6022 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Rules and Regulations 

frequent and routine amendments are 

necessary to keep them operationally 

current. It, therefore—(1) is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. For the same 

reason, the FAA certifies that this 

amendment will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Lists of Subjects in 14 CFR Part 97; 

Air Traffic Control, Airports, 

Incorporation by reference, Navigation 

(Air). 

Issued in Washington, DC, on January 21, 

2022. 

Thomas J. Nichols, 

Aviation Safety, Flight Standards Service, 

Manager, Standards Section, Flight 

Procedures & Airspace Group, Flight 

Technologies & Procedures Division. 

Adoption of the Amendment 

Accordingly, pursuant to the 

authority delegated to me, Title 14, 

Code of Federal Regulations, Part 97 (14 

CRF part 97) is amended by 

establishing, amending, suspending, or 

removing Standard Instrument 

Approach Procedures and/or Takeoff 

Minimums and Obstacle Departure 

Procedures effective at 0901 UTC on the 

dates specified, as follows: 

PART 97—STANDARD INSTRUMENT 

APPROACH PROCEDURES 

■ 1. The authority citation for part 97 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40103, 

40106, 40113, 40114, 40120, 44502, 44514, 

44701, 44719, 44721–44722. 

■ 2. Part 97 is amended to read as 

follows: 

Effective 24 March 2022 

Siloam Springs, AR, KSLG, RNAV (GPS) 

