whole plants for chemical weapons
precursors, and foreign maritime nuclear projects, regardless of
whether such activities occur in connection with an export, reexport,
or transfer (in-country) of items subject to the EAR. Although section
1754(d)(2) of ECRA (50 U.S.C. 4813(d)(2)) does not specifically direct
the Secretary of Commerce to impose a license requirement on the
activities of U.S. persons in connection with foreign military
intelligence services, section 1754(a)(16) of ECRA (50 U.S.C.
4813(a)(16)) authorizes the Secretary to undertake any other action not
otherwise prohibited by law to carry out the authorities granted to the
President

in section 1753 of ECRA (50 U.S.C. 4812), which includes restrictions
on U.S. person activities in connection with foreign military
intelligence services (section 1753(a)(2)(F) of ECRA (50 U.S.C.
4812(a)(2)(F))).
    The EAR already restrict specific activities of U.S. persons in
connection with nuclear explosive devices, missiles, chemical and
biological weapons, and whole plants for chemical weapons precursors.
In accordance with ECRA, BIS is expanding these existing restrictions
to encompass activities of U.S. persons in connection with certain
military-intelligence end uses and end users. Specifically, BIS is
revising Sec. Sec.  730.5 and 734.5(a) of the EAR to reflect the
expanded scope of U.S. person activities subject to the EAR, as
described below, which include activities supporting certain military-
intelligence end uses and end users.
    The general categories of exports, reexports, and transfers (in-
country), as well as activities of U.S. persons, which are prohibited
absent a license from BIS are summarized in the ``General
Prohibitions'' found in Sec.  736.2 of the EAR. Specifically, Sec.
736.2(b)(7) of the EAR describes the types of U.S. person WMD
proliferation activity subject to a license requirement under the EAR.
In this rule, BIS is revising Sec.  736.2(b)(7) by harmonizing the
definition of ``U.S. person'' in that section with the definition of
that term as set forth in Sec.  772.1 of the EAR. Furthermore, BIS is
revising Sec.  736.2(b)(7) to broaden the prohibition, absent a license
from BIS, to include specific activities of U.S. persons in support of
certain military-intelligence end uses and end users pursuant to
sections 1753(a)(2)(F) and 1754(a)(16) of ECRA (50 U.S.C. 4812(a)(2)(F)
and 4813(a)(16)).
    The license requirements that apply to specific activities of U.S.
persons are described in Sec.  744.6 of the EAR. Section 744.6
currently contains restrictions on exports, reexports, and transfers
(in-country), as well as activities unrelated to exports (e.g.,
contracts, services, and employment), when connected with certain
nuclear explosive, missile, or chemical or biological weapons-related
activities, or whole plants for chemical weapons precursors. Section
1754(d)(1)(A) of ECRA (50 U.S.C. 4813(d)(1)(A)) specifies that controls
on the activities of U.S. persons apply even when the items at issue
``are not subject to control under this subchapter,'' (i.e., are not
``subject to the EAR''). Therefore, BIS is revising Sec.  744.6 to
replace the terms ``export'' and ``reexport'' with the acts of shipping
or transmitting to ensure that the controls set forth in that section
apply to foreign-origin items not subject to the EAR, as set forth in
ECRA.
    Furthermore, BIS is revising Sec.  744.6 to provide an illustrative
list of the types of activities unrelated to the shipment,
transmission, or transfer (in-country) of items that are subject to a
license requirement when undertaken by U.S. persons in connection with
the end uses or end users enumerated in that section. This list is
derived from the list of ``Specific Unlawful Acts'' set forth in
section 1760(a)(2)(E) of ECRA (50 U.S.C. 4819(a)(2)(E)). BIS is also
revising Sec.  744.6 to impose a license requirement on such activities
when a U.S. person knows the activity(ies) ``will support,'' as opposed
to ``will directly assist,'' any of the end uses or end users listed in
that section of the EAR. BIS is making this change in accordance with
section 1754(d)(1)(B) of ECRA (50 U.S.C. 4813(d)(1)(B)), which
authorizes the Secretary to implement controls on ``activities that may
support'' the end uses described in section 1754(d)(2) of ECRA (50
U.S.C. 4813(d)(2)); and in accordance with section 1754(a)(16) of ECRA
(50 U.S.C. 4813(a)(16)), which authorizes the Secretary to ``undertake
any other action as necessary to carry out this subchapter that is not
otherwise prohibited by law,'' which includes implementing controls on
the end uses and end users described in section 1753(a)(2) of ECRA (50
U.S.C. 4812(a)(2)).
    In accordance with section s 1753(a)(2)(F) and 1754(a)(16) of ECRA
(50 U.S.C. 4812(a)(2)(F) and 4813(a)(16)), BIS is also adding to Sec.
744.6 of the EAR a new restriction on the activities of U.S. persons in
support of certain military-intelligence end uses and end users. The
scope of military-intelligence end uses and end users subject to
control is defined in Sec.  744.22, as explained below. In addition,
BIS is expanding the destinations with respect to which the activities
of U.S. persons are restricted in connection with nuclear explosive
devices to include any country not listed in supplement no. 3 to part
744, for consistency with the restrictions on exports, reexports, and
transfers (in-country) of items for use in nuclear explosive
activities, as set forth in Sec.  744.2(a)(1) of the EAR. Likewise, BIS
is expanding the destinations with respect to which the activities of
U.S. persons are restricted in connection with certain ``missile'' end
uses pursuant to Sec.  744.6 to include Cuba, a unilaterally-embargoed
country listed in Country Group E:2 (see supplement no. 1 to part 740
of the EAR), but not also listed in Country Group D:4.
    ECRA directs the Secretary of Commerce to impose a license
requirement on specific activities of U.S. persons, ``except to the
extent authorized by a statute or regulation administered by a Federal
department or agency other than the Department of Commerce'' (50 U.S.C.
4813(d)(1)). To avoid overlapping license requirements across U.S.
government agencies, BIS is adding to Sec.  744.6 of the EAR a
provision defining the scope of U.S. person activities requiring a
license from BIS pursuant to that section to exclude any activity
subject to a license requirement or general prohibition administered by
another federal department or agency, to include the Departments of
Energy, State, or the Treasury.
    The Department of Energy administers controls on the transfer of
unclassified nuclear technology and assistance to foreign atomic energy
activities within the United States or abroad. Pursuant to Department
of Energy regulations at 10 CFR part 810, implementing section 57.b(2)
of the Atomic Energy Act of 1954, as amended (42 U.S.C. 2077(b)),
persons may engage, directly or indirectly, in the production or
development of special nuclear material outside the United States upon
authorization by the Secretary of Energy.
    The Department of State administers the International Traffic in
Arms Regulations (ITAR) (22 CFR parts 120 through 130) pursuant to the
Arms Export Control Act (AECA) (22 U.S.C. 2778). The ITAR include
controls on defense articles (22 CFR 120.6), which are described on the
U.S. Munitions List (USML) (22 CFR 121.1). In addition, the ITAR
control the performance of defense services (22 CFR 120.9), which may
include the furnishing of military training to foreign units and
forces, as well as the furnishing of assistance pertaining to defense
articles to foreign persons, or the furnishing to foreign persons of
any controlled technical data (22 CFR 120.10). The ITAR also regulate
brokering activities (see 22 CFR part 129), which include any action
undertaken on behalf of another to facilitate the manufacture, export,
permanent import, transfer, reexport, or retransfer of a U.S. or
foreign defense article or defense service enumerated on the USML and
those items designated in the U.S. Munitions Import List (USMIL) (27
CFR 447.21). The USML includes, inter alia, nuclear weapons-related
articles (Category XVI), missiles (Category IV), unmanned aerial
vehicles (Category VIII), and toxicological agents and associated
equipment (Category XIV). The USMIL includes, inter alia, nuclear
weapons design and test

