Document ID: BIS-2015-0028-0001
Agency: bis
Document Type: Rule
Title: State Sponsor of Terrorism Designations: Cuba; Rescission
Posted Date: 2015-07-22T04:00Z

[Federal Register Volume 80, Number 140 (Wednesday, July 22, 2015)]
[Rules and Regulations]
[Pages 43314-43320]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17981]

[[Page 43314]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 736, 740, 742, 746, 748, 750, 758, 772, and 774

[Docket No. 150416374-5374-01]
RIN 0694-AG60

Cuba: Implementing Rescission of State Sponsor of Terrorism 
Designation

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule amends the Export Administration Regulations (EAR) 
to implement the rescission of Cuba's designation as a State Sponsor of 
Terrorism. Specifically, this rule removes anti-terrorism (AT) license 
requirements from Cuba and eliminates references to Cuba as a State 
Sponsor of Terrorism, but maintains preexisting license requirements 
for all items subject to the EAR unless authorized by a license 
exception. This rule also removes Cuba from Country Group E:1 
(terrorist supporting countries), which makes Cuba eligible for a 
general 25 percent de minimis level and portions of four license 
exceptions. The Secretary of State rescinded the designation of Cuba as 
a State Sponsor of Terrorism on May 29, 2015.

DATES: This rule is effective July 22, 2015.

FOR FURTHER INFORMATION CONTACT: Foreign Policy Division, Office of 
Nonproliferation and Treaty Compliance, Bureau of Industry and 
Security, Phone: (202) 482-4252.

SUPPLEMENTARY INFORMATION: 

Contents

I. Background
II. Removal of Anti-Terrorism Controls and Text Associating Cuba 
With Terrorism
III. Jurisdiction--Items That Are Subject to the Ear
    A. Items With More Than de minimis Controlled U.S. Origin 
Content
    B. Items That Are the Direct Product of U.S.-Origin National 
Security Technology or Software
IV. Provisions Impacted by Cuba's Removal From County Group E:1
V. Provisions Being Amended To Retain Existing Cuba-Related 
Requirements

I. Background

    The United States maintains a comprehensive embargo on trade with 
Cuba. Pursuant to that embargo, all items that are subject to the 
Export Administration Regulations (EAR) require a license for export or 
reexport to Cuba unless authorized by a license exception. The Bureau 
of Industry and Security (BIS) administers export and reexport 
restrictions on Cuba consistent with the goals of that embargo and with 
relevant law. Accordingly, BIS may issue specific or general 
authorizations in the form of licenses or license exceptions for 
transactions that support the goals of United States policy while the 
embargo remains in effect.
    On December 17, 2014, the President announced that the United 
States is taking steps to chart a new course in bilateral relations 
with Cuba and to further engage and empower the Cuban people. As one of 
these steps, the President directed the Secretary of State to review 
Cuba's designation as a State Sponsor of Terrorism and provide a report 
to the President within six months. Cuba was designated as a State 
Sponsor of Terrorism in 1982. Pursuant to Sections 6(a) and 6(j) of the 
Export Administration Act of 1979, as amended (EAA), State Sponsors of 
Terrorism are subject to anti-terrorism (AT) controls and certain other 
restrictions in the EAR. Once designated, a country remains a State 
Sponsor of Terrorism until its designation is rescinded in accordance 
with the relevant statutes (Section 6(j) of the EAA; Section 40 of the 
Arms Export Control Act of 1976, as amended; and Section 620A of the 
Foreign Assistance Act of 1961, as amended).
    There are two possible paths to rescission of a State Sponsor of 
Terrorism designation under the relevant statutes. The first requires 
the President to submit a report to Congress before the proposed 
rescission would take effect certifying that (1) there has been a 
fundamental change in the leadership and policies of the government of 
the country concerned, (2) the government is not supporting acts of 
international terrorism, and (3) the government has provided assurances 
that it will not support acts of international terrorism in the future. 
The second path requires that the President submit a report to 
Congress, at least 45 days before the proposed rescission would take 
effect, justifying the rescission and certifying the subject government 
has not provided any support for international terrorism for the 
preceding six-month period and has given assurances that it will not 
support acts of international terrorism in the future. The rescission 
of Cuba's designation was done consistent with the second path.
    On April 8, 2015, the Secretary of State completed the review 
requested by the President and submitted his analysis to the President 
recommending that Cuba should no longer be designated as a State 
Sponsors of Terrorism. On April 14, 2015, the President submitted to 
Congress the statutorily required report indicating the 
Administration's intent to rescind Cuba's State Sponsor of Terrorism 
designation, including the certification that Cuba has not provided any 
support for international terrorism during the previous six months; and 
that Cuba has provided assurances that it will not support acts of 
international terrorism in the future. The Secretary of State then made 
the final decision to rescind Cuba's designation as a State Sponsor of 
Terrorism, which was effective on May 29, 2015. Accordingly, this rule 
removes references to Cuba as a State Sponsor of Terrorism and removes 
anti-terrorism (AT) controls from Cuba.
    However, Cuba is still subject to a comprehensive embargo and, as 
specified in Sec.  746.2(a) of the EAR, a license is still required to 
export or reexport to Cuba any item subject to the EAR unless 
authorized by a license exception. Only those license exceptions listed 
in Sec.  746.2(a) may be used to export or reexport to Cuba. These 
requirements of Sec.  746.2(a) apply to all items subject to the EAR, 
including EAR99 items and items that are controlled on the Commerce 
Control List (CCL) only for AT reasons.

