Conforming and Clarifying Changes to the Export Administration Regulations (EAR)

Published date10 May 2024
Record Number2024-10280
Citation89 FR 40369
CourtIndustry And Security Bureau
SectionRules and Regulations
Federal Register, Volume 89 Issue 92 (Friday, May 10, 2024)
[Federal Register Volume 89, Number 92 (Friday, May 10, 2024)]
                [Rules and Regulations]
                [Pages 40369-40372]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2024-10280]
                ========================================================================
                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. 89, No. 92 / Friday, May 10, 2024 / Rules and
                Regulations
                [[Page 40369]]
                DEPARTMENT OF COMMERCE
                Bureau of Industry and Security
                15 CFR Parts 734, 738, 740, and 758
                [Docket No. 240506-0127]
                RIN 0694-AJ65
                Conforming and Clarifying Changes to the Export Administration
                Regulations (EAR)
                AGENCY: Bureau of Industry and Security, Department of Commerce.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: This final rule makes conforming and clarifying changes to the
                Export Administration Regulations (EAR). These changes include making
                conforming changes to the EAR to ensure that destination names reflect
                the current destination names that are recognized by the United States
                Government, clarifying the removal of certain license requirements for
                exports, reexports, and transfers (in-country) to and within Australia
                and the United Kingdom, making a conforming change to reflect that
                Cyprus is no longer a Country Group D:5 country, and clarifying how
                Russia and the Russian Federation are referenced for consistency with
                the designation of Russia as a U.S. Arms Embargoed destinations.
                DATES: This rule is effective May 30, 2024.
                FOR FURTHER INFORMATION CONTACT: For questions on this rule, contact
                Philip Johnson at [email protected] or (202) 482-2440.
                SUPPLEMENTARY INFORMATION:
                I. Background
                 BIS is amending the EAR (15 CFR parts 730-774) by making conforming
                changes to the EAR to ensure that destination names reflect the current
                destination names that are recognized by the United States Government,
                by making conforming changes to ensure that the EAR reflects amendments
                and description of those amendments made pursuant to two recent rules,
                by making a conforming change to reflect that Cyprus is no longer a
                Country Group D:5 country, and by clarifying how Russia and the Russian
                Federation are referenced in the EAR to ensure consistency with the
                designation of Russia as a U.S. Arms Embargoed destination.
                 The four sets of changes this final rule makes are described in
                section II as follows:
                 A. Conforming changes to the Commerce Country Chart and Country
                Groups to ensure consistency with destinations names that are
                recognized by the United States Government;
                 B. Conforming changes to the Commerce Country Chart entries for
                Australia and the United Kingdom;
                 C. Conforming change to reflect Cyprus is no longer a Country Group
                D:5 country; and
                 D. Removing obsolete references to Russia and the Russian
                Federation in provisions that predate the country's addition to Country
                Group D:5.
                II. Regulatory Changes
                A. Conforming Changes to the Commerce Country Chart and Country Groups
                To Ensure Consistency With Destination Names That Are Recognized by the
                United States Government
                 This final rule in supplement no. 1 to part 738 (Commerce Country
                Chart) removes Swaziland from the Commerce Country Chart and replaces
                it, in alphabetical order, with Eswatini. On April 19, 2018, King
                Mswati III declared that the country be known as the Kingdom of
                Eswatini, rather than the Kingdom of Swaziland. BIS makes this change
                to conform to King Mswati III's declaration, as subsequently formally
                recognized by the State Department (see https://www.state.gov/countries-areas/eswatini/). This final rule also removes Macedonia (The
                Former Yugoslav Republic of) from the Commerce Country Chart and
                replaces it, in alphabetical order, with North Macedonia. BIS makes
                this change to the conform to the State Department's formal recognition
                of the new name in February 2019 (see https://history.state.gov/countries/macedonia). Lastly, this final rule removes Turkey from the
                Commerce Country Chart and replaces it, in alphabetical order, with
                T[uuml]rkiye. BIS makes this change to conform to the State
                Department's recognition on January 9, 2023 of the new country's new
                name (see https://www.state.gov/countries-areas/turkey/). This rule
                revises only the names of the three countries; the information set
                forth in each of the three entries otherwise remains the same.
                 As a conforming change to the changes made to the Commerce Country
                Chart described above, this final rule removes Swaziland from Country
                Group B in supplement no. 1 to part 740, Country Groups), and replaces
                it (in alphabetical order) with Eswatini. Similarly, this rule removes
                Macedonia (the Former Yugoslav Republic of) from Country Group B and
