55608 Federal Register / Vol. 79, No. 180 / Wednesday, September 17, 2014 / Rules and Regulations 

13′59′′ W.; to lat. 27°44′46′′ N., long. 81° 

11′39′′ W.; to lat. 27°35′01′′ N., long. 81° 

08′59′′ W.; to lat. 27°32′31′′ N., long. 81° 

07′23′′ W.; to lat. 27°29′31′′ N., long. 81° 

05′27′′ W.; to lat. 27°21′01′′ N., long. 80° 

59′59′′ W.; to lat. 27°16′46′′ N., long. 81° 

05′59′′ W.; to lat. 27°24′46′′ N., long. 81° 

10′59′′ W.; to lat. 27°30′46′′ N., long. 81° 

17′49′′ W.; to lat. 27°32′33′′ N., long. 81° 

21′39′′ W.; to lat. 27°42′01′′ N., long. 81° 

25′19′′ W.; to lat. 27°55′01′′ N., long. 81° 

25′19′′ W.; to the point of beginning. 

R–2901N Avon Park, FL [Amended] 

By removing the current boundaries and 

designated altitudes and inserting the 

following: 

Boundaries. Beginning at lat. 27°32′33′′ N., 

long. 81°21′39′′ W.; to lat. 27°32′37′′ N., long. 

81°16′46′′ W.; to lat. 27°29′01′′ N., long. 

81°13′29′′ W.; to lat. 27°32′31′′ N., long. 

81°07′23′′ W.; to lat. 27°29′31′′ N., long. 

81°05′27′′ W.; to lat. 27°21′01′′ N., long. 

80°59′59′′ W.; to lat. 27°16′46′′ N., long. 

81°05′59′′ W.; to lat. 27°24′46′′ N., long. 

81°10′59′′ W.; to lat. 27°30′46′′ N., long. 

81°17′49′′ W.; to the point of beginning. 

Designated altitudes. 5,000 feet MSL to but 

not including 14,000 feet MSL north of a line 

from lat. 27°24′46′′ N., long. 81°10′59′′ W.; to 

lat. 27°29′31′′ N., long. 81°05′27′′ W.; 4,000 

feet MSL to but not including 14,000 feet 

MSL south of that line. 

Issued in Washington, DC, on September 

11, 2014. 

Ellen Crum, 

Acting Manager, Airspace Policy and 

Regulations Group. 

[FR Doc. 2014–22231 Filed 9–16–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 744 and 746 

[Docket No. 1408114668–4758–01] 

RIN 0694–AG28 

Russian Sanctions: Addition of 

Persons to the Entity List and 

Restrictions on Certain Military End 

Uses and Military End Users 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Export Administration Regulations 

(EAR) to impose additional sanctions 

implementing U.S. policy toward 

Russia. Specifically, in this rule, the 

Bureau of Industry and Security (BIS) 

amends the EAR by adding ten entries 

to the Entity List. The persons who are 

added to the Entity List have been 

determined by the U.S. Government to 

be acting contrary to the national 

security or foreign policy interests of the 

United States. These persons will be 

listed on the Entity List under the 

destination of Russia. BIS is also 

amending the EAR to impose license 

requirements for items destined to 

Russia when those items are intended 

for a military end use or military end 

user. 

DATES: Effective date: This rule is 

effective September 17, 2014. 

FOR FURTHER INFORMATION CONTACT: For 

the Entity List-related changes contact 

the Chair, End-User Review Committee, 

Office of the Assistant Secretary, Export 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–5991, Fax: (202) 482– 

3911, Email: ERC@bis.doc.gov. 

For the changes for Restrictions on 

Certain Military End Uses and Military 

End Users, contact Eileen Albanese, 

Director, Office of National Security and 

Technology Transfer Controls, Bureau of 

Industry and Security, Department of 

Commerce, Phone: (202) 482–0092, Fax: 

(202) 482–482–3355, Email: rpd2@

bis.doc.gov. For emails, include 

‘‘Russia’’ in the subject line. 

SUPPLEMENTARY INFORMATION: 

Background 

This final rule amends the Export 

Administration Regulations (EAR) to 

impose additional sanctions 

implementing U.S. policy toward 

Russia. Specifically, in this rule the 

Bureau of Industry and Security (BIS) 

amends the EAR by adding ten persons 

to the Entity List. The persons who are 

added to the Entity List have been 

determined by the U.S. Government to 

be acting contrary to the national 

security or foreign policy interests of the 

United States. These persons will be 

listed on the Entity List under the 

destination of Russia. BIS is also 

amending the EAR to impose license 

requirements for items destined to 

Russia when those items are intended 

for a military end use or military end 

user. 

Entity List 

The Entity List (Supplement No. 4 to 

Part 744) notifies the public about 

entities that have engaged in activities 

that could result in an increased risk of 

the diversion of exported, reexported or 

transferred (in-country) items to 

weapons of mass destruction (WMD) 

programs, activities sanctioned by the 

State Department and activities contrary 

to U.S. national security or foreign 

policy interests. Certain exports, 

reexports, and transfers (in-country) to 

entities identified on the Entity List 

require licenses from BIS and are 

usually subject to a policy of denial. The 

availability of license exceptions in 

such transactions is very limited. The 

license review policy for each entity is 

identified in the license review policy 

column on the Entity List and the 

availability of license exceptions is 

noted in the Federal Register notices 

adding persons to the Entity List. BIS 

places entities on the Entity List based 

on certain sections of part 744 (Control 

Policy: End-User and End-Use Based) of 

the EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from, or other modifications to 

the Entity List. The ERC makes all 

decisions to add an entry to the Entity 

List by majority vote and all decisions 

to remove or modify an entry by 

unanimous vote. The Departments 

represented on the ERC approved these 

changes to the Entity List. 

