This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

30535 

Vol. 86, No. 109 

Wednesday, June 9, 2021 

DEPARTMENT OF AGRICULTURE 

Office of the Secretary 

7 CFR Part 3 

[Docket No. USDA–2020–0011] 

RIN 0503–AA72 

Civil Monetary Penalty Inflation 

Adjustments for 2021; Correction 

AGENCY: Office of the Secretary, U.S. 

Department of Agriculture (USDA). 

ACTION: Correcting amendment. 

SUMMARY: On May 10, 2021, we 

published a final rule amending the U.S. 

Department of Agriculture’s civil 

monetary penalty regulations by making 

inflation adjustments as mandated by 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015. We are correcting an error that 

appeared in that final rule. 

DATES: Effective June 9, 2021. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Stephen O’Neill, Office of Budget and 

Program Analysis, USDA, 1400 

Independence Avenue SW,Washington, 

DC 20250–1400, (202) 720–0038. 

SUPPLEMENTARY INFORMATION: In a final 

rule published and effective on June 17, 

2020 (85 FR 36670–36714), we amended 

the U.S. Department of Agriculture’s 

(USDA’s) debt management regulations 

in 7 CFR part 3. As part of that final 

rule, we revised the regulations in § 3.91 

to update the amount of civil monetary 

penalties that may be levied by USDA 

agencies to reflect inflationary 

adjustments for 2020 as required by the 

2015 Civil Penalties Act. 

In making those updates, we 

inadvertently introduced an error into 

paragraph (b)(2)(xiv) of § 3.91. Prior to 

the effective date of the June 2020 final 

rule, that paragraph had specified that 

the civil penalty for a violation of the 

Commercial Transportation of Equine 

for Slaughter Act, 7 U.S.C. 1901 note, 

and its implementing regulations in 9 

CFR part 88, as set forth in 9 CFR 88.6, 

has a maximum of $5,000. The June 

2020 final rule should have adjusted 

that maximum amount to $5,088 

consistent with the guidance contained 

in Office of Management and Budget 

memorandum M–20–05, which 

provided a cost-of-living adjustment 

multiplier for 2020 of 1.01764. 

However, due to a drafting error, the 

amount that appeared was $812. 

That error carried over into our 2021 

adjustments, which were published and 

effective on May 10, 2021 (86 FR 24699– 

24703), in which we applied the 2021 

cost-of-living adjustment multiplier 

(1.01182) to the incorrect $812 figure to 

arrive at an adjusted penalty of $822. 

To address these errors, we are 

amending 7 CFR 3.91(b)(2)(xiv) to 

replace the incorrect penalty amount 

with the correct amount, which is 

$5,148 (i.e., the correct 2020 figure of 

$5,088 times the 2021 multiplier). 

List of Subjects in 7 CFR Part 3 

Administrative practice and 

procedure, Claims, Government 

employees, Income taxes, Loan 

programs-agriculture, Penalties, 

Reporting and recordkeeping 

requirements, Wages. 

Accordingly, we are amending 7 CFR 

part 3 as follows: 

PART 3—DEBT MANAGEMENT 

Subpart I—Adjusted Civil Monetary 

Penalties 

■ 1. The authority citation for part 3, 

subpart I, continues to read as follows: 

Authority: 28 U.S.C. 2461 note. 

§ 3.91 [Amended] 

■ 2. In § 3.91, paragraph (b)(2)(xiv) is 

amended by removing the amount 

‘‘$822’’ and adding the amount 

‘‘$5,148’’ in its place. 

John Rapp, 

Acting Director, Office of Budget and Program 

Analysis. 

[FR Doc. 2021–12110 Filed 6–8–21; 8:45 am] 

BILLING CODE 3410–90–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 760 

[Docket No. 210528–0118] 

RIN 0694–AI48 

Export Administration Regulations: 

Termination of United Arab Emirates 

Participation in the Arab League 

Boycott of Israel 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: In this final rule, the Bureau 

of Industry and Security (BIS) amends 

the Export Administration Regulations 

(EAR) to reflect the formal termination 

by the United Arab Emirates (UAE) of 

its participation in the Arab League 

Boycott of Israel. Specifically, in 

recognition of the UAE’s August 16, 

2020 issuance of Federal Decree-Law 

No. 4 of 2020, certain requests for 

information, action or agreement from 

the UAE, which were presumed to be 

boycott-related if made prior to August 

16, 2020, would not be presumed to be 

boycott-related if made following that 

date, and thus would not be prohibited 

or reportable under the EAR. 

Accordingly, BIS adds an interpretation 

to the Restrictive Trade Practices or 

Boycotts regulations of the EAR, which 

sets forth BIS’s view that the 

prohibitions and reporting requirements 

contained in the EAR’s antiboycott 

provisions do not apply to such requests 

from the UAE made after August 16, 

2020. 