II. Removal of Anti-Terrorism Controls and Text Associating Cuba With 
Terrorism

    This rule removes:
     The reference to ``counter-terrorism'' from the licensing 
policy that applies to certain exports intended to provide support for 
the Cuban people that appears in Sec.  746.2(b)(4)(i) (which will be 
redesignated as Sec.  746.2(b)(3)(i));
     Sec.  746.2(c), which identifies Cuba as a country whose 
government has repeatedly provided support for acts of international 
terrorism;
     the references to ``terrorism'' and ``state sponsors of 
terrorism'' from Sec.  746.2(e), which describes the license 
requirements regarding Cuba of the U.S. Department of the Treasury, 
Office of Foreign Assets Control and the U.S. Department of State; and
     the word ``Cuba'' from the statements of anti-terrorism 
license requirements in Export Control Classification Numbers 1C350, 
1C355, 1C395, 2A994, 2D994 and 2E994.
    This rule also removes Cuba from the following provisions, which 
list countries that have been designated as State Sponsors of Terrorism 
or that have repeatedly supported acts of international terrorism: 
Sec.  742.1(d); Supplement No. 2 to part 742,

[[Page 43315]]

paragraphs (a) and (b)(1); Sec.  750.4(b)(6)(i); and Sec.  772.1, 
definition of ``countries supporting international terrorism.''
    Finally, this rule removes Cuba from Country Group E:1--Terrorist 
Supporting Countries--in Supplement No. 1 to Part 740--Country Groups. 
However, Cuba remains in Country Group E:2--Unilateral embargo. Cuba 
also remains in Country Groups D:2, D:3, and D:5. Because country 
groups are used to specify the countries that are subject to certain 
provisions of the EAR, particularly license exceptions, and to impose 
certain restrictions, removal of Cuba from Country Group E:1 can have 
effects elsewhere in the EAR as will be discussed below.

III. Jurisdiction--Items That Are Subject to the EAR

A. Items With More Than de minimis Controlled U.S. Origin Content

    The EAR apply to items that contain more than a de minimis amount 
of controlled U.S.-origin content including foreign-made items located 
outside the United States. For most items, the de minimis level is 10 
percent if the destination of the foreign-made item is in Country Group 
E:1 and 25 percent if the destination is elsewhere. The removal of Cuba 
from Country Group E:1 raises the de minimis level to 25 percent for 
most items destined for Cuba. Additionally, since Cuba is no longer in 
Country Group E:1, the 25 percent de minimis level now applies to 
certain foreign-made encryption items destined for Cuba that meet the 
criteria specified in Sec.  734.4(b)(1)(iii) of the EAR.
    With the general increase in the de minimis level to 25 percent, 
paragraph (b)(3) of Sec.  746.2, which described the circumstances 
under which foreign made items containing an insubstantial proportion 
of U.S. origin content (i.e., not exceeding 20 percent) would generally 
be considered favorably, is no longer needed, so this rule removes that 
paragraph.
    Foreign-made items destined for Cuba that incorporate U.S.-origin 
9x515 or ``600 series'' .y content continue to be subject to the EAR 
regardless of the level of U.S.-origin content, i.e., there is no de 
minimis for these items when destined for Cuba. To maintain this 
exclusion with respect to Cuba, this rule adds Country Group E:2 to the 
list of destinations (Country Group E:1 and the People's Republic of 
China) subject to that exclusion. Since 9x515 and ``600 series'' .y 
items are ``specially designed'' items transferred from the United 
States Munitions List to the CCL, this de minimis exclusion is still 
warranted for countries subject to unilateral embargo. Accordingly, BIS 
is amending Sec.  734.4(a)(6)(ii) to include Country Group E:2.

