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[Federal Register Volume 78, Number 132 (Wednesday, July 10, 2013)]
[Rules and Regulations]
[Pages 41291-41293]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-16525]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 130611539-3539-01]
RIN 0694-AF93

Additions to the List of Validated End-Users in the People's 
Republic of China: Samsung China Semiconductor Co. Ltd. and Advanced 
Micro-Fabrication Equipment, Inc., China

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 to add two end-users in the 
People's Republic of China to the list of Validated End-Users (VEU). 
Specifically, BIS amends Supplement No. 7 to part 748 of the EAR to add 
Samsung China Semiconductor Co. Ltd. (Samsung China) and Advanced 
Micro-Fabrication Equipment, Inc., China (AMEC) as VEUs. With this 
rule, exports, reexports and transfers (in-country) of certain items to 
one Samsung China facility and one AMEC facility are now authorized 
under Authorization VEU.

DATES: This rule is effective July 10, 2013.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chair, End-User 
Review Committee, Bureau of Industry and Security, U.S. Department of 
Commerce, 14th Street & Pennsylvania Avenue NW., Washington, DC 20230; 
by telephone: (202) 482-5991, fax: (202) 482-3991, or email: 
ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

Authorization Validated End-User

    Validated End-Users (VEUs) are designated entities located in 
eligible destinations to which eligible items may be exported, 
reexported, or transferred (in-country) under a general authorization 
instead of a license. The names of the VEUs, as well as the date they 
were so designated, and their respective eligible destinations and 
items are identified in Supplement No. 7 to part 748 of the EAR. Under 
the terms described in that supplement, VEUs may obtain eligible items 
without an export license from the Bureau of Industry and Security 
(BIS), in conformity with Section 748.15 of the EAR. Eligible items 
vary between VEUs, but may include commodities, software, and 
technology, except those controlled for missile technology or crime 
control reasons on the Commerce Control List (CCL) (part 774 of the 
EAR).
    VEUs are reviewed and approved by the U.S. Government in accordance 
with the provisions of Section 748.15 and Supplement Nos. 8 and 9 to 
part 748 of the EAR. The End-User Review Committee (ERC), composed of 
representatives from the Departments of State, Defense, Energy, and 
Commerce, and other agencies, as appropriate, is responsible for 
administering the VEU program. BIS amended the Export Administration 
Regulations (EAR) in a final rule published on June 19, 2007 (72 FR 
33646) to create Authorization VEU.

Addition to the List of Validated End-User Authorizations in the 
People's Republic of China (PRC)

Addition of Samsung China Semiconductor Co. Ltd. to the List of 
Validated End-Users in the PRC and Its ``Eligible Destinations'' and 
``Eligible Items (By ECCN)''

    This final rule amends Supplement No. 7 to part 748 of the EAR to 
add Samsung China Semiconductor Co. Ltd. (Samsung China) as a VEU, and 
to identify its eligible facility and the items that may be exported, 
reexported or transferred (in-country) to Samsung China under 
Authorization VEU, effective the date of this rule. The names and 
addresses of this newly-appointed VEU and its eligible end-user are as 
follows:

Validated End-User:
    Samsung China Semiconductor Co. Ltd., City Gate 1, Jinye 
Road, Xi'an, People's Republic of China 710065.
Eligible Destination:
    Samsung China Semiconductor Co. Ltd., Xinglong Street, Chang'an 
District, Xi'an, People's Republic of China 710065.

Eligible Items (by ECCN) That May Be Exported, Reexported or 
Transferred (In-Country) to the Eligible Destination Identified Under 
Samsung China Semiconductor Co. Ltd.'s Validated End-User 
Authorization:

    Export Control Classification Numbers (ECCNs) 1C350.c.3, 1C350.d.7, 
2B230, 2B350.d.2, 2B350.g.3, 2B350.i.4, 3B001.a.1, 3B001.b, 3B001.c, 
3B001.e, 3B001.f, 3B001.h, 3C002, 3C004, 3D002, and 3E001 (limited to 
``technology'' for items classified under 3C002 and 3C004 and 
``technology'' for use consistent with the International Technology 
Roadmap for

[[Page 41292]]

Semiconductors process for items classified under ECCNs 3B001 and 
3B002).

