[Federal Register Volume 66, Number 41 (Thursday, March 1, 2001)]
[Rules and Regulations]
[Pages 12845-12848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5007]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 738, 740, 744, and 746

[Docket No. 010208031-1031-01]
RIN 0694-AC36


Exports to the Federal Republic of Yugoslavia; Revision of 
Foreign Policy Controls

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends the Export Administration Regulations 
(EAR) by removing the additional license requirements imposed on Serbia 
in May 1999. However, a license is required for all exports and 
reexports by U.S. persons of any item subject to the EAR to persons 
listed pursuant to Executive Order 13088, as amended by Executive Order 
13192 of January 17, 2001. The persons subject to sanctions under 
amended Executive Order 13088 include Slobodan Milosevic, his family, 
his close associates, and those indicted for war crimes. These 
sanctioned persons are identified on the list of specially designated 
nationals and blocked persons maintained by the Department of the 
Treasury's Office of Foreign Assets Control and identified by the 
bracketed suffix initials [FRYM]. Controls are maintained under the EAR 
on arms and related materiel to the Federal Republic of Yugoslavia 
(Serbia and Montenegro) consistent with United Nations Security Council 
Resolution 1160 of March 3, 1998.

DATES: This rule is effective March 1, 2001.

FOR FURTHER INFORMATION CONTACT: Brian Nilsson, Office of Strategic 
Trade and Foreign Policy Controls, Telephone: (202) 482-4196.

SUPPLEMENTARY INFORMATION:

Background

    Executive Order 13088 of June 9, 1998, as amended by Executive 
Order 13121 on April 30, 1999, imposed, among other measures, 
comprehensive U.S. export and reexport prohibitions on the Federal 
Republic of Yugoslavia (Serbia and Montenegro). On May 4, 1999, the 
Bureau of Export Administration (BXA) issued a final rule imposing a 
license requirement for exports and reexports to Serbia of all items 
subject to the EAR and a case-by-case review of applications with a 
presumption of denial for other than humanitarian items. These measures 
were intended to deter Serbia's human rights offenses against ethnic 
Albanians in Kosovo and to prevent the expansion of the ethnic 
conflict. BXA's May 4, 1999 rule did not impose similar comprehensive 
controls on exports or reexports to Montenegro.
    Effective January 19, 2001, Executive Order 13192 amended Executive 
Order 13088 to revoke previously imposed prohibitions, including those 
on exports and reexports. BXA is taking action under its export control 
authorities consistent with amended Executive Order 13088. 
Specifically, this rule removes the additional license requirements 
imposed under the EAR by the May 4, 1999, rule on exports and reexports 
to Serbia, and thus restores Serbia to the export control status it had 
prior to May 4, 1999. However, persons listed in the Annex to Executive 
Order 13192, as well as persons designated by the Secretary of the 
Treasury, in consultation with the Secretary of State pursuant to that 
order, are subject to sanctions administered by the Department of the 
Treasury's Office of Foreign Assets Control. Exports and reexports of 
any item subject to the EAR by a U.S. person to a person designated 
pursuant to amended Executive Order 13088 are subject to a license 
requirement and a licensing policy of denial. These sanctioned persons 
are included on a list of specially designated nationals and blocked 
persons (SDNs) maintained by the Department of the Treasury, Office of 
Foreign Assets Control (OFAC) and identified by the bracketed suffix 
initials [FRYM]. To obtain additional information regarding the list of 
SDNs, contact OFAC at telephone number 202/622-2520. BXA provisions 
regarding these sanctioned persons are included in new section 744.16 
of the EAR.
    This rule eliminates the distinctions previously applicable to 
Serbia, Kosovo and Montenegro, which had been established by the final 
rule of November 5, 1999, for export control purposes. With the 
publication of this rule, Serbia (including the province of Kosovo) and 
Montenegro will be listed together as the Federal Republic of 
Yugoslavia (Serbia and Montenegro) for License Exception eligibility 
purposes, as members of ``Country Group B'' (see Supplement No. 1 to 
part 740),

[[Page 12846]]

``Computer Tier 3'' (see Sec. 740.7), and in the ``Commerce Country 
Chart'' (see Supplement No. 1 part 738).
    Note that the arms embargo mandated by United Nations Security 
Council Resolution 1160 of March 3, 1998 remains in effect. This 
embargo prohibits the sale or supply of arms and arms-related items to 
the Federal Republic of Yugoslavia (Serbia and Montenegro), including 
those controlled under the EAR for crime control and regional stability 
reasons.
    A foreign policy report on the new controls imposed by this rule on 
designated persons pursuant to amended Executive Order 13088 was 
submitted to the Congress on February 23, 2001.