B. Items That Are the Direct Product of U.S.-Origin National Security 
Technology and Software

    The EAR apply to foreign-made national security items that are the 
direct product of U.S.-origin national security technology and 
software. Such items are subject to the EAR (and require a license) if 
destined to a country in Country Group D:1 or E:1. This rule retains 
Cuba as one of the destinations that is subject to this requirement by 
adding Country Group E:2 to Sec.  736.2(b)(3).

IV. Provisions Impacted by Cuba's Removal From County Group E:1

    The provisions of the four license exceptions described below 
contain restrictions that apply to countries in Country Group E:1 or to 
nationals of those countries. This section describes the restrictions 
that will no longer apply to Cuba or Cuban nationals as a result of 
Cuba's removal from Country Group E:1. This rule makes no change to the 
text of the four license exceptions because the removal of the 
restrictions results from the removal of Cuba from Country Group E:1 
and no changes to the text of the license exceptions are needed.

License Exception Servicing and Replacement of Parts and Equipment 
(RPL)

    The removal of Cuba from Country Group E:1 implicates only 
paragraph (a) of License Exception Servicing and Replacement of Parts 
and Equipment (RPL) in Sec.  740.10 because only paragraph (a), which 
authorizes export and reexport of one-for-one replacement parts for 
items previously lawfully exported, is authorized for Cuba in Sec.  
746.2 of the EAR. Since Cuba is no longer in Country Group E:1, the 
following exclusions to License Exception RPL, paragraph (a) no longer 
apply to Cuba: paragraph (a)(3)(iv), which excludes parts, components, 
accessories, or attachments to repair ``aircraft'' or commodities 
controlled for national security (NS) reasons; paragraph (a)(3)(v), 
which excludes parts, components, accessories, or attachments to repair 
explosives detection equipment classified under Export Control 
Classification Number (ECCN) 2A983 or related software classified under 
ECCN 2D983; and paragraph (a)(3)(vi) which excludes parts, components, 
accessories, or attachments to repair concealed object detection 
equipment classified under ECCN 2A984 or related software classified 
under ECCN 2D984.

License Exception Governments, International Organizations, 
International Inspections Under the Chemical Weapons Convention, and 
the International Space Station (GOV)

    Since Cuba is no longer in Country Group E:1, the following 
restrictions in License Exception GOV (Sec.  740.11) no longer apply to 
Cuban nationals: Paragraph (a)(2)(iv), which restricts physical or 
computational access by Country Group E:1 nationals to certain 
computers for authorized international safeguard use in connection with 
activities of the International Atomic Energy Agency and the European 
Atomic Energy Community; paragraph (d)(4), which restricts physical or 
computational access by Country Group E:1 nationals to certain 
computers for authorized international inspection and verification use 
in connection with the activities of the Organization for the 
Prohibition of Chemical Weapons; and paragraph (e)(7)(i), which 
precludes export, reexport or transfer (in-country) to Country Group 
E:1 nationals of items used to support the International Space Station. 
Additionally, paragraph (e)(8)(iii), which precludes return of parts 
for the International Space Station to destinations in Country Group 
E:1, no longer applies to Cuba.

License Exception Baggage (BAG)

    Since Cuba is no longer in Country Group E:1, Sec.  740.14(f)(1), 
which authorizes certain exports and reexports of encryption 
commodities and software subject to Encryption Items (EI) controls on 
the CCL by United States citizens and permanent resident aliens to 
destinations other than Country Group E:1, and Sec.  740.14(f)(2), 
which authorizes such exports and reexports by individuals other than 
nationals of a country in Country Group E:1, no longer apply to Cuba or 
Cuban nationals. Additionally, Sec.  740.14(g), which authorizes 
certain exports and reexports of technology by U.S. persons, but 
excludes in paragraph (g)(4) exports and reexports of encryption 
technology controlled in ECCN 5E002 to destinations in Country Group 
E:1, no longer applies to Cuba.