                replaces it, in alphabetical order, with North Macedonia.
                B. Conforming Changes to Commerce Country Chart Entries for Australia
                and the United Kingdom
                 This final rule also revises the Commerce Country Chart entries for
                Australia and the United Kingdom in supplement no. 1 to part 738 to
                align with the policy decisions and regulatory changes described and
                implemented in the August 19, 2024 interim final rule, ``Export Control
                Revisions for Australia, United Kingdom, United States (AUKUS) Enhanced
                Trilateral Security Partnership'' (89 FR 28594, published and effective
                on April 19, 2024) (April 19 IFR). Specifically, the April 19 IFR
                removed the license requirements for national security column 1 (NS1),
                regional stability column 1 (RS1), and missile technology column 1
                (MT1) reasons for control for these two countries, as well as the
                footnote 3 designations for both of these countries, because the
                license requirements referenced in footnote 3 were no longer
                applicable.
                 This rule corrects inadvertent errors in which a subsequent interim
                final rule, ``Revisions of Firearms License Requirements'' (89 FR
                34680, published on April 30, 2024, and effective on May 30, 2024)
                (April 30 IFR), erroneously included an ``X'' under the NS1, RS1, and
                MT1 reasons for control for Australia and the United Kingdom and also
                erroneously included the previously-applicable footnote 3 designation
                for these two countries. This final rule revises the entries for
                [[Page 40370]]
                Australia and the United Kingdom by removing the license requirement
                for NS1, RS1, and MT1, as well as the footnote 3 designation, for
                consistency with the intended regulatory changes described in the April
                19 IFR.
                 The changes in this final rule described under this section II.B
                are limited to removing text (as described above) that inadvertently
                appeared in the two Commerce Country Chart entries. The April 30 IFR
                correctly removed the footnote 9 designation for Australia and the
                United Kingdom. The April 30 IFR addressed the license requirement
                described in footnote 9 for these two destinations by adding an ``X''
                in the crime control column 2 (CC2) reason for control for these two
                countries.
                C. Conforming Change to Reflect the Fact That Cyprus is No Longer a
                Country Group D:5 Country
                 The U.S. State Department recently amended Sec. 126.1 of the
                International Traffic in Arms Regulations (ITAR) (22 CFR parts 120
                through 130) to specify that Cyprus's status as a proscribed
                destination is suspended from October 1, 2023 through September 30,
                2024 (see 88 FR 63016). Consistent with this change, Cyprus was
                effectively removed from Country Group D:5. As set forth in the Note to
                Country Group D:5 in supplement no. 1 to part 740 of the EAR, if there
                are any discrepancies between the list of D:5 countries and the
                countries identified by the Department of State as subject to a U.S.
                arms embargo, the State Department's list shall be controlling. To
                avoid confusion on the part of exporters, reexporters, and transferors,
                this final rule removes Cyprus from D:5. D:5 was the only ``X'' in the
                entry for Cyprus under Country Group D, so the entry is no longer
                needed.
                D. Removing, for Clarity, References to Russia and the Russian
                Federation for Provisions That Also extend to Country Group D:5
                 The final rule, ``Implementation of Sanctions Against Russia Under
                the Export Administration Regulations (EAR)'' (87 FR 12226, published
                March 3, 2022, and effective February 24, 2022), included amendments to
                supplement no. 1 to part 740 (Country Groups) of the EAR consistent
                with the ITAR Sec. 126.1. The March 3 final rule updated the Country
                Group designation for Russia in supplement no. 1 to part 740 to reflect
                its identification by the Department of State as a country subject to a
                United States arms embargo. As noted above, BIS harmonizes the arms
                embargo-related provisions in the EAR with the Directorate of Defense
                Trade Control's (DDTC's) regulation of arms embargoes in Sec. 126.1 of
                the ITAR. Three sections of the EAR, which predated the March 18, 2021
                (see 86 FR 14802) addition of Russia to Sec. 126.1 under the ITAR,
                continued to separately identify Russia or the Russian Federation from
                Country Group D:5. These references are unnecessary due to the fact
                that Russia was subsequently added to Country Group D:5. Specifically,
                this final rule revises Sec. 734.18(a)(5)(iv); Sec. 740.9(a)
                introductory text (the fourth and seventh sentences) and paragraph
                (b)(5)(ii); and Sec. 758.10, Note 1 to paragraph (b)(1), by removing
                references to Russia or the Russian Federation when the same sentence
                also refers to Country Group D:5. In the case of Sec. 740.9(b)(5)(ii),
                the broader exclusion under paragraph (b)(5)(i) means the narrow
                exclusion under (b)(5)(ii) should not include Russia, which is subject
                to the broader exclusion as a Country Group D:5 country.