Addition to the Entity List in this rule 

This rule adds ten persons to the 

Entity List on the basis of § 744.11 

(License requirements that apply to 

entities acting contrary to the national 

security or foreign policy interests of the 

United States) of the EAR. Under 

§ 744.11(b) (Criteria for revising the 

Entity List), persons for whom there is 

reasonable cause to believe, based on 

specific and articulable facts, have been 

involved, are involved, or pose a 

significant risk of being or becoming 

involved in, activities that are contrary 

to the national security or foreign policy 

interests of the United States and those 

acting on behalf of such persons may be 

added to the Entity List. The persons 

being added to the Entity List have been 

determined to be involved in activities 

that are contrary to the national security 

or foreign policy interests of the United 

States. 

Entity Additions Consistent With 

Executive Order 13661 

Five entities are added based on 

activities that are described in Executive 

Order 13661 (79 FR 15533), Blocking 

Property of Additional Persons 

Contributing to the Situation in Ukraine, 

issued by the President on March 16, 

2014. This Order expanded the scope of 

the national emergency declared in 

Executive Order 13660, finding that the 

actions and policies of the Government 

of the Russian Federation with respect 

to Ukraine—including the deployment 

of Russian Federation military forces in 

Crimea (Occupied)—undermine 

democratic processes and institutions in 

Ukraine; threaten its peace, security, 


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stability, sovereignty, and territorial 

integrity; and contribute to the 

misappropriation of its assets, and 

thereby constitute an unusual and 

extraordinary threat to the national 

security and foreign policy of the United 

States. 

Specifically, Executive Order 13661 

includes a directive that all property 

and interests in property that are in the 

United States, that hereafter come 

within the United States, or that are or 

thereafter come within the possession or 

control of any United States person 

(including any foreign branch) of the 

following persons are blocked and may 

not be transferred, paid, exported, 

withdrawn, or otherwise dealt in: 

Persons determined by the Secretary of 

the Treasury to be operating in the 

defense or related materiel sector in the 

Russian Federation. Under Section 8 of 

the Order, all agencies of the United 

States Government are directed to take 

all appropriate measures within their 

authority to carry out the provisions of 

the Order. The Department of the 

Treasury’s Office of Foreign Assets 

Control, pursuant to Executive Order 

13661 and on behalf of the Secretary of 

the Treasury, has designated the 

following five persons as operating in 

the defense or related materiel sector of 

the Russian Federation: Almaz-Antey 

Air Defense Concern Main System 

Design Bureau, JSC; Tikhomirov 

Scientific Research Institute of 

Instrument Design, JSC; Kalinin 

Machine Plant, JSC; Mytishchinski 

Mashinostroitelny Zavod, OAO; and 

Dolgoprudny Research Production 

Enterprise, OAO. 

In conjunction with those 

designations, the Department of 

Commerce adds the five persons to the 

Entity List under this rule and imposes 

a license requirement for exports, 

reexports, or transfers (in-country) for 

all items subject to the EAR to those 

persons. This license requirement 

implements an appropriate measure 

within the authority of BIS to carry out 

the provisions of Executive Order 

13661. Almaz-Antey Air Defense 

Concern Main System Design Bureau, 

JSC is one of the world’s largest defense 

industry complexes, specializing in 

development of anti-air, anti-missile 

and space defense systems. Tikhomirov 

Scientific Research Institute of 

Instrument Design, JSC specializes in 

the development of weaponry control 

systems for fighter planes and mobile 

medium range anti-aircraft surface to air 

missile (SAM) defense vehicles. Kalinin 

Machine Plant, JSC designs and 

manufactures machines for military and 

civil applications. Mytishchinski 

Mashinostroitelny Zavod, OAO 

manufactures and supplies ordnance 

and accessories, including naval, 

aircraft, anti-aircraft and field artillery 

products. Dolgoprudny Research 

Production Enterprise, OAO develops 

and manufactures high-technology 

defense products. Therefore, pursuant to 

§ 744.11 of the EAR, the conduct of 

these five persons raises sufficient 

concern that prior review of exports, 

reexports, or transfers (in-country) of 

items subject to the EAR involving these 

five persons, and the possible 

imposition of license conditions or 

license denials on shipments to these 

persons, will enhance BIS’s ability to 

protect the foreign policy and national 

security interests of the United States. 

License applications for exports, 

reexports and transfers (in-country) to 

these persons will be reviewed with a 

presumption of denial. 

Entity Additions Consistent With 

Executive Order 13662 

In addition, five entities are added 

based on activities that are described in 

Executive Order 13662 (79 FR 16169), 

Blocking Property of Additional Persons 

Contributing to the Situation in Ukraine, 

issued by the President on March 20, 

2014. This Order expanded the scope of 

the national emergency declared in 

Executive Order 13660 of March 6, 2014 

and Executive Order 13661 of March 16, 

2014. Specifically, EO 13662 expanded 

the scope to include sectors of the 

Russian Federation economy as may be 

determined by the Secretary of the 

Treasury, in consultation with the 

Secretary of State, such as financial 

services, energy, metals and mining, 

engineering, and defense and related 

materiel. 

The Department of the Treasury’s 

Office of Foreign Assets Control, 

pursuant to Executive Order 13662 and 

on behalf of the Secretary of the 

Treasury, has designated the following 

five persons as operating in the energy 

sector of the Russian Federation. 

Gazprom, OAO has major business lines 

in geological exploration, production, 

transportation, storage, processing and 

sales of gas, gas condensate and oil, 

sales of gas as a vehicle fuel as well as 

generation and marketing of heat and 

electric power. Gazpromneft is a 

Russian oil company engaged primarily 

in oil and gas exploration and 

production, the sale and distribution of 

crude oil, and the production and sale 

of petroleum products. Lukoil, OAO is 

a company in Russia’s petroleum 

industry. Rosneft is a company in 

Russia’s petroleum industry whose 

activities include hydrocarbon 

exploration and production, upstream 

offshore projects, hydrocarbon refining, 

and crude oil, gas and product 

marketing in Russia and abroad. 