License Exception Aircraft, Vessels and Spacecraft (AVS)

    The removal of Cuba from Country Group E:1 implicates only 
paragraph (a) of License Exception Aircraft, Vessels and Spacecraft 
(AVS) in Sec.  740.15 because only paragraph (a), which authorizes 
aircraft on temporary

[[Page 43316]]

sojourn, is authorized for Cuba in Sec.  746.2 of the EAR. Since Cuba 
is no longer in Country Group E:1, Cuba is no longer subject to the 
following restrictions:
     Paragraph (a)(1)(i), which prohibits use of AVS for 
foreign registered aircraft that were transferred to a national of a 
country in Country Group E:1 while in the United States;
     Paragraph (a)(1)(ii), which prohibits use of AVS for 
foreign registered aircraft that are departing the United States for 
purpose of transfer to a national of a country in Country Group E:1;
     Paragraph (a)(2)(ii), which prohibits use of AVS for U.S. 
registered aircraft that are not operating under an Air Carrier 
Operating Certificate, Commercial Operating Certificate or Air Taxi 
Operating Certificate from using AVS for temporary sojourns to a 
country in Country Group E:1;
     Paragraph (a)(3)(iv), which prohibits principal 
maintenance in Country Group E:1 or right to control the principal 
place of maintenance by a national of a country in Country Group E:1;
     Paragraph (a)(3)(v), which prohibits location of spares in 
a destination in Country Group E:1;
     Paragraph (a)(3)(vi), which prohibits changing the place 
of registration to a destination in Country Group E:1;
     Paragraph (a)(3)(vii), which prohibits transfer of 
technology to a national of a country in Country Group E:1;
     Paragraph (a)(3)(viii), which prohibits aircraft bearing 
livery, colors or logos of a national of a country in Country Group 
E:1; and
     Paragraph (a)(3)(ix), which prohibits flying under a 
flight number issued to a national of a country in Country Group E:1.

V. Provisions Being Amended To Retain Existing Cuba-Related 
Requirements

    Although Cuba is removed from Country Group E:1, Cuba is still 
subject to a comprehensive embargo and, as specified in Sec.  746.2(a) 
of the EAR, a license is still required to export or reexport to Cuba 
any item subject to the EAR unless authorized by a license exception. 
This rule makes the changes described below to retain the applicability 
of certain provisions and license conditions to Cuba, consistent with 
the embargo, that would otherwise cease as a result of Cuba's removal 
from Country Group E:1. While Cuba was in Country Group E:1, a separate 
reference to Country Group E:2 would have had no effect on exports or 
reexports to Cuba. With the removal of Cuba from Country Group E:1, it 
is necessary to explicitly link these provisions and conditions to the 
embargo.

Written Assurance for License Exception Technology and Software Under 
Restriction (TSR)

    Before an exporter or reexporter is able to use License Exception 
Technology and Software under Restriction (TSR) in Sec.  740.6 of the 
EAR to export or reexport software or technology controlled for 
national security reasons, the exporter or reexporter must obtain a 
written assurance from the consignee that the software or technology 
transferred and its direct product will not be sent to destinations in 
Country Group D:1 or E:1 or released to nationals thereof. This rule 
retains that restriction with respect to Cuba by adding Country Group 
E:2 to those written assurance requirements. The need for a written 
assurance is appropriate for countries in Country Groups E:1 and E:2. 
However, until the removal of Cuba from Country Group E:1, listing both 
country groups would have been redundant.
    Note that License Exception TSR does not authorize exports or 
reexports to Cuba because it is not specified in Sec.  746.2(a)(1) of 
the EAR and because, by its terms, License Exception TSR is available 
only for destinations in Country Group B, which does not include Cuba.

Supplement No. 2 to Part 748--Unique Application and Submission 
Requirements

    Supplement No. 2 to Part 748 of the EAR describes information 
required to be included in license applications for certain specific 
situations. Paragraph (i)(2)(x) requires that technology intended to 
accompany any shipment to destinations in Country Group D:1 or E:1 be 
described in the application. Paragraph (o)(3)(i) requires applicants 
for licenses to export or reexport national security controlled 
technology to obtain a written assurance against transfer to 
destinations in Country Groups D:1 or E:1. This rule adds Country Group 
E:2 to both paragraphs to continue both requirements with respect to 
Cuba.