                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, as amended, provides the legal basis for BIS's principal
                authorities and serves as the authority under which BIS issues this
                rule.
                Rulemaking Requirements
                 1. BIS has examined the impact of this rule as required by
                Executive Orders 12866, 13563, and 14094. Pursuant to E.O. 12866, as
                amended by E.O. 14094, this final rule has not been determined to be a
                ``significant regulatory action.''
                 2. Notwithstanding any other provision of law, no person is
                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 an
                information collection approved by OMB under control number 0694-0088,
                Simplified Network Application Processing System. BIS does not
                anticipate a change to the burden hours associated with this collection
                as a result of this rule. Information regarding the collection,
                including all supporting materials, can be accessed at https://www.reginfo.gov/public/do/PRAMain.
                 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 ECRA (50 U.S.C. 4821), 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. Additionally, this rule is
                exempt from the ordinary rulemaking requirements of the APA pursuant to
                5 U.S.C. 553(a)(1) as a military or foreign affairs function of the
                United States Government.
                 5. Because neither the APA nor any other law requires that notice
                of proposed rulemaking and an opportunity for public comment be given
                for this rule, the analytical requirements of the Regulatory
                Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly,
                no Final Regulatory Flexibility Analysis is required, and none has been
                prepared.
                List of Subjects
                15 CFR Part 734
                 Administrative practice and procedure, Exports, Inventions and
                patents, Research, Science and technology.
                15 CFR Part 738
                 Administrative practice and procedure, Exports, Reporting and
                recordkeeping requirements.
                15 CFR Part 740
                 Administrative practice and procedure, Exports, Reporting and
                recordkeeping requirements.
                15 CFR Part 758
                 Administrative practice and procedure, Exports, Reporting and
                recordkeeping requirements.
                 Exports, Reporting and recordkeeping requirements.
                 Accordingly, parts 734, 738, 740, and 758 of the Export
                Administration Regulations (15 CFR parts 730-774) are amended as
                follows:
                PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
                0
                1. The authority citation for 15 CFR part 734 is revised to read as
                follows:
                 Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
                U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
                950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
                61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
                CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp.,
                p. 223; Notice of November 1, 2023, 88 FR 75475 (November 3, 2023).
                [[Page 40371]]
                0
                2. Section 734.18(a)(5) is amended by revising paragraph (a)(5)(iv) to
                read as follows:
                Sec. 734.18 Activities that are not exports, reexports, or
                transfers.
                 (a) * * *
                 (5) * * *
                 (iv) Not intentionally stored in a country listed in Country Group
                D:5 (see supplement no. 1 to part 740 of the EAR).
                 Note 1 to paragraph (a)(5)(iv): Data in-transit via the internet
                is not deemed to be stored.
                * * * * *
                PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
                0
                3. The authority citation for 15 CFR part 738 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C.
                287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004;
                42 U.S.C. 2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et
                seq.; 22 U.S.C. 7210; E.O. 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 738 is amended by:
                0
                a. Revising the entry for ``Australia'';
                0
                b. Adding an entry for ``Eswatini'' in alphabetical order;
                0
                c. Removing the entries for ``Macedonia (The Former Yugoslav Republic
                of)'';
                0
                d. Adding an entry for ``North Macedonia'' in alphabetical order;
                0
                e. Removing the entry for ``Swaziland'';
                0
                f. Removing the entry for ``Turkey''; and
                0
                g. Adding an entry for ``T[uuml]rkiye'' in alphabetical order.
                0
                h. Revising the entry for the ``United Kingdom'';
                 The additions and revisions read as follows:
                Supplement No. 1 to Part 738--Commerce Country Chart
                * * * * *
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Chemical & biological Nuclear National Missile Regional Firearms Crime control Anti-
                 weapons nonproliferation security tech stability convention ------------------------ terrorism
                 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
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                
                 * * * * * * *
                Australia.................................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
                