equipment (Category XVI), missiles (Category IV), and toxicological
agents and equipment (Category XIV).
    The Department of the Treasury, through the Office of Foreign
Assets Control (OFAC), administers economic sanctions programs
governing transactions involving U.S. persons in connection with
certain sanctioned countries or entities pursuant to a number of
statutes and executive orders (see, inter alia, 31 CFR parts 500
through 599).
    Section 744.6 of the EAR does not, and is not intended to, control
the activities of U.S. persons subject to the regulatory controls
administered by other federal departments and agencies, to include the
Department of Energy, the Department of State, and the Department of
the Treasury. The purpose of Sec.  744.6 is to control those activities
of U.S. persons in connection with the end uses and end users
enumerated in that section, only if those activities are not already
subject to other federal regulatory controls.
    Finally, other U.S. laws, including criminal statutes, may prohibit
the performance of certain activities by a person subject to the
jurisdiction of the United States in connection with the end uses and
end users described in Sec.  744.6 even if that person has obtained a
BIS license. The issuance of a BIS license does not authorize ``U.S.
persons'' to engage in any conduct that is otherwise prohibited by U.S.
law, including any criminal statute.
    While Sec.  744.6 of the EAR imposes license requirements on
certain transactions of items not subject to the EAR, and certain
support activities, where a U.S. person is involved, BIS also notes
that controls on exports, reexports, and transfers (in-country) of
items subject to the EAR to nuclear-, missile-, chemical and biological
weapons-, and military-intelligence-related end uses and end users are
set forth in other sections of part 744, to include Sec. Sec.  744.2,
744.3, 744.4, and 744.22. Certain activities of U.S. or foreign persons
that facilitate exports, reexports, and transfers (in-country) that
require a license pursuant to those sections, where no such license has
been issued, are prohibited pursuant to Sec.  764.2 of the EAR.

Restrictions on Military-Intelligence End Uses and End Users

    This rule adds a new Sec.  744.22 to the EAR, which imposes
supplemental license requirements on the export, reexport, or transfer
(in-country) of all items subject to the EAR to military-intelligence
end uses and end users in China, Russia, or Venezuela; and countries
listed in Country Groups E:1 and E:2 (see supplement no. 1 to part 740
of the EAR). As previously discussed, section 1753(a)(2)(F) of ECRA (50
U.S.C. 4812(a)(2)(F)) directs the President to establish controls on
the activities of U.S. persons with respect to foreign military
intelligence services. This rule implements such controls by revising
Sec.  744.6 of the EAR as described above. Consistent with these
restrictions on the activities of U.S. persons, and in accordance with
the authority granted to the President in section 1753(a)(1) of ECRA
(50 U.S.C. 4812(a)(1)) and exercised by the Secretary of Commerce
pursuant to section 1754(a)(2) and (a)(16) of ECRA (50 U.S.C.
4813(a)(2) and (a)(16)), BIS believes it is appropriate to impose a
license requirement on exports, reexports, and transfers (in-country)
of all items subject to the EAR to the same military-intelligence end
uses and end users. Specifically, BIS believes controls on U.S. person
activities related to military-intelligence end uses and end users
described in Sec.  744.6 of the EAR would be of limited effect if not
implemented in tandem with a corresponding license requirement for
exports, reexports, and transfers (in-country). Although Sec.  744.21
of the EAR already imposes a license requirement on certain exports,
reexports, and transfers (in-country) to military end uses and military
end users, to include government intelligence and reconnaissance
organizations, in China, Russia, or Venezuela, the restrictions in
Sec.  744.21(a) of the EAR apply only to items identified in supplement
no. 2 to part 744 of the EAR, not to all items subject to the EAR.
Accordingly, the addition of Sec.  744.22 is warranted.
    Paragraphs (a) and (b) of Sec.  744.22 set forth license
requirements applicable to certain military-intelligence end uses and
end users, paragraph (c) of that section provides for the use of
License Exception GOV (Sec.  740.11(b)(2)(ii) of the EAR), and
paragraphs (d) and (e) outline the application procedures and review
policy that apply to license applications submitted pursuant to that
section. Section 744.22(f)(1) defines a ``military-intelligence end
use'' and Sec.  744.22(f)(2) defines a ``military-intelligence end
user'' and sets forth an illustrative list of military-intelligence end
users subject to the license requirements outlined in Sec.  744.22. The
imposition of a license requirement on exports, reexports, and
transfers (in-country) for a military-intelligence end use or end user
in the specified countries enhances U.S. national security by allowing
prior U.S. government review of transactions involving military
intelligence or reconnaissance organizations in countries subject to
existing military end-use and end-user controls, sanctions, or
embargoes.

Corresponding Change to Existing `Military End Use' and `Military End
User' Controls

    `Military-intelligence end users,' as defined in new Sec.
744.22(f)(2) of the EAR are a subset of the ``government intelligence
and reconnaissance organizations'' already included in the definition
of `military end user' in Sec.  744.21(g) of the EAR. However, the
license requirement in Sec.  744.21(a) only applies with respect to
items listed in supplement no. 2 to part 744 of the EAR, as opposed to
all items subject to the EAR, as set forth in Sec.  744.22(a).
Accordingly, Sec.  744.22 establishes a broader license requirement for
this subset of `military end users' already subject to license
requirements under Sec.  744.21. To avoid duplicate license
requirements and facilitate compliance, BIS is amending the definition
of `military end user' in Sec.  744.21(g) to exclude intelligence or
reconnaissance organizations of the armed forces or national guard.
Such intelligence or reconnaissance organizations will be subject to
the broader license requirements of Sec.  744.22; however, other
government intelligence or reconnaissance organizations, which are not
part of the armed services or national guard, will remain subject to
the license requirements of Sec.  744.21 of the EAR.

Restrictions on Certain Chemical and Biological Weapons End Uses

    Section 744.4 of the EAR sets forth restrictions on exports,
reexports, and transfers (in-country) to chemical and biological
weapons end uses anywhere in the world. BIS is revising Sec.  744.4 of
the EAR, consistent with sections 1753(a)(2)(D) and 1754(d)(2)(D) of
ECRA (50 U.S.C. 4812(a)(2)(D) and 4813(d)(2)(D)), to include
restrictions on exports, reexports, and transfers (in-country) of any
item subject to the EAR for use in the design, ``development,''
``production,'' operation, installation (including on-site
installation), maintenance (checking), repair, overhaul, or
refurbishing of a whole plant for chemical weapons precursors specified
in export control classification number (ECCN) 1C350, which controls
certain precursor chemicals listed in Schedules 2 and 3 of the Chemical
Weapons Convention and/or subject to control by the Australia Group.
The terms ``development'' and ``production'' are defined in Sec.  772.1
of the EAR. This

expansion of controls advances U.S. WMD nonproliferation policy, as set
forth in ECRA.

