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. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

4613 

Vol. 79, No. 19 

Wednesday, January 29, 2014 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 732, 736, 740, 744, 752, 

754, 758, 766, 770, 772 

[Docket No. 130829771–3771–01] 

RIN 0694–AF97 

Export Administration Regulations: 

Editorial Clean-Up of References to 

Foreign Trade Regulations 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is amending the Export 

Administration Regulations (EAR) to 

harmonize it with revisions made to the 

Census Bureau’s Foreign Trade 

Regulations (FTR) by correcting 

citations, nomenclature, and procedures 

set forth in the EAR. 

DATES: Effective Date of this rule is 

January 29, 2014. 

ADDRESSES: Comments on this rule may 

be via email to publiccomments@

bis.doc.gov or in hardcopy to Regulatory 

Policy Division, Bureau of Industry and 

Security, Room 2099B, U.S. Department 

of Commerce, 14th St. and Pennsylvania 

Ave. NW., Washington, DC 20230. 

Please refer to RIN 0694–AF97 in all 

comments and in the subject line of 

email comments. 

FOR FURTHER INFORMATION CONTACT: 

Sharron Cook, Regulatory Policy 

Division, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–2440 or by email at 

sharron.cook@bis.doc.gov. 

SUPPLEMENTARY INFORMATION

Background 

The Bureau of the Census (Census 

Bureau) amended its regulations, the 

Foreign Trade Regulations (FTR) 15 CFR 

Part 30, to implement a requirement for 

mandatory filing of export information 

through the Automated Export System 

(AES) or through AESDirect for all 

shipments where a Shipper’s Export 

Declaration (SED) is required and to 

reflect new export reporting 

requirements, respectively on June 2, 

2008 (73 FR 31555) and March 14, 2013 

(78 FR 16366). These rules moved many 

requirements to different sections 

within the FTR and introduced new 

terminology, e.g., Electronic Export 

Information (EEI); they did not 

substantively change any of the 

requirements in the Export 

Administration Regulations (EAR). This 

rule revises many citation references in 

the EAR to the FTR, removes the term 

‘‘Shipper’s Export Declaration (SED)’’ 

and adds in its place ‘‘Electronic Export 

Information (EEI),’’ and makes other 

amendments to the EAR to harmonize it 

with the current FTR. This rule does not 

change any substantive portions of the 

EAR. 

Section 732.5 Steps 

The title of this section is changed 

from ‘‘Steps regarding Shipper’s Export 

Declaration or Automated Export 

System record, Destination Control 

Statements, and recordkeeping’’ to 

‘‘Steps regarding Electronic Export 

Information (EEI) requirements, 

Destination Control Statement, and 

recordkeeping.’’ Paragraph (a) 

introductory paragraph ‘‘Step 27’’ title is 

revised from ‘‘Shipper’s Export 

Declaration (SED) or Automated Export 

System (AES) record’’ to read 

‘‘Electronic Export Information (EEI) 

filing requirements.’’ All references to 

the SED are replaced with references to 

the EEI. The title of the Bureau of 

Census regulations is changed from 

‘‘Foreign Trade Statistics Regulations 

(FTSR)’’ to ‘‘Foreign Trade Regulations 

(FTR).’’ 

In paragraph (a)(1) the requirement 

text is updated to read, ‘‘You must 

report the correct license code that 

corresponds with your license authority 

(license or license exception) or 

designation (No License Required 

(NLR)) for your export on the EEI filing, 

as appropriate.’’ References are added to 

15 CFR 30.6(b)(23) and Part III of 

Appendix B to 15 CFR Part 30 of the 

FTR. Also, a sentence is added to 

remind exporters that by reporting a 

code/symbol for a license exception on 

an EEI filing they are certifying that 

their transaction meets the criteria of 

that license exception. Additionally, it 

notifies exporters that AES checks 

certain license exception criteria against 

the data entered on the EEI, and that if 

the data conflicts with eligibility criteria 

of the license exception it will result in 

a fatal error in the AES system. 

Paragraph (a)(1)(i) is redesignated as 

(a)(2) and the title is changed from 

‘‘License number and expiration date’’ 

to ‘‘License number,’’ because the 

expiration date is no longer required. 

AES automatically checks whether the 

license has expired. A reference to 15 

CFR 30.6(b)(5) of the FTR is added to 

this paragraph. 

Paragraph (a)(1)(ii) is removed, as the 

requirement for entering the license 

exception authority is already addressed 

in paragraph (a)(1). 

Paragraph (a)(1)(iii) is removed, as the 

requirement for entering the license 

code for the designation NLR is 

included in paragraph (a)(1). The 

requirements for entering license code 

for NLR on the EEI and proper use of 

NLR are set forth in § 758.1(g)(3) of the 

EAR and do not need to be repeated 

here. 

Paragraph (a)(2) ‘‘item description’’ is 

redesignated as (a)(3) and terminology 

and citation references are updated to 

harmonize with the FTR. 

Paragraph (a)(3) ‘‘Entering the ECCN’’ 

is redesignated as (a)(4) and terminology 

and citation references are updated to 

harmonize with the FTR. In addition, 

this rule clarifies that ‘‘EAR99’’ must be 

entered in the Export Control 

Classification Number (ECCN) block of 

the EEI filing for items that are not 

classified under an ECCN for all 

licensed and license exception exports, 

and NLR exports of items having a 

reason for control other than or in 

addition to anti-terrorism (AT). 

Supplement No. 2 to Part 736— 

Administrative Orders 

Paragraph (a)(3) is amended by 

removing the reference to the SED in 

paragraph (a)(3)(iv) and adding a new 

paragraph (a)(3)(v) to the definition of 

the terms ‘‘practice before BIS’’ and 

‘‘appear before BIS.’’ These terms will 

now also include ‘‘reporting on behalf of 

another to the Census Bureau Electronic 

Export Information to the Automated 

Export System.’’ 


tkelley on DSK3SPTVN1PROD with RULES
4614 Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 

Part 740—License Exceptions 

Section 740.1 is amended by revising 

paragraph (d). The Title is changed from 

‘‘Shippers Export Declaration or 

Automated Export System Record’’ to 

‘‘Electronic Export Information (EEI) 

filing.’’ This rule updates reference 

citations to the FTR and terminology to 

harmonize with the FTR. 

Section 740.13 ‘‘License Exception 

TSU’’ is amended by revising footnote 3 

to paragraph (d)(1) to correct FTR 

references and terminology. 

