Temporary General License: Extension of Validity

Citation84 FR 64018
Record Number2019-25189
Published date20 November 2019
SectionRules and Regulations
CourtIndustry And Security Bureau
Federal Register, Volume 84 Issue 224 (Wednesday, November 20, 2019)
[Federal Register Volume 84, Number 224 (Wednesday, November 20, 2019)]
                [Rules and Regulations]
                [Pages 64018-64019]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-25189]
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                DEPARTMENT OF COMMERCE
                Bureau of Industry and Security
                15 CFR Part 744
                [Docket No. 191115-0082]
                RIN 0694-AH97
                Temporary General License: Extension of Validity
                AGENCY: Bureau of Industry and Security, Commerce.
                ACTION: Final rule.
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                SUMMARY: The U.S. Government has decided to extend through February 16,
                2020, the temporary general license to Huawei Technologies Co., Ltd.
                (Huawei) and one hundred and fourteen of its non-U.S. affiliates on the
                Entity List. In order to implement this decision, this final rule
                revises the temporary general license to remove the expiration date of
                November 18, 2019, and substitute the date of February 16, 2020.
                DATES: This rule is effective November 18, 2019, through February 16,
                2020. The expiration date of the final rule published on May 22, 2019
                (84 FR 23468) and the final rule published on August 21, 2019 (84 FR
                43487) is extended until February 16, 2020.
                FOR FURTHER INFORMATION CONTACT: Director, Office of Exporter Services,
                Bureau of Industry and Security, Department of Commerce, Phone: (949)
                660-0144 or (408) 998-8806 or email your inquiry to:
                [email protected].
                SUPPLEMENTARY INFORMATION:
                Background
                 As published on May 22, 2019 (84 FR 23468) and extended and amended
                through a final rule published on August 21, 2019 (84 FR 43487), this
                temporary general license authorizes certain activities, including
                those necessary for the continued operations of existing networks and
                equipment as well as the support of existing mobile services, including
                cybersecurity research critical to maintaining the integrity and
                reliability of existing and fully operational networks and equipment.
                Exporters, reexporters, and transferors are required to maintain
                certifications and other records, to be made available when requested
                by BIS, regarding their use of the temporary general license.
                 As published on May 22, 2019 (84 FR 22961), and as revised and
                clarified by a final rule published on August 21, 2019, (84 FR 43493),
                any exports, reexports, or in-country transfers of items subject to the
                EAR to any of the listed Huawei entities as of the effective date they
                were added to the Entity List continue to require a license, with the
                exception of transactions explicitly authorized by the temporary
                general license and eligible for export, reexport, or transfer (in-
                country) prior to May 16, 2019 without a license or under a license
                exception. License applications will continue to be reviewed under a
                presumption of denial, as stated in the Entity List entries for the
                listed Huawei entities.
                 No persons are relieved of other obligations under the EAR,
                including but not limited to licensing requirements to the People's
                Republic of China (PRC or China) or other destinations and the
                requirements of part 744 of the EAR. The temporary general license also
                does not authorize any activities or transactions involving Country
                Group E countries (i.e., Cuba, Iran, North Korea, Sudan, and Syria) or
                foreign nationals.
                Extension of Validity
                 At this time, the U.S. Government has decided to extend the
                temporary general license until February 16, 2020. In order to
                implement this U.S. Government decision, this final rule revises the
                temporary general license to remove the date of November 18, 2019 and
                substitute the date of February 16, 2020 in the introductory text in
                paragraph (b)(1) of the temporary general license and in the
                introductory text of paragraph (c) of Supplement No. 7 to part 744.
                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 (previously, 50
                U.S.C. 4601 et seq.) (as in effect prior to August 13, 2018 and as
                continued in effect pursuant to the International Emergency Economic
                Powers Act (50 U.S.C. 1701 et seq.)) or 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 necessary, to select regulatory approaches that maximize
                net benefits (including potential economic, environmental, public
                health and safety effects, distributive 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 rule has been determined to be not significant for
                purposes of Executive Order 12866. This rule is not an Executive Order
                13771 regulatory action because this rule is not significant under
                Executive Order 12866.
                 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
                collections previously approved by OMB under control number 0694-0088,
                Simplified Network Application Processing System, which includes, among
                other things, license applications, and carries a burden estimate of
                42.5 minutes for a manual or electronic submission. Total burden hours
                associated with the PRA and OMB control number 0694-0088 are not
                expected to increase as a result of this rule. You may send comments
                regarding the collection of information associated with this rule,
                including suggestions for reducing the burden, to Jasmeet K. Seehra,
                Office of Management and Budget (OMB), by email to
                [email protected], or by fax to (202) 395-7285.
                 3. This rule does not contain policies with Federalism implications
                as that term is defined in Executive Order 13132.
                 4. Pursuant to section 1762 of ECRA, this action is exempt from the
                [[Page 64019]]
                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.
                List of Subjects in 15 CFR Part 744
                 Exports, Reporting and recordkeeping requirements, Terrorism.
                 Accordingly, part 744 of the Export Administration Regulations (15
                CFR parts 730 through 774) is amended as follows:
                PART 744--[AMENDED]
                0
                1. The authority citation for 15 CFR part 744 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, 2019, 83 FR 49633 (September 20, 2019); Notice of
                November 12, 2019, 84 FR 61817 (November 13, 2019).
                0
                2. Supplement No. 7 to part 744 is amended by revising the first
                sentence of the introductory text, paragraph (b)(1), and paragraph (c)
                introductory text to read as follows:
                Supplement No. 7 to Part 744--Temporary General License
                 Notwithstanding the requirements and other provisions of
                Supplement No. 4 to this part, which became effective as to Huawei
                Technologies Co., Ltd. (Huawei), Shenzhen, Guangdong, China on May
                16, 2019, and its non-U.S. affiliates listed in Supplement No. 4 to
                this part on, as applicable, May 16, 2019 or August 19, 2019, the
                licensing and other requirements in the EAR as of May 15, 2019, are
                restored in part as of May 20, 2019, and through February 16, 2020,
                pertaining to exports, reexports, and transfers (in-country) of
                items subject to the EAR to any of the listed Huawei entities. * * *
                * * * * *
                 (b) * * *
                 (1) This temporary general license is effective from May 20,
                2019, through February 16, 2020.
                * * * * *
                 (c) Authorized transactions. This temporary general license
                allows, from May 20, 2019, through February 16, 2020, the following:
                * * * * *
                 Dated: November 15, 2019.
                Matthew S. Borman,
                Deputy Assistant Secretary for Export Administration.
                [FR Doc. 2019-25189 Filed 11-18-19; 11:15 am]
                BILLING CODE 3510-33-P
                

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