Activities Associated With Use

    The term ``use'' is defined in Sec.  772.1 of the EAR as
``operation, installation (including on-site installation, maintenance
(checking), repair, overhaul, and refurbishing.'' Sections 744.3 and
744.4 of the EAR, respectively, impose license requirements on all
items subject to the EAR when an exporter, reexporter, or transferor
(in-country) knows such items will be used in the ``design,
`development,' `production,' or use'' of certain rocket systems or
unmanned aerial vehicles; or in the ``design, `development,'
`production,' stockpiling, or use'' of chemical or biological weapons.
Likewise, Sec.  744.6 imposes a license requirement on specific
activities of U.S. persons in support of the ``design, `development,'
`production,' or use'' of nuclear explosive devices and rocket systems
or unmanned aerial vehicles; or the ``design, `development,'
`production,' stockpiling, or use'' of chemical or biological weapons.
The definition of ``use'' in Sec.  772.1 of the EAR, which appears in
general technology notes on the Commerce Control List (CCL) (supplement
no. 1 to part 774 of the EAR), resulted in a requirement for a WMD end
use to involve all of the activities listed in that definition in order
to trigger a ``use''-based license requirement under Sec. Sec.  744.3,
744.4, or 744.6 of the EAR. This is inconsistent with section
1754(d)(1)(B) of ECRA (50 U.S.C. 4813(d)(1)(B)), which lists the
component activities of the EAR definition of ``use'' as separate and
individually-sufficient activities for end-use control purposes.
Accordingly, BIS is revising each of those sections of the EAR to
replace the word ``use'' with a list of its component activities, i.e.,
``operation, installation (including on-site installation), maintenance
(checking), repair, overhaul, or refurbishing,'' to ensure that any one
of those activities individually triggers a license requirement under
the relevant sections of the EAR, when connected with certain WMD end
uses.

Additional Prohibition on Persons Informed by BIS of Transactions
Intended To Circumvent Entity List License Requirements

    The Entity List (supplement no. 4 to part 744 of the EAR) imposes a
supplemental license requirement, to the extent specified in each entry
on the Entity List, for exports, reexports, or transfers (in-country)
in which a listed entity is a party to the transaction as described in
Sec.  748.5(c) through (f) of the EAR. Entities may be added to the
Entity List in accordance with the procedures set forth in supplement
no. 5 to part 744 of the EAR if there is reasonable cause to believe
the entity has been involved, is involved, or poses a significant risk
of being or becoming involved in activities contrary to U.S. national
security or foreign policy interests.
    Although Entity List license requirements generally only apply to
listed entities, BIS has posted guidance on its website in the form of
frequently asked questions (FAQs) advising increased due diligence when
proceeding with transactions involving parties co-located with, or
which are subsidiaries, parent companies, or sister companies of,
listed entities. In such cases, exporters, reexporters, and transferors
should assess whether such entities are acting as an agent, front, or a
shell company for a listed entity in order to facilitate transactions
that would otherwise not be permissible, and whether the items intended
for export, reexport, or transfer (in-country) may ultimately be
destined to a listed entity.
    In certain cases, BIS may have information indicating that a
specific transaction, although not directly involving a listed entity,
nevertheless poses an unacceptable risk of diversion to a listed
entity. Likewise, BIS may have information that a specific entity,
although not itself listed on the Entity List, is acting on behalf of a
listed entity, or otherwise assisting a listed entity, in circumventing
Entity List license requirements. In such cases, BIS may wish to inform
an exporter, reexporter, or transferor that a license is required based
on an unacceptable risk that the items in question will ultimately be
used by, or diverted to, a listed entity. This is consistent with other
provisions of part 744 of the EAR (i.e., Sec. Sec.  744.2(b), 744.3(b),
744.4(b), 744.9(b), 744.17(b), 744.21(b), and 744.22(b)), which
authorize BIS to inform exporters, reexporters, or transferors of a
license requirement based on an unacceptable risk of use in, or
diversion to, specified end uses or end users.
    Furthermore, section 1754(a)(2) and (a)(15) of ECRA (50 U.S.C.
4813(a)(2) and (a)(15)) specifically authorize the Secretary of
Commerce to not only establish and maintain lists of foreign persons
determined to be a threat to the national security and foreign policy
of the United States, but also to inform persons, either individually
by specific notice, or through amendment to the EAR, that a license is
required for specific transactions. Accordingly, BIS is adding a new
paragraph (c) to Sec.  744.11 of the EAR, which authorizes BIS to
inform persons that a license is required for specified transactions,
or for transactions with specific parties, based on an unacceptable
risk that the items in question will be ultimately used by, or diverted
to, a listed entity.

Conforming Changes

    BIS is also making conforming changes to Sec.  744.1(a)(1) of the
EAR to reflect the expanded scope of U.S. person controls in Sec.
744.6, as well as new military-intelligence end-use and end-user
controls in Sec.  744.22, as implemented in this rule. In addition, BIS
is adding to Sec.  744.1(a)(1) a description of existing end-use and
end-user controls in Sec. Sec.  744.9, 744.17, and 744.18 of the EAR.
Finally, BIS is revising Sec.  744.1(b)(2) of the EAR to reference all
provisions of part 744 that set forth ``additional prohibitions on
persons informed by BIS,'' to include new Sec. Sec.  744.6(c),
744.11(c), and 744.22(b), as well as existing Sec. Sec.  744.9(b),
744.17(b), and 744.21(b), which were not previously listed in that
section.

Request for Comments

    BIS welcomes comments on the impact of this interim final rule.
Instructions for the submission of comments, including comments that
contain business confidential information, are found in the `Addresses'
section of this interim final rule.
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 provides the legal basis for BIS's principal authorities and
serves as the authority under which BIS issues this rule.
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 interim final rule has

been designated a ``significant regulatory action,'' although not
economically significant under section 3(f) of Executive Order 12866.
Although this rule is a significant regulatory action, it is a
regulation where the analysis demonstrates that the primary, direct
benefit is national security and is, thus, exempt from the provisions
of Executive Order 13771. This interim final rule will support the
national security and foreign policy objectives of the United States by
implementing controls on exports, reexports, and transfers (in-country)
related to whole plants for chemical weapons precursors and certain
military-intelligence end uses and end users, as well as the activities
of U.S. persons, with respect to such military-intelligence end uses
and end users. These controls are consistent with ECRA and allow the
U.S. government prior review of such transactions and activities to
determine whether they would be contrary to U.S. national security and
foreign policy interests. Furthermore, this rule advances U.S. national
security and foreign policy by expanding existing controls on U.S.
person activities in support of certain nuclear explosive devices,
missiles, and chemical and biological weapons to apply to items not
subject to the EAR, as directed in ECRA. This rule also supports U.S.
national security and foreign policy by allowing prior U.S. government
review of a broader range of transactions that may be destined to
various activities related to the use of rocket systems or unmanned
aerial vehicles, or chemical or biological weapons. Finally, this rule
allows the U.S. government to review transactions that post an
unacceptable risk of use by, or diversion to, entities acting contrary
to U.S. national security and foreign policy interests.
    2. Notwithstanding any other provision of law, no person may be
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 a
collection of information previously approved by OMB under control
number 0694-0088, Simplified Network Application Processing System,
which includes, among other things, license applications and carries a
burden estimate of 42.5 minutes for a manual or electronic submission.
BIS expects this rule will increase the number of license applications
required to be submitted to BIS each year by imposing licensing
requirements on certain exports, reexports, and transfers (in-country),
as well as activities of U.S. persons not previously subject to a
licensing requirement. BIS estimates the total number of additional
license applications will not exceed 40 per year, for a total increase
in public burden under OMB control number 0694-0088 of no more than 29
hours per year.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
Administrative Procedure Act and Regulatory Flexibility Act
Requirements
    Pursuant to section 4821 of ECRA (50 U.S.C. 4821), this action is
exempt from the Administrative Procedure Act (5 U.S.C. 553)
requirements for notice of proposed rulemaking, opportunity for public
participation and delay in effective date.
    Further, no other law requires that a notice of proposed rulemaking
and an opportunity for public comment be given for this interim final
rule. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under the
Administrative Procedure Act or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.

