[Federal Register Volume 79, Number 9 (Tuesday, January 14, 2014)]
[Notices]
[Pages 2451-2452]
[FR Doc No: 2014-00498]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2009-D-0542]

Guidance for Industry: Distinguishing Liquid Dietary Supplements
From Beverages; Availability

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

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SUMMARY: The Food and Drug Administration (FDA or we) is announcing the
availability of a guidance for industry entitled ``Distinguishing
Liquid Dietary Supplements From Beverages.'' This guidance is intended
to help dietary supplement and beverage manufacturers and distributors
determine whether a product in liquid form is properly classified as a
dietary supplement or as a beverage. This guidance describes the
factors that distinguish liquid products that are dietary supplements
from those that are conventional foods. Further, this guidance reminds
manufacturers and distributors of dietary supplements and beverages
about the requirements of the Federal Food, Drug, and Cosmetic

Act (the FD&C Act) regarding ingredients and labeling.

DATES: Submit either electronic or written comments on Agency guidances
at any time.

ADDRESSES: Submit written requests for single copies of the guidance to
the Office of Nutrition, Labeling, and Dietary Supplements, Center for
Food Safety and Applied Nutrition (HFS-800), Food and Drug
Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, or to
the Office of Food Additive Safety, Center for Food Safety and Applied
Nutrition (HFS-200), Food and Drug Administration, 5100 Paint Branch
Pkwy., College Park, MD 20740. Send two self-addressed adhesive labels
to assist those offices in processing your request. See the
SUPPLEMENTARY INFORMATION section for electronic access to the
guidance.
    Submit electronic comments on the guidance to http://www.regulations.gov. Submit written comments to the Division of Dockets
Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane,
Rm. 1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT: Corey J. Hilmas, Center for Food
Safety and Applied Nutrition (HFS-810), Food and Drug Administration,
5100 Paint Branch Pkwy., College Park, MD 20740,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

I. Background

    We are announcing the availability of a guidance entitled
``Guidance for Industry: Distinguishing Liquid Dietary Supplements From
Beverages.'' This guidance is being issued consistent with our good
guidance practices regulation (21 CFR 10.115). The guidance represents
our current thinking on this topic. It does not create or confer any
rights for or on any person and does not operate to bind FDA or the
public. An alternate approach may be used if such approach satisfies
the requirements of the applicable statutes and regulations.
    In the Federal Register of December 4, 2009 (74 FR 63759), we made
available a draft guidance entitled ``Draft Guidance for Industry:
Factors That Distinguish Liquid Dietary Supplements From Beverages,
Considerations Regarding Novel Ingredients, and Labeling for Beverages
and Other Conventional Foods'' and gave interested parties an
opportunity to submit comments by February 2, 2010, for us to consider
before beginning work on the final version of the guidance. The
guidance is intended to help dietary supplement and beverage
manufacturers and distributors determine whether a product in liquid
form is properly classified as a dietary supplement or as a beverage.
    We have observed an increase in the marketing of liquid products
with a wide array of ingredients and intended uses. Some of these
products are marketed as dietary supplements, and others as
conventional foods. In some instances, products may be misbranded
because their labeling or other representations made about them are
inconsistent with the product category under which they are being
marketed. In addition, products may be excluded from the dietary
supplement category because of representations that they are for use as
conventional foods. The guidance is intended to describe the factors
that dietary supplement and beverage manufacturers and distributors
should consider when deciding whether to market a liquid product as a
dietary supplement or a conventional food. Further, this guidance
reminds manufacturers and distributors of dietary supplements and
beverages about the requirements of the FD&C Act regarding ingredients
and labeling.
    We received several comments on the draft guidance and have
modified the final guidance where appropriate. In addition, we made
editorial changes to improve clarity. The guidance announced in this
notice finalizes the draft guidance dated December 2009.

II. Comments

    Interested persons may submit either electronic comments regarding
the guidance to http://www.regulations.gov or written comments to the
Division of Dockets Management (see ADDRESSES). It is only necessary to
send one set of comments. Identify comments with the docket number
found in brackets in the heading of this document. Received comments
may be seen in the Division of Dockets Management between 9 a.m. and 4
p.m., Monday through Friday, and will be posted to the docket at http://www.regulations.gov.

III. Electronic Access

    Persons with access to the Internet may obtain the guidance at
either http://www.fda.gov/FoodGuidances or http://www.regulations.gov.
Use the FDA Web site listed in the previous sentence to find the most
current version of the guidance.

    Dated: January 8, 2014.
Leslie Kux,
Assistant Commissioner for Policy.
[FR Doc. 2014-00498 Filed 1-13-14; 8:45 am]
BILLING CODE 4160-01-P


[Federal Register: February 28, 2008 (Volume 73, Number 40)]
[Notices]
[Page 10849-10852]
[DOCID:fr28fe08-114]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-57362; File No. SR-DTC-2006-16]

Self-Regulatory Organizations; The Depository Trust Company;
Notice of Filing of Amended Proposed Rule Change Amending FAST and DRS
Limited Participant Requirements for Transfer Agents

February 20, 2008.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act''),\1\ notice is hereby given that on October 12, 2006, The
Depository Trust Company (``DTC'') filed with the Securities and
Exchange Commission (``Commission'') and on March 29, 2007, and May 3,
2007, amended proposed rule change No. SR-DTC-2006-16. On May 25, 2007,
the Commission published notice of the proposed rule change as amended
by Amendment 1 and Amendment 2.\2\ The Commission received 29 comment
letters to the proposed rule change as amended by Amendments 1 and
2.\3\ On December 31, 2007, DTC filed Amendment 3. The Commission is
publishing this notice to solicit comments from interested parties on
the proposed rule change as amended by Amendments 1, 2, and 3 and as
described in Items I, II, and III below, which items have been prepared
primarily by the DTC.\4\
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ Securities Exchange Act Release No. 34-55816 (May 25, 2007),
71 FR 30648 (June 1, 2007)[File No. SR-DTC-16].
    \3\ The comment letters can be found at http://www.sec.gov/
comments/sr-dtc-2006-16/dtc200616.shtml.
    \4\ The exact text of the DTC's proposed rule change can be
found at http://www.dtc.org/impNtc/mor/index.html#2006.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    DTC proposes to amend its rules to update, standardize, and restate
the requirements for the Fast Automated Securities Transfer Program
(``FAST''), to delineate the responsibilities of DTC and the transfer
agents with respect to the securities held by transfer agents as part
of the FAST program, and to restate the requirements for transfer
agents participating in the Direct Registration System (``DRS'').

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the DTC included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. DTC has prepared summaries, set forth in sections (A),
(B), and (C) below, of the most significant aspects of these
statements.\5\
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    \5\ The Commission has modified portions of the text of the
summaries prepared by the DTC.
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(A) Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    Prior to the establishment of the FAST program, transfers of
securities to or from DTC occurred by sending securities back and forth
between DTC and transfer agents. In the case of securities being
deposited with DTC, DTC sent the certificates to the transfer agent for
registration into the name of DTC's nominee, Cede & Co., and the
transfer agent returned the reregistered certificates to DTC. In the
case of securities being withdrawn from DTC, DTC sent the certificates
registered in the name of Cede & Co. to the transfer agent for
reregistration into the name designated by the withdrawing DTC
participant, and the transfer agent returned the reregistered security
to DTC for delivery to the withdrawing participant. This process
exposed securities to risk of loss during transit between DTC and
transfer agents and resulted in the expense of making physical
deliveries of securities.
    Under the FAST program, transfer agents hold FAST-eligible
securities registered in the name of Cede & Co. in the form of balance
certificates. As additional securities are deposited or withdrawn from
DTC, transfer agents adjust the denomination of the balance
certificates as appropriate and electronically confirm theses changes
with DTC. Such ``FAST agents'' are holding in custody those securities
that would otherwise be held at DTC for the benefit of DTC's
participants. As such, the FAST program reduces the movement of
certificates between DTC and the transfer agents and therefore reduces
the costs and risks associated with the creation, movement, and storing
of certificates to DTC, DTC participants, issuers, and transfer
agents.\6\
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    \6\ For a description of DTC's current rules relating to FAST,
see Securities Exchange Act Release Nos. 34-13342 (March 8, 1977)
[File No. SR-DTC-76-3]; 34-14997 (July 26, 1978) [File No. SR-DTC-
78-11]; 34-21401 (October 16, 1984) [File No. SR-DTC-84-8]; 34-31941
(March 3, 1993) [SR-DTC-92-15]; and 34-46956 (December 6, 2002)
[File No. SR-DTC-2002-15].
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    The FAST program has grown substantially since first being
introduced in 1975.\7\ Recent changes in the rules of the major
securities exchanges are expected to further accelerate this growth.\8\
Those exchange rules require as a listing prerequisite that issues be
eligible for processing through DRS. Since becoming a FAST agent is a
criterion for a transfer agent's eligibility for participation in DRS,
DTC

