Document ID: BIS-2016-0037-0001
Agency: bis
Document Type: Rule
Title: Export Administration Regulations: Optional Electronic Filing of Reports of Requests for Restrictive Trade Practice or Boycott
Posted Date: 2016-10-14T04:00Z

[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Rules and Regulations]
[Pages 70933-70935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24831]

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 760

[Docket No. 160303188-6188-01]
RIN 0694-AG92

Amendments to the Export Administration Regulations: Reporting 
Requirements Optional Electronic Filing of Reports of Requests for 
Restrictive Trade Practice or Boycott

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to permit electronic 
submission as an additional method available to United States persons 
for reporting requests they receive to take certain actions in 
furtherance or support of an unsanctioned foreign boycott, as required 
under the restrictive trade practices or boycotts provisions of the 
EAR. These amendments are administrative changes to those provisions' 
reporting requirements, which currently permit reporting of such 
requests solely by mail. BIS is making these amendments consistent with 
U.S. Government policy to modernize regulatory requirements and promote 
efficiency. This rule also makes conforming regulatory changes.

DATES: This rule is effective October 14, 2016.

FOR FURTHER INFORMATION CONTACT: Cathleen Ryan, Director, Office of 
Antiboycott Compliance, by telephone at (202) 482-0520 or by email at 
Cathleen.Ryan@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Restrictive Trade Practices or Boycotts

    Part 760 of the Export Administration Regulations (EAR) is entitled 
``RESTRICTIVE TRADE PRACTICES OR BOYCOTTS,'' otherwise referred to as 
the antiboycott provisions of the EAR. These provisions apply to, and 
may prohibit, certain activities in the interstate or foreign commerce 
of the United States undertaken by United States persons (defined in 
Sec.  760.1(b)) with intent to comply with, further or support an 
unsanctioned foreign boycott (see Sec.  760.1(e)). In addition, Sec.  
760.5(a)(1), Scope of Reporting Requirements, requires United States 
persons to report to the Department of Commerce (Department) certain 
requests they receive to take any ``action which has the effect of 
furthering or supporting a restrictive trade practice or boycott 
fostered or imposed by a foreign country against a country friendly to 
the United States or against any United States person. . . .'' 
(boycott-related requests). Section 760.5(b), Manner of Reporting, 
specifies the required reporting procedures; specifically, Sec.  
760.5(b)(4)--(b)(7) prescribe the manner of submission of the report to 
the Department. Failure to report such boycott-related requests in the 
manner prescribed may constitute a violation of the EAR.
    Prior to this rule, Sec.  760.5(b)(4) and (5) of the EAR required 
United States persons to prepare reports of boycott-related requests on 
form BIS 621-P (single transaction) or on form BIS 6051-P (multiple 
transactions), both available on-line through the Office of Antiboycott 
Compliance (OAC) page of the BIS Web site (OAC Web page) in a fillable 
PDF format, and to submit the reports in duplicate paper copy to OAC 
postmarked by the last day of the month following the calendar quarter 
in which the request was received (or, if received outside the United 
States, by the last day of the second month following the calendar 
quarter in which the request was received).

[[Page 70934]]

Electronic Submission of Report of Request for Restrictive Trade 
Practice or Boycott

    While United States persons may continue to submit paper reports by 
mail consistent with Sec.  760.5(b)(4)--(b)(7), this final rule amends 
the EAR to allow submission of reports electronically, with the same 
deadlines, through the OAC Web page.
    These revisions amend only the manner of reporting by offering an 
alternative method of submitting the report; in all other respects, the 
reporting requirements remain unchanged. Electronic filing offers the 
recipient of a boycott-related request a faster and less burdensome 
method to fulfill the regulatory reporting requirement than paper 
submission by mail. This action is consistent with the Administration's 
ongoing efforts to modernize regulatory requirements. Information on 
both paper and electronic submissions is available through the OAC Web 
page at http://bis.doc.gov/index.php/enforcement/oac?id=300.
    United States persons who choose to submit reports electronically 
may access the electronic form via a link on the OAC Web page. Once all 
required fields are completed and the report has been submitted 
electronically, an electronic ``Submission Confirmation'' notification, 
confirming the date and time of receipt of the submission by OAC, will 
automatically be displayed on the reporting person's screen. Additional 
guidance on accessing and completing electronic reports is available on 
the OAC Web page or by contacting OAC at 202.482.2448.

Amendments to Part 760 of the EAR to Establish the Electronic Filing 
Option for Report of Request for Restrictive Trade Practice or Boycott

    In this rule, BIS amends Sec.  760.5 (Reporting Requirements) by 
revising paragraph (b) to provide United States persons with the option 
to submit reports of boycott-related requests electronically through 
the OAC Web page, as described above. Specifically, in this rule, BIS 
authorizes the electronic reporting option by amending paragraphs 
(b)(4), (b)(5), (b)(6) and (b)(7) of Sec.  760.5 of the EAR.

Export Administration Act of 1979

    The Export Administration Act of 1979, 50 U.S.C. 4601-4623 (Supp. 
III 2015) (available at http://uscode.house.gov), has been in lapse 
since August 21, 2001. The President, through Executive Order 13222 of 
August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which has been extended 
by successive Presidential Notices, the most recent being that of 
August 4, 2016 (81 FR 52587 (Aug. 8, 2016)), has continued the EAR in 
effect under the International Emergency Economic Powers Act (50 U.S.C. 
1701, et seq. (2006 & Supp. IV 2010)).