Surgutneftegas is a Russian oil and gas 

company. 

Therefore, BIS adds the following five 

Russian energy entities to the Entity List 

to impose a license requirement for the 

export, reexport or transfers (in-country) 

of all items subject to the EAR to those 

companies when the exporter, 

reexporter or transferor knows that the 

item will be used directly or indirectly 

in exploration for, or production of, oil 

or gas in Russian deepwater (greater 

than 500 feet) or Arctic offshore 

locations or shale formations in Russia, 

or are unable to determine whether the 

item will be used in such projects. 

License applications for such 

transactions will be reviewed with a 

presumption of denial when for use 

directly or indirectly for exploration or 

production from deepwater (greater than 

500 feet), Arctic offshore, or shale 

projects in Russia that have the 

potential to produce oil. This license 

requirement implements an appropriate 

measure within the authority of BIS to 

carry out the provisions of Executive 

Order 13662. 

The license requirements for all ten 

persons added to the Entity List apply 

to any transaction in which items are to 

be exported, reexported, or transferred 

(in-country) to any of the persons or in 

which such persons act as purchaser, 

intermediate consignee, ultimate 

consignee, or end-user. In addition, no 

license exceptions are available for 

exports, reexports, or transfers (incountry) to the persons being added to 

the Entity List in this rule. 

This final rule adds the following ten 

persons to the Entity List: 

Russia 

1. Almaz-Antey Air Defense Concern 

Main System Design Bureau, JSC (a.k.a., 

A.A. Raspletin Main System Design 

Bureau; a.k.a. Almaz-Antey GSKB; a.k.a. 

Almaz-Antey GSKB Imeni Academician 

A.A. Raspletin; a.k.a. Almaz-Antey 

MSDB; a.k.a. Almaz-Antey PVO ‘Air 

Defense’ Concern Lead Systems Design 

Bureau OAO ‘Open Joint-Stock 

Company’ Imeni Academician A.A. 

Raspletin; a.k.a. Golovnoye Sistemnoye 

Konstruktorskoye Byuro Open JointStock Company of Almaz-Antey PVO 

Concern Imeni Academician A.A. 

Raspletin; a.k.a. Joint Stock Company 

Almaz-Antey Air Defense Concern Main 

System Design Bureau, Named by 

Academician A.A. Raspletin; a.k.a. Joint 

Stock Company Almaz-Antey Air 

Defense Concern Main System Design 

Bureau; a.k.a. Almaz-Antey; a.k.a. JSC 

‘Almaz-Antey’ MSDB, f.k.a., Otkrytoe 

Aktsionernoe Obshchestvo Nauchno 


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Proizvodstvennoe Obedinenie Almaz 

Imeni Akademika A.A. Raspletina; a.k.a. 

GSKB) 

Address: 16–80, Leningradsky 

Prospect, Moscow 125190, Russia; 

2. Dolgoprudny Research Production 

Enterprise, OAO, (a.k.a. 

olgoprudnenskoye NPP OAO; a.k.a. 

Dolgoprudny; a.k.a. -Dolgoprudny 

Research Production Enterprise; a.k.a. 

Otkrytoe Aktsionernoe Obshchestvo 

Doigoprudnenskoe Nauchno 

Proizvodstvennoe Predpriyatie; a.k.a. 

OAO ‘Dolgoprudny Research 

Production Enterprise’) 

Address: 1 Pl. Sobina, Dolgoprudny, 

Moskovskaya obl. 141700, Russia; 

Alt Address: Proshchad Sobina 1, 

Dolgoprudny 141700, Russia; 

* 3. Gazprom, OAO (a.k.a. Open Joint 

Stock Company Gazprom; a.k.a. OAO 

Gazprom; a.k.a. Gazprom) 

Address: 16 Nametkina St., Moscow, 

Russia GSP–7, 117997, Russia; 

Alt Address: 16 Nametkina ul., 

Moscow 117991, Russia; 

* 4. Gazprom Neft (a.k.a. Gazprom 

Neft OAO; a.k.a. JSC Gazprom Neft; 

a.k.a. Open Joint-Stock Company 

Gazprom Neft; f.k.a. Sibirskaya 

Neftyanaya Kompaniya OAO) 

Address: Let. A. Galernaya, 5, ul, St. 

Petersburg 190000, Russia; 

Alt Address: Ul. Pochtamtskaya, 3–5, 

St. Petersburg 190000, Russia; 

Alt Address: 3–5 Pochtamtskaya St., 

St. Petersburg 190000, Russia; and 

Alt Address: 125 A. Profsoyuznaya 

Street, Moscow 117647, Russia; 

5. Kalinin Machine Plant, JSC, a.k.a., 

Kalinin Machine-Building Plant Open 

Joint-Stock Company; a.k.a. Kalinin 

Machinery Plant-BRD; a.k.a. 

Mashinostroitel’NYI Zavod IM. M.I. 

Kalinina, G. Yekaterinburg OAO; a.k.a. 

Mzik OAO; a.k.a. Open-End Joint-Stock 

Company ‘Kalinin Machinery Plant. 

YEKATERINBURG’; a.k.a. Otkrytoe 

Aktsionernoe Obshchestvo 

Mashinostroitelny Zavod 

IM.M.I.Kalinina, G.Ekaterinburg) 

Address: 18 prospekt Kosmonavtov, 

Ekaterinburg 620017, Sverdlovskaya 

obl., Russia; 

* 6. Lukoil, OAO (a.k.a. Lukoil; a.k.a. 

