Document ID: BIS-2010-0017-0001
Agency: bis
Document Type: Rule
Title: Addition to the List of Validated End-Users: Advanced Micro Devices China, Inc.
Posted Date: 2010-05-10T04:00Z

[Federal Register: May 10, 2010 (Volume 75, Number 89)]
[Rules and Regulations]               
[Page 25763-25765]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10my10-3]                         

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 100205080-0187-01]
RIN 0694-AE87

 
Addition to the List of Validated End-Users: Advanced Micro 
Devices China, Inc.

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) to add an end-user 
to the list of validated end-users in the People's Republic of China 
(PRC). Exports, reexports and transfers (in-country) of certain items 
to three facilities of this end-user are now authorized under 
Authorization Validated End-User (VEU).

DATES: This rule is effective May 10, 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-AE87, by any 
of the following methods:
    E-mail: publiccomments@bis.doc.gov Include ``RIN 0694-AE87'' 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-AE87.
    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-AE87)--all comments on the 
latter should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Susan Kramer, Acting Chairman, End-
User Review Committee, Bureau of Industry and Security, U.S. Department

[[Page 25764]]

of Commerce, 14th Street & Pennsylvania Avenue, NW., Washington, DC 
20230; by telephone (202) 482-0117, or by e-mail to 
skramer@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 an individually validated license, in 
conformance with Section 748.15 of the EAR. Validated end-users may 
obtain eligible items that are on the Commerce Control List without 
having to wait for their suppliers to obtain export or reexport 
licenses from BIS. Eligible items include commodities, software and 
technology, except those controlled for missile technology or crime 
control reasons. Authorization VEU may be used by U.S. and foreign 
reexporters, and does not have an expiration date.
    Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies that have a verifiable record of 
civilian uses for such items. The validated end-users listed in 
Supplement No. 7 to Part 748 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. Currently, validated 
end-users may be located in the PRC and India.

Additional Validated End-User in the PRC and Its Respective ``Eligible 
Items (By ECCN)'' and ``Eligible Destination''

    This final rule amends Supplement No. 7 to Part 748 of the EAR to 
identify the eligible facilities in the PRC of a company that has been 
designated a validated end-user, and to identify the items that may be 
exported, reexported or transferred (in-country) to the specified 
eligible facilities under Authorization VEU. The names and addresses of 
the newly approved validated end-user and its three eligible facilities 
are as follows:

Validated End-User

    Advanced Micro Devices China, Inc.

Eligible Destinations

    AMD Technologies (China) Co., Ltd., No. 88, Su Tong Road, Suzhou, 
China 215021.
    Advanced Micro Devices (Shanghai) Co., Ltd., Riverfront Harbor, 
Building 48, Zhangjiang Hi-Tech Park, 1387 Zhangdong Rd., Pudong, 
Shanghai, 201203.
    AMD Technology Development (Beijing) Co., Ltd., 18F, North 
Building, Raycom Infotech Park Tower C, No. 2 Science Institute South 
Rd., Zhong Guan Cun, Haidian District, Beijing, China 100190.
    The eligible items that may be sent to these facilities under 
Authorization VEU are classified under Export Control Classification 
Numbers (ECCNs) 3D002, 3D003, 3E001 (as it applies to ``technology'' 
for items classified under 3B001, 3B002, 3C002 and 3C004), 3E002, 
3E003.e (limited to the ``development'' and ``production'' of 
integrated circuits for commercial applications), 4D001, 4D002, 4D003 
and 4E001 (applicable to the ``development'' of products under ECCN 
4A003). This authorization was made based on an application submitted 
to BIS, which was reviewed by the interagency End-User Review 
Committee.
    Approving this end-user as a validated end-user and these three 
facilities 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, because exports, reexports, 
and transfers (in-country) of eligible items to these facilities may 
now be made under general authorization instead of under license. 
Exporters and reexporters may now supply validated end-users 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 the 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 13, 2009 (74 FR 41325 (August 14, 2009), 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. 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. 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.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(a)(1), 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. 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 rule 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

[[Page 25765]]

submitted to Sheila Quarterman, Regulatory Policy Division, Bureau of 
Industry and Security, U.S. Department of Commerce, 14th Street & 
Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230.

List of Subjects in 15 CFR Part 748

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

0
Accordingly, part 748 of the Export Administrative 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 13, 2009, 74 
FR 41325 (August 14, 2009).

0
2. Supplement No. 7 to Part 748 is amended by adding one entry for 
``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).....  Advanced Micro       3D002, 3D003, 3E001 (as it applies  AMD Technologies
                                    Devices China, Inc   to ``technology'' for items         (China) Co., Ltd
                                                         classified under 3B001, 3B002,      No. 88, Su Tong
                                                         3C002 and 3C004), 3E002, 3E003.e    Road, Suzhou, China
                                                         (limited to the ``development''     215021.
                                                         and ``production'' of integrated   Advanced Micro
                                                         circuits for commercial             Devices (Shanghai)
                                                         applications), 4D001, 4D002,        Co., Ltd.
                                                         4D003 and 4E001 (applicable to      Riverfront Harbor,
                                                         the ``development'' of products     Building 48,
                                                         under ECCN 4A003).                  Zhangjiang Hi-Tech
                                                                                             Park 1387 Zhangdong
                                                                                             Rd., Pudong,
                                                                                             Shanghai, 201203.
                                                                                            AMD Technology
                                                                                             Development
                                                                                             (Beijing) Co., Ltd.
                                                                                             18F, North Building
                                                                                             Raycom Infotech
                                                                                             Park Tower C, No. 2
                                                                                             Science Institute
                                                                                             South Rd., Zhong
                                                                                             Guan Cun, Haidian
                                                                                             District, Beijing,
                                                                                             China 100190.

                                                  * * * * * * *
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    Dated: May 3, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-11024 Filed 5-7-10; 8:45 am]
BILLING CODE 3510-33-P