anticipates significant growth in the FAST program.
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    \7\ DTC introduced the FAST program in 1975 with 400 issues and
10 agents. Currently, there are over 930,000 issues and
approximately 90 agents in FAST.
    \8\ Securities Exchange Act Release Nos. 54289 (August 8, 2006),
71 FR 47278 (August 16, 2006) [File No. SR-NYSE-2006-29]; 54290
(August 8, 2006), 71 FR 47262 (August 16, 2006) [File No. SR-Amex-
2006-40]; 54288 (August 8, 2006), 71 FR 47276 (August 16, 2006)
[File No. SR-NASDAQ-2006-08]; 54410 (September 7, 2006), 71 FR 54316
(September 14, 2006) [File No. SR-NYSE Arca-2006-31]; 55482 (March
15, 2007), 72 FR 13544 (March 22, 2007) [File No. SR-Phlx-2006-69];
55481 (March 15, 2007), 72 FR 13544 (March 22, 2007) [File No. SR-
CHX-2006-33]; and 55480 (March 15, 2007), 72 FR 13544 (March 22,
2007) [File No. SR-BSE-2006-46].
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    DRS allows an investors to hold a security as the registered owner
in electronic form on the books of the transfer agent rather than
holding through the use of a certificate or holding indirectly through
a financial intermediary (e.g., a broker-dealer) that holds the
security in ``street name''. DRS also allows for the transfer of a DRS
position from the books of the transfer agent to a DTC broker-dealer
participant through the facilities of DTC using FAST.\9\
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    \9\ For a description of DTC's rules relating to DRS, see
Securities Exchange Act Release Nos. 34-37931 (November 7, 1996)
[File No. SR-DTC-96-15]; 34-41862 (September 10, 1999) [File No. SR-
DTC-99-16]; 34-42366 (January 28, 2000) [File No. SR-DTC-00-01]; 34-
42704 (April 19, 2000) [File No. SR-DTC-00-04]; 34-43586 (November
17, 2000) [File No. SR-DTC-00-09]; 34-44969 (August 14, 2001) [File
No. SR-DTC-2001-07]; 34-45232 (January 3, 2002) [SR-DTC-2001-18];
34-45430 (February 11, 2002) [File No. SR-DTC-2002-01]; and 34-48885
(December 5, 2003) [File No. SR-DTC-2002-17]; 34-52422 (September
14, 2005) [File No. SR-DTC-2005-11].
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(1) Proposed Amendments to DTC's FAST Requirements
    Despite the FAST program's robust past growth and expected future
growth, the transfer agent eligibility requirements for FAST have not
substantially changed since the implementation of FAST and do not: (i)
Take into account the increased volume and value of securities
processed by the transfer agents, (ii) reflect improved technology and
currently available safeguards which would enhance the safekeeping of
securities held by the transfer agents on behalf of DTC , and (iii)
require the use of standardized audit reports to certify transfer
agents' processes and controls.
    In light of the FAST program's growth, DTC reexamined the
requirements of the FAST program with a view toward ensuring that DTC's
assets in the custody of transfer agents, which ultimately belong to
DTC's participants and their customers, are adequately protected. As
more fully described below, DTC has identified aspects of the FAST
program that need revising or additional requirements. The proposed
revisions and additional requirements include: (i) Insurance
requirements that take into account transaction volumes of securities
processed by transfer agents, (ii) safekeeping requirements to clarify
and to enhance security and fire protection standards and to take into
consideration technological advances that allow for economical security
improvements, and (iii) bookkeeping requirements to ensure compliance
with applicable laws and regulations and use standardized audit reports
addressing transfer agents' processes and controls.
    DTC is therefore proposing to amend and to restate the minimum
requirements for transfer agents participating in the FAST program in
order to improve the safekeeping of securities transfer agents hold for
DTC and to provide better defined requirements as more transfer agents
participate in the immobilization and dematerialization of securities.
DTC's proposed minimum requirements are as follows:
    1. Transfer agent must be registered with the Commission or their
appropriate regulatory authority, except where the transfer agent's
participation in the FAST program is limited to acting solely for
municipal issues (transfer agents must provide DTC with evidence of
such) and follow all applicable rules under the Exchange Act, as well
as all other applicable federal and state laws, rules, and regulations,
applicable to transfer agents, including OFAC regulations.
    2. The transfer agent must execute and fulfill the requirements of
the appropriate form of ``Balance Certificate Agreement''\10\ with
DTC.\11\
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    \10\ DTC currently maintains three forms of the Balance
Certificate Agreement: one for transfer agents, one for issuers
acting as their own agent, and one for parties using a processing
agent. DTC is consolidating these forms into a single form, as
attached as Exhibit 2 to its initial filing.
    \11\ DTC notes that these minimum requirements incorporate by
reference the Balance Certificate Agreement between the transfer
agent and DTC.
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    3. The transfer agent must sign and fulfill requirements of the
``Operational Criteria for the FAST Transfer Agent Processing''\12\ and
must comply with all applicable provisions of DTC's ``Operational
Arrangements'' (``OA''),\13\ as amended from time to time.\14\
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    \12\ The Operational Criteria for the FAST Transfer Agent
Processing is attached as Exhibit 2(b) to DTC's initial filing.
    \13\ For more information relating to DTC's OA, see Securities
Exchange Act Release Nos. 34-45994 (May 29, 2002), 67 FR 39452 [File
No. SR-DTC-2002-02]; 34-24818 (August 19, 1987), 52 FR 31833 [File
No. DTC-87-10]; 34-25948 (July 27, 1988), 53 FR 29294 [File No. DTC-
88-13]; 34-30625 (April 23, 1992), 57 FR 18534 [File No. DTC-92-06];
34-35649 (April 26, 1995), 60 FR 21576 [File No. DTC-94-19]; and 34-
39894 (April 21, 1998), 63 FR 23310 [File No. DTC-97-23].
    \14\ DTC notes that these minimum requirements incorporate by
reference the Operational Criteria for FAST Transfer Agent
Processing and all applicable terms in DTC's Operational
Arrangements.
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    4. In order to provide for the operational proficiency and
efficiency of the program, the transfer agent must complete DTC's
training on FAST functionality on being accepted as a FAST transfer
agent.
    5. In order to protect against a risk of loss, the transfer agent
must carry and provide evidence of a minimum of the following standard
form Financial Institution Bond or a commercial crime policy providing
similar coverage in proportion to transaction volume the agent
processes, as follows:
    a. $10 million for a transfer agent with 25,000 or fewer transfer
transactions per year as reported to the Commission;
    b. $25 million for a transfer agent with over 25,000 transfer
transactions per year as reported to the Commission; and
    c. In addition, the transfer agent must carry and provide evidence
of a minimum of $1 million in Errors and Omissions insurance.
    In the event that a transfer agent can demonstrate that its
existing coverage and/or capitalization would provide similar
protections to DTC as the requirements set forth herein, it may apply
to DTC for a waiver. DTC shall have sole discretion as to whether or
not to grant any such waiver.
    6. In order to facilitate consistent protection against losses
relating to securities in a transfer agent's control, the transfer
agent must notify DTC as soon as practicable of notice of any actual
lapse in insurance coverage or change in business practices, such as
increasing volumes or other business changes that would result in the
transfer agent requiring additional insurance coverage as outlined
above. Such notice shall be delivered to: DTC Inventory Management--1SL
55 Water Street New York, New York 10041
    And with a copy to: DTC General Counsel's Office 55 Water Street--
22nd Floor New York, New York 10041.
    7. The transfer agent must provide proof to DTC of any new or
substitute policy with respect to any required insurance within five
(5) days after the entry into force of such new or substitute policy.
    8. The transfer agent must establish and maintain electronic
communications with DTC to balance FAST positions on a daily schedule.
    9. The transfer agent must provide on an annual basis to DTC within
ten (10) business days of filing with the Commission, a copy of the
Annual Study of Evaluation of Internal Accounting Control filed with
the Commission pursuant to Exchange Act Rule 17Ad-13, attesting to the
soundness of controls to safeguard securities assets and to the
reliability and integrity of computer systems, including
confidentiality of customer accounts or other non-public information.
If a transfer agent obtains a SAS-70 audit report, the transfer agent
shall provide DTC with a copy of the

