Amendments to Country Groups for Russia and Yemen Under the Export Administration Regulations

Published date24 February 2020
Citation85 FR 10274
Record Number2020-02941
SectionRules and Regulations
CourtIndustry And Security Bureau
Federal Register, Volume 85 Issue 36 (Monday, February 24, 2020)
[Federal Register Volume 85, Number 36 (Monday, February 24, 2020)]
                [Rules and Regulations]
                [Pages 10274-10278]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-02941]
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                DEPARTMENT OF COMMERCE
                Bureau of Industry and Security
                15 CFR Parts 738, 740, and 742
                [Docket No. 200204-0044]
                RIN 0694-AH93
                Amendments to Country Groups for Russia and Yemen Under the
                Export Administration Regulations
                AGENCY: Bureau of Industry and Security, Commerce.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
                amends the Export Administration Regulations (EAR) to revise the
                Country Group designations for the Russian Federation (Russia) and
                Yemen based on national security and foreign policy concerns, including
                proliferation-related concerns. This action is intended to facilitate
                and support accountability in connection with exports and reexports of
                items to these destinations under the EAR, and is part of a larger
                effort to restructure and re-align the Country Groups based on the
                aforementioned interests.
                DATES: This rule is effective February 24, 2020.
                FOR FURTHER INFORMATION CONTACT: Jodi.Kouts, Director, Chemical and
                Biological Controls Division, at email [email protected] or by
                phone at (202) 482-6109.
                SUPPLEMENTARY INFORMATION:
                Background
                 The Bureau of Industry and Security (BIS) is currently undertaking
                a comprehensive review of all Country Groups in the Export
                Administration Regulations (EAR) to ensure that they appropriately
                reflect current U.S. national security and foreign policy, including
                nonproliferation interests.
                 The foundation of this rule derives from the structure and purposes
                of the Commerce Country Chart found in Supplement No. 1 to part 738 and
                the Country Groups found in Supplement No. 1 to part 740 of the EAR.
                The Country Chart contains licensing requirements based on the
                destination to which items listed on the Commerce Control List (CCL)
                (Supplement No. 1 to part 774) will be exported or reexported and their
                corresponding ``Reason for Control,'' which is found in the CCL entry.
                An ``X'' in the cell where the ``reason for control'' column intersects
                with the row of the destination indicates a license requirement.
                Licenses are required to export and reexport items under the EAR for
                multilateral reasons (i.e., chemical and biological (CB), nuclear
                nonproliferation (NP), national security (NS), and missile technology
                (MT)); and for unilateral reasons (i.e., region stability (RS), crime
                control (CC) and anti-terrorism (AT)), as well as to implement controls
                for firearms convention (FC) and United Nations Security Council
                purposes. Controls for United Nations Security Council purposes are
                identified by the abbreviation ``UN'' in the applicable CCL entries.
                The ``UN'' reason for control is described in Sec. 746. 2(b) of the
                EAR.
                 In combination with the CCL--the list of items classified and set-
                out as Export Control Classification Numbers (ECCNs) and arranged by
                categories--the Country Chart allows an exporter to determine whether a
                license is required for the export or reexport of an item on the CCL to
                the destinations on the Chart, unless otherwise specified in the
                particular ECCN entry on the CCL. The lists of Country Groups (A, B, D
                and E) set out countries with respect to relative risk and record of
                like-minded export controls, and importantly, as a basis for the
                availability of exceptions from license requirements described in part
                740 (License Exceptions) of the EAR, provided the conditions for the
                use of the License Exception are met. Country Groups may also be used
                when describing license review policy.
                 The two lists--the Commerce Country Chart and Country Groups--were
                developed for separate purposes and allow for systematic licensing
                determinations. Country Groups are not reviewed unless a license is
                required by the Country Chart for exports and reexports of items listed
                in the CCL, unless, as mentioned above, otherwise indicated in the ECCN
                entry on the CCL.
                 Continuing to apply the structure and purposes of the Country Chart
                and Country Groups in furtherance of U.S. national security and foreign
                policy, including nonproliferation interests, this rule is part of
                BIS's review of Country Groups. BIS has determined the current Country
                Group designations for Russia and Yemen should be changed to address
                U.S. national security, foreign policy, including proliferation
                concerns as further described below.
                 Specifically, this rule removes Russia from more favorable
                treatment under Country Groups A:2 and A:4 and adds it to Country
                Groups D:2 and D:4 based on nuclear and missile technology
                proliferation concerns, respectively. BIS also amends the licensing
                policy for related items to reflect a presumption of denial consistent
                with the Country Group changes. Separately, this rule removes Yemen
                from more favorable treatment under Country Group B and adds it to
                Country Group D:1 to reflect national security concerns.
