Addition to the List of Countries Excluded From Certain License Requirements Under the Export Administration Regulations (EAR)

CourtIndustry And Security Bureau
Published date10 March 2022
Record Number2022-05025
Federal Register, Volume 87 Issue 47 (Thursday, March 10, 2022)
[Federal Register Volume 87, Number 47 (Thursday, March 10, 2022)]
                [Rules and Regulations]
                [Pages 13627-13628]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-05025]
                ========================================================================
                Rules and Regulations
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains regulatory documents
                having general applicability and legal effect, most of which are keyed
                to and codified in the Code of Federal Regulations, which is published
                under 50 titles pursuant to 44 U.S.C. 1510.
                The Code of Federal Regulations is sold by the Superintendent of Documents.
                ========================================================================
                Federal Register / Vol. 87, No. 47 / Thursday, March 10, 2022 / Rules
                and Regulations
                [[Page 13627]]
                DEPARTMENT OF COMMERCE
                Bureau of Industry and Security
                15 CFR Part 746
                [Docket No. 220304-0069]
                RIN 0694-AI77
                Addition to the List of Countries Excluded From Certain License
                Requirements Under the Export Administration Regulations (EAR)
                AGENCY: Bureau of Industry and Security, Department of Commerce.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: In response to the Russian Federation's (Russia's) further
                invasion of Ukraine, and to protect U.S. national security and foreign
                policy interests, the Department of Commerce has added new and highly
                restrictive license requirements and policies for certain transactions
                involving Russia and Belarus under the Export Administration
                Regulations (EAR). In order to recognize partner countries that have
                committed to implementing substantially similar new export controls on
                Russia and Belarus in their domestic laws, the Department of Commerce
                has published a list of countries excluded from portions of these new
                U.S. export controls. These exclusions apply specifically to certain
                requirements under the EAR related to foreign-produced items. In this
                rule, the Department of Commerce adds the Republic of Korea (South
                Korea) to the list of excluded countries.
                DATES: This rule is effective March 4, 2022.
                FOR FURTHER INFORMATION CONTACT: For questions on this final rule,
                contact Eileen Albanese, Director, Office of National Security and
                Technology Transfer Controls, Bureau of Industry and Security,
                Department of Commerce, Phone: (202) 482-0092, Fax: (202) 482-482-3355,
                Email: [email protected]. For emails, include ``Russia'' in the subject
                line.
                SUPPLEMENTARY INFORMATION:
                Background
                 Effective February 24, 2022, in response to Russia's further
                invasion of Ukraine, the Department of Commerce's Bureau of Industry
                and Security (BIS) added new Russia license requirements and policies
                to the Export Administration Regulations (EAR) to protect U.S. national
                security and foreign policy interests. See 87 FR 12226 (March 3, 2022)
                (Russia Sanctions rule). These new Russia license requirements included
                new Commerce Control List (CCL)-based license requirements involving
                exports, reexports, and transfer (in-country) transactions and two new
                foreign ``direct product'' rules (FDP rules) specific to Russia and to
                Russian `military end users.' A subsequent rule, effective March 2,
                2022, extended these license requirements to export, reexport, and
                transfer (in-country) transactions involving Belarus, as a result of
                Belarus's substantial enabling of Russia's invasion of Ukraine (Belarus
                Sanctions rule).\1\ Both of these rules included a savings clause
                specific to items controlled by the two FDP rules, stating that such
                items en route aboard a carrier to a port of export, reexport, or
                transfer (in-country), on or before March 26, 2022, pursuant to actual
                orders for reexport, or transfer (in-country) to or within a foreign
                destination, may proceed to such foreign destination under an
                applicable authorization that was available prior to the new license
                requirements, or with no license required, if no license requirements
                had previously applied to such transactions.
                ---------------------------------------------------------------------------
                 \1\ Imposition of Sanctions Against Belarus Under the Export
                Administration Regulations (EAR), FR 2022-04819, scheduled to
                publish March 8, 2022.
                ---------------------------------------------------------------------------
                 The new Belarus and Russia restrictions set forth in Sec. 746.8 of
                the EAR refer to a list of countries that have committed to
                implementing substantially similar export controls on Belarus and
                Russia under their domestic laws. Pursuant to Sec. 746.8(a)(5),
                countries that have made such a commitment receive full or partial
                exclusions, as appropriate, from the FDP rules' license requirements
                set forth under Sec. 746.8(a)(2) and (3) of the EAR. Similarly, the
                license requirements in Sec. 746.8(a)(1) are not used to determine
                controlled U.S.-content under the EAR's de minimis rules, as set forth
                in supplement no. 2 to part 734 of the EAR, provided the criteria in
