Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Rules and Regulations 46597 

Control(s) 

Country chart 

(see supp. No. 1 to 

part 738) 

NS applies to entire 

entry except equipment for ECCN 

0A501.y.

NS Column 1 

RS applies to entire 

entry except equipment for ECCN 

0A501.y.

RS Column 1 

UN applies to entire 

entry.

See § 746.1 of the 

EAR for UN controls 

AT applies to entire 

entry.

AT Column 1 

List Based License Exceptions (See Part 740 

for a Description of all License Exceptions) 

LVS: $3000 

GBS: N/A 

Special Conditions for STA 

STA: Paragraph (c)(2) of License Exception 

STA (§ 740.20(c)(2) of the EAR) may not be 

used to ship any item in this entry. 

List of Items Controlled 

Related Controls: N/A 

Related Definitions: N/A 

Items: 

a. Small arms chambering machines. 

b. Small arms deep hole drilling machines 

and drills therefor. 

c. Small arms rifling machines. 

d. Small arms boring/reaming machines. 

e. Production equipment (including dies, 

fixtures, and other tooling) ‘‘specially 

designed’’ for the ‘‘production’’ of the items 

controlled in 0A501.a through .x. or USML 

Category I. 

■ 17. In Supplement No. 1 to part 774, 

Category 0, revise Export Control 

Classification Number (ECCN) 0E505 to 

read as follows: 

0E505 ‘‘Technology’’ ‘‘required’’ for the 

‘‘development,’’ ‘‘production,’’ 

operation, installation, maintenance, 

repair, overhaul, or refurbishing of 

commodities controlled by 0A505. 

License Requirements 

Reason for Control: NS, RS, UN, CC, AT 

Control(s) 

Country chart 

(see supp. No. 1 to 

part 738) 

NS applies to ‘‘technology’’ for ‘‘development,’’ ‘‘production,’’ operation, installation, maintenance, repair, overhaul, or refurbishing 

commodities in 

0A505.a and .x; for 

equipment for those 

commodities in 

0B505; and for 

‘‘software’’ for that 

equipment and 

those commodities 

in 0D505.

NS Column 1 

Control(s) 

Country chart 

(see supp. No. 1 to 

part 738) 

RS applies to ‘‘technology’’ for ‘‘development,’’ ‘‘production,’’ operation, installation, maintenance, repair, overhaul, or refurbishing 

commodities in 

0A505.a and .x; for 

equipment for those 

commodities in 

0B505 and for 

‘‘software’’ for those 

commodities and 

that equipment in 

0D505.

RS Column 1 

UN applies to entire 

entry.

See § 746.1 of the 

EAR for UN controls 

CC applies to ‘‘technology’’ for the 

‘‘development’’ or 

‘‘production’’ of 

commodities in 

0A505.b.

CC Column 1 

AT applies to ‘‘technology’’ for ‘‘development,’’ ‘‘production,’’ operation, installation, maintenance, repair, overhaul, or refurbishing 

commodities in 

0A505.a, .d, and .x.

AT Column 1 

List Based License Exceptions (See Part 740 

for a Description of All License Exceptions) 

TSR: N/A 

Special Conditions for STA 

STA: Paragraph (c)(2) of License Exception 

STA (§ 740.20(c)(2) of the EAR) may not be 

used for any ‘‘technology’’ in 0E505. 

List of Items Controlled 

Related Controls: Technical data required for 

and directly related to articles enumerated 

in USML Category III are ‘‘subject to the 

ITAR’’. 

Related Definitions: N/A 

Items: The list of items controlled is 

contained in this ECCN heading. 

■ 18. In Supplement No. 1 to part 774, 

Category 1, revise Export Control 

Classification Number (ECCN) 1A984 to 

read as follows: 

1A984 Chemical agents, including tear gas 

formulation containing 1 percent or less 

of orthochlorobenzalmalononitrile (CS), 

or 1 percent or less of 

chloroacetophenone (CN), except in 

individual containers with a net weight 

of 20 grams or less; liquid pepper except 

when packaged in individual containers 

with a net weight of 3 ounces (85.05 

grams) or less; smoke bombs; nonirritant smoke flares, canisters, grenades 

and charges; and other pyrotechnic 

articles having dual military and 

commercial use, and ‘‘parts’’ and 

‘‘components’’ ‘‘specially designed’’ 

therefor, n.e.s. 

License Requirements 

Reason for Control: CC 

Control(s) 

Country chart 

(see supp. No. 1 

to part 738) 

CC applies to entire 

entry.