                 As a result of these Country Group changes, certain license
                exceptions are no longer available for Russia and Yemen, and licenses
                are now required for those destinations in connection with exports,
                reexports, and transfers (in-country) of certain controlled items. In
                addition, certain transactions may be subject to more stringent
                licensing review policies or additional prohibitions as outlined in
                other parts of the EAR. With these actions, BIS seeks to ensure
                accountability for exports and reexports of items to these
                destinations. This rule is the first action related to the larger
                effort to re-structure and re-align the Country Groups set forth in
                Supplement No. 1 to Part 740 of the EAR.
                Specific Amendments
                Russia: Country Groups A and D
                 In this rule, BIS removes Russia from Country Groups A:2 (Missile
                Technology Control Regime) and A:4 (Nuclear Suppliers Group) to address
                U.S. concerns about diversion of U.S.-origin items to or from Russia
                for prohibited end uses and end users. This rule removes the ``X'' from
                Column ``[A:2]'' and the ``X'' from Column ``[A:4]'' in Supplement No.
                1 to Part 740 for ``Russia.'' In relation to the changes to Country
                Groups A:2 and A:4 for Russia, this rule also adds Russia to Country
                Groups of concern D:2 (Nuclear) and D:4 (Missile Technology). This rule
                adds an ``X'' in Column ``[D:2]'' and an ``X'' in Column ``[D:4]'' in
                Supplement No. 1 to Part 740 for ``Russia.'' Consistent with adding
                ``Russia'' to Country Group ``[D:2],'' this rule adds an ``X'' in
                Column ``NP 1'' for ``Russia'' in Supplement No. 1 to Part 738--
                Commerce Country Chart. Finally, BIS revises the licensing policy for
                items to Russia to a policy of presumption of denial when the items are
                controlled for reasons described under Sec. 742.2 (Proliferation of
                chemical and biological weapons), Sec. 742.3 (Nuclear
                nonproliferation), or Sec. 742.5 (Missile technology) of the EAR.
                However, with regard to NP and MT controls, applications for exports
                and reexports of items, which include commodities, software and
                technology, to Russia in support of U.S.-Russia civil space cooperation
                activities or commercial space launches will be reviewed on a case-by-
                case basis.
                [[Page 10275]]
                 These amendments are consistent with the purpose of this rule to
                address U.S. concerns about Russia's lack of cooperation and
                accountability for U.S.-origin items and diversion to unauthorized or
                prohibited proliferation activities, end uses, and end users.
                Specifically, Russia has not been cooperative in allowing BIS to
                perform pre-license checks or post-shipment verifications related to
                U.S.-origin goods. The presumption of denial under Sec. 742.2 further
                accentuates the seriousness with which the United States takes Russia's
                use of a ``novichok'' nerve agent in the attack against Sergei Skripal
                and his daughter Yulia Skripal in the United Kingdom on March 4, 2018.
                Yemen: Country Groups B and D:1
                 In this rule, BIS removes Yemen from Country Group B and places
                Yemen in the country group of concern for national security reasons,
                Country Group D:1 (National Security). Specifically, this rule removes
                ``Yemen'' from Country Group B in Supplement No. 1 to part 740, and
                adds an ``X'' in Column ``[D:1]'' of that Supplement for ``Yemen.''
                 These changes are being made to address concerns about diversion of
                U.S.-origin items in Yemen for unauthorized purposes, including
                prohibited proliferation activities, end uses, and end users. In
                addition, there are concerns about the diversion to unauthorized and
                prohibited end uses and users of U.S.-origin items controlled for
                national security reasons. The ongoing conflict in Yemen has fostered
                international terrorism and instability in the Arabian Peninsula,
                including the proliferation of small arms, unmanned aerial systems, and
                missiles.
                Impact of Removing Russia From Country Groups A:2 and A:4 and Adding to
                Country Groups D:2 and D:4
                 The removal of Russia from Country Groups A:2 and A:4 means a
                number of license exceptions are no longer available for Russia, and
                previously eligible items now require a license to Russia. Consistent
                with removing Russia from Country Groups A:2 and A:4 and adding it to
                Country Group D:2, a license is required for the export or reexport of
                items subject to NP 1 controls as identified in the applicable Export
                Control Classification Numbers (ECCNs) in Supplement No. 1 to part 774
                (The Commerce Control List). Denoting this license requirement, this
                final rule adds an ``X'' in the NP 1 column of the nuclear
                nonproliferation column in Supplement No. 1 to part 738 of the EAR for
                Russia. License applications for these items will be reviewed with a
                presumption of denial. Consistent with adding Russia to Country Group
                D:2, the general prohibition in paragraph (a)(1)(i)(A) of Sec. 744.6,
                Restrictions on certain activities of U.S. persons, will be applicable
                if the U.S. person exports, reexports, or transfers (in-country) with
                ``knowledge'' of a prohibited end use in or by Russia.
                 Consistent with adding Russia to Country Group D:4, the general
                prohibitions in paragraphs (a)(1) and (3) of Sec. 744.3, Restrictions
                on certain rocket systems (including ballistic missiles, space launch
