Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 13173 

Points, and subsequent amendments can 

be viewed online at https://

www.faa.gov//air_traffic/publications/. 

For further information, you can contact 

the Airspace Policy Group, Federal 

Aviation Administration, 800 

Independence Avenue SW, Washington, 

DC 20591; telephone: (202) 267–8783. 

The Order is also available for 

inspection at the National Archives and 

Records Administration (NARA). For 

information on the availability of FAA 

Order 7400.11E at NARA, email 

fedreg.legal@nara.gov or go to https://

www.archives.gov/federal-register/cfr/ 

ibr-locations.html. 

FOR FURTHER INFORMATION CONTACT: 

Matthew Van Der Wal, Federal Aviation 

Administration, Western Service Center, 

Operations Support Group, 2200 S 

216th Street, Des Moines, WA 98198; 

telephone (206) 231–3695. 

SUPPLEMENTARY INFORMATION: 

Authority for This Rulemaking 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. This rulemaking is 

promulgated under the authority 

described in Subtitle VII, Part A, 

Subpart I, Section 40103. Under that 

section, the FAA is charged with 

prescribing regulations to assign the use 

of airspace necessary to ensure the 

safety of aircraft and the efficient use of 

airspace. This regulation is within the 

scope of that authority as it establishes 

Class E airspace at Mark Hoard 

Memorial Airport, Leoti, KS, to ensure 

the safety and management of 

Instrument Flight Rules (IFR) operations 

at the airport. 

History 

The FAA published a notice of 

proposed rulemaking in the Federal 

Register (85 FR 81167, December 15, 

2020) for Docket No. FAA–2020–1072 to 

establish Class E airspace for Mark 

Hoard Memorial Airport, Leoti, KS. 

Interested parties were invited to 

participate in this rulemaking effort by 

submitting written comments on the 

proposal to the FAA. No comments 

were received. 

Class E5 airspace designations are 

published in paragraph 6005 of FAA 

Order 7400.11E, dated July 21, 2020, 

and effective September 15, 2020, which 

is incorporated by reference in 14 CFR 

71.1. The Class E airspace designation 

listed in this document will be 

published subsequently in the Order. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document amends FAA Order 

7400.11E, Airspace Designations and 

Reporting Points, dated July 21, 2020, 

and effective September 15, 2020. FAA 

Order 7400.11E is publicly available as 

listed in the ADDRESSES section of this 

document. FAA Order 7400.11E lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

The Rule 

This amendment to 14 CFR part 71 

establishes Class E airspace extending 

upward from 700 feet above the surface 

at the Mark Hoard Memorial Airport, 

Leoti, KS. The airspace is designed to 

contain IFR arrivals descending below 

1,500 feet above the surface, and IFR 

departures to 1,200 feet above the 

surface. The airspace contains the new 

instrument approach and departure 

procedures that were developed for the 

airport. 

FAA Order 7400.11, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. 

Regulatory Notices and Analyses 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current, is non-controversial, and 

unlikely to result in adverse or negative 

comments. It, therefore: (1) Is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule, when 

promulgated, would not have a 

significant economic impact on a 

substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with FAA 

Order 1050.1F, ‘‘Environmental 

Impacts: Policies and Procedures,’’ 

paragraph 5–6.5a. This airspace action 

is not expected to cause any potentially 

significant environmental impacts, and 

no extraordinary circumstances exist 

that warrant the preparation of an 

environmental assessment. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of 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 7400.11E, 

Airspace Designations and Reporting 

Points, dated July 21, 2020, and 

effective September 15, 2020, is 

amended as follows: 

Paragraph 6005 Class E Airspace Areas 

Extending Upward From 700 Feet or More 

Above the Surface of the Earth. 

* * * * * 

ACE KS E5 Leoti, KS [New] 

Mark Hoard Memorial Airport, KS 

(Lat. 38°27′27′′ N, long. 101°21′03′′ W) 

That airspace extending upward from 700 

feet above the surface within a 6.5-mile 

radius of Mark Hoard Memorial Airport. 

Issued in Seattle, Washington, on February 

24, 2021. 

B.G. Chew, 

Acting Group Manager, Operations Support 

Group, Western Service Center. 

