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[Federal Register Volume 78, Number 141 (Tuesday, July 23, 2013)]
[Rules and Regulations]
[Pages 43972-43974]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-17665]

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DEPARTMENT OF COMMERCE

 Bureau of Industry and Security

15 CFR Parts 736 and 746

[Docket No. 130627574-3574-01]
RIN 0694-AF94

Amendments to the Export Administration Regulations: 
Implementation of Limited Syria Waiver for Reconstruction Assistance

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) amends the Export 
Administration Regulations (EAR) to implement a limited waiver, 
published by the Secretary of State on June 12, 2013, of the Syria 
Accountability and Lebanese Sovereignty Restoration Act of 2003 (the 
SAA). The waiver authorizes BIS to issue licenses on a case-by-case 
basis for the export or reexport of certain commodities, software, and 
technology necessary for the support of the Syrian people. 
Specifically, consistent with Section 5(b) of the SAA, Executive Order 
13338 of May 11, 2004 and the International Emergency Economic Powers 
Act (IEEPA), BIS implements the waiver by amending its Syria licensing 
policy under the EAR. BIS will review licenses on a case-by-case basis 
for the export or reexport of certain commodities, software, and 
technology, including, but not limited to, those related to water 
supply and sanitation, agricultural production and food processing, 
power generation, oil and gas production, construction and engineering, 
transportation, and educational infrastructure, as a means of helping 
to address the critical needs of the Syrian people and facilitating 
reconstruction. These exports are necessary to support a political 
transition, restore stability, and counter destabilizing influences in 
the region, and are therefore essential to the national security of the 
United States.

DATES: This rule is effective July 23, 2013.

FOR FURTHER INFORMATION CONTACT: Steven Schrader, Senior Export Policy 
Analyst, Foreign Policy Division, Office of Nonproliferation and Treaty 
Compliance, Bureau of Industry and Security, by phone (202) 482-1338 or 
by email Steven.Schrader@bis.doc.gov or the BIS Foreign Policy Division 
at (202) 482-4252.

SUPPLEMENTARY INFORMATION:

Background

    In the Syria Accountability and Lebanese Sovereignty Restoration 
Act of 2003 (Pub. L. 108-175, codified as a note to 22 U.S.C. 2151) 
(the SAA), the United States addressed the Syrian government's support 
for terrorist groups, its military presence in Lebanon, its pursuit of 
weapons of mass destruction, and its actions to undermine U.S. and 
international efforts with respect to the stabilization and 
reconstruction of Iraq (Section 5(a) and (d)). Section 5(a)(1) of the 
SAA requires the President to prohibit the export to Syria of all items 
on the Commerce Control List (15 CFR Part 774). The SAA also requires 
the President to impose two or more of the six additional sanctions set 
forth in Section 5(a)(2)(A)-(F).
    The President implemented those sanctions through Executive Order 
(EO) 13338 of May 11, 2004, which includes an additional sanction 
prohibiting the export to Syria of products of the United States other 
than food and medicine. However, the President exercised national 
security waiver authority pursuant to Section 5(b) of the SAA, which 
authorized certain transactions under BIS license and delegated his 
authority to issue additional waivers to the Secretary of State.
    In accordance with this EO, BIS implemented sanctions on Syria by 
issuing General Order No. 2 to Supplement No. 1 to Part 736 of the 
Export Administration Regulations (EAR). See 69 FR 26766 (May 14, 
2004). In addition, BIS later made administrative changes to General 
Order No. 2 and Sec.  746.9 of the EAR to facilitate compliance with 
the comprehensive U.S. sanctions on Syria. See 74 FR 77115 (Dec. 12, 
2011).
    On June 12, 2013, the Secretary of State exercised authority 
delegated to him by the President in Section 9 of EO 13338 to waive the 
application of specific sanctions imposed on Syria pursuant to the SAA. 
This rule

[[Page 43973]]

implements the Secretary of State's waiver by amending General Order 
No. 2 and Sec.  746.9 of the EAR. Specifically, BIS revises the list of 
waivers in General Order No. 2 and the associated licensing policy in 
Sec.  746.9 of the EAR to allow case-by-case review of applications for 
exports and reexports of items necessary for the support of the Syrian 
people. These exports are necessary to support a political transition, 
restore stability, and counter destabilizing influences in the region, 
and are therefore essential to the national security of the United 
States. The items may include, but are not limited to, commodities, 
software, and technology related to water supply and sanitation, 
agricultural production and food processing, power generation, oil and 
gas production, construction and engineering, transportation, and 
educational infrastructure.
    Since August 21, 2001, the Export Administration Act (the Act) has 
been in lapse and 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 most recently by the Notice of August 15, 2012, 77 FR 
49699 (August 16, 2012), has continued the EAR in effect under the 
IEEPA. BIS continues to carry out the provisions of the Act, as 
appropriate and to the extent permitted by law, pursuant to EO 13222.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).
    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 OMB 
Control Number. This rule involves collections of information subject 
to the PRA. This collection has been approved by OMB under control 
number 0694-0088, ``Multi-Purpose Application,'' which carries a burden 
hour estimate of 43.8 minutes to prepare and submit form BIS-748. Total 
burden hours associated with the PRA and OMB control number 0694-0088 
are not expected to increase 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), the provisions of the 
Administrative Procedure Act requiring notice of proposed rulemaking, 
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 the waiver of certain sanctions on Syria to 
authorize the exportation or reexportation of items necessary for the 
support of the Syrian people. 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. Notwithstanding these considerations, BIS welcomes 
public comments and will review them on a continuing basis.

List of Subjects

15 CFR Part 736

    Exports.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 736 and 746 of the EAR (15 CFR parts 730-774) 
are amended as follows:

PART 736--[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.; 
22 U.S.C. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of May 9, 2012, 77 FR 27559 (May 10, 2012); Notice of 
August 15, 2012, 77 FR 49699 (August 16, 2012); Notice of November 
1, 2012, 77 FR 66513 (November 5, 2012).

0
2. Supplement No. 1 to part 736, in paragraph (b), General Order No. 2 
is amended by revising the last phrase in the third sentence and adding 
a phrase after it to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    (b) * * *
    General Order No. 2 * * * ; items in support of United Nations 
operations in Syria; and items necessary for the support of the 
Syrian people, including, but not limited to, items related to water 
supply and sanitation, agricultural production and food processing, 
power generation, oil and gas production, construction and 
engineering, transportation, and educational infrastructure. * * *
* * * * *

PART 746--[AMENDED]

0
3. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 783; E.O. 
13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899 
(January 16, 2007); Notice of May 9, 2012, 77 FR 27559 (May 10, 
2012); Notice of August 15, 2012, 77 FR 49699 (August 16, 2012).

0
4. In Sec.  746.9, paragraph (c)(2) is amended by revising the last 
phrase in the first sentence and adding a phrase after it to read as 
follows:

Sec.  746.9  Syria

* * * * *
    (c) * * *
    (2) * * * ; items in support of United Nations operations in Syria; 
and items necessary for the support of the Syrian people, including, 
but not limited to, items related to water supply and sanitation, 
agricultural production and food processing, power generation, oil and 
gas production, construction and engineering, transportation, and 
educational infrastructure. * * *
* * * * *

[[Page 43974]]

    Dated: July 17, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-17665 Filed 7-22-13; 8:45 am]
BILLING CODE 3510-33-P
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