Rulemaking Requirements

    1. This rule was determined to be not significant for purposes of 
Executive Order 12866.
    2. This rule involves a collection of information subject to the 
Paperwork Reduction Act (P.R.A.) of 1995 (U.S.C. 3501 et seq.). This 
collection has been approved by the Office of Management and Budget 
under control number 0694-0088, ``Multi-Purpose Application,'' which 
carries a burden hour estimate of 45 minutes per manual submission on 
form BXA-748P and 40 minutes per electronic submission. Notwithstanding 
any other provision of law, no person is required to respond to, nor 
shall any person be subject to a penalty for failure to comply with a 
collection of information subject to the requirements of the P.R.A., 
unless that collection of information displays a currently valid OMB 
Control Number.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
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 participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, 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 to be given for this rule under 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. Therefore, this 
regulation is issued in final form.
    Although there is no formal comment period, public comments on this 
regulation are welcome on a continuing basis. Comments should be 
submitted to Sheila Quarterman, Office of Exporter Services, Bureau of 
Export Administration, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.

List of Subjects

15 CFR Part 738

    Administrative practice and procedure, Exports, Foreign trade.

15 CFR Part 740

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and Recordkeeping requirements.

15 CFR Part 744

    Exports, Foreign trade, Reporting and recordkeeping requirements.

15 CFR Part 746

    Embargoes, Exports, Foreign trade, Reporting and recordkeeping 
requirements.


    Accordingly, parts 738, 740, 744, and 746 of the Export 
Administration Regulations (15 CFR Parts 730-799) are amended as 
follows:
    1. The authority citation for part 738 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508; 
50 U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 
2510 et seq.; 22 U.S.C. 287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 
6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 
U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 12924, 59 
FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; Notice of August 3, 2000 (65 FR 48347, August 8, 
2000).


    2. The authority citation for part 740 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508; 
50 U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., 
p. 917; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; Notice 
of August 3, 2000 (65 FR 48347, August 8, 2000).


    3. The authority citation for part 744 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508; 
50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
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. 12924, 59 FR 43437, 3 CFR, 
1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13088, 
63 FR 32109, 3 CFR, 1998 Comp., p. 191; E.O. 13121 of April 30, 
1999, 64 FR 24021 (May 5, 1999); E.O. 13192 of January 17, 2001, 66 
FR 7379 (January 23, 2001); Notice of November 12, 1998, 63 FR 
63589, 3 CFR, 1998 Comp., p. 305; Notice of August 3, 2000 (65 FR 
48347, August 8, 2000).


    4. The authority citation for Part 746 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508; 
50 U.S.C. 1701 et seq.; 22 U.S.C. 287c; 22 U.S.C. 6004; 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. 12924, 59 FR 43437, 3 CFR, 1994 Comp., 
p. 917; Notice of August 3, 2000 (65 FR 48347, August 8, 2000).

PART 738--[AMENDED]

    5. Supplement No. 1 to Part 738 is amended by removing the entries 
``Kosovo (Serbian province of)'' and ``Montenegro'', by revising the 
entry heading ``Serbia (not including Kosovo)'' to read ``Yugoslavia 
(Serbia and Montenegro), Federal Republic of'', and by revising the 
newly designated ``Yugoslavia (Serbia and Montenegro), Federal Republic 
of'' row, to read as follows:

Supplement No. 1 to Part 738--(Commerce Country Chart)

