Document ID: BIS-2021-0003-0001
Agency: bis
Document Type: Rule
Title: Controls on Exports and Reexports of Water Cannon Systems
Posted Date: 2020-10-06T04:00Z

[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Rules and Regulations]
[Pages 63009-63011]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21816]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742 and 774

[Docket No. 200921-0252]
RIN 0694-AI04

Controls on Exports and Reexports of Water Cannon Systems

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 to impose a license requirement 
on exports and reexports of water cannon systems for riot or crowd 
control and parts and components specially designed therefor. This 
action furthers U.S. foreign policy interests for crime control (CC) 
reasons and is intended to address the spread of violations of human 
rights globally by enabling the government to review covered exports 
and reexports worldwide, except to NATO member countries and certain 
other military allies. This change will also enable the Government to 
more effectively control exports of water cannons to the Hong Kong 
Police Force, consistent with a 2019 Congressional mandate to prohibit 
the licensing of such transactions. This rule also makes conforming 
amendments.

DATES: This rule is effective October 6, 2020.

FOR FURTHER INFORMATION CONTACT: Steven Schrader, Foreign Policy 
Division, Office of Nonproliferation and Treaty Compliance, Bureau of 
Industry and Security, U.S. Department of Commerce, by email at 
Foreign.Policy@bis.doc.gov, or by phone at 202-482-4252.

SUPPLEMENTARY INFORMATION:

Background

    This rule furthers U.S. foreign policy interests for crime control 
(CC) reasons and is intended to promote the U.S. foreign policy of 
protecting human rights by imposing a license requirement under the 
Export Administration Regulations (EAR) for water cannon systems and 
related items.
    Specifically, in this rule, BIS establishes export and reexport 
controls on water cannon systems for riot or crowd control and parts 
and components specially designed therefor by creating new Export 
Control Classification Numbers (ECCN) 0A977, 0D977 and 0E977 within the 
Commerce Control List (CCL) of the EAR, Supplement No. 1 to Part 774. A 
license is now required under the EAR for the export and reexport of 
water cannon systems and related software and technology to countries 
that have been designated with an X in CC (crime control) Column 1 of 
the Commerce Country Chart, Supplement No. 1 to Part 738 of the EAR. 
This includes most countries worldwide, other than NATO member 
countries and certain other military allies.
    Consistent with the current licensing policy described in Sec.  
742.7 of the EAR--Crime control and detection--applications to export 
or reexport items subject to control pursuant to this rule will 
generally be considered favorably on a case-by-case basis, unless there 
is civil disorder in the country or region or unless there is evidence 
that the government of the importing country may have violated 
internationally recognized human rights. These ECCN entries include 
illustrative, but not comprehensive, lists of features and items for 
additional clarity of what is controlled.
    As a conforming change, BIS amends Sec.  742.7 of the EAR by adding 
ECCNs 0A977, 0D977 and 0E977 to paragraph (a) (License requirements), 
which identifies the license requirements for items controlled for 
Crime Control reasons on the CCL.
    On November 27, 2019, the Congress passed Public Law 116-77 to 
prohibit the commercial export of covered munitions items to the Hong 
Kong Police Force (the ``Act''). The Act explicitly directs the 
President to prohibit, starting 30 days after enactment, the issuance 
of licenses for the export of water cannons, among other items, to the 
Hong Kong Police Force, unless the President makes certain 
certifications to Congress beforehand. Prior to this rule, all of the 
items covered by the licensing prohibition cited in the Act were 
generally controlled for export to Hong Kong, except for water cannons. 
With this rule, water cannons and related items will now require a 
license for export or reexport to Hong Kong, and license applications 
will be reviewed consistent with all applicable laws.