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 a collection previously approved by the 
Office of Management and Budget (OMB) under Control Number 0694-0012, 
``Report of Requests for Restrictive Trade Practice or Boycott--Single 
or Multiple Transactions,'' which carries a burden hour estimate of 71 
minutes to prepare and submit. Total burden hours associated with the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) and the 
aforementioned OMB Control Number are expected to decrease slightly as 
a result of the addition of an electronic method to submit required 
reports of boycott requests through the OAC Web page pursuant to Sec.  
760.5 (Reporting Requirements) of the EAR. Notwithstanding any other 
provisions of law, no person is required to respond to, or may be 
subject to a penalty for failure to comply with, a 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), BIS finds that publication of this rule in other than final 
form is unnecessary because the amendments in this rule are 
administrative changes. They are provided to notify the public that an 
electronic filing option is available as a result of the technical 
update of the capabilities of OAC's information technology system. 
These administrative changes will not affect the rights of the public 
to continue to use the report filing option that existed prior to these 
changes. They do not change the existing regulatory requirement that 
United States persons report requests they receive to take certain 
actions in support of restrictive trade practices or boycotts. They 
only offer an option to use a second method, electronic reporting, as 
an alternative to reporting by mail. Offering this second method may 
facilitate compliance with the reporting requirements.
    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. The delay in effectiveness delays the 
availability to the public of the additional method of filing reports. 
BIS is simply amending the EAR to provide a second reporting method. 
Further, this rule is an administrative change to assist the public in 
complying with reporting requirements. Delaying this action would not 
serve any other practical purpose. Delaying the notice to the public of 
the new report filing option is contrary to the interest of 
establishing methods of making regulatory compliance efficient, and, 
therefore, less burdensome.
    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 is not required under the APA or by any 
other law, the 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 760

    Boycotts, Exports, Reporting and recordkeeping requirements.

    Accordingly, part 760 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

PART 760--[AMENDED]

0
1. The authority citation for part 760 continues to read as follows:

    Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4, 
2016, 81 FR 52587 (August 8, 2016).

0
2. Section 760.5 is amended by revising paragraphs (b)(4) through (7) 
to read as follows:

Sec.  760.5  Reporting requirements.

* * * * *

[[Page 70935]]

    (b) * * *
    (4) Reports may be submitted by mail or electronically. Mailed 
paper reports must be submitted in duplicate to: Report Processing 
Staff, Office of Antiboycott Compliance, U.S. Department of Commerce, 
Room 6098, Washington, DC 20230. Electronic reports must be submitted 
in duplicate, by following the prompts on the screen, through the 
Office of Antiboycott Compliance Web page of the BIS Web site, http://bis.doc.gov/index.php/enforcement/oac?id=300. Each submission, whether 
paper or electronic, must be made in accordance with the following 
requirements:
    (i) Where the person receiving the request is a United States 
person located in the United States, each report of requests must be 
postmarked or electronically date-stamped by the last day of the month 
following the calendar quarter in which the request was received (e.g., 
April 30 for the quarter consisting of January, February, and March).
    (ii) Where the person receiving the request is a United States 
person located outside the United States, each report of requests must 
be postmarked or electronically date-stamped by the last day of the 
second month following the calendar quarter in which the request was 
received (e.g., May 31 for the quarter consisting of January, February, 
and March).
    (5) Mailed paper reports may, at the reporting person's option, be 
submitted on either a single transaction form (Form BIS-621P, Report of 
Request for Restrictive Trade Practice or Boycott, Single Transaction, 
(revised 10-89)) or on a multiple transaction form (Form BIS-6051P, 
Report of Request for Restrictive Trade Practice or Boycott, Multiple 
Transactions, (revised 10-89)).
    Electronic reports may be submitted only on the single transaction 
form, which will electronically reproduce the reporting person's 
identifying information to facilitate reporting of multiple 
transactions.
    (6) Reports, whether submitted on the paper single transaction form 
or on the paper multiple transaction form, or submitted electronically, 
must contain entries for every applicable item on the form, including 
whether the reporting person intends to take or has taken the action 
requested. If the reporting person has not decided what action he will 
take by the time the report is required to be filed, he must later 
report the action he decides to take within 10 business days after 
deciding. In addition, anyone filing a report on behalf of another must 
so indicate and identify that other person.
    (7) Each report of a boycott request, whether submitted by mail or 
electronically, must be accompanied by two copies of the relevant 
page(s) of any document(s) in which the request appears (see, paragraph 
(c)(2) of this section). For mail submissions, the relevant pages shall 
be attached in paper format to the report form; for electronic 
submissions, the relevant pages shall be attached in PDF format to the 
electronic submission. Reports, whether paper or electronic, may also 
be accompanied by any additional information relating to the request as 
the reporting person desires to provide concerning his response to the 
request. For electronic submissions, such additional information should 
be provided as a PDF attachment.
* * * * *

    Dated: October 7, 2016.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2016-24831 Filed 10-13-16; 8:45 am]
 BILLING CODE 3510-33-P