Document ID: BIS-2015-0014-0001
Agency: bis
Document Type: Rule
Title: Existing Validated End-User Authorization in the People's Republic of China: Samsung China Semiconductor Co. Ltd.
Posted Date: 2015-03-05T05:00Z

[Federal Register Volume 80, Number 43 (Thursday, March 5, 2015)]
[Rules and Regulations]
[Pages 11863-11865]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-05085]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 150206120-5120-01]
RIN 0694-AG50

Amendments to Existing Validated End-User Authorization in the 
People's Republic of China: Samsung China Semiconductor Co. Ltd.

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 (EAR) to revise the existing 
authorization for Validated End User Samsung China Semiconductor Co. 
Ltd. (Samsung China) in the People's Republic of China (PRC). 
Specifically, BIS amends Supplement No. 7 to Part 748 of the EAR to add 
two items to Samsung China's eligible items that may be exported, 
reexported or transferred (in country) to the company's eligible 
facilities (also known as ``eligible destinations'') in the PRC.

DATES: This rule is effective March 5, 2015.

FOR FURTHER INFORMATION CONTACT: Mi-Yong Kim, Chair, End-User Review 
Committee, Office of the Assistant Secretary, Export Administration, 
Bureau of Industry and Security, U.S. Department of Commerce, Phone: 
202-482-5991; Fax: 202-482-3911; Email: ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User

    Validated End-Users (VEUs) are designated entities located in 
eligible destinations to which eligible items may be exported, 
reexported, or transferred (in-country) under a general authorization 
instead of a license. The names of the VEUs, as well as the dates they 
were so designated, and their respective eligible destinations and 
items are identified in Supplement No. 7 to Part 748 of the EAR. Under 
the terms described in that supplement, VEUs may obtain eligible items 
without an export license from BIS, in conformity with Section 748.15 
of the EAR. Eligible items vary between VEUs and may include 
commodities, software, and technology, except those controlled for 
missile technology or crime control reasons on the Commerce Control 
List (CCL) (part 774 of the EAR).
    VEUs are 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. The End-User Review Committee (ERC), composed of 
representatives from the Departments of State, Defense, Energy, and 
Commerce, and other agencies, as appropriate, is responsible for 
administering the VEU program. BIS amended the EAR in a final rule 
published on June 19, 2007 (72 FR 33646) to create Authorization VEU.

Amendment to Existing VEU Authorization for Samsung China Semiconductor 
Co. Ltd (Samsung China) in the People's Republic of China (PRC)

Revision to the List of ``Eligible Items (by ECCN)'' for Samsung China

    In this final rule, BIS amends Supplement No. 7 to Part 748 to add 
two Export Control Classification Numbers (ECCNs), 2B006.a and 
2B006.b.1.d, to the list of items that may be exported, reexported or 
transferred (in-country) to Samsung China's facility in the PRC under 
Authorization VEU. The revised list of eligible items for Samsung China 
is as follows:

Eligible Items (by ECCN) That May Be Exported, Reexported or 
Transferred (In-Country) to the Eligible Destination Identified Under 
Samsung China Semiconductor Co. Ltd.'s Validated End-User Authorization

    1C350.c.3, 1C350.d.7, 2B006.a, 2B006.b.1.d, 2B230, 2B350.d.2, 
2B350.g.3, 2B350.i.3, 3A233, 3B001.a.1, 3B001.b, 3B001.c, 3B001.e, 
3B001.f, 3B001.h, 3C002, 3C004, 3D002, and 3E001 (limited to 
``technology'' for items classified under 3C002 and 3C004 and 
``technology'' for use consistent with the International Technology 
Roadmap for Semiconductors process for items classified under ECCNs 
3B001 and 3B002).

Export Administration Act

    Since August 21, 2001, the Export Administration Act of 1979, as 
amended, has been in lapse. However, the President, through Executive 
Order 13222 of August 17, 2001, 3 CFR 2001 Comp., p. 783 (2002), as 
amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 
13, 2013), and as extended by the Notice of August 7, 2014, 79 FR 46959 
(August 11, 2014) has continued the EAR in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 
BIS continues to carry out the provisions of the Export Administration 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222, as amended by Executive Order 13637.