DATES: This rule is effective June 8, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Cathleen Ryan, Director, Office of 

Antiboycott Compliance, Bureau of 

Industry and Security, U.S. Department 

of Commerce, by email at 

OAC.WebQueries@bis.doc.gov or 

OACINQUIRIES@bis.doc.gov, or by 

phone at 202–482–2381. 

SUPPLEMENTARY INFORMATION: 

Background 

The Office of Antiboycott Compliance 

(OAC) administers and enforces the 

antiboycott provisions set forth in part 

760 (Restrictive Trade Practices and 

Boycotts) of the Export Administration 


lotter on DSK11XQN23PROD with RULES1
30536 Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations 

Regulations (EAR) (15 CFR parts 730 

through 774). These antiboycott 

provisions discourage, and in certain 

circumstances prohibit, United States 

persons from taking specific actions in 

furtherance or support of an 

unsanctioned foreign boycott by a 

country against a country friendly to the 

United States, including complying 

with certain requests to provide 

information about business 

relationships with a boycotted country 

or with blacklisted persons or to refuse 

to do business with certain persons for 

boycott-related reasons. Pursuant to part 

760 of the EAR, the receipt of such 

requests may be reportable to OAC. 

In connection with an agreement 

between the United Arab Emirates 

(UAE) and Israel establishing full 

diplomatic and commercial relations 

and normalization (the ‘‘Abraham 

Accords’’), on August 16, 2020, the UAE 

issued Federal Decree-Law No. 4 of 

2020, which repealed Federal Law No. 

15 of 1972 Concerning the Arab League 

Boycott of Israel (‘‘August 16, 2020 

decree’’), thereby formally ending the 

UAE’s participation in the Arab League 

Boycott of Israel. 

In this final rule, the Bureau of 

Industry and Security (BIS) amends part 

760 of the EAR to add an Interpretation 

that reflects the UAE’s formal 

termination (through the issuance of the 

August 16, 2020 decree) of its 

participation in the Arab League Boycott 

of Israel. In making this amendment, 

BIS has also taken into account actions 

that the UAE Government has 

undertaken to implement, in policy and 

practice, the August 16, 2020 decree. As 

set forth in this Interpretation, which 

will appear as new Supplement No. 17 

to part 760 of the EAR, certain requests 

for information, action or agreement 

from the UAE that were presumed to be 

boycott-related prior to August 16, 2020 

would not be presumed to be boycottrelated if issued after August 16, 2020, 

and thus would not be subject to the 

prohibitions or reporting requirements 

of part 760 of the EAR. Further, the 

Interpretation reminds United States 

persons that requests that are on their 

face boycott-related or that are for action 

obviously in furtherance or support of 

an unsanctioned foreign boycott are 

subject to part 760 of the EAR, 

irrespective of the country of 

origination. 

Export Control Reform Act of 2018 

On August 13, 2018, President Donald 

J. Trump signed into law the John S. 

McCain National Defense Authorization 

Act for Fiscal Year 2019, which 

included the Export Control Reform Act 

of 2018 (ECRA) (50 U.S.C. 4801–4852). 

Part II of ECRA contains the AntiBoycott Act of 2018. 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, 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 final rule has been 

designated as not significant for 

purposes of Executive Order 12866. 

2. This rule does not contain policies 

with Federalism implications as that 

term is defined under Executive Order 

13132. 

3. Pursuant to section 1762 of the 

Export Control Reform Act of 2018 (50 

U.S.C. 4821), this action is exempt from 

the Administrative Procedure Act (5 

U.S.C. 553) requirements for notice of 

proposed rulemaking, opportunity for 

public participation, and delay in 

effective date. 

4. 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. This rule reflects a 

policy development involving the 

United Arab Emirates that advances the 

U.S. Government’s foreign policy and 

national security. Accordingly, no 

regulatory flexibility analysis is 

required, and none has been prepared. 

5. Notwithstanding any other 

provision of law, no person may be 

required to respond to or 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.), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves a collection currently approved 

by OMB under control number 0694– 

0012, Report of Requests for Restrictive 

Trade Practice or Boycott—Single or 

Multiple Transactions. The collection 

carries a burden estimate of 60 to 90 

minutes for a manual or electronic 

submission for a total burden estimate 

of 482 hours. BIS expects the burden 

hours associated with this collection to 

decrease with the publication of this 

rule. 

List of Subjects in 15 CFR Part 760 

Exports, Reporting and recordkeeping 

requirements, Trade practices. 

Accordingly, part 760 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 760—RESTRICTIVE TRADE 

PRACTICES OR BOYCOTTS 

■ 1. The authority citation for part 760 

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. 

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

783. 