report within ten (10) business days of the transfer agent's receipt of
the report. If a SAS-70 audit report is not available, then the
transfer agent must provide to DTC, on an annual basis within ten (10)
business days of filing with the Commission an accountant's report
(pursuant to Exchange Act Rule 17Ad-13, Annual Study of Evaluation of
Internal Accounting Controls), a SSAE-10 report from an external
certified public accountant (or an equivalent report) attesting to the
soundness of the transfer agent's controls relating to FAST.
    10. FAST agents must safeguard all the securities assets as stated
under Exchange Act Rule 17Ad-12, with at a minimum the following
additional DTC requirements:
    a. maintain a theft and fire central monitoring alarm system
protecting the entire premises and
    b. maintain all certificates in a vault, safe, or other secure
location, accessible only by authorized personnel.
    11. Personnel with access to the safe and the codes for the
centralized monitoring system must comply with Exchange Act Rule 17f-2,
which includes but is not limited to rules for fingerprinting staff
that physically handle certificates.
    12. Unless prohibited by applicable law, the transfer agent when
applying to be a FAST agent must provide DTC with a copy of the two
most recent deficiency or compliance correspondences from the
Commission as well as any follow-up correspondences. In addition,
unless prohibited by applicable law, the transfer agent on an ongoing
basis must provide DTC with notice of any alleged material deficiencies
documented by the Commission that may affect the activities of the
transfer agent as a FAST Agent within five (5) business days of the
transfer agent being notified of such material deficiencies.
    13. Unless prohibited by applicable law, during regular business
hours and upon advance notice, DTC reserves the right to visit and
inspect, to the extent such visits and inspections pertain to DTC's
position, the transfer agent's facilities, books, and records. DTC,
however, is not obligated to conduct such visits or inspections.
    14. Existing FAST agents shall have a period of six (6) months from
the date of the Commission's approval of this rule filing to comply
with these requirements, including the submission to DTC of a signed
Balance Certificate Agreement, signed Operational Criteria, and all
supporting documentation referenced herein. If an agent is not
compliant with these requirements upon the expiration of such period,
DTC shall have the right, using its sole discretion, to terminate or to
continue the agent's FAST status.
    15. An agent acting on behalf of a transfer agent or an issuer
acting on its own behalf shall have the same rights and
responsibilities under these requirements as if it were the transfer
agent.
(2) Proposed Amended and Restated Eligibility Requirements for DRS
Limited Participants
    DTC is proposing the following restatement of the eligibility
requirements for DRS Limited Participants\15\ and the DRS eligibility
requirements for DRS issues to promote consistency with the FAST
program requirements as well as to further ensure the soundness of the
DRS system.
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    \15\ DRS Limited Participants are transfer agents that
participate in DRS through DTC. They are bound to certain provisions
of the DTC rules. Securities Exchange Act Release No. 34-37931
(November 7, 1996) [File No. SR-DTC-96-15].
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    In order to be eligible to be a DRS Limited Participant, a transfer
agent must:
    1. Participate in the FAST program and abide by DTC's requirements
governing participation in the FAST program, which requirements are
proposed to be amended by this filing;
    2. Execute a DTC Limited Participant Account agreement;
    3. Deliver transaction advices directly to investors relating to
DRS Withdrawal-by-Transfer requests and provide DTC with a file
containing the information required by DTC (which must include, among
other things, the transaction advice delivery date) in a format and
using functionality as specified by DTC from time to time;
    4. Complete DTC's training program on DRS and Profile Modification
System (``Profile'') functionality;
    5. Participate in the Profile surety or insurance program to
initiate Profile transactions;\16\
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    \16\ In DRS, instructions to transfer shares are sent by a
broker-dealer that is a DTC Participant or a by a transfer agent
that is a DRS Limited Participant through Profile. Profile provides
screen based indemnification against false instructions from the
party submitting the instructions through DRS. The indemnity is
supported by either a surety bond or an insurance policy.
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    6. Implement program changes related to DTC internal systems
modifications within a reasonable time upon receiving notification from
DTC of such modifications;
    7. Implement program changes to support and expand DRS processing
capabilities as agreed to by the DRS Ad Hoc Committee; and
    8. Existing DRS Limited Participants shall have a period of six (6)
months from the date of the Commission's approval of this rule filing
within which they must comply with these requirements. If an agent is
not compliant with these requirements upon the expiration of such
period, DTC shall have the right using its sole discretion to terminate
or to continue the agent's status as a DRS Limited Participant.
(3) Eligibility Requirements for DRS Issues
    In order for an issue to be eligible as a DRS issue, the issue
must:
    1. Have a transfer agent accepted as a DTC DRS Limited Participant;
    2. Be included in the FAST program (An issue may not be added to
DRS if an ``out of balance'' position exists.)
(4) DTC's Proposed Standard of Care Obligations With Respect to FAST
    DTC is proposing to establish a clearer demarcation of
responsibility and liability with respect to the FAST program.
Historically, DTC believes the Commission has left to user-governed
clearing agencies the question of how to allocate losses associated
with, among other things, clearing agency functions.\17\ In conjunction
with its approval of these standards, the Commission noted that while
it had ``called on registered clearing agencies to undertake, by rule,
to deliver all fully-paid securities in their control to, or as
directed by, the participant for whom the securities are held,'' given
that registered clearing agencies had demonstrated a high level of
responsibility in safeguarding securities and funds, a standard of care
based on a strict standard of liability was not required either with
respect to failures of the clearing agency or a sub-custodian. DTC
notes that securities in the FAST program are held by a transfer agent
and are not within the immediate custody and control of DTC. As such,
after a transfer agent is accepted to the FAST program, DTC is
proposing the addition of a clarifying provision to Rule 6 to state
that DTC will not be liable for the acts or omissions of FAST Agents or
other third parties, unless caused directly by DTC's gross negligence,
willful misconduct, or violation of federal securities laws for which
there is a private right of action.

In addition, DTC proposes that under no circumstance shall DTC be
liable for selecting or accepting any third party as an agent of DTC,
including a transfer agent participating in the FAST Program.
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    \17\ Securities Exchange Act Release Nos. 34-20221 (September
23, 1983) and 34-22940 (February 24, 1986). In this regard, DTC
adopted a uniform standard with respect to certain of its
procedures, or Service Guides, such that DTC is not liable for any
loss incurred by a participant other than one caused directly by
gross negligence or willful misconduct on the part of DTC. See
Securities Exchange Act Release No. 34-44719 (August 17, 2001) [File
No. SR-DTC-2001-01].
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    DTC believes the proposed rule change is consistent with the
requirements of Section 17A of the Act, as amended,\18\ and the rules
and regulations thereunder because it improves standards relating to
the eligibility of transfer agents and issues for its FAST and DRS
programs. As such, it assures the safeguarding of securities and funds
which are in the custody or control of DTC or for which it is
responsible.
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    \18\ 15 U.S.C. 78q-1.
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(B) Self-Regulatory Organization's Statement on Burden on Competition

    DTC does not believe that the proposed rule change will impose any
burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act

(C) Self-Regulatory Organization's Statement on Comments on the
Proposed Rule Change Received From Members, Participants, or Others

    DTC has neither solicited nor received written comments on the
proposed rule change.\19\
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    \19\ The Commission received 29 comment letters to DTC's
proposed rule change as amended by Amendments 1 and 2. The comment
letters can be found at http://www.sec.gov/comments/sr-dtc-2006-16/
dtc200616.shtml.
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III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Within thirty-five days of the date of publication of this notice
in the Federal Register or within such longer period: (i) As the
Commission may designate up to ninety days of such date if it finds
such longer period to be appropriate and publishes its reasons for so
finding or (ii) as to which the self-regulatory organization consents,
the Commission will:
    (A) By order approve such proposed rule change or
    (B) Institute proceedings to determine whether the proposed rule
change should be disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/sro.shtml) or
     Send an e-mail to<EMAIL_ADDRESS>Please include
File Number SR-DTC-2006-16 in the subject line.

Paper Comments

     Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.

All submissions should refer to File Number SR-DTC-2006-16. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/
sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Section, 100 F Street,
NE., Washington, DC 20549 on official business days between the hours
of 10 a.m. and 3:30 p.m. Copies of such filings also will be available
for inspection and copying at the principal office of the DTC and on
the DTC's Web site, http://www.dtcc.com. All comments received will be
posted without change; the Commission does not edit personal
identifying information from submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-DTC-2006-16 and should be submitted on
or before March 20, 2008.

    For the Commission by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------

    \20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Florence E. Harmon,
Deputy Secretary.
[FR Doc. E8-3730 Filed 2-27-08; 8:45 am]

BILLING CODE 8011-01-P


[Federal Register Volume 76, Number 224 (Monday, November 21, 2011)]
[Rules and Regulations]
[Pages 71867-71872]
[FR Doc No: 2011-29982]

=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 110930606-1640-01]
RIN 0694-AF40

Addition of Certain Persons to the Entity List; and
Implementation of Entity List Annual Review Changes

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule amends the Export Administration Regulations (EAR)
by adding fourteen persons under twenty-one entries to the Entity List.
The persons who are added to the Entity List have been determined by
the U.S. Government to be acting contrary to the national security or
foreign policy interests of the United States. These persons will be
listed on the Entity List under the following four destinations:
Afghanistan, China, Hong Kong, and Pakistan.
    In addition, this rule amends the EAR to implement modifications to
the Entity List on the basis of the annual review of the Entity List
conducted by the End-User Review Committee (ERC), which the ERC
conducts to determine if any entries on the Entity List should be
removed or modified. This rule implements the results of the annual
review for entities located in Canada.
    The Entity List provides notice to the public that certain exports,
reexports, and transfers (in-country) to entities identified on the
Entity List require a license from the Bureau of Industry and Security
and that availability of license exceptions in such transactions is
limited.

