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[Federal Register Volume 76, Number 238 (Monday, December 12, 2011)]
[Rules and Regulations]
[Pages 77115-77119]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-31682]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732, 736, 738, 740, 742, 746, and 774

[Docket No. 110627356-1475-01]
RIN 0694-AF29

Amendments to the Export Administration Regulations: Facilitating 
Enhanced Public Understanding of the Provisions That Implement the 
Comprehensive U.S. Sanctions on Syria

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) amends 
the Export Administration Regulations (EAR) by moving the substantive 
provisions of the comprehensive sanctions on Syria from General Order 
No. 2 in Supplement No. 1 to part 736 to a revised Sec.  746.9. This 
rule also includes conforming changes to the EAR. This rule will 
facilitate compliance with the comprehensive sanctions on Syria.

DATES: This rule is effective December 12, 2011.

FOR FURTHER INFORMATION CONTACT: Director, Foreign Policy Division, 
Office of Nonproliferation and Treaty Compliance, Bureau of Industry 
and Security, (202) 482-4252.

SUPPLEMENTARY INFORMATION:

Background

Amendments to Parts 736 and 746 of the Export Administration 
Regulations

    In this rule, the Bureau of Industry and Security (BIS) amends the 
Export Administration Regulations (EAR) by moving the substantive 
provisions of the comprehensive sanctions on Syria from General Order 
No. 2 in Supplement No. 1 to part 736 to a revised Section 746.9. In 
General Order No. 2 of May 14, 2004, BIS implemented the U.S. sanctions 
on Syria pursuant to the Syria Accountability and Lebanese Sovereignty 
Restoration Act of 2003 (SAA) and the International Emergency Economic 
Powers Act (IEEPA). Part 746 of the EAR addresses embargoes and other 
special controls and is therefore the most appropriate place for the 
comprehensive sanctions against Syria. For this reason, part 746 
previously contained a cross reference to the Syria provisions in 
General Order No. 2 at section 746.9. BIS is removing the cross 
reference and replacing it with the substantive provisions previously 
set forth in the General Order. As a result, the Syria controls will be 
included in part 746 along with the controls applicable to other 
embargoed and sanctioned countries. As noted below, certain Syria 
controls continue to be set forth in section 742.9 of the EAR, and 
section 746.9 supersedes the substantive provisions of section 742.9. 
These changes will facilitate compliance with the comprehensive U.S. 
sanctions on Syria.
    Although all the substantive provisions from General Order No. 2 
are being included in part 746, BIS is maintaining certain provisions 
relating to the sanctions against Syria in the General Order at this 
time because of wording in Executive Order 13338. That Executive Order 
invokes the waiver authority granted to the President in the SAA by 
waiving application of certain prohibitions of the SAA ``so as to 
permit the exportation or reexportation of certain items as specified 
in the Department of Commerce's General Order No. 2 to Supplement No. 1 
* * *.'' Because of this cross reference to General Order No. 2 in the 
Executive Order, BIS is maintaining in the General Order the waiver 
provisions referenced in the Executive Order.
    This rule also makes conforming changes to the EAR for the 
amendments to Supplement No. 1 to part 736, General Order No. 2, and 
Section 746.9.

Conforming Changes: Parts 732, 736, 738, 740, 742, and 774

    This rule amends sections 732.1 (Steps overview), 740.2 
(Restrictions on all License Exceptions), and 740.9 (Temporary imports, 
exports, and reexports) of the EAR. Specifically, Syria is now listed 
in paragraphs 732.1(d)(2), 732.1(d)(3), 732.3(d)(4), 732.3(i), 
740.2(a)(6), and 740.9(a)(2).
    This rule also amends Section 742.9 (Anti-terrorism: Syria) and 
Supplement No. 1 to part 738--Commerce Country Chart. Paragraph (e) of 
Section 742.9 and the sentence that appears in the entry for Syria in 
the Commerce Country Chart now direct the public to revised Section 
746.9, which provides export and reexport license requirements, 
licensing policy and license exceptions as applied to Syria.
    Finally, this rule amends the entries on the Commerce Control List 
in Supplement No. 1 to part 774 of the EAR for items controlled by 
Export Control Classification Numbers 1C350, 1C355 and 1C395. The rule 
removes a statement in the License Requirements section of those 
entries that directed exporters to Supplement No. 1 to part 736 of the 
EAR for controls on Syria.
    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. 783 (2002)), which has been extended 
by successive Presidential Notices, the most recent being that of 
August 12, 2011 (76 FR 50,661 (Aug. 16, 2011)), has continued the 
Regulations in effect under the International Emergency Economic Powers 
Act (50 U.S.C. 1701 et seq. (2000)). 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. 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.
    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 does not 
involve a collection of information and, therefore, does not implicate 
requirements of the PRA.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The Department finds that the provisions of the Administrative 
Procedure Act (5 U.S.C. 553) requiring prior notice, the opportunity 
for public participation, and a delay in effective date are 
inapplicable because the Department for good cause finds that prior 
notice and opportunity for public