RWY 18, Amdt 2 

Prescott, AZ, KPRC, VOR RWY 12, Amdt 3 

Fresno, CA, KFCH, RNAV (GPS) RWY 12, 

Amdt 1A 

Hanford, CA, KHJO, VOR–A, Amdt 10, 

CANCELLED 

Napa, CA, KAPC, RNAV (GPS) RWY 6, Amdt 

3 

Napa, CA, KAPC, VOR RWY 6, Amdt 15 

Ontario, CA, KONT, RNAV (RNP) Z RWY 

26L, Amdt 3 

Ontario, CA, KONT, RNAV (RNP) Z RWY 

26R, Amdt 3 

Ontario, CA, Ontario International Airport, 

Takeoff Minimums and Obstacle DP, Amdt 

9A 

Rio Vista, CA, O88, RNAV (GPS) RWY 25, 

Amdt 4 

Salinas, CA, KSNS, RNAV (GPS) RWY 8, 

Orig 

Tulare, CA, KTLR, VOR RWY 13, Amdt 2A, 

CANCELLED 

Alamosa, CO, KALS, ILS OR LOC RWY 2, 

Amdt 3 

Alamosa, CO, KALS, RNAV (GPS) RWY 2, 

Amdt 2 

Alamosa, CO, KALS, RNAV (GPS) RWY 20, 

Amdt 2 

Alamosa, CO, KALS, VOR–B, Amdt 6 

Fort Collins/Loveland, CO, KFNL, ILS OR 

LOC RWY 33, Amdt 7 

Fort Collins/Loveland, CO, KFNL, RNAV 

(GPS) RWY 15, Orig-C 

Fort Collins/Loveland, CO, KFNL, RNAV 

(GPS) RWY 33, Amdt 2 

Donalsonville, GA, 17J, RNAV (GPS) RWY 1, 

Amdt 2 

Donalsonville, GA, 17J, RNAV (GPS) RWY 

19, Amdt 2 

Wellington, KS, KEGT, VOR RWY 18, Amdt 

3, CANCELLED 

Falmouth, MA, 5B6, RNAV (GPS) RWY 7, 

Orig 

Falmouth, MA, 5B6, RNAV (GPS) RWY 25, 

Orig 

Falmouth, MA, Falmouth Airpark, Takeoff 

Minimums and Obstacle DP, Orig 

Coldwater, MI, KOEB, VOR RWY 7, Amdt 

5B, CANCELLED 

Coldwater, MI, KOEB, VOR/DME RWY 25, 

Orig-B, CANCELLED 

Detroit, MI, KDET, RNAV (GPS) RWY 15, 

Orig-D 

Bowling Green, MO, H19, RNAV (GPS) RWY 

13, Amdt 1 

Bowling Green, MO, H19, RNAV (GPS) RWY 

31, Amdt 1 

Bowling Green, MO, Bowling Green Muni, 

Takeoff Minimums and Obstacle DP, Amdt 

1 

Keene, NH, KEEN, ILS OR LOC RWY 2, 

Amdt 6 

Saranac Lake, NY, KSLK, RNAV (GPS) RWY 

23, Amdt 2 

Columbus, OH, KCMH, RNAV (RNP) Z RWY 

28L, Amdt 2A 

Albany, OR, S12, VOR–A, Amdt 5 

Elizabethton, TN, 0A9, RNAV (GPS) RWY 6, 

Amdt 1 

Decatur, TX, KLUD, RNAV (GPS) RWY 35, 

Orig-C 

[FR Doc. 2022–02137 Filed 2–2–22; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 734, 736, 744, and 774 

[Docket No. 220127–0035] 

RIN 0694–AI61 

Foreign-Direct Product Rules: 

Organization, Clarification, and 

Correction 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is clarifying, reorganizing, 

and making minor corrections to the 

provisions of the foreign-direct product 

(FDP) rules. Before this final rule, the 

FDP rules appeared in parts 736 and 744 

of the Export Administration 

Regulations (EAR); now, the rules are 

consolidated in part 734 of the EAR. 

These revisions clarify the applicability 

of the FDP rules and make one 

correction applicable to the FDP rules as 

to the term ‘‘U.S.-origin technology and 

software.’’ 

DATES: The effective date of this rule is 

February 3, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Sharron Cook, 202–482–2440, 

Sharron.Cook@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Consolidation and Organization of the 

Foreign-Direct Product (FDP) Rules 

This final rule consolidates the FDP 

rules in § 734.9 of the Export 

Administration Regulations (EAR). 

Before publication of this rule, the FDP 

rules were found in § 736.2(b)(3) 

(General Prohibition 3) and footnote 1 to 

supplement no. 4 to part 744 (the Entity 

List). Placing the FDP rules in part 734 

(Scope of the EAR) clarifies that they are 

used to determine if a foreign-produced 

item is subject to, and thus within the 

scope of, the EAR. To further clarify the 

FPD rules, this rule moves the license 

requirement, license review policy, and 

license exception applicability text for 

listed entities from the Entity List’s 

footnote 1 to supplement no. 4 to part 

744 to § 744.11(a), where the overall 

license requirements pertaining to listed 

entities are located. 

Organization of the FDP Rules 

In new § 734.9, this rule separates the 

FDP provisions into four paragraphs: 

The National Security FDP rule, the 

9x515 FDP rule, the ‘‘600 series’’ FDP 

rule, and the Entity List FDP rule. While 

the product scope of the first three FDP 

rules is relatively similar in format, the 

country scopes of each rule are 

different. This reorganization and 

naming of the FDP rules does not make 

substantive changes to the FDP rules. 

Rather, it facilitates reference to and 

compliance with the rules. 

The original national security-focused 

FDP rule is now the National Security 

FDP rule. The provisions of the 9x515 

FDP rule and the ‘‘600 series’’ FDP rule 

are reorganized into separate paragraphs 

with a description of the product scope 

followed by the country scope. The 

provisions of the Entity List FDP rule 

are organized with a description of the 


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Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Rules and Regulations 6023 

product scope followed by the 

applicable end-user scope. 

This rule moves a definition of the 

term ‘major component’ from a note to 

footnote 1 to Supplement no. 4 to part 

744 of the EAR to a new definition 

paragraph in § 734.9(a) of the EAR. In 

making this change, this rule clarifies 

that the definition of the term ‘major 

component’ applies to all the FDP rules, 

and not just the Entity List FDP rule. A 

‘major component’ of a plant located 

outside the United States for all FDP 

rules is ‘‘equipment’’ that is essential to 

the ‘‘production’’ of an item, including 

testing ‘‘equipment.’’ As noted in the 

August 20, 2020, final rule that 

amended the Entity List FPD rule (see 

85 FR 51596, at 51601), any equipment 

that is involved in any of the production 

stages is considered essential. As a 

conforming edit, to indicate that the 

term is defined in that section, BIS 

added single quotation marks around 

the term ‘major component’ wherever it 

appears in § 734.9. 

Clarification of the FDP Rules 

This rule further clarifies the FDP 

rules by adding double quotation marks 

around terms that are defined in part 

772 of the EAR, e.g., direct product, 

technology, software, and equipment. 