DATES: Effective Date: This rule is effective November 21, 2011.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User
Review Committee, Office of the Assistant Secretary, Export
Administration, Bureau of Industry and Security, Department of
Commerce, Phone:<PHONE_NUMBER>, Fax: (202) 482- 3911, Email:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Background

    The Entity List (Supplement No. 4 to Part 744) provides notice to
the public that certain exports, reexports, and transfers (in-country)
to entities identified on the Entity List require a license from the
Bureau of Industry and Security (BIS) and that the availability of
license exceptions in such transactions is limited. Entities are placed
on the Entity List on the basis of certain sections of part 744
(Control Policy: End-User and End-Use Based) of the EAR.
    The ERC, composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy and, when appropriate, the Treasury,
makes all decisions regarding additions to, removals from or other
modifications to the Entity List. The ERC makes all decisions to add an
entry to the Entity List by majority vote and all decisions to remove
or modify an entry by unanimous vote.

ERC Entity List Decisions

    This rule implements decisions of the ERC to add persons to the
Entity List and modify existing entries based on the annual review of
the Entity List. These changes are described under Additions to the
Entity List and Annual Review of the Entity List below.

Additions to the Entity List

    This rule implements the decision of the ERC to add fourteen
persons under twenty-one entries to the Entity List on the basis of
Sec.  744.11 (License requirements that apply to entities acting
contrary to the national security or foreign policy interests of the
United States) of the EAR. The twenty-one entries added to the Entity
List consist of eleven entries in Afghanistan, one in the People's
Republic of China (China), one in Hong Kong, and eight in Pakistan.
Seven of the twenty-one entries cover additional addresses of persons
being added to the Entity List--these persons are being listed under
multiple countries to account for alternate addresses. Specifically,
these seven additional entries cover six persons in Afghanistan who
also have addresses in Pakistan (resulting in six additional entries
for the Pakistani addresses) and one person in China who also has an
address in Hong Kong (resulting in one additional entry for the Hong
Kong address).
    The ERC reviewed Sec.  744.11(b) (Criteria for revising the Entity
List) in making the determination to add these persons to the Entity
List. Under that paragraph, persons for which there is reasonable cause
to believe, based on specific and articulable facts, that the persons
have been involved, are involved, or pose a significant risk of being
or becoming involved in, activities that are contrary to the national
security or foreign policy interests of the United States and those
acting on behalf of such persons may be added to the Entity List
pursuant to Sec.  744.11. Paragraphs (b)(1)-(b)(5) of Sec.  44.11
include an illustrative list of activities that could be contrary to
the national security or foreign policy interests of the United States.
Thirteen of the fourteen persons are believed to have been involved in
activities described under paragraphs (b)(1) and (b)(2) of Sec.
744.11. Specifically, the thirteen persons in Afghanistan and Pakistan
are being added to the Entity List on the basis of their provision of
material support to persons engaged against U.S. and Coalition forces
in Afghanistan.
    Additionally, the U.S. Government has reasons to believe that one
person in China, who will also be listed under an alternate address in
Hong Kong, has been involved in activities described under paragraph
(b)(5) of Sec.  744.11. Specifically, the person in China has obtained
items subject to the EAR without the required EAR authorizations. BIS
believes that the activities of all fourteen of these persons are
contrary to U.S. national security and foreign policy interests.
    For the fourteen persons added to the Entity List under twenty-one
entries, the ERC specifies a license requirement for all items subject
to the EAR and establishes a license application review policy of a
presumption of denial. The license requirement applies to any
transaction in which items are to be exported, reexported, or
transferred (in-country) to such persons or in which such persons act
as purchaser, intermediate consignee, ultimate consignee, or end-user.
In addition, no license exceptions are available for exports,
reexports, or transfers (in-

country) to those persons being added to the Entity List.
    This final rule adds the following fourteen persons under twenty-
one entries to the Entity List:

Afghanistan

    (1) Abdul Satar Ghoura, 501, 5th Floor, Amanullah Sancharaki Market
Opp Chaman E Huzuri, Kabul, Afghanistan; and Flat No. 41 Block No. 24
Macroyan 3, Kabul, Afghanistan. (See alternate addresses under
Pakistan);
    (2) Assadullah Majed, 42S WD 18476 22167 Kabul, Afghanistan, and A2
Ground Floor, City Computer Plaza, Shar-e-Naw, Kabul, Afghanistan;
    (3) Fazal Rahim Farid, a.k.a., the following three aliases:

--Fazel Rahim Farid;
--Farid; and
--Engineer Idris.

    Microrayan 3rd Apt. 45, block 21, Kabul, Afghanistan, and
A2 Ground Floor, City Computer Plaza, Shar-e-Naw, Kabul, Afghanistan.
(See alternate addresses under Pakistan);
    (4) Hanif Computer Zone (HCZ), Ghazni City, Afghanistan;
    (5) Habib ur Rahman, a.k.a., the following two aliases:

--Hanif; and
--Habib Rahman.

    Ghazni City, Afghanistan;
    (6) Iqra Computer Products, a.k.a., the following two aliases:

--Iqra IT solutions; and
--Iqra Computer Store.

    A2 Ground Floor, City Computer Plaza, Shar-e-Naw, Kabul,
Afghanistan;
    (7) Kurshid Ghoura, a.k.a., the following two aliases:

--Kurshed Ghoura; and
--Kursheed Ghoura.

    501, 5th Floor, Amanullah Sancharaki Market Opp Chaman E Huzuri,
Kabul, Afghanistan; and Flat No. 41 Block No. 24 Macroyan 3, Kabul,
Afghanistan. (See alternate addresses under Pakistan);
    (8) Lapcom Computer Stores, A2 Ground Floor, City Computer Plaza,
Shar-e-Naw, Kabul, Afghanistan. (See alternate address under Pakistan);
    (9) Muhammad Halim Ghoura, 501, 5th Floor, Amanullah Sancharaki
Market Opp Chaman E Huzuri, Kabul, Afghanistan; and Flat No. 41 Block
No. 24 Macroyan 3, Kabul, Afghanistan. (See alternate addresses under
Pakistan);
    (10) Ologh Beg International Forwarders Ltd., 501, 5th Floor,
Amanullah Sancharaki Market Opp Chaman E Huzuri, Kabul, Afghanistan.
(See alternate address under Pakistan); and
    (11) Qazi Abdallah, a.k.a., the following four aliases:

--Khan Dilawar;
--Ibrahim Valid Javaid;
--Jawid, Sa'id Jan `Abd-al-Salam; and
--Ibrahim Walid

    Microrayan 3rd Apt. 45, Block No. 21, Kabul, Afghanistan.

China

    (1) Xian Semi Electronic Co., Ltd., a.k.a., the following three
aliases:

--Semi Electronics Co.;
--Semi Electronics International Co. Limited; and
--Exodus Microelectronics Co., Ltd.

    Room 24F, Duhui 100 Building Block B, ZhongHang Road, Futian
District, Shenzhen City GuangDong Province, China; Room 1810 Lang Chen
Building, No. 13 Gaoxin Road, High Technology Development Zone, Xian,
China; Room 24F-27E Duhui B, Zhonghang Road, Futian District, Shenzhen
City, China; and Room 1802 Xigema Building No. 25, Gaoxin Road, High-
Tech Development Zone, Xian, China. (See alternate address under Hong
Kong).

Hong Kong

    (1) Xian Semi Electronic Co., Ltd., a.k.a., the following three
aliases:

--Semi Electronics Co.;
--Semi Electronics International Co. Limited; and
--Exodus Microelectronics Co., Ltd.

    CAMDY, F1, 6/F BR3 Lanzhou Ind., No. 20-30 Jiangyuan, Yantian, Hong
Kong; and Room 611 6/F Ricky CTR 36 Chong Yip St., Kwun Tong Kowloon,
Hong Kong. (See alternate address under China).

Pakistan

    (1) Abdul Satar Ghoura, 127-128, Times Center, Saddar Road,
Peshawar, Pakistan; and House Number 32, F-2, Khusal Khan Khattak Road,
University Town, Peshawar, Pakistan. (See alternate addresses under
Afghanistan);
    (2) Farzad Fazil Karim, a.k.a., the following one alias:

--Ahmad Farzad.

    E3 Gul Market Street 8, Hayatabad, Pakistan; and 122, First floor,
Gul Haji Plaza, Peshawar, Pakistan;
    (3) Fazal Rahim Farid, a.k.a., the following three aliases:

--Fazel Rahim Farid;
--Farid; and
--Engineer Idris.