Section 740.15 ‘‘License Exception 

AVS’’ is amended by revising 

paragraphs (c)(1)(iv) and (c)(2)(iv) to 

correct FTR references and terminology. 

Section 744.7 Restrictions on certain 

exports to and for the use of certain 

foreign vessels or aircraft 

Section 744.7 is amended by revising 

paragraphs (b)(1)(iv) and (b)(2)(iv) to 

correct FTR references and terminology. 

Part 752 Special Comprehensive 

License 

Section 752.7 is amended by revising 

paragraph (b)(1) to replace Shipper’s 

Export Declaration with Electronic 

Export Information (EEI). 

Section 752.15 is amended by revising 

paragraph (a) to correct terminology in 

order to harmonize with the FTR. 

Part 754 Short Supply 

Section 754.4 is amended by revising 

paragraph (c)(4) to correct FTR 

references and terminology. 

Supplement No. 2 to Part 754 is 

amended by revising footnote 1 to 

correct terminology in order to 

harmonize with the FTR. 

Part 758 Export Clearance 

Section 758.1 is revised to update 

FTR citations and terminology. Text that 

only pertained to FTR has been 

removed, e.g., the Note to paragraph (b) 

concerning FTR requirements for ‘‘in 

transit goods.’’ 

In § 758.1(g)(1), the requirement to 

input the expiration date of the license 

is removed, because once the license 

number is entered, AES will check the 

expiration date of the license against the 

data BIS transmits to the AES system. 

In § 758.1(g)(3), this rule removes the 

option to enter ‘‘TSPA’’ for exports 

consisting of technology or software 

outside the scope of the EAR. BIS no 

longer has any need to collect data on 

this subset of NLR exports; therefore, 

the symbol ‘‘TSPA’’ is no longer 

necessary. This rule also clarifies that 

the NLR designator is to be used only 

when no license is required for the 

export. 

Section 758.2 Automated Export 

System (AES) 

This section has been completely 

rewritten, in order to update the status 

and procedures for postdeparture filing 

(i.e., Option 4) in AES, to conform to the 

FTR. 

Section 758.3 Responsibilities of 

parties to the transaction 

The Note to paragraph (b) is removed, 

because the FTR no longer has a 

definition for exporter. 

Section 758.5 Conformity of 

documents and unloading of items 

Section 758.5 is amended by revising 

paragraphs (b), (c)(1), (c)(2)(i), (c)(2)(ii), 

and (d) to correct FTR references and 

terminology. 

Section 758.7 Authority of the Office 

of Export Enforcement, the Bureau of 

Industry and Security, Customs offices 

and Postmasters in clearing shipments 

Section 758.7 is amended by revising 

paragraph (b)(1)(i) to correct FTR 

references and terminology. 

Supplement No. 1 to Part 766 

‘‘Guidance on Charging and Penalty 

Determinations in Settlement of 

Administrative Enforcement Cases’’ 

Supplement No. 1 to part 766 

‘‘Guidance on Charging and Penalty 

Determinations in Settlement of 

Administrative Enforcement Cases’’ is 

amended by revising paragraphs (III)(A) 

‘‘Related Violations,’’ (III)(B)(8) 

‘‘Mitigating Factors,’’ and (III)(B)(4) 

‘‘Aggravating Factors,’’ to correct FTR 

references and terminology. 

Section 770.2 Interpretations 

Section 770.2 is amended by revising 

paragraphs (e)(2)(ii) and (f), to correct 

FTR references and terminology. 

Part 772 Definitions of terms used in 

the EAR 

Section 772.1 is amended by revising 

the definitions for the terms 

‘‘Automated Export System (AES),’’ 

‘‘export control document,’’ ‘‘exporter,’’ 

and ‘‘NLR’’ to correct FTR references 

and terminology. For the term 

‘‘exporter’’ the last sentence that stated 

the FTR’s definition for the term 

exporter, which differed from the 

definition of the term in the EAR, is 

removed. The newly revised FTR does 

not define the term ‘‘exporter;’’ 

therefore, that last sentence no longer 

applies and is removed by this rule. 

Export Administration Act 

Since August 21, 2001, the Export 

Administration Act of 1979, as 

amended, has been in lapse. However, 

the President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as amended by 

Executive Order 13637 of March 8, 

2013, 78 FR 16129 (March 13, 2013), 

and as extended by the Notice of August 

8, 2013, 78 FR 49107 (August 12, 2013), 

has continued the EAR in effect under 

the International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.). BIS 

continues to carry out the provisions of 

the Export Administration Act, as 

appropriate and to the extent permitted 

by law, pursuant to Executive Order 

13222 as amended by Executive Order 

13637. 

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 designated a ‘‘not significant 

regulatory action,’’ under section 3(f) of 

Executive Order 12866. 

2. The Department finds that there is 

good cause under 5 U.S.C. 553(b)(3)(B) 

to waive the provisions of the 

Administrative Procedure Act requiring 

prior notice and the opportunity for 

public comment because they are 

unnecessary. The revisions made by this 

rule are administrative, not substantive, 

in nature and merely update the EAR to 

reflect changes to regulations referenced 

therein. The rule does not affect the 

rights and obligations of the public. 

Because these revisions are not 

substantive changes to the EAR, it is 

unnecessary to provide prior notice and 

opportunity for public comment. In 

addition, the 30-day delay in 

effectiveness required by 5 U.S.C. 553(d) 

is not applicable because this rule is not 

a substantive rule. As stated above, 

these revisions do not alter any rights or 

obligations, but merely correct citations, 

nomenclature, and procedures set forth 

in the EAR so that those references are 

harmonized with revisions that have 

been made to the FTR. The waiver is 

necessary to avoid undue public 

confusion. As a result, no benefit would 

be gained by delaying this rule’s 

effectiveness for 30 days. This final rule 

is exempt from the analytical 

requirements of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 4615 

because no general notice of proposed 

rulemaking was required for this rule. 

List of Subjects 

15 CFR Parts 732, 740, 752, and 758 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Parts 736, 770 and 772 

Exports 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Part 754 

Agricultural commodities, Exports, 

Forests and forest products, Horses, 

Petroleum, Reporting and recordkeeping 

requirements. 

15 CFR Part 766 

Administrative practice and 

procedure, confidential business 

information, Exports, Law enforcement, 

Penalties. 