BIS has received requests for additional 

guidance about determining the scope of 

production equipment in relation to the 

Entity List FDP rule and clarifying that 

these are defined terms should help the 

public better understand its obligations. 

In addition, this rule clarifies in 

§ 736.2(b)(3) of the EAR (General 

Prohibition Three), that foreign-direct 

products subject to the EAR are not 

necessarily subject to a license 

requirement and that license 

requirements must be determined based 

on an assessment of the classification, 

destination, end user, and end use of the 

items. 

Lastly, this rule clarifies the 

circumstances under which the ‘‘600 

series’’ FDP rule applies to items 

described in Export Control 

Classification Number (ECCN) 0A919. 

The text of ECCN 0A919 states that it 

includes the foreign direct product of 

‘‘600 series’’ technology or software. 

However, before this rule, the text of 

General Prohibition Three did not 

explicitly include ECCN 0A919 items 

when describing other aspects of 

determining applicability of the ‘‘600 

series’’ FDP rule. This rule also replaces 

the cross reference in ECCN 0A919.a.3 

as a conforming edit. 

Correction: U.S.-Origin ‘‘technology’’ 

and ‘‘software’’ 

In this rule, BIS corrects an earlier 

revision to General Prohibition Three to 

clarify when the FDP rules are intended 

to apply to the direct product of U.S.- 

origin technology or software. On May 

19, 2020, BIS published a rule entitled 

‘‘Export Administration Regulations: 

Amendments to General Prohibition 

Three (Foreign-Direct Product Rule) and 

the Entity List’’ (85 FR 29849). This rule 

removed the word ‘‘U.S.’’ from the 

heading of § 736.2(b)(3) (Foreign-Direct 

Product rule) where it had been placed 

in front of the words ‘‘technology and 

software.’’ This revision was made 

because the scope of the heading did not 

align with the scope of the Entity List 

foreign-direct product rule being added 

to the EAR on that date. The Entity List 

FDP rule in § 734.9(e), and as it 

previously appeared in footnote 1 to 

supplement no. 4 to part 744 of the 

EAR, applies to the FDP of technology 

or software that is subject to the EAR, 

but that is not necessarily technology or 

software of U.S. origin. The preamble of 

the May 19 rule that added the Entity 

List FDP rule clearly stated that BIS did 

not intend to change the scope of the 

other FDP rules, noting General 

Prohibition Three: ‘‘continues to apply 

to foreign-produced items controlled for 

national security reasons, 9x515 items, 

or ‘‘600 series’’ items and has three 

criteria: The reason for control or 

classification of the U.S. ‘‘technology’’ 

or ‘‘software’’; the foreign-produced 

item’s reason for control or 

classification; and the destination 

country of the foreign-produced item[.]’’ 

The May 19 rule stated that it 

‘‘maintains the scope and criteria of 

General Prohibition Three[.]’’ 

Nevertheless, by removing the term 

‘‘U.S.’’ from General Prohibition Three’s 

heading, BIS may have inadvertently 

caused confusion as to whether the 

revision was intended to change the 

product scope of all FDP rules, because 

the term ‘‘U.S.’’ had only been in the 

heading and not in the other FDP rules’ 

product scope descriptions. For this 

reason, this rule clarifies the EAR by 

specifically stating in each of the FDP 

rules that the application of the rule 

relates to U.S.-origin technology or 

software. 

Export Control Reform Act of 2018 

On August 13, 2018, the President 

signed into law the John S. McCain 

National Defense Authorization Act for 

Fiscal Year 2019, which included ECRA 

(codified, as amended, at 50 U.S.C. 

Sections 4801–4852). ECRA provides 

the legal basis for BIS’s principal 

authorities and serves as the authority 

under which BIS issues this rule. 

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 and distributive impacts and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits and 

of reducing costs, harmonizing rules, 

and promoting flexibility. 

This final rule has not been 

designated a ‘‘significant regulatory 

action’’ under Executive Order 12866. 