Export Clearance Requirements

    Part 758 of the EAR describes certain export clearance 
requirements. Section 758.1(b)(1) makes the $2,500 threshold below 
which most exports need not be filed in the Automated Export System 
(AES) inapplicable for exports to Country Group E:1 by requiring such 
filing for exports to Country Group E:1 regardless of value. This rule 
retains that requirement for exports to Cuba by adding Country Group 
E:2 to Sec.  758.1(b)(1).
    Section 758.2(b)(3) makes export to Country Group E:1 grounds for 
rejecting applications for post-departure filing in AES (i.e., 
authorization to file after the exporting carrier departs the port of 
export). This rule retains export to Cuba as a ground for rejection by 
adding Country Group E:2 to Sec.  758.2(b)(3).

License Condition General Order

    Supplement No. 1 to Part 736 of the EAR contains certain general 
orders. This rule adds General Order No. 3, which was reserved, to 
continue all restrictions on transactions with Cuba or Cuban nationals, 
by reference to Country Group E:1, that are contained in licenses 
issued prior to July 22, 2015. Certain licenses issued by BIS contain 
conditions that restrict the export, reexport, or transfer (in-country) 
to State Sponsors of Terrorism and countries subject to unilateral 
embargo by reference to Country Group E:1. Many of those restrictions 
were intended to apply to Cuba, not only as a State Sponsor of 
Terrorism but also as a country subject to unilateral embargo. However, 
BIS did not always list both Country Groups E:1 and E:2 in license 
conditions because, at the time, doing so would have been redundant. 
This general order applies those conditions to Country Groups E:1 and 
E:2. Licensees who seek authorization for transactions that are 
affected by General Order No. 3, may submit license applications that 
refer to General Order No. 3 and explain the reason for the request in 
Block 24 of the application. All license applications involving Cuba 
are reviewed pursuant to the licensing policy in Sec.  746.2(b) of the 
EAR.

ECCN 4A003

    This rule adds a reference to Country Group E:2 to the note that 
immediately follows the control table in ECCN 4A003. That note states 
that except for destinations in Country Group E:1, no license is 
required for computers with an Adjusted Peak Performance not exceeding 
8.0 weighted teraFLOPS. The addition of Country Group E:2 retains 
Cuba's status as a destination for which a license is required.

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of 
August

[[Page 43317]]

7, 2014, 79 FR 46959 (August 11, 2014), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. 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, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, the rule has been reviewed by the 
Office of Management and Budget (OMB).
    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 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) control number. This rule 
involves a collection of information approved under OMB control number 
0694-0088--Simplified Network Application Processing+ System (SNAP+) 
and the Multipurpose Export License Application, which are the methods 
for submitting all license applications, commodity classification 
requests and similar requests to BIS. The estimated annual total burden 
of all of those submissions is 31,833 hours. BIS believes that this 
rule will have no material impact on that burden. To the extent that it 
has any impact, this rule is likely to reduce the burden for two 
reasons. First, this rule might reduce the burden because it makes some 
transactions, primarily temporary sojourns in Cuba of general aviation 
aircraft, which would otherwise require a license, eligible for a 
license exception. Second, because this rule raises the percentage of 
U.S.-origin content that a foreign-made item must have before its 
export from abroad to Cuba becomes subject to the EAR, it reduces the 
number of foreign-made items that will need a license from BIS to be 
exported from abroad to Cuba.
    Send comments regarding this burden estimate or any other aspect of 
this collection of information, including suggestions for reducing the 
burden, to Jasmeet K. Seehra, Office of Management and Budget, by email 
at jseehra@omb.eop.gov or by fax to (202) 395-7285 and to William Arvin 
at william.arvin@bis.doc.gov.
    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 or foreign affairs function 
of the United States (See 5 U.S.C. 553(a)(1)). This rule is a part of 
the implementation of the rescission of Cuba's designation as a State 
Sponsor of Terrorism, which became effective on May 29, 2015. Delay in 
implementing this rule to obtain public comment would undermine the 
foreign policy objectives that the rule is intended to implement. 
Further, no other law requires that a notice of proposed rulemaking and 
an opportunity for public comment be given for this rule. Because a 
notice of proposed rulemaking and an opportunity for public comment are 
not required to be given for this rule under 5 U.S.C. 553, or by any 
other law, the requirements of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) are not applicable.