[[Page 77116]]

comment are unnecessary (5 U.S.C. 553(b)(B)). It is unnecessary to 
provide prior notice and an opportunity for public comment in issuing 
this notice because the notice does not make any substantive changes to 
the Regulations. This rule simply reorganizes certain Syria-related 
provisions of the EAR. The provisions are currently in a General Order 
and the public is directed to them through a cross-reference in the EAR 
section addressing embargoes and special controls. This rule places the 
Syria provisions into the EAR section addressing embargoes and special 
controls, replacing the existing cross-reference. All controls in place 
pertaining to Syria remain in place and no new controls have been 
added. Therefore, this regulation is issued in final form. In addition, 
the Department finds good cause under 5 U.S.C. 553(d)(3) to waive the 
30-day delay in effectiveness. The controls at issue have been in 
effect since 2004 and the public has been expected to be in compliance 
with the provisions since that time. Thus, because the controls on 
Syria are not changed by this rule, there is no need to delay the 
effectiveness of the rule to allow the regulated public time to come 
into compliance. Accordingly, this regulation is made effective 
immediately upon publication.
    No other law requires that a notice of proposed rulemaking and an 
opportunity for public comments 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.

List of Subjects

15 CFR Parts 732 and 740

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

15 CFR Parts 736 and 738

    Exports.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 746 and 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 732, 736, 738, 740, 742, 746 and 774 of the 
Export Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 732--[AMENDED]

0
1. The authority citation for 15 CFR part 732 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 12, 2011 (76 
FR 50661 (Aug. 16, 2011)).

Sec.  732.1  [Amended]

0
2. Section 732.1 is amended by:
0
a. Removing the phrase ``, and Three (Foreign-Produced Direct Product 
Reexports) for all countries except: Cuba, Iran, and North Korea.'' in 
the next to last sentence of paragraph (d)(2) and adding in its place 
``, and Three (Foreign-Produced Direct Product Reexports) for all 
countries except: Cuba, Iran, North Korea, and Syria.''; and
0
b. Removing the parenthetical phrase ``(e.g., Cuba, Iran, and North 
Korea)'' in paragraph (d)(3) and adding in its place ``(e.g., Cuba, 
Iran, North Korea and Syria)''.

0
3. Section 732.3 is amended by revising paragraphs (d)(4) and (i) to 
read as follows:

Sec.  732.3  Steps regarding the ten general prohibitions.

* * * * *
    (d) * * *
    (4) Destinations subject to embargo and other special controls 
provisions. The Country Chart does not apply to Cuba, Iran, North 
Korea, and Syria. For those countries you should review the provisions 
at part 746 of the EAR and may skip this step concerning the Country 
Chart. For Iraq and Rwanda, the Country Chart provides for certain 
license requirements, and part 746 of the EAR provides additional 
requirements.
* * * * *
    (i) Step 14: Embargoed countries and special destinations. If your 
destination for any item is Cuba, Iran, Iraq, North Korea, Rwanda, or 
Syria you must consider the requirements of parts 742 and 746 of the 
EAR. Unless otherwise indicated, General Prohibition Six (Embargo) 
applies to all items subject to the EAR, i.e. both items on the CCL and 
within EAR99. You may not make an export or reexport contrary to the 
provisions of part 746 of the EAR without a license unless:
* * * * *

PART 736--[AMENDED]

0
4. The authority citation for 15 CFR part 736 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 August 12, 2011 (76 FR 50661 (Aug. 16, 2011)); 
Notice of November 4, 2010, 75 FR 68673 (November 8, 2010).

