[Federal Register Volume 83, Number 150 (Friday, August 3, 2018)]
[Rules and Regulations]
[Pages 38021-38023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16612]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 740

[Docket No. 180228230-8230-01]
RIN 0694-AH52


Revision of Export and Reexport License Requirements for Republic 
of South Sudan Under the Export Administration Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) is 
amending the Export Administration Regulations (EAR) to conform to the 
Department of State's (State) amendment of February 14, 2018 to the 
International Traffic in Arms Regulations (ITAR) that placed 
restrictions on exports of defense articles (and defense services) to 
the Republic of South Sudan (South Sudan). The State action reflected a 
policy determination by the Secretary of State

[[Page 38022]]

that it was in the best interests of U.S. foreign policy to impose such 
restrictions.
    Consistent with the State action, in this amendment, BIS is 
updating the EAR to restrict the export and reexport of certain items 
on the Commerce Control List to South Sudan. Pursuant to established 
procedure, BIS adds South Sudan to the list of U.S. embargoed countries 
under the EAR, a list drawn from the list of arms embargoes in the ITAR 
and State Federal Register notices, and adopts a restrictive license 
application review policy consistent with State's review policy set 
forth in the ITAR.

DATES: This rule is effective August 3, 2018.

FOR FURTHER INFORMATION CONTACT: Steven Schrader, Foreign Policy 
Division, Bureau of Industry and Security, Phone: 202-482-4252, Email: 
<a href="/cdn-cgi/l/email-protection#b7f1d8c5d2ded0d999e7d8dbded4cef7d5dec499d3d8d499d0d8c1"><span class="__cf_email__" data-cfemail="73351c01161a141d5d231c1f1a100a33111a005d171c105d141c05">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

Background

    In a rule effective July 9, 2011, the date the United States 
granted formal recognition to South Sudan, BIS amended the EAR to add 
the new country to the Commerce Country Chart set forth in Supplement 
No. 1 to part 740 and imposed controls on exports and reexports of 
items subject to the EAR to the destination. See 76 FR 41046 (July 13, 
2011). In that rule, BIS added South Sudan to Country Group B in 
Supplement No. 1 to Part 740 (Country Groups), a grouping that rendered 
the country eligible for certain License Exceptions not available to 
countries in Country Groups D or E.
    In this rule, BIS amends Supplement No.1 to Part 740 (Country 
Groups) of the EAR to place South Sudan in Country Group D:5--U.S. 
Embargoed Countries--to conform with a final rule published by State 
that revised ITAR Sec.  126.1 (Prohibited exports, imports, and sales 
to or from certain countries) by adding South Sudan in new paragraph 
(w). See 83 FR 6457 (February 14, 2018). The ITAR amendment reflected a 
determination by the Secretary of State that it was in the best 
interests of U.S. foreign policy to impose such restrictions in order 
to reflect the U.S. government's opposition to the trade of arms to 
South Sudan and its contribution to the conflict and humanitarian 
crisis in that country, promote the cessation of hostilities, and to 
reinforce a unified international response by aligning the United 
States with existing European Union restrictions on certain exports to 
South Sudan. As a consequence of the ITAR amendment, a policy of denial 
applies to applications for licenses or other approvals for the export 
of defense articles and defense services destined for South Sudan. A 
license or other approval may be issued on a case-by-case basis for six 
enumerated categories of defense articles and defense services, as set 
forth in ITAR Sec.  126.1(w) (South Sudan).
    BIS primarily implements such controls through Country Group D:5. 
Countries listed in Country Group D:5 are subject to additional 
restrictions in the EAR, including on de minimis U.S. content, license 
exception availability, and licensing policy for certain items. License 
applications for the export or reexport of items classified under 9x515 
or ``600 series'' Export Control Classification Numbers to countries in 
Country Group D:5 are reviewed consistent with the policies in Sec.  
126.1 of the ITAR, as provided in paragraph (b)(1)(ii) of Sec.  742.4 
(National security) and paragraph (b)(1) of Sec.  742.6 (Regional 
stability) of the EAR.
    The list of ``United States arms embargoed'' countries is intended 
to mirror ITAR Sec.  126.1's list of countries subject to U.S. arms 
embargoes and track Federal Register notices published by State. BIS 
amends the list of Country Group D:5 countries as needed to conform to 
amendments to ITAR Sec.  126.1 that State publishes, including 
additions or deletions of countries subject to United States arms 
embargoes. See footnote one to Country Group D:5. In implementing 
United States embargoes in the EAR, BIS is adopting the policies for 
each country listed in section 126.1 of the ITAR. See 78 FR 22660, 
22675 (April 16, 2013).
    Consistent with new Sec.  126.1(w) (South Sudan) of the ITAR, the 
BIS licensing policy for the export and reexport of 9x515 and ``600 
series'' items on the Commerce Control List, Supp. No. 1 to part 774, 
destined for South Sudan is a policy of denial that recognizes six 
categories of case-by-case approval. See ITAR Sec.  126.1(w)(1)-(6), 
which describes these categories in detail.

