Document ID: BIS-2016-0040-0002
Agency: bis
Document Type: Rule
Title: Commerce Control List: Removal of Certain Nuclear Nonproliferation Column 2 Controls
Posted Date: 2017-02-01T05:00Z

[Federal Register Volume 82, Number 20 (Wednesday, February 1, 2017)]
[Rules and Regulations]
[Pages 8893-8894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02164]

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  Federal Register / Vol. 82, No. 20 / Wednesday, February 1, 2017 / 
Rules and Regulations  

[[Page 8893]]

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 160718621-7125-02]
RIN 0694-AH04

Commerce Control List: Removal of Certain Nuclear 
Nonproliferation (NP) Column 2 Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule; delay of implementation date.

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SUMMARY: In accordance with the memorandum of January 20, 2017, from 
the Assistant to the President and Chief of Staff, entitled 
``Regulatory Freeze Pending Review,'' published in the Federal Register 
on January 24, 2017 (the Memorandum), this action temporarily delays 
the implementation date of one revision implemented by the final rule 
entitled ``Commerce Control List: Removal of Certain Nuclear 
Nonproliferation (NP) Column 2 Controls'' published by the Bureau of 
Industry and Security (BIS) in the Federal Register on November 25, 
2016. The final rule amended the Export Administration Regulations 
(EAR) to remove nuclear nonproliferation (NP) Column 2 license 
requirements from certain pressure tubes, pipes, fittings, pipe valves, 
pumps, numerically controlled machine tools, oscilloscopes, and 
transient recorders on the Commerce Control List (CCL).

DATES: This rule is effective January 31, 2017. ``Software'' 
``specially designed'' for the ``development,'' ``production,'' or 
``use'' of items previously controlled under ECCN 3A292, as discussed 
in the final rule published in the Federal Register of November 25, 
2016 (81 FR 85138), will continue to be classified and licensed by BIS 
under the designation EAR99 through a delayed date of March 21, 2017. 
As of March 22, 2017, such ``software'' will be classified and licensed 
by BIS under ECCN 3D991.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Director, Nuclear and 
Missile Technology Controls Division, Office of Nonproliferation and 
Treaty Compliance, Bureau of Industry and Security, Telephone: (202) 
482-1641.

SUPPLEMENTARY INFORMATION: 

Background

    On November 25, 2016, the Bureau of Industry and Security (BIS) 
published a final rule entitled ``Commerce Control List: Removal of 
Certain Nuclear Nonproliferation (NP) Column 2 Controls'' (81 FR 85138) 
to amend the Export Administration Regulations (EAR) to remove nuclear 
nonproliferation (NP) Column 2 license requirements from certain 
pressure tubes, pipes, fittings, pipe valves, pumps, numerically 
controlled machine tools, oscilloscopes, and transient recorders on the 
Commerce Control List (CCL). These changes were intended to revise the 
EAR controls on these items by making them more consistent with the 
export controls of other countries that manufacture these items and 
that, together with the United States, are participating countries in 
the Nuclear Suppliers Group (NSG). As a result of the changes made by 
this rule, some of these items were no longer listed under an Export 
Control Classification Number (ECCN) on the CCL. However, such items 
remain subject to the EAR under the designation EAR99. This rule also 
created four new ECCNs to maintain anti-terrorism (AT) controls on 
certain affected commodities and related ``software'' and 
``technology.'' All items subject to the EAR, regardless of whether 
they are listed on the CCL, may require a license for reasons described 
elsewhere in the EAR (e.g., license requirements based on end-user/end-
use controls, embargoes, or other special controls).
    All but one of the changes made by this rule were implemented on 
the date of publication, November 25, 2016. A consequence of the 
amendment of ECCN 3A992 to add certain oscilloscopes and transient 
recorders under new paragraphs 3A992.d through .g, was that ECCN 3D991, 
which includes certain ``software'' for general purpose electronic 
equipment described in ECCN 3A992, then also controlled ``software'' 
for the ``development,'' ``production,'' or ``use'' of the 
oscilloscopes and transient recorders described in new 3A992.d through 
.g. Such ``software'' had been classified and licensed by BIS under the 
designation EAR99, and its classification under 3D991 imposed a foreign 
policy control on the ``software'' for anti-terrorism reasons. BIS must 
notify Congress before imposing such a control. This modification in 
the application of foreign policy controls under the EAR was addressed 
in BIS's ``2017 Report on Foreign Policy-Based Export Controls,'' 
submitted to the Congress in January 2017. Therefore, the November 25 
rule delayed the implementation of this control through January 31, 
2017. Effective February 1, 2017, such ``software'' would have been 
classified and licensed by BIS under ECCN 3D991 and would have required 
a license to destinations indicated under Anti-Terrorism (AT) Column 1 
on the Commerce Country Chart.

Provisions of This Action

    This action delays the implementation date of the imposition of 
anti-terrorism controls on ``software'' ``specially designed'' for the 
``development,'' ``production,'' or ``use'' of items previously 
controlled under ECCN 3A292 but reclassified by the November 25 rule. 
Such ``software'' had been classified and licensed by BIS under the 
designation EAR99; as a result of the November 25 rule, it will be 
classified and licensed by BIS under ECCN 3D991. The implementation 
date of this change had been January 31, 2017, but this action delays 
the implementation date to March 21, 2017. This action is issued in 
accordance with the Memorandum that required temporary postponement of 
rules that have been published in the Federal Register but have not yet 
taken effect, for 60 days from the date of the Memorandum for the 
purpose of reviewing questions of fact, law, and policy.

Determination of Exemption From Notice and Comment

    To the extent that the requirements of 5 U.S.C. 553 apply to this 
action, there is good cause to exempt this action from notice and 
comment pursuant to 5 U.S.C. 553(b)(B). BIS is delaying the

[[Page 8894]]

effective date for this action to give DOC officials the opportunity to 
further review and consider the revision, consistent with the 
Memorandum. The rule published November 25 containing the revision was 
exempt from notice and comment because it involved a military and 
foreign affairs function of the United States (See 5 U.S.C. 553(a)(1)). 
Given the imminence of the new effective date, seeking prior public 
comment on this temporary delay would be impractical, unnecessary, and 
also contrary to the public interest in the orderly promulgation and 
implementation of regulations.

    Dated: January 27, 2017.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2017-02164 Filed 1-31-17; 8:45 am]
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