                vehicles and sounding rockets) and unmanned aerial vehicles (including
                cruise missiles, target drones and reconnaissance drones) end-uses,
                will be applicable if the exporter, reexporter, or transferor has
                ``knowledge'' the transaction involves one of those prohibited end uses
                in or by Russia. In addition, consistent with adding Russia to Country
                Group D:4, the general prohibitions in Sec. 744.6 under paragraphs
                (a)(1)(i)(B) and (a)(2)(i) will be applicable if the U.S. person
                exports, reexports, or transfers (in country) with ``knowledge'' of one
                of those prohibited end uses in or by Russia, or engages in one of
                those prohibited activities with ``knowledge'' that it will directly
                assist such an end use.
                Impact of Removing Yemen From Country Group B and Adding to D:1
                 The removal of Yemen from County Group B means that the following
                license exceptions will no longer be available: Sec. 740.3, Shipments
                of limited value (LVS); Sec. 740.4, Shipments to Country Group B
                countries (GBS); and Sec. 740.6, Technology and software under
                restriction (TSR). As a corollary, Yemen's addition to Country Group
                D:1 means that the following license exceptions, or other portions
                thereof, which include limitations related to Country Group D, will no
                longer be available: Sec. 740.9, Temporary imports, exports,
                reexports, and transfers (in-country) (TMP); Sec. 740.10, Servicing
                and replacement of parts and equipment (RPL); Sec. 740.12, Gift
                parcels and humanitarian donations (GFT); Sec. 740.14, Baggage (BAG);
                Sec. 740.15, Aircraft and vessels (AVS); Sec. 740.16, Additional
                permissive reexports (APR); and Sec. 740.17, Encryption, commodities,
                software, and technology (ENC).
                 Section 742.4(b)(2) of the EAR states the licensing policy for
                exports and reexports of national-security controlled items to
                destinations in Country Group D:1. That licensing policy is to approve
                applications when BIS determines, on a case-by-case basis, that the
                items are for civilian use or otherwise would not make a significant
                contribution to the military potential of the country of destination
                that would prove detrimental to the national security of the United
                States. License applications to export or reexport national security
                controlled items to Yemen will now be subject to this licensing policy.
                 In addition, Yemen's placement in Country Group D:1 will result in
                the imposition of restrictions on the export, reexport, and transfer
                (in-country) of certain microprocessors to military end uses and end
                users in Yemen, pursuant to Sec. 744.17, Restrictions on certain
                exports, reexports, and transfers (in-country) of microprocessors and
                associated ``software'' and ``technology'' for `military end uses' and
                to `military end users.' Furthermore, restrictions on certain exports
                and reexports to vessels and aircraft located in Yemeni ports or
                registered in Yemen will become effective pursuant to Sec. 744.7,
                Restrictions on certain exports to and for the use of certain foreign
                vessels or aircraft. Finally, the addition of Yemen to Country Group
                D:1 will expand the licensing requirements for reexports of the
                foreign-produced direct product of U.S.-origin technology and software
                to Yemen pursuant to Sec. 736.2(b)(3), General Prohibition Three.
                Export Control Reform Act of 2018
                 On August 13, 2018, the President signed into law the John S.
                McCain National Defense Authorization Act for Fiscal Year 2019, which
                included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
                4852). ECRA provides the legal basis for BIS's principal authorities
                and serves as the authority under which BIS issues this rule. As set
                forth in Section 1768 of ECRA, all delegations, rules, regulations,
                orders, determinations, licenses, or other forms of administrative
                action that were made, issued, conducted, or allowed to become
                effective under the Export Administration Act of 1979 (50 U.S.C. 4601
                et seq.) (as in effect on August 12, 2018, and as continued in effect
                pursuant to the International Emergency Economic Powers Act (50 U.S.C.
                1701 et seq.)), or under the Export Administration Regulations, and
                were in effect as of August 13, 2018, shall continue in effect
                according to their terms until modified, superseded, set aside, or
                revoked under the authority of ECRA.
                Rulemaking Requirements
                 1. Executive Orders 13563 and 12866 direct agencies to assess all
                costs and benefits of available regulatory alternatives and, if
                regulation is
                [[Page 10276]]
                necessary, to select regulatory approaches that maximize net benefits
                (including potential economic, environmental, public health and safety
                effects, distribute impacts, and equity). Executive Order 13563
                emphasizes the importance of quantifying both costs and benefits, of
                reducing costs, of harmonizing rules, and of promoting flexibility.
                This final rule has been designated a ``significant regulatory
                action,'' although not economically significant, under section 3(f) of
                Executive Order 12866. This final rule will support the national
                security and foreign policy objectives of the United States by
                broadening the U.S. Government's visibility into exports, reexports,
                and transfers (in-country), for a country of concern when the