List of Subjects

15 CFR Part 730

    Administrative practice and procedure, Advisory committees,
Exports, General information, Reporting and recordkeeping requirements,
Strategic and critical materials.

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology, Scope of the Export
Administration Regulations.

15 CFR Part 736

    Exports, General prohibitions.

15 CFR Part 744

    End-user and end-use based control policy, Exports, Reporting and
recordkeeping requirements, Terrorism.

    Accordingly, parts 730, 734, 736, and 744 of the EAR (15 CFR parts
730 through 774) are amended as follows:

PART 730--GENERAL INFORMATION

0
1. The authority citation for part 730 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.; 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. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p.
114; E.O. 12002, 42 FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3
CFR, 1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp.,
p. 608; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O.
12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 12938, 59 FR
59099, 3 CFR, 1994 Comp., p. 950; E.O. 12981, 60 FR 62981, 3 CFR,
1995 Comp., p. 419; 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. 13224, 66 FR 49079, 3
CFR, 2001 Comp., p. 786; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp.,
p 168; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; Notice of
September 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020); Notice of May 7,
2020, 85 FR 27639.

0
2. Section 730.5 is amended by revising paragraph (d) to read as
follows:

Sec.  730.5   Coverage of more than exports.

* * * * *
    (d) ``U.S. person'' activities. The EAR restrict specific
activities of ``U.S. persons,'' wherever located, related to the
proliferation of nuclear explosive devices, ``missiles,'' chemical or
biological weapons, whole plants for chemical weapons precursors, and
certain military-intelligence end uses and end users, as described in
Sec.  744.6 of the EAR.

PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS

0
3. The authority citation for 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 12, 2020, 85 FR 72897 (November 13,
2020).

0
4. Section 734.5 is amended by revising paragraph (a) to read as
follows:

Sec.  734.5  Activities of U.S. and foreign persons subject to the EAR.

* * * * *
    (a) Specific activities of ``U.S. persons,'' wherever located,
related to

the proliferation of nuclear explosive devices, ``missiles,'' chemical
or biological weapons, whole plants for chemical weapons precursors,
and certain military-intelligence end uses and end users as described
in Sec.  744.6 of the EAR.
* * * * *

PART 736--GENERAL PROHIBITIONS

0
5. The authority citation for part 736 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. 13338, 69 FR 26751, 3 CFR, 2004 Comp.,
p. 168; Notice of November 12, 2020, 85 FR 72897 (November 13,
2020); Notice of May 7, 2020, 85 FR 27639.

0
6. Section 736.2 is amended by revising paragraphs (b)(7) introductory
text and (7)(i) and (ii) to read as follows:

Sec.  736.2  General prohibitions and determination of applicability.

* * * * *
    (b) * * *
    (7) General Prohibition Seven--Support of proliferation activities
and certain military-intelligence end uses and end users (``U.S.
person'' activities)-
    (i) Support of proliferation activities and certain military-
intelligence end uses and end users (``U.S. person'' activities).
    (A) If you are a ``U.S. person,'' as that term is defined in Sec.
772.1 of the EAR, you may not engage in any activities prohibited by
Sec.  744.6(b) or (c) of the EAR, which prohibit, without a license
from BIS, the shipment, transmission, or transfer (in-country) of items
not subject to the EAR; facilitating such shipment, transmission, or
transfer (in-country); or the performance of any contract, service, or
employment (including, but not limited to: ordering, buying, removing,
concealing, storing, using, selling, loaning, disposing, servicing,
financing, or transporting, freight forwarding, or conducting
negotiations in furtherance of) that you know or are informed by BIS
will support:
    (1) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of nuclear explosive devices in or by
any country not listed in supplement no. 3 to part 744 of the EAR;
    (2) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of ``missiles'' in or by a country
listed in Country Groups D:4 or E:2;
    (3) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of chemical or biological weapons in
or by any country or destination worldwide;
    (4) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, refurbishing, shipment, or transfer (in-country) of a
whole plant to make chemical weapons precursors identified in ECCN
1C350, in or by countries other than those listed in Country Group A:3
(Australia Group); or
    (5) A `military-intelligence end use' or a `military-intelligence
end user,' as defined in Sec.  744.22(f) of the EAR, in the People's
Republic of China, Russia, or Venezuela; or a country listed in Country
Groups E:1 or E:2.
    (ii) [Reserved]
* * * * *

PART 744--CONTROL POLICY; END-USER AND END-USE BASED

0
7. 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 18, 2020, 85 FR 59641 (September 22, 2020); Notice of
November 12, 2020, 85 FR 72897 (November 13, 2020).

0
8. Section 744.1 is amended by revising paragraphs (a)(1) and (b)(2) to
read as follows:

Sec.  744.1  General provisions.

    (a) * * *
    (1) Introduction. In this part, references to the EAR are
references to 15 CFR chapter VII, subchapter C. This part contains
prohibitions against exports, reexports, and selected transfers to
certain end users and end uses as introduced under General Prohibitions
Five (End use/End users) and Nine (Orders, Terms, and Conditions),
unless authorized by BIS. Sections 744.2, 744.3, and 744.4 prohibit
exports, reexports, and transfers (in-country) of items subject to the
EAR to defined nuclear, missile, and chemical and biological weapons
proliferation activities. Section 744.5 prohibits exports, reexports,
and transfers (in-country) of items subject to the EAR to defined
nuclear maritime end-uses. Consistent with General Prohibition Seven
(Support of Proliferation Activities and certain Military-Intelligence
End Uses and End Users (``U.S. person'' activities)), Sec.  744.6
prohibits specific activities by U.S. persons in support of certain
nuclear, missile, chemical and biological weapons end uses, and whole
plants for chemical weapons precursors, as well as certain military-
intelligence end uses and military-intelligence end users. Section
744.7 prohibits exports and reexports of certain items for certain
aircraft and vessels. Section 744.8 prohibits exports and reexports
without authorization to certain parties who have been designated as
proliferators of weapons of mass destruction or as supporters of such
proliferators pursuant to Executive Order 13382. Section 744.9 sets
forth restrictions on exports, reexports, and transfers (in-country) of
certain cameras, systems, or related components. Section 744.10
prohibits exports and reexports of any item subject to the EAR to
Russian entities, included in supplement no. 4 of this part. Section
744.11 imposes license requirements, to the extent specified in
supplement no. 4 to this part on entities listed in supplement no. 4 to
this part for activities contrary to the national security or foreign
policy interests of the United States. Sections 744.12, 744.13, and
744.14 prohibit exports and reexports of any item subject to the EAR to
persons designated as Specially Designated Global Terrorists, Specially
Designated Terrorists, or Foreign Terrorist Organizations,
respectively. Section 744.15 sets forth the conditions for exports,
reexports, and transfers (in-country) to persons listed on the
Unverified List (UVL) in supplement no. 6 to this part, the criteria
for revising the UVL, as well as procedures for requesting removal or
modification of a listing on the UVL. Section 744.16 sets forth the
license requirements, policies and procedures for the Entity List.
Section 744.17 sets forth restrictions on exports, reexports, and
transfers (in-country) of microprocessors and associated ``software''
and ``technology'' for military end uses and to military end users.
Section 744.18 sets forth restrictions on exports, reexports, and
transfers to persons designated in or pursuant to Executive Order
13315. Section 744.19 sets forth BIS's licensing

