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[Federal Register Volume 78, Number 130 (Monday, July 8, 2013)]
[Rules and Regulations]
[Pages 40630-40632]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16152]

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DEPARTMENT OF STATE

22 CFR Part 123

RIN 1400-AD07
[Public Notice 8371]

International Traffic in Arms Regulations: Canadian Firearms 
Components Exemption

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: The Department of State is amending the International Traffic 
in Arms Regulations to implement a

[[Page 40631]]

statutory provision regarding the exemption from licensing for export 
to Canada of firearms components not exceeding $500 in value.

DATES: This rule is effective July 8, 2013.

FOR FURTHER INFORMATION CONTACT: Ms. Sarah J. Heidema, Acting Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792, email DDTCResponseTeam@state.gov. ATTN: Part 123, 
Canadian Firearms Components Exemption.

SUPPLEMENTARY INFORMATION: The Department of State is amending the 
International Traffic in Arms Regulations (ITAR) to implement section 
520 of the Consolidated and Further Continuing Appropriations Act 2012 
(Pub. L. 112-55), which applies to fiscal year 2012 appropriations, as 
carried forward for fiscal year 2013 by the Full Year Continuing 
Appropriations Act 2013 (Pub. L. 113-6). The Department has the 
authority to regulate the export control program pursuant to the Arms 
Export Control Act, 22 U.S.C. 2778.
    Pursuant to section 520, the Department cannot require a license 
for the export of certain firearms and firearms components for end-use 
by the Canadian government with a total transaction value not exceeding 
$500 wholesale, and cannot require a license for the export of certain 
firearms components for end-use in Canada with a total transaction 
value not exceeding $500 wholesale. ITAR Sec.  123.17 is revised 
accordingly. In addition, ITAR Sec.  123.16(b)(6) is amended to remove 
the words ``for personal use,'' as the firearms exemption at ITAR Sec.  
123.17 includes use of the exemption for an end-use other than personal 
use.
    This rule implements a statutory mandate, and concerns a foreign 
affairs function of the United States. Therefore, the Department is 
publishing this as a final rule, and is not soliciting comments.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a foreign affairs 
function of the United States Government and that rules implementing 
this function are exempt from sections 553 (rulemaking) and 554 
(adjudications) of the Administrative Procedure Act. Since the 
Department is of the opinion that this rule is exempt from 5 U.S.C. 
553, it is the view of the Department that the provisions of Sec.  
553(d) do not apply to this rulemaking. Therefore, this rule is 
effective upon publication.

Regulatory Flexibility Act

    Since the Department is of the opinion that this rule is exempt 
from the provisions of 5 U.S.C. 553, there is no requirement for an 
analysis under the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not pre-empt 
tribal law. Accordingly, the provisions of Executive Order 13175 do not 
apply to this rulemaking.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rulemaking has been found not to be a major rule within the 
meaning of the Small Business Regulatory Enforcement Fairness Act of 
1996.

Executive Orders 12372 and 13132

    This rulemaking will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rulemaking does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rulemaking.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess 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, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This rule has been designated ``significant regulatory actions,'' 
although not economically significant, under section 3(f) of Executive 
Order 12866. Accordingly, this rule has been reviewed by the Office of 
Management and Budget (OMB).

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35.

List of Subjects in 22 CFR 123

    Arms and munitions, Exports, Reporting and recordkeeping 
requirements.
    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, part 123, is amended as follows:

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

0
1. The authority citation for part 123 is revised to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 
U.S.C. 2776; Pub. L. 105-261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 
107-228; Sec. 520, Pub. L. 112-55; Section 1261, Pub. L. 112-239; 
E.O. 13637, 78 FR 16129.

0
2. Section 123.16 is amended by revising paragraph (b)(6) to read as 
follows:

Sec.  123.16  Exemptions of general applicability.

* * * * *
    (b) * * *
    (6) For exemptions for firearms and ammunition refer to Sec.  
123.17 of this subchapter.
* * * * *
0
3. Section 123.17 is amended by revising paragraph (a) to read as 
follows:

Sec.  123.17  Exports of firearms, ammunition, and personal protective 
gear.

    (a) Port Directors of U.S. Customs and Border Protection shall 
permit the export without a license of:

[[Page 40632]]

    (1) Parts and components for USML Category I(a) firearms, except 
barrels, cylinders, receivers (frames), or complete breech mechanisms, 
when the total value does not exceed $100 wholesale in any transaction, 
except to any of the countries or entities as provided in Sec.  126.1 
of this subchapter;
    (2) Parts, components, accessories, or attachments for USML 
Category I firearms, except barrels, cylinders, receivers (frames), 
complete breech mechanisms, or fully automatic firearms and parts and 
components for such firearms, when:
    (i) The total value does not exceed $500 wholesale in any 
transaction;
    (ii) The export is to Canada for end-use in Canada or return to the 
United States, or temporary import into the United States of Canadian-
origin items and return to Canada for a Canadian citizen; and
    (iii) The exporter makes a declaration via the Automated Export 
System, pursuant to Sec.  123.22(a) of this subchapter, and the 
exporter is eligible to export under this exemption, pursuant to Sec.  
120.1(c) of this subchapter; or
    (3) Parts, components, accessories, or attachments for USML 
Category I firearms, including fully automatic firearms and parts and 
components for such firearms, when:
    (i) The total value does not exceed $500 wholesale in any 
transaction;
    (ii) The export is to Canada for end-use by the Canadian Federal 
Government, a Canadian Provincial Government, or a Canadian Municipal 
Government; and
    (iii) The exporter makes a declaration via the Automated Export 
System, pursuant to Sec.  123.22(a) of this subchapter, and the 
exporter is eligible to export under this exemption, pursuant to Sec.  
120.1(c) of this subchapter.
* * * * *

Rose E. Gottemoeller,
Acting Under Secretary, Arms Control and International Security, 
Department of State.
[FR Doc. 2013-16152 Filed 7-5-13; 8:45 am]
BILLING CODE 4710-25-P
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