    122, First Floor, Gul Haji Plaza, Peshawar, Pakistan; and House
Number 32, F-2, Khusal Khan Khattak Road, University Town, Peshawar,
Pakistan. (See alternate addresses under Afghanistan);
    (4) Kurshid Ghoura, a.k.a., the following two aliases:

--Kurshed Ghoura; and
--Kursheed Ghoura.

    127-128, Times Center, Saddar Road, Peshawar, Pakistan; and House
Number 32, F-2, Khusal Khan Khattak Road, University Town, Peshawar,
Pakistan. (See alternate addresses under Afghanistan);
    (5) Lapcom Computer Stores, 122, First Floor, Gul Haji Plaza,
Peshawar, Pakistan. (See alternate address under Afghanistan);
    (6) Muhammad Halim Ghoura, 127-128, Times Center, Saddar Road,
Peshawar, Pakistan; and House Number 32, F-2, Khusal Khan Khattak Road,
University Town, Peshawar, Pakistan. (See alternate addresses under
Afghanistan);
    (7) Ologh Beg International Forwarders Ltd., 127-128, Times Center,
Saddar Road, Peshawar, Pakistan; and House Number 32, F-2, Khusal Khan
Khattak Road, University Town, Peshawar, Pakistan. (See alternate
address under Afghanistan); and
    (8) Raaziq International (Pvt.) Ltd., House Number 32, F-2, Khusal
Khan Khattak Road, University Town, Peshawar, Pakistan.

Annual Review of the Entity List

    This rule amends the EAR to implement changes to the Entity List
(Supplement No. 4 to part 744) on the basis of the annual review of the
Entity List conducted by the ERC, in accordance with the procedures
outlined in Supplement No. 5 to part 744 (Procedures for End-User
Review Committee Entity List Decisions). The changes from the annual
review of the Entity List that are approved by the ERC are implemented
in stages as the ERC completes its review of entities listed under
different destinations on the Entity List. This rule implements the
results of the annual review for entities located in Canada.
    On the basis of decisions made by the ERC during the annual review,
this rule amends two entries currently on the Entity List under Canada
by adding alternate addresses, as follows:

Canada

    (1) Ali Bakhshien, 909-4005 Bayview Ave., Toronto, Canada M2M 3Z9;
and HSBC Tower, Suite 502, 3601 Highway 7 East, Markham, Ontario, L3R
0M3, Canada; and
    (2) Kitro Corporation, 909-4005 Bayview Ave., Toronto, Canada M2M
3Z9; and HSBC Tower, Suite 502, 3601 Highway 7 East, Markham, Ontario,
L3R 0M3, Canada.

Savings Clause

    Shipments of items removed from eligibility for a License Exception
or export or reexport without a license (NLR) as a result of this
regulatory action that were on dock for loading, on lighter, laden
aboard an exporting or reexporting carrier, or en route aboard a
carrier to a port of export or reexport, on November 21, 2011, pursuant
to actual orders for export or reexport to a foreign destination, may
proceed to that destination under the previous eligibility for a
License Exception or export or reexport without a license (NLR) so long
as they are exported or reexported before December 6, 2011. Any such
items not actually exported or reexported before midnight, on December
6, 2011, require a license in accordance with the EAR.
    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 extended by the Notice of August 12,
2011, 76 FR 50661 (August 16, 2011), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act. BIS continues to carry out the provisions of the
Act, as appropriate and to the extent permitted by law, pursuant to
Executive Order 13222.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been determined to be not significant for
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is
required to respond to nor 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
collections previously approved by the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 43.8 minutes for a manual or electronic submission. Total
burden hours associated with the PRA and OMB control number 0694-0088
are not expected to increase as a result of this rule. You may send
comments regarding the collection of information associated with this
rule, including suggestions for reducing the burden, to Jasmeet K.
Seehra, Office of Management and Budget (OMB), by email to<EMAIL_ADDRESS>or by fax to<PHONE_NUMBER>.
    3. This rule does not contain policies with Federalism implications
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public comment and a delay in effective date are inapplicable because
this regulation involves a military or foreign affairs function of the
United States. (See 5 U.S.C. 553(a)(1)). BIS implements this rule to
protect U.S. national security or foreign policy interests by
preventing items from being exported, reexported, or transferred (in
country) to the persons being added to the Entity List. If this rule
were delayed to allow for notice and comment and a delay in effective
date, then entities being added to the Entity List by this action would
continue to be able to receive items without a license and to conduct
activities contrary to the national security or foreign policy
interests of the United States. In addition, because these parties may
receive notice of the U.S. Government's intention to place these
entities on the Entity List once a final rule was published it would
create an incentive for these persons to either accelerate receiving
items subject to the EAR to conduct activities that are contrary to the
national security or foreign policy interests of the United States and/
or to take steps to set up additional aliases, change addresses and
take other steps to try to limit the impact of the listing on the
Entity List once a final rule was published. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this rule. Because a notice of proposed
rulemaking and an opportunity for public comment are not required to be
given for this rule by 5 U.S.C. 553, or by any other law, the
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601
et seq., are not applicable.

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, part 744 of the Export Administration Regulations (15
CFR parts 730-774) is amended as follows:

PART 744--[AMENDED]

0
1. The authority citation for 15 CFR part 744 continues to read as
follows:

    Authority:  50 U.S.C. app. 2401 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. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; 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 August 12, 2011, 76 FR 50661
(August 16, 2011); Notice of November 4, 2010, 75 FR 68673 (November
8, 2010): Notice of January 13, 2011, 76 FR 3009, January 18, 2011.

0
2. Supplement No. 4 to part 744 is amended:
0
(a) By adding, in alphabetical order, the destination of Afghanistan
under the Country column and eleven Afghan entities;
0
(b) By revising under Canada, in alphabetical order, two Canadian
entities;
0
(c) By adding under China, in alphabetical order, one Chinese entity;
0
(d) By adding under Hong Kong, in alphabetical order, one Hong Kong
entity; and
0
(e) By adding under Pakistan, in alphabetical order, eight Pakistani
entities.
    The additions and revisions read as follows:

                                                        Supplement No. 4 to Part 744--Entity List
--------------------------------------------------------------------------------------------------------------------------------------------------------
            Country                             Entity                 License requirement      License review policy        Federal Register  citation
--------------------------------------------------------------------------------------------------------------------------------------------------------
AFGHANISTAN....................  Abdul Satar Ghoura, 501, 5th Floor,   For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Amanullah Sancharaki Market Opp       subject to the                                      11/21/11.
                                  Chaman E Huzuri, Kabul,               EAR. (See Sec.
                                  Afghanistan; and Flat No. 41 Block    744.11 of the
                                  No. 24 Macroyan 3, Kabul,             EAR).
                                  Afghanistan. (See alternate
                                  addresses under Pakistan).
                                 Assadullah Majed, 42S WD 18476 22167  For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Kabul, Afghanistan; and               subject to the                                      11/21/11
                                 A2 Ground Floor, City Computer         EAR. (See Sec.
                                  Plaza, Shar-e-Naw, Kabul,             744.11 of the
                                  Afghanistan                           EAR).
                                 Fazal Rahim Farid, a.k.a., the        For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following three aliases:              subject to the                                      11/21/11.
                                 --Fazel Rahim Farid;                   EAR. (See Sec.
                                 --Farid; and                           744.11 of the
                                 --Engineer Idris.                      EAR).
                                 Microrayan 3rd Apt. 45, block 21, Kabul, Afghanistan; and A2
                                  Ground Floor, City Computer Plaza,
                                  Shar-e-Naw, Kabul, Afghanistan.
                                  (See alternate addresses under
                                  Pakistan).
                                 Hanif Computer Zone (HCZ), Ghazni     For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  City, Afghanistan.                    subject to the                                      11/21/11.
                                                                        EAR. (See Sec.
                                                                        744.11 of the
                                                                        EAR).
                                 Habib ur Rahman, a.k.a., the          For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following two aliases:                subject to the                                      11/21/11.
                                 --Hanif; and                           EAR. (See Sec.
                                 --Habib Rahman.                        744.11 of the
                                                                        EAR).
                                 Ghazni City, Afghanistan.
                                 Iqra Computer Products, a.k.a., the   For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following two aliases:                subject to the                                      11/21/11
                                 --Iqra IT solutions; and               EAR. (See Sec.
                                 --Iqra Computer Store.                 744.11 of the
                                                                        EAR).
                                 A2 Ground Floor, City Computer
                                  Plaza, Shar-e-Naw, Kabul,
                                  Afghanistan.
                                 Kurshid Ghoura, a.k.a., the           For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following two aliases:                subject to the                                      11/21/11.
                                 --Kurshed Ghoura; and                  EAR. (See Sec.
                                 --Kursheed Ghoura.                     744.11 of the
                                                                        EAR).
                                 501, 5th Floor, Amanullah Sancharaki
                                  Market Opp Chaman E Huzuri, Kabul,
                                  Afghanistan; and Flat No. 41 Block
                                  No. 24 Macroyan 3, Kabul,
                                  Afghanistan. (See alternate
                                  addresses under Pakistan).
                                 Lapcom Computer Stores, A2 Ground     For all items        Presumption of denial........  76 FR [INSERT FR PAGE] 11/21/
                                  Floor, City Computer Plaza, Shar-e-   subject to the                                      11.
                                  Naw, Kabul, Afghanistan. (See         EAR. (See Sec.
                                  alternate address under Pakistan).    744.11 of the
                                                                        EAR).
                                 Muhammad Halim Ghoura, 501, 5th       For all items        Presumption of denial........  76 FR [INSERT FR PAGE] 11/21/
                                  Floor, Amanullah Sancharaki Market    subject to the                                      11.
                                  Opp Chaman E Huzuri, Kabul,           EAR. (See Sec.
                                  Afghanistan; and Flat No. 41 Block    744.11 of the
                                  No. 24 Macroyan 3, Kabul,             EAR).
                                  Afghanistan. (See alternate
                                  addresses under Pakistan).
                                 Ologh Beg International Forwarders    For all items        Presumption of denial........  76 FR [INSERT FR PAGE] 11/21/
                                  Ltd., 501, 5th Floor, Amanullah       subject to the                                      11.
                                  Sancharaki Market Opp Chaman E        EAR. (See Sec.
                                  Huzuri, Kabul, Afghanistan. (See      744.11 of the
                                  alternate address under Pakistan).    EAR).
                                 Qazi Abdallah, a.k.a., the following  For all items        Presumption of denial........  76 FR [INSERT FR PAGE] 11/21/
                                  four aliases:                         subject to the                                      11.
                                 --Khan Dilawar;                        EAR. (See Sec.
                                 --Ibrahim Valid Javaid;                744.11 of the
                                 --Jawid, Sa'id Jan `Abd-al-Salam;      EAR).
                                  and
                                 --Ibrahim Walid
                                 Microrayan 3rd Apt. 45, Block No.
                                  21, Kabul, Afghanistan.