CC 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: N/A 

Related Definitions: N/A 

Items: 

The list of items controlled is contained in 

the ECCN heading. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–17647 Filed 8–18–21; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 117 

[Docket ID: DoD–2020–OS–0045] 

RIN 0790–AL41 

National Industrial Security Program 

Operating Manual (NISPOM); 

Amendment 

AGENCY: Office of the Under Secretary of 

Defense for Intelligence & Security, 

Department of Defense (DoD). 

ACTION: Final rule; technical 

amendment. 

SUMMARY: DoD is amending its NISPOM 

regulation to extend the implementation 

date for those contractors under DoD 

security cognizance to report and obtain 

pre-approval of unofficial foreign travel 

to the Department of Defense. 

DATES: This rule is effective August 19, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Valerie Heil, 703–692–3754. 

SUPPLEMENTARY INFORMATION: This final 

rule amends 32 CFR part 117, ‘‘National 

Industrial Security Program Operating 

Manual (NISPOM)’’ final rule that 

published in the Federal Register on 

December 21, 2020 (85 FR 83300). The 

rule includes reporting requirements for 

contractor personnel who have been 

granted eligibility for access to classified 

information through the National 

Industrial Security Program to follow 


lotter on DSK11XQN23PROD with RULES1
46598 Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Rules and Regulations 

Security Executive Agent Directive 

(SEAD) 3, ‘‘Reporting Requirements for 

Personnel with Access to Classified 

Information or Who Hold a Sensitive 

Position.’’ Reporting requirements in the 

rule include provisions for covered 

individuals to report and obtain preapproval of unofficial foreign travel. 

DoD received comments from regulated 

parties concerning how burdensome it 

would be for contractors under DoD 

security cognizance to submit 

individual foreign travel reports. 

Regulated parties recommended DoD 

modify its IT system so multiple or 

batched foreign travel reports can be 

submitted in a single submission. DoD 

agrees with this recommendation and 

intends to modify its IT system. 

However, DoD cannot complete 

modifications to its IT system before the 

original implementation date of August 

24, 2021. This amendment will extend 

until August 24, 2022, the 

implementation date for those 

contractors under DoD security 

cognizance to report and obtain preapproval of unofficial foreign travel to 

DoD to allow for the modifications to 

DoD’s IT system to be completed. If a 

government contracting activity’s (GCA) 

contract separately requires reporting or 

pre-approval of unofficial foreign travel 

(i.e., contains a provision requiring such 

reports other than by incorporating the 

NISPOM), the contractor should consult 

with the GCA on when and where to 

submit such reports and the procedures 

for obtaining pre-approval. 

Exception to Notice and Comment 

This regulation can be effective 

immediately, notwithstanding the 

general requirement in the 

Administrative Procedure Act (APA) for 

advance notice and comment. 

Principally, this rule follows from a 

final rule with comment. This final rule 

is a logical outgrowth of the notice and 

comment incorporated in the prior final 

rule, because it is directly responsive to 

public comments made in response to 

the final rule. Several commenters 

specifically requested a delay in the 

August 24, 2021 implementation date. 

For example, one commenter stated that 

for contractors under DoD security 

cognizance, reporting foreign travel and 

foreign contacts will be impractical for 

companies of size without a mass or 

bulk upload capability that doesn’t exist 

in the system as designed today. 

Further, the commenter stated this 

capability should be pursued and aligns 

with one of the stated goals of SEAD 3, 

which encourages ‘‘automation and 

centralization.’’ Even absent the prior 

notice and comment incorporated in the 

final rule, this rule would be exempt 

from the APA’s notice-and-comment 

requirement, because it satisfies the 

good-cause exception in 553(b)(3)(B). 

Specifically, notice-and-comment 

rulemaking is ‘‘unnecessary,’’ id., 

because as noted in the preamble, DoD 

already took comments on its NISPOM 

regulation and the regulated parties 

affected by the regulation requested that 

the Department change its IT system 

before they must report and obtain preapproval of unofficial foreign travel to 

DoD. Indeed, DoD is amending the 

NISPOM regulation for the purpose of 

extending the implementation date at 

the request of the regulated parties 

affected by the rule who provided 

comments on the NISPOM regulation 

during a previous notice and comment 

period provided for the final rule. The 

need for this change to DoD’s IT system 

was discovered in the comments 

received on the NISPOM regulation. 

While DoD desired to modify its IT 

system before the original 

implementation date to meet the 

requested change by the regulated 

parties, the Department discovered 

through the comment process that such 

modification is not feasible. DoD has 

therefore concluded that there is good 

cause to dispense with the advanced 

notice-and-comment rulemaking 

requirements in 5 U.S.C. 553. 

