Document ID: BIS-2010-0034-0001
Agency: bis
Document Type: Rule
Title: Additions to the List of Validated End-Users in the People's Republic of China: Hynix Semiconductor China Ltd., Hynix Semiconductor (Wuxi) Ltd., and Lam Research Corp.
Posted Date: 2010-10-20T04:00Z

[Federal Register: October 12, 2010 (Volume 75, Number 196)]
[Rules and Regulations]               
[Page 62462-62466]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc10-7]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 100727314-0350-01]
RIN 0694-AE95

 
Additions to the List of Validated End-Users in the People's 
Republic of China: Hynix Semiconductor China Ltd., Hynix Semiconductor 
(Wuxi) Ltd. and Lam Research Corporation

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

[[Page 62463]]

SUMMARY: In this final rule, the Bureau of Industry and Security amends 
the Export Administration Regulations (EAR) to add three end-users, 
Hynix Semiconductor (China) Ltd., Hynix Semiconductor (Wuxi) Ltd. and 
Lam Research Corporation to the list of validated end-users in the 
People's Republic of China (PRC). With this rule, exports, reexports 
and transfers (in-country) of certain items to one facility of Hynix 
Semiconductor (China) Ltd., one facility of Hynix Semiconductor (Wuxi) 
Ltd. and nine facilities of Lam Research Corporation in the PRC are now 
authorized under Authorization Validated End-User (VEU).

DATES: This rule is effective October 12, 2010. Although there is no 
formal comment period, public comments on this regulation are welcome 
on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AE95, by any 
of the following methods:
    E-mail: publiccomments@bis.doc.gov Include ``RIN 0694-AE95'' in the 
subject line of the message.
    Fax: (202) 482-3355. Please alert the Regulatory Policy Division, 
by calling (202) 482-2440, if you are faxing comments.
    Mail or Hand Delivery/Courier: Sheila Quarterman, U.S. Department 
of Commerce, Bureau of Industry and Security, Regulatory Policy 
Division, 14th Street & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230, Attn: RIN 0694-AE 95.
    Send comments regarding the collection of information associated 
with this rule, including suggestions for reducing the burden, to 
Jasmeet Seehra, Office of Management and Budget (OMB), by e-mail to 
Jasmeet_K._Seehra@omb.eop.gov or by fax to (202) 395-7285. Comments 
on this collection of information should be submitted separately from 
comments on the final rule (i.e., RIN 0694-AE95)--- all comments on the 
latter should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chairman, End-User 
Review Committee, Bureau of Industry and Security, U.S. Department of 
Commerce, 14th Street & Pennsylvania Avenue, NW., Washington, DC 20230; 
by telephone (202) 482-3811, or by e-mail to kniesv@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User (VEU): The List of Approved End-Users, 
Eligible Items and Destinations in the People's Republic of China (PRC)

    Consistent with U.S. Government policy to facilitate trade for 
civilian end-users in the PRC, BIS amended the EAR in a final rule on 
June 19, 2007 (72 FR 33646) by creating a new authorization for 
``validated end-users'' located in eligible destinations to which 
eligible items may be exported, reexported or transferred under a 
general authorization instead of a license, in conformance with section 
748.15 of the EAR. Validated end-users may obtain eligible items that 
are on the Commerce Control List, set forth in Supplement No. 1 to part 
774 of the EAR, without having to wait for their suppliers to obtain 
export licenses from BIS. Eligible items may include commodities, 
software and technology, except those controlled for missile technology 
or crime control reasons.
    Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in eligible destinations that have a 
verifiable record of civilian uses for such items. The validated end-
users listed in Supplement No. 7 to Part 748 of the EAR were reviewed 
and approved by the U.S. Government in accordance with the provisions 
of Section 748.15 and Supplement Nos. 8 and 9 to Part 748 of the EAR. 
In addition to U.S. exporters, Authorization VEU may be used by foreign 
reexporters as well as by persons transferring in-country, and does not 
have an expiration date. Currently, validated end-users are located in 
the PRC and India.

Addition of Hynix Semiconductor China Ltd., Hynix Semiconductor (Wuxi) 
Ltd. and Lam Research Corporation to the List of Validated End-Users in 
the PRC and the Corporations' Respective ``Eligible Items (By ECCN)'' 
and ``Eligible Destinations''

    This final rule amends Supplement No. 7 to Part 748 of the EAR to 
designate Hynix Semiconductor China Ltd. (HSCL), Hynix Semiconductor 
(Wuxi) Ltd. (HSMC) and Lam Research Corporation (Lam), as validated 
end-users, to identify the eligible facilities of HNSL, HSMC and Lam 
and to identify the items that may be exported, reexported or 
transferred (in-country) to HSCL's, HSMC's and Lam's specified eligible 
facilities under Authorization VEU. The names and addresses of these 
newly approved validated end-users and their eligible facilities are as 
follows:

Validated End-Users

Hynix Semiconductor China Ltd.
Hynix Semiconductor (Wuxi) Ltd.
Lam Research Corporation.

