Federal Register / Vol. 76, No. 50 / Tuesday, March 15, 2011 / Proposed Rules 13931 

copy of a purchase order required by 

paragraph (b)(1) of this section; and 

(4) If the replacement parts or 

components are shipped, the exporter 

must use the U. S. Postal Service, or 

only those freight forwarders registered 

with the Directorate of Defense Trade 

Controls and eligible, or licensed 

customs brokers that are subject to 

background investigation and have 

passed a comprehensive examination 

administered by U.S. Customs and 

Border Protection. If export is by hand 

carry, the exporter must ensure that the 

AES filing is completed at the time of 

export; and 

(5) Maintain records, to be provided 

on request to the Directorate of Defense 

Trade Controls, U.S. Immigration and 

Customs Enforcement, U.S. Customs 

and Border Protection, and other 

authorized U.S. law enforcement 

agencies, that support the exporter’s 

authority to use the exemption in 

accordance with the requirements of 

paragraphs (a)(1) through (9) and (b)(1) 

and (2) of this section. 

(c) The authority to use this 

exemption may be revoked at any time 

by the Managing Director, Directorate of 

Defense Trade Controls, if the exporter 

is found to be not in compliance with 

the requirements listed in this section. 

PART 126—GENERAL POLICIES AND 

PROVISIONS 

3. The authority citation for part 126 

continues to read as follows: 

Authority: Secs. 2, 38, 40, 42 and 71, Pub. 

L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 

2780, 2791 and 2797); E.O. 11958, 42 FR 

4311; 3 CFR, 1977 Comp., p.79; 22 U.S.C. 

2651a; 22 U.S.C. 287c; E.O. 12918, 59 FR 

28205; 3 CFR, 1994 Comp., p.899; Sec. 1225, 

Pub. L. 108–375. 

4. Part 126 is amended by adding and 

reserving §§ 126.16–126.18 to read as 

follows: 

§ 126.16 [Reserved] 

§ 126.17 [Reserved] 

§ 126.18 [Reserved] 

5. Add § 126.19 to read as follows: 

§ 126.19 Policy on the export and re-export 

of defense articles incorporated into 

commodities ‘‘subject to the EAR.’’ 

(a) A license or other approval from 

the Department of State is not required 

for the export or re-export of a defense 

article(s) that has/have been 

incorporated into an end-item subject to 

the Export Administration Regulations 

(EAR) (see 15 CFR 734.3), when all of 

the following conditions are met: 

(1) The end-item would be rendered 

inoperable, for purposes of intended 

applications or enhanced capabilities 

for which the defense article was 

incorporated into the end-item, by the 

removal of the defense article(s); and 

(2) ‘‘Technology’’ subject to the EAR 

for the ‘‘production,’’ ‘‘development,’’ or 

‘‘use’’ (as defined in 15 CFR 772.1) of the 

end-item does not include any technical 

data (as defined by § 120.10) or 

‘‘technical assistance’’ (as defined in 15 

CFR 772.1) qualifying as defense 

services (as defined by § 120.9) about 

the defense article(s) incorporated into 

the end-item; and 

(3) Incorporation of the defense 

article(s) does/do not provide, nor is it 

related to, a military application or 

‘‘military end-use’’ (as defined in 15 CFR 

744.21), or does not result in a ‘‘military 

commodity’’ (as defined in 15 CFR 

§ 772.1); and 

(4) The value of the defense articles is 

less than 1% of the value of the enditem. 

(b) A license or other approval from 

the Department of State is not required 

for the export or re-export of a defense 

article(s) that has/have been 

incorporated into a component (as 

defined in ITAR § 121.8(b)) subject to 

the EAR or an end-item subject to the 

EAR, when all the following conditions 

are met: 

(1) The defense article would be 

destroyed (i.e., rendered useless beyond 

the possibility of restoration) by its 

removal from the component, major 

assembly or end-item; 

(2) ‘‘Technology’’ subject to the EAR 

for the ‘‘production,’’ ‘‘development,’’ or 

‘‘use’’ (as defined in 15 CFR 772.1) of the 

component, or major assembly does not 

include any technical data (as defined 

by § 120.10) or ‘‘technical assistance’’ (as 

defined in 15 CFR 772.1) qualifying as 

defense services (as defined by § 120.9) 

about the defense article incorporated 

into the component or major assembly; 

and 

(3) Incorporation of the defense article 

does not provide, nor is it related to, a 

military application or ‘‘military enduse’’ (as defined in 15 CFR 744.21), or 

does not result in a ‘‘military 

commodity’’ (as defined in 15 CFR 

772.1). 