Regulatory Analysis 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review’’ 

Executive Orders 12866 and 13563 

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, distribute 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. It has been determined that 

this rule is a significant regulatory 

action. Accordingly, the rule has been 

reviewed by the Office of Management 

and Budget (OMB) under the 

requirements of these E.O.s. 

Congressional Review Act 

This rule is not a ‘‘major rule’’ as 

defined by 5 U.S.C. 804(2). 

Public Law 96–354, ‘‘Regulatory 

Flexibility Act’’ (5 U.S.C. Chapter 6) 

The Under Secretary of Defense for 

Intelligence and Security, pursuant to a 

delegation of authority from the 

Secretary of Defense, certifies that this 

final rule would not, if promulgated, 

have a significant economic impact on 

a substantial number of small business 

entities in accordance with the 

Regulatory Flexibility Act (5 U.S.C. 601) 

requirements since a contractor cleared 

legal entity may, in entering into 

contracts requiring access to classified 

information, negotiate for security costs 

determined to be properly chargeable by 

a Government Contracting Activity. 

Public Law 96–511, ‘‘Paperwork 

Reduction Act’’ (44 U.S.C. Chapter 35) 

It has been determined that this rule 

does not impose any new information 

collection or record keeping 

requirements under the Paperwork 

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

et seq.). 

Section 202, Public Law 104–4, 

‘‘Unfunded Mandates Reform Act’’ 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

(2 U.S.C. 1532) requires agencies to 

assess anticipated costs and benefits 

before issuing any rule whose mandates 

require spending in any 1 year of $100 

million in 1995 dollars, updated 

annually for inflation. This final rule 

will not mandate any requirements for 

State, local, or tribal governments, nor 

will it affect private sector costs. 

Executive Order 13132, ‘‘Federalism’’ 

E.O. 13132 establishes certain 

requirements that an agency must meet 

when it promulgates a final rule (and 

subsequent final rule) that imposes 

substantial direct requirement costs on 

State and local governments, preempts 

State law, or otherwise has Federalism 

implications. This final rule will not 

have a substantial effect on State and 

local governments. 

List of Subjects in 32 CFR Part 117 

Classified information; Government 

contracts; USG contracts, National 

Industrial Program (NISP); Prime 

contractor, Subcontractor. 

Accordingly, 32 CFR part 117 is 

amended as follows: 

PART 117— NATIONAL INDUSTRIAL 

SECURITY PROGRAM OPERATING 

MANUAL (NISPOM) 

■ 1. The authority citation for 32 CFR 

part 310 continues to read as follows: 

Authority: 32 CFR part 2004; E.O. 10865; 

E.O. 12333; E.O. 12829; E.O. 12866; E.O. 

12968; E.O. 13526; E.O. 13563; E.O. 13587; 

E.O. 13691; Pub. L. 108–458; Title 42 U.S.C. 

2011 et seq.; Title 50 U.S.C. Chapter 44; Title 

50 U.S.C. 3501 et seq. 

■ 2. In § 117.1, paragraph (b)(3) is 

revised to read as follows: 


lotter on DSK11XQN23PROD with RULES1
Federal Register / Vol. 86, No. 158 / Thursday, August 19, 2021 / Rules and Regulations 46599 

§ 117.1 Purpose. 

* * * * * 

(b) * * * 

(3) Prescribes that contractors will 

implement the provisions of this part no 

later than 6 months from February 24, 

2021, with the exception of 

requirements for reporting foreign travel 

to the Department of Defense prescribed 

in SEAD 3 and implemented through 

this rule. Contractors under the security 

cognizance of the Department of 

Defense will begin reporting foreign 

travel to the Department of Defense no 

later than 18 months from February 24, 

2021. 

Dated: August 12, 2021. 

Patricia L. Toppings, 

OSD Federal Register Liaison Officer, 

Department of Defense. 

[FR Doc. 2021–17688 Filed 8–18–21; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

32 CFR Part 269 

[Docket ID: DOD–2016–OS–0045] 

RIN 0790–AL18 

Civil Monetary Penalty Inflation 

Adjustment 

AGENCY: Office of the Under Secretary of 

Defense (Comptroller), Department of 

Defense. 

ACTION: Final rule. 

SUMMARY: The Department of Defense is 

issuing this final rule to adjust each of 

its statutory civil monetary penalties 

(CMP) to account for inflation. The 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended by 

the Debt Collection Improvement Act of 

1996 and the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (the 2015 Act), requires the 

head of each agency to adjust for 

inflation its CMP levels in effect as of 

November 2, 2015, under a revised 

methodology that was effective for 2016 

and for each year thereafter. 

