Federal Register / Vol. 87, No. 4 / Thursday, January 6, 2022 / Rules and Regulations 731 

Thea D. Rozman Kendler, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–28444 Filed 1–5–22; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Office of Investment Security 

31 CFR Part 800 

Determination Regarding Excepted 

Foreign States 

AGENCY: Office of Investment Security, 

Department of the Treasury. 

ACTION: Determination. 

SUMMARY: The Department of the 

Treasury, as Chair of the Committee on 

Foreign Investment in the United States, 

is publishing the Committee’s 

determination that two foreign states 

have established and are effectively 

utilizing a robust process to analyze 

foreign investments for national security 

risks and to facilitate coordination with 

the United States on matters relating to 

investment security. 

DATES: Effective January 5, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Laura Black, Director of Investment 

Security Policy and International 

Relations, at U.S. Department of the 

Treasury, 1500 Pennsylvania Avenue 

NW, Washington, DC 20220; telephone: 

(202) 622–3425; email: CFIUS.FIRRMA@

treasury.gov. 

SUPPLEMENTARY INFORMATION: 

Electronic Availability 

The list of excepted foreign states and 

additional information with respect to 

the Committee on Foreign Investment in 

the United States (CFIUS or the 

Committee) are available on the 

Committee’s section of the Department 

of the Treasury website. 

Notice of CFIUS Action 

The Committee, taking into 

consideration the factors identified on 

the Committee’s section of the 

Department of the Treasury website, has 

determined, under the authority of 

section 721 of the Defense Production 

Act of 1950, as amended, and 31 CFR 

800.1001(a), that: (1) Australia has 

established and is effectively utilizing a 

robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security; and (2) Canada has 

established and is effectively utilizing a 

robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security. 

This determination satisfies the 

second criterion in the definition of 

excepted foreign state under 31 CFR 

800.218 with respect to Australia and 

Canada. Therefore, Australia and 

Canada are and will remain excepted 

foreign states absent further Committee 

action and notice in the Federal 

Register. 

Larry McDonald, 

Acting Assistant Secretary for International 

Markets. 

[FR Doc. 2021–28598 Filed 1–5–22; 8:45 am] 

BILLING CODE 4810–AK–P 

DEPARTMENT OF THE TREASURY 

Office of Investment Security 

31 CFR Parts 800 and 802 

Certain Investments in the United 

States by Foreign Persons and Certain 

Transactions by Foreign Persons 

Involving Real Estate in the United 

States 

AGENCY: Office of Investment Security, 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This final rule adopts without 

change the proposed rule modifying the 

definitions of ‘‘excepted foreign state’’ 

and ‘‘excepted real estate foreign state’’ 

by extending by one year the effective 

date of one of two criteria set forth in 

the definitions in the regulations 

implementing certain provisions of 

Section 721 of the Defense Production 

Act of 1950, as amended. 

DATES: This final rule is effective on 

February 4, 2022. 

FOR FURTHER INFORMATION CONTACT: For 

questions about this rule, contact: Laura 

Black, Director of Investment Security 

Policy and International Relations, 

Meena R. Sharma, Deputy Director of 

Investment Security Policy and 

International Relations, or Richard 

Rowe, Senior Policy Advisor, at U.S. 

Department of the Treasury, 1500 

Pennsylvania Avenue NW, Washington, 

DC 20220; telephone: (202) 622–3425; 

email: CFIUS.FIRRMA@treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Definitions of Excepted Foreign State 

and Excepted Real Estate Foreign 

State—Sections 800.218 and 802.214 

On November 15, 2021, the 

Department of the Treasury (Treasury 

Department) published a proposed rule 

amending the definitions of ‘‘excepted 

foreign state’’ and ‘‘excepted real estate 

foreign state’’ in 31 CFR part 800 and 31 

CFR part 802, respectively. 86 FR 62978. 

These terms operate together with other 

relevant terms to provide an exception 

from the jurisdiction of the Committee 

on Foreign Investment in the United 

States (CFIUS or the Committee) over 

covered investments by certain foreign 

persons who meet specific criteria 

establishing sufficiently close ties to 

certain foreign states, as well as certain 

other provisions of the Foreign 

Investment Risk Review Modernization 

Act of 2018. 

The preamble to the proposed rule 

provides background on CFIUS’s 

statutory authority and the rationale for 

these definitional changes. The public 

was provided an opportunity to 

comment on the proposed rule and 

comments were due by December 10, 

2021. The Treasury Department 

received two comments prior to the 

deadline, which are described in the 

next section. 

B. Excepted Foreign States and 

Excepted Real Estate Foreign States 

As described in the preamble to the 

proposed rule, ‘‘excepted foreign state’’ 

and ‘‘excepted real estate foreign state’’ 

are each defined by a two-criteria 

conjunctive test, with delayed 

effectiveness for the second criterion. 

This second criterion is a Committee 

determination under § 800.1001(a) for 

each eligible foreign state that it has 

established and ‘‘is effectively utilizing’’ 

a robust process to analyze foreign 

investments for national security risks 

and to facilitate coordination with the 

United States on matters relating to 

investment security, and a Committee 

determination under § 802.1001(a) for 

each eligible foreign state that it has 

‘‘made significant progress’’ toward 

establishing and effectively utilizing the 

robust process that is described in 

§ 800.1001. The final rule extends the 

effectiveness of the second criterion 

with respect to each definition. Instead 

of becoming effective on February 13, 

2022, each such second criterion will 

become effective on February 13, 2023. 

II. Summary of Comments 

During the public comment period, 

the Treasury Department received two 

comments to the proposed rule. The 

Treasury Department considered each 

submitted comment. All comments 

received by the end of the comment 

period are available on the public 

rulemaking docket at https://

www.regulations.gov and addressed 

herein. 


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