[FR Doc. 2021–04211 Filed 3–5–21; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 740, 742 and 744 

[Docket No. 210302–0033] 

RIN 0694–AI43 

Burma: Implementation of Sanctions 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In response to the Burmese 

military coup that overthrew the 

democratically-elected government of 

Myanmar (Burma), in this final rule, the 


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13174 Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 

Bureau of Industry and Security (BIS) 

amends the Export Administration 

Regulations (EAR) to apply more 

restrictive treatment to exports and 

reexports to, and transfers within, 

Burma of items subject to the EAR. This 

action advances the U.S. Government’s 

efforts to reduce the availability of items 

to Burma’s military and security 

services. 

DATES: This rule is effective March 8, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Tracy Patts, Foreign Policy Division, 

Office of Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, U.S. Department of Commerce, 

by email at Foreign.Policy@bis.doc.gov, 

or by phone at 202–482–4252. 

SUPPLEMENTARY INFORMATION: 

Background 

Burma Under the Export Administration 

Regulations 

On February 10, 2021, President 

Biden signed Executive Order (E.O.) 

14014, ‘‘Blocking Property With Respect 

to the Situation in Burma.’’ See 86 FR 

9429 (Feb. 12, 2021). In E.O. 14104, the 

President declared a national emergency 

to address the threat posed to the United 

States by the situation in, and in 

relation to, Burma following a February 

1, 2021 military coup, citing the 

military’s overthrow of the country’s 

democratically-elected government and 

arrest and detention of government 

leaders, human rights defenders, and 

journalists. See id. The United States 

had removed sanctions on Burma over 

the past decade based on progress 

toward democracy, and the reversal of 

that progress necessitated an immediate 

review of our sanction laws and 

authorities, followed by appropriate 

action. See President Biden’s February 

1, 2021 statement, available at https:// 

www.whitehouse.gov/briefing-room/ 

statements-releases/2021/02/01/ 

statement-by-president-joseph-r-bidenjr-on-the-situation-in-burma/. 

In response to the February 1, 2021 

Burmese military coup, on February 18, 

2021, BIS took action under the Export 

Administration Regulations, 15 CFR 

parts 730–774 (EAR), and published a 

Federal Register notice announcing a 

more restrictive review policy for 

applications involving exports and 

reexports of items requiring a license 

under the EAR that are destined for 

Burma’s military and security services 

and suspended the availability of 

certain license exceptions for items 

destined for Burma. See 86 FR 10011 

(Feb. 18, 2021). Taken together, the 

measures set forth in the February 18, 

2021 Federal Register notice and this 

final rule are consistent with recent 

actions taken by the Department of the 

Treasury’s Office of Foreign Assets 

Control under E.O. 14104. Specifically, 

this rule: 1) moves Burma from Country 

Group B to the more restrictive Country 

Group D:1; 2) adds Burma to the 

countries subject to the national security 

licensing policy for certain military end 

uses and end users, and to the ‘military 

end use’ and ‘military end user’ 

restrictions; and 3) moves Burma from 

Computer Tier 1 to the more restrictive 

Computer Tier 3 in the (Computers) 

(APP) license exception. 

Burma Under the EAR Prior to the 

February 18, 2021 Notice 

As a general matter, during a four-year 

period following BIS’s placement of 

Burma in Country Group B in December 

2016, BIS did not maintain special 

controls on Burma. See 81 FR 94962 

(Dec. 27, 2016). Applications for items 

requiring a license for export or reexport 

to Burma were generally subject to caseby-case review consistent with the 

licensing policies set forth in Part 742 

and other applicable parts of the EAR. 

For purposes of License Exception 

Computers (APP) (Section 740.7 of the 

EAR) in August 2017, Burma was placed 

in Computer Tier 1, a relatively lessrestrictive placement. See 82 FR 38764, 

8/15/17. 

Prior to December 2016, BIS had 

imposed more significant restrictions on 

exports and reexports to Burma as part 

of a broad U.S. Government-wide 

embargo in effect for nearly two decades 

that had restricted trade with or 

involving Burma under a national 

emergency declared by President Bill 

Clinton pursuant to Executive Order 

13047 of May 20, 1997, in response to 

repression by the then-governing regime 

in Burma. This emergency was extended 

and expanded by Presidents George W. 

Bush and Barack Obama, who together 

issued five additional Burma-related 

Executive Orders. Between October 

2007 and December 2016, Burma was 

located in Country Group D:1, Supp. 