Lukoil Oil Company; a.k.a. Neftyanaya 

Kompaniya Lukoil OOO; a.k.a. NK 

Lukoil OAO) 

Address: 11 Sretenski boulevard, 

Moscow 101000, Russia; 

7. Mytishchinski Mashinostroitelny 

Zavod, OAO, (a.k.a., JSC Mytishchinski 

Machine-Building Plant; a.k.a. Otkrytoe 

Aktsionernoe Obshchestvo 

‘Mytishchinski Mashinostroitelny 

ZAVOD’) 

Address: 4 ul. Kolontsova Mytishchi, 

Mytishchinski Raion, Moskovskayaobl 

141009, Russia; 

Alt. Address: UL Koloncova, d.4, 

Mytishi, Moscow region 141009, Russia; 

* 8. Rosneft (a.k.a. Open Joint-Stock 

Company Rosneft Oil Company; a.k.a. 

OAO Rosneft Oil Company; a.k.a. Oil 

Company Rosneft; a.k.a. OJSC Rosneft 

Oil Company; a.k.a. Rosneft Oil 

Company) 

Address: 26/1, Sofiyskaya 

Embankment, 117997, Moscow, Russia; 

* 9. Surgutneftegas (a.k.a. Open Joint 

Stock Company Surgutneftegas; a.k.a. 

Otkrytoe Aktsionernoe Obshchestvo 

Surgutneftegaz; a.k.a. Surgutneftegas 

OAO; a.k.a. Surgutneftegas OJSC; a.k.a. 

Surgutneftegaz OAO) 

Address: ul. Grigoriya 

Kukuyevitskogo, 1, bld. 1, KhantyMansiysky Autonomous Okrug—Yugra, 

the city of Surgut, Tyumenskaya Oblast 

628415, Russia; 

Alt Address: korp. 1 1 Grigoriya 

Kukuevitskogo ul., Surgut, 

Tyumenskaya oblast 628404, Russia; 

Alt Address: Street Kukuevitskogo 1, 

Surgut, Tyumen Region 628415, Russia; 

10. Tikhomirov Scientific Research 

Institute of Instrument Design, JSC 

(a.k.a., JSC NIIP, f.k.a., Otkrytoe 

Aktsionernoe Obshchestvo Nauchno 

Issledovatelski Institut Priborostroeniya 

Imeni V.V. Tikhomirova; a.k.a. 

Scientific Research Institue of 

Instrument Design; a.k.a. JSC V. 

Tikhomirov Scientific Research Institute 

of Instrument Design.) 

Address: 3 Ul. Gagarina, Zhukovski, 

Moskovskaya Obl 140180, Russia; 

Alt. Address: Gagarin Str, 3, 

Zhukovsky 140180, Russia. 

Military End-Use Restriction 

It is the policy of the United States 

Government to facilitate U.S. exports for 

civilian end uses, while preventing 

exports that would enhance the military 

capability of certain destinations, 

thereby threatening the national security 

and foreign policy of the United States 

and its allies. In furtherance of this 

policy, BIS established a license 

requirement for certain items intended 

for ‘‘military end uses’’ in a final rule 

published June 19, 2007 (72 FR 33646). 

Specifically, that final rule established a 

control, based on knowledge of a 

‘‘military end use,’’ on exports and 

reexports of certain items on the 

Commerce Control List (CCL) that 

otherwise would not require a license to 

a specified destination. The ‘‘military 

end use’’ control initially applied to 

certain items exported, reexported or 

transferred (in country) to the People’s 

Republic of China. 

‘‘Military End Use’’ and ‘‘Military End 

User’’ License Requirements for Certain 

Items Destined for Russia 

In this rule, BIS amends § 744.21 of 

the EAR to apply ‘‘military end use’’ 

and ‘‘military end user’’ license 

requirements to Russia. Specifically, BIS 

amends § 744.21 by adding ‘‘or Russia’’ 

after ‘‘People’s Republic of China’’ and 

‘‘PRC’’, wherever those names appear, 

including in the heading of the section. 

Items subject to these license 

requirements are those listed in 

Supplement No. 2 to Part 744. This final 

rule also adds a paragraph (g) to define 

the term ‘‘military end user’’ for 

purposes of § 744.21. The definition of 

‘‘military end user’’ this rule adds to 

§ 744.21 is the same definition of 

‘‘military end user’’ that is defined in 

§ 744.17 of the EAR. 

Foreign Policy Report 

The extension of the military end use 

controls to Russia in this rule is the 

imposition of a foreign policy control. 

Section 6(f) of the Export 

Administration Act requires that a 

report be delivered to Congress before 

imposing such controls. The report was 

delivered to Congress on September 12, 

2014. 

Export Administration Act 

Although the Export Administration 

Act expired on August 20, 2001, 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 by the Notice of August 7, 

2014, 79 FR 46959 (August 11, 2014), 

has continued the Export 

Administration Regulations in effect 

under the International Emergency 

Economic Powers Act. BIS continues to 

carry out the provisions of the Export 

Administration Act, as appropriate and 

to the extent permitted by law, pursuant 

to Executive Order 13222 as amended 

by Executive Order 13637. 

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 determined to be not 


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significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision 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 regulation 

involves collections previously 

approved by OMB under control 

number 0694–0088, Simplified Network 

Application Processing System, which 

includes, among other things, license 

applications and carries a burden 

estimate of 43.8 minutes for a manual or 

electronic submission. 

