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[Federal Register: May 14, 2010 (Volume 75, Number 93)]
[Rules and Regulations]
[Page 27185-27188]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14my10-4]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 100205081-0149-01]
RIN 0694-AE86

Revisions to the Authorization for Validated End-User Applied
Materials China, Ltd.

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
amends the Export Administration Regulations (EAR) to update the name
of an existing validated end-user in the People's Republic of China
(PRC) and revise the associated list of eligible items and facilities
for that validated end-user. BIS previously approved Applied Materials
China, Ltd. (Applied) as a validated end-user, authorizing exports,
reexports and transfers (in-country) of certain items to four Applied
facilities in the PRC under Authorization Validated End-User (VEU). In
addition to updating Applied's name, this rule revises the names and
addresses of Applied's four previously approved facilities. This rule
also authorizes three additional Applied facilities, which are added to
the list of Applied's eligible destinations. Finally, this rule revises
the list of Export Control Classification Numbers (ECCNs) for items
that may be exported, reexported or transferred (in-country) to the
eligible Applied facilities.

DATES: This rule is effective May 14, 2010. Although there is no formal
comment period, public comments on this regulation are welcome on a
continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AE86, by any
of the following methods:
     E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-
AE86'' in the subject line of the message.
     Fax: (202) 482-3355. Please alert the Regulatory Policy
Division, by

[[Page 27186]]

calling (202) 482-2440, if you are faxing comments.
     Mail or Hand Delivery/Courier: Sheila Quarterman, U.S.
Department of Commerce, Bureau of Industry and Security, Regulatory
Policy Division, 14th Street & Pennsylvania Avenue, NW., Room 2705,
Washington, DC 20230, Attn: RIN 0694-AE86.
    Send comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden to
Jasmeet Seehra, Office of Management and Budget (OMB), by e-mail to
Jasmeet_K._Seehra@omb.eop.gov or by fax to (202) 395-7285. Comments
on this collection of information should be submitted separately from
comments on the final rule (i.e., RIN 0694-AE86)--all comments on the
latter should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Susan Kramer, Acting Chair, End-User
Review Committee, Bureau of Industry and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania Avenue, NW., Washington, DC 20230;
by telephone (202) 482-0117, or by e[dash]mail to skramer@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User (VEU): The List of Approved End-Users,
Eligible Items and Destinations in the People's Republic of China

    Consistent with U.S. Government policy to facilitate trade for
civilian end-users in the PRC, BIS amended the EAR in a final rule on
June 19, 2007 (72 FR 33646) by creating a new authorization for
``validated end-users'' located in eligible destinations to which
eligible items may be exported, reexported or transferred under a
general authorization instead of a license, in conformance with Section
748.15 of the EAR. Eligible items may include commodities, software and
technology, except those controlled for missile technology or crime
control reasons.
    Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in eligible destinations that have a
verifiable record of civilian uses for such items. The validated end-
users listed in Supplement No. 7 to Part 748 of the EAR were reviewed
and approved by the U.S. Government in accordance with the provisions
of Section 748.15 and Supplement Nos. 8 and 9 to Part 748 of the EAR.
Currently, validated end-users are located in the People's Republic of
China (PRC) and India. Validated end-users may obtain eligible items
that are on the Commerce Control List without having to wait for their
suppliers to obtain export licenses from BIS. A wide range of items are
eligible for shipment under Authorization VEU. In addition to U.S.
exporters, Authorization VEU may be used by foreign reexporters, and
does not have an expiration date.

Revision to the Name of Validated End-User Applied Materials China,
Ltd. and to the Related List of Respective ``Eligible Items (By ECCN)''
and ``Eligible Destination''

    This final rule amends Supplement No. 7 to Part 748 of the EAR to
update the name of Applied Materials China, Ltd. to Applied Materials
(China), Inc. (Applied). This rule also amends the related list of
Export Control Classification Numbers (ECCNs) for items that may be
exported, reexported or transferred (in-country) to eligible facilities
of Applied in the PRC. This rule also updates the names and addresses
of Applied's four previously approved facilities, and authorizes three
additional Applied facilities. The revised information associated with
Applied in Supplement No. 7 is as follows:

Validated End-User

Applied Materials (China), Inc.