--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                      * * * * * * *

--------------------------------------------------------------------------------------------------------------------------------------------------------
CANADA.........................  Ali Bakhshien, 909-4005 Bayview       For all items        Presumption of denial........  73 FR 54504, 9/22/08. 76 FR
                                  Ave., Toronto, Canada M2M 3Z9; and    subject to the                                      [INSERT FR PAGE] 11/21/11.
                                  HSBC Tower, Suite 502, 3601 Highway   EAR. (See Sec.
                                  7 East, Markham, Ontario, L3R 0M3,    744.11 of the
                                  Canada.                               EAR).
                                 Kitro Corporation, 909-4005 Bayview   For all items        Presumption of denial........  73 FR 54504, 9/22/08. 76 FR
                                  Ave., Toronto, Canada M2M 3Z9; and    subject to the                                      [INSERT FR PAGE] 11/21/11.
                                  HSBC Tower, Suite 502, 3601 Highway   EAR. (See Sec.
                                  7 East, Markham, Ontario, L3R 0M3,    744.11 of the
                                  Canada.                               EAR).
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S REPUBLIC OF

                                                                      * * * * * * *
                                 Xian Semi Electronic Co., Ltd.,       For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  a.k.a., the following three           subject to the                                      11/21/11.
                                  aliases:                              EAR. (See Sec.
                                 --Semi Electronics Co.;                744.11 of the
                                 --Semi Electronics International Co.   EAR).
                                  Limited; and
                                 --Exodus Microelectronics Co., Ltd.
                                 Room 24F, Duhui 100 Building Block
                                  B, ZhongHang Road, Futian District,
                                  Shenzhen City GuangDong Province,
                                  China; Room 1810 Lang Chen
                                  Building, No. 13 Gaoxin Road, High
                                  Technology Development Zone, Xian,
                                  China; Room 24F-27E Duhui B,
                                  Zhonghang Road, Futian District,
                                  Shenzhen City, China; and Room 1802
                                  Xigema Building No. 25, Gaoxin
                                  Road, High-Tech Development Zone,
                                  Xian, China. (See alternate address
                                  under Hong Kong).

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
HONG KONG

                                                                      * * * * * * *
                                 Xian Semi Electronic Co., Ltd.,       For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  a.k.a., the following three           subject to the                                      11/21/11.
                                  aliases:                              EAR. (See Sec.
                                 --Semi Electronics Co.;                744.11 of the
                                 --Semi Electronics International Co.   EAR).
                                  Limited; and
                                 --Exodus Microelectronics Co., Ltd.
                                 CAMDY, F1, 6/F BR3 Lanzhou Ind., No.
                                  20-30 Jiangyuan, Yantian, Hong
                                  Kong; and Room 611 6/F Ricky CTR 36
                                  Chong Yip St., Kwun Tong Kowloon,
                                  Hong Kong (See alternate address
                                  under China).

                                                                      * * * * * * *

--------------------------------------------------------------------------------------------------------------------------------------------------------
PAKISTAN
                                 Abdul Satar Ghoura, 127-128, Times    For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Center, Saddar Road, Peshawar,        subject to the                                      11/21/11.
                                  Pakistan; and House Number 32, F-2,   EAR. (See Sec.
                                  Khusal Khan Khattak Road,             744.11 of the
                                  University Town, Peshawar,            EAR).
                                  Pakistan. (See alternate addresses
                                  under Afghanistan).

                                                                      * * * * * * *
                                 Farzad Fazil Karim, a.k.a., the       For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following one alias:                  subject to the                                      11/21/11.
                                 --Ahmad Farzad.                        EAR. (See Sec.
                                 E3 Gul market Street 8, Hayatabad,     744.11 of the
                                  Pakistan; and 122, First floor, Gul   EAR).
                                  Haji Plaza, Peshawar, Pakistan;

                                 Fazal Rahim Farid, a.k.a., the        For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following three aliases:              subject to the                                      11/21/11.
                                 --Fazel Rahim Farid;                   EAR. (See Sec.
                                 --Farid; and                           744.11 of the
                                 --Engineer Idris.                      EAR).
                                 122, First Floor, Gul Haji Plaza,
                                  Peshawar, Pakistan; and House
                                  Number 32, F-2, Khusal Khan Khattak
                                  Road, University Town, Peshawar,
                                  Pakistan. (See alternate addresses
                                  under Afghanistan).

                                                                      * * * * * * *
                                 Kurshid Ghoura, a.k.a., the           For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  following two aliases:                subject to the                                      11/21/11.
                                 --Kurshed Ghoura; and                  EAR. (See Sec.
                                 --Kursheed Ghoura.                     744.11 of the
                                                                        EAR).
                                 127-128, Times Center, Saddar Road,
                                  Peshawar, Pakistan; and House
                                  Number 32, F-2, Khusal Khan Khattak
                                  Road, University Town, Peshawar,
                                  Pakistan. (See alternate addresses
                                  under Afghanistan).
                                 Lapcom Computer Stores, 122, First    For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Floor, Gul Haji Plaza, Peshawar,      subject to the                                      11/21/11.
                                  Pakistan. (See alternate address      EAR. (See Sec.
                                  under Afghanistan).                   744.11 of the
                                                                        EAR).

                                                                      * * * * * * *
                                 Muhammad Halim Ghoura, 127-128,       For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Times Center, Saddar Road,            subject to the                                      11/21/11.
                                  Peshawar, Pakistan, and House         EAR. (See Sec.
                                  Number 32, F-2, Khusal Khan Khattak   744.11 of the
                                  Road, University Town, Peshawar,      EAR).
                                  Pakistan. (See alternate addresses
                                  under Afghanistan).
                                 Ologh Beg International Forwarders    For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  Ltd., 127-128, Times Center, Saddar   subject to the                                      11/21/11.
                                  Road, Peshawar, Pakistan; and House   EAR. (See Sec.
                                  Number 32, F-2, Khusal Khan Khattak   744.11 of the
                                  Road, University Town, Peshawar,      EAR).
                                  Pakistan. (See alternate address
                                  under Afghanistan).

                                                                      * * * * * * *
                                 Raaziq International (Pvt.) Ltd.,     For all items        Presumption of denial........  76 FR [INSERT FR PAGE NUMBER]
                                  House Number 32, F-2, Khusal Khan     subject to the                                      11/21/11.
                                  Khattak Road, University Town,        EAR. (See Sec.
                                  Peshawar, Pakistan.                   744.11 of the
                                                                        EAR).