List of Subjects

15 CFR Part 734

    Administrative practice and procedure, Exports, Inventions and 
patents, Research, Science and technology.

15 CFR Parts 736 and 772

    Exports.

15 CFR Parts 740, 748, 750, and 758

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Parts 746 and 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 734, 736, 740, 742, 746, 748, 750, 758, 772, and 
774 of the Export Administration Regulations (15 CFR parts 730-774) are 
amended as follows:

PART 734--[AMENDED]

0
1. The authority citation for 15 CFR part 734 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013); 
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of 
November 7, 2014, 79 FR 67035 (November 12, 2014).

0
2. Section 734.4 is amended by revising paragraph (a)(6)(ii) to read as 
follows:

Sec.  734.4  De minimis U.S. content.

    (a) * * *
    (6) * * *
    (ii) There is no de minimis level for foreign-made items that 
incorporate U.S.-origin 9x515 or ``600 series'' .y items when destined 
for a country listed in Country Group E:1 or E:2 of Supplement No. 1 to 
part 740 of the EAR or for the People's Republic of China (PRC).
* * * * *

PART 736--[AMENDED]

0
3. The authority citation for 15 CFR part 736 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. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., 
p. 168; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); 
Notice of November 7, 2014, 79 FR 67035 (November 12, 2014); Notice 
of May 6, 2015, 80 FR 26815 (May 8, 2015).
    (6) * * *

0
4. Section 736.2 is amended by revising paragraphs (b)(3)(i) and (iii) 
to read as follows:

Sec.  736.2  General prohibitions and determination of applicability.

* * * * *
    (b) * * *
    (3) General Prohibition Three--Reexport and export from abroad of 
the foreign-produced direct product of U.S. technology and software 
(Foreign-Produced Direct Product Reexports)--(i) Country scope of 
prohibition. You may not, without a license or license exception, 
reexport any item subject to the scope of this General Prohibition

[[Page 43318]]

Three to a destination in Country Group D:1, E:1, or E:2 (See 
Supplement No.1 to part 740 of the EAR). Additionally, you may not, 
without a license or license exception, reexport or export from abroad 
any ECCN 0A919 commodities subject to the scope of this General 
Prohibition Three to a destination in Country Group D:1, D:3, D:4, D:5, 
E:1, or E:2.
* * * * *
    (iii) Country scope of prohibition for 9x515 or ``600 series'' 
items. You may not, except as provided in paragraphs (b)(3)(v) or (vi) 
of this section, reexport or export from abroad without a license any 
``600 series'' item subject to the scope of this General Prohibition 
Three to a destination in Country Groups D:1, D:3, D:4, D:5, E:1, or 
E:2 (see Supplement No. 1 to part 740 of the EAR). You may not, except 
as provided in paragraphs (b)(3)(v) or (vi) of this section, reexport 
or export from abroad without a license any 9x515 item subject to the 
scope of this General Prohibition Three to a destination in Country 
Groups D:5, E:1, or E:2 (see Supplement No. 1 to part 740 of the EAR).
* * * * *

0
5. Supplement No. 1 to part 736 is amended by revising the heading and 
paragraph (c) to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    (c) General Order No. 3:
    General Order No. 3 of July 22, 2015. Certain licenses issued by 
BIS prior to July 22, 2015 contain conditions that restrict the export, 
reexport, or transfer (in-country) to or within Country Group E:1 as 
specified in Supplement No. 1 to part 740 of the EAR. At the time those 
license were issued, Cuba was in Country Group E:1. Many of those 
restrictions were intended to apply to Cuba, not only as a State 
Sponsor of Terrorism but also as a country subject to unilateral 
embargo. However, BIS did not always list both Country Groups E:1 and 
E:2 in license conditions because, at the time, doing so would have 
been redundant. However, with the rescission of Cuba's designation as a 
State Sponsor of Terrorism and resultant removal from Country Group 
E:1, continuing those conditions with respect to Cuba is consistent 
with the embargo. Accordingly, all conditions that apply to Country 
Group E:1 on licenses issued prior to July 22, 2015 that are in effect 
on that date, are revised to apply to Country Groups E:1 and E:2 as 
specified in Supplement No. 1 to part 740 of the EAR. Licensees who 
seek authorization for transactions that are affected by this General 
Order No. 3 may submit license applications that refer to General Order 
No. 3 and explain the reason for the request in Block 24 of the 
application. All license applications involving Cuba are reviewed 
pursuant to the licensing policy in Sec.  746.2(b) of the EAR. The 
request should provide any available information in support of the 
argument that the transaction would be consistent with the licensing 
policy in Sec.  746.2(b) of the EAR.
* * * * *

PART 740--[AMENDED]

0
6. The authority citation for 15 CFR part 740 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. 7201 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).