0
5. Supplement No. 1 to part 736--General Order No. 2--is revised to 
read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *

    General Order No. 2; Section 5(b) of the Syria Accountability 
and Lebanese Sovereignty Restoration Act of 2003 (SAA) gives the 
President authority to waive the application of certain prohibitions 
set forth in the SAA if the President determines that it is in the 
national security interest of the United States to do so. The 
President made such a determination in Executive Order 13338, 
finding that it was ``in the national security interest of the 
United States to waive application of subsection 5(a)(1) and 
5(a)(2)(A) of the SAA so as to permit the exportation or 
reexportation of certain items as specified in the Department of 
Commerce's General Order No. 2.'' The President's reference to 
General Order No. 2 addresses applications to export and reexport 
the following items, which are considered on a case-by-case basis as 
opposed to the general policy of denial set forth in section 746.9 
of the Regulations: items in support of activities, diplomatic or 
otherwise, of the United States Government (to the extent that 
regulation of such exportation or reexportation would not fall 
within the President's constitutional authority to conduct the 
nation's foreign affairs); medicine (on the CCL) and medical devices 
(both as defined in part 772 of the EAR); parts and components 
intended to ensure the safety of civil aviation and the safe 
operation of commercial passenger aircraft; aircraft chartered by 
the Syrian Government for the transport of Syrian Government 
officials on official Syrian Government business; telecommunications 
equipment and associated computers, software and technology; and 
items in support of United Nations operations in Syria. The total 
dollar value of each approved license for aircraft parts for flight 
safety normally will be limited to no more than $2 million over the 
24-month standard license term, except in the case of complete 
overhauls.

    Note to General Order No. 2: The controls for exports and 
reexports to Syria are set forth in Sec.  746.9 of the EAR.

* * * * *

PART 738--[AMENDED]

0
6. The authority citation for 15 CFR part 738 continues to read as 
follows:

[[Page 77117]]

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 12, 2011 (76 FR 50661 (Aug. 16, 2011)).

0
7. Supplement No. 1 to part 738--Commerce Country Chart--is amended by 
revising the sentence that appears in the entry for ``Syria'' to read 
``See Sec.  746.9 of the EAR to determine whether a license is required 
in order to export or reexport to this destination.''

PART 740--[AMENDED]

0
8. The authority citation for 15 CFR part 740 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. 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 12, 2011 (76 FR 50661 (Aug. 16, 2011)).

0
9. Section 740.2 is amended by revising paragraph (a)(6) to read as 
follows:

Sec.  740.2  Restriction on all License Exceptions.

    (a) * * *
    (6) The export or reexport is to a sanctioned destination (Cuba, 
Iran, North Korea, and Syria), unless a license exception or portion 
thereof is specifically listed in the license exceptions paragraph 
pertaining to a particular sanctioned country in part 746 of the EAR.
* * * * *

0
10. Section 740.9 is amended by:
0
(a) Revising the heading and first sentence of paragraph (a)(2)(i)(A) 
to read as set forth below.
0
(b) Removing the clause in paragraph (a)(2)(viii)(A), ``to Country 
Groups D:1 or E:2, or Sudan (see supplement No. 1 to part 740) if the 
commodities:'', and adding in its place ``to Country Groups D:1 or E:2, 
Sudan, or Syria (see Supplement No. 1 to part 740) if the 
commodities:''

Sec.  740.9  Temporary imports, exports, and reexports (TMP).

    (a) * * *
    (2) * * *
    (i) * * *
    (A) Destinations other than Country Group E:2, Sudan or Syria. 
Exports and reexports of tools of trade for use by the exporter or 
employees of the exporter may be made only to destinations other than 
Country Group E:2, Sudan, or Syria. * * *
* * * * *

PART 742--[AMENDED]

0
11. The authority citation for 15 CFR part 742 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. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 
2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Notice of August 
12, 2011 (76 FR 50661 (Aug. 16, 2011)); Notice of November 4, 2010, 
75 FR 68673 (November 8, 2010).

0
12. Section 742.1 is amended by revising the last sentence of paragraph 
(d) to read as follows:

Sec.  742.1  Introduction.

* * * * *
    (d) * * * If you are exporting or reexporting to Cuba, Iran, North 
Korea, or Syria, you should review part 746 of the EAR, Embargoes and 
Other Special Controls.
* * * * *

0
13. Section 742.9 is amended by revising paragraph (e) to read as 
follows:

Sec.  742.9  Anti-terrorism: Syria.

* * * * *
    (e) Section 746.9 (Syria) of the EAR sets forth the export and 
reexport controls for Syria. Section 746.9 supersedes the provisions of 
paragraphs (a) through (d) of this section.

PART 746--[AMENDED]

0
14. 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; 
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); August 12, 2011 (76 FR 50661 (Aug. 16, 
2011)).