Export Control Reform Act of 2018

    On August 13, 2018, the President 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) (codified, as 
amended, at 50 U.S.C. 4801-4852). ECRA provides the legal basis for 
BIS's principal authorities

[[Page 63010]]

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 not been designated to be a 
``significant regulatory action'' under section 3(f) of Executive Order 
12866.
    2. This final rule is not subject to the requirements of E.O. 13771 
(82 FR 9339, February 3, 2017) because it is issued with respect to a 
military and foreign affairs function of the United States. In 
particular, protection of human rights is a foreign affairs function 
addressed by this rule. Accordingly, this rule meets the requirements 
set forth in the April 5, 2017, OMB guidance implementing E.O. 13771. 
See https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2017/M-17-21-OMB.pdf.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. 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.
    5. 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.
    6. 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.) (PRA), 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 0694-0088, 
Simplified Network Application Processing System. This collection 
includes, among other things, license applications, and carries a 
burden estimate of 42.5 minutes for a manual or electronic submission 
for a total burden estimate of 31,878 hours. BIS expects the burden 
hours associated with this collection to minimally increase and have 
limited impact on the existing estimates. Any comments regarding the 
collection of information associated with this rule, including 
suggestions for reducing the burden, may be submitted through 
www.reginfo.gov/public/do/PRAMain.

List of Subjects

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 742 and 774 of the Export Administration 
Regulations (15 CFR parts 730 through 774) are amended as follows:

PART 742--[AMENDED]

0
1. The authority citation for part 746 continues 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.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 
Stat. 559; 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. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004 
Comp., p. 320; Notice of November 12, 2019, 84 FR 61817 (November 
13, 2019).

0
2. Section 742.7 is amended by revising paragraph (a)(1) to read as 
follows:

Sec.  742.7  Crime control and detection.

    (a) * * *
    (1) Crime control and detection instruments and equipment and 
related ``technology'' and ``software'' identified in the appropriate 
ECCNs on the CCL under CC Column 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items 
affected by this requirement are identified on the CCL under the 
following ECCNs: 0A502, 0A504, 0A505.b, 0A977, 0A978, 0A979, 0D977, 
0E502, 0E505 (``technology'' for ``development'' or for ``production'' 
of buckshot shotgun shells controlled under ECCN 0A505.b), 0E977, 
1A984, 1A985, 3A980, 3A981, 3D980, 3E980, 4A003 (for fingerprint 
computers only), 4A980, 4D001 (for fingerprint computers only), 4D980, 
4E001 (for fingerprint computers only), 4E980, 6A002 (for police-model 
infrared viewers only), 6E001 (for police-model infrared viewers only), 
6E002 (for police-model infrared viewers only), and 9A980.
* * * * *

PART 774--[AMENDED]

0
3. The authority citation for part 774 continues 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.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 15 
U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783.

0
4. In Supplement No. 1 to Part 774, Category 0 is amended by adding 
ECCN 0A977 between existing ECCNs 0A919 and 0A978 to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
0A977 Water cannon systems for riot or crowd control, and ``parts'' 
and ``components'' ``specially designed'' therefor.

License Requirements

Reason for Control: CC 1

 
                                            Country chart (see Supp. No.
                Control(s)                         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

Special Conditions for STA

STA: License Exception STA may not be used for 0A977.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.

    Note: 0A977 water cannon systems include, for example: vehicles 
or fixed stations equipped with remotely operated water cannon that 
are designed to protect the operator from an outside riot with 
features such as armor, shatter resistant windows, metal screens, 
bull-bars, or run-flat tires. Components ``specially designed'' for 
water

[[Page 63011]]

cannons may include, for example: deck gun water nozzles, pumps, 
reservoirs, cameras, and lights that are hardened or shielded 
against projectiles, elevating masts for those items, and 
teleoperation systems for those items.

* * * * *

0
5. In Supplement No. 1 to part 774, Category 0 is amended by adding 
ECCN 0D977 between existing ECCNs 0D617 and 0D999 to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
0D977 ``Software'' ``specially designed'' for the ``development,'' 
``production'' or ``use'' of commodities controlled by 0A977.

License Requirements

Reason for Control: CC1

 
                                            Country chart (see Supp. No.
                Control(s)                         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

Special Conditions for STA

STA: License Exception STA may not be used for 0D977.

List of Items Controlled

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN 
heading.
* * * * *

0
6. In Supplement No. 1 to part 774, Category 0 is amended by adding 
ECCN 0E977 between existing ECCNs 0E617 and 0E982 to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *
0E977 ``Technology'' ``required'' for the ``development'' or 
``production'' of commodities controlled by 0A977.

License Requirements

Reason for Control: CC1

 
                                            Country chart (see Supp. No.
                Control(s)                         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

Special Conditions for STA

STA: License Exception STA may not be used for 0E977.

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. 2020-21816 Filed 10-5-20; 8:45 am]
BILLING CODE 3510-33-P