policy for applications for exports or reexports when a party to the
transaction is an entity that has been sanctioned pursuant to any of
three specified statutes that require certain license applications to
be denied. Section 744.20 requires a license, to the extent specified
in supplement no. 4 to this part, for exports and reexports of items
subject to the EAR destined to certain sanctioned entities listed in
supplement no. 4 to this part. In addition, these sections include
license review standards for export license applications submitted as
required by these sections. It should also be noted that part 764 of
the EAR prohibits exports, reexports and certain transfers of items
subject to the EAR to denied parties. Section 744.21 imposes
restrictions for exports, reexports and transfers (in-country) of items
on the CCL for a military end use or military end user in the People's
Republic of China (PRC or China), Russia, or Venezuela. Section 744.22
imposes restrictions on exports, reexports, and transfers (in-country)
for a military-intelligence end use or military-intelligence end user
in China, Russia, or Venezuela; or a country listed in Country Groups
E:1 or E:2 (see supplement no. 1 to part 740 of the EAR).
* * * * *
    (b) * * *
    (2) Determine Applicability. Second, determine whether any of the
end-use and end-user prohibitions described in this part are applicable
to your planned export, reexport, shipment, transmission, transfer (in-
country) or other activity. See supplement no. 1 to part 732 for
guidance. For exports, reexports, shipments, transmissions, or
transfers (in-country) that are in transit at the time you are informed
by BIS that a license is required in accordance with Sec. Sec.
744.2(b), 744.3(b), 744.4(b), 744.6(c), 744.9(b), 744.11(c), 744.17(b),
744.21(b), or 744.22(b) of the EAR, you may not proceed any further
with the transaction unless you first obtain a license from BIS (see
part 748 of the EAR for instructions on how to apply for a license).
The provisions of Sec.  748.4(d)(2) of the EAR shall not apply to
license applications submitted pursuant to a notification from BIS that
occurs while an export, reexport, or transfer (in-country) is in
transit.

0
9. Section 744.3 is amended by revising paragraphs (a)(1), (a)(2),
(a)(3), (d)(2)(ii), and (d)(2)(v) to read as follows:

Sec.  744.3   Restrictions on certain rocket systems (including
ballistic missiles, space launch vehicles and sounding rockets) and
unmanned aerial vehicles (including cruise missiles, target drones and
reconnaissance drones) end-uses.

    (a) * * *
    (1) Will be used in the design, ``development,'' ``production,''
operation, installation (including on-site installation), maintenance
(checking), repair, overhaul, or refurbishing of rocket systems or
unmanned aerial vehicles capable of a range of at least 300 kilometers
in or by a country listed in Country Group D:4 of supplement no. 1 to
part 740 of the EAR.
    (2) Will be used anywhere in the world except by governmental
programs for nuclear weapons delivery of NPT Nuclear Weapons States
that are also members of NATO, in the design, ``development,''
``production,'' operation, installation (including on-site
installation), maintenance (checking), repair, overhaul, or
refurbishing of rocket systems or unmanned aerial vehicles, regardless
of range capabilities, for the delivery of chemical, biological, or
nuclear weapons; or
    (3) Will be used in the design, ``development,'' ``production,''
operation, installation (including on-site installation), maintenance
(checking), repair, overhaul, or refurbishing of any rocket systems or
unmanned aerial vehicles in or by a country listed in Country Group
D:4, but you are unable to determine:
* * * * *
    (d) * * *
    (2) * * *
    (ii) The significance of the export, reexport or transfer in terms
of its contribution to the design, ``development,'' ``production,''
operation, installation (including on-site installation), maintenance
(checking), repair, overhaul, or refurbishing of certain rocket systems
or unmanned aerial vehicles;
* * * * *
    (v) The types of assurances or guarantees against design,
``development,'' ``production,'' operation, installation (including on-
site installation), maintenance (checking), repair, overhaul, or
refurbishing for certain rocket system or unmanned aerial vehicle
delivery purposes that are given in a particular case; and
* * * * *

0
10. Section 744.4 is amended by revising paragraphs (a), (d)(1),
(d)(2)(ii), and (d)(2)(iv) to read as follows:

Sec.  744.4  Restrictions on certain chemical and biological weapons
end-uses.

    (a) General prohibition. In addition to the license requirements
for items specified on the CCL, you may not export, reexport, or
transfer (in-country) an item subject to the EAR without a license if,
at the time of export, reexport, or transfer (in-country) you know that
the item will be used in the design, ``development,'' ``production,''
stockpiling, operation, installation (including on-site installation),
maintenance (checking), repair, overhaul, or refurbishing of chemical
or biological weapons in or by any country or destination, worldwide;
or in the design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of a whole plant to make chemical
weapons precursors specified in ECCN 1C350 in or by countries other
than those listed in Country Group A:3 (Australia Group) (see
supplement no. 1 to part 740 of the EAR).
* * * * *
    (d) * * *
    (1) Applications to export, reexport, or transfer (in-country)
items subject to this section will be considered on a case-by-case
basis to determine whether the export, reexport, or transfer (in-
country) would make a material contribution to the design,
``development,'' ``production,'' stockpiling, operation, installation
(including on-site installation), maintenance (checking), repair,
overhaul, or refurbishing of chemical or biological weapons. When an
export, reexport, or transfer (in-country) is deemed to make such a
contribution, the license will be denied.
    (2) * * *
    (ii) The significance of the export, reexport, or transfer in terms
of its contribution to the design, ``development,'' ``production,''
stockpiling, operation, installation (including on-site installation),
maintenance (checking), repair, overhaul, or refurbishing of chemical
or biological weapons;
* * * * *
    (iv) The types of assurances or guarantees against the design,
``development,'' ``production,'' stockpiling, operation, installation
(including on-site installation), maintenance (checking), repair,
overhaul, or refurbishing of chemical or biological weapons; and
* * * * *

0
11. Section 744.6 is revised to read as follows:

Sec.  744.6  Restrictions on specific activities of ``U.S. persons.''