This rule does not contain policies with 

Federalism implications as that term is 

defined under Executive Order 13132. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person 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 final rule 

does not intentionally affect any PRA 

collection burden, because this intent of 

this final rule is to organize, clarify, and 

correct the rules pertaining to the 

foreign direct product and in doing so 

BIS only expects minimal, if any, 

change to the burden hours associated 

with license requirements. The 

following is a list of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA) collection approvals that 

may be encountered if a license is 

required, and the estimated average 

burden hours for each: 

• 0694–0088, ‘‘Simplified Network 

Application Processing System,’’ and 

carries a burden-hour estimate of 29.6 

minutes for a manual or electronic 

submission; 

• 0694–0137 ‘‘License Exceptions and 

Exclusions,’’ which carries a burdenhour estimate average of 1.5 hours per 

submission (Note: Submissions for 

License Exceptions are rarely required); 

• 0694–0096 ‘‘Five Year Records 

Retention Period,’’ which carries a 

burden-hour estimate of less than 1 

minute; and 

• 0607–0152 ‘‘Automated Export 

System (AES) Program,’’ which carries a 

burden-hour estimate of 3 minutes per 

electronic submission. 

Any comments regarding these 

collections of information, including 


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6024 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Rules and Regulations 

suggestions for reducing the burden, 

may be submitted online at https://

www.reginfo.gov/public/do/PRAMain. 

Find the particular information 

collection by using the search function 

and entering either the title of the 

collection or the OMB Control Number. 

3. Pursuant to Section 1762 of the 

Export Control Reform Act of 2018 

(ECRA) (50 U.S.C. 4821), this action is 

exempt from the Administrative 

Procedure Act (APA) (5 U.S.C. 553) 

requirements for notice of proposed 

rulemaking, opportunity for public 

participation and delay in effective date. 

List of Subjects 

15 CFR Part 734 

Administrative practice and 

procedure, Exports, Inventions and 

patents, Research, Science and 

technology. 

15 CFR Part 736 

Exports. 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Part 774 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

For the reasons discussed in the 

preamble, the Bureau of Industry and 

Security of the Department of 

Commerce amends 15 CFR parts 734, 

736, 744, and 774 as follows: 

PART 734—SCOPE OF THE EXPORT 

ADMINISTRATION REGULATIONS 

■ 1. The authority citation for part 734 

is revised to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 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. 

13637, 78 FR 16129, 3 CFR, 2014 Comp., p. 

223; Notice of November 10, 2021, 86 FR 

62891 (November 12, 2021). 

■ 2. Add § 734.9 to read as follows: 

§ 734.9 Foreign-Direct Product (FDP) 

Rules. 

Foreign-produced items located 

outside the United States are subject to 

the EAR when they are a ‘‘direct 

product’’ of specified ‘‘technology’’ or 

‘‘software,’’ or are produced by a plant 

or ‘major component’ of a plant that 

itself is a ‘‘direct product’’ of specified 

‘‘technology’’ or ‘‘software.’’ If a foreignproduced item is subject to the EAR, 

then you should separately determine 

the license requirements that apply to 

that foreign-produced item (e.g., by 

assessing the item classification, 

destination, end-use, and end-user in 

the relevant transaction). Not all 

transactions involving foreign-produced 

items that are subject to the EAR require 

a license. Those transactions that do 

require a license may be eligible for a 

license exception. 

(a) Definitions. The terms defined in 

this paragraph are specific to § 734.9 of 

the EAR. These terms are indicated by 

single quotation marks. Terms that are 

in double quotation marks are defined 

in part 772 of the EAR. 

Major Component: A major 

component of a plant located outside 

the United States means ‘‘equipment’’ 

that is essential to the ‘‘production’’ of 

an item, including testing ‘‘equipment.’’ 

(b) National Security FDP rule. A 

foreign-produced item is subject to the 

EAR if it meets both the product scope 

in paragraph (b)(1) of this section and 

the country scope in paragraph (b)(2) of 

this section. 

(1) Product scope of National Security 

FDP rule. The product scope applies if 

a foreign-produced item meets the 

conditions of either paragraph (b)(1)(i) 

or (ii) of this section. 

(i) ‘‘Direct product’’ of ‘‘technology’’ 

or ‘‘software.’’ A foreign-produced item 

meets the product scope of this 

paragraph if it meets both of the 

following conditions: 

(A) The foreign-produced item is the 

‘‘direct product’’ of U.S.-origin 

‘‘technology’’ or ‘‘software’’ that 

requires a written assurance as a 

supporting document for a license, as 

defined in paragraph (o)(3)(i) of 

supplement no. 2 to part 748 of the 

EAR, or as a precondition for the use of 

License Exception TSR at § 740.6 of the 

EAR; and 

(B) The foreign-produced item is 

subject to national security controls as 

designated in the applicable ECCN of 

the Commerce Control List in part 774 

of the EAR. 