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Dated: November 15, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-29982 Filed 11-18-11; 8:45 am]
BILLING CODE 3510-33-P


[Federal Register Volume 76, Number 144 (Wednesday, July 27, 2011)]
[Proposed Rules]
[Pages 44880-44883]
[FR Doc No: 2011-19017]

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DEPARTMENT OF HOMELAND SECURITY

Coast Guard

33 CFR Part 165

[Docket No. USCG-2011-0318]
RIN 1625-AA87

Security Zone; Escorted Vessels in Captain of the Port Ohio
Valley Zone

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Coast Guard proposes to implement fixed and moving
security zones around High Capacity Passenger Vessels (HCPVs) and
vessels carrying Certain Dangerous Cargo (CDC) while they are being
escorted in the navigable waters of the Captain of the Port (COTP),
Sector Ohio Valley Zone. As used in this section, HCPVs are defined as
any commercial vessel carrying 500 or more passengers and CDC is
defined in 33 CFR 160.204. The proposed security zones would control
the movement of vessels within 50 yards of a HCPV or vessel carrying a
CDC. These security zones would mitigate potential terrorist acts and
would enhance public and maritime safety and security.

DATES: Comments and related material must be received by the Coast
Guard on or before August 26, 2011.

ADDRESSES: You may submit comments identified by docket number USCG-
2011-0318 using any one of the following methods:
    (1) Federal eRulemaking Portal: http://www.regulations.gov.
    (2) Fax:<PHONE_NUMBER>.
    (3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue, SE., Washington, DC 20590-0001.
    (4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. The telephone
number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' portion of
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, call or e-mail LCDR Derek Schade, Sector Ohio Valley Response
Department, Coast Guard; telephone<PHONE_NUMBER>, e-mail
<EMAIL_ADDRESS>If you have questions on viewing or submitting
material to the docket, call Renee V. Wright, Program Manager, Docket
Operations, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION:

Public Participation and Request for Comments

    We encourage you to participate in this rulemaking by submitting
comments and related materials. All comments received will be posted
without change to http://www.regulations.gov and will include any
personal information you have provided.

Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (USCG-2011-0318), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online (via http://www.regulations.gov) or by fax, mail, or hand
delivery, but please use only one of these means. If you submit a
comment online via http://www.regulations.gov, it will be considered
received by the Coast Guard when you successfully transmit the comment.
If you fax, hand deliver, or mail your comment, it will be considered
as having been received by the Coast Guard when it is received at the
Docket Management Facility. We recommend that you include your name and
a mailing address, an e-mail address, or a telephone number in the body
of your document so that we can contact you if we have questions
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov,
click on the ``submit a comment'' box, which will

then become highlighted in blue. In the ``Document Type'' drop down
menu select ``Proposed Rule'' and insert ``USCG-2011-0318'' in the
``Keyword'' box. Click ``Search'' then click on the balloon shape in
the ``Actions'' column. If you submit your comments by mail or hand
delivery, submit them in an unbound format, no larger than 8\1/2\ by 11
inches, suitable for copying and electronic filing. If you submit
comments by mail and would like to know that they reached the Facility,
please enclose a stamped, self-addressed postcard or envelope. We will
consider all comments and material received during the comment period
and may change the rule based on your comments.

Viewing Comments and Documents

    To view comments, as well as documents mentioned in this preamble
as being available in the docket, go to http://www.regulations.gov,
click on the ``read comments'' box, which will then become highlighted
in blue. In the ``Keyword'' box insert ``USCG-2011-0318'' and click
``Search.'' Click the ``Open Docket Folder'' in the ``Actions'' column.
You may also visit the Docket Management Facility in Room W12-140 on
the ground floor of the Department of Transportation West Building,
1200 New Jersey Avenue, SE., Washington, DC 20590, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays. We have an
agreement with the Department of Transportation to use the Docket
Management Facility.

Privacy Act

    Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on behalf of an association,
business, labor union, etc.). You may review a Privacy Act notice
regarding our public dockets in the January 17, 2008, issue of the
Federal Register (73 FR 3316).

Public Meeting

    We do not now plan to hold a public meeting. But you may submit a
request for one during the comment period. Please explain why you
believe a public meeting would be beneficial. If we determine that one
would aid this rulemaking, we will extend the comment period and hold
one at a time and place announced by a later notice in the Federal
Register.
    For information on facilities or services for individuals with
disabilities or to request special assistance at a public meeting,
contact LCDR Derek Schade at the telephone number or e-mail address
indicated under the FOR FURTHER INFORMATION CONTACT section of this
notice.

Basis and Purpose

    Heightened awareness of potential terrorist acts requires enhanced
security of our ports, harbors, and vessels; to enhance security, the
Captain of the Port, Ohio Valley proposes to establish security zones
around certain vessels. These security zones are needed to safeguard
the vessels, the public, and the surrounding area from sabotage or
other subversive acts, accidents, or other events of a similar nature.
    Due to the potential for terrorist attacks, this proposed rule
would create fixed and moving security zones around HCPVs and vessels
carrying CDCs while they are transiting under escort on the navigable
waters within the COTP Ohio Valley zone. By limiting access to these
areas, the Coast Guard is reducing potential methods of attack on these
vessels, and potential use of the vessels to launch attacks on
waterfront facilities and adjacent population centers located within
the Captain of the Port, Ohio Valley zone. Vessels having a need to
enter these security zones must obtain permission from the Captain of
the Port or his designated representative prior to entry.
    Terrorist attacks on September 11, 2001, inflicted catastrophic
human casualties and property damage. These attacks highlighted
terrorists' desire and ability to use multiple means in different
geographic areas to successfully carry out their mission.
    Since the September 11, 2001 terrorist attacks on the World Trade
Center in New York, the Pentagon in Arlington, Virginia, and Flight 93,
the Federal Bureau of Investigation (FBI) has issued several warnings
concerning the potential for additional terrorist attacks within the
United States. The October 2002 attack on a tank vessel, MV LIMBURG,
off the coast of Yemen and the prior attack on the USS COLE demonstrate
the maritime terrorism threat. These attacks manifest a continuing
threat to U.S. maritime assets as described in the President's finding
in Executive Order 13273 of August 21, 2002 (67 FR 56215, September 3,
2002) that the security of the U.S. is endangered by the September, 11,
2001 attacks and that such disturbances continue to endanger the
international relations of the United States. See also Continuation of
the National Emergency with Respect to Certain Terrorist Attacks, (67
FR 58317, September 13, 2002; and 75 FR 55661, September 13, 2010);
Continuation of the National Emergency With Respect To Persons Who
Commit, Threaten To Commit, Or Support Terrorism, (67 FR 59447,
September 20, 2002; and 75 FR 57159, September 20, 2010).
    The U.S. Maritime Administration (MARAD) in Advisory 02-07 advised
U.S. shipping interests to maintain a heightened state of alert against
possible terrorist attacks. MARAD Advisory 02-07 was cancelled and
replaced by MARAD Advisory 05-01, which advises operators of U.S.
flagged vessels that hostile actions against merchant vessels are
present and growing. Finally, in recent months, hostilities in
Afghanistan and other areas have escalated, making it prudent for U.S.
ports and waterways to be on a higher state of alert because the Al
Qaeda organization and other similar organizations have declared an
ongoing intention to conduct armed attacks on U.S. interests worldwide.
    Due to increased awareness that future terrorist attacks are
possible, the Coast Guard, as lead Federal agency for maritime homeland
security, has determined that the Captain of the Port must have the
means to be aware of, detect, deter, intercept, and respond to
asymmetric threats, acts of aggression, and attacks by terrorists on
the American homeland while maintaining our freedoms and sustaining the
flow of commerce. Subversive activity towards HCPVs and vessels
carrying CDCs is of paramount concern to the Coast Guard. Therefore, in
order to strengthen security and further control access, the COTP,
Sector Ohio Valley has decided to implement a security zone around all
HCPVs and vessels carrying CDCs that are being escorted within the COTP
Ohio Valley zone, as described in 33 CFR 3.40-65.

Discussion of Proposed Rule

    The Coast Guard proposes to establish a 50-yard security zone
around HCPVs and vessels carrying CDCs while they are being escorted in
the Captain of the Port Ohio Valley zone, as defined in 33 CFR 3.40-65.
    This rule would establish security zones that control the movement
of persons and other vessels from the surface to the bottom of the
water in a 50-yard radius around escorted vessels. Vessels traveling
within 50 yards of these escorted vessels would be required to slow to
the minimum speed necessary to navigate safely. All vessels or persons
would be prohibited from entering within a 25-yard radius around these
escorted vessels without the permission from the COTP Sector Ohio
Valley or his or her designated representative.

    For the purposes of this rule, a designated representative of the
COTP Ohio Valley includes commissioned, warrant, or petty officers of
the U.S. Coast Guard; or Federal, State, and local law enforcement
officers designated by or assisting the COTP Ohio Valley.
    As used in this section, an escorted vessel is defined as a HCPV or
vessel carrying CDC that is accompanied by one or more Coast Guard
assets or other Federal, State, or local law enforcement assets clearly
identified by lights, vessel markings, or with agency insignia.
    In all cases, the COTP would notify the maritime and general public
by marine information broadcast of the periods during which individual
security zones will be enforced.