Total burden hours associated with 

the PRA and OMB control number 

0694–0088 are not expected to 

significantly increase as a result of this 

rule. You may send comments regarding 

the collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by email to Jasmeet_K._

Seehra@omb.eop.gov, or by fax to (202) 

395–7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

comment and a delay in effective date 

are inapplicable because this regulation 

involves a military or foreign affairs 

function of the United States. (See 5 

U.S.C. 553(a)(1)). BIS implements this 

rule to advance U.S. policy toward 

Russia and therefore protect U.S. 

national security or foreign policy 

interests by preventing items from being 

exported, reexported, or transferred (in 

country) to the persons being added to 

the Entity List and items intended for 

certain end uses. If this rule were 

delayed to allow for notice and 

comment and a delay in effective date, 

then entities being added to the Entity 

List by this action would continue to be 

able to receive items without a license 

and to conduct activities contrary to the 

national security or foreign policy 

interests of the United States. In 

addition, publishing a proposed rule 

would give these parties notice of the 

U.S. Government’s intention to place 

them on the Entity List and would 

create an incentive for these persons to 

either accelerate receiving items subject 

to the EAR to conduct activities that are 

contrary to the national security or 

foreign policy interests of the United 

States, and/or to take steps to set up 

additional aliases, change addresses, 

and other measures to try to limit the 

impact of the listing on the Entity List 

once a final rule was published. BIS also 

implements this rule to protect U.S. 

national security or foreign policy 

objectives from being undermined by 

immediately restricting the export, 

reexport or transfer (in-country) of 

certain items to Russia for military end 

uses. Further, no other law requires that 

a notice of proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., are not applicable. Accordingly, 

no regulatory flexibility analysis is 

required and none has been prepared. 

List of Subjects 

15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

15 CFR Part 746 

Exports, Reporting and recordkeeping 

requirements. 

Accordingly, parts 744 and 746 of the 

Export Administration Regulations (15 

CFR parts 730–774) are amended as 

follows: 

PART 744—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 744 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; 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. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; 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 August 7, 2014, 79 FR 46959 

(August 11, 2014); Notice of September 18, 

2013, 78 FR 58151 (September 20, 2013); 

Notice of November 7, 2013, 78 FR 67289 

(November 12, 2013); Notice of January 21, 

2014, 79 FR 3721 (January 22, 2014). 

■ 2. Section 744.21 is revised to read as 

follows: 

§ 744.21 Restrictions on Certain ‘Military 

end uses’ in the People’s Republic of China 

(PRC) or for a ‘Military end use’ or ‘Military 

end user’ in Russia. 

(a)(1) General prohibition. In addition 

to the license requirements for items 

specified on the Commerce Control List 

(CCL), you may not export, reexport, or 

transfer (in-country) any item subject to 

the EAR listed in Supplement No. 2 to 

Part 744 to the PRC or Russia without 

a license if, at the time of the export, 

reexport, or transfer (in-country), either: 

(i) You have ‘‘knowledge,’’ as defined 

in § 772.1 of the EAR, that the item is 

intended, entirely or in part, for a 

‘military end use,’ as defined in 

paragraph (f) of this section, in the PRC 

or for a ‘military end use’ or ‘military 

end user’ in Russia; or 

(ii) You have been informed by BIS, 

as described in paragraph (b) of this 

section, that the item is or may be 

intended, entirely or in part, for a 

‘military end use’ in the PRC or for a 

‘military end use’ or ‘military end-user’ 

in Russia. 

(2) General prohibition. In addition to 

the license requirements for 9x515 and 

‘‘600 series’’ items specified on the 

Commerce Control List (CCL), you may 

not export, reexport, or transfer (incountry) any 9x515 or ‘‘600 series’’ item, 

including items described in a .y 

paragraph of a 9x515 or ‘‘600 series’’ 

ECCN, to the PRC or Russia without a 

license. 

(b) Additional prohibition on those 

informed by BIS. BIS may inform you 

either individually by specific notice, 

through amendment to the EAR 

published in the Federal Register, or 

through a separate notice published in 

the Federal Register, that a license is 

required for specific exports, reexports, 

or transfers (in-country) of any item 

because there is an unacceptable risk of 

use in or diversion to ‘military end use’ 

activities in the PRC or for a ‘military 

end use’ or ‘military end-user’ in Russia. 

Specific notice will be given only by, or 

at the direction of, the Deputy Assistant 

Secretary for Export Administration. 

When such notice is provided orally, it 

will be followed by written notice 

within two working days signed by the 

Deputy Assistant Secretary for Export 

Administration or the Deputy Assistant 

Secretary’s designee. The absence of BIS 

notification does not excuse the 

exporter from compliance with the 

license requirements of paragraph (a) of 

this section. 

(c) License exception. Despite the 

prohibitions described in paragraphs (a) 

and (b) of this section, you may export, 

reexport, or transfer (in-country) items 

subject to the EAR under the provisions 


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55612 Federal Register / Vol. 79, No. 180 / Wednesday, September 17, 2014 / Rules and Regulations 

of License Exception GOV set forth in 

§ 740.11(b)(2)(i) and (ii) of the EAR. 

(d) License application procedure. 

When submitting a license application 

pursuant to this section, you must state 

in the ‘‘additional information’’ block of 

the application that ‘‘this application is 

submitted because of the license 

requirement in § 744.21 of the EAR 

(Restrictions on Certain Military End 

Uses in the People’s Republic of China 

or for a ‘Military End Use’ or ‘Military 

End User’ in Russia).’’ In addition, 

either in the additional information 

block of the application or in an 

attachment to the application, you must 

include for the PRC all known 

information concerning the military end 

use of the item(s) and for Russia, all 

known information concerning the 

‘military end use’ and ‘military end 

users’ of the item(s). If you submit an 

attachment with your license 

application, you must reference the 

attachment in the ‘‘additional 

information’’ block of the application. 

(e) License review standards. (1) 

Applications to export, reexport, or 

transfer items described in paragraph (a) 

of this section will be reviewed on a 

case-by-case basis to determine whether 

the export, reexport, or transfer would 

make a material contribution to the 

military capabilities of the PRC or 

Russia, and would result in advancing 

the country’s military activities contrary 

to the national security interests of the 

United States. When it is determined 

that an export, reexport, or transfer 

would make such a contribution, the 

license will be denied. 