ECCNs and Revised Respective Facility Names and Addresses

Items classified under ECCNs 2B006.b, 2B230, 2B350.g.3, 2B350.i,
3B001.b, 3B001.c, 3B001.d, 3B001.e, 3B001.f, 3C001, 3C002, 3D002
(limited to ``software'' specially designed for the ``use'' of stored
program controlled items classified under ECCN 3B001) may be exported,
reexported and transferred (in-country) to all Applied destinations
below other than Applied Materials (Xi'an) Ltd.
Applied Materials South East Asia Pte. Ltd.--Shanghai Depot, c/o
Shanghai Applied Materials Technical Service Center, No. 2667
Zuchongzhi Road, Shanghai, China 201203.
Applied Materials South East Asia Pte. Ltd.--Beijing Depot, c/o Beijing
Applied Materials Technical Service Center, No. 1 North Di Sheng
Street, BDA, Beijing, China 100176.
Applied Materials South East Asia Pte. Ltd.--Wuxi Depot, c/o Sinotrans
Jiangsu Fuchang Logistics Co., Ltd., 1 Xi Qin Road, Wuxi Export
Processing Zone, Wuxi, Jiangsu, China 214028.
Applied Materials South East Asia Pte. Ltd.--Wuhan Depot, c/o Wuhan
Optics Valley Import & Export Co., Ltd., No. 101 Guanggu Road, East
Lake High-Tec Development Zone, Wuhan, Hubei, China 430074.
Applied Materials (China), Inc.--Shanghai Depot, No. 2667 Zuchongzhi
Road, Shanghai, China 201203.
Applied Materials (China), Inc.--Beijing Depot, No. 1 North Di Sheng
Street, BDA, Beijing, China 100176.
Items classified under ECCNs 2B006.b, 2B230, 2B350.g.3, 2B350.i,
3B001.b, 3B001.c, 3B001.d, 3B001.e, 3B001.f, 3C001, 3C002, 3D002
(limited to ``software'' specially designed for the ``use'' of stored
program controlled items classified under ECCN 3B001), and 3E001
(limited to ``technology'' according to the General Technology Note for
the ``development'' or ``production'' of items controlled by ECCN
3B001) may be exported, reexported and transferred (in-country) to
Applied destination Applied Materials (Xi'an) Ltd. only as listed
below.
Applied Materials (Xi'an) Ltd., No. 28 Xin Xi Ave., Xi'an High Tech
Park, Export Processing Zone, Xi'an, Shaanxi, China 710075.
    Prior to this rule, facilities in the PRC cities of Shanghai,
Beijing, Wuxi and Xi'an had been approved as eligible destinations for
Applied. This rule modifies the addresses and names of the facilities
in Shanghai, Beijing and Wuxi, and slightly modifies the name of the
facility in Xi'an. Further, this rule authorizes three additional
Applied facilities located in Beijing, Shanghai, and Wuhan to the list
of eligible destinations associated with Applied under Authorization
VEU. In addition, this rule expands the eligible items authorized for
export, reexport, or transfer (in-country) to Applied's facilities to
include items classified under ECCNs 2B006.b and 3B001.b, .c, and .f.
The rule also adds items classified under ECCNs 2B350.i., 3B001.d, and
certain items classified under ECCN 3D002. In addition, certain items
classified under ECCN 3E001 are added to the list of eligible items for
Applied's Xi'an facility only. These changes were made based on an
application submitted to BIS, which was reviewed by the interagency
End-User Review Committee.
    Making the above-described changes for this validated end-user is
expected to further facilitate exports to civil end-users in the PRC,
and is expected to result in a significant savings of time and
resources for suppliers and the eligible facilities. Authorization VEU
will eliminate the burden on exporters and reexporters of preparing
individual license applications, as exports, reexports and transfers
(in-country) of eligible items to these facilities may now be made
under general

[[Page 27187]]

authorization instead of under individual licenses. Exporters and
reexporters may now supply validated end-users much more quickly, thus
enhancing the competitiveness of the exporters, reexporters, and end-
users in the PRC.
    To ensure appropriate facilitation of exports and reexports, on-
site reviews of the validated end-users may be warranted pursuant to
paragraph 748.15(f)(2) and Section 7(iv) of Supplement No. 8 to Part
748 of the EAR. If such reviews are warranted, BIS will inform the PRC
Ministry of Commerce.
    Since August 21, 2001, the Export Administration Act has been in
lapse and the President, through Executive Order 13222 of August 17,
2001 (3 CFR, 2001 Comp., p. 783 (2002)), as extended most recently by
the Notice of August 13, 2009 (74 FR 41325 (August 14, 2009)), has
continued the EAR in effect under the International Emergency Economic
Powers Act. BIS continues to carry out the provisions of the Act, as
appropriate and to the extent permitted by law, pursuant to Executive
Order 13222.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for
the purposes of Executive Order 12866.
    2. Notwithstanding any other provisions of law, no person is
required to respond to nor be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This rule involves
collections previously approved by the OMB under control number 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour
estimate of 58 minutes to prepare and submit form BIS-748; and for
recordkeeping, reporting and review requirements in connection with
Authorization Validated End-User, which carries an estimated burden of
30 minutes per submission. This rule is expected to result in a
decrease in license applications submitted to BIS. Total burden hours
associated with the Paperwork Reduction Act and Office of Management
and Budget control number 0694-0088 are not expected to increase
significantly as a result of this rule.
    3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(a)(1), notice of proposed rulemaking,
the opportunity for public participation and a delay in effective date
are inapplicable because this regulation involves a military and
foreign affairs function of the United States. Further, no other law
requires that a notice of proposed rulemaking and an opportunity for
public comment be given for this final rule. Because a notice of
proposed rulemaking and an opportunity for public comment are not
required to be given for this rule under the Administrative Procedure
Act or by any other law, the analytical requirements of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore,
this regulation is issued in final form. Although there is no formal
comment period, public comments on this regulation are welcome on a
continuing basis. Comments should be submitted to Sheila Quarterman,
Regulatory Policy Division, Bureau of Industry and Security, U.S.
Department of Commerce, 14th Street & Pennsylvania Avenue, NW., Room
2705, Washington, DC 20230.