No. 1 to Part 740 of the EAR. It was 

located in Computer Tier 3, a relatively 

restrictive placement, for purposes of 

License Exception Computers (APP) 

until August 2017. See 82 FR 38764, 8/ 

15/17. BIS also maintained license 

requirements in part 744 (then § 744.22) 

(see 72 FR 60248, October 24, 2007, as 

modified by 74 FR 770, January 8, 

2009), for the export, reexport, or 

transfer (in country) of most items 

subject to the EAR, to persons listed in 

or designated pursuant to three of the 

Burma-related Executive Orders. 

Executive Order 13742 of October 7, 

2016, terminated the national 

emergency declared in Executive Order 

13047 and revoked that Executive Order 

and the other Burma-related Executive 

Orders. 

Notwithstanding the EAR changes 

made following the October 2016 

termination of the embargo, Burma 

continued to be located in Country 

Group D:3 (countries raising 

proliferation concerns related to 

chemical and biological weapons) and 

Country Group D:5 (U.S. armsembargoed countries), consistent with 

§ 126.1 of the International Traffic in 

Arms Regulations, 22 CFR parts 120– 

130. 

Burma Under the EAR: February 18, 

2021 Notice 

On February 1, 2021, the Burmese 

military overthrew the democraticallyelected government of Burma and 

detained President Win Myint and State 

Counsellor Aung San Suu Kyi and other 

parliamentarians affiliated with the 

National League for Democracy. 

In response to this coup, as noted 

above, BIS issued a Federal Register 

notice effective February 18, 2021, 

adopting a more restrictive license 

application review policy of a 

presumption of denial for items subject 

to the EAR that require a license for 

export and reexport and that are 

destined for Burma’s Ministry of 

Defense, Ministry of Home Affairs, 

armed forces, or security services. BIS 

also suspended the use of four license 

exceptions set forth in part 740 of the 

EAR that would otherwise have 

generally been available to Burma as a 

result of its Country Group B placement: 

Shipments of Limited Value (LVS) 

(§ 740.3); Shipments to Group B 

Countries (GBS) (§ 740.4); Technology 

and Software under Restriction (TSR) 

(§ 740.6); and Computers (APP) 

(§ 740.7). 

Changes Made by This Rule 

This rule strengthens export controls 

on Burma consistent with the policy 

concerns described in BIS’s February 

18, 2021 notice. The actions in this rule 

support the United States Government’s 

efforts to promote an immediate return 

to democracy in Burma, to underscore 

to Burma’s security forces there must 

not be violence against civilians, and to 

stand in solidarity with the people of 

Burma, who continue to voice their 

desire for democracy, peace, and rule of 

law. In particular, this rule enhances the 

U.S. Government’s efforts to ensure that 

items subject to the EAR are not 

available to Burma’s military and 

security services. These measures also 

address the foreign policy and national 


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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 13175 

security concerns that formed the basis 

for the issuance of E.O. 14104 of 

February 10, 2021. 

Country Group D:1 

The rule removes Burma from EAR 

Country Group B in supplement no. 1 to 

part 740 (Country Groups) and moves it 

into the more restrictive Country Group 

D:1. This action makes certain license 

exceptions or portions of license 

exceptions unavailable for Burma, or 

imposes conditions on the use of such 

license exceptions, including as follows: 

• Shipments of Limited Value (LVS) 

(§ 740.3). This license exception is no 

longer available for Burma due to 

Burma’s removal from Country Group B. 

• Shipments to Group B Countries 

(GBS) (§ 740.4). This license exception 

is no longer available for Burma due to 

Burma’s removal from Country Group B. 

• Technology and Software under 

Restriction (TSR) (§ 740.6). This license 

exception is no longer available for 

Burma due to Burma’s removal from 

Country Group B. 

• Temporary Imports, Exports, 

Reexports, and Transfers (in-country) 

(TMP) (§ 740.9). Paragraph (b) (Exports 

of items temporarily in the United 

States) of this license exception places 

restrictions on shipments of national 

security (NS) controlled items to D:1 

countries, and thus the provisions in 

paragraph (b) that would authorize 

exports of NS-controlled items to 

Country Group B (but not Country 

Group D:1) are no longer available for 

shipments destined to Burma. 

• Servicing and Replacement Parts 

and Equipment (RPL) (§ 740.10). This 

license exception authorizes certain 

items to be returned to Country Group 

B (see (a)(4) (Reexports), and (b)(3)(ii)(C) 

(return of defective or unacceptable 

equipment)). These two paragraphs are 

no longer available for the return of 

such items to Burma due to Burma’s 

removal from Country Group B. 