Eligible Destination for Hynix Semiconductor China Ltd.

Hynix Semiconductor China Ltd., Lot K7/K7-1, Export Processing Zone, 
Wuxi, Jiangsu, PR China.

Eligible Destination for Hynix Semiconductor (Wuxi) Ltd.

Hynix Semiconductor (Wuxi) Ltd., Lot K7/K7-1, Export Processing Zone, 
Wuxi, Jiangsu, PR China.

Eligible Items That May Be Exported, Reexported or Transferred (In-
Country) to the Two Eligible Destinations (Facilities) Under HSCL's and 
HSMC's Validated End-User Authorizations

Equipment for the manufacturing of semiconductor devices or materials 
classified under Export Control Classification Numbers (ECCNs) 3B001.a, 
3B001.b, 3B001.c, 3B001.d, 3B001.e, and 3B001.f.

Eligible Destinations for Lam Research Corporation

Lam Research (Shanghai) Service Co., 1st Floor, Area C, Hua Hong 
Science & Technology Park, 177 Bi Bo Road, Zhangjiang Hi-Tech Park, 
Pudong, Shanghai, China 201203.
Lam Research Shanghai Co., Ltd., No. 1 Jilong Rd., Room 424-2, 
Waigaoqiao Free Trade Zone, Shanghai, China 200131.
Lam Research International Sarl (Shanghai TSS), c/o HMG Logistic 
(Shanghai) Co., Ltd., No.55, West Shang Feng Road, Tangzhen, Pudong New 
Area, Shanghai, China 201203.
Lam Research Shanghai Co., Ltd. (Shanghai WGQ Bonded Warehouse), No. 
55, Fei la Road, Waigaoqiao Free Trade Zone, Pudong New Area, Shanghai, 
China 200131.
Lam Research Co., Ltd. (Beijing Branch), Room 322 Dadi Mansion, No. 18 
Hongda Beilu, Beijing Economic & Technological Development Area, 
Beijing, China 100176.
Lam Research Co., Ltd. (Wuxi Representative Office), 5E, Bldg. C, 
International Science & Technology Park, 2 Taishan Road, WND, 
Wuxi, Jiangsu, China 214028.
Lam Research International Sarl (Wuxi EPZ Bonded Warehouse), c/o HMG 
WHL Logistic (Wuxi) Co., Ltd., F1, Area 4, No. 1, Plot J3, No. 5 
Gaolang East Road, Export Processing Zone, Wuxi, China 214028,
Lam Research Co., Ltd. (Wuhan Representative Office), Room 1810, 
Guanggu International Building B,

[[Page 62464]]

456 Luoyu Road, East-Lake Hi-Tech Development Zone, Wuhan City, Hubei 
Province, China 430074.
Lam Research International Sarl (Wuhan TSS), c/o HMG Wuhan Logistic 
Co., Ltd., 1st--2nd Floor, No. 5 Building, Hua Shi Yuan Er Road, 
Optical Valley Industry Park, East-Lake Hi-Tech Development Zone, Wuhan 
City, Hubei Province, China 430223.

Eligible Items That May Be Exported, Reexported or Transferred (In-
Country) to the Nine Eligible Destinations (Facilities) Under Lam's 
Validated End-User Authorization

