66288 Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations 

expected to inform taxing authorities of 

Federal requirements for use of aviation 

fuel tax revenues and to take reasonable 

action within their power to influence 

State and local tax laws to conform to 

those requirements. 

3. The Federal limits on use of 

aviation fuel tax proceeds apply at an 

airport that is the subject of Federal 

assistance (as defined in Section II.b.2 of 

this Policy), whether or not the airport 

is currently subject to the terms of an 

AIP grant agreement, and regardless of 

the State or local jurisdiction imposing 

the tax. 

4. The limits on use of aviation fuel 

tax revenues established by section 

47107(b) and section 47133: 

a. Apply to any tax imposed on 

aviation fuel by either a State 

government or a local government 

taxing authority whether or not acting as 

a sponsor or airport owner or operator; 

b. Apply to any tax on aviation fuel, 

whether the tax is imposed only on 

aviation fuel or is imposed on other 

products as well as aviation fuel. 

However, the limits on use of revenues 

apply only to the amounts of tax 

collected specifically for the sale, use, 

purchase or storage of aviation fuel, and 

not to the amounts collected for 

transactions involving products other 

than aviation fuel under the same 

general tax law; 

c. apply to taxes on all aviation fuel 

dispensed at an airport, regardless of 

where the taxes on the sale of fuel at the 

airport are collected; and 

d. apply to a new assessment or 

imposition of a tax on aviation fuel, 

even if the tax could have been imposed 

earlier under a statute enacted before 

December 30, 1987. 

3. In Section IX, Monitoring and 

Compliance, add a new paragraph h. to 

E.1 to read as follows: 

h. For a non-sponsor State or local 

government that fails to comply with 

requirements for use of proceeds from a 

tax on aviation fuel, the Secretary may 

assess a civil penalty as described in 

E.1.g, or apply to a U.S. district court for 

a compliance order. In addition, for a 

State government that participates in the 

State Block Grant Program under 49 

U.S.C. 47128, the FAA may have 

additional sanctions for violation of the 

State’s commitments in its application 

for participation in the program. 

Issued in Washington, DC, on November 3, 

2014. 

Randall S. Fiertz, 

Director, Office of Airport Compliance and 

Management Analysis. 

[FR Doc. 2014–26408 Filed 11–6–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 141029906–4906–01] 

RIN 0694–AG31 

Venezuela: Implementation of Certain 

Military End Uses and End Users 

License Requirements Under the 

Export Administration Regulations 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In response to the Venezuelan 

military’s violent repression of the 

Venezuelan people, the Bureau of 

Industry and Security (BIS) amends the 

Export Administration Regulations 

(EAR) in this final rule to impose 

license requirements on the export, 

reexport, or transfer (in-country) of 

certain items to or within Venezuela 

when intended for a military end use or 

end user. This change complements an 

existing U.S. arms embargo against 

Venezuela for its failure to cooperate in 

areas of counterterrorism. 

DATES: Effective date: This rule is 

effective November 7, 2014 

FOR FURTHER INFORMATION CONTACT: 

Foreign Policy Division, Office of 

Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, Phone: (202) 482–4252. 

SUPPLEMENTARY INFORMATION: 

Background 

Starting in February 2014, the 

Venezuelan military was instrumental 

in implementing a violent crackdown 

on anti-government protests. The 

government’s repression included direct 

violence against protesters, detentions 

of protesters and political leaders, and 

acts of intimidation, resulting in 

numerous deaths and injuries. On July 

30, 2014, the Department of State 

imposed visa restrictions against 

Venezuelan government officials, 

including members of the Venezuelan 

military, who participated or were 

complicit in human rights violations 

and undermined democratic processes. 

The actions and policies of the 

Venezuelan military undermine 

democratic processes and institutions 

and thereby constitute an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States. 

In response to abuses committed by 

the Venezuelan military on the 

Venezuelan people, the U.S. 

Government is imposing ‘‘military end 

use’’ and ‘‘military end user’’ license 

requirements on Venezuela. 

Military End Use and End User 

Restrictions 

It is generally the policy of the United 

States Government to facilitate U.S. 

exports for civilian end uses, while 

preventing exports that would enhance 

the military capability of certain 

destinations and thereby threaten the 

national security and foreign policy of 

the United States and its allies. In 

furtherance of this policy, the Bureau of 

Industry and Security (BIS) established 

a license requirement for certain items 

intended for ‘‘military end uses’’ in a 

final rule published June 19, 2007 (72 

FR 33646). Specifically, that final rule 

established a control, based on 

knowledge of a ‘‘military end use,’’ on 

exports and reexports of certain items 

on the Commerce Control List (CCL) 

that otherwise would not require a 

license to a specified destination. The 

‘‘military end use’’ control initially 

applied to certain items exported, 

reexported or transferred (in country) to 

the People’s Republic of China. 