• Aircraft, Vessels, and Spacecraft 

(AVS) (§ 740.15). Paragraph (b) of this 

license exception authorizes exports 

and reexports of certain equipment and 

spare parts for permanent use upon a 

vessel or aircraft, except for vessels 

registered in a D:1 country or aircraft 

registered in, owned or controlled by, or 

under charter or lease to a country 

included in Country Group D:1, or a 

national of any of these countries. With 

the publication of this rule, Burma is a 

D:1 country, and restrictions in this 

paragraph are applied to exports for 

vessels registered in Burma, or aircraft 

registered in, owned or controlled by, or 

under charter or lease to Burma or a 

Burmese national. Paragraph (c) of this 

license exception authorizes certain 

exports to U.S. or Canadian vessels, 

planes and airline installations or agents 

except for exports to D:1 countries and 

for aircraft located in, or owned, 

operated or controlled by, or leased or 

chartered to a D:1 country. Burma is 

now subject to all D:1-related specified 

restrictions set forth in paragraph (c) of 

§ 740.15. 

• Additional Permissive Reexports 

(APR) (§ 740.16(j)). Paragraph (j) of this 

license exception authorizes certain 

reexports of nuclear non-proliferation 

controlled items except when also 

controlled for NS reasons when 

destined to a D:1 country. Burma is now 

a D:1 country and will thus no longer 

be eligible for reexports of NScontrolled items under this provision. 

• Encryption commodities, 

technology, and software (ENC) 

(§ 740.17). Paragraph (b)(2)(iv)(B) of this 

license exception places restrictions on 

certain encryption technology exports to 

users in D:1 countries. These 

restrictions shall apply to users in 

Burma now, due to Burma’s placement 

in Country Group D:1. 

The restrictions on the export, 

reexport, and transfer (in-country) of 

certain microprocessors to military end 

uses and end users in Country Group 

D:1, pursuant to § 744.17 (Restrictions 

on certain exports, reexports, and 

transfers (in-country) of microprocessors 

and associated ‘‘software’’ and 

‘‘technology’’ for ‘military end uses’ and 

to ‘military end users’), apply to 

transactions to Burma now that it is in 

Country Group D:1 as a result of this 

rule. Furthermore, the restrictions in 

§ 744.7 (Restrictions on certain exports 

to and for the use of certain foreign 

vessels or aircraft) on certain exports 

and reexports to vessels and aircraft 

located in ports in a D:1 country now 

apply to exports and reexports to 

Burma, and restrictions in that section 

that apply to aircraft located in, or 

owned, operated or controlled by, or 

leased or chartered to, Country Group 

D:1 or a national of such country, now 

apply to aircraft located in, or owned, 

operated or controlled by, or leased or 

chartered to Burma or a Burmese 

national. Finally, the addition of Burma 

to Country Group D:1 expands the 

applicability of § 736.2(b)(3), General 

Prohibition Three, by imposing 

licensing requirements for reexports of 

foreign-produced direct products of 

certain U.S.-origin technology and 

software to Burma. 

Burma remains in Country Groups D:3 

(countries raising proliferation concerns 

related to chemical and biological 

weapons) and D:5 (U.S. arms-embargoed 

countries). See supplement no. 1 to part 

740 of the EAR. 

Licensing Policy 

As noted below, this rule adds Burma 

to the countries subject to the military 

end use and end user controls, and 

associated licensing policies, in 

§ 744.21. This rule also adds Burma to 

the list of countries subject to the 

licensing policy in § 742.4(b)(7) (NScontrolled items) of the EAR. The 

license review policy for NS-controlled 

items in § 742.4(b)(7) applies to 

transactions with the other countries 

included in § 744.21, and now applies 

to Burma as well. 

Section 744.21 

This rule adds Burma to the countries 

subject to the ‘military end use’ and 

‘military end user’ (MEU) restrictions in 

§ 744.21 of the EAR. In addition to the 

license requirements for items specified 

on the Commerce Control List (CCL), 

§ 744.21 prohibits the export, reexport, 

or transfer (in-country) without a license 

of items subject to the EAR that are 

listed in supplement no. 2 to part 744— 

List of Items Subject to the Military End 

Use or End User License Requirement of 

§ 744.21—to the People’s Republic of 

China (China), the Russian Federation, 

or Venezuela, and with the publication 

of this rule, Burma, in certain 

circumstances. Such exports, reexports, 

or transfers (in-country) require a 

license if, at the time of the export, 

reexport, or transfer (in-country), the 

exporter, reexporter, or transferor (incountry) has ‘‘knowledge,’’ as defined in 

§ 772.1 of the EAR that the item is 

intended, entirely or in part, for a 

‘military end use,’ or ‘military end user,’ 

in Burma, China, the Russian 

Federation, or Venezuela. Applications 

submitted for the export or reexport to 

Burma, or transfer within Burma, of an 

item in supplement no. 2 to part 744 

under this section will be reviewed with 

a presumption of denial. 

