Export Administration Regulations: Termination of United Arab Emirates Participation in the Arab League Boycott of Israel

CourtIndustry And Security Bureau
Citation86 FR 30535
Record Number2021-12125
Publication Date09 Jun 2021
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.
Rules and Regulations Federal Register
30535
Vol. 86, No. 109
Wednesday, June 9, 2021
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 3
[Docket No. USDA–2020–0011]
RIN 0503–AA72
Civil Monetary Penalty Inflation
Adjustments for 2021; Correction
AGENCY
: Office of the Secretary, U.S.
Department of Agriculture (USDA).
ACTION
: Correcting amendment.
SUMMARY
: On May 10, 2021, we
published a final rule amending the U.S.
Department of Agriculture’s civil
monetary penalty regulations by making
inflation adjustments as mandated by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. We are correcting an error that
appeared in that final rule.
DATES
: Effective June 9, 2021.
FOR FURTHER INFORMATION CONTACT
: Mr.
Stephen O’Neill, Office of Budget and
Program Analysis, USDA, 1400
Independence Avenue SW,Washington,
DC 20250–1400, (202) 720–0038.
SUPPLEMENTARY INFORMATION
: In a final
rule published and effective on June 17,
2020 (85 FR 36670–36714), we amended
the U.S. Department of Agriculture’s
(USDA’s) debt management regulations
in 7 CFR part 3. As part of that final
rule, we revised the regulations in § 3.91
to update the amount of civil monetary
penalties that may be levied by USDA
agencies to reflect inflationary
adjustments for 2020 as required by the
2015 Civil Penalties Act.
In making those updates, we
inadvertently introduced an error into
paragraph (b)(2)(xiv) of § 3.91. Prior to
the effective date of the June 2020 final
rule, that paragraph had specified that
the civil penalty for a violation of the
Commercial Transportation of Equine
for Slaughter Act, 7 U.S.C. 1901 note,
and its implementing regulations in 9
CFR part 88, as set forth in 9 CFR 88.6,
has a maximum of $5,000. The June
2020 final rule should have adjusted
that maximum amount to $5,088
consistent with the guidance contained
in Office of Management and Budget
memorandum M–20–05, which
provided a cost-of-living adjustment
multiplier for 2020 of 1.01764.
However, due to a drafting error, the
amount that appeared was $812.
That error carried over into our 2021
adjustments, which were published and
effective on May 10, 2021 (86 FR 24699–
24703), in which we applied the 2021
cost-of-living adjustment multiplier
(1.01182) to the incorrect $812 figure to
arrive at an adjusted penalty of $822.
To address these errors, we are
amending 7 CFR 3.91(b)(2)(xiv) to
replace the incorrect penalty amount
with the correct amount, which is
$5,148 (i.e., the correct 2020 figure of
$5,088 times the 2021 multiplier).
List of Subjects in 7 CFR Part 3
Administrative practice and
procedure, Claims, Government
employees, Income taxes, Loan
programs-agriculture, Penalties,
Reporting and recordkeeping
requirements, Wages.
Accordingly, we are amending 7 CFR
part 3 as follows:
PART 3—DEBT MANAGEMENT
Subpart I—Adjusted Civil Monetary
Penalties
1. The authority citation for part 3,
subpart I, continues to read as follows:
Authority: 28 U.S.C. 2461 note.
§ 3.91 [Amended]
2. In § 3.91, paragraph (b)(2)(xiv) is
amended by removing the amount
‘‘$822’’ and adding the amount
‘‘$5,148’’ in its place.
John Rapp,
Acting Director, Office of Budget and Program
Analysis.
[FR Doc. 2021–12110 Filed 6–8–21; 8:45 am]
BILLING CODE 3410–90–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 760
[Docket No. 210528–0118]
RIN 0694–AI48
Export Administration Regulations:
Termination of United Arab Emirates
Participation in the Arab League
Boycott of Israel
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 reflect the formal termination
by the United Arab Emirates (UAE) of
its participation in the Arab League
Boycott of Israel. Specifically, in
recognition of the UAE’s August 16,
2020 issuance of Federal Decree-Law
No. 4 of 2020, certain requests for
information, action or agreement from
the UAE, which were presumed to be
boycott-related if made prior to August
16, 2020, would not be presumed to be
boycott-related if made following that
date, and thus would not be prohibited
or reportable under the EAR.
Accordingly, BIS adds an interpretation
to the Restrictive Trade Practices or
Boycotts regulations of the EAR, which
sets forth BIS’s view that the
prohibitions and reporting requirements
contained in the EAR’s antiboycott
provisions do not apply to such requests
from the UAE made after August 16,
2020.
DATES
: This rule is effective June 8,
2021.
FOR FURTHER INFORMATION CONTACT
:
Cathleen Ryan, Director, Office of
Antiboycott Compliance, Bureau of
Industry and Security, U.S. Department
of Commerce, by email at
OAC.WebQueries@bis.doc.gov or
OACINQUIRIES@bis.doc.gov, or by
phone at 202–482–2381.
SUPPLEMENTARY INFORMATION
:
Background
The Office of Antiboycott Compliance
(OAC) administers and enforces the
antiboycott provisions set forth in part
760 (Restrictive Trade Practices and
Boycotts) of the Export Administration
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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations
Regulations (EAR) (15 CFR parts 730
through 774). These antiboycott
provisions discourage, and in certain
circumstances prohibit, United States
persons from taking specific actions in
furtherance or support of an
unsanctioned foreign boycott by a
country against a country friendly to the
United States, including complying
with certain requests to provide
information about business
relationships with a boycotted country
or with blacklisted persons or to refuse
to do business with certain persons for
boycott-related reasons. Pursuant to part
760 of the EAR, the receipt of such
requests may be reportable to OAC.
In connection with an agreement
between the United Arab Emirates
(UAE) and Israel establishing full
diplomatic and commercial relations
and normalization (the ‘‘Abraham
Accords’’), on August 16, 2020, the UAE
issued Federal Decree-Law No. 4 of
2020, which repealed Federal Law No.
15 of 1972 Concerning the Arab League
Boycott of Israel (‘‘August 16, 2020
decree’’), thereby formally ending the
UAE’s participation in the Arab League
Boycott of Israel.
In this final rule, the Bureau of
Industry and Security (BIS) amends part
760 of the EAR to add an Interpretation
that reflects the UAE’s formal
termination (through the issuance of the
August 16, 2020 decree) of its
participation in the Arab League Boycott
of Israel. In making this amendment,
BIS has also taken into account actions
that the UAE Government has
undertaken to implement, in policy and
practice, the August 16, 2020 decree. As
set forth in this Interpretation, which
will appear as new Supplement No. 17
to part 760 of the EAR, certain requests
for information, action or agreement
from the UAE that were presumed to be
boycott-related prior to August 16, 2020
would not be presumed to be boycott-
related if issued after August 16, 2020,
and thus would not be subject to the
prohibitions or reporting requirements
of part 760 of the EAR. Further, the
Interpretation reminds United States
persons that requests that are on their
face boycott-related or that are for action
obviously in furtherance or support of
an unsanctioned foreign boycott are
subject to part 760 of the EAR,
irrespective of the country of
origination.
Export Control Reform Act of 2018
On August 13, 2018, President Donald
J. Trump 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).
Part II of ECRA contains the Anti-
Boycott Act of 2018. ECRA provides the
legal basis for BIS’s principal authorities
and serves as the authority under which
BIS issues this rule.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This final rule has been
designated as not significant for
purposes of Executive Order 12866.
2. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
3. Pursuant to section 1762 of the
Export Control Reform Act of 2018 (50
U.S.C. 4821), this action is exempt from
the Administrative Procedure Act (5
U.S.C. 553) requirements for notice of
proposed rulemaking, opportunity for
public participation, and delay in
effective date.
4. 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. This rule reflects a
policy development involving the
United Arab Emirates that advances the
U.S. Government’s foreign policy and
national security. Accordingly, no
regulatory flexibility analysis is
required, and none has been prepared.
5. 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.), 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–
0012, Report of Requests for Restrictive
Trade Practice or Boycott—Single or
Multiple Transactions. The collection
carries a burden estimate of 60 to 90
minutes for a manual or electronic
submission for a total burden estimate
of 482 hours. BIS expects the burden
hours associated with this collection to
decrease with the publication of this
rule.
List of Subjects in 15 CFR Part 760
Exports, Reporting and recordkeeping
requirements, Trade practices.
Accordingly, part 760 of the Export
Administration Regulations (15 CFR
parts 730–774) is amended as follows:
PART 760—RESTRICTIVE TRADE
PRACTICES OR BOYCOTTS
1. The authority citation for part 760
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.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
2. Add supplement no. 17 to part 760
to read as follows:
Supplement No. 17 to Part 760—
Interpretation
Pursuant to the agreement between
the United Arab Emirates (UAE) and
Israel establishing diplomatic and
commercial relations (the ‘‘Abraham
Accords’’), on August 16, 2020, the UAE
issued Federal Decree-Law No. 4 of
2020, abolishing Federal Law No. 15 of
1972 Concerning the Arab League
Boycott of Israel, thereby formally
terminating participation by the UAE in
the Arab League Boycott of Israel as of
that date.
On the basis of this action, it is the
Department’s position that certain
requests for information, action or
agreement from the UAE, which were
presumed to be boycott-related under
this part of the EAR if issued prior to
August 16, 2020, would not be
presumed to be boycott-related if issued
after August 16, 2020, and thus would
not be prohibited or reportable under
this part of the EAR.
For example, a request from the UAE
that an exporter certify that the vessel
on which it is shipping its goods is
eligible to enter UAE ports was formerly
presumed to be a boycott-related request
under this part of the EAR with which
the exporter could not comply because
the UAE had a boycott law in force
against Israel. Such a request from the
UAE made after August 16, 2020, would
no longer be presumed to be boycott-
related because the underlying boycott
requirement/basis for the certification
was eliminated as of August 16, 2020.
Similarly, a U.S. company would not be
prohibited from complying with a
request made by UAE government
officials after August 16, 2020, to
furnish the place of birth of employees
the company is seeking to take to the
UAE because there is no underlying
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Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations
1
Public Law 107–297, 116 Stat. 2322, codified at
15 U.S.C. 6701 note. Because the provisions of
TRIA (as amended) appear in a note instead of
particular sections of the U.S. Code, the provisions
of TRIA are identified by the sections of the law.
2
TRIA sec. 101(b).
3
See Terrorism Risk Insurance Extension Act of
2005, Public Law 109–144, 119 Stat. 2660;
Terrorism Risk Insurance Program Reauthorization
Act of 2007, Public Law 110–160, 121 Stat. 1839;
Terrorism Risk Insurance Program Reauthorization
Act of 2015, Public Law 114–1, 129 Stat. 3;
Terrorism Risk Insurance Program Reauthorization
Act of 2019, Public Law 116–94, 133 Stat. 2534.
4
31 U.S.C. 313(c)(1)(D).
5
See 31 CFR part 50. Treasury summarized the
history of prior rulemakings in connection with the
Program in a 2016 proposed rulemaking proposing
rule changes to implement the 2015
Reauthorization Act. See 81 FR 18950, 18950–91
(Apr. 1, 2016), https://www.federalregister.gov/
documents/2016/04/01/2016-06920/terrorism-risk-
insurance-program.
6
Guidance Concerning Stand-Alone Cyber
Liability Insurance Policies Under the Terrorism
Risk Insurance Program, 81 FR 95312 (Dec. 27,
2016), https://www.federalregister.gov/documents/
2016/12/27/2016-31244/guidance-concerning-
stand-alone-cyber-liability-insurance-policies-
under-the-terrorism-risk.
7
Terrorism Risk Insurance Program; Updated
Regulations in Light of the Terrorism Risk
Insurance Program Reauthorization Act of 2019,
and for Other Purposes, 85 FR 71588 (Nov. 10,
2020), https://www.federalregister.gov/documents/
2020/11/10/2020-24522/terrorism-risk-insurance-
program-updated-regulations-in-light-of-the-
terrorism-risk-insurance.
8
GAO, Terrorism Risk Insurance: Program
Changes Have Reduced Federal Fiscal Exposure
(GAO–20–348) (Apr. 2020), https://www.gao.gov/
assets/710/706243.pdf.
9
Id. at 18–19.
10
Id. at 19.
UAE government boycott law or policy
that would give rise to a presumption
that the request was boycott-related.
U.S. persons are reminded that
requests that are on their face boycott-
related or that are for action obviously
in furtherance or support of an
unsanctioned foreign boycott are subject
to this part of the EAR, irrespective of
the country of origination. For example,
requests containing references to
‘‘blacklisted companies,’’ ‘‘Israel boycott
list,’’ ‘‘non-Israeli goods,’’ or other
phrases or words indicating a boycott
purpose would be subject to the
appropriate provisions of the
Department’s antiboycott regulations in
this part.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2021–12125 Filed 6–7–21; 4:15 pm]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
31 CFR Part 50
Terrorism Risk Insurance Program;
Updated Regulations in Light of the
Terrorism Risk Insurance Program
Reauthorization Act of 2019, and for
Other Purposes
AGENCY
: Departmental Offices,
Department of the Treasury.