(ii) ‘‘Direct product’’ of a complete 

plant or ‘major component’ of a plant. 

A foreign-produced item meets the 

product scope of this paragraph if it 

meets both of the following conditions: 

(A) The foreign-produced item is a 

‘‘direct product’’ of a complete plant or 

‘major component’ of a plant that itself 

is the ‘‘direct product’’ of U.S.-origin 

‘‘technology’’ that requires a written 

assurance as a supporting document for 

a license or as a precondition for the use 

of License Exception TSR in § 740.6 of 

the EAR; and 

(B) The foreign-produced item is 

subject to national security controls as 

designated on the applicable ECCN of 

the Commerce Control List at part 774 

of the EAR. 

(2) Country scope of National Security 

FDP rule. A foreign-produced item 

meets the country scope of this 

paragraph if its destination is listed in 

Country Group D:1, E:1, or E:2 (See 

supplement no.1 to part 740 of the 

EAR). 

(c) 9x515 FDP rule. A foreignproduced item is subject to the EAR if 

it meets both the product scope in 

paragraph (c)(1) of this section and the 

country scope in paragraph (c)(2) of this 

section. 

(1) Product scope of 9x515 FDP rule. 

The product scope applies if a foreignproduced item meets the conditions of 

either paragraph (c)(1)(i) or (ii) of this 

section. 

(i) ‘‘Direct product’’ of ‘‘technology’’ 

or ‘‘software.’’ A foreign-produced item 

meets the product scope of this 

paragraph if it meets both of the 

following conditions: 

(A) The foreign-produced item is the 

‘‘direct product’’ of U.S.-origin 

‘‘technology’’ or ‘‘software’’ that is 

specified in ECCN 9D515 or 9E515; and 

(B) The foreign-produced item is 

specified in a 9x515 ECCN. 

(ii) ‘‘Direct product’’ of a complete 

plant or ‘major component’ of a plant. 

A foreign-produced item meets the 

product scope of this paragraph if it 

meets both of the following conditions: 

(A) The foreign-produced item is a 

‘‘direct product’’ of a complete plant or 

any ‘major component’ of a plant that 

itself is the ‘‘direct product’’ of U.S.- 

origin ‘‘technology’’ specified in ECCN 

9E515; and 

(B) The foreign-produced item is 

specified in a 9x515 ECCN. 

(2) Country scope of 9x515 FDP rule. 

A foreign produced item meets the 

country scope of this paragraph if its 

destination is listed in Country Group 

D:5, E:1, or E:2 (see supplement no. 1 to 

part 740 of the EAR). 

(d) ‘‘600 series’’ FDP rule. A foreignproduced item is subject to the EAR if 

it meets both the product scope in 

paragraph (d)(1) of this section and the 

country scope in paragraph (d)(2) of this 

section. 

NOTE 1 TO PARAGRAPH (D) INTRODUCTORY

TEXT: As described in the CCL, ECCN 0A919 

is included in this paragraph because it 

includes the ‘‘direct product’’ of ‘‘600 series’’ 

‘‘technology’’ or ‘‘software’’. 

(1) Product scope of ‘‘600 series’’ FDP 

rule. The product scope applies if a 

foreign-produced item meets the 

conditions of either paragraph (d)(1)(i) 

or (ii) of this section. 

(i) ‘‘Direct product’’ of ‘‘technology’’ 

or ‘‘software.’’ A foreign-produced item 


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Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Rules and Regulations 6025 

meets the product scope of this 

paragraph if it meets both of the 

following conditions: 

(A) The foreign-produced item is the 

‘‘direct product’’ of U.S.-origin 

‘‘technology’’ or ‘‘software’’ that is 

specified in a ‘‘600 series’’ ECCN; and 

(B) The foreign-produced item is 

specified in a ‘‘600 series’’ ECCN or 

ECCN 0A919. 

(ii) ‘‘Direct product’’ of a complete 

plant or ‘major component’ of a plant. 