Accordingly, Parts 732, 736, 740, 744, 

752, 754, 758, 766, 770, and 772 of the 

Export Administration Regulations (15 

CFR Parts 730–774) are amended as 

follows: 

PART 732—[AMENDED] 

■ 1. The authority citation for 15 CFR 

Part 732 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 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; Notice 

of August 8, 2013, 78 FR 49107 (August 12, 

2013). 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 

1701 et seq.; 22 U.S.C. 2151 note; 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. 13338, 69 FR 

26751, 3 CFR, 2004 Comp., p. 168; Notice of 

May 7, 2013, 78 FR 27301 (May 9, 2013); 

Notice of August 8, 2013, 78 FR 49107 

(August 12, 2013); Notice of November 7, 

2013, 78 FR 67289 (November 12, 2013). 

■ 2. Section 732.5 is amended by 

revising the section heading and 

paragraph (a) to read as follows: 

§ 732.5 Steps regarding Electronic Export 

Information (EEI) requirements, Destination 

Control Statements, and recordkeeping. 

(a) Step 27: Electronic Export 

Information (EEI) filing requirements. 

Exporters or agents authorized to file 

EEI to the Automated Export System 

(AES), should review § 758.1 of the EAR 

to determine when the EAR requires EEI 

to be filed and what EEI data elements 

the EAR requires to be included. More 

detailed information about EEI filing 

procedures and requirements may be 

found in the Bureau of Census Foreign 

Trade Regulations (FTR) at 15 CFR Part 

30. Reexporters and firms exporting 

from abroad may skip Steps 27 through 

29 and proceed directly to § 732.6 of the 

EAR. 

(1) License code/license exception 

code (license code). You must report the 

correct license code that corresponds 

with your license authority (license or 

license exception) or designation (No 

License Required (NLR)) for your export 

on the EEI filing, as appropriate. See 

§ 758.1(g) of the EAR and 15 CFR 

30.6(a)(23) and Part III of Appendix B to 

15 CFR Part 30 of the FTR. Generally, 

conflicts of data elements with license 

exception criteria, e.g., ECCN or 

destination, will result in a fatal error in 

the AES system. By reporting a license 

code for a license exception on an EEI 

filing you are certifying that your 

transaction meets the criteria of that 

license exception. By reporting a license 

code of NLR you are certifying that no 

license is required for your export. 

(2) License number. If you are 

exporting under the authority of a 

license, you must report the license 

number on the EEI filing. See 15 CFR 

30.6(b)(5) of the FTR. 

(3) Item description. You must report 

an item description identical to the item 

description on the license when a 

license is required, or report an item 

description sufficient in detail to permit 

review by the U.S. Government and 

verification of the Schedule B Number 

or the Harmonized Tariff Schedule of 

the United States (HTS) for license 

exception exports or exports for which 

No License is Required (NLR). See 

§ 758.1(g) of the EAR; and 15 CFR 

30.6(a)(13) of the FTR. 

(4) Entering the ECCN. You must 

report the correct Export Control 

Classification Number (ECCN) or 

‘‘EAR99’’ for items that are not 

classified under an ECCN on the EEI 

filing for all licensed and license 

exception exports, and ‘‘No License 

Required’’ (NLR) exports of items 

having a reason for control other than or 

in addition to anti-terrorism (AT). The 

only exception to this requirement 

would be the return of unwanted foreign 

origin items, meeting the provisions of 

License Exception TMP, under 

§ 740.9(b)(3) of the EAR. See § 758.1(g) 

of the EAR and 15 CFR 30.6(b)(6) of the 

FTR. 

* * * * * 

PART 736—[AMENDED] 

■ 3. The authority citation for 15 CFR 

Part 736 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 2151 note; 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. 

13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 

168; Notice of May 7, 2013, 78 FR 27301 

(May 9, 2013); Notice of August 8, 2013, 78 

FR 49107 (August 12, 2013); Notice of 

November 7, 2013, 78 FR 67289 (November 

12, 2013). 

■ 4. Supplement No. 2 to Part 736 is 

amended by: 

■ a. Removing the phrase ‘‘Shipper’s 

Export Declarations also are’’ from 

‘‘Administrative Order One’’ and adding 

in its place ‘‘Electronic Export 

Information (EEI) filings via the 

Automated Export System (AES) are 

also’’; and 

■ b. Revising paragraph (a)(3) of 

Administrative Order Two to read as 

follows: 

Supplement No. 2 to Part 736— 

Administrative Orders 

* * * * * 

Administrative Order Two * * * 

(a) * * * 

(3) Definition. As used in this 

Administration Order, the terms ‘‘practice 

before BIS’’ and ‘‘appear before BIS’’ include: 

(i) The submission on behalf of another of 

applications for export licenses or other 

documents required to be filed with BIS, or 

the execution of the same; 

(ii) Conferences or other communications 

on behalf of another with officers or 

employees of BIS for the purpose of soliciting 

or expediting approval by BIS of applications 

for export licenses or other documents, or 

with respect to quotas, allocations, 

requirements or other export control actions, 

pertaining to matters within the jurisdiction 

of BIS; 

(iii) Participating on behalf of another in 

any proceeding pending before BIS; 

(iv) Submission on behalf of another of a 

license or other export control document to 

U.S. Customs and Border Protection (CBP); 

and 

(v) Reporting on behalf of another 

Electronic Export Information via the 

Automated Export System (AES) to CBP. 

* * * * * 

PART 740—[AMENDED] 

■ 5. The authority citation for 15 CFR 

Part 740 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 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; Notice of August 8, 2013, 78 

FR 49107 (August 12, 2013). 

■ 5A. Section 740.1 is amended by 

revising paragraph (d) to read as 

follows: 


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4616 Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 

§ 740.1 Introduction. 

* * * * * 

(d) Electronic Export Information 

(EEI) filing. You must enter on any 

required EEI filing the correct License 

Code that corresponds to the 

appropriate license exception symbol 

(e.g., LVS, GBS, CIV) and the correct 

Export Control Classification Number 

(ECCN) (e.g., 4A003, 5A002) for all 

exports of items under a license 

exception. Items temporarily in the 

United States meeting the provisions of 

License Exception TMP, under 

§ 740.9(b)(3), are excepted from this 

requirement. See § 758.1 of the EAR and 

15 CFR Part 30 of the FTR for EEI 

requirements. 

* * * * * 

■ 6. Section 740.13 is amended by 

revising footnote 3 to paragraph (d)(1) to 

read as follows: 

§ 740.13 Technology and software— 

unrestricted (TSU). 

* * * * * 

(d) * * * 

(1) * * * 

3 Pursuant to 15 CFR § 30.37(f) of the 

Foreign Trade Regulations (FTR), Electronic 

Export Information (EEI) via the Automated 

Export System (AES) is required for massmarket software. 