                transactions involve national security controlled items and items
                controlled for proliferation reasons.
                 2. Notwithstanding any other provision of law, no person may be
                required to respond to or be subject to a penalty for failure to comply
                with a collection of information, subject to the requirements of the
                Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless
                that collection of information displays a currently valid Office of
                Management and Budget (OMB) Control Number. This regulation involves a
                collection currently approved by OMB under control number 0694-0088,
                Simplified Network Application Processing System. This collection
                includes, among other things, license applications, and carries a
                burden estimate of 42.5 minutes for a manual or electronic submission
                for a total burden estimate of 31,878 hours. BIS expects the burden
                hours associated with this collection to increase slightly by 4 hours
                for an estimated cost increase of $120. This increase is not expected
                to exceed the existing estimates currently associated with OMB control
                number 0694-0088.
                 3. This rule does not contain policies with federalism implications
                as that term is defined under Executive Order 13132.
                 4. Pursuant to section 1762 of the Export Control Reform Act of
                2018 (50 U.S.C. 4801-4852), which was included in the John S. McCain
                National Defense Authorization Act for Fiscal Year 2019, this action is
                exempt from the Administrative Procedure Act (5 U.S.C. 553)
                requirements for notice of proposed rulemaking, opportunity for public
                participation, and delay in effective date.
                 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.
                 6. This final rule is not subject to the requirements of Executive
                Order 13771 (82 FR 9339, February 3, 2017) because it is issued with
                respect to a national security function of the United States. The cost-
                benefit analysis required pursuant to Executive Orders 12866 and 13563
                indicates that this rule is intended to improve national security as
                its primary direct benefit. Specifically, revising the status of the
                Country Group designations for Russia and Yemen in this rule protects
                the United States and allies by serving the priorities of reducing the
                risk that exports, reexports, and transfers (in-country) of items
                subject to the EAR could be diverted and contribute to weapons of mass
                destruction proliferation and the military capability of countries of
                concern, contrary to U.S. national security interests. Accordingly,
                this rule meets the requirements set forth in the April 5, 2017 OMB
                guidance implementing Executive Order 13771 (82 FR 9339, February 3,
                2017), regarding what constitutes a regulation issued ``with respect to
                a national security function of the United States,'' and is, therefore,
                exempt from the requirements of Executive Order 13771.
                Savings Clause
                 Shipments of items removed from license exception eligibility or
                eligibility for export, reexport or transfer (in country) without a
                license as a result of this regulatory action that were on dock for
                loading, on lighter, laden aboard and exporting carrier, or en route
                aboard a carrier to a port of export, on February 24, 2020, pursuant to
                actual orders for exports, reexports and transfers (in country) to a
                foreign destination, may proceed to that destination under the previous
                license exception eligibility or without a license so long as they have
                been exported, reexported or transferred (in-country) before 30 days
                from date of publication. Any such items not actually exported,
                reexported or transferred (in-country) before midnight on March 25,
                2020 require a license in accordance with this final rule.
                List of Subjects
                15 CFR Part 738
                 Exports.
                15 CFR Part 740
                 Administrative practice and procedure, Exports, Reporting and
                recordkeeping requirements.
                15 CFR Part 742
                 Exports, Terrorism.
                 Accordingly, parts 738, 740, and 742 of the Export Administration
                Regulations (15 CFR parts 730-774) are amended as follows:
                PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
                0
                1. The authority citation for part 738 is revised to read as follows:
                 Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
                U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C.
                287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15
                U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C.
                7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
                13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.
                0
                2. Supplement No. 1 to part 738 is amended by revising the entry for
                ``Russia'' to read as follows:
                 Supplement No. 1 to Part 738--Commerce Country Chart
                 [Reason for control]
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Chemical and biological Nuclear National security Missile Regional stability Firearms Crime control Anti-terrorism
                 weapons nonproliferation -------------------- tech convention -------------------------------------------------
                 Countries -------------------------------------------------- --------------------------------------------
                 CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                
                 * * * * * * *
                Russia \6\.................. X X X X ........ X X X X X ............ X X ........ ........ ........
                
