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[Federal Register Volume 78, Number 76 (Friday, April 19, 2013)]
[Rules and Regulations]
[Pages 23472-23474]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09289]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 130322279-3279-01]
RIN 0694-AF90

Amendments to Existing Validated End-User Authorizations: CSMC 
Technologies Corporation in the People's Republic of China (PRC)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to revise the existing 
Authorization Validated End-User (VEU) listing for CSMC Technologies 
Corporation (CSMC) in the People's Republic of China (PRC). 
Specifically, BIS amends Supplement No. 7 to part 748 of the EAR to 
update VEU CSMC's current list of ``eligible destinations.''

DATES: This rule is effective April 19, 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 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.
    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 EAR in a final rule 
published on June 19, 2007 (72 FR 33646) to create Authorization VEU.

Amendment to an Existing Validated End-User Authorization in the PRC

Revisions to the List of Eligible Destinations and Postal Code for CSMC 
Technologies Corporation

    In this rule, BIS amends Supplement No. 7 to part 748 of the EAR to 
amend CSMC's current list of eligible destinations. Specifically, BIS 
removes Wuxi CR Semiconductor Wafers and Chips Co., Ltd. from CSMC's 
list of eligible destinations. BIS is not making this change in 
response to activities of concern. Rather, BIS is making this change to 
CSMC's list of VEU-eligible destinations as a result of the merger of 
Wuxi CR Semiconductor Wafers & Chips Co., Ltd. and CSMC Technologies 
Fab 1 Co., Ltd., which is also listed as one of CSMC's eligible 
destinations. In addition, BIS amends CSMC's authorization by updating 
the postal code for one of CSMC's eligible destinations.

Names and Former Addresses of Facilities

    Validated End-User: CSMC Technologies Corporation.
    Eligible Destinations:

CSMC Technologies Fab 1 Co., Ltd., 14 Liangxi Road, Wuxi, Jiangsu 
214061, China.
CSMC Technologies Fab 2 Co., Ltd., 8 Xinzhou Rd., Wuxi National New Hi-
Tech Industrial Development Zone, Wuxi, Jiangsu 214061, China.
Wuxi CR Semiconductor, Wafers and Chips Co., Ltd., 14 Liangxi Road, 
Wuxi, Jiangsu 214061, China.

Names and Updated Addresses of Facilities

    Validated End-User: CSMC Technologies Corporation.
    Eligible Destinations:

CSMC Technologies Fab 1 Co., Ltd., 14 Liangxi Road, Wuxi, Jiangsu 
214061, China.
CSMC Technologies Fab 2 Co., Ltd., 8 Xinzhou Road, Wuxi National New 
Hi-Tech Industrial Development Zone, Wuxi, Jiangsu 214028, China.

    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 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.

[[Page 23473]]

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 simply updates the eligible destinations of the named end-
user and a portion of their addresses. These changes have been made 
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 
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 a VEU 
authorization by updating the ``eligible destinations'' of the named 
end-user and a single postal code. Delaying this action's effectiveness 
could cause confusion with the VEU status of the list of companies 
identified in this rule due to the changes made to that list. 
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.

    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. Supplement No. 7 to part 748 is amended by revising the entry for 
``CSMC Technologies Corporation'' in ``China (People's Republic of)'' 
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

[[Page 23474]]

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                                                 Eligible items (by                           Federal Register
        Country           Validated end user           ECCN)          Eligible destination        citation
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                                                  * * * * * * *
                        CSMC Technologies      1C350.c.3,             CSMC Technologies     76 FR 2802, 1/18/11.
                         Corporation.           1C350.c.11, 2B230.a,   Fab 1 Co., Ltd., 14  76 FR 37634, 6/28/
                                                2B230.b, 2B350.f,      Liangxi Road, Wuxi,   11.
                                                2B350.g, 2B350.h,      Jiangsu 214061,      77 FR 10953, 2/24/
                                                3B001.c.1.a,           China.                12.
                                                3B001.c.2.a,          CSMC Technologies     78 FR [INSERT FR
                                                3B001.e, 3B001.h       Fab 2 Co., Ltd., 8    PAGE NUMBER] 4/19/
                                                (except for            Xinzhou Rd. Wuxi      13.
                                                multilayer masks       National New Hi-
                                                with a phase shift     Tech Industrial
                                                layer designed to      Development Zone,
                                                produce ``space        Wuxi, Jiangsu
                                                qualified''            214028, China.
                                                semiconductor
                                                devices), 3C002.a,
                                                and 3C004.
 
                                                  * * * * * * *
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    Dated: April 15, 2013.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2013-09289 Filed 4-18-13; 8:45 am]
BILLING CODE 3510-33-P
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