Foreign-produced items meet the 

product scope of this paragraph if they 

meet both of the following conditions: 

(A) The foreign-produced item is the 

‘‘direct product’’ of a complete plant or 

‘major component’ of a plant that itself 

is the ‘‘direct product’’ of U.S.-origin 

‘‘technology’’ that is specified in a ‘‘600 

series’’ ECCN; and 

(B) The foreign produced item is 

specified in a ‘‘600 series’’ ECCN. 

(2) Country scope of ‘‘600 series’’ FDP 

rule. A foreign-produced item meets the 

country scope of this paragraph if it is 

destined to a country listed in Country 

Group D:1, D:3, D:4, D:5, E:1, or E:2 (see 

supplement no.1 to part 740 of the 

EAR). 

(e) Entity List FDP rule. A foreignproduced item is subject to the EAR if 

it meets both the product scope in 

paragraph (e)(1) of this section and the 

end-user scope in paragraph (e)(2) of 

this section. See § 744.11(a) of the EAR 

for license requirements, license review 

policy, and license exceptions 

applicable to foreign-produced items 

that are subject to the EAR pursuant to 

this paragraph. 

(1) Product Scope of Entity List FDP 

rule. The product scope applies if a 

foreign-produced item meets the 

conditions of either paragraph (e)(1)(i) 

or (ii) of this section. 

(i) ‘‘Direct product’’ of ‘‘technology’’ 

or ‘‘software.’’ A foreign-produced item 

meets the product scope of this 

paragraph if the foreign-produced item 

is a ‘‘direct product’’ of ‘‘technology’’ or 

‘‘software’’ subject to the EAR and 

specified in ECCN 3D001, 3D991, 

3E001, 3E002, 3E003, 3E991, 4D001, 

4D993, 4D994, 4E001, 4E992, 4E993, 

5D001, 5D991, 5E001, or 5E991 of the 

Commerce Control List (CCL) in 

supplement no. 1 to part 774 of the 

EAR; or 

(ii) ‘‘Direct product’’ of a complete 

plant or ‘major component’ of a plant. 

A foreign-produced item meets the 

product scope of this paragraph if the 

foreign-produced item is produced by 

any plant or ‘major component’ of a 

plant that is located outside the United 

States, when the plant or ‘major 

component’ of a plant, whether made in 

the U.S. or a foreign country, itself is a 

‘‘direct product’’ of ‘‘technology’’ or 

‘‘software’’ subject to the EAR that is 

specified in ECCN 3D001, 3D991, 

3E001, 3E002, 3E003, 3E991, 4D001, 

4D993, 4D994, 4E001, 4E992, 4E993, 

5D001, 5D991, 5E001, or 5E991 of the 

CCL. 

NOTE 2 TO PARAGRAPH (E)(1): A foreignproduced item includes any foreignproduced wafer whether finished or 

unfinished. 

(2) End-user scope of the Entity List 

FDP rule. A foreign-produced item 

meets the end-user scope of this 

paragraph if there is ‘‘knowledge’’ that: 

(i) Activities involving Footnote 1 

designated entities. The foreignproduced item will be incorporated 

into, or will be used in the ‘‘production’’ 

or ‘‘development’’ of any ‘‘part,’’ 

‘‘component,’’ or ‘‘equipment’’ 

produced, purchased, or ordered by any 

entity with a footnote 1 designation in 

the license requirement column of the 

Entity List in Supplement No. 4 to part 

744 of the EAR; or 

(ii) Footnote 1 designated entities as 

transaction parties. Any entity with a 

footnote 1 designation in the license 

requirement column of the Entity List in 

Supplement No. 4 to part 744 of the 

EAR is a party to any transaction 

involving the foreign-produced item, 

e.g., as a ‘‘purchaser,’’ ‘‘intermediate 

consignee,’’ ‘‘ultimate consignee,’’ or 

‘‘end-user.’’ 

PART 736—GENERAL PROHOBITIONS 

■ 3. The authority citation for part 736 

continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 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 November 10, 2021, 86 FR 

62891 (November 12, 2021); Notice of May 6, 

2021, 86 FR 26793 (May 10, 2021). 

■ 4. Section 736.2 is amended by 

revising paragraph (b)(3) to read as 

follows: 

§ 736.2 General prohibitions and 

determination of applicability. 