                 * * * * * * *
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 * * * * * * *
                \6\ See Sec. 746.5 for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999.
                [[Page 10277]]
                * * * * *
                PART 740--LICENSE EXCEPTIONS
                0
                3. The authority citation for part 740 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. 7201 et seq.; E.O. 13026, 61 FR
                58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
                2001 Comp., p. 783.
                0
                4. Supplement No. 1 to part 740 is amended by:
                0
                a. In the Country Group A table:
                0
                i. Revising the table headings for [A:2] and [A:4], the entries for
                Russia and Ukraine, and footnote 2; and
                0
                ii. Redesignating footnote 3 as footnote 4, adding a new footnote 3,
                and revising newly redesignated footnote 4; and
                0
                b. In the Country Group D table, revising the entries for Russia and
                Yemen and footnote 1.
                 The revisions read as follows:
                 Supplement No. 1 to Part 740--Country Groups
                 [Country Group A]
                --------------------------------------------------------------------------------------------------------------------------------------------------------
                 [A:1] [A:2] Missile
                 Wassenaar technology [A:3] [A:4] Nuclear
                 Country participating control regime Australia suppliers [A:5] [A:6]
                 states \1\ \2\ group group \3\
                --------------------------------------------------------------------------------------------------------------------------------------------------------
                