Addition of Advanced Micro-Fabrication Equipment, Inc., China to the 
List of Validated End-Users in the PRC and Its ``Eligible 
Destinations'' and ``Eligible Items (By ECCN)''

    This final rule also amends Supplement No. 7 to part 748 of the EAR 
to add Advanced Micro-Fabrication Equipment, Inc., China (AMEC) as a 
VEU, and to identify its eligible facility and the items that may be 
exported, reexported or transferred (in-country) to AMEC under 
Authorization VEU, effective the date of this rule. The names and 
addresses of this newly-appointed VEU and its eligible end-user are as 
follows:

Validated End-User:
    Advanced Micro-Fabrication Equipment, Inc., China, 188 Taihua Road, 
Jinqiao Export Processing Zone (South Area), Pudong, Shanghai 201201, 
China.
Eligible Destination:
    Advanced Micro-Fabrication Equipment, Inc., China, 188 Taihua Road, 
Jinqiao Export Processing Zone (South Area), Pudong, Shanghai 201201, 
China.

Eligible Items (by ECCN) That May Be Exported, Reexported or 
Transferred (In-Country) to the Eligible Destination Identified Under 
Advanced Micro-Fabrication Equipment, Inc. Validated End-User 
Authorization

    Export Control Classification Numbers (ECCNs) 2B230, 3B001.c and 
3B001.e (items classified under ECCNs 3B001.c and 3B001.e are limited 
to components and accessories).
    Authorization VEU eliminates the burden on exporters and 
reexporters of preparing individual license applications because the 
export, reexport and transfer (in-country) of the eligible items 
specified for each VEU may be made under general authorization instead 
of under individual licenses. With the addition of Samsung China and 
AMEC as VEUs, exporters and reexporters can supply Samsung China and 
AMEC much more quickly, thus enhancing the competitiveness of both the 
VEU and its suppliers of U.S-origin items.
    To ensure appropriate facilitation of exports and reexports, on-
site reviews of VEUs, including Samsung China and AMEC, may be 
warranted pursuant to Section 748.15(f)(2) of the EAR and Section 7(iv) 
of Supplement No. 8 to part 748 of the EAR. If such a review is 
warranted, BIS will inform the PRC Ministry of Commerce.
    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 
International Emergency Economic Powers Act. 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, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined to be not significant for purposes of 
Executive Order 12866.
    2. This rule involves collections previously approved by the Office 
of Management and Budget (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; and for recordkeeping, 
reporting and review requirements in connection with Authorization VEU, 
which carries an estimated burden of 30 minutes per submission. This 
rule is expected to result in a decrease in license applications 
submitted to BIS. Total burden hours associated with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB Control 
Number 0694-0088 are not expected to increase significantly as a result 
of this rule.
    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 PRA, 
unless that collection of information displays a currently valid OMB 
Control Number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 
553(b)(B), BIS finds good cause to waive requirements that this rule be 
subject to notice and the opportunity for public comment because they 
are unnecessary. In determining whether to grant VEU designations, a 
committee of U.S. Government agencies evaluates information about and 
commitments made by candidate companies, the nature and terms of which 
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for 
evaluation by the committee are set forth in 15 CFR 748.15(a)(2).
    The information, commitments, and criteria for this extensive 
review were all established through the notice of proposed rulemaking 
and public comment process (71 FR 38313 (July 6, 2006) (proposed rule), 
and 72 FR 33646 (June 19, 2007) (final rule)). Given the similarities 
between the authorizations provided under the VEU program and export 
licenses (as discussed further below), the publication of this 
information does not establish new policy. In publishing this final 
rule, BIS merely adds to the list of VEUs and the respective eligible 
items and destinations within the established regulatory framework of 
the Authorization VEU program. Further, this rule does not abridge the 
rights of the public or eliminate the public's option to export under 
any of the forms of authorization set forth in the EAR.
    Publication of this rule in other than final form is unnecessary 
because the authorizations granted in the rule are consistent with the 
authorizations granted to exporters for individual licenses (and 
amendments or revisions thereof), which do not undergo public review. 
In addition, as with license applications, VEU authorization 
applications contain confidential business information, which is 
necessary for the extensive review conducted by the U.S. Government in 
assessing such applications. This information is extensively reviewed 
according to the criteria for VEU authorizations, as set out in 15 CFR 
748.15(a)(2). Additionally, just as the interagency reviews license 
applications, the authorizations granted under the VEU program involve 
interagency deliberation and result from review of public and non-
public sources, including licensing data, and the measurement of such 
information against the VEU authorization criteria. Given the nature of 
the review, and in light of the parallels between the VEU application 
review process and the review of license applications, public comment 
on this authorization and subsequent amendments prior to publication is 
unnecessary. Moreover, because, as noted above, the criteria and