■ 7. Section 740.15 is amended by 

revising paragraphs (c)(1)(iv) and 

(c)(2)(iv), to read as follows: 

§ 740.15 Aircraft and vessels (AVS). 

* * * * * 

(c) * * * 

(1) * * * 

(iv) Shipped as cargo for which 

Electronic Export Information (EEI) is 

filed to the Automated Export System 

(AES) in accordance with the 

requirements of the Foreign Trade 

Regulations (FTR) (15 CFR Part 30), 

except EEI is not required to be filed 

when any of the commodities, other 

than fuel, is exported by U.S. airlines to 

their own aircraft abroad for their own 

use, see 15 CFR 30.37(o) of the FTR. 

(2) * * * 

(iv) Shipped as cargo for which 

Electronic Export Information (EEI) is 

filed to the Automated Export System 

(AES) record is filed in accordance with 

the requirements of the Foreign Trade 

Regulations (FTR) (15 CFR Part 30), 

except EEI is not required to be filed 

when any of these commodities is 

exported by U.S. airlines to their own 

installations and agents abroad for use 

in their aircraft operations, see 15 CFR 

30.37(o) of the FTR. 

* * * * * 

PART 744—[AMENDED] 

■ 8. The authority citation for 15 CFR 

Part 744 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 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. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; 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 January 17, 2013, 78 FR 4303 

(January 22, 2013) Notice of August 8, 2013, 

78 FR 49107 (August 12, 2013); Notice of 

September 18, 2013, 78 FR 58151 (September 

20, 2013); Notice of November 7, 2013, 78 FR 

67289 (November 12, 2013). 

■ 9. Section 744.7 is amended by 

revising paragraphs (b)(1)(iv) and 

(b)(2)(iv) to read as follows: 

§ 744.7 Restrictions on certain exports to 

and for the use of certain foreign vessels 

or aircraft. 

* * * * * 

(b) * * * 

(1) * * * 

(iv) Shipped as cargo for which 

Electronic Export Information (EEI) is 

filed to the Automated Export System 

(AES) in accordance with the 

requirements of the Foreign Trade 

Regulations (FTR) (15 CFR Part 30), 

except EEI is not required to be filed 

when any of the commodities, other 

than fuel, is exported by U.S. airlines to 

their own aircraft abroad for their own 

use, see 15 CFR 30.37(o) of the FTR. 

(2) * * * 

(iv) Shipped as cargo for which 

Electronic Export Information (EEI) is 

filed to the Automated Export System 

(AES) in accordance with the 

requirements of the Foreign Trade 

Regulations (FTR) (15 CFR Part 30), 

except EEI is not required to be filed 

when any of these commodities is 

exported by U.S. airlines to their own 

installations and agents abroad for use 

in their aircraft operations, see 15 CFR 

30.37(o) of the FTR. 

* * * * * 

PART 752—[AMENDED] 

■ 10. The authority citation for 15 CFR 

Part 752 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13020, 61 FR 54079, 

3 CFR, 1996 Comp., p. 219; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 8, 2013, 78 FR 49107 (August 12, 

2013). 

■ 11. Section 752.7 is amended by 

revising paragraph (b)(1) to read as 

follows: 

§ 752.7 Direct shipment to customers. 

* * * * * 

(b) * * * 

(1) Exports by an SCL holder. The 

SCL holder may make a direct shipment 

by entering on the Electronic Export 

Information (EEI) the name and address 

of the customer as ultimate consignee 

and adding the notation ‘‘by order of 

(name and address of consignee 

requesting the direct shipment).’’ The 

notation must appear below the item 

description in the commodity 

description field and must cite the SCL 

number followed by the three digit 

number of the consignee requesting the 

‘‘by order of’’ shipment. 

* * * * * 

■ 12. Section 752.15 is amended by 

revising paragraph (a) to read as follows: 

§ 752.15 Export clearance. 

(a) Electronic Export Information 

(EEI). The EEI filing to the Automated 

Export System (AES) covering an export 

made under an SCL must be prepared in 

accordance with requirements of the 

Foreign Trade Regulations (15 CFR Part 

30) and § 758.1 of the EAR. 

(1) Item descriptions. Item 

descriptions on the EEI must indicate 

specifically the ECCN and item 

description conforming to the 

applicable CCL description and 

incorporating any additional 

information where required by Schedule 

B (e.g., type, size, name of specific item, 

etc.). 

(2) Value of shipments. There is no 

value limitation on shipments under the 

SCL; however, you must indicate the 

value of each shipment on EEI. 

(3) SCL number. The EEI must include 

the Special Comprehensive License 

(SCL) number in the License Number 

field and the name of the SCL’s 

approved consignee in the Ultimate 

Consignee field to whom the shipment 

is authorized. 

* * * * * 

PART 754—[AMENDED] 

■ 13. The authority citation for 15 CFR 

Part 754 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 30 U.S.C. 185(s), 185(u); 42 U.S.C. 

6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; E.O. 

11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 

114; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 8, 2013, 78 

FR 49107 (August 12, 2013). 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 4617 

■ 14. Section 754.2 is amended by 

revising paragraphs (h)(2) and (i)(3), to 

read as follows: 

§ 754.2 Crude oil. 

* * * * * 

(h) * * * 

(2) A person exporting crude oil 

pursuant to this License Exception must 

enter on any required Electronic Export 

Information (EEI) filing to the 

Automated Export System (AES) the 

correct license code that corresponds to 

‘‘SS–SPR.’’ 

(i) * * * 

(3) A person exporting crude oil 

pursuant to this License Exception must 

enter on any required Electronic Export 

Information (EEI) filing to the 

Automated Export System (AES) the 

correct license code that corresponds to 

‘‘SS–SAMPLE.’’ 

* * * * * 

■ 15. Section 754.4 is amended by 

revising paragraph (c)(4) to read as 

follows: 

§ 754.4 Unprocessed western red cedar. 

* * * * * 

(c) * * * 

(4) A person exporting any item 

pursuant to this license exception must 

enter on any required Electronic Export 

Information (EEI) filing to the 

Automated Export System (AES) the 

correct license code that corresponds to 

‘‘SS–WRC.’’ 

* * * * * 

■ 16. Supplement No. 2 to Part 754 is 

amended by revising footnote 1 to read 

as follows: 

Supplement No. 2 to Part 754— 

Unprocessed Western Red Cedar 

* * * * * 1 Schedule B Numbers are provided only 

as a guide to proper completion of the 

Electronic Export Information (EEI) filing to 

the Automated Export System (AES). 