                 * * * * * * *
                Russia 1 2 3............................................ .............. .............. .............. .............. .............. ..............
                
                 * * * * * * *
                Ukraine \4\............................................. .............. X X X .............. ..............
                
                 * * * * * * *
                --------------------------------------------------------------------------------------------------------------------------------------------------------
                \1\ Country Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
                \2\ Country Group A:2 is a list of the Missile Technology Control Regime countries, except for Russia.
                \3\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC) and Russia.
                \4\ For purposes of this supplement, as well as any other EAR provision that references the Country Groups, the designations for Ukraine also apply to
                 the Crimea region of Ukraine. See Sec. 746.6(c) of the EAR for an exhaustive listing of license exceptions that are available for the Crimea region
                 of Ukraine. No other EAR license exceptions are available for the Crimea region of Ukraine. The Crimea region of Ukraine includes the land territory
                 in that region as well as any maritime area over which sovereignty, sovereign rights, or jurisdiction is claimed based on purported annexation of that
                 land territory.
                 * * * * * * *
                
                 [Country Group D]
                ----------------------------------------------------------------------------------------------------------------
                 [D: 1] [D: 3] [D: 5] U.S.
                 Country National [D: 2] Nuclear Chemical & [D: 4] Missile arms embargoed
                 security biological technology countries \1\
                ----------------------------------------------------------------------------------------------------------------
                
                 * * * * * * *
                
                 * * * * * * *
                Russia.......................... X X X X ..............
                
                 * * * * * * *
                Yemen........................... X .............. X X ..............
                
                 * * * * * * *
                ----------------------------------------------------------------------------------------------------------------
                \1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department
                 through notices published in the Federal Register. The list of arms embargoed destinations in this table is
                 drawn from 22 CFR 126.1 and State Department Federal Register notices related to arms embargoes (compiled at
                 http://www.pmddtc.state.gov/embargoed_countries/index.html) and will be amended when the State Department
                 publishes subsequent notices. If there are any discrepancies between the list of countries in this table and
                 the countries identified by the State Department as subject to a U.S. arms embargo (in the Federal Register),
                 the State Department's list of countries subject to U.S. arms embargoes shall be controlling.
                * * * * *
                PART 742--CONTROL POLICY--CCL BASED CONTROLS
                0
                5. The authority citation for part 742 is revised to read as follows:
                 Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
                U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
                U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117
                Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
                12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR
                59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR,
                1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
                783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004
                Comp., p. 320; Notice of November 12, 2019, 84 FR 61817 (November
                13, 2018).
                0
                6. Section 742.2 is amended by revising paragraph (b)(4) to read as
                follows:
                Sec. 742.2 Proliferation of chemical and biological weapons.
                * * * * *
                 (b) * * *
                 (4) License applications for items described in paragraph (a) of
                this section, when destined for the People's Republic of China will be
                reviewed in accordance with the licensing policies in both paragraph
                (b) of this section and Sec. 742.4(b)(7). When such items are destined
                to Russia, license applications will be reviewed under a presumption of
                denial.
                * * * * *
                0
                7. Section 742.3 is amended by revising paragraph (b)(4) to read as
                follows:
                Sec. 742.3 Nuclear nonproliferation.
                * * * * *
                 (b) * * *
                 (4) License applications for items described in paragraph (a) of
                this section, when destined for the People's Republic of China will be
                reviewed in accordance with the licensing policies in both paragraph
                (b) of this section and Sec. 742.4(b)(7). When such items are destined
                to Russia, license applications will be reviewed under a presumption of
                denial. However, exports and reexports of items to Russia in support of
                U.S.-Russia civil space cooperation activities or commercial space
                launches will be reviewed on a case-by-case basis.
                * * * * *
                0
                8. Section 742.5 is amended by adding two sentences at the end of
                paragraph (b)(5) to read as follows:
                Sec. 742.5 Missile technology.
                * * * * *
                 (b) * * *
                [[Page 10278]]
                 (5) * * * When such items are destined to Russia, license
                applications will be reviewed under a presumption of denial. However,
                exports and reexports of items to Russia in support of U.S.-Russia
                civil space cooperation activities or commercial space launches will be
                reviewed on a case-by-case basis.
                * * * * *
                 Dated: February 10, 2020.
                Richard E. Ashooh,
                Assistant Secretary for Export Administration.
                [FR Doc. 2020-02941 Filed 2-21-20; 8:45 am]
                 BILLING CODE 3510-33-P
                

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