Specific Amendment Implementing Revisions To Export and Reexport 
License Requirements for South Sudan Under the EAR

Part 740 of the EAR
    BIS amends Supplement No. 1 to Part 740 of the EAR to place ``South 
Sudan, The Republic of'', in alphabetical order, in Country Group D:5.

Export Administration Act of 1979

    Although the Export Administration Act of 1979 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 15, 2017, 82 FR 39005 (August 16, 2017), 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 of 1979, 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 to be not a significant 
regulatory action, for purposes of Executive Order 12866. This rule is 
not subject to the requirements of E.O. 13771 (82 FR 9339, February 3, 
2017) because it is not significant under Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person 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 OMB control number. This rule involves collections of information 
approved under OMB control number 0694-0088--Simplified Network 
Application Processing+ System (SNAP+) and the Multipurpose Export 
License Application, which carries an annual estimated burden of 31,833 
hours; and 0694-0137--License Exceptions and Exclusions, which carries 
an annual estimated burden of 29,998. BIS believes that this rule will 
have no significant impact on those burdens.
    Send comments regarding this burden estimate or any other aspect of 
this

[[Page 38023]]

collection of information, including suggestions for reducing the 
burden, to Jasmeet K. Seehra, Office of Management and Budget, by email 
at <a href="/cdn-cgi/l/email-protection#254f5640404d5744654a48470b404a550b424a53"><span class="__cf_email__" data-cfemail="53392036363b2132133c3e317d363c237d343c25">[email protected]</span></a> or by fax to (202) 395-7285.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking and the opportunity for 
public participation, 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)). This rule implements a 
necessary update of the status of South Sudan as a U.S. embargoed 
country, consistent with the prohibitions implemented in the ITAR by 
the Department of State. This rule also serves to prevent confusion by 
the public as to the current EAR export and reexport license 
requirements applicable to South Sudan. A delay in the effective date 
would frustrate the achievement of this goal. 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 under 5 U.S.C. 553, or by any other law, the 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable.

List of Subjects in 15 CFR Part 740

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

    Accordingly, part 740 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

PART 740--[AMENDED]

0
1. The authority citation for part 740 continues to read as follows:

    Authority: 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; Notice of 
August 15, 2017, 82 FR 39005 (August 16, 2017).

0
2. Amend Supplement No. 1 to Part 740 by adding, in alphabetical order, 
an entry for ``South Sudan, Republic of'' under ``Country Group D'' to 
read as follows:

SUPPLEMENT NO. 1 TO PART 740--COUNTRY GROUPS

* * * * *
[GRAPHIC] [TIFF OMITTED] TR03AU18.002

* * * * *

    Dated: July 26, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-16612 Filed 8-2-18; 8:45 am]
 BILLING CODE 3510-33-P


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