Items classified under Export Control Classification Numbers (ECCNs) 
2B230, 2B350.c, 2B350.d, 2B350.g, 2B350.h, 2B350.i, 3B001.c, 3B001.e 
(items controlled under 3B001.c and 3B001.e are limited to parts and 
components) 3D001, 3D002 (limited to ``software'' specially designed 
for the ``use'' of stored program controlled items classified under 
ECCN 3B001), and 3E001 (limited to ``technology'' according to the 
General Technology Note for the ``development'' of equipment controlled 
by ECCN 3B001).
    Approving these end-users as validated end-users is expected to 
further facilitate exports to civilian end-users in the PRC, and is 
expected to result in a significant savings of time and resources for 
suppliers and the eligible facilities. Authorization VEU eliminates the 
burden on exporters and reexporters of preparing individual license 
applications, as exports, reexports and transfers (in-country) of 
eligible items to these facilities may now be made under general 
authorization instead of under individual licenses. With this change, 
exporters and reexporters can supply validated end-users in the PRC 
much more quickly, thus enhancing the competitiveness of the exporters, 
reexporters, and end-users in the PRC.
    To ensure appropriate facilitation of exports and reexports, on-
site reviews of validated end-users may be warranted pursuant to 
paragraph 748.15(f)(2) and section 7(iv) of Supplement No. 8 to Part 
748 of the EAR. If such reviews are warranted, BIS will inform the PRC 
Ministry of Commerce.
    Since August 21, 2001, the Export Administration Act has been in 
lapse and the President, through Executive Order 13222 of August 17, 
2001 (3 CFR, 2001 Comp., p. 783 (2002)), as extended most recently by 
the Notice of August 12, 2010 (75 FR 50681 (August 16, 2010), has 
continued the EAR in effect under the International Emergency Economic 
Powers Act. BIS continues to carry out the provisions of the Act, as 
appropriate and to the extent permitted by law, pursuant to Executive 
Order 13222.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    2. This rule involves collections previously approved by the OMB 
under control number 0694-0088, ``Multi-Purpose Application,'' which 
carries a burden hour estimate of 58 minutes to prepare and submit form 
BIS-748; and for recordkeeping, reporting and review requirements in 
connection with Authorization Validated End-User, which carries and 
estimated burden of 30 minutes per submission. This rule is expected to 
result in a decrease in license applications submitted to BIS. Total 
burden hours associated with the Paperwork Reduction Act and Office of 
Management and Budget control number 0694-0088 are not expected to 
increase significantly as a result of this rule.
    Notwithstanding any other provisions of law, no person is required 
to respond to nor 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.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C. 
553(b)(B), BIS finds good cause to waive requirements that the rule be 
subject to notice and the opportunity for public comment because such 
notice and comment here are unnecessary. In determining whether to 
grant validated end-user designations, a committee of U.S. Government 
agencies evaluates information about candidate companies and 
commitments made by candidate companies, the nature and terms of which 
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for 
evaluation by the committee are set forth in 15 CFR Sec.  748.15(a)(2).
    The information, commitments and criteria for this extensive review 
were all established through the notice of proposed rulemaking and 
public comment process (71 FR 38313, July 2, 2006 and 72 FR 33646, June 
19, 2007). Given the similarities between the authorizations provided 
under Validated End-User (VEU) and export licenses (as discussed 
further below), the publication of this information does not establish 
any new policy; in publishing this final rule, BIS is simply adding 
validated end-users within the established regulatory framework of the 
VEU program. Further, this rule does not abridge the rights of the 
public or eliminate the public's option to export under any of the 
forms of authorization set forth in the EAR.
    Publication of this rule in other than final form is unnecessary 
because the authorization granted in the rule is similar to that 
granted to exporters for individual licenses, which do not undergo 
public review. Individual license application applicants and VEU 
authorization applicants both provide the U.S. Government with 
confidential business information. This information is extensively 
reviewed according to the criteria for VEU authorizations, as set out 
in 15 CFR 748.15(a)(2). Like individual export licenses, VEU 
applications are vetted by an interagency committee drawing on public 
and non-public sources, including licensing data, and measured against 
the VEU authorization criteria. The authorizations granted under the 
VEU program, and through individual export licenses, involve 
interagency deliberation according to set criteria. Given the thorough 
nature of the review, and in light of the parallels between this 
process and the non-public review of license applications, public 
comment on this authorization prior to publication is unnecessary. 
Moreover, as noted above, the criteria and process for authorizing VEUs 
were developed with public comments; allowing additional public comment 
on this individual VEU authorization, which was determined according to 
those criteria, is therefore unnecessary.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than 30 days after they are published in the 
Federal Register. However, section 553(d)(1) of the APA provides that a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction, may take effect earlier. Today's final rule grants an 
exemption from licensing procedures, so we make this final rule 
effective immediately.
    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

[[Page 62465]]

not applicable and no regulatory flexibility analysis has been 
prepared.

List of Subjects in 15 CFR Part 748

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

0
Accordingly, part 748 of the Export Administration Regulations (15 CFR 
Parts 730-774) is amended as follows:

PART 748--[AMENDED]

0
1. The authority citation for 15 CFR Part 748 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 12, 2010, 75 
FR 50681 (August 16, 2010).