(2) Applications may be reviewed 

under chemical and biological weapons, 

nuclear nonproliferation, or missile 

technology review policies, as set forth 

in §§ 742.2(b)(4), 742.3(b)(4) and 

742.5(b)(4) of the EAR, if the end use 

may involve certain proliferation 

activities. 

(3) Applications for items requiring a 

license for other reasons that are 

destined to the PRC for a ‘military end 

use’ or that are destined to Russia for a 

‘military end use’ or ‘military end-user’ 

also will be subject to the review policy 

stated in paragraph (e)(1) of this section. 

(f) Military end use. In this section, 

‘military end use’ means: Incorporation 

into a military item described on the 

U.S. Munitions List (USML) (22 CFR 

part 121, International Traffic in Arms 

Regulations); incorporation into a 

military item described on the 

Wassenaar Arrangement Munitions List 

(as set out on the Wassenaar 

Arrangement Web site at http://

www.wassenaar.org); incorporation into 

items classified under ECCNs ending in 

‘‘A018’’ or under ‘‘600 series’’ ECCNs; or 

for the ‘‘use,’’ ‘‘development,’’ or 

‘‘production’’ of military items 

described on the USML or the 

Wassenaar Arrangement Munitions List, 

or items classified under ECCNs ending 

in ‘‘A018’’ or under ‘‘600 series’’ ECCNs. 

Note to paragraph (f) of this section: As 

defined in Part 772 of the EAR, ‘‘use’’ means 

operation, installation (including on-site 

installation), maintenance (checking), repair, 

overhaul and refurbishing; ‘‘development’’ is 

related to all stages prior to serial 

production, such as: Design, design research, 

design analyses, design concepts, assembly 

and testing of prototypes, pilot production 

schemes, design data, process of 

transforming design data into a product, 

configuration design, integration design, 

layouts; and ‘‘production’’ means all 

production stages, such as: Product 

engineering, manufacturing, integration, 

assembly (mounting), inspection, testing, 

quality assurance. 

For purposes of this section, ‘‘operation’’ 

means to cause to function as intended; 

‘‘installation’’ means to make ready for use, 

and includes connecting, integrating, 

incorporating, loading software, and testing; 

‘‘maintenance’’ means performing work to 

bring an item to its original or designed 

capacity and efficiency for its intended 

purpose, and includes testing, measuring, 

adjusting, inspecting, replacing parts, 

restoring, calibrating, overhauling; and 

‘‘deployment’’ means placing in battle 

formation or appropriate strategic position. 

(g) Military end user. In this section, 

the term ‘military end-user’ means the 

national armed services (army, navy, 

marine, air force, or coast guard), as well 

as the national guard and national 

police, government intelligence or 

reconnaissance organizations, or any 

person or entity whose actions or 

functions are intended to support 

‘military end uses’ as defined in 

paragraph (f) of this section. 

■ 3. Supplement No. 4 to part 744 is 

amended by adding under Russia, in 

alphabetical order, ten Russian entities. 

The additions read as follows: 


asabaliauskas on DSK5VPTVN1PROD with RULES
Federal Register / Vol. 79, No. 180 / Wednesday, September 17, 2014 / Rules and Regulations 55613 

Supplement No. 4 to Part 744—Entity 

List 

Country Entity License requirement License review policy Federal Register 

citation 

*******

RUSSIA 

*******

Almaz-Antey Air Defense Concern Main System 

Design Bureau, JSC (a.k.a., A.A. Raspletin 

Main System Design Bureau; a.k.a. AlmazAntey GSKB; a.k.a. Almaz-Antey GSKB Imeni 

Academician A.A. Raspletin; a.k.a. AlmazAntey MSDB; a.k.a. Almaz-Antey PVO ‘Air 

Defense’ Concern Lead Systems Design Bureau OAO ‘Open Joint-Stock Company’ Imeni 

Academician A.A. Raspletin; a.k.a. Golovnoye 

Sistemnoye Konstruktorskoye Byuro Open 

Joint-Stock Company of Almaz-Antey PVO 

Concern Imeni Academician A.A. Raspletin; 

a.k.a. Joint Stock Company Almaz-Antey Air 

Defense Concern Main System Design Bureau, Named by Academician A.A. Raspletin; 

a.k.a. Joint Stock Company Almaz-Antey Air 

Defense Concern Main System Design Bureau; a.k.a. Almaz-Antey; a.k.a. JSC ‘AlmazAntey’ MSDB, f.k.a., Otkrytoe Aktsionernoe 

Obshchestvo Nauchno Proizvodstvennoe 

Obedinenie Almaz Imeni Akademika A.A. 

Raspletina; a.k.a. GSKB).

Address: 16–80, Leningradsky Prospect, Moscow 125190, Russia.

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR).

Presumption of denial .. 79 FR [INSERT FR 

PAGE NUMBER] 9/

17/2014. 

* * * * * * * 

Dolgoprudny Research Production Enterprise, 

OAO (a.k.a. olgoprudnenskoye NPP OAO; 

a.k.a. Dolgoprudny; a.k.a. Dolgoprudny Research Production Enterprise; a.k.a. Otkrytoe 

Aktsionernoe Obshchestvo Doigoprudnenskoe 

Nauchno Proizvodstvennoe Predpriyatie; 

a.k.a. OAO ‘Dolgoprudny Research Production Enterprise’).

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR).

Presumption of denial .. 79 FR [INSERT FR 

PAGE ] 9/17/2014. 

Address: 1 Pl. Sobina, Dolgoprudny, 

Moskovskaya obl. 141700 , Russia.

Alt Address: Proshchad Sobina 1, Dolgoprudny 

141700, Russia.

* * * * * * * 

Gazprom, OAO (a.k.a. Open Joint Stock Company Gazprom; a.k.a. OAO Gazprom; a.k.a. 

Gazprom).

For all items subject to 

the EAR when used 

in projects specified 

in § 746.5 of the EAR.

See § 746.5(b) of the 

EAR.