Regulatory Analyses

    We developed this proposed rule after considering numerous statutes
and executive orders related to rulemaking. Below we summarize our
analyses based on 13 of these statutes or executive orders.

Regulatory Planning and Review

    This proposed rule is not a significant regulatory action under
section 3(f) of Executive Order 12866, Regulatory Planning and Review,
and does not require an assessment of potential costs and benefits
under section 6(a)(3) of that Order. The Office of Management and
Budget has not reviewed it under that Order.
    This rule does not pose a significant regulatory impact. The
limited geographic area impacted by the security zones would not
restrict the movement or routine operation of commercial or
recreational vessels through the waterways within the COTP Ohio Valley
zone.

Small Entities

    Under the Regulatory Flexibility Act (5 U.S.C. 601-612), we have
considered whether this proposed rule would have a significant economic
impact on a substantial number of small entities. The term ``small
entities'' comprises small businesses, not-for-profit organizations
that are independently owned and operated and are not dominant in their
fields, and governmental jurisdictions with populations of less than
50,000.
    The Coast Guard certifies under 5 U.S.C. 605(b) that this proposed
rule would not have a significant economic impact on a substantial
number of small entities. This proposed rule would affect the following
entities, some of which might be small entities: The owners or
operators of vessels intending to transit within 50 yards of escorted
vessels. This rule would not have a significant impact on a substantial
number of small entities because the security zones are limited in
size, in most cases leaving ample space for vessels to navigate around
them. The zones would not significantly impact commercial and passenger
vessel traffic patterns, and mariners would be notified of the zones
via broadcast notice to mariners. Where such space is not available and
security conditions permit, the COTP would attempt to provide
flexibility for individual vessels to transit through the zones as
needed.
    If you think that your business, organization, or governmental
jurisdiction qualifies as a small entity and that this rule would have
a significant economic impact on it, please submit a comment using one
of the four methods specified under ADDRESSES explaining why you think
it qualifies and how and to what degree this rule would economically
affect it.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), we want to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking process.
    Small businesses may send comments on the actions of Federal
employees who enforce, or otherwise determine compliance with, Federal
regulations to the Small Business and Agriculture Regulatory
Enforcement Ombudsman and the Regional Small Business Regulatory
Fairness Boards. The Ombudsman evaluates these actions annually and
rates each agency's responsiveness to small business. If you wish to
comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR
(1-888-734-3247). The Coast Guard will not retaliate against small
entities that question or complain about this proposed rule or any
policy or action of the Coast Guard.

Collection of Information

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

Federalism

    A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on them. We have analyzed this proposed rule
under that Order and have determined that it does not have implications
for federalism.

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $100,000,000 (adjusted for
inflation) or more in any one year. Though this proposed rule would not
result in such an expenditure, we do discuss the effects of this rule
elsewhere in this preamble.

Taking of Private Property

    This proposed rule would not cause a taking of private property or
otherwise have taking implications under Executive Order 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights.

Civil Justice Reform

    This proposed rule meets applicable standards in sections 3(a) and
3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden.

Protection of Children

    We have analyzed this proposed rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not an economically significant rule and would not
create an environmental risk to health or risk to safety that might
disproportionately affect children.

Indian Tribal Governments

    This proposed rule does not have tribal implications under
Executive Order 13175, Consultation and Coordination with Indian Tribal
Governments, because it would not have a substantial direct effect on
one or more Indian tribes, on the relationship between the Federal
Government and Indian tribes, or on the distribution of power and
responsibilities between the Federal Government and Indian tribes.

Energy Effects

    We have analyzed this proposed rule under Executive Order 13211,
Actions Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. We have determined that it is not a ``significant
energy action'' under that order because it is not a ``significant
regulatory action''

under Executive Order 12866 and is not likely to have a significant
adverse effect on the supply, distribution, or use of energy. The
Administrator of the Office of Information and Regulatory Affairs has
not designated it as a significant energy action. Therefore, it does
not require a Statement of Energy Effects under Executive Order 13211.

Technical Standards

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through the Office of Management and Budget, with an explanation of why
using these standards would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) that are developed or adopted by voluntary consensus
standards bodies.
    This proposed rule does not use technical standards. Therefore, we
did not consider the use of voluntary consensus standards.

Environment

    We have analyzed this proposed rule under Department of Homeland
Security Management Directive 023-01 and Commandant Instruction
M16475.lD, which guide the Coast Guard in complying with the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f), and
have made a preliminary determination that this action is one of a
category of actions that do not individually or cumulatively have a
significant effect on the human environment. A preliminary
environmental analysis checklist supporting this determination is
available in the docket where indicated under ADDRESSES. This proposed
rule involves establishing security zones around escorted vessels and
would not have a significant environmental impact. Therefore, this rule
is categorically excluded, under figure 2-1, paragraph (34)(g), of the
Instruction, from further environmental documentation. The categorical
exclusion determination is also available in the docket where indicated
under ADDRESSES. We seek any comments or information that may lead to
the discovery of a significant environmental impact from this proposed
rule.

List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and
recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard proposes
to amend 33 CFR part 165 as follows:

PART 165--REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS

    1. The authority citation for part 165 continues to read as
follows:

    Authority: 33 U.S.C. 1231; 46 U.S.C. Chapter 701, 3306, 3703; 50
U.S.C. 191, 195; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Pub. L.
107-295, 116 Stat. 2064; Department of Homeland Security Delegation
No. 0170.1.

    2. Add Sec.  165.318 to read as follows:

Sec.  165.318  Security Zone; Captain of the Port Ohio Valley Zone.

    (a) Definitions. The following definitions apply to this section:
    Captain of the Port or COTP means the same as described in 33 CFR
3.01-1.
    Designated representative of the Captain of the Port means any U.S.
Coast Guard commissioned, warrant, and petty officers; and Federal,
State, and local law enforcement officers designated by or assisting
the COTP in the enforcement of the security zone.
    High Capacity Passenger Vessel or HCPV means as any commercial
vessel carrying 500 or more passengers.
    Certain Dangerous Cargo or CDC means the same as defined in 33 CFR
160.
    Escorted vessel means a HCPV or vessel carrying a CDC that is
accompanied by one or more U.S. Coast Guard assets or other Federal,
State, or local law enforcement agency assets clearly identifiable by
lights, vessel markings, or with agency insignia.
    Minimum safe speed means the speed at which a vessel proceeds when
it is fully off plane, completely settled in the water and not creating
excessive wake. Due to the different speeds at which vessels of
different sizes and configurations may travel while in compliance with
this definition, no specific speed is assigned to minimum safe speed.
In no instance should minimum safe speed be interpreted as a speed less
than that required for a particular vessel to maintain steerageway. A
vessel is not proceeding at minimum safe speed if it is:
    (1) On a plane;
    (2) In the process of coming up onto or coming off a plane; or
    (3) Creating an excessive wake.
    (b) Location. All navigable waters, as defined within Captain of
the Port, Sector Ohio Valley zone, 33 CFR 3.40-65, within 50 yards
around an escorted vessel while transiting, moored, or anchored.
    (c) Periods of enforcement. The COTP will enforce this section
during escorts of HCPVs and vessels carrying a CDC. The COTP may enlist
the aid and cooperation of any Federal, State, county, or municipal law
enforcement agency to assist in the enforcement of this regulation. The
COTP Ohio Valley may notify the maritime and general public by
broadcast notices to mariners, local notices to mariners, or marine
safety information broadcasts of the periods during which individual
security zones have been activated.
    (d) Regulations. (1) Unless otherwise specified in this section,
the general regulations for security zones contained in Sec.  165.33 of
this part apply to this section.
    (2) No vessel may approach within 50-yards of an escorted vessel
within the Captain of the Port, Sector Ohio Valley zone, unless
traveling at the minimum safe speed necessary to navigate safely.
    (3) No vessel or person may approach within 25 yards of an escorted
vessel within the Captain of the Port Ohio Valley zone, unless
authorized by the COTP Ohio Valley or his or her designated
representative.
    (4) Persons desiring to transit the area of the security zone
within 25 yards of an escorted vessel must contact the COTP Ohio Valley
on VHF-FM channel 16 (156.8 MHz) or telephone number<PHONE_NUMBER> to
seek permission. If permitted to enter the security zone, a vessel must
proceed at the minimum safe speed and must comply with the orders of
the COTP or a designated representative.

    Dated: July 6, 2011.
L.W. Hewett,
Captain, U.S. Coast Guard, Captain of the Port Ohio Valley.
[FR Doc. 2011-19017 Filed 7-26-11; 8:45 am]
BILLING CODE 9110-04-P