Sec.  740.6  [Amended]

0
7. Section 740.6 is amended by removing the phrase ``D:1 or E:1'' 
wherever it appears in paragraphs (a)(1) and (2) and adding in its 
place the phrase ``D:1, E:1, or E:2''.

Supplement No. 1 to Part 740 [Amended]

0
8. Supplement No. 1 to part 740 is amended by removing the ``X'' from 
the row for Cuba in the E:1 column of the ``Country Group E'' table.

PART 742--[AMENDED]

0
9. The authority citation for 15 CFR part 742 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; 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 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Notice of August 7, 2014, 79 FR 46959 (August 11, 2014); Notice of 
November 7, 2014, 79 FR 67035 (November 12, 2014).

Sec.  742.1  [Amended]

0
10. Section 742.1 is amended by removing the word ``Cuba'' and the 
comma that follows it from each place that it appears in paragraph (d).

Supplement No. 2 to Part 742 [Amended]

0
11. Supplement No. 2 to part 742 is amended by removing the word 
``Cuba'' and the comma that follows it from paragraphs (a) and (b)(1).

PART 746--[AMENDED]

0
12. The authority citation for 15 CFR part 746 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. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899 
(January 16, 2007); Notice of August 7, 2014, 79 FR 46959 (August 
11, 2014); Notice of May 6, 2015, 80 FR 26815 (May 8, 2015).

0
13. Section 746.2 is amended by:
0
a. Removing paragraph (b)(3);
0
b. Redesignating paragraphs (b)(4), (5), and (6) as paragraphs (b)(3), 
(4), and (5), respectively;
0
c. Removing the phrase ``or counter-terrorism'' from the first sentence 
of newly designated paragraph (b)(3)(i);
0
d. Removing paragraph (c);
0
e. Redesignating paragraphs (d) and (e) as paragraphs (c) and (d), 
respectively; and
0
f. Revising newly designated paragraph (d).
    The revision to read as follows:

Sec.  746.2  Cuba.

* * * * *
    (d) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with Cuba or any Cuban national, as provided in 31 CFR 
part 515. Exporters and reexporters should consult with OFAC for 
further guidance on its related controls.

PART 748--[AMENDED]

0
14. 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).

Supplement No. 2 to Part 748 [Amended]

0
15. Supplement No. 2 to part 748 is amended by removing the phrase 
``Country Group D:1 or E:1'' wherever it appears in paragraphs 
(i)(2)(x) and (o)(3)(i) and adding in its place the phrase ``Country 
Group D:1, E:1, or E:2''.

[[Page 43319]]

PART 750--[AMENDED]

0
16. The authority citation for 15 CFR part 750 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3 
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013); 
Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 
16, 2003; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014).

Sec.  750.4  [Amended]

0
17. Section 750.4 is amended by removing the word ``Cuba'' and the 
comma immediately following it from paragraph (b)(6)(i).

PART 758--[AMENDED]

0
18. The authority citation for 15 CFR part 758 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
7, 2014, 79 FR 46959 (August 11, 2014).

Sec.  758.1  [Amended]

0
19. Section 758.1 is amended by adding the phrase ``or E:2'' 
immediately following the phrase ``Country Group E:1'' in paragraph 
(b)(1).

Sec.  758.2  [Amended]

0
20. Section 758.2 is amended by adding the phrase ``or E:2'' 
immediately following the phrase ``Country Group E:1'' in paragraph 
(b)(3).

PART 772--[AMENDED]

0
21. The authority citation for 15 CFR part 772 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
7, 2014, 79 FR 46959 (August 11, 2014).

Sec.  772.1  [Amended]

0
22. Section 772.1 is amended by removing the word ``Cuba'' and the 
comma that follows it from the definition of ``Countries supporting 
international terrorism.''

PART 774--[AMENDED]

0
23. The authority citation for 15 CFR part 774 continues to read as 
follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 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; Notice of August 7, 2014, 79 FR 46959 (August 11, 2014).