79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 16 Nametkina St., Moscow, Russia 

GSP–7, 117997, Russia.

Alt Address: 16 Nametkina ul., Moscow 117991, 

Russia.

Gazprom Neft (a.k.a. Gazprom Neft OAO; a.k.a. 

JSC Gazprom Neft; a.k.a. Open Joint-Stock 

Company Gazprom Neft; f.k.a. Sibirskaya 

Neftyanaya Kompaniya OAO).

For all items subject to 

the EAR when used 

in projects specified 

in § 746.5 of the EAR.

See § 746.5(b) of the 

EAR.

79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: Let. A. Galernaya, 5, ul, St. Petersburg 

190000, Russia.

Alt Address: Ul. Pochtamtskaya, 3–5, St. Petersburg 190000, Russia.

Alt Address: 3–5 Pochtamtskaya St., St. Petersburg 190000, Russia.

Alt Address: 125 A. Profsoyuznaya Street, Moscow 117647, Russia.


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55614 Federal Register / Vol. 79, No. 180 / Wednesday, September 17, 2014 / Rules and Regulations 

Country Entity License requirement License review policy Federal Register 

citation 

*******

Kalinin Machine Plant, JSC (a.k.a., Kalinin Machine-Building Plant Open Joint-Stock Company; a.k.a. Kalinin Machinery Plant-BRD; 

a.k.a. Mashinostroitel’NYI Zavod IM. M.I. 

Kalinina, G. Yekaterinburg OAO; a.k.a. Mzik 

OAO; a.k.a. Open-End Joint-Stock Company 

‘Kalinin Machinery Plant. YEKATERINBURG’; 

a.k.a. Otkrytoe Aktsionernoe Obshchestvo 

Mashinostroitelny Zavod IM.M.I.Kalinina, 

G.Ekaterinburg).

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR).

Presumption of denial .. 79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 18 prospekt Kosmonavtov, 

Ekaterinburg 620017, Sverdlovskaya obl., 

Russia.

* * * * * * * 

Lukoil, OAO .........................................................

(a.k.a. Lukoil; a.k.a. Lukoil Oil Company; a.k.a. 

Neftyanaya Kompaniya Lukoil OOO; a.k.a. NK 

Lukoil OAO).

For all items subject to 

the EAR when used 

in projects specified 

in § 746.5 of the EAR.

See § 746.5(b) of the 

EAR.

79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 11 Sretenski boulevard, Moscow 

101000, Russia.

* * * * * * * 

Mytishchinski Mashinostroitelny Zavod, OAO 

(a.k.a., JSC Mytishchinski Machine-Building 

Plant; a.k.a. Otkrytoe Aktsionernoe 

Obshchestvo ‘Mytishchinski Mashinostroitelny 

ZAVOD’).

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR).

Presumption of denial .. 79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 4 ul. Kolontsova Mytishchi, 

Mytishchinski Raion, Moskovskayaobl 

141009, Russia.

Alt. Address: UL Koloncova, d.4, Mytishi, Moscow region 141009, Russia.

Rosneft (a.k.a. Open Joint-Stock Company 

Rosneft Oil Company; a.k.a. OAO Rosneft Oil 

Company; a.k.a. Oil Company Rosneft; a.k.a. 

OJSC Rosneft Oil Company; a.k.a. Rosneft 

Oil Company).

For all items subject to 

the EAR when used 

in projects specified 

in § 746.5 of the EAR.

See § 746.5(b) of the 

EAR.

79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 26/1, Sofiyskaya Embankment, 

117997, Moscow, Russia.

* * * * * * * 

Surgutneftegas (a.k.a. Open Joint Stock Company Surgutneftegas; a.k.a. Otkrytoe 

Aktsionernoe Obshchestvo Surgutneftegaz; 

a.k.a. Surgutneftegas OAO; a.k.a. 

Surgutneftegas OJSC; a.k.a. Surgutneftegaz 

OAO).

For all items subject to 

the EAR when used 

in projects specified 

in § 746.5 of the EAR.

See § 746.5(b) of the 

EAR.

79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: ul. Grigoriya Kukuyevitskogo, 1, bld. 1, 

Khanty-Mansiysky Autonomous Okrug— 

Yugra, the city of Surgut, Tyumenskaya Oblast 628415, Russia.

Alt Address: korp. 1 1 Grigoriya Kukuevitskogo 

ul., Surgut, Tyumenskaya oblast 628404, 

Russia. 

Alt Address: 

Street Kukuevitskogo 1, Surgut, Tyumen Region 

628415, Russia.

* * * * * * * 

Tikhomirov Scientific Research Institute of Instrument Design, JSC (a.k.a., JSC NIIP, f.k.a., 

Otkrytoe Aktsionernoe Obshchestvo Nauchno 

Issledovatelski Institute Priborostroeniya Imeni 

V.V. Tikhomirova; a.k.a. Scientific Research 

Institute of Instrument Design; a.k.a. JSC V. 

Tikhomirov Scientific Research Institute of Instrument Design.).

For all items subject to 

the EAR. (See 

§ 744.11 of the EAR).

Presumption of denial .. 79 FR [INSERT FR 

PAGE NUMBER ] 9/

17/2014. 

Address: 3 Ul. Gagarina, Zhukovski, 

Moskovskaya Obl 140180, Russia.


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Federal Register / Vol. 79, No. 180 / Wednesday, September 17, 2014 / Rules and Regulations 55615 

1 40 FR 51582 (Nov. 5, 1975). 

2 58 FR 49096 (Sept. 21, 1993). 

3The Commission reviews all its rules and guides 

periodically to ensure that they remain relevant. 

These periodic reviews seek information about the 

costs and benefits of the Commission’s rules and 

guides as well as their economic and regulatory 

impact. The information obtained assists the 

Commission in identifying rules and guides that 

warrant modification or rescission. 

4 72 FR 51728 (Sept. 11, 2007). 

