Document ID: BIS-2009-0017-0001
Agency: bis
Document Type: Rule
Title: Encryption Simplification
Posted Date: 2009-11-04T05:00Z

[Federal Register: November 4, 2009 (Volume 74, Number 212)]
[Rules and Regulations]               
[Page 57061-57062]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04no09-4]                         

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 744

[Docket No. 080211163-91379-03]
RIN 0694-AE18

 
Encryption Simplification

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule; correcting amendment.

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SUMMARY: The Bureau of Industry and Security (BIS) published a final 
rule in the Federal Register on Thursday, October 15, 2009 (74 FR 
52880) that amended the Export Administration Regulations (EAR) to 
finalize and correct errors in an interim final rule entitled 
``Encryption Simplification'' on October 3, 2008 (73 FR 57495). That 
final rule contained one error in the amendatory instruction used for 
revising one section. This error in the amendatory instruction led to 
the unintentional removal of the wrong sentence. This document corrects 
that amendatory instruction error by adding back the sentence that was 
removed and removing the intended sentence from that section.
    In addition, this rule clarifies references in the preamble to an 
amendment to part 736 that should have been removed. The instruction to 
amend part 736 was removed from the rule prior to publication, because 
the amendment had already been made. No action is necessary to correct 
this mistake, as it did not affect the Code of Federal Regulations 
(CFR).

DATES: Effective Date: This rule is effective: November 4, 2009.

ADDRESSES: Although there is no formal comment period, public comments 
on this regulation are welcome on a continuing basis. Comments should 
be submitted to Sharron Cook, Office of Exporter Services, Bureau of 
Industry and Security, Department of Commerce, 14th and Pennsylvania 
Ave., NW., Room 2705, Washington, DC 20230. Send comments regarding the 
collection of information to Jasmeet Seehra, Office of Management and 
Budget (OMB), by e-mail to jseehra@omb.eop.gov, or by fax to (202) 395-
7285; and to the Regulatory Policy Division, Bureau of Industry and 
Security, U.S. Department of Commerce, 14th St. & Pennsylvania Avenue, 
NW., Room H2705, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Sharron Cook, Office of Exporter 
Services, Bureau of Industry and Security, U.S. Department of Commerce; 
by telephone: (202) 482-2440; or by fax: 202-482-3355.

SUPPLEMENTARY INFORMATION:

Background

    On October 15, 2009, the final rule, ``Encryption Simplification 
Rule: Final'' was published in the Federal Register (74 FR 52880). BIS 
intended to remove the sentence that reads ``Section 744.9 prohibits 
U.S. persons from providing technical assistance to certain foreign 
persons seeking to develop or manufacture certain encryption 
commodities or software.'' However, due to an error in the amendatory 
instructions, the incorrect sentence was removed. This rule corrects 
that amendatory instruction error by adding back the sentence that 
reads ``Section 744.6 prohibits certain activities by U.S. persons in 
support of certain nuclear, missile, chemical, or biological end-
uses.'' and removing the sentence that was intended to be removed.
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as extended by the Notice of August 13, 2009 
(74 FR 41,325 (August 14, 2009)), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

Rulemaking Requirements

    1. This final correction rule has been determined to be not 
significant for purposes of Executive Order 12866.
    2. 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 Paperwork Reduction Act of 1995 (44 U.S.C. 3501

[[Page 57062]]

et seq.) (PRA), unless that collection of information displays a 
currently valid Office of Management and Budget (OMB) Control Number. 
This rule involves two collections of information subject to the PRA. 
One of the collections has been approved by OMB under control number 
0694 0088, ``Multi Purpose Application,'' and carries a burden hour 
estimate of 58 minutes for a manual or electronic submission. The other 
collection has been approved by OMB under control number 0694-0104, 
``Commercial Encryption Items Under the Jurisdiction of the Department 
of Commerce,'' and carries a burden hour estimate of 7 hours for a 
manual or electronic submission. Send comments regarding these burden 
estimates or any other aspect of these collections of information, 
including suggestions for reducing the burden, to Jasmeet Seehra, OMB 
Desk Officer, by e-mail at jseehra@omb.eop.gov or by fax to (202) 395-
7285; and to the Office of Administration, Bureau of Industry and 
Security, Department of Commerce, 14th and Pennsylvania Avenue, NW., 
Room 6622, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined 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 (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 the Administrative Procedure 
Act 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 correction 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 Sharron 
Cook, Office of Exporter Services, Bureau of Industry and Security, 
Department of Commerce, 14th and Pennsylvania Ave., NW., Room 2705, 
Washington, DC 20230.

List of Subjects in 15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

0
Accordingly, part 744 of the Export Administration Regulations (15 CFR 
parts 730-774) is corrected by making the following correcting 
amendment:

PART 744--[AMENDED]

0
1. The authority citation for part 744 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 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; 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. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of August 13, 2009, 74 FR 41,325 
(August 14, 2009); November 10, 2008, 73 FR 67097 (November 12, 
2008).

Sec.  744.1  [Amended]

0
2. Section 744.1 is amended by revising paragraph (a)(1) to read as 
follows:

Sec.  744.1  General provisions.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part contains 
prohibitions against exports, reexports, and selected transfers to 
certain end-users and end-uses as introduced under General Prohibition 
Five (End-use/End-users) and Nine (Orders, Terms, and Conditions), 
unless authorized by BIS. Sections 744.2, 744.3, 744.4 prohibit 
exports, reexports and transfers (in-country) of items subject to the 
EAR to defined nuclear, missile, and chemical and biological 
proliferation activities. Section 744.5 prohibits exports, reexports 
and transfers (in-country) of items subject to the EAR to defined 
nuclear maritime end-uses. Section 744.6 prohibits certain activities 
by U.S. persons in support of certain nuclear, missile, chemical, or 
biological end-uses. Section 744.7 prohibits exports and reexports of 
certain items for certain aircraft and vessels. Section 744.8 prohibits 
exports and reexports without authorization to certain parties who have 
been designated as proliferators of weapons of mass destruction or as 
supporters of such proliferators pursuant to Executive Order 13382. 
Section 744.10 prohibits exports and reexports of any item subject to 
the EAR to Russian entities, included in Supplement No. 4 of this part. 
Section 744.11 imposes license requirements, to the extent specified in 
Supplement No. 4 to this part on entities listed in Supplement No. 4 to 
this part for activities contrary to the national security or foreign 
policy interests of the United States. Sections 744.12, 744.13 and 
744.14 prohibit exports and reexports of any item subject to the EAR to 
persons designated as Specially Designated Global Terrorists, Specially 
Designated Terrorists, or Foreign Terrorist Organizations, 
respectively. Section 744.16 sets forth the right of a party listed in 
Supplement No. 4 to this part to request that its listing be removed or 
modified. Section 744.19 sets forth BIS's licensing policy for 
applications for exports or reexports when a party to the transaction 
is an entity that has been sanctioned pursuant to any of three 
specified statutes that require certain license applications to be 
denied. Section 744.20 requires a license, to the extent specified in 
Supplement No. 4 to this part, for exports and reexports of items 
subject to the EAR destined to certain sanctioned entities listed in 
Supplement No. 4 to this part. Section 744.15 describes restrictions on 
exports and reexports to persons named in general orders. In addition, 
these sections include license review standards for export license 
applications submitted as required by these sections. It should also be 
noted that part 764 of the EAR prohibits exports, reexports and certain 
transfers of items subject to the EAR to denied parties.
* * * * *

    Dated: October 30, 2009.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. E9-26542 Filed 11-3-09; 8:45 am]

BILLING CODE 3510-33-P