This rule also adds a reference to 

Burma in supplement no. 7 to part 

744—‘Military End User’ List but does 

not add any entities located in Burma to 

the list of Military End Users (MEU List) 

at this time. The MEU List notifies the 

public that certain entities are subject to 

the military end-user prohibitions in 

§ 744.21 of the EAR. BIS may add 

entities located in Burma to the MEU 

List in the future. 

This rule also corrects a typo in the 

last sentence of the introductory text to 

supplement no. 7 to part 744. The 

correction removes the phrase 

‘supplement no. 2 to part 744’ from the 

last sentence of the introductory text 

and adds in its place the phrase 

‘supplement no. 7 to part 744’. 

Supplement no. 7 to part 744 is the 


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13176 Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 

correct supplement reference in the 

context of this sentence. With this 

correction, the last sentence correctly 

states that ‘‘. . . license application 

procedure and license review policy for 

entities specified in supplement no. 7 to 

part 744 is specified in § 744.21(d) and 

(e).’’ 

Computer Tier 3 

This rule moves Burma from 

Computer Tier 1 to Computer Tier 3 

under License Exception Computers 

(APP), § 740.7. This change limits the 

use of that license exception for exports 

and reexports to, or transfers (incountry) within, Burma. The placement 

of Burma in Country Group D:1 by this 

rule and movement of Burma into 

Computer Tier 3 supersedes the 

suspension of four License Exceptions 

announced as part of the February 18, 

2021 notice, as the prior suspension was 

linked to Burma’s placement at the time 

in Country Group B and in Computer 

Tier 1. 

Export Control Reform Act of 2018 

On August 13, 2018, President Donald 

J. Trump signed into law the John S. 

McCain National Defense Authorization 

Act for Fiscal Year 2019, which 

included the Export Control Reform Act 

of 2018 (ECRA) (50 U.S.C. 4801–4852) 

that provides the legal basis for BIS’s 

principal authorities and serves as the 

authority under which BIS issues this 

rule. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distribute impacts, and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This final rule has been 

designated to be a ‘‘significant 

regulatory action,’’ although not 

economically significant, under section 

3(f) of Executive Order 12866. 

2. This rule does not contain policies 

with Federalism implications as that 

term is defined under Executive Order 

13132. 

3. Pursuant to section 1762 of the 

Export Control Reform Act of 2018 (50 

U.S.C. 4821), this action is exempt from 

the Administrative Procedure Act (5 

U.S.C. 553) requirements for notice of 

proposed rulemaking, opportunity for 

public participation, and delay in 

effective date. 

4. Because a notice of proposed 

rulemaking and an opportunity for 

public comment are not required to be 

given for this rule by 5 U.S.C. 553, or 

by any other law, the analytical 

requirements of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., are 

not applicable. Accordingly, no 

regulatory flexibility analysis is required 

and none has been prepared. 

5. Notwithstanding any other 

provision of law, no person may be 

required to respond to or be subject to 

a penalty for failure to comply with a 

collection of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves a collection currently approved 

by OMB under control number 0694– 

0088, Simplified Network Application 

Processing System. The collection 

includes, among other things, license 

applications, and carries a burden 

estimate of 42.5 minutes for a manual or 

electronic submission for a total burden 

estimate of 31,878 hours. BIS expects 

the burden hours associated with this 

collection to not significantly increase 

with the publication of this rule. 

Savings Clause 

Shipments of items that may no 

longer be made under No License 

Required (NLR) or license exception as 

a result of this action and were on dock 

for loading, on lighter, laden aboard an 

exporting or transferring carrier, or en 

route aboard a carrier to a port of export 

or reexport on April 7, 2021, pursuant 

to actual orders for export to Burma, 

reexport to Burma, or transfer (in 

country) within Burma may proceed to 

their destination under the prior 

authorization. 

List of Subjects 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 742 

Exports, Terrorism 

15 CFR 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

Accordingly, parts 740, 742, and 744 

of the Export Administration 

Regulations (15 CFR parts 730–774) are 

amended as follows: 

PART 740—LICENSE EXCEPTIONS 

■ 1. The authority citation for part 740 

continues 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. 