    (a) Scope. The general prohibitions in this section apply only to
the extent that the underlying activities are not subject to a license
requirement or general prohibition administered by another federal
department or agency, see, for example, Assistance to Foreign Atomic
Energy Activities regulations (10 CFR part 810), administered by the
Department of Energy; International Traffic in Arms Regulations (ITAR)
(22 CFR parts 120 through 130), administered by the Department of
State; and certain sanctions regulations (to include, but not limited
to, 31 CFR parts 500 through 599), administered by the Department of
the Treasury. Accordingly, ``U.S. persons'' are required to seek a
license from BIS only for the activities described in this section that
are not subject to a license requirement or general prohibition
administered by the Department of Energy, Department of State,
Department of the Treasury, or other federal department or agency. The
issuance of a license by BIS, or any other federal department or
agency, does not authorize ``U.S. persons'' to engage in any activity
that is otherwise prohibited by law, including criminal statutes.
    (b) General prohibitions. No ``U.S. person'' may, without a license
from BIS, `support':
    (1) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of nuclear explosive devices in or by
any country not listed in supplement no. 3 to this part;
    (2) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of ``missiles'' in or by a country
listed in Country Groups D:4 or E:2;
    (3) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, or refurbishing of chemical or biological weapons in
or by any country or destination worldwide;
    (4) The design, ``development,'' ``production,'' operation,
installation (including on-site installation), maintenance (checking),
repair, overhaul, refurbishing, shipment, or transfer (in-country) of a
whole plant to make chemical weapons precursors identified in ECCN
1C350, in or by countries other than those listed in Country Group A:3
(Australia Group); or
    (5) A `military-intelligence end use' or a `military-intelligence
end user,' as defined in Sec.  744.22(f) of the EAR, in the People's
Republic of China, Russia, or Venezuela; or a country listed in Country
Groups E:1 or E:2.
    (b)(6) `Support' means:
    (i) Shipping or transmitting from one foreign country to another
foreign country any item not subject to the EAR you know will be used
in or by any of the end uses or end users described in paragraphs
(b)(1) through (5) of this section, including the sending or taking of
such item to or from foreign countries in any manner;
    (ii) Transferring (in-country) any item not subject to the EAR you
know will be used in or by any of the end uses or end users described
in paragraphs (b)(1) through (5) of this section;
    (iii) Facilitating such shipment, transmission, or transfer (in-
country); or
    (iv) Performing any contract, service, or employment you know may
assist or benefit any of the end uses or end users described in
paragraphs (b)(1) through (5) of this section, including, but not
limited to: Ordering, buying, removing, concealing, storing, using,
selling, loaning, disposing, servicing, financing, transporting,
freight forwarding, or conducting negotiations in furtherance of.
    (c) Additional prohibitions on ``U.S. persons'' informed by BIS.
BIS may inform ``U.S. persons,'' either individually by specific
notice, through amendment to the EAR published in the Federal Register,
or through a separate notice published in the Federal Register, that a
license is required because an activity could involve the types of
`support' (as defined in paragraph (b)(6) of this section) to the end
uses or end users described in paragraphs (b)(1) through (5) of this
section. Specific notice is to be given only by, or at the direction
of, the Deputy Assistant Secretary for Export Administration. When such
notice is provided orally, it will be followed by a written notice
within two working days signed by the Deputy Assistant Secretary for
Export Administration. However, the absence of any such notification
does not excuse the ``U.S. person'' from compliance with the license
requirements of paragraph (b) of this section.
    (d) Exceptions. (1) No License Exceptions apply to the prohibitions
described in paragraphs (b)(1) through (4) of this section.
    (2) Notwithstanding the prohibitions in paragraph (b)(5) of this
section, U.S. persons who are employees of a department or agency of
the U.S. Government may `support' a `military-intelligence end use' or
a `military-intelligence end user,' as described in paragraph (b)(5),
if the `support' is provided in the performance of official duties in
furtherance of a U.S. Government program that is authorized by law and
subject to control by the President by other means. This paragraph does
not authorize a department or agency of the U.S. Government to provide
`support' that is otherwise prohibited by other administrative
provisions or by statute. `Contractor support personnel' of a
department or agency of the U.S. Government are eligible for this
authorization when in the performance of their duties pursuant to the
applicable contract or other official duties. `Contractor support
personnel' for the purposes of this paragraph (d)(2) has the same
meaning given to that term in Sec.  740.11(b)(2)(ii) of the EAR. This
authorization is not available when a department or agency of the U.S.
Government acts as an agent on behalf of a non-U.S. Government person.
    (e) License review standards. (1) Applications for a U.S. person to
`support' (as defined in paragraph (b)(6) of this section) any of the
end uses or end users described in paragraphs (b)(1) through (4) of
this section will be denied if such support would make a material
contribution to the end uses and end users described in paragraphs
(b)(1) through (4) of this section.
    (2) Applications for a U.S. person to `support' (as defined in
paragraph (b)(6) of this section) a `military-intelligence end use' or
a `military-intelligence end user' as described in paragraph (b)(5) of
this section will be reviewed with a presumption of denial.

0
12. Section 744.11 is amended by adding a new paragraph (c) to read as
follows:

Sec.  744.11   License requirements that apply to entities acting
contrary to the national security or foreign policy interests of the
United States.

* * * * *
    (c) Additional prohibition on persons informed by BIS. BIS may
inform persons, either individually by specific notice or through
amendment to the EAR, that a license is required for:
    (1) A specific export, reexport, or transfer (in-country) because
there is an unacceptable risk that the export, reexport, or transfer
(in-country) is intended to circumvent the license requirement imposed
on an entity listed in supplement no. 4 to this part; or
    (2) The export, reexport, or transfer (in-country) of specified
items to a certain party because there is an unacceptable risk that the
party is acting

as an agent, front, or shell company for an entity listed in supplement
no. 4 to this part, or is otherwise assisting that listed entity in
circumventing the license requirement set forth in that entity's entry
in supplement no. 4 to this part.

0
13. Section 744.21 is amended by revising paragraph (g) to read as
follows:

Sec.  744.21  Restrictions on certain `military end use' or `military
end user' in the People's Republic of China, Russia, or Venezuela.

* * * * *
    (g) Military end user. In this section, the term `military end
user' means the national armed services (army, navy, marine, air force,
or coast guard), as well as the national guard and national police,
government intelligence or reconnaissance organizations (excluding
those described in Sec.  744.22(f)(2) of the EAR), or any person or
entity whose actions or functions are intended to support `military end
uses' as defined in paragraph (f) of this section.
* * * * *

0
14. Section 744.22 is added to read as follows:

Sec.  744.22  Restrictions on exports, reexports, and transfers (in-
country) to certain military-intelligence end uses or end users.

    (a) General prohibition. In addition to the license requirements
for items specified on the Commerce Control List (CCL), you may not
export, reexport, or transfer (in-country) any item subject to the EAR
without a license from BIS if, at the time of the export, reexport, or
transfer (in-country), you have ``knowledge'' that the item is
intended, entirely or in part, for a `military-intelligence end use' or
a `military-intelligence end user' in the People's Republic of China,
Russia, or Venezuela; or a country listed in Country Groups E:1 or E:2
(see supplement no. 1 to part 740 of the EAR).
    (b) Additional prohibition on those informed by BIS. BIS may inform
you either individually by specific notice, through amendment to the
EAR published in the Federal Register, or through a separate notice
published in the Federal Register, that a license is required for
specific exports, reexports, or transfers (in-country) of any item
subject to the EAR because there is an unacceptable risk of use in, or
diversion to, a `military-intelligence end use' or a `military-
intelligence end user' in the People's Republic of China, Russia, or
Venezuela; or a country listed in Country Group E:1 or E:2 (see
supplement no. 1 to part 740 of the EAR).
    (c) License exception. Notwithstanding the prohibitions described
in paragraphs (a) and (b) of this section, you may export, reexport, or
transfer (in-country) items subject to the EAR under the provision of
License Exception GOV set forth in Sec.  740.11(b)(2)(ii) of the EAR.
    (d) License application procedure. When submitting a license
application pursuant to this section, you must state in the
``additional information'' block of the application that ``this
application is submitted because of the license requirement in Sec.
744.22 of the EAR (Restrictions on exports, reexports, and transfers
(in-country) to certain military-intelligence end uses or end users).
In addition, either in the additional information block of the
application or in an attachment to the application, you must include
all known information concerning the military-intelligence end use(s)
or end user(s) of the item(s). If you submit an attachment with your
license application, you must reference the attachment in the
``additional information'' block of the application.
    (e) License review policy. Applications to export, reexport, or
transfer (in-country) items requiring a license pursuant to paragraphs
(a) or (b) of this section will be reviewed with a presumption of
denial.
    (f) Definitions. (1) `Military-intelligence end use' means the
design, ``development,'' ``production,'' use, operation, installation
(including on-site installation), maintenance (checking), repair,
overhaul, or refurbishing of, or incorporation into, items described on
the U.S. Munitions List (USML) (22 CFR part 121, International Traffic
in Arms Regulations), or classified under ECCNs ending in ``A018'' or
under ``600 series'' ECCNs, which are intended to support the actions
or functions of a `military-intelligence end user,' as defined in this
section.
    (2) `Military-intelligence end user' means any intelligence or
reconnaissance organization of the armed services (army, navy, marine,
air force, or coast guard); or national guard. For license requirements
applicable to other government intelligence or reconnaissance
organizations in China, Russia, or Venezuela, see Sec.  744.21 of the
EAR. Military-intelligence end users subject to the license
requirements set forth in this Sec.  744.22 include, but are not
limited to, the following:
    (i) Cuba. Directorate of Military Intelligence (DIM) and
Directorate of Military Counterintelligence (CIM).
    (ii) China, People's Republic of. Intelligence Bureau of the Joint
Staff Department.
    (iii) Iran. Islamic Revolutionary Guard Corps Intelligence
Organization (IRGC-IO) and Artesh Directorate for Intelligence (J2).
    (iv) Korea, North. Reconnaissance General Bureau (RGB).
    (v) Russia. Main Intelligence Directorate (GRU).
    (vi) Syria. Military Intelligence Service.
    (vii) Venezuela. General Directorate of Military
Counterintelligence (DGCIM).