                Sec. 746.8(a)(5)(i) and (ii) are met. Countries excluded from these
                requirements are listed in supplement no. 3 to part 746 (Russia and
                Belarus Exclusions List). As a result of South Korea's commitment to
                implement substantially similar export controls on Russia and Belarus
                under its domestic laws, the Department of Commerce adds South Korea to
                supplement no. 3 to part 746 in this rule with the designation of
                ``full.''
                Export Control Reform Act of 2018
                 On August 13, 2018, the President signed into law the John S.
                McCain National Defense Authorization Act for Fiscal Year 2019, which
                included the Export Control Reform Act of 2018 (ECRA) (codified, as
                amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for
                BIS's principal authorities and serves as the authority under which BIS
                issues this rule.
                Rulemaking Requirements
                 1. This final rule is not a ``significant regulatory action''
                because it ``pertain[s]'' to a ``military or foreign affairs function
                of the United States'' under sec. 3(d)(2) of Executive Order 12866.
                 2. Notwithstanding any other provision of law, no person is
                required to respond to, nor shall any person be subject to a penalty
                for failure to comply with, a collection of information subject to the
                requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
                seq.) (PRA), unless that collection of information displays a currently
                valid Office of Management and Budget (OMB) Control Number. This rule
                involves the following OMB-approved collections of information subject
                to the PRA: 0694-0088, ``Multi-Purpose Application,'' which carries a
                burden hour estimate of 29.6 minutes for a manual or electronic
                submission; 0694-0096 ``Five Year Records Retention Period,'' which
                carries a burden hour estimate of less than 1 minute; and 0607-0152
                ``Automated Export System (AES) Program,'' which carries a burden hour
                estimate of 3 minutes per electronic submission. BIS anticipates this
                rule will result in a slight decrease in the number of estimated
                license applications because this rule provides
                [[Page 13628]]
                relief from the burden of the new Russia Sanctions rule and Belarus
                Sanctions rule requirements that would otherwise pertain to items
                produced in, exported or reexported from South Korea, or transferred
                (in-country). Thus, this rule does not create a substantive change to
                OMB Control Numbers 0694-0088, 0694-0096, or 0607-0152.
                 3. This rule does not contain policies with federalism implications
                as that term is defined in Executive Order 13132.
                 4. Pursuant to section 1762 of the Export Control Reform Act of
                2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the
                Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for
                notice of proposed rulemaking, opportunity for public participation,
                and delay in effective date. While section 1762 of ECRA provides
                sufficient authority for such an exemption, this action is also
                independently exempt from these APA requirements because it involves a
                military or foreign affairs function of the United States (5 U.S.C.
                553(a)(1)).
                 5. 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.
                Accordingly, no regulatory flexibility analysis is required, and none
                has been prepared.
                List of Subjects in 15 CFR Part 746
                 Exports, Reporting and recordkeeping requirements.
                 For the reasons stated in the preamble, part 746 of the Export
                Administration Regulations (15 CFR parts 730 through 774) is amended as
                follows:
                PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
                0
                1. The authority citation for 15 CFR part 746 continues to read as
                follows:
                 Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
                U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec. 1503, Pub. L. 108-11, 117
                Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et
                seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
                614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222,
                66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3
                CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR
                26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7,
                72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR
                26793 (May 10, 2021).
                0
                2. Supplement no. 3 to part 746 is amended by adding an entry for
                ``South Korea'' in alphabetical order to read as follows:
                Supplement No. 3 to Part 746--Countries Excluded From Certain License
                Requirements of Sec. 746.8
                * * * * *
                ------------------------------------------------------------------------
                 Federal Register
                 Country Scope citation
                ------------------------------------------------------------------------
                
                 * * * * * * *
                South Korea..................... Full.............. 87 FR [INSERT FR
                 PAGE NUMBER] 3/10/
                 2022.
                
                 * * * * * * *
                ------------------------------------------------------------------------
                Thea D. Rozman Kendler,
                Assistant Secretary for Export Administration.
                [FR Doc. 2022-05025 Filed 3-4-22; 4:15 pm]
                BILLING CODE 3510-33-P
                

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT