Export Control Measures Under the Export Administration Regulations (EAR) To Address Iranian Aggression Against Israel and Military Support for Russia

Published date22 April 2024
Record Number2024-08622
Citation89 FR 29254
CourtIndustry And Security Bureau
SectionRules and Regulations
29254
Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Rules and Regulations
assessment or environmental impact
study.
List of Subjects in 14 CFR Part 71
Airspace, Incorporation by reference,
Navigation (air).
The Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 71 as follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for 14 CFR
part 71 continues to read as follows:
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
§ 71.1 [Amended]
2. The incorporation by reference in
14 CFR 71.1 of FAA Order JO 7400.11H,
Airspace Designations and Reporting
Points, dated August 11, 2023, and
effective September 15, 2023, is
amended as follows:
Paragraph 6010(b) Alaskan VOR Federal
Airways.
* * * * *
V–506 [Amended]
From Kotzebue, AK; 53 miles 12 AGL, 71
miles 55 MSL, 35 miles 12 AGL; Nome, AK;
Bethel, AK; 63 miles 12 AGL, 84 miles 70
MSL, 51 miles 12 AGL; to King Salmon, AK.
* * * * *
Issued in Washington, DC, on April 16,
2024.
Frank Lias,
Manager, Rules and Regulations Group.
[FR Doc. 2024–08432 Filed 4–19–24; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 746
[Docket No. 240417–0112]
RIN 0694–AJ61
Export Control Measures Under the
Export Administration Regulations
(EAR) To Address Iranian Aggression
Against Israel and Military Support for
Russia
AGENCY
: Bureau of Industry and
Security, Department of Commerce.
ACTION
: Final rule.
SUMMARY
: In this final rule, the Bureau
of Industry and Security (BIS) makes
changes to the Export Administration
Regulations (EAR) to expand the scope
of items that require a license for export
and reexport to Iran; this rule also
expands the scope of the Russia/
Belarus/Temporarily occupied Crimea
region of Ukraine Foreign Direct
Product (FDP) rule and the Iran FDP
rule. Certain foreign-made items located
outside of the United States are subject
to the EAR because they meet criteria
specified under one of the FDP rules
under the EAR. This final rule expands
the product scope of two of the FDP
rules to make additional items subject to
the EAR and imposes a license
requirement when they are reexported
or exported from abroad to Iran, Russia,
Belarus, or the Temporarily occupied
Crimea region of Ukraine. Prior to this
rule, BIS had not controlled all foreign
transactions involving items covered by
this rule, but in light of recent events
and the need to fully leverage EAR
controls to address U.S. national
security and foreign policy interests,
these additional controls are now
warranted under the EAR.
DATES
: This rule is effective on April 18,
2024.
FOR FURTHER INFORMATION CONTACT
: For
questions on this final rule, contact
Tracy Patts, Supervisory Export Policy
Analyst, Office of Nonproliferation and
Foreign Policy Controls, Bureau of
Industry and Security, Department of
Commerce, Phone: 202–482–4252,
Email: Foreign.Policy@bis.doc.gov
For emails, include ‘‘supplement no.
7’’ in the subject line.
SUPPLEMENTARY INFORMATION
:
I. Background
On April 13, 2024, the Islamic
Republic of Iran and its proxies
conducted an unprecedented air attack
on Israel. Iran’s destabilizing actions
endanger the region and all its people.
In addition, Iran’s military cooperation
with Russia has increased Russia’s
capacity to wage war against Ukraine
while enabling advancements in Iran’s
and Russia’s military capabilities.
Consistent with the U.S. Government’s
commitment to restrict Iran from
obtaining any item that might contribute
to its manufacture of missiles, including
those used against Israel and Ukraine,
this rule amends the EAR to impose
new controls restricting Iran’s access to
additional low-level technology,
including items manufactured outside
the United States that are produced
using U.S. technology, i.e., through the
Iran FDP Rule in § 734.9(j) of the EAR.
Iran is already subject to
comprehensive export restrictions under
U.S. law, including licensing
requirements described in § 746.7 of the
EAR. This rule builds on BIS’s February
2023 action that targeted Iran’s
involvement in supplying Unmanned
Aerial Vehicles (UAVs) in support of
Russia’s war in Ukraine (see 88 FR
12150, February 24, 2023) In that rule,
BIS imposed export and reexport license
requirements on a subset of EAR99
items, i.e., items not specified on the
Commerce Control List (CCL,
supplement no. 1 to part 774 of the
EAR) if destined to Iran, regardless of
whether a U.S. person is involved in the
transaction. BIS also added a new Iran
Foreign Direct Product rule for items in
certain categories of the CCL and for
certain other items identified by
Harmonized Tariff System Codes at the
six-digit level (HTS–6 Codes) in
supplement no. 7 to part 746 of the EAR
in the February 24, 2023 rule. On
January 23, 2024, BIS expanded the list
of items included in supplement no. 7
to part 746 of the EAR (see 89 FR 4804,
January 23, 2024).
Russia, Belarus, and certain
temporarily occupied regions of Ukraine
have been subjected to increasing export
controls since Russia’s full-scale
invasion of Ukraine on February 24,
2022. There are now thousands of
categories of items controlled to these
destinations, including those controlled
together with substantially aligned allies
and partners in the Global Export
Control Coalition (GECC). Export
controls in the EAR extend to foreign
produced items caught by the Russia/
Belarus/Temporarily occupied Crimea
region of Ukraine FDP rule in § 734.9(f)
of the EAR (Russia FDPR), ensuring that
foreign items produced with controlled
software and technology are also caught
by U.S. restrictions. The continued
expansion of controls on Russia,
Belarus, and the temporarily occupied
regions of Ukraine meets U.S. national
security and foreign policy objectives to
continue the degradation of Russia’s
ability to execute its war against
Ukraine.
This action is consistent with U.S.
policy objectives to continue to
strengthen the impact of export control
measures in response to Iran’s attack on
Israel and Iran’s support for Russia’s
war in Ukraine by limiting Iran’s and
Russia’s access to certain EAR99 items
critical to their weapons programs.
II. Overview of New Controls
This rule revises the EAR to enhance
and strengthen existing measures
against Iran, Russia, and Belarus.
Specifically, this rule further expands
the list of items included in supplement
no. 7 to part 746 to include additional
items that are critical to Iran and
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29255
Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Rules and Regulations
Russia’s weapons programs. The export
control measures in this final rule build
upon the national security and foreign
policy objectives of the United States.
The expansion of items included in
supplement no. 7 to part 746 will
enhance the effectiveness of export
controls on Iran and Russia by further
limiting access to items that enable their
military capabilities.
While BIS’s controls cover a vast array
of items necessary to the defense
industries of Iran and Russia, certain
items are more significant to their
weaponry than others. The items in
supplement no. 7 to part 746 will now
include the entirety of the ‘Common
High Priority List’ (CHPL). (See https://
www.bis.doc.gov/index.php/all-articles/
13-policy-guidance/country-guidance/
2172-russia-export-controls-list-of-
common-high-priority-items) BIS, in
coordination with its partners in the
European Union, Japan, and the United
Kingdom, developed the CHPL to jointly
identify items used in Russian weapons
development by HTS–6 Codes. The 50
CHPL HTS–6 Codes include electronic
components such as integrated circuits
and radio frequency (RF) transceiver
modules, items essential for the
manufacturing and testing of electronic
components, and computer numerically
controlled (CNC) machine tools. Iran’s
drone program is also dependent on
foreign sources for these items. In
adding 39 additional items to
supplement no. 7 to part 746, the
supplement will now include all 50
Common High Priority items.
III. Amendments to the EAR
This rule expands the list of items in
supplement no. 7 to part 746 (Items
That Require a License Under § 746.6
When Destined to the Temporarily
Occupied Crimea region of Ukraine,
Under § 746.7 When Destined to Iran,
and Under § 746.8 When Destined to
Russia or Belarus) by adding 39
additional HTS–6 Code entries (845710,
845811, 845891, 845961, 846693,
847180, 848210, 848220, 848230,
848250, 848610, 848620, 848640,
850440, 851769, 852589, 852990,
853400, 853669, 853690, 854110,
854121, 854129, 854130, 854149,
854151, 854159, 854160, 854320,
880730, 901310, 901380, 901420,
901480, 902750, 903020, 903032,
903039, and 903082).
All items subject to the EAR that are
classified under these HTS–6 entries
already require a license for export,
reexport, or transfer (in-country) to
Russia and Belarus under § 746.5 of the
EAR. In addition, CCL and U.S.-origin
EAR99 items classified under these
HTS–6 entries are prohibited for export
or reexport to Iran under § 746.7(e) of
the EAR. By adding these items to
supplement no. 7 to part 746, BIS
jurisdiction over foreign produced items
in these categories will be expanded,
which will in turn expand license
requirements for Russia and Belarus
under § 746.8(a)(2). The addition of
these codes to supplement no. 7 to part
746 will also expand EAR restrictions
over foreign transactions with Iran
under § 746.7(a). The restrictions on
these items are intended to further
undermine the ability of Iran and Russia
to support the production of missiles,
drones, and other military items for use
against Israel and Ukraine.
Savings Clause
Shipments of items removed from
eligibility for a License Exception or
export, reexport, or transfer (in-country)
without a license (NLR) as a result of
this regulatory action that were en route
aboard a carrier to a port of export,
reexport, or transfer (in-country), on
April 18, 2024, pursuant to actual orders
for export, reexport, or transfer (in-
country) to or within a foreign
destination, may proceed to that
destination under the previous
eligibility for a License Exception or
export, reexport, or transfer (in-country)
without a license (NLR), provided the
export, reexport, or transfer (in-country)
is completed no later than on May 20,
2024.
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. BIS has examined the impact of this
rule as required by Executive Orders
12866, 13563, and 14094, which 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 (e.g., potential economic,
environmental, public, health, and
safety effects, distributive impacts, and
equity). Pursuant to E.O. 12866, as
amended, this final rule is not a
‘‘significant regulatory action.’’
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, ‘‘Simple Network
Application Process and Multipurpose
Application Form,’’ which carries a
burden hour estimate of 29.4 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 estimates that these new controls
on Iran under the EAR will result in an
increase of five license applications
submitted annually to BIS. However, the
additional burden falls within the
existing estimates currently associated
with these control numbers. Additional
information regarding these collections
of information—including all
background materials—can be found at
https://www.reginfo.gov/public/do/
PRAMain by using the search function
to enter either the title of the collection
or the OMB Control Number.
3. This rule does not contain policies
with federalism implications as that
term is defined in E.O. 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. 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 neither the Administrative
Procedure Act 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 in 15 CFR Part 746
Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the
preamble, part 746 of the Export
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Rules and Regulations
Administration Regulations (15 CFR
parts 730 through 774) is amended as
follows:
PART 746—EMBARGOES AND OTHER
SPECIAL CONTROLS
1. The authority citation for 15 CFR
part 746 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; 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. 13099, 63 FR
45167, 3 CFR, 1998 Comp., p. 208; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13224, 66 FR 49079, 3 CFR, 2001
Comp., p. 786; Notice of September 19, 2022,
87 FR 57569 (September 21, 202); Notice of
November 8, 2022, 87 FR 68015, 3 CFR, 2022
Comp., p. 563; Notice of September 7, 2023,
88 FR 62439 (September 11, 2023).
2. Supplement no. 7 to part 746 is
amended by adding in numerical order
the following entries to the table:
845710, 845811, 845891, 845961,
846693, 847180, 848210, 848220,
848230, 848250, 848610, 848620,
848640, 850440, 851769, 852589,
852990, 853400, 853669, 853690,
854110, 854121, 854129, 854130,
854149, 854151, 854159, 854160,
854320, 880730, 901310, 901380,
901420, 901480, 902750, 903020,
903032, 903039, and 903082.
Supplement No. 7 to Part 746—Items
That Require a License Under § 746.6
When Destined to the Temporarily
Occupied Crimea Region of Ukraine,
Under § 746.7 When Destined to Iran,
and Under § 746.8 When Destined to
Russia or Belarus
* * * * *
HTS–6 codes HTS description
*******
845710 .............. Machining centers for working metal.
845811 .............. Horizontal lathes for removing metal, numerically controlled.
845891 .............. Lathes, excluding horizontal, for removing metal, numerically controlled.
845961 .............. Milling machines, not knee type, for removing metal, numerically controlled.
846693 .............. Parts and accessories for machine tools, for laser operation, metalworking machining centers, lathes and drilling machines,
etc., NESOI.
*******
847180 .............. Automatic data processing units, NESOI.
848210 .............. Ball bearings.
848220 .............. Tapered roller bearings, including cone and tapered roller assemblies.
848230 .............. Spherical roller bearings.
848250 .............. Cylindrical roller bearings NESOI.
848610 .............. Machines and apparatus for the manufacture of boules or wafers.
848620 .............. Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits.
848640 .............. Machines and apparatus for the manufacture or repair of masks and reticles; for assembling semiconductors devices; for lift-
ing, handling, loading or unloading of semi-conductor devices.
850440 .............. Electrical static converters; power supplies for ADP machines or units of 8471.
*******
851769 .............. Apparatus for the transmission or reception of voice, images or other data, including switching and routing apparatus, NESOI.
852589 .............. Television cameras, digital cameras and video camera recorders.
*******
852990 .............. Parts (except antennas and reflectors) sfor use with radio transmission, radar, radio navigational aid, reception and television
apparatus, NESOI.
*******
853400 .............. Printed circuits.
853669 .............. Electric plugs and sockets for a voltage not exceeding 1,000 V.
853690 .............. Electrical apparatus for switching, protecting or making connections to or in electrical circuits, for a voltage not exceeding
1,000 V, NESOI.
854110 .............. Diodes, other than photosensitive or light-emitting diodes.
854121 .............. Transistors, other than photosensitive, with a dissipation rate of less than 1W.
854129 .............. Transistors, other than photosensitive, NESOI.
854130 .............. Thyristors, diacs and triacs, other than photosensitive devices.
854149 .............. Photosensitive semiconductor devices, excluding photovoltaic generators and cells.
854151 .............. Semiconductor-based transducers, NESOI.
854159 .............. Semiconductor devices NESOI.
854160 .............. Mounted piezoelectric crystals.
*******
854320 .............. Electrical signal generators.
*******
880730 .............. Other parts of airplanes, helicopters or unmanned aircraft.
901310 .............. Telescopic sights for fitting to arms; periscopes; telescopes designed to form parts of machines, appliances, instruments or
apparatus of this chapter or Section XVI.
901380 .............. Other optical devices, appliances and instruments not elsewhere specified.
901420 .............. Instruments and appliances for aeronautical or space navigation (other than compasses).
901480 .............. Other navigational instruments and appliances.
902750 .............. Other instruments and apparatus using optical radiations (ultraviolet, visible, infrared).
903020 .............. Oscilloscopes and oscillographs.
903032 .............. Multimeters with recording device.
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Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Rules and Regulations
HTS–6 codes HTS description
903039 .............. Instruments and apparatus for measuring or checking voltage, current, resistance or electrical power, with recording device.
903082 .............. Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, for
measuring or checking semiconductor wafers or devices.
Thea D. Rozman Kendler,
Assistant Secretary for Export
Administration.
[FR Doc. 2024–08622 Filed 4–18–24; 11:15 am]
BILLING CODE 3510–JT–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9989]
RIN 1545–BQ75
Elective Payment of Advanced
Manufacturing Investment Credit;
Correction
AGENCY
: Internal Revenue Service (IRS),
Treasury.
ACTION
: Final rule; correction.
SUMMARY
: This document contains
corrections to Treasury Decision 9989,
which was published in the Federal
Register for Monday, March 11, 2024.
Treasury Decision 9989 issued final
regulations concerning the elective
payment election of the advanced
manufacturing investment credit under
the Creating Helpful Incentives to
Produce Semiconductors (CHIPS) Act of
2022.