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. 

§ 740.7 [Amended] 

■ 2. Amend § 740.7 by 

■ a. Removing ‘‘Burma,’’ from paragraph 

(c)(1); and 

■ b. Adding ‘‘Burma’’ alphabetically in 

paragraph (d)(1). 

Supplement No. 1 to Part 740—Country 

Groups 

■ 3. Supplement no. 1 to part 740 is 

amended by 

■ a. In the Country Group B table, 

removing ‘‘Burma’’; and 

■ b. In the Country Group D table 

revising the entry for ‘‘Burma’’ to read 

as follows: 

Supplement No. 1 to Part 740—Country 

Groups 

* * * * * 

Country Group D 

Country 

[D:1] 

National 

security 

[D:2] 

Nuclear 

[D:3] 

Chemical & 

biological 

[D:4] 

Missile 

technology 

[D:5] 

U.S. Arms 

embargoed 

countries 1

*******

Burma ................................................................................... X x x 


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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 13177 

Country 

[D:1] 

National 

security 

[D:2] 

Nuclear 

[D:3] 

Chemical & 

biological 

[D:4] 

Missile 

technology 

[D:5] 

U.S. Arms 

embargoed 

countries 1

*******

1 Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in 

the FEDERAL REGISTER. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department FEDERAL REGISTER notices related to arms embargoes (compiled at http://www.pmddtc.state.gov/embargoed_countries/index.html) and will be amended when 

the State Department publishes subsequent notices. If there are any discrepancies between the list of countries in this table and the countries 

identified by the State Department as subject to a U.S. arms embargo (in the FEDERAL REGISTER), the State Department’s list of countries subject 

to U.S. arms embargoes shall be controlling. 

* * * * * 

PART 742—CONTROL POLICY—CCL 

BASED CONTROLS 

■ 4. The authority citation for part 742 

continues 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; Sec. 1503, Pub. L. 

108–11, 117 Stat. 559; 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. 13222, 66 FR 

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

Presidential Determination 2003–23, 68 FR 

26459, 3 CFR, 2004 Comp., p. 320; Notice of 

November 12, 2019, 84 FR 61817 (November 

13, 2019). 

■ 5. Section 742.4 is amended by 

revising paragraph (b) (7) to read as 

follows: 

§ 742.4 National security. 

* * * * * 

(b) * * * 

(7)(i) For Burma, the People’s 

Republic of China (China), the Russian 

Federation, and Venezuela, all 

applications will be reviewed to 

determine the risk of diversion to a 

military end user or military end use. 

There is a general policy of approval for 

license applications to export, reexport, 

or transfer items determined to be for 

civil end users for civil end uses. There 

is a presumption of denial for license 

applications to export, reexport, or 

transfer items that would make a 

material contribution to the 

‘‘development,’’ ‘‘production,’’ 

maintenance, repair, or operation of 

weapons systems, subsystems, and 

assemblies, such as, but not limited to, 

those described in supplement no. 7 to 

part 742 of the EAR, of Burma, China, 

the Russian Federation, or Venezuela. 

(ii) The following factors are among 

those that will be considered in 

reviewing license applications 

described in paragraph (b)(7)(i) of this 

section: 

(A) The appropriateness of the export, 

reexport, or transfer for the stated end 

use; 

(B) The significance of the item for the 

weapon systems capabilities of the 

importing country; 

(C) Whether any party is a ‘military 

end user’ as defined in § 744.21(g) of the 

EAR; 

(D) The reliability of the parties to the 

transaction, including whether: 

(1) An export or reexport license 

application has previously been denied; 

(2) Any parties are or have been 

engaged in unlawful procurement or 

diversion activities; 

(3) The parties are capable of securely 

handling and storing the items; and 

(4) End-use checks have been and 

may be conducted by BIS or another 

U.S. government agency on parties to 

the transaction; 

(E) The involvement of any party to 

the transaction in military activities, 

including activities involving the 

‘‘development,’’ ‘‘production,’’ 

maintenance, repair, or operation of 

weapons systems, subsystems, and 

assemblies; 

(F) Government strategies and policies 

that support the diversion of exports 

from their stated civil end use and 

redirection towards military end use. 