(c) A license or other approval from 

the Department of State is required for 

the export or re-export of the defense 

article when exported or re-exported as 

a replacement part or component for a 

component, major assembly, or enditem subject to the EAR. 

Dated: March 4, 2011. 

Ellen O. Tauscher, 

Under Secretary, Arms Control and 

International Security, Department of State. 

[FR Doc. 2011–5821 Filed 3–14–11; 8:45 am] 

BILLING CODE 4710–25–P 

DEPARTMENT OF STATE 

22 CFR Chapter I 

28 CFR Chapter XI 

[Public Notice: 7351] 

Department of State Retrospective 

Review under E.O. 13563 

AGENCY: Department of State. 

ACTION: Request for information and 

comment. 

SUMMARY: As part of its implementation 

of Executive Order 13563, ‘‘Improving 

Regulation and Regulatory Review,’’ 

issued by the President on January 18, 

2011, the Department of State (DOS) is 

seeking comments and information from 

interested parties to assist DOS in 

reviewing its existing regulations to 

determine if any of them should be 

modified or repealed. The purpose of 

this review is to make DOS’s regulatory 

program more effective and less 

burdensome in achieving its regulatory 

objectives. 

DATES: Written comments and 

information are requested on or before 

March 31, 2011. 

ADDRESSES: Interested persons are 

encouraged to submit comments, 

identified by ‘‘Regulatory Review,’’ by 

any of the following methods: 

Docket: For access to the docket to 

read background documents or 

comments received, go to the Federal 

e-Rulemaking Portal at http:// 

www.regulations.gov and search on 

docket number DOS–2011–0047. 

Mail: U.S. Department of State, 

A/GIS/DIR, SA–22, Washington, DC 

20522–2201. 

E-Mail: RegulatoryReview@State.gov. 

Include ‘‘Regulatory Review’’ in the 

subject line of the message. 

FOR FURTHER INFORMATION CONTACT: 

Thelma Furlong, 202–216–9600. 

SUPPLEMENTARY INFORMATION: On 

January 18, 2011, the President issued 

Executive Order 13563, ‘‘Improving 

Regulation and Regulatory Review,’’ to 

ensure that Federal regulations seek 

more affordable, less intrusive means to 

achieve policy goals, and that agencies 

give careful consideration to the benefits 

and costs of those regulations. The 

Executive Order can be found at: 

http://www.gpo.gov/fdsys/pkg/FR-2011- 

01-21/pdf/2011-1385.pdf. 

To implement the Executive Order, 

the Department is taking two immediate 

steps to launch its retrospective review 

of existing regulatory and reporting 

requirements. First, the Department 

issues this Request for Information (RFI) 

seeking public comment on how best to 

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13932 Federal Register / Vol. 76, No. 50 / Tuesday, March 15, 2011 / Proposed Rules 

review its existing regulations and to 

identify whether any of its existing 

regulations should be modified or 

repealed. Second, the Department has 

created a link on the DOS Internet site 

to an e-mail in-box at 

RegulatoryReview@State.gov, which 

interested parties can use to identify to 

DOS—on a continuing basis— 

regulations that may be in need of 

review in the future. These steps will 

help the Department ensure that its 

regulations remain necessary, properly 

tailored, and have up-to-date 

requirements that effectively achieve 

regulatory objectives without imposing 

unwarranted costs. 

Request for Information 

Pursuant to the Executive Order, the 

Department is developing a preliminary 

plan for the periodic review of its 

existing regulations and reporting 

obligations. The Department’s goal is to 

create a systematic method for 

identifying those significant rules that 

are obsolete or simply no longer make 

sense. While this review will focus on 

the elimination of rules that are no 

longer warranted, DOS will also 

consider strengthening, complementing, 

or modernizing rules where necessary or 

appropriate—including, as relevant, 

undertaking new rulemakings. 