0
15. Section 746.1 is amended by revising paragraph (a) introductory 
text and adding paragraph (a)(3) to read as follows:

Sec.  746.1  Introduction.

* * * * *
    (a) Comprehensive controls. This part contains or refers to all the 
BIS licensing requirements, licensing policies, and License Exceptions 
for countries subject to general embargoes or comprehensive sanctions, 
currently Cuba, Iran, and Syria. This part is the focal point for all 
the EAR requirements for transactions involving these countries.
* * * * *
    (3) Syria. Pursuant to Sections 5(a)(1) and 5(a)(2)(A) of 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), since May 
14, 2004 BIS has maintained a prohibition on the export to Syria of all 
items on the Commerce Control List (in 15 CFR part 774) (CCL) and a 
prohibition on the export to Syria of products of the United States, 
other than food and medicine. The President also exercised national 
security waiver authority pursuant to Section 5(b) of the SAA for 
certain transactions. Section 746.9 of this part sets forth the 
specific license requirements, licensing policy and license exceptions 
applicable to Syria as a sanctioned country under the EAR. These 
provisions were issued consistent with Executive Order 13338 of May 11, 
2004 which implemented the SAA.
* * * * *

0
16. Section 746.9 is revised to read as follows:

Sec.  746.9  Syria.

    Sections 5(a)(1) and 5(a)(2)(A) of 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) require a prohibition on the 
export to Syria of all items on the Commerce Control List (in 15 CFR 
part 774) (CCL) and a prohibition on the export to Syria of products of 
the United States, other than food and medicine. The President also 
exercised national security waiver authority pursuant to Section 5(b) 
of the SAA for certain transactions. The provisions in this section 
were issued consistent with Executive Order 13338 of May 11, 2004 which 
implemented the SAA.
    (a) License requirements. A license is required for the export or 
reexport to Syria of all items subject to the EAR, except food and 
medicine classified as EAR99 (food and medicine are defined in part 772 
of the EAR). A license is required for the ``deemed export'' and 
``deemed reexport,'' as described in Sec.  734.2(b) of the EAR, of any 
technology or source code on the Commerce Control List (CCL) to a 
Syrian foreign

[[Page 77118]]

national. ``Deemed exports'' and ``deemed reexports'' to Syrian foreign 
nationals involving technology or source code subject to the EAR but 
not listed on the CCL do not require a license.
    (b) License Exceptions. No License Exceptions to the license 
requirements set forth in paragraph (a) of this section are available 
for exports or reexports to Syria, except the following:
    (1) TMP for items for use by the news media as set forth in Sec.  
740.9(a)(2)(viii) of the EAR,
    (2) GOV for items for personal or official use by personnel and 
agencies of the U.S. Government as set forth in Sec.  740.11(b)(2)(i) 
and (ii) of the EAR,
    (3) TSU for operation technology and software, sales technology, 
and software updates pursuant to the terms of Sec.  740.13(a), (b), or 
(c) of the EAR,
    (4) BAG for exports of personally-owned items by individuals 
leaving the United States as personal baggage pursuant to the terms of 
Sec.  740.14(a) through (d), only, of the EAR, and
    (5) AVS for the temporary sojourn of civil aircraft reexported to 
Syria pursuant to the terms of Sec.  740.15(a)(4) of the EAR.
    (c) Licensing policy. (1) Except as described in this paragraph 
(c), all license applications for export or reexport to Syria are 
subject to a general policy of denial. License applications for 
``deemed exports'' and ``deemed reexports'' of technology and source 
code will be reviewed on a case-by-case basis. BIS may consider, on a 
case-by-case basis, license applications for exports and reexports of 
items necessary to carry out the President's constitutional authority 
to conduct U.S. foreign affairs and as Commander-in-Chief, including 
exports and reexports of items necessary for the performance of 
official functions by the United States Government personnel abroad.
    (2) BIS may also consider the following license applications on a 
case-by-case basis: items in support of activities, diplomatic or 
otherwise, of the United States Government (to the extent that 
regulation of such exportation or reexportation would not fall within 
the President's constitutional authority to conduct the nation's 
foreign affairs); medicine (on the CCL) and medical devices (both as 
defined in part 772 of the EAR); parts and components intended to 
ensure the safety of civil aviation and the safe operation of 
commercial passenger aircraft; aircraft chartered by the Syrian 
Government for the transport of Syrian Government officials on official 
Syrian Government business; telecommunications equipment and associated 
computers, software and technology; and items in support of United 
Nations operations in Syria. The total dollar value of each approved 
license for aircraft parts for flight safety normally will be limited 
to no more than $2 million over the 24-month standard license term, 
except in the case of complete overhauls.
    (3) In addition, consistent with part 734 of the EAR, the following 
are not subject to the EAR and therefore not subject to this General 
Order: informational materials in the form of books and other media; 
publicly available software and technology; and technology exported in 
the form of a patent application or an amendment, modification, or 
supplement thereto or a division thereof (see 15 CFR 734.3(b)(1)(v), 
(b)(2) and (b)(3)).