                 * * * * * * *
                Eswatini..................................... X X ....... X ....... X X X X X ............ X X X
                
                 * * * * * * *
                North Macedonia.............................. X X ....... X ....... X X X X X ............ X X X
                
                 * * * * * * *
                T[uuml]rkiye................................. X ....... ....... ....... ....... X ....... X X ....... ............ ...... X
                
                 * * * * * * *
                United Kingdom............................... X ....... ....... ....... ....... ....... ....... .......... ....... ....... ............ ...... X
                
                 * * * * * * *
                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                * * * * *
                PART 740--LICENSE EXCEPTIONS
                0
                5. The authority citation for 15 CFR 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
                6. Section 740.9 is amended by:
                0
                a. Removing ``Russia,'' in the fourth and seventh sentences of
                paragraph (a) introductory text wherever it appears; and
                0
                b. Removing ``Russia,'' in paragraph (b)(5)(ii) wherever it appears.
                0
                7. Supplement no. 1 to part 740 is amended by:
                0
                a. In the ``Country Group A'' and ``Country Group B'' tables, removing
                the entry for ``Turkey'' and adding an entry for ``T[uuml]rkiye'' in
                alphabetical order;
                0
                b. In the ``Country Group B'' table:
                0
                i. Adding an entry for ``Eswatini'' in alphabetical order;
                0
                i. Removing the entry for ``Macedonia, The Former Yugoslav Republic
                of'', and adding an entry for ``North Macedonia'' in alphabetical
                order;
                0
                ii. Removing the entry for ``Swaziland''; and
                0
                c. In the ``Country Group D'' table, removing the entry for Cyprus.
                 The additions and revisions read as follows:
                Supplement No. 1 to Part 740--Commerce Country Chart
                 Country Group A
                --------------------------------------------------------------------------------------------------------------------------------------------------------
                 [A:2] Missile [A:4]
                 [A:1] Wassenaar technology [A:3] Nuclear
                 Country participating control regime Australia suppliers [A:5] [A:6]
                 states \1\ \2\ group group \3\
                --------------------------------------------------------------------------------------------------------------------------------------------------------
                
                 * * * * * * *
                T[uuml]rkiye.................................................. X X 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), Russia, and Belarus.
                [[Page 40372]]
                * * * * *
                Country Group B--Countries
                * * * * *
                Eswatini
                * * * * *
                North Macedonia
                * * * * *
                T[uuml]rkiye
                * * * * *
                PART 758--EXPORT CLEARANCE REQUIREMENTS AND AUTHORITIES
                0
                8. The authority citation for 15 CFR part 758 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
                783.
                0
                9. Section 758.10 is amended by removing ``Russia,'' in Note 1 to
                paragraph (b)(1) wherever it appears.
                Thea D. Rozman Kendler,
                Assistant Secretary for Export Administration.
                [FR Doc. 2024-10280 Filed 5-8-24; 11:15 am]
                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