DATES
: These corrections are effective
on April 22, 2024 and for dates of
applicability see § 1.48D–6(h).
FOR FURTHER INFORMATION CONTACT
:
Concerning these final regulations, Lani
M. Sinfield of the Office of Associate
Chief Counsel (Passthroughs and
Special Industries) at (202) 317–4137
(not a toll-free number).
SUPPLEMENTARY INFORMATION
:
Background
The final regulations (TD 9989) that
are the subject of this correction are
under section 48D of the Internal
Revenue Code.
Corrections to Publication
Accordingly, the final regulations (TD
9989) that are the subject of FR Doc.
2024–04605, published on March 11,
2024, are corrected to read:
1. On page 17597, in the third column,
the ninth line of the first full paragraph
is corrected to read ‘‘§ 1.48D–6(b)(7)(iv)
is revised in the’’.
2. On page 17600, in the first column,
fourth line from the bottom of the
column is corrected to read, ‘‘completed
Form 3800 which may be’’.
3. On page 17605, in the third column,
the second line from the bottom of the
column is corrected to read, ‘‘credit. A
partnership or S corporation’’.
§ 1.48D–6 [Corrected]
4. On page 17608, in the third column,
paragraph (c)(1)(iv)(A) is corrected to
read ‘‘The taxpayer claiming to be an
eligible taxpayer is not a foreign entity
of concern within the meaning of
regulations under section 48D and has
not made an applicable transaction as
defined under regulations under section
50 during the taxable year that the
qualified property is placed in service;
and’’.
5. On page 17612, in the first column,
the third line from the bottom of
paragraph (f)(3)(i) is corrected to read
‘‘48D(d)(2)(A)(i)(I) and paragraph (d)
of’’.
6. On page 17612, in the second
column, lines twenty-two through
twenty-nine of paragraph (f)(4) are
corrected to read, ‘‘$100,000. In 2025,
the IRS determines that the amount of
the section 48D credit properly
allowable to A Corp in 2023 with
respect to Facility A (as determined
under regulations under section 48D
that apply for purposes of determining
the amount of the section 48D credit
and without regard to the limitation
based on tax in section 38(c)) was
$60,000. A Corp is not able to show’’.
7. On page 17612, in the third column,
the second line of paragraph (h)(2) is
corrected to read, ‘‘years ending before
March 11, 2024,’’.
Aron L. Cosby,
Federal Register Liaison, Publications &
Regulations Branch, Legal Processing
Division, Associate Chief Counsel, (Procedure
and Administration).
[FR Doc. 2024–08494 Filed 4–19–24; 8:45 am]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2022–0090; FRL–9528–02–
R9]
Air Plan Approval; California; Feather
River Air Quality Management District;
Nonattainment New Source Review;
2015 Ozone Standard
AGENCY
: Environmental Protection
Agency (EPA).
ACTION
: Final rule.
SUMMARY
: The Environmental Protection
Agency (EPA) is taking final action to
approve a state implementation plan
(SIP) revision submitted by the State of
California addressing the nonattainment
new source review (NNSR)
requirements for the 2015 ozone
National Ambient Air Quality Standards
(NAAQS). This SIP revision addresses
the Feather River Air Quality
Management District (District) portion
of the California SIP. This action is
being taken pursuant to the Clean Air
Act (CAA or Act) and its implementing
regulations.
DATES
: This rule is effective on May 22,
2024.
ADDRESSES
: The EPA has established a
docket for this action under Docket ID
No. EPA–R09–OAR–2022–0090. All
documents in the docket are listed on
the https://www.regulations.gov
website. Although listed in the index,
some information is not publicly
available, e.g., Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available through https://
www.regulations.gov, or please contact
the person identified in the
FOR FURTHER
INFORMATION CONTACT
section for
additional availability information. If
you need assistance in a language other
than English or if you are a person with
disabilities who needs a reasonable
accommodation at no cost to you, please
contact the person identified in the
FOR
FURTHER INFORMATION CONTACT
section.
FOR FURTHER INFORMATION CONTACT
:
Amita Muralidharan, EPA Region IX, 75
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