PART 758—[AMENDED] 

■ 17. The authority citation for 15 CFR 

Part 758 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

8, 2013, 78 FR 49107 (August 12, 2013). 

■ 18. Sections 758.1 and 758.2 are 

revised to read as follows: 

§ 758.1 The Electronic Export Information 

(EEI) filing to the Automated Export System 

(AES). 

(a) The Electronic Export Information 

(EEI) filing to the Automated Export 

System (AES). The EEI is used by the 

Bureau of Census to collect trade 

statistics and by the Bureau of Industry 

and Security for export control 

purposes. The EEI collects basic 

information such as the names and 

addresses of the parties to a transaction; 

the Export Control Classification 

Number (ECCN) (when required), the 

Schedule B number or Harmonized 

Tariff Schedule of the United States 

(HTS) number, the description, quantity 

and value of the items exported; and the 

license authority for the export. The EEI 

is a statement to the United States 

Government that the transaction 

occurred as described. 

(b) When is an EEI filing required to 

be filed in the AES. Except when the 

export of items subject to the EAR is to 

take place electronically or in an 

otherwise intangible form, you must file 

EEI in the AES with the United States 

Government for items subject to the 

EAR, including exports by U.S. mail, in 

the following situations: 

(1) For all exports of items subject to 

the EAR that are destined to a country 

in Country Group E:1 of Supplement 

No. 1 to Part 740 of the EAR regardless 

of value; 

(2) For all exports subject to the EAR 

that require submission of a license 

application, regardless of value or 

destination; 

(3) For all exports of ‘‘600 series’’ 

items enumerated in paragraphs .a 

through .x of a ‘‘600 series’’ ECCN 

regardless of value or destination, 

including exports to Canada; 

(4) For all exports under license 

exception Strategic Trade Authorization 

(STA); 

(5) For all exports of commodities and 

mass market software subject to the EAR 

when the value of the commodities or 

mass market software classified under a 

single Schedule B Number (or HTS) is 

over $2,500, except as exempted by the 

Foreign Trade Regulations (FTR) in 15 

CFR Part 30 and referenced in paragraph 

(c) of this section; 

(6) For all exports of items subject to 

the EAR that will be transshipped 

through Canada to a third destination, 

where the export would require EEI or 

license if shipped directly to the final 

destination from the United States (see 

15 CFR 30.36(b)(2) of the FTR); or 

(7) For all items exported under 

authorization Validated End-User 

(VEU). 

(c) Exemptions. A complete list of 

exemptions from the EEI filing 

requirement is set forth in the 15 CFR 

30.35 through 30.40 of the FTR. Some 

of these FTR exemptions have elements 

in common with certain EAR license 

exceptions. An FTR exemption may be 

narrower than an EAR license 

exception. The following references are 

provided in order to direct you to the 

FTR exemptions that relate to EAR 

license exceptions: 

(1) License Exception Baggage (BAG), 

as set forth in § 740.14 of the EAR. See 

15 CFR 30.37(x) of the FTR; 

(2) License Exception Gift Parcels and 

Humanitarian Donations (GFT), as set 

forth in § 740.12 of the EAR. See 15 CFR 

30.37(h) of the FTR; 

(3) License Exception Aircraft and 

Vessels (AVS), as set forth in § 740.15 of 

the EAR. See 15 CFR 30.37(o) (5) of the 

FTR; 

(4) License Exception Governments 

and International Organizations (GOV), 

as set forth in § 740.11 of the EAR. See 

15 CFR 30.39 and 30.40 of the FTR; 

(5) License Exception Technology and 

Software Under Restriction (TSR), as set 

forth in § 740.6 of the EAR. See 15 CFR 

30.37(f) of the FTR; or 

(6) License Exception Temporary 

Imports, Exports, and Reexports (TMP) 

‘‘tools of trade’’, as set forth in 

§ 740.9(a)(2)(i) of the EAR. See 15 CFR 

30.37(b) of the FTR. 

(d) Notation on export documents for 

exports exempt from EEI filing 

requirements. When an exemption from 

filing the EEI applies, the export 

authority (license exception or NLR) of 

all the items must be entered on the 

loading document (e.g., Cargo 

Declaration, manifest, bill of lading, 

(master) air waybill) by the person 

responsible for preparing the document, 

see 15 CFR 30.35 of the FTR. This 

requirement is intended to parallel the 

Bureau of Census requirement, so that 

notations as to the basis for the EEI 

exemption and the license authority are 

entered in the same place and manner 

(see 15 CFR 30.45(e) and (f) of the FTR 

for detailed requirements). The loading 

document must be available for 

inspection by government officials, 

along with the items, prior to lading on 

the carrier. 

(e) Filing the Electronic Export 

Information (EEI) to the AES. The 

person who files the EEI to the AES 

must be in the United States at the time 

of filing. The person who transmits the 

EEI to the AES must be a certified AES 

participant in accordance with 15 CFR 

30.5 of the FTR. The person who 

transmits EEI to the AES, whether 

exporter (U.S. principal party in 

interest) or agent, is responsible for the 

truth, accuracy, and completeness of the 

EEI, except insofar as that person can 

demonstrate that he or she reasonably 

relied on information furnished by 

others. 

(f) The EEI is an export control 

document. The EEI is a statement to the 

United States Government. The EEI is 

an export control document as defined 

in Part 772 of the EAR. False statements 


tkelley on DSK3SPTVN1PROD with RULES
4618 Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 

made thereon may be a violation of 

§ 764.2(g) of the EAR. When EEI is filed 

to the AES, the filer of the EEI 

represents the following: 

(1) Export of the items described on 

the EEI filing is authorized under the 

terms and conditions of a license issued 

by BIS; is in accordance with the terms 

and conditions of a license exception; is 

authorized under ‘‘NLR’’ as no license is 

required for the shipment; or is not 

subject to the EAR; 

(2) Statements on the EEI filing are in 

conformity with the contents of any 

license issued by BIS, with the possible 

exception of the exporter block in 

routed transactions; and 

(3) All information shown on the EEI 

filing is true, accurate, and complete. 

(g) Export control information on the 

EEI filing in AES. For each item on the 

EEI filing, you must report the license 

authority (license number, License 

Exception symbol, or No License 

Required (NLR) designator), the Export 

Control Classification Number (ECCN) 

(when required), and the item 

description in the designated blocks. 