0
2. Supplement No. 7 to Part 748 is amended by adding three entries, 
``Hynix Semiconductor China Ltd.'', ``Hynix Semiconductor (Wuxi) 
Ltd.'', and ``Lam Research Corporation'', in ``China (People's Republic 
of)'' in alphabetical order to read as follows:

SUPPLEMENT NO. 7 TO PART 748--AUTHORIZATION VALIDATED END-USER (VEU); 
LIST OF VALIDATED END-USERS, RESPECTIVE ITEMS ELIGIBLE FOR EXPORT, 
REEXPORT AND TRANSFER AND ELIGIBLE DESTINATIONS

--------------------------------------------------------------------------------------------------------------------------------------------------------
               Country                   Validated end-user      Eligible items (by ECCN)                       Eligible destination
--------------------------------------------------------------------------------------------------------------------------------------------------------
China (People's Republic of)
                                                                      * * * * * * *
                                      Hynix Semiconductor      3B001.a, 3B001.b, 3B001.c,   Hynix Semiconductor China Ltd. Lot K7/K7-1, Export
                                       China Ltd.               3B001.d, 3B001.e, and        Processing Zone Wuxi, Jiangsu, PR China.
                                                                3B001.f.
                                      Hynix Semiconductor      3B001.a, 3B001.b, 3B001.c,   Hynix Semiconductor (Wuxi) Ltd., Lot K7/K7-1, Export
                                       (Wuxi) Ltd.              3B001.d, 3B001.e, and        Processing Zone, Wuxi, Jiangsu, PR, China.
                                                                3B001.f.
                                      Lam Research             2B230, 2B350.c, 2B350.d,     Lam Research (Shanghai) Service Co., 1st Floor, Area C, Hua
                                       Corporation.             2B350.g, 2B350.h, 2B350.i,   Hong Science & Technology Park, 177 Bi Bo Road Zhangjiang
                                                                3B001.c, 3B001.e (items      Hi-Tech Park, Pudong, Shanghai, China 201203.
                                                                controlled under 3B001.c    Lam Research Shanghai Co., Ltd., No. 1 Jilong Rd., Room 424-
                                                                and 3B001.e are limited to   2, Waigaoqiao Free Trade Zone, Shanghai, China 200131.
                                                                parts and components),      Lam Research International Sarl (Shanghai TSS), c/o HMG
                                                                3D001, 3D002 (limited to     Logistic (Shanghai), Co., Ltd., No.55, West Shang Feng Road
                                                                ``software'' specially       , Tangzhen, Pudong New Area, Shanghai, China 201203.
                                                                designed for the ``use''    Lam Research Shanghai Co., Ltd., (Shanghai WGQ Bonded
                                                                of stored program            Warehouse), No. 55, Fei la Road, Waigaoqiao Free Trade
                                                                controlled items             Zone, Pudong New Area, Shanghai, China 200131.
                                                                classified under ECCN       Lam Research Co., Ltd. (Beijing Branch), Room 322 Dadi
                                                                3B001), and 3E001 (limited   Mansion, No. 18 Hongda Beilu Beijing Economic &
                                                                to ``technology''            Technological Development Area, Beijing, China 100176.
                                                                according to the General    Lam Research Co., Ltd. (Wuxi Representative Office), 5E,
                                                                Technology Note for the      Bldg. C International Science & Technology Park, 2
                                                                ``development'' of           Taishan Road, WND, Wuxi, Jiangsu, China 214028.
                                                                equipment controlled by     Lam Research International Sarl (Wuxi EPZ Bonded Warehouse)
                                                                ECCN 3B001).                 c/o HMG WHL Logistic (Wuxi) Co., Ltd., F1, Area 4, No. 1,
                                                                                             Plot J3, No. 5 Gaolang East Road, Export Processing Zone,
                                                                                             Wuxi, China 214028.
                                                                                            Lam Research Co., Ltd. (Wuhan Representative Office), Room
                                                                                             1810, Guanggu International Building B, 456 Luoyu Road,
                                                                                             East-Lake Hi-Tech Development Zone, Wuhan City, Hubei
                                                                                             Province, China 430074.
                                                                                            Lam Research International Sarl (Wuhan TSS), c/o HMG Wuhan
                                                                                             Logistic Co., Ltd., 1st--2nd Floor, No. 5 Building, Hua Shi
                                                                                             Yuan Er Road, Optical Valley Industry Park, East-Lake Hi-
                                                                                             Tech Development Zone, Wuhan City, Hubei Province, China
                                                                                             430223.

                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 62466]]

    Dated: October 4, 2010.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2010-25438 Filed 10-8-10; 8:45 am]
BILLING CODE 3510-33-P