5 15 U.S.C. 57a(b)(2)(A). 

6 76 FR 60765 (Sept. 30, 2011). 

7See Bureau of Consumer Protection, Staff Report 

to the Federal Trade Commission and Proposed 

Revised Trade Regulation Rule (16 CFR Part 435) 

(Apr. 2013) (‘‘Staff Report’’). The Staff Report is 

Continued 

Country Entity License requirement License review policy Federal Register 

citation 

*******

PART 746—[AMENDED] 

■ 4. 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, 66 FR 44025, 3 

CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 

26751, 3 CFR, 2004 Comp., p 168; 

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); Notice of May 7, 2014, 79 FR 26589 

(May 9, 2014); Notice of August 7, 2014, 79 

FR 46959 (August 11, 2014). 

■ 5. Section 746.5 is amended by 

revising paragraph (a)(1) to read as 

follows: 

§ 746.5 Russian industry sector sanctions. 

(a) License requirements—(1) General 

prohibition. As authorized by Section 6 

of the Export Administration Act of 

1979, a license is required to export, 

reexport or transfer (in-country) any 

item subject to the EAR listed in 

Supplement No. 2 to this part and items 

specified in ECCNs 0A998, 1C992, 

3A229, 3A231, 3A232, 6A991, 8A992, 

and 8D999 when you know that the 

item will be used directly or indirectly 

in exploration for, or production of, oil 

or gas in Russian deepwater (greater 

than 500 feet) or Arctic offshore 

locations or shale formations in Russia, 

or are unable to determine whether the 

item will be used in such projects. Such 

items include, but are not limited to, 

drilling rigs, parts for horizontal 

drilling, drilling and completion 

equipment, subsea processing 

equipment, Arctic-capable marine 

equipment, wireline and down hole 

motors and equipment, drill pipe and 

casing, software for hydraulic fracturing, 

high pressure pumps, seismic 

acquisition equipment, remotely 

operated vehicles, compressors, 

expanders, valves, and risers. You 

should be aware that other provisions of 

the EAR, including parts 742 and 744, 

also apply to exports and reexports to 

Russia. License applications submitted 

to BIS under this section may include 

the phrase ‘‘section 746.5’’ in Block 9 

(Special Purpose) in Supplement No. 1 

to part 748. 

* * * * * 

Dated: September 12, 2014. 

Eric L. Hirschhorn, 

Under Secretary of Commerce for Industry 

and Security. 

[FR Doc. 2014–22207 Filed 9–15–14; 11:15 am] 

BILLING CODE 4310–33–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 435 

RIN 3084–AB07 

Mail or Telephone Order Merchandise 

Rule 

AGENCY: Federal Trade Commission 

(‘‘Commission’’ or ‘‘FTC’’). 

ACTION: Final rule. 

SUMMARY: The Commission adopts final 

amendments to its Trade Regulation 

Rule previously entitled ‘‘Mail or 

Telephone Order Merchandise,’’ 

including revising its name to ‘‘Mail, 

Internet, or Telephone Order 

Merchandise’’ (the ‘‘Rule’’). The final 

Rule is based upon the comments 

received in response to an Advance 

Notice of Proposed Rulemaking 

(‘‘ANPR’’), a Notice of Proposed 

Rulemaking (‘‘NPRM’’), a Staff Report, 

and other information. This document 

contains the text of the final Rule and 

the Rule’s Statement of Basis and 

Purpose (‘‘SBP’’), including a Regulatory 

Analysis. 

DATES: The provisions of the final Rule 

will become effective on December 8, 

2014. 

ADDRESSES: This document is available 

on the Internet at the Commission’s Web 

site, www.ftc.gov. The complete record 

of this proceeding is also available at 

that Web site. 

FOR FURTHER INFORMATION CONTACT: Jock 

Chung, (202) 326–2984, Attorney, 

Division of Enforcement, Bureau of 

Consumer Protection, Federal Trade 

Commission, Room CC–9528, 600 

Pennsylvania Ave. NW., Washington, 

DC 20580. 

SUPPLEMENTARY INFORMATION: The final 

amendments modify the Rule in four 

ways. First, they clarify that the Rule 

covers all Internet merchandise orders, 

regardless of the method consumers use 

to access the Internet. Second, they 

permit refunds and refund notices by 

any means at least as fast and reliable 

as first class mail. Third, they clarify 

sellers’ refund obligations for orders 

using payment methods not specifically 

enumerated in the Rule (‘‘nonenumerated payments’’). Finally, they 

require sellers to process any third party 

credit card refunds by seven working 

days after a buyer’s right to a refund 

vests. 

Statement of Basis and Purpose 

I. Background 

The Rule prohibits sellers from 

soliciting mail, Internet, or telephone 

order sales unless they have a 

reasonable basis to expect that they can 

ship the ordered merchandise within 

the time stated on the solicitation or, if 

no time is stated, within 30 days. The 

Rule further requires a seller to seek the 

buyer’s consent to the delayed shipment 

when the seller learns that it cannot 

ship within the time stated or, if no time 

is stated, within 30 days. If the buyer 

does not consent, the seller must 

promptly refund all money paid for the 

unshipped merchandise. 

The Commission promulgated the 

Mail Order Merchandise Rule in 1975 to 

ensure sellers either shipped mailordered merchandise on time or offered 

cancellations and refunds for 

merchandise.1 In 1993, the Commission 

amended the Rule to cover merchandise 

ordered by telephone (including 

merchandise ordered through the 

Internet using telephone Internet 

access), and renamed it the Mail or 

Telephone Order Merchandise Rule.2

On September 11, 2007, as part of its 

rule review process,3 the Commission 

published a request for public 

comment,4 which also served as an 

ANPR.5 It then published an NPRM in 

2011.6 In April 2013, Commission staff 

issued a Staff Report to the 

Commission.7


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