                                                                                               Commerce Country Chart--Reason for Control
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Chemical & biological           Nuclear        National security    Missile   Regional stability     Firearms             Crime control           Anti-terrorism
                                                                             weapons             nonproliferation  --------------------    tech    --------------------   convention   -------------------------------------------------
                            Countries                            --------------------------------------------------                    ------------                    ----------------
                                                                    CB 1      CB 2      CB 3      NP 1      NP 2      NS 1      NS 2       MT 1       RS 1      RS 2         FC 1         CC 1      CC 2      CC 3      AT 1      AT 2
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                           *                  *                  *                  *                  *                  *                  *
Yugoslavia (Serbia and Montenegro), Federal Republic of \1\.....        X         X                   X                   X         X           X         X         X                         X         X         X
 
                                                            *                  *                  *                  *                  *                  *              *
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements thatm ay apply to your proposed transaction.


[[Page 12847]]

PART 740--[AMENDED]

    6. Section 740.7 is amended by revising paragraph (d)(1) to read as 
follows:


Sec. 740.7  Computers (CTP).

* * * * *
    (d) Computer Tier 3--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, 
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia, 
China (People's Republic of), Comoros, Croatia, Djibouti, Egypt, and 
Yugoslavia (Serbia and Montenegro), Federal Republic of, Georgia, 
India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Latvia, 
Lebanon, Lithuania, Macau, Macedonia (The Former Yugoslav Republic of), 
Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia, 
Saudi Arabia, Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab 
Emirates, Uzbekistan, Vanuatu, Vietnam, Yemen and Yugoslavia. As of May 
19, 2001, Lithuania moves to Computer Tier 1.
* * * * *

    7. Supplement No. 1 to part 740 is amended by removing ``Kosovo 
(Serbian province of)'' and ``Montenegro'' from the list of ``Country 
Group B'' countries and by adding, in alphabetical order, ``Yugoslavia 
(Serbia and Montenegro), Federal Republic of''.

PART 744--AMENDED

    8. Part 744 is amended by adding new section 744.16 to read as 
follows:


Sec. 744.16  Restrictions on exports and reexports by U.S. persons to 
specially designated persons on the list of Specially Designated 
Nationals identified by the bracketed suffix initials [FRYM].

    BXA maintains restrictions on exports and reexports of any item 
subject to the EAR by U.S. persons to persons designated pursuant to 
Executive Order 13088 of June 9, 1998, as amended by Executive Order 
13192 of January 17, 2001 (Executive Order 13088, as amended). These 
designated persons include individuals listed in the Annex to Executive 
Order 13192, as well as persons designated by the Secretary of the 
Treasury, in consultation with the Secretary of State pursuant to that 
order (e.g., the former President of the Federal Republic of 
Yugoslavia, Slobodan Milosevic; his close associates; persons 
determined to be under open indictment by the International Criminal 
Tribunal for the former Yugoslavia; and persons determined to have 
sought, or to be seeking, to maintain or reestablish illegitimate 
control over the political processes or economic resources of the 
Federal Republic of Yugoslavia (Serbia and Montenegro)). Persons 
designated pursuant to Executive Order 13088, as amended, are included 
on the list of Specially Designated Nationals maintained by the 
Department of the Treasury's Office of Foreign Assets Control (OFAC) 
and identified by the bracketed suffix initials [FRYM]. The 
requirements set forth in this section further the objectives of 
Executive Order 13088, as amended.
    (a) License requirements. (1) A license is required for all exports 
and reexports of any item subject to the EAR by a U.S. person to a 
person on the list of Specially Designated Nationals maintained by OFAC 
and identified by the bracketed initials [FRYM].
    (2) A U.S. person may also be required to seek separate 
authorization from OFAC for an export or reexport to a designated 
person identified by the bracketed initials [FRYM].
    (b) License policy. Applications for exports and reexports of any 
item subject to the EAR by a U.S. person to a Specially Designated 
National identified by the bracketed initials [FRYM] will be reviewed 
with a general policy of denial.

PART 746--[AMENDED]

    9. Section 746.9 is revised to read as follows:


Sec. 746.9  The Federal Republic of Yugoslavia (Serbia and Montenegro).