■ 2. Add supplement no. 17 to part 760 

to read as follows: 

Supplement No. 17 to Part 760— 

Interpretation 

Pursuant to the agreement between 

the United Arab Emirates (UAE) and 

Israel establishing diplomatic and 

commercial relations (the ‘‘Abraham 

Accords’’), on August 16, 2020, the UAE 

issued Federal Decree-Law No. 4 of 

2020, abolishing Federal Law No. 15 of 

1972 Concerning the Arab League 

Boycott of Israel, thereby formally 

terminating participation by the UAE in 

the Arab League Boycott of Israel as of 

that date. 

On the basis of this action, it is the 

Department’s position that certain 

requests for information, action or 

agreement from the UAE, which were 

presumed to be boycott-related under 

this part of the EAR if issued prior to 

August 16, 2020, would not be 

presumed to be boycott-related if issued 

after August 16, 2020, and thus would 

not be prohibited or reportable under 

this part of the EAR. 

For example, a request from the UAE 

that an exporter certify that the vessel 

on which it is shipping its goods is 

eligible to enter UAE ports was formerly 

presumed to be a boycott-related request 

under this part of the EAR with which 

the exporter could not comply because 

the UAE had a boycott law in force 

against Israel. Such a request from the 

UAE made after August 16, 2020, would 

no longer be presumed to be boycottrelated because the underlying boycott 

requirement/basis for the certification 

was eliminated as of August 16, 2020. 

Similarly, a U.S. company would not be 

prohibited from complying with a 

request made by UAE government 

officials after August 16, 2020, to 

furnish the place of birth of employees 

the company is seeking to take to the 

UAE because there is no underlying 


lotter on DSK11XQN23PROD with RULES1
Federal Register / Vol. 86, No. 109 / Wednesday, June 9, 2021 / Rules and Regulations 30537 

1Public Law 107–297, 116 Stat. 2322, codified at 

15 U.S.C. 6701 note. Because the provisions of 

TRIA (as amended) appear in a note instead of 

particular sections of the U.S. Code, the provisions 

of TRIA are identified by the sections of the law. 

2TRIA sec. 101(b). 

3See Terrorism Risk Insurance Extension Act of 

2005, Public Law 109–144, 119 Stat. 2660; 

Terrorism Risk Insurance Program Reauthorization 

Act of 2007, Public Law 110–160, 121 Stat. 1839; 

Terrorism Risk Insurance Program Reauthorization 

Act of 2015, Public Law 114–1, 129 Stat. 3; 

Terrorism Risk Insurance Program Reauthorization 

Act of 2019, Public Law 116–94, 133 Stat. 2534. 

4 31 U.S.C. 313(c)(1)(D). 

5See 31 CFR part 50. Treasury summarized the 

history of prior rulemakings in connection with the 

Program in a 2016 proposed rulemaking proposing 

rule changes to implement the 2015 

Reauthorization Act. See 81 FR 18950, 18950–91 

(Apr. 1, 2016), https://www.federalregister.gov/ 

documents/2016/04/01/2016-06920/terrorism-riskinsurance-program. 

6 Guidance Concerning Stand-Alone Cyber 

Liability Insurance Policies Under the Terrorism 

Risk Insurance Program, 81 FR 95312 (Dec. 27, 

2016), https://www.federalregister.gov/documents/ 

2016/12/27/2016-31244/guidance-concerningstand-alone-cyber-liability-insurance-policiesunder-the-terrorism-risk. 

7Terrorism Risk Insurance Program; Updated 

Regulations in Light of the Terrorism Risk 

Insurance Program Reauthorization Act of 2019, 

and for Other Purposes, 85 FR 71588 (Nov. 10, 

2020), https://www.federalregister.gov/documents/ 

2020/11/10/2020-24522/terrorism-risk-insuranceprogram-updated-regulations-in-light-of-theterrorism-risk-insurance. 

8 GAO, Terrorism Risk Insurance: Program 

Changes Have Reduced Federal Fiscal Exposure 

(GAO–20–348) (Apr. 2020), https://www.gao.gov/ 

assets/710/706243.pdf. 

9 Id. at 18–19. 

10 Id. at 19. 

UAE government boycott law or policy 

that would give rise to a presumption 

that the request was boycott-related. 