Subsequently, BIS applied ‘‘military end 

use’’ and ‘‘military end user’’ controls to 

Russia in a final rule published 

September 17, 2014 (79 FR 55608). 

Imposition of Military Restrictions on 

Venezuela 

To implement the U.S. Government’s 

response to the abuses by the 

Venezuelan military, in this rule, BIS 

amends § 744.21 of the EAR to apply 

‘‘military end use’’ and ‘‘military end 

user’’ license requirements to 

Venezuela. Specifically, BIS amends 

§ 744.21 by adding ‘‘or Venezuela’’ after 

‘‘Russia,’’ wherever that name appears, 

including in the heading of the section. 

Items subject to these license 

requirements are those listed in 

Supplement No. 2 to Part 744. 

This final rule also adds a paragraph 

(h) to address the effects of these new 

license requirements on transactions 

under contract prior to the effective date 

of this rule. 

Saving Clause 

Shipments of items removed from 

eligibility for export or reexport under a 

license exception or without a license 

(i.e., under the designator ‘‘NLR’’) as a 

result of this regulatory action that were 

on dock for loading, on lighter, laden 

aboard an exporting carrier, or en route 

aboard a carrier to a port of export, on 

November 7, 2014, pursuant to actual 

orders for export or reexport to a foreign 

destination, may proceed to that 

destination under the previously 

applicable license exception or without 


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Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations 66289 

a license (NLR) so long as they are 

exported or reexported before December 

8, 2014. Any such items not actually 

exported or reexported before midnight, 

on December 8, 2014, require a license 

in accordance with this regulation. 

Foreign Policy Report 

The extension of the military end use 

and end user controls to Venezuela in 

this rule is the imposition of a foreign 

policy control. Section 6(f) of the Export 

Administration Act requires that a 

report be delivered to Congress before 

imposing such controls. The report was 

delivered to Congress on November 6, 

2014. 

Export Administration Act 

Although the Export Administration 

Act expired on August 20, 2001, 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 7, 

2014, 79 FR 46959 (August11, 2014), 

has continued the Export 

Administration Regulations in effect 

under the International Emergency 

Economic Powers Act. 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 determined to be not 

significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision 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 regulation 

involves collections previously 

approved by OMB under control 

number 0694–0088, Simplified Network 

Application Processing System, which 

includes, among other things, license 

applications and carries a burden 

estimate of 43.8 minutes for a manual or 

electronic submission. Total burden 

hours associated with the PRA and 

OMB control number 0694–0088 are not 

expected to significantly increase as a 

result of this rule. You may send 

comments regarding the collection of 

information associated with this rule, 

including suggestions for reducing the 

burden, to Jasmeet K. Seehra, Office of 

Management and Budget (OMB), by 

email to Jasmeet_K._Seehra@

omb.eop.gov, or by fax to (202) 395– 

7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

comment and a delay in effective date 

are inapplicable because this regulation 

involves a military or foreign affairs 

function of the United States. (See 5 

U.S.C. 553(a)(1)). BIS also implements 

this rule to protect U.S. national 

security or foreign policy objectives 

from being undermined by immediately 

restricting the export, reexport or 

transfer (in-country) of certain items to 

Venezuela for a military end use or enduser. Further, no other law requires that 

a notice of proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., are not applicable. Accordingly, 

no regulatory flexibility analysis is 

required and none has been prepared. 

List of Subjects in 15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

Accordingly, part 744 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 744—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 744 is amended 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 August 7, 2014, 79 FR 46959 

(August 11, 2014); Notice of September 17, 

2014, 79 FR 56475 (September 19, 2014); 

Notice of November 7, 2013, 78 FR 67289 

(November 12, 2013); Notice of January 21, 

2014, 79 FR 3721 (January 22, 2014). 

■ 2. Section 744.21 is revised to read as 

follows: 

§ 744.21 Restrictions on Certain ‘Military 

end uses’ in the People’s Republic of China 

(PRC) or for a ‘Military end use’ or ‘Military 

end user’ in Russia or Venezuela. 

(a)(1) 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 the PRC, Russia or 

Venezuela without a license if, at the 

time of the export, reexport, or transfer 

(in-country), either: 

(i) 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, in the PRC 

or for a ‘military end use’ or ‘military 

end user’ in Russia or Venezuela; or 

(ii) You have been informed by BIS, 

as described in paragraph (b) of this 

section, that the item is or may be 

intended, entirely or in part, for a 

‘military end use’ in the PRC or for a 

‘military end use’ or ‘military end-user’ 

in Russia or Venezuela. 