* * * * * 

(b) * * * 

(3) General Prohibition Three— 

Foreign-direct product (FDP) rules—(i) 

You may not, without a license or 

license exception, export from abroad, 

reexport, or transfer (in-country) 

foreign-‘‘direct products’’ subject to the 

EAR pursuant to § 734.9 if such items 

are subject to a license requirement in 

part 736, 742, 744, 746, or 764 of the 

EAR. 

(ii) Each license exception described 

in part 740 of the EAR supersedes 

General Prohibition Three if all terms 

and conditions of a given license 

exception are met and none of the 

restrictions of § 740.2 or 744.11(a) 

apply. 

PART 744—CONTROL POLICY: ENDUSER AND END-USER BASED 

■ 5. The authority citation for part 744 

continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 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; 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. 13099, 63 FR 

45167, 3 CFR, 1998 Comp., p. 208; E.O. 

13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 

783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 

Comp., p. 786; Notice of September 15, 2021, 

86 FR 52069 (September 17, 2021); Notice of 

November 10, 2021, 86 FR 62891 (November 

12, 2021). 

■ 6. Section 744.11 is amended by 

revising paragraph (a) to read as follows: 

§ 744.11 License requirements that apply 

to entities acting contrary to the national 

security or foreign policy interests of the 

United States. 

* * * * * 

(a) License requirement, availability of 

license exceptions, and license 

application review policy. (1) A license 

is required, to the extent specified on 

the Entity List, to export, reexport, or 

transfer (in-country) any item subject to 

the EAR when an entity that is listed on 

the Entity List is a party to the 

transaction as described in § 748.5(c) 

through (f). License exceptions may not 

be used unless authorized in the Entity 

List entry for the entity that is party to 

the transaction. Applications for 

licenses required by this section will be 

evaluated as stated in the Entity List 

entry for the entity that is party to the 

transaction, in addition to any other 

applicable review policy stated 

elsewhere in the EAR. 

(2) Entity List Foreign-Direct Product 

(FDP) license requirements, review 

policy, and license exceptions. You may 

not, without a license or license 

exception, reexport, export from abroad, 

or transfer (in-country) any foreignproduced item subject to the EAR 

pursuant to § 734.9(e) of the EAR to any 

end user described in § 734.9(e)(2) of the 

EAR. All license exceptions described 

in part 740 of the EAR are available for 

foreign-produced items that are subject 

to this license requirement if all terms 

and conditions of the applicable license 


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6026 Federal Register / Vol. 87, No. 23 / Thursday, February 3, 2022 / Rules and Regulations 

exception are met and the restrictions in 

§ 740.2 do not apply. The sophistication 

and capabilities of technology in items 

is a factor in license application review; 

license applications for foreignproduced items subject to a license 

requirement by this paragraph (a)(2) that 

are capable of supporting the 

‘‘development’’ or ‘‘production’’ of 

telecom systems, equipment and 

devices below the 5G level (e.g., 4G, 3G) 

will be reviewed on a case-by-case basis. 

* * * * * 

■ 7. Supplement No. 4 to part 744 is 

amended by: 

■ a. Removing the phrase ‘‘see 

§§ 736.2(b)(3)(vi),1’’ wherever it appears 

and adding in its place ‘‘see 

§§ 734.9(e),1’’ ; and 

■ b. Revising footnote 1. 

The revision reads as follows: 

Supplement No. 4 to Part 744—Entity 

List 

* * * * * 1For this entity, see § 734.9(e) of the EAR 

for foreign-produced items that are subject to 

the EAR and § 744.11 of the EAR for related 

license requirements, license review policy, 

and applicable license exceptions. 

* * * * * 

PART 774—THE COMMERCE 

CONTROL LIST 

■ 8. The authority citation for part 774 

continues to read as follows: 

Authority: 50 U.S.C. 4801–4852; 50 U.S.C. 

4601 et seq.; 50 U.S.C. 1701 et seq.; 10 U.S.C. 

8720; 10 U.S.C. 8730(e); 22 U.S.C. 287c, 22 

U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 

2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 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. 

■ 9. In supplement no. 1 to part 774, 

Category 0, ECCN 0A919 is revised to 

read as follows: 

Supplement No. 1 to Part 774—The 

Commerce Control List 

* * * * * 

0A919 ‘‘Military commodities’’ located and 

produced outside the United States as 

follows (see list of items controlled) 

License Requirements 

Reasons for Control: RS, AT 

Control(s) 

Country Chart 

(see Supp. No. 1 

to part 738) 

RS applies to entire 

entry.