The item description must be stated in 

Commerce Control List (CCL) terms. If 

those terms are inadequate to meet the 

Bureau of Census requirements, the FTR 

requires that you give enough additional 

detail to permit verification of the 

Schedule B Number (or Harmonized 

Tariff Schedule of the United States 

(HTS) number). See 15 CFR Part 30, 

Appendix B, Part III of the FTR for 

license codes. 

(1) Exports under a license. When 

exporting under the authority of a 

license, you must report on the EEI 

filing to the AES the license code that 

corresponds to the license, license 

number, the ECCN, and an item 

description identical to the item 

description on the license. 

(2) Exports under a license exception. 

You must report on any required EEI 

filing to the AES the ECCN and the 

correct License Exception symbol (e.g., 

LVS, GBS, CIV) for the License 

Exception(s) and the license code/

license exception code that corresponds 

to the license exception under which 

you are exporting. Items temporarily in 

the United States meeting the provisions 

of License Exception TMP, under 

§ 740.9(b)(3), are exempted from 

entering the ECCN. See also § 740.1(d) 

of the EAR. 

(3) No License Required (NLR) 

exports. You must report on any 

required EEI filing to the AES the 

correct license code/license exception 

code when using the ‘‘NLR’’ designation 

for the items that are subject to the EAR 

but not listed on the Commerce Control 

List (CCL) (i.e., items are designated as 

EAR99) (FTR license code ‘‘C33’’), and 

when the items to be exported are listed 

on the CCL but are not subject to a 

license requirement. In addition, you 

must enter the correct ECCN on any 

required EEI filing for all items being 

exported under the NLR provisions that 

have a reason for control other than or 

in addition to anti-terrorism (AT). 

(h) Power of attorney or other written 

authorization. In a ‘‘power of attorney’’ 

or other written authorization, authority 

is conferred upon an agent to perform 

certain specified acts or kinds of acts on 

behalf of a principal. 

(1) An agent must obtain a power of 

attorney or other written authorization 

in the following circumstances: 

(i) An agent that represents a foreign 

principal party in interest in a routed 

transaction must obtain a power of 

attorney or other written authorization 

that sets forth his authority; and 

(ii) An agent that applies for a license 

on behalf of a principal party in interest 

must obtain a power of attorney or other 

written authorization that sets forth the 

agent’s authority to apply for the license 

on behalf of the principal. 

Note to paragraph (h)(1): The Bureau of 

Census Foreign Trade Regulations impose 

additional requirements for a power of 

attorney or other written authorization. See 

15 CFR 30.3(f) of the FTR. 

(2) This requirement for a power of 

attorney or other written authorization 

is a legal requirement aimed at ensuring 

that the parties to a transaction negotiate 

and understand their responsibilities. 

The absence of a power of attorney or 

other written authorization does not 

prevent BIS from using other evidence 

to establish the existence of an agency 

relationship for purposes of imposing 

liability. 

(i) Filing the Electronic Export 

Information (EEI). The EEI must be filed 

with the United States Government in 

the manner prescribed by the Bureau of 

Census Foreign Trade Regulations (15 

CFR Part 30). 

§ 758.2 Automated Export System (AES). 

The Bureau of the Census’ Foreign 

Trade Regulations (FTR) (15 CFR Part 

30) contain provisions for filing 

Electronic Export Information (EEI) 

using the Automated Export System 

(AES). In order to use AES, you must 

apply directly to the Bureau of the 

Census (Census Bureau) for certification 

and approval (see 15 CFR 30.5(a) of the 

FTR). Two electronic filing options 

(predeparture and postdeparture) are 

available for transmitting EEI. 

Predeparture filing requires that all 

information be reported in AES prior to 

export (15 CFR 30.4(a) and (b) of the 

FTR). Postdeparture filing is available 

only for approved companies (approved 

by the Census Bureau, U.S. Customs and 

Border Protection, and BIS) and requires 

no information to be transmitted prior to 

export with complete information 

reported postdeparture no later than five 

(5) calendar days after the date of 

exportation (15 CFR 30.4(c) of the FTR). 

(a) Census Bureau’s postdeparture 

application process. Exporters, or agents 

applying on behalf of an exporter, may 

apply for postdeparture privileges by 

submitting a Letter of Intent to the 

Bureau of Census (Census Bureau) 

Census Bureau in accordance with 15 

CFR 30.5(a) of the FTR. The Census 

Bureau will distribute the Letter of 

Intent to BIS and other agencies 

participating in the postdeparture 

approval process. Any agency may 

notify the Census Bureau that an 

applicant has failed to meet its 

acceptance standards, and the Census 

Bureau will provide a denial letter to 

the applicant naming the denying 

agency. If the Census Bureau receives 

neither notification of denial, nor a 

request for an extension from the agency 

within 30 days of the date of referral of 

the letter of intent to the agency, the 

applicant is deemed to be approved by 

that agency. (15 CFR 30.5(c) of the FTR). 

(b) BIS postdeparture evaluation 

criteria. BIS will consider the grounds 

for denial of postdeparture filing status 

set forth in 15 CFR 30.5(c)(1) of the FTR, 

as well as the additional grounds for 

denial set forth in this paragraph. 

(1) Applicants have not been 

approved for postdeparture filing 

privileges by the Census Bureau or other 

agency; 

(2) Any party to the export transaction 

is contained on BIS’s Denied Party, 

Entity Lists, [SDN], or Unverified List; 

(3) Exports are destined to a country 

in Country Group E:1 (Supplement No.1 

to Part 740 of the EAR); 

(4) Exports are made under License 

Exception Strategic Trade Authorization 

(STA); are made under authorization 

Validated End User (VEU); or are ‘‘600 

series’’ items; or 

(5) Exports containing items that 

require a BIS license or have an ECCN 

controlled for reasons other than AntiTerrorism only or Encryption Items. 

(c) Contacts for assistance. (1) For 

additional information on the AES in 

general, please contact the Foreign 

Trade Division, U.S. Census Bureau, 

(800) 549–0595, ext. 1. 

(2) For information about BIS’s 

postdeparture approval process for 

items subject to the EAR, contact: 

Director, Office of Technology 

Evaluation, Bureau of Industry and 

Security, (202) 482–4933, facsimile: 

(202) 482–5361. 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 4619 

§ 758.3 [Amended] 

■ 19. Section 758.3 is amended by 

removing the Note to paragraph (b). 

■ 20. Section 758.5 is amended by 

revising paragraphs (b), (c)(1), (c)(2), and 

(d), to read as follows: 

§ 758.5 Conformity of documents and 

unloading of items. 