0
24. In supplement No. 1 to part 774 (The Commerce Control List), Export 
Control Classification Number (ECCN) 1C350 is amended by revising 
second paragraph that follows the License Requirements table to read as 
follows:

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

* * * * *

1C350 Chemicals that may be used as precursors for toxic chemical 
agents (see List of Items Controlled).

License Requirements

* * * * *
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for 
AT reasons in 1C350. A license is required, for AT reasons, to export 
or reexport items controlled by 1C350 to a country in Country Group E:1 
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR 
for additional information on the AT controls that apply to Iran, North 
Korea, Sudan, and Syria. See part 746 of the EAR for additional 
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *

0
25. In supplement No. 1 to part 774, ECCN 1C355 is amended by revising 
the second ``Control(s)'' paragraph to read as follows:

1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and 
families of chemicals not controlled by ECCN 1C350 or ``subject to the 
ITAR'' (see 22 CFR parts 120 through 130) (see List of Items 
Controlled).

License Requirements

* * * * *
    Control(s): * * *
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for 
AT reasons in 1C350. A license is required, for AT reasons, to export 
or reexport items controlled by 1C350 to a country in Country Group E:1 
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR 
for additional information on the AT controls that apply to Iran, North 
Korea, Sudan, and Syria. See part 746 of the EAR for additional 
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *

0
26. In supplement No. 1 to part 774, ECCN 1C395 is amended by revising 
the third ``Control(s)'' paragraph to read as follows:

1C395 Mixtures and Medical, Analytical, Diagnostic, and Food Testing 
Kits Not Controlled by ECCN 1C350, as follows (See List of Items 
Controlled).

License Requirements

* * * * *
    Control(s): * * *
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for 
AT reasons in 1C395. A license is required, for AT reasons, to export 
or reexport items controlled by 1C395 to a country in Country Group E:1 
of Supplement No. 1 to part 740 of the EAR. (See part 742 of the EAR 
for additional information on the AT controls that apply to Iran, North 
Korea, Sudan, and Syria. See part 746 of the EAR for additional 
information on sanctions that apply to Iran, North Korea, and Syria.)
* * * * *

0
27. In supplement No. 1 to part 774, ECCN 2A994 is amended by revising 
the ``Control(s)'' paragraph to read as follows:

2A994 Portable electric generators and ``specially designed'' ``parts'' 
and ``components.''

* * * * *
Control(s): AT applies to entire entry. A license is required for items 
controlled by this entry to Iran and North Korea. The Commerce Country 
Chart is not designed to determine licensing requirements for this 
entry. See part 746 of the EAR for additional information on Iran. See 
Sec.  742.19 of the EAR for additional information on North Korea.
* * * * *

0
28. In supplement No. 1 to part 774, ECCN 2D994 is amended by revising 
the ``Control(s)'' paragraph to read as follows:

2D994 ``Software'' ``specially designed'' for the ``development'' or 
``production'' of portable electric generators controlled by 2A994.

License Requirements

* * * * *
Control(s): AT applies to entire entry. A license is required for items 
controlled by this entry to Iran and North Korea for anti-terrorism 
reasons. The Commerce Country Chart is not designed to determine 
licensing requirements for this entry. See part 746 of the EAR for 
additional information on Iran. See Sec.  742.19 of the EAR for 
additional information on North Korea.
* * * * *

[[Page 43320]]

0
29. In supplement No. 1 to part 774, ECCN 2E994 is amended by revising 
the ``Control(s)'' paragraph to read as follows:

2E994 ``Technology'' for the ``use'' of portable electric generators 
controlled by 2A994.

License Requirements

* * * * *
Control(s): AT applies to entire entry. A license is required for items 
controlled by this entry to Iran and North Korea for anti-terrorism 
reasons. The Commerce Country Chart is not designed to determine 
licensing requirements for this entry. See part 746 of the EAR for 
additional information on Iran. See Sec.  742.19 of the EAR for 
additional information on North Korea.
* * * * *

ECCN 4A001--[Amended]

0
30. In supplement No. 1 to part 774, ECCN 4A003 is amended by adding 
the phrase ``or E:2'' immediately following the phrase ``Country Group 
E:1'' in the note that immediately follows the License Requirements 
table.

    Dated: July 17, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-17981 Filed 7-21-15; 8:45 am]
BILLING CODE 3510-33-P