RS Column 1, See 

§ 742.6(a)(3) for license requirements. 

AT applies to entire 

entry.

AT Column 1. 

List Based License Exceptions (See Part 740 

for a description of all license exceptions) 

LVS: N/A 

GBS: N/A 

List of Items Controlled 

Related Controls: (1) ‘‘Military 

commodities’’ are subject to the export 

licensing jurisdiction of the Department of 

State if they incorporate items that are 

subject to the International Traffic in Arms 

Regulations (ITAR) (22 CFR parts 120–130). 

(2) ‘‘Military commodities’’ described in this 

paragraph are subject to the export licensing 

jurisdiction of the Department of State if such 

commodities are described on the U.S. 

Munitions List (22 CFR part 121) and are in 

the United States. (3) The furnishing of 

assistance (including training) to foreign 

persons, whether in the United States or 

abroad, in the design, development, 

engineering, manufacture, production, 

assembly, testing, repair, maintenance, 

modification, operation, demilitarization, 

destruction, processing, or use of defense 

articles that are subject to the ITAR; or the 

furnishing to foreign persons of any technical 

data controlled under 22 CFR 121.1 whether 

in the United States or abroad are under the 

licensing jurisdiction of the Department of 

State. (4) Brokering activities (as defined in 

22 CFR 129) of ‘‘military commodities’’ that 

are subject to the ITAR are under the 

licensing jurisdiction of the Department of 

State. 

Related Definitions: ‘‘Military commodity’’ 

or ‘‘military commodities’’ means an article, 

material or supply that is described on the 

U.S. Munitions List (22 CFR part 121) or on 

the Munitions List that is published by the 

Wassenaar Arrangement on Export Controls 

for Conventional Arms and Dual-Use Goods 

and Technologies (i.e., the Wassenaar 

Arrangement Munitions List (WAML)), but 

does not include software, technology, any 

item listed in any ECCN for which the last 

three numerals are 018, or any item in the 

‘‘600 series.’’ 

Items: 

a. ‘‘Military commodities’’ produced and 

located outside the United States that are not 

subject to the International Traffic in Arms 

Regulations (22 CFR parts 120–130) and 

having any of the following characteristics: 

a.1. Incorporate more than a de minimis 

amount of U.S.-origin controlled content 

classified under ECCNs 6A002, 6A003, or 

6A993.a (having a maximum frame rate equal 

to or less than 9 Hz and thus meeting the 

criterion of Note 3.a to 6A003.b.4); 

a.2. Incorporate more than a de minimis 

amount of U.S.-origin ‘‘600 series’’ controlled 

content (see § 734.4 of the EAR); or 

a.3. Are direct products of U.S.-origin ‘‘600 

series’’ technology or software (see § 734.9(d) 

of the EAR). 

b. [Reserved] 

* * * * * 

Thea D. Rozman Kendler, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2022–02302 Filed 2–2–22; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket Number USCG–2021–0873] 

RIN 1625–AA08 

Special Local Regulations; Sector Ohio 

Valley Annual and Recurring Special 

Local Regulations, Update 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is amending 

and updating its special local 

regulations for recurring marine 

parades, regattas, and other events that 

take place in the Coast Guard Sector 

Ohio Valley area of responsibility 

(AOR). This rule informs the public of 

regularly scheduled events that require 

additional safety measures through the 

establishing of a special local regulation. 

Through this rulemaking the current list 

of recurring special local regulations is 

updated with revisions, additional 

events, and removal of events that no 

longer take place in Sector Ohio Valley’s 

AOR. When these special local 

regulations are enforced, certain 

restrictions are placed on marine traffic 

in specified areas. 

DATES: This rule is effective February 3, 

2022. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to https://

www.regulations.gov, type USCG–2021– 

0873 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rule. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Petty Officer Christopher Roble, 

Sector Ohio Valley, U.S. Coast Guard; 

telephone (502) 779–5336, email 

SECOHV-WWM@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

COTP Captain of the Port Sector Ohio 

Valley 

DHS Department of Homeland Security 

E.O. Executive order 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

The Captain of the Port Sector Ohio 

Valley (COTP) is establishing, 


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