U.S. persons are reminded that 

requests that are on their face boycottrelated or that are for action obviously 

in furtherance or support of an 

unsanctioned foreign boycott are subject 

to this part of the EAR, irrespective of 

the country of origination. For example, 

requests containing references to 

‘‘blacklisted companies,’’ ‘‘Israel boycott 

list,’’ ‘‘non-Israeli goods,’’ or other 

phrases or words indicating a boycott 

purpose would be subject to the 

appropriate provisions of the 

Department’s antiboycott regulations in 

this part. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2021–12125 Filed 6–7–21; 4:15 pm] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

31 CFR Part 50 

Terrorism Risk Insurance Program; 

Updated Regulations in Light of the 

Terrorism Risk Insurance Program 

Reauthorization Act of 2019, and for 

Other Purposes 

AGENCY: Departmental Offices, 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury (Treasury) is issuing this final 

rule to implement technical changes to 

the Terrorism Risk Insurance Program 

(TRIP or Program) rules in response to 

the Terrorism Risk Insurance Program 

Reauthorization Act of 2019. In 

addition, Treasury is issuing this final 

rule to: Clarify the manner in which 

Treasury will calculate ‘‘property and 

casualty insurance losses’’ for purposes 

of considering certification of an act of 

terrorism, and ‘‘insured losses’’ when 

administering the financial sharing 

mechanisms under the Program, 

including the Program Trigger and 

Program Cap; incorporate into the 

Program rules the prior guidance 

provided by Treasury in connection 

with stand-alone cyber insurance under 

the Program; and provide updated links 

to additional information found on the 

Program’s website relating to 

administration of the Program. The 

changes were published in proposed 

form for public comment by Treasury on 

November 10, 2020. 

DATES: This rule is effective July 12, 

2021. 

FOR FURTHER INFORMATION CONTACT: 

Richard Ifft, Senior Insurance 

Regulatory Policy Analyst, Federal 

Insurance Office, 202–622–2922, 

Lindsey Baldwin, Senior Insurance 

Regulatory Policy Analyst, Federal 

Insurance Office, 202–622–3220, or 

Daniel McKnight, Policy Analyst, 202– 

622–7009. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Terrorism Risk Insurance Act of 

2002 (as amended, the Act or TRIA) 1

was enacted on November 26, 2002, 

following the attacks of September 11, 

2001, to address disruptions in the 

market for terrorism risk insurance, help 

ensure the continued availability and 

affordability of commercial property 

and casualty insurance for terrorism 

risk, and allow for the private markets 

to stabilize and build insurance capacity 

to absorb any future losses for terrorism 

events.2 TRIA requires insurers to 

‘‘make available’’ terrorism risk 

insurance for commercial property and 

casualty losses resulting from certified 

acts of terrorism (termed ‘‘insured 

losses’’ under TRIA), and provides for 

shared public and private compensation 

for such insured losses. The Program 

has been reauthorized four times, most 

recently by the Terrorism Risk 

Insurance Program Reauthorization Act 

of 2019 (2019 Reauthorization Act).3

The Secretary of the Treasury 

(Secretary) administers the Program, 

with the assistance of the Federal 

Insurance Office (FIO).4 To assist 

insurers, policyholders, and other 

interested parties in understanding and 

complying with the requirements of the 

Act, Treasury has issued regulations 

implementing the Program (the Program 

Rules).5 In some instances, Treasury has 

also issued interim guidance that may 

be relied upon by insurers until 

superseded by any regulations. Of 

relevance to this final rule, in December 

2016, Treasury issued interim guidance 

confirming that certain stand-alone 

cyber coverage written in a TRIP-eligible 

line of insurance was within the scope 

of the Program, such that insurers were 

obligated to adhere to the ‘‘make 

available’’ and disclosure requirements 

under TRIA for such coverage (Cyber 

Guidance).6

Treasury proposed the changes in this 

final rule in a November 2020 notice of 

proposed rulemaking (the November 

2020 NPRM).7 In response to the 

reauthorization of the Program for an 

additional seven years under the 2019 

Reauthorization Act, Treasury proposed 

certain technical changes to align the 

Program Rules to the new dates for 

expiration of the Program and schedule 

for recoupment of any payments. 

Treasury also proposed in the November 

2020 NPRM certain definitional changes 

to confirm and clarify the guidance on 

cyber coverage in this area that Treasury 

provided in its December 2016 Cyber 

Guidance. In addition, Treasury 

proposed in the November 2020 NPRM 

several changes, in part in response to 

a report by the Government 

Accountability Office (GAO), addressing 

certain sources of risk and uncertainty 

related to the Program.8 In its report, 

GAO indicated that, based upon its 

engagement with stakeholders during 

the preparation of the report, some 

uncertainty may exist about how 

Treasury would apply policyholder 

retention amounts in calculating 

‘‘property and casualty insurance 

losses’’ versus ‘‘insured losses’’ to 

determine the Program certification 

threshold, Program Trigger, and 

Program Cap.9 GAO recommended that 

Treasury provide further clarification to 

‘‘prevent uncertainty in the insurance 

market and potential litigation following 

a terrorist event that that could delay 

insurance payments and economic 

recovery.’’ 10 Treasury proposed certain 


lotter on DSK11XQN23PROD with RULES1