(G) The scope and effectiveness of the 

export control system in the importing 

country; and 

(iii) The review will also include an 

assessment of the impact of a proposed 

export of an item on the United States 

defense industrial base and the denial of 

an application for a license that would 

have a significant negative impact, as 

defined in § 1756(d)(3) of the Export 

Control Reform Act of 2018 (50 U.S.C. 

4815(d)(3)), on such defense industrial 

base. 

* * * * * 

PART 744—CONTROL POLICY: ENDUSER AND END-USE BASED 

■ 6. The authority citation for part 744 

continues 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 18, 2020, 

85 FR 59641 (September 22, 2020); Notice of 

November 12, 2020, 85 FR 72897 (November 

13, 2020). 

■ 7. Section 744.21 is revised to read as 

follows: 

§ 744.21 Restrictions on certain ‘military 

end use’ or ‘military end user’ in Burma, 

The People’s Republic of China, The 

Russian Federation, or Venezuela. 

(a) General prohibition. In addition to 

the license requirements for items 

specified on the Commerce Control List 

(CCL), you may not export, reexport, or 

transfer (in-country) any item subject to 

the EAR listed in supplement no. 2 to 

part 744 to Burma, the People’s 

Republic of China (China), the Russian 

Federation, or Venezuela without a 

license if, at the time of the export, 

reexport, or transfer (in-country), you 

have ‘‘knowledge,’’ as defined in § 772.1 

of the EAR, that the item is intended, 

entirely or in part, for a ‘military end 

use,’ as defined in paragraph (f) of this 

section, or ‘military end user,’ as 

defined in paragraph (g) of this section, 

in Burma, China, the Russian 

Federation, or Venezuela. 

(b) Additional prohibition on those 

informed by BIS. BIS may inform you 

either individually by specific notice, 

through amendment to the EAR 

published in the Federal Register, or 

through a separate notice published in 

the Federal Register, that a license is 

required for specific exports, reexports, 

or transfers (in-country) of any item 

because there is an unacceptable risk of 

use in or diversion to a ‘military end 

use’ or ‘military end user’ in Burma, 

China, the Russian Federation, or 

Venezuela. Specific notice will be given 

only by, or at the direction of, the 

Deputy Assistant Secretary for Export 

Administration. When such notice is 

provided orally, it will be followed by 

written notice within two working days 

signed by the Deputy Assistant 

Secretary for Export Administration or 

the Deputy Assistant Secretary’s 


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13178 Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations 

designee. The absence of BIS 

notification does not excuse the 

exporter from compliance with the 

license requirements of paragraph (a) of 

this section. 

(1) ‘Military End-User’ (MEU) List. BIS 

may inform and provide notice to the 

public that certain entities are subject to 

the additional prohibition described 

under this paragraph (b) following a 

determination by the End-User Review 

Committee (ERC) that a specific entity is 

a ‘military end user’ pursuant to this 

section and therefore any exports, 

reexports, or transfers (in-country) to 

that entity represent an unacceptable 

risk of use in or diversion to a ‘military 

end use’ or ‘military end user’ in Burma, 

China, the Russian Federation, or 

Venezuela. Such entities may be added 

to supplement No. 7 to part 744— 

‘Military End-User’ (MEU) List through 

Federal Register notices published by 

BIS, and will thus be subject to a license 

requirement for exports, reexports, or 

transfers (in-country) of items specified 

in supplement No. 2 to part 744. The 

listing of entities under supplement No. 

7 to part 744 is not an exhaustive listing 

of ‘military end users’ for purposes of 

this section. Exporters, reexporters, and 

transferors are responsible for 

determining whether transactions with 

entities not listed on supplement No. 7 

to part 744 are subject to a license 

requirement under paragraph (a) of this 

section. The process in paragraph this 

(b)(1) for placing entities on the MEU 

List is only one method BIS may use to 

inform exporters, reexporters, and 

transferors of license requirements 

under this section. 

(i) End-User Review Committee (ERC). 

The End-User Review Committee (ERC), 

composed of representatives of the 

Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from, or other modifications to 

the MEU List. Decisions by the ERC for 

purposes of the MEU List will be made 

following the procedures identified in 

this section and in supplement no. 5 to 

part 744—Procedures for End-User 

Review Committee Entity List and 

‘Military End User’ (MEU) List 

Decisions. 

(ii) License requirement for parties to 

the transaction. The license requirement 

for entities listed in supplement no. 7 to 

part 744 applies to the export, reexport, 

or transfer (in-country) of any item 

subject to the EAR listed in supplement 

No. 2 to part 744 when an entity that is 

listed on the MEU List is a party to the 

transaction as described in § 748.5(c) 

through (f). 