    Note to Sec.  746.9: For administrative reasons, BIS continues 
to maintain provisions in General Order No. 2, Supplement No. 1 to 
part 736 of the EAR relating to the President's waiver of certain 
prohibitions. This section contains all of the substantive controls 
against Syria, including the waiver-related provisions maintained in 
General Order No. 2.

PART 774--[AMENDED]

0
17. The authority citation for 15 CFR part 774 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 12, 2011 (76 FR 50661 (Aug. 16, 2011)).

0
18. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, ``Micro 
Organisms,'' and ``Toxins''--Export Control Classification Number 
(ECCN) 1C350 is amended by revising the AT paragraph in the License 
Requirements section to read as follows:

Supplement No. 1 to Part 774--Commerce Control List

* * * * *

1C350 Chemicals that may be used as precursors for toxic chemical 
agents.

License Requirements

* * * * *
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for AT reasons in 1C350. A license is required, for AT reasons, to 
export or reexport items controlled by 1C350 to a country in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR. (See part 742 
of the EAR for additional information on the AT controls that apply 
to Iran, North Korea, Sudan, and Syria. See part 746 of the EAR for 
additional information on sanctions that apply to Cuba, Iran, North 
Korea, and Syria.)
* * * * *

0
19. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, ``Micro 
Organisms,'' and ``Toxins''--Export Control Classification Number 
(ECCN) 1C355 is amended by revising the Control(s) paragraphs in the 
License Requirements section to read as follows:

1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and 
families of chemicals not controlled by ECCN 1C350 or by the Department 
of State under the ITAR.

License Requirements

* * * * *
    Control(s): CW applies to entire entry. The Commerce Country Chart 
is not designed to determine licensing requirements for items 
controlled for CW reasons. A license is required to export or reexport 
CWC Schedule 2 chemicals and mixtures identified in 1C355.a to States 
not Party to the CWC (destinations not listed in Supplement No. 2 to 
part 745 of the EAR). A license is required to export CWC Schedule 3 
chemicals and mixtures identified in 1C355.b to States not Party to the 
CWC, unless an End-Use Certificate issued by the government of the 
importing country is obtained by the exporter, prior to export. A 
license is required to reexport CWC Schedule 3 chemicals and mixtures 
identified in 1C355.b from a State not Party to the CWC to any other 
State not Party to the CWC. (See Sec.  742.18 of the EAR for license 
requirements and policies for toxic and precursor chemicals controlled 
for CW reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for 
AT reasons in 1C355. A license is required, for AT reasons, to export 
or reexport items controlled by 1C355 to a country in Country Group E:1 
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR 
for additional information on the AT controls that apply to Iran, North 
Korea, Sudan, and Syria. See part 746 of the EAR for additional 
information on sanctions that apply to Cuba, Iran, North Korea, and 
Syria.)
* * * * *

[[Page 77119]]

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20. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, ``Micro 
Organisms,'' and ``Toxins''--Export Control Classification Number 
(ECCN) 1C395 is amended by revising the AT paragraph in the License 
Requirements section to read as follows:

1C395 Mixtures and Medical, Analytical, Diagnostic, and Food Testing 
Kits Not Controlled by ECCN 1C350, as Follows (See List of Items 
Controlled).

License Requirements

* * * * *
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for 
AT reasons in 1C395. A license is required, for AT reasons, to export 
or reexport items controlled by 1C395 to a country in Country Group E:1 
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR 
for additional information on the AT controls that apply to Iran, North 
Korea, Sudan, and Syria. See part 746 of the EAR for additional 
information on sanctions that apply to Cuba, Iran, North Korea, and 
Syria.)
* * * * *

    Dated: December 5, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-31682 Filed 12-9-11; 8:45 am]
BILLING CODE 3510-33-P
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