(2) General prohibition. In addition to 

the license requirements for 9x515 and 

‘‘600 series’’ items specified on the 

Commerce Control List (CCL), you may 

not export, reexport, or transfer (incountry) any 9x515 or ‘‘600 series’’ item, 

including items described in a .y 

paragraph of a 9x515 or ‘‘600 series’’ 

ECCN, to the PRC, Russia or Venezuela 

without a license. 

(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 ‘military end use’ 

activities in the PRC or for a ‘military 

end use’ or ‘military end user’ in Russia 

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 


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66290 Federal Register / Vol. 79, No. 216 / Friday, November 7, 2014 / Rules and Regulations 

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 

designee. The absence of BIS 

notification does not excuse the 

exporter from compliance with the 

license requirements of paragraph (a) of 

this section. 

(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 § 744.21 of the EAR 

(Restrictions on Certain Military End 

Uses in the People’s Republic of China 

or for a ‘Military End Use’ or ‘Military 

End User’ in Russia or Venezuela).’’ In 

addition, either in the additional 

information block of the application or 

in an attachment to the application, you 

must include for the PRC all known 

information concerning the military end 

use of the item(s) and for Russia or 

Venezuela, all known information 

concerning the ‘military end use’ and 

‘military end users’ 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 items described in paragraph (a) 

of this section will be reviewed on a 

case-by-case basis to determine whether 

the export, reexport, or transfer would 

make a material contribution to the 

military capabilities of the PRC, Russia, 

or Venezuela, and would result in 

advancing the country’s military 

activities contrary to the national 

security interests of the United States. 

When it is determined that an export, 

reexport, or transfer would make such a 

contribution, the license will be denied. 

(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 other reasons that are 

destined to the PRC for a ‘military end 

use’ or that are destined to Russia 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 a 

military item described on the 

Wassenaar Arrangement Munitions List 

(as set out on the Wassenaar 

Arrangement Web site at http://

www.wassenaar.org); incorporation into 

items classified under ECCNs ending in 

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

for the ‘‘use,’’ ‘‘development,’’ or 

‘‘production’’ of military items 

described on the USML or the 

Wassenaar Arrangement Munitions List, 

or items classified under ECCNs ending 

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

Note to paragraph (f) of this section: (1) As 

defined in Part 772 of the EAR, ‘‘use’’ means 

operation, installation (including on-site 

installation), maintenance (checking), repair, 

overhaul and refurbishing; ‘‘development’’ is 

related to all stages prior to serial production, 

such as: design, design research, design 

analyses, design concepts, assembly and 

testing of prototypes, pilot production 

schemes, design data, process of transforming 

design data into a product, configuration 

design, integration design, layouts; and 

‘‘production’’ means all production stages, 

such as: product engineering, manufacturing, 

integration, assembly (mounting), inspection, 

testing, quality assurance. 

(2) For purposes of this section, 

‘‘operation’’ means to cause to function as 

intended; ‘‘installation’’ means to make ready 

for use, and includes connecting, integrating, 

incorporating, loading software, and testing; 

‘‘maintenance’’ means performing work to 

bring an item to its original or designed 

capacity and efficiency for its intended 

purpose, and includes testing, measuring, 

adjusting, inspecting, replacing parts, 

restoring, calibrating, overhauling; and 

‘‘deployment’’ means placing in battle 

formation or appropriate strategic position. 

(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. 

Dated: November 3, 2014. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2014–26465 Filed 11–6–14; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 311 

[Docket ID: DoD–2014–OS–0145] 

Privacy Act of 1974; Implementation 

AGENCY: Office of the Secretary, DoD. 

ACTION: Direct final rule with request for 

comments. 

SUMMARY: The Office of the Secretary of 

Defense (OSD) is exempting records 

maintained in DMDC 17 DoD, entitled 

‘‘Continuous Evaluation Records for 

Personnel Security,’’ from pertinent 

provisions of 5 U.S.C. 552a. In the 

course of carrying out records checks for 

continuous evaluation, exempt records 

received from other systems of records 

may become part of this system. To the 

extent that copies of exempt records 

from those ‘other’ systems of records are 

maintained in this system, OSD claims 

the same exemptions for the records 

from those ‘other’ systems that are 

maintained in this system, as claimed 

for the original primary system of which 

they are a part. 

DATES: The rule is effective on January 

16, 2015 unless adverse comments are 

received by January 6, 2015. If adverse 

comment is received, the Department of 

Defense will publish a timely 

withdrawal of the rule in the Federal 

Register. 

ADDRESSES: You may submit comments, 

identified by docket number and title, 

by any of the following methods: 

• Federal Rulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Federal Docket Management 

System Office, 4800 Mark Center Drive, 

Suite 02G09, Alexandria, VA 22350– 

3100. 

Instructions: All submissions received 

must include the agency name and 

docket number for this Federal Register 

document. The general policy for 

comments and other submissions from 

members of the public is to make these 

submissions available for public 

viewing on the Internet at http://

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 


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