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-00977 Filed 1-14-21; 8:45 am]
BILLING CODE 3510-33-P


[Federal Register: August 12, 2010 (Volume 75, Number 155)]
[Notices]
[Page 49020-49022]
[DOCID:fr12au10-104]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2010-0106; Notice 1]

CFMOTO Powersports, Inc., Receipt of Petition for Decision of
Inconsequential Noncompliance

    CFMOTO Powersports, Inc. (CFMOTO),\1\ agent for the Chunfeng
Holding Group Hangshou Motorcycles Manufacturing Co., LTD. (formerly
known as Zhejiang CFMOTO Power Co., Ltd. (CHG)) has determined that
certain model year 2005-2009 CHG Model CF250T-3(V3) and CF250T-5(V5)

motorcycles that CFMOTO imported did not fully comply with paragraph
S5.2.1 of 49 CFR 571.123 Federal Motor Vehicle Safety Standards (FMVSS)
No. 123, Motorcycle Controls and Displays. CFMOTO has filed an
appropriate report pursuant to 49 CFR Part 573, Defect and
Noncompliance Responsibility and Reports.
---------------------------------------------------------------------------

    \1\ CFMOTO Powersports, Inc., a Minnesota Corporation, is an
importer of motor vehicles.
---------------------------------------------------------------------------

    Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see implementing rule
at 49 CFR part 556), CFMOTO has petitioned for an exemption from the
notification and remedy requirements of 49 U.S.C. Chapter 301 on the
basis that this noncompliance is inconsequential to motor vehicle
safety.
    This notice of receipt of CFMOTO's petition is published under 49
U.S.C. 30118 and 30120 and does not represent any agency decision or
other exercise of judgment concerning the merits of the petition.
    Affected are a total of 6,405 model year 2005-2009 CHG model
CF250T-3(V3) and CF250T-5(V5) motorcycles,\2\ produced January 1, 2005,
through December 31, 2009.
---------------------------------------------------------------------------

    \2\ CFMOTO's petition, which was filed under 49 CFR Part 556,
requests an agency decision to exempt CFMOTO as a manufacturer
(motor vehicle importers are defined as manufacturers by 49 U.S.C.
30102(5)(B)) of motor vehicles from the notification and recall
responsibilities of 49 CFR Part 573 for all 6,405 of the affected
vehicles. However, the agency cannot relieve CFMOTO's distributors
of the prohibitions on the sale, offer for sale, or introduction or
delivery for introduction into interstate commerce of the
noncompliant vehicles under their control after CFMOTO recognized
that the subject noncompliance existed. Those vehicles must be
brought into conformance, exported, or destroyed.
---------------------------------------------------------------------------

    Paragraph S5.2.1 of FMVSS No. 123 requires in pertinent part:

    S5.2.1 Control location and operation. If any item of equipment
listed in Table 1, Column 1, is provided, the control for such item
shall be located as specified in Column 2, and operable as specified
in Column 3. Each control located on a right handlebar shall be
operable by the operator's right hand throughout its full range
without removal of the operator's right hand from the throttle. Each
control located on a left handlebar shall be operable by the
operator's left hand throughout its full range without removal of
the operator's left hand from the handgrip. If a motorcycle with an
automatic clutch other than a scooter is equipped with a
supplemental rear brake control, the control shall be located on the
left handlebar. If a scooter with an automatic clutch is equipped
with a supplemental rear brake control, the control shall be on the
right side and operable by the operator's right foot. A supplemental
control shall provide brake actuation identical to that provided by
the required control of Table 1, Item 11, of this Standard. If a
motorcycle is equipped with self-proportioning or antilock braking
devices utilizing a single control for front and rear brakes, the
control shall be located and operable in the same manner as a rear
brake control, as specified in Table 1, Item 11, and in this
paragraph.

    Item 11 from:

                         Table 1--Motorcycle Control Location and Operation Requirements
----------------------------------------------------------------------------------------------------------------
       Equipment control--column 1               Location--column 2                 Operation--column 3
----------------------------------------------------------------------------------------------------------------
11. Rear wheel brakes...................  Right foot control.............  Depress to engage.
                                          Left handlebar for a motor-      Squeeze to engage.
                                           driven cycle and for a scooter
                                           with an automatic clutch.
----------------------------------------------------------------------------------------------------------------
See S5.2.1 for requirements for vehicles with a single control for front and rear brakes, and with a
  supplemental rear brake control.

    CFMOTO explains that the noncompliance is that, the rear wheel
brake control is located on the left handlebar instead of as a right
foot control as required by paragraph S5.2.1 FMVSS No. 123.
    CFMOTO provided the following arguments to support their contention
that the subject noncompliance is inconsequential to motor vehicle
safety:

    The subject vehicles were certified as scooter type motorcycles
by the CHG. CHG believed that the vehicles met all of the
requirements for a scooter under FMVSS No. 123. As a result of the
scooter certification the rear wheel brake was placed on the left
handlebar.
    The placement of the rear brake on the left handlebar should be
deemed by the NHTSA as an inconsequential noncompliance, based on
the history and safety records of the vehicles. No consumer
complaints and no warranty claims or incident reports have been
received by CFMOTO or CHG that relate to the lack of a right foot
actuated rear wheel brake.
    One of the main reasons consumers have been attracted to the
subject vehicles is that they have the appearance of a motorcycle
and the operation or function of a scooter. Aside from a lack of
pass-through leg area, the vehicles are scooters in all technical
respects. It is the scooter functionality that has been the driving
force behind consumer demand for the vehicles.
    Individuals with disabilities prefer the left hand rear brake
controls to those of a foot operated actuator. Similarly, many
consumers want to upgrade from a scooter to a motorcycle without the
complexities of operating a motorcycle and therefore choose the
subject vehicles.