ACTION
: Final rule.
SUMMARY
: The Department of the
Treasury (Treasury) is issuing this final
rule to implement technical changes to
the Terrorism Risk Insurance Program
(TRIP or Program) rules in response to
the Terrorism Risk Insurance Program
Reauthorization Act of 2019. In
addition, Treasury is issuing this final
rule to: Clarify the manner in which
Treasury will calculate ‘‘property and
casualty insurance losses’’ for purposes
of considering certification of an act of
terrorism, and ‘‘insured losses’’ when
administering the financial sharing
mechanisms under the Program,
including the Program Trigger and
Program Cap; incorporate into the
Program rules the prior guidance
provided by Treasury in connection
with stand-alone cyber insurance under
the Program; and provide updated links
to additional information found on the
Program’s website relating to
administration of the Program. The
changes were published in proposed
form for public comment by Treasury on
November 10, 2020.
DATES
: This rule is effective July 12,
2021.
FOR FURTHER INFORMATION CONTACT
:
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, 202–622–2922,
Lindsey Baldwin, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, 202–622–3220, or
Daniel McKnight, Policy Analyst, 202–
622–7009.
SUPPLEMENTARY INFORMATION
:
I. Background
The Terrorism Risk Insurance Act of
2002 (as amended, the Act or TRIA)
1
was enacted on November 26, 2002,
following the attacks of September 11,
2001, to address disruptions in the
market for terrorism risk insurance, help
ensure the continued availability and
affordability of commercial property
and casualty insurance for terrorism
risk, and allow for the private markets
to stabilize and build insurance capacity
to absorb any future losses for terrorism
events.
2
TRIA requires insurers to
‘‘make available’’ terrorism risk
insurance for commercial property and
casualty losses resulting from certified
acts of terrorism (termed ‘‘insured
losses’’ under TRIA), and provides for
shared public and private compensation
for such insured losses. The Program
has been reauthorized four times, most
recently by the Terrorism Risk
Insurance Program Reauthorization Act
of 2019 (2019 Reauthorization Act).
3
The Secretary of the Treasury
(Secretary) administers the Program,
with the assistance of the Federal
Insurance Office (FIO).
4
To assist
insurers, policyholders, and other
interested parties in understanding and
complying with the requirements of the
Act, Treasury has issued regulations
implementing the Program (the Program
Rules).
5
In some instances, Treasury has
also issued interim guidance that may
be relied upon by insurers until
superseded by any regulations. Of
relevance to this final rule, in December
2016, Treasury issued interim guidance
confirming that certain stand-alone
cyber coverage written in a TRIP-eligible
line of insurance was within the scope
of the Program, such that insurers were
obligated to adhere to the ‘‘make
available’’ and disclosure requirements
under TRIA for such coverage (Cyber
Guidance).
6
Treasury proposed the changes in this
final rule in a November 2020 notice of
proposed rulemaking (the November
2020 NPRM).
7
In response to the
reauthorization of the Program for an
additional seven years under the 2019
Reauthorization Act, Treasury proposed
certain technical changes to align the
Program Rules to the new dates for
expiration of the Program and schedule
for recoupment of any payments.
Treasury also proposed in the November
2020 NPRM certain definitional changes
to confirm and clarify the guidance on
cyber coverage in this area that Treasury
provided in its December 2016 Cyber
Guidance. In addition, Treasury
proposed in the November 2020 NPRM
several changes, in part in response to
a report by the Government
Accountability Office (GAO), addressing
certain sources of risk and uncertainty
related to the Program.
8
In its report,
GAO indicated that, based upon its
engagement with stakeholders during
the preparation of the report, some
uncertainty may exist about how
Treasury would apply policyholder
retention amounts in calculating
‘‘property and casualty insurance
losses’’ versus ‘‘insured losses’’ to
determine the Program certification
threshold, Program Trigger, and
Program Cap.
9
GAO recommended that
Treasury provide further clarification to
‘‘prevent uncertainty in the insurance
market and potential litigation following
a terrorist event that that could delay
insurance payments and economic
recovery.’’
10
Treasury proposed certain
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