(2) Requests for removal from or 

modification of ‘Military End User’ 

(MEU) List. Any entity listed on the 

MEU List may request that its listing be 

removed or modified. All such requests, 

including reasons therefor, must be in 

writing and sent to: Chair, End-User 

Review Committee, Bureau of Industry 

and Security, U.S. Department of 

Commerce, 14th Street and 

Pennsylvania Avenue NW, Room 3886, 

Washington, DC 20230. In order for an 

entity listed on the MEU List to petition 

BIS for their removal or modification, as 

applicable, the entity must address why 

the entity is not a ‘military end user’ for 

purposes of this section. 

(i) Review. The ERC will review such 

requests for removal or modification in 

accordance with the procedures set 

forth in supplement No. 5 to part 744. 

(ii) BIS action. The Deputy Assistant 

Secretary for Export Administration will 

convey the decision on the request to 

the requester in writing. That decision 

will be the final agency action on the 

request. 

(c) License exception. Despite the 

prohibitions described in paragraphs (a) 

and (b) of this section, you may export, 

reexport, or transfer (in-country) items 

subject to the EAR under the provisions 

of License Exception GOV set forth in 

§ 740.11(b)(2)(i) and (ii) of the EAR. 

(d) License application procedure. 

When submitting a license application 

pursuant to this section, you must state 

in the ‘‘additional information’’ block of 

the application that ‘‘this application is 

submitted because of the license 

requirement in this section. In addition, 

either in the additional information 

block of the application or in an 

attachment to the application, you must 

include all known information 

concerning the ‘military end use’ and 

‘military end user(s)’ of the item(s). If 

you submit an attachment with your 

license application, you must reference 

the attachment in the ‘‘additional 

information’’ block of the application. 

(e) License review standards. (1) 

Applications to export, reexport, or 

transfer (in-country) items described in 

paragraph (a) of this section will be 

reviewed with a presumption of denial. 

(2) Applications may be reviewed 

under chemical and biological weapons, 

nuclear nonproliferation, or missile 

technology review policies, as set forth 

in §§ 742.2(b)(4), 742.3(b)(4), and 

742.5(b)(4) of the EAR, if the end use 

may involve certain proliferation 

activities. 

(3) Applications for items requiring a 

license for any reason that are destined 

to Burma, China, the Russian 

Federation, or Venezuela for a ‘military 

end use’ or ‘military end user’ also will 

be subject to the review policy stated in 

paragraph (e)(1) of this section. 

(f) Military end use. In this section, 

‘military end use’ means: Incorporation 

into a military item described on the 

U.S. Munitions List (USML) (22 CFR 

part 121, International Traffic in Arms 

Regulations); incorporation into items 

classified under ECCNs ending in 

‘‘A018’’ or under ‘‘600 series’’ ECCNs; or 

any item that supports or contributes to 

the operation, installation, maintenance, 

repair, overhaul, refurbishing, 

‘‘development,’’ or ‘‘production,’’ of 

military items described on the USML, 

or items classified under ECCNs ending 

in ‘‘A018’’ or under ‘‘600 series’’ ECCNs. 

(g) Military end user. In this section, 

the term ‘military end user’ means the 

national armed services (army, navy, 

marine, air force, or coast guard), as well 

as the national guard and national 

police, government intelligence or 

reconnaissance organizations, or any 

person or entity whose actions or 

functions are intended to support 

‘military end uses’ as defined in 

paragraph (f) of this section. 

(h) Effects on contracts. Venezuela: 

Transactions involving the export, 

reexport, or transfer (in country) of 

items to or within Venezuela are not 

subject to the provisions of § 744.21 if 

the contracts for such transactions were 

signed prior to November 7, 2014. 

Supplement No. 7 to Part 744 

[Amended] 

■ 8. The Supplement No.7 to Part 744 

table is amended by: 

■ a. Removing from the last sentence of 

the introductory text the phrase 

‘supplement no. 2 to part 744’ and 

adding in its place the phrase ‘‘this 

supplement 7 to part 744’’; and 

■ b. In the table adding in alphabetical 

order an entry for ‘‘BURMA’’. 

The addition reads as follows: 

* * * * * 

Country Entity 

Federal 

Register 

citation 

Burma ....... [Reserved] [Reserved] 

* * * * * 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–04745 Filed 3–4–21; 4:15 pm] 

BILLING CODE 3510–33–P 


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