    In summation, CFMOTO believes that the described noncompliance is
inconsequential to motor vehicle safety. Therefore, CFMOTO requests
that its petition, to exempt it from providing recall notification of
noncompliance as required by 49 U.S.C. 30118 and remedying the recall
noncompliance as required by 49 U.S.C. 30120 should be granted.
    CFMOTO also stated that CHG has corrected the problem that caused
these errors so that they will not be repeated in future production.
    NHTSA notes that the statutory provisions (49 U.S.C. 30118(d) and
30120(h)) that permit manufacturers to file petitions for a
determination of inconsequentiality allow NHTSA to exempt manufacturers
only from the duties found in sections 30118 and 30120, respectively,
to notify owners, purchasers, and dealers of a defect or noncompliance
and to remedy the defect or noncompliance.
    Interested persons are invited to submit written data, views, and
arguments on this petition. Comments must refer to the docket and
notice number cited at the beginning of this notice and be submitted by
any of the following methods:
    a. By mail addressed to: U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
    b. By hand delivery to U.S. Department of Transportation, Docket
Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590. The Docket Section is open on
weekdays from 10 a.m. to 5 p.m. except Federal Holidays.
    c. Electronically: by logging onto the Federal Docket Management
System (FDMS) Web site at http://www.regulations.gov/. Follow the
online instructions for submitting comments. Comments may also be faxed
to 1-202-493-2251.
    Comments must be written in the English language, and be no greater
than 15 pages in length, although there is no limit to the length of
necessary attachments to the comments. If

comments are submitted in hard copy form, please ensure that two copies
are provided. If you wish to receive confirmation that your comments
were received, please enclose a stamped, self-addressed postcard with
the comments. Note that all comments received will be posted without
change to http://www.regulations.gov, including any personal
information provided.
    Documents submitted to a docket may be viewed by anyone at the
address and times given above. The documents may also be viewed on the
Internet at http://www.regulations.gov by following the online
instructions for accessing the dockets. DOT's complete Privacy Act
Statement is available for review in the Federal Register published on
April 11, 2000 (65 FR 19477-78).
    The petition, supporting materials, and all comments received
before the close of business on the closing date indicated below will
be filed and will be considered. All comments and supporting materials
received after the closing date will also be filed and will be
considered to the extent possible. When the petition is granted or
denied, notice of the decision will be published in the Federal
Register pursuant to the authority indicated below.
    Comment closing date: September 13, 2010.

    Authority: 49 U.S.C. 30118, 30120: delegations of authority at
CFR 1.50 and 501.8.

    Issued on: August 6, 2010.
Claude H. Harris,
Director, Office of Vehicle Safety Compliance.
[FR Doc. 2010-19877 Filed 8-11-10; 8:45 am]
BILLING CODE 4910-59-P


TABLE 1 AVERAGE ANNUAL EPA RESOURCE REQUIREMENT NEW SOURCE PERFORMANCE STANDARD ( NSPS) SUBPART TTT  PLASTIC PARTS FOR BUSINESS MACHINES REPORTING/ RECORDKEEPING REQUIREMENT EPA Hours/

Occurence ( A ) Occurences/

Plant/ Year ( B) EPA Hours/

Year ( C= A* B ) ( C) Plants/ Year ( D) EPA Hours/

Year ( E= C* D)

( E)

INITIAL PERFORMANCE TESTS New Plant 3 1 3 1 3 REPEAT PERFORMANCE TEST New Plant 3 0.2 0.6 1 0.6 REPORT REVIEW New Plant Notification of Construction 2 1 2 1 2 Notification of Initial Startup 2 1 2 1 2 Notification of Actual Startup 2 1 2 1 2 Notification of Initial Test 2 1 2 1 2 Review Test Results 2 1 2 1 2 QUARTERLY REPORTS OF NONCOMPLIANCE 8 0.2 1.6 41 65.6 SEMIANNUAL REPORTS OF COMPLIANCE 0.5 2 1 41 41 TOTAL ANNUAL HOURS 120.2 ANNUAL TRAVEL EXPENSES ( 1 person x 1.2 plants/ year x 3 d/ plant x $ 50 per diem) + ($ 250 round trip/ plant x 5 plant/ yr) = $ 360.00 SALARY BURDEN ( per year)

1 person x 120.2 h/ yr x $ 35.89/ h = $ 4,313.98 TOTAL ANNUAL BURDEN $ 4,673.98 Assumptions Number of new plants ( per year) 1 Rate of failed performance tests 20%

Time required to participate with performance test ( hours per plant) 24 Time require to review construction notification ( hours) 2 Time required to review startup and initial test notifications ( hours) 0.5 Time required to review performance test results ( hours) 8 EPA labor rate ( GS 10 Step 1 + 110% overhead) $ 35.89 Percentage of new plant visits 10%

Round trip airfare to visit plant $ 250


[Federal Register Volume 80, Number 200 (Friday, October 16, 2015)]
[Notices]
[Page 62526]
[FR Doc No: 2015-26384]

=======================================================================
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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Project No. 12514-074]

Northern Indiana Public Service Company, Notice of Availability
of Draft Environmental Assessment

    In accordance with the National Environmental Policy Act of 1969
and the Federal Energy Regulatory Commission's (Commission or FERC's)
regulations, 18 Code of Federal Regulations (CFR) Part 380, the Office
of Energy Projects has reviewed Northern Indiana Public Service
Company's application for amendment of the license for the Norway-
Oakdale Hydroelectric Project (FERC Project No. 12514-074), on the
Tippecanoe River near the city of Monticello in Carroll and White
Counties, Indiana. The project does not occupy any federal lands.
    Staff prepared a draft environmental assessment (EA) to analyze the
potential environmental effects of implementing the proposed modified
definition of abnormal flow conditions, as required by article 405 of
the current license (issued October 2, 2007), that would be included in
a revised article 403, which defines the operation of the project.
Staff concludes that authorizing the amendment, with staff's
recommended modification to the definition of abnormal river
conditions, would not constitute a major federal action that would
significantly affect the quality of the human environment.
    A copy of the EA is available for review at the Commission in the
Public Reference Room or may be viewed on the Commission's Web site at
www.ferc.gov using the ``eLibrary'' link. Enter the docket number
excluding the last three digits in the docket number field to access
the document. For assistance, contact FERC Online Support at
<EMAIL_ADDRESS>or toll-free at 1-866-208-3676, or for TTY,
202-502-8659.
    You may also register online at www.ferc.gov/docs-filing/esubscription.asp to be notified via email of new filings and issuances
related to this or other pending projects. For assistance, contact FERC
Online Support.
    Any comments should be filed within 30 days from the date of this
notice. Comments may be filed electronically via the Internet. See 18
CFR 385.2001(a)(1)(iii) and the instructions on the Commission's Web
site at http://www.ferc.gov/docs-filing/efiling.asp. Commenters can
submit brief comments up to 6,000 characters, without prior
registration, using the eComment system at http://www.ferc.gov/docs-filing/ecomment.asp. You must include your name and contact information
at the end of your comments. For assistance, please contact FERC Online
Support. Although the Commission strongly encourages electronic filing,
documents may also be paper-filed. To paper-file, mail an original and
five copies to: Kimberly D. Bose, Secretary, Federal Energy Regulatory
Commission, 888 First Street NE., Washington, DC 20426.
    For further information, contact Rebecca Martin by telephone at
202-502-6012 or Mark Pawlowski at<PHONE_NUMBER>.

    Dated: October 9, 2015.
Kimberly D. Bose,
Secretary.
[FR Doc. 2015-26384 Filed 10-15-15; 8:45 am]
 BILLING CODE 6717-01-P