Consistent with the Department’s 

commitment to public participation in 

the rulemaking process, the Department 

is beginning this process by soliciting 

views from the public on how best to 

conduct its analysis of existing DOS 

rules and how best to identify those 

rules that might be modified or 

repealed. It is also seeking views from 

the public on specific rules or 

Department-imposed obligations that 

should be altered or eliminated. In 

short, engaging the public in an open, 

transparent process is a crucial first step 

in DOS’s review of its existing 

regulations. 

List of Questions for Commenters 

The following list of questions is 

intended solely to assist in the 

formulation of comments and is not 

intended to be exhaustive or restrict the 

issues that the public might want to 

address. The Department requests that 

anyone submitting comments specify 

the regulation or reporting requirement 

at issue, providing legal citation when 

known, and the reasons why the 

regulation or reporting requirement 

should be modified or repealed. 

(1) How can the Department best 

promote meaningful periodic reviews of 

its existing rules and how can it best 

identify those rules that might be 

modified or repealed? 

(2) What factors should the agency 

consider in selecting and prioritizing 

rules and reporting requirements for 

review? 

(3) Are there regulations that simply 

make no sense or have become 

unnecessary, ineffective, or ill advised 

and, if so, what are they? 

(4) Are there rules that are still 

necessary, but have not operated as well 

as expected such that a stronger or 

different approach is justified? 

(5) Does the Department currently 

collect information that it does not need 

or use effectively to achieve regulatory 

objectives? 

(6) Are there regulations, reporting 

requirements, or regulatory processes 

that are unnecessarily complicated or 

could be streamlined to achieve 

regulatory objectives in more efficient 

ways? 

(7) Can new technologies be leveraged 

to modify or do away with existing 

regulatory or reporting requirements? 

(8) How can the Department best 

obtain and consider accurate, objective 

information and data about the costs, 

burdens, and benefits of existing 

regulations? Are there existing sources 

of data the Department can use to 

evaluate the post-promulgation effects 

of regulations over time? 

(9) Are there regulations that are 

working well that can be expanded or 

used as a model to fill gaps in other 

DOS regulatory programs? 

(10) Are there other concerns that 

DOS should consider consistent with 

Executive Order 13563? 

The Department notes that this RFI is 

issued solely for information and 

program-planning purposes. While 

responses to this RFI do not bind DOS 

to any further actions related to the 

response, all submissions will be made 

publicly available on http:// 

www.regulations.gov. 

Dated: March 3, 2011. 

Patrick F. Kennedy, 

Under Secretary, Office of the Undersecretary 

for Management, Department of State. 

[FR Doc. 2011–5813 Filed 3–14–11; 8:45 am] 

BILLING CODE 4710–24–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[REG–140108–08] 

RIN 1545–BI29 

Disclosure of Information to State 

Officials Regarding Tax-Exempt 

Organizations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that amend 

existing regulations to reflect changes to 

section 6104(c) of the Internal Revenue 

Code (Code) made by the Pension 

Protection Act of 2006 (PPA). These 

rules provide guidance to states 

regarding the process by which they 

may obtain or inspect certain returns 

and return information (including 

information about final and proposed 

denials and revocations of tax-exempt 

status) for the purpose of administering 

state laws governing certain tax-exempt 

organizations and their activities. These 

regulations will affect such exempt 

organizations, as well as those state 

agencies choosing to obtain information 

from the Internal Revenue Service (IRS) 

under section 6104(c). 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by June 13, 2011. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–140108–08), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–140108– 

08), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC, or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–140108– 

08). 

FOR FURTHER INFORMATION CONTACT: 

Concerning submission of comments, 

Oluwafunmilayo Taylor, (202) 622–7180 

(not a toll-free number); concerning the 

proposed regulations, Casey Lothamer, 

(202) 622–6070 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

I. In General 

This document contains proposed 

amendments to 26 CFR part 301 under 

section 6104(c), which will replace 

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