DATES: This rule is effective August 19, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Kellie Allison, 703–614–0410. 

SUPPLEMENTARY INFORMATION: 

Background Information 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990, Public Law 

101–410, 104 Stat. 890 (28 U.S.C. 2461, 

note), as amended by the Debt 

Collection Improvement Act of 1996, 

Public Law 104–134, April 26, 1996, 

and further amended by the Federal 

Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015 (the 2015 

Act), Public Law 114–74, November 2, 

2015, required agencies to annually 

adjust the level of CMPs for inflation to 

improve their effectiveness and 

maintain their deterrent effect. The 2015 

Act required that not later than July 1, 

2016, and not later than January 15 of 

every year thereafter, the head of each 

agency must adjust each CMP within its 

jurisdiction by the inflation adjustment 

described in the 2015 Act. The inflation 

adjustment is determined by increasing 

the maximum CMP or the range of 

minimum and maximum CMPs, as 

applicable, for each CMP by the cost-ofliving adjustment, rounded to the 

nearest multiple of $1. The cost-ofliving adjustment is the percentage (if 

any) for each CMP by which the 

Consumer Price Index (CPI) for the 

month of October preceding the date of 

the adjustment, exceeds the CPI for the 

month of October in the previous 

calendar year. 

The initial catch up adjustments for 

inflation to the Department of Defense’s 

CMPs were published as an interim 

final rule in the Federal Register on 

May 26, 2016 (81 FR 33389–33391) and 

became effective on that date. The 

interim final rule was published as a 

final rule without change on September 

12, 2016 (81 FR 62629–62631), effective 

that date. The revised methodology for 

agencies for 2017 and each year 

thereafter provides for the improvement 

of the effectiveness of CMPs and to 

maintain their deterrent effect. The 

Department of Defense is adjusting the 

level of all civil monetary penalties 

under its jurisdiction by the Office of 

Management and Budget (OMB) 

directed cost-of-living adjustment 

multiplier for 2021 of 1.01182 

prescribed in OMB Memorandum M– 

21–10, ‘‘Implementation of Penalty 

Inflation Adjustments for 2021, 

Pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015,’’ dated December 16, 2019. 

The Department of Defense’s 2021 

adjustments for inflation to CMPs apply 

only to those CMPs, including those 

whose associated violation predated 

such adjustment, which are assessed by 

the Department of Defense after the 

effective date of the new CMP level. 

Statement of Authority and Costs and 

Benefits 

Pursuant to 5 U.S.C. 553(b)B, there is 

good cause to issue this rule without 

prior public notice or opportunity for 

public comment because it would be 

impracticable and unnecessary. The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Section 701(b)) requires agencies, 

effective 2017, to make annual 

adjustments for inflation to CMPs 

notwithstanding section 553 of title 5, 

United States Code. Additionally, the 

methodology used, effective 2017, for 

adjusting CMPs for inflation is 

established in statute, with no 

discretion provided to agencies 

regarding the substance of the 

adjustments for inflation to CMPs. The 

Department of Defense is charged only 

with performing ministerial 

computations to determine the dollar 

amount of adjustments for inflation to 

CMPs. 

Further, there are no significant costs 

associated with the regulatory revisions 

that would impose any mandates on the 

Department of Defense, Federal, State or 

local governments, or the private sector. 

Accordingly, prior public notice and an 

opportunity for public comment are not 

required for this rule. The benefit of this 

rule is the Department of Defense 

anticipates that civil monetary penalty 

collections may increase in the future 

due to new penalty authorities and 

other changes in this rule. However, it 

is difficult to accurately predict the 

extent of any increase, if any, due to a 

variety of factors, such as budget and 

staff resources, the number and quality 

of civil penalty referrals or leads, and 

the length of time needed to investigate 

and resolve a case. 

Regulatory Procedures 

Executive Order 12866, ‘‘Regulatory 

Planning and Review’’ and Executive 

Order 13563, ‘‘Improving Regulation 

and Regulatory Review’’ 

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, distribute 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 is not a ‘‘significant 

regulatory action,’’ and was not 

reviewed by the Office of Management 

and Budget. 

Unfunded Mandates Reform Act (2 

U.S.C. Chapter 25) 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

(2 U.S.C. 1532) requires agencies to 

assess anticipated costs and benefits 


lotter on DSK11XQN23PROD with RULES1