[[Page 41293]]

process for authorizing and administering VEUs were developed with 
public comments, allowing additional public comment on this amendment 
to individual VEU authorizations, which was determined according to 
those criteria, is unnecessary.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than thirty (30) days after they are published in 
the Federal Register. BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3) because the delay would be 
contrary to the public interest. BIS is simply amending the list of VEU 
authorizations by adding two new end-users consistent with established 
objectives and parameters administered and enforced by the responsible 
designated departmental representatives to the End-User Review 
Committee. Delaying this action's effectiveness could cause confusion 
with the new VEU status as determined by those authorized government 
representatives and stifle the ongoing purpose of the VEU Authorization 
Program. Accordingly, it is contrary to the public interest to delay 
this rule's effectiveness.
    No other law requires that a notice of proposed rulemaking and an 
opportunity for public comment be given for this final rule. Because a 
notice of proposed rulemaking and an opportunity for public comment are 
not required under the APA or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. As a result, no final regulatory flexibility 
analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 748

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

    Dated: July 3, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.

    Accordingly, part 748 of the EAR (15 CFR parts 730-774) is amended 
as follows:

PART 748--[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.; 
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, 2012, 77 
FR 49699 (August 16, 2012).

0
2. Amend Supplement No. 7 to part 748 to add in alphabetical order 
entries for ``Advanced Micro-Fabrication Equipment, Inc., China'' and 
``Samsung China Semiconductor Co. Ltd.'' in ``China (People's Republic 
of)'' to read as follows:

  Supplement No. 7 to Part 748--Authorization Validated End-User (VEU): List of Validated End-Users, Respective
                   Items Eligible for Export, Reexport and Transfer, and Eligible Destinations
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                                                                                               Federal Register
    Country       Validated end-user   Eligible items  (by ECCN)     Eligible destination          citation
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Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
 to Sec.   748.15(c).
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                                                  * * * * * * *
                 Advanced Micro-       2B230, 3B001.c and         Advanced Micro-            78 FR [INSERT PAGE
                  Fabrication           3B001.e (items             Fabrication Equipment,     NUMBER], 7/10/13.
                  Equipment, Inc.,      classified under ECCNs     Inc., China, 188 Taihua
                  China.                3B001.c and 3B001.e are    Road, Jinqiao Export
                                        limited to components      Processing Zone (South
                                        and accessories).          Area), Pudong, Shanghai
                                                                   201201, China.
 
                                                  * * * * * * *
                 Samsung China         1C350.c.3, 1C350.d.7,      Samsung China              78 FR [INSERT PAGE
                  Semiconductor Co.     2B230, 2B350.d.2,          Semiconductor Co. Ltd.,    NUMBER], 7/10/13.
                  Ltd.                  2B350.g.3, 2B350.i.4,      Xinglong Street,
                                        3B001.a.1, 3B001.b,        Chang'an District,
                                        3B001.c, 3B001.e,          Xi'an, People's Republic
                                        3B001.f, 3B001.h, 3C002,   of China 710065.
                                        3C004, 3D002, and 3E001
                                        (limited to
                                        ``technology'' for items
                                        classified under 3C002
                                        and 3C004 and
                                        ``technology'' for use
                                        consistent with the
                                        International Technology
                                        Roadmap for
                                        Semiconductors process
                                        for items classified
                                        under ECCNs 3B001 and
                                        3B002).
 
                                                  * * * * * * *
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[FR Doc. 2013-16525 Filed 7-9-13; 8:45 am]
BILLING CODE 3510-33-P
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