* * * * * 

(b) Conformity of documents. When a 

license is issued by BIS, the information 

entered on related export control 

documents (e.g., Electronic Export 

Information (EEI) filing, bill of lading or 

air waybill) must be consistent with the 

license. 

(c) Issuance of the bill of lading or air 

waybill. (1) Ports in the country of the 

ultimate consignee or end user. No 

person may issue a bill of lading or air 

waybill that provides for delivery of 

licensed items to any foreign port 

located outside the country of an 

intermediate consignee, ultimate 

consignee, or end user named on the 

BIS license and in the EEI filing. 

(2) Optional ports of unloading. (i) 

Licensed items. No person may issue a 

bill of lading or air waybill that provides 

for delivery of licensed items to optional 

ports of unloading unless all the 

optional ports are within the country of 

ultimate destination or are included on 

the BIS license and in the EEI filing. 

(ii) Unlicensed items. For shipments 

of items that do not require a license, 

the exporter may designate optional 

ports of unloading in EEI filing and on 

other export control documents, so long 

as the optional ports are in countries to 

which the items could also have been 

exported without a license. 

(d) Delivery of items. No person may 

deliver items to any country other than 

the country of an intermediate 

consignee, ultimate consignee, or end 

user named on the BIS license and EEI 

filing without prior written 

authorization from BIS, except for 

reasons beyond the control of the carrier 

(such as acts of God, perils of the sea, 

damage to the carrier, strikes, war, 

political disturbances or insurrection). 

* * * * * 

■ 21. Section 758.7 is amended by 

revising paragraph (b)(1)(i) to read as 

follows: 

§ 758.7 Authority of the Office of Export 

Enforcement, the Bureau of Industry and 

Security, Customs offices and Postmasters 

in clearing shipments. 

* * * * * 

(b) * * * 

(1) * * * 

(i) Purpose of inspection. All items 

declared for export are subject to 

inspection for the purpose of verifying 

the items specified in the Electronic 

Export Information (EEI) filing, or if 

there is no EEI filing, the bill of lading 

or other loading document covering the 

items about to be exported, and the 

value and quantity thereof, and to 

assure observance of the other 

provisions of the Export Administration 

Regulations. This authority applies to 

all exports within the scope of the 

Export Administration Act or Export 

Administration Regulations whether or 

not such exports require a license issued 

by BIS. The inspection may include, but 

is not limited to, item identification, 

technical appraisal (analysis), or both. 

* * * * * 

PART 766—[AMENDED] 

■ 22. The authority citation for 15 CFR 

Part 766 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

8, 2013, 78 FR 49107 (August 12, 2013). 

■ 23. Supplement No. 1 to Part 766 is 

amended by revising the ‘‘Related 

Violations’’ paragraph in section III.A., 

revising paragraph 8. under the heading 

‘‘Mitigating Factors’’ in section III.B., 

and revising paragraph 4. under the 

heading ‘‘Aggravating Factors’’ in 

section III.B. to read as follows: 

Supplement No. 1 to Part 766— 

Guidance on Charging and Penalty 

Determinations in Settlement of 

Administrative Enforcement Cases 

* * * * * 

III. How BIS Determines What Sanctions Are 

Appropriate in a Settlement 

A. * * * 

Related Violations: Frequently, a single 

export transaction can give rise to multiple 

violations. For example, an exporter who 

mis-classifies an item on the Commerce 

Control List may, as a result of that error, 

export the item without the required export 

license and file Electronic Export Information 

(EEI) to the Automated Export System (AES) 

that both misstates the applicable Export 

Control Classification Number (ECCN) and 

erroneously identifies the export as 

qualifying for the designation ‘‘NLR’’ (no 

license required). In so doing, the exporter 

commits three violations: one violation of 

§ 764.2(a) of the EAR for the unauthorized 

export and two violations of § 764.2(g) for the 

two false statements on the EEI filing to the 

AES. It is within the discretion of BIS to 

charge three separate violations and settle the 

case for a penalty that is less than would be 

appropriate for three unrelated violations 

under otherwise similar circumstances, or to 

charge fewer than three violations and 

pursue settlement in accordance with that 

charging decision. In exercising such 

discretion, BIS typically looks to factors such 

as whether the violations resulted from 

knowing or willful conduct, willful blindness 

to the requirements of the EAR, or gross 

negligence; whether they stemmed from the 

same underlying error or omission; and 

whether they resulted in distinguishable or 

separate harm. 

* * * * * 

B. Specific Mitigating and Aggravating 

Factors: 

* * * * * 

Mitigating Factors 

* * * * * 

8. The violation was not likely to involve 

harm of the nature that the applicable 

provisions of the EAA, EAR or other 

authority (e.g., a license condition) were 

intended to protect against; for example, a 

false statement on an Electronic Export 

Information (EEI) filing to the Automated 

Export System (AES) that an export was 

‘‘NLR,’’ when in fact a license requirement 

was applicable, but a license exception was 

available. 

* * * * * 

Aggravating Factors 

* * * * * 

4. The violation was likely to involve harm 

of the nature that the applicable provisions 

of the EAA, EAR or other authority (e.g., a 

license condition) are principally intended to 

protect against, e.g., a false statement on an 

Electronic Export Information (EEI) filing to 

the Automated Export System (AES) that an 

export was destined for a non-embargoed 

country, when in fact it was destined for an 

embargoed country. 

* * * * * 

PART 770—[AMENDED] 

■ 24. The authority citation for 15 CFR 

Part 770 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

8, 2013, 78 FR 49107 (August 12, 2013). 

■ 25. Section 770.2 is amended by 

revising paragraphs (e)(2)(ii) and (f), to 

read as follows: 

§ 770.2 Item interpretations. 

* * * * * 

(e) * * * 

(2) * * * 

(ii) When preparing the Electronic 

Export Information (EEI) on the 

Automated Export System (AES), a 

system being shipped complete (i.e., 

machine and control unit), should be 

reported under the Schedule B number 

for each machine. When either a control 

unit or a machine is shipped separately, 

it should be reported under the 

Schedule B number appropriate for the 

individual item being exported. 