    United Nations Security Council Resolution 1160 of March 31, 1998 
provides that all member States shall prevent the sale or supply to the 
Federal Republic of Yugoslavia, including Kosovo, by their nationals or 
from their territories or using their flag vessels and aircraft, of 
arms and related materiel of all types, such as weapons and ammunition, 
military vehicles and equipment and spare parts for the aforementioned, 
and shall prevent the arming and training for terrorist activities 
there. Executive Order 12918 of May 26, 1994 (3 CFR, 1994 comp., p. 
899) authorizes the Secretary of State and the Secretary of Commerce, 
under section 5 of the United Nations Participation Act and other 
authorities available to the respective Secretaries, to take all 
actions necessary to implement any arms embargo mandated by resolution 
of the UNSC.
    (a) License requirements. (1) Under Executive Order 12918 of May 
26, 1994, and in conformity with UNSC Resolution 1160 of March 31, 
1998, an embargo applies to the sale or supply to the Federal Republic 
of Yugoslavia (Serbia and Montenegro), of arms and related materiel of 
all types and regardless of origin, such as weapons and ammunition, 
military vehicles and equipment, and spare parts for such items. You 
will, therefore, need a license for the sale, supply or export to the 
Federal Republic of Yugoslavia (Serbia and Montenegro) from the United 
States of embargoed items, as listed in paragraphs (a)(1)(i) and (ii) 
of this section. You will also need a license for the sale, supply, 
export or reexport to the Federal Republic of Yugoslavia (Serbia and 
Montenegro) of such items by any U.S. person in any foreign country or 
other location. (Reexport controls imposed by this embargo apply only 
to reexports by U.S. persons. Reexport controls on U.S.-origin items to 
the Federal Republic of Yugoslavia (Serbia and Montenegro) set forth in 
other parts of the EAR remain in effect.) You will also need a license 
for the use of any U.S.-registered aircraft or vessel to supply or 
transport to the Federal Republic of Yugoslavia (Serbia and Montenegro) 
any such items. These requirements apply to the following items, 
regardless of origin.
    (i) Crime Control and Detection Equipment as identified on the CCL 
under CC Columns No. 1, 2 or 3 in the Country Chart column of the 
``License Requirements'' section of the applicable ECCN.
    (ii) Items described by ECCNs ending in ``018''; and 0A978, 0A979, 
0A982, 0A983, 0A984, 0A985, 0A986, 0A987, 0A988, 0A989, 0B986, 0E982, 
0E984, 1A005, 1A984, 1A985, 1C992.b.-k., 2A993, 3A980, 3A981, 3D980, 
3E980, 4A980, 4D980, 4E980, 5A980, 6A002, 6A003.b.3 and b.4, 6E001, 
6E002, 9A980, and 9A991.a.
    (2) Date of embargo. The licensing requirements in paragraph (a)(1) 
of this section were effective on July 14, 1998, except for ECCN 0E982, 
which took effect on September 13, 2000.
    (b) Licensing policy. Applications for export or reexport of all 
items listed in paragraphs (a)(1)(i) and (ii) of this section are 
subject to a general policy of denial. Consistent with United Nations 
Security Council Resolution 1160, this embargo is effective 
notwithstanding the existence of any rights or obligations conferred or 
imposed by any international agreement or any contract entered into or 
any license or permit granted prior to the appropriate date referred to 
in paragraph (a)(2) of this section, except to the extent provided in 
regulations, orders, directives or licenses that may be issued in the 
future under Executive Order 12918 or under the EAR.

[[Page 12848]]

    (c) Related controls. The Department of State, Office of Defense 
Trade Controls, maintains related controls on arms and military 
equipment under the International Traffic in Arms Regulations (22 CFR 
parts 120 through 130). You should also contact the Department of the 
Treasury's Office of Foreign Assets Control concerning any restrictions 
which might apply to U.S. persons involving financial transactions or 
dealings with the Federal Republic of Yugoslavia (Serbia and 
Montenegro).

    Dated: February 26, 2001.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 01-5007 Filed 2-28-01; 8:45 am]
BILLING CODE 3510-33-P