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, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
This rule has been determined to be not significant for purposes of 
Executive Order 12866.
    2. This rule involves collections previously approved by the Office 
of Management and Budget (OMB) under Control Number 0694-0088, ``Multi- 
Purpose Application,'' which carries a burden hour estimate of 43.8 
minutes to prepare and submit form BIS-748; and for recordkeeping, 
reporting and review requirements in connection with Authorization VEU, 
which carries an 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 of 1995 (44 U.S.C. 3501 et seq.) (PRA) and OMB 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

[[Page 11864]]

collection of information subject to the requirements of the PRA, 
unless that collection of information displays a currently valid 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 this rule be 
subject to notice and the opportunity for public comment because they 
are unnecessary. In determining whether to grant VEU designations, a 
committee of U.S. Government agencies evaluates information about 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 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 6, 2006) (proposed rule), and 72 FR 
33646 (June 19, 2007) (final rule)). Given the similarities between the 
authorizations provided under the VEU program and export licenses (as 
discussed further below), the publication of this information does not 
establish new policy. Publication of this rule in other than final form 
is unnecessary because the authorizations granted in the rule are 
consistent with the authorizations granted to exporters for individual 
licenses (and amendments or revisions thereof), which do not undergo 
public review. In addition, as with license applications, VEU 
authorization applications contain confidential business information, 
which is necessary for the extensive review conducted by the U.S. 
Government in assessing such applications. This information is 
extensively reviewed according to the criteria for VEU authorizations, 
as set out in 15 CFR 748.15(a)(2). Additionally, just as the 
interagency reviews license applications, the authorizations granted 
under the VEU program involve interagency deliberation and result from 
review of public and non-public sources, including licensing data, and 
the measurement of such information against the VEU authorization 
criteria. Given the nature of the review, and in light of the parallels 
between the VEU application review process and the review of license 
applications, public comment on this authorization and subsequent 
amendments prior to publication is unnecessary. Moreover, because, as 
noted above, the criteria and process for authorizing and administering 
VEUs were developed with public comments, allowing additional public 
comment on this amendment to individual VEU authorizations, which was 
determined according to those criteria, is unnecessary.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than thirty (30) days after they are published in 
the Federal Register. BIS finds good cause to waive the 30- day delay 
in effectiveness under 5 U.S.C. 553(d)(3) because the delay would be 
contrary to the public interest. BIS is simply amending the 
authorization of an existing VEU by adding two ECCNs to the list of 
eligible items that may be sent to that VEU, consistent with 
established objectives and parameters administered and enforced by the 
responsible designated departmental representatives to the End-User 
Review Committee. Delaying this action's effectiveness could cause 
confusion regarding which items are authorized by the U.S. Government 
and in turn stifle the purpose of the VEU Program. Accordingly, it is 
contrary to the public interest to delay this rule's effectiveness.
    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 under the APA or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. As a result, no final regulatory flexibility 
analysis is required and none has been prepared.

List of Subjects in 15 CFR Part 748

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

    Accordingly, part 748 of the EAR (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 7, 2014, 79 FR 
46959 (August 11, 2014).

0
2. Amend Supplement No. 7 to Part 748 by revising the entry for 
``Samsung China Semiconductor Co. Ltd.'' in ``China (People's Republic 
of)'' 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
----------------------------------------------------------------------------------------------------------------
                               Validated  end-   Eligible items (by                           Federal Register
           Country                   user               ECCN)         Eligible destination        citation
----------------------------------------------------------------------------------------------------------------
 Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
                                              to Sec.   748.15(c).
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                                                  * * * * * * *
                               Samsung China    1C350.c.3,            Samsung China         78 FR 41291, 7/10/
                                Semi conductor   1C350.d.7, 2B006.a,   Semiconductor Co.     13. 78 FR 69535, 11/
                                Co. Ltd.         2B006.b.1.d, 2B230,   Ltd. No. 1999,        20/13. 79 FR 30713,
                                                 2B350.d.2,            North Xiaohe Road     5/29/14. 80 FR
                                                 2B350.g.3,            Xi'an, China 710119.  [INSERT PAGE
                                                 2B350.i.3, 3A233,                           NUMBER], March 5,
                                                 3B001.a.1, 3B001.b,                         2015.
                                                 3B001.c, 3B001.e,
                                                 3B001.f, 3B001.h,
                                                 3C002, 3C004,
                                                 3D002, and 3E001
                                                 (limited to
                                                 ``technology'' for
                                                 items classified
                                                 under 3C002 and
                                                 3C004 and
                                                 ``technology'' for
                                                 use consistent with
                                                 the International
                                                 Technology Roadmap
                                                 for Semiconductors
                                                 process for items
                                                 classified under
                                                 ECCNs 3B001 and
                                                 3B002).
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

[[Page 11865]]

    Dated: February 27, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-05085 Filed 3-4-15; 8:45 am]
 BILLING CODE 3510-33-P