List of Subjects in 15 CFR Part 748

    Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.

0
Accordingly, part 748 of the Export Administrative Regulations (15 CFR
Parts 730-774) is amended as follows:

PART 748--[AMENDED]

0
1. The authority citation for 15 CFR Part 748 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 13, 2009, 74
FR 41325 (August 14, 2009).

0
2. Supplement No. 7 to Part 748 is amended by revising the entry for
Applied Materials China, Ltd., a validated end-user in ``China
(People's Republic of)'' to read as follows:

  Supplement No. 7 to Part 748--Authorization Validated End-User (VEU); List of Validated End-Users, Respective
                   Items Eligible for Export, Reexport and Transfer and Eligible Destinations
----------------------------------------------------------------------------------------------------------------
              Country                 Validated end-user    Eligible items (by ECCN)      Eligible destination
----------------------------------------------------------------------------------------------------------------

                                                  * * * * * * *
China (People's Republic of)......  Applied Materials      2B006.b, 2B230, 2B350.g.3,  Applied Materials South
                                     (China), Inc.          2B350.i, 3B001.b,           East Asia Pte. Ltd.--
                                                            3B001.c, 3B001.d,           Shanghai Depot c/o
                                                            3B001.e, 3B001.f, 3C001,    Shanghai Applied
                                                            3C002, 3D002 (limited to    Materials Technical
                                                            ``software'' specially      Service Center No. 2667
                                                            designed for the ``use''    Zuchongzhi Road,
                                                            of stored program           Shanghai, China 201203.
                                                            controlled items
                                                            classified under ECCN
                                                            3B001).
                                                                                       Applied Materials South
                                                                                        East Asia Pte. Ltd.--
                                                                                        Beijing Depot c/o
                                                                                        Beijing Applied
                                                                                        Materials Technical
                                                                                        Service Center No. 1
                                                                                        North Di Sheng Street,
                                                                                        BDA Beijing, China
                                                                                        100176.
                                                                                       Applied Materials South
                                                                                        East Asia Pte. Ltd.--
                                                                                        Wuxi Depot c/o Sinotrans
                                                                                        Jiangsu Fuchang
                                                                                        Logistics Co., Ltd. 1 Xi
                                                                                        Qin Road, Wuxi Export
                                                                                        Processing Zone Wuxi,
                                                                                        Jiangsu, China 214028.
                                                                                       Applied Materials South
                                                                                        East Asia Pte. Ltd.--
                                                                                        Wuhan Depot c/o Wuhan
                                                                                        Optics Valley Import &
                                                                                        Export Co., Ltd. No. 101
                                                                                        Guanggu Road East Lake
                                                                                        High-Tec Development
                                                                                        Zone Wuhan, Hubei, China
                                                                                        430074.

[[Page 27188]]

                                                                                       Applied Materials
                                                                                        (China), Inc.--Shanghai
                                                                                        Depot No. 2667,
                                                                                        Zuchongzhi Road
                                                                                        Shanghai, China 201203.
                                                                                       Applied Materials
                                                                                        (China), Inc.--Beijing
                                                                                        Depot No. 1 North Di
                                                                                        Sheng Street, BDA
                                                                                        Beijing, China 100176.
                                                           2B006.b, 2B230, 2B350.g.3,  Applied Materials (Xi'an)
                                                            2B350.i, 3B001.b,           Ltd. No. 28 Xin Xi Ave.,
                                                            3B001.c, 3B001.d,           Xi'an High Tech Park
                                                            3B001.e, 3B001.f, 3C001,    Export Processing Zone
                                                            3C002, 3D002 (limited to    Xi'an, Shaanxi, China
                                                            ``software'' specially      710075.
                                                            designed for the ``use''
                                                            of stored program
                                                            controlled items
                                                            classified under ECCN
                                                            3B001), and 3E001
                                                            (limited to
                                                            ``technology'' according
                                                            to the General Technology
                                                            Note for the
                                                            ``development'' or
                                                            ``production'' of items
                                                            controlled by ECCN
                                                            3B001).

                                                  * * * * * * *
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    Dated: May 6, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-11574 Filed 5-13-10; 8:45 am]
BILLING CODE 3510-33-P
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