(f) Interpretation 6: ‘‘Parts,’’ 

‘‘accessories,’’ and equipment exported 

as scrap. ‘‘Parts,’’ ‘‘accessories,’’ or 

equipment that are being shipped as 

scrap should be described on the EEI 

filing to the AES in sufficient detail to 

be identified under the proper ECCN. 


tkelley on DSK3SPTVN1PROD with RULES
4620 Federal Register / Vol. 79, No. 19 / Wednesday, January 29, 2014 / Rules and Regulations 

When commodities declared as ‘‘parts,’’ 

‘‘accessories,’’ or equipment are shipped 

in bulk, or are otherwise not packaged, 

packed, or sorted in accordance with 

normal trade practices, the Customs 

Officer may require evidence that the 

shipment is not scrap. Such evidence 

may include, but is not limited to, bills 

of sale, orders and correspondence 

indicating whether the commodities are 

scrap or are being exported for use as 

‘‘parts,’’ ‘‘accessories,’’ or equipment. 

* * * * * 

PART 772—[AMENDED] 

■ 26. The authority citation for 15 CFR 

Part 772 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 

3 CFR, 2001 Comp., p. 783; Notice of August 

8, 2013, 78 FR 49107 (August 12, 2013). 

§ 772.1 [Amended] 

■ 27. Section 772.1 is amended by 

revising the following definitions 

‘‘Automated Export System (AES)’’, 

‘‘export control document’’, ‘‘exporter’’, 

and ‘‘NLR’’, to read as follows: 

§ 772.1 Definitions of terms as used in the 

Export Administration Regulations (EAR). 

* * * * * 

Automated Export System (AES). AES 

is a nationwide system operational at all 

ports and for all methods of 

transportation through which export 

shipment data required by multiple 

agencies is filed electronically to U.S. 

Customs and Border Protection, using 

the efficiencies of Electronic Data 

Interchange (EDI). AES allows the 

export information to be collected 

electronically and edited immediately. 

For more information about AES, visit 

the Bureau of Census Web site at: 

http://www.census.gov/foreign-trade/

aes/index.html or see 15 CFR Part 30 the 

Foreign Trade Regulations 

* * * * * 

Export control document. A license; 

application for license; any and all 

documents submitted in accordance 

with the requirements of the EAR in 

support of, or in relation to, a license 

application; application for 

International Import Certificate; 

Delivery Verification Certificate or 

similar evidence of delivery; Electronic 

Export Information (EEI) on the 

Automated Export System (AES) 

presented in connection with shipments 

to any country; a Dock Receipt or bill of 

lading issued by any carrier in 

connection with any export subject to 

the EAR and any and all documents 

prepared and submitted by exporters 

and agents pursuant to the export 

clearance requirements of Part 758 of 

the EAR; a U.S. exporter’s report of 

request received for information, 

certification, or other action indicating a 

restrictive trade practice or boycott 

imposed by a foreign country against a 

country friendly to the United States, 

submitted to the U.S. Department of 

Commerce in accordance with the 

provisions of Part 760 of the EAR; 

Customs Form 7512, Transportation 

Entry and Manifest of Goods, Subject to 

Customs Inspection and Permit, when 

used for Transportation and Exportation 

(T. & E.) or Immediate Exportation (I.E.); 

and any other document issued by a 

U.S. Government agency as evidence of 

the existence of a license for the 

purpose of loading onto an exporting 

carrier or otherwise facilitating or 

effecting an export from the United 

States or any reexport of any item 

requiring a license. 

Exporter. The person in the United 

States who has the authority of a 

principal party in interest to determine 

and control the sending of items out of 

the United States. 

* * * * * 

NLR. NLR (‘‘no license required’’) is a 

symbol entered on the Electronic Export 

Information filing on the Automated 

Export System certifying that no license 

is required. 

* * * * * 

Dated: January 21, 2014. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2014–01604 Filed 1–28–14; 8:45 am] 

BILLING CODE 3510–33–P 

TENNESSEE VALLEY AUTHORITY 

18 CFR Part 1304 

Approval of Construction in the 

Tennessee River System; Revisions to 

Administrative Appeals Process; Job 

Title and Address Updates 

AGENCY: Tennessee Valley Authority. 

ACTION: Final rule. 

SUMMARY: The Tennessee Valley 

Authority (TVA) is making nonsubstantive changes to Title 18 of the 

Code of Federal Regulations. The 

purpose of this rule is to amend the 

process for issuing final determinations 

on administrative appeals of permitting 

decisions under section 26a of the TVA 

Act. Formerly, final determinations 

were made by the TVA Board of 

Directors. In 2004, the TVA Act was 

amended to change TVA’s governance 

structure from a three-member, full time 

board to a nine-member, part-time 

policy board with a chief executive 

officer (CEO). Accordingly, the TVA 

Board approved revisions to the section 

26a appeals process to provide for an 

appeal to the CEO followed by a 

discretionary review by a committee of 

the Board. The revised appeals process 

is consistent with the new governance 

structure. This rule amends TVA’s 

published regulations to incorporate the 

revisions approved by the Board and to 

make the regulations consistent with the 

change in TVA’s governance structure. 

TVA is also making minor changes to 

update addresses and job and 

organizational titles. 

DATES: This final rule is effective 

January 29, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Rebecca C. Tolene, Vice President 

Natural Resources, Tennessee Valley 

Authority, Knoxville, Tennessee, (865– 

632–4433). 

SUPPLEMENTARY INFORMATION: 

I. Legal Authority 

This rule is promulgated under the 

authority of the Tennessee Valley 

Authority Act of 1933, as amended, 16 

U.S.C. 831–831ee. 

II. Background 

Section 26a of the TVA Act requires 

that TVA’s approval be obtained prior to 

the construction, operation, or 

maintenance of any dam, appurtenant 

works, or other obstruction affecting 

navigation, flood control, or public 

lands or reservations across, along, or in 

the Tennessee River or any of its 

tributaries. TVA’s rules governing such 

approval are codified at 18 CFR Part 

1304. The rules include an appeals 

process whereby an applicant who is 

not satisfied with an initial permitting 

decision may obtain administrative 

review of that decision. 

Previously, when TVA was governed 

by a three-member, full-time board, 

dissatisfied applicants who exhausted 

their intermediate appeal rights could 

appeal TVA’s permitting decisions to 

the full TVA Board for final 

determination. That stage of the appeals 

process became obsolete, however, 

when Congress amended the TVA Act to 

change TVA’s governance structure to a 

nine-member, part-time policy board 

with a chief executive officer. 118 Stat. 

2963–2967, 16 U.S.C. 831a. 

Hence, this rule amends the appeals 

process to make it consistent with 

TVA’s governance structure. Instead of 

a final appeal to the full TVA Board, 

dissatisfied applicants who have 

exhausted their intermediate appeal 

rights may appeal to TVA’s CEO, with 

an opportunity for further discretionary 


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