Document ID: BIS-2016-0024-0001
Agency: bis
Document Type: Rule
Title: Validated End-User Authorization in the People's Republic of China: Advanced Micro Devices, Inc.
Posted Date: 2016-06-23T04:00Z

[Federal Register Volume 81, Number 121 (Thursday, June 23, 2016)]
[Rules and Regulations]
[Pages 40783-40785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14902]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 160303186-6186-01]
RIN 0694-AG91

Amendments to Existing Validated End-User Authorization in the 
People's Republic of China: Advanced Micro Devices, Inc.

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 
Validated End-User (VEU) list for the People's Republic of China by 
updating the list of eligible items and destinations (facilities) for 
VEU Advanced Micro Devices, Inc. (AMD). Specifically, BIS amends 
Supplement No. 7 to part 748 of the EAR to remove an existing 
``eligible destination'' (facility); add a building to an existing 
address at one of AMD's already approved facilities to which eligible 
items may be exported, reexported or transferred (in-country); and 
reflect the recent removal of an existing ``eligible item'' from the 
Commerce Control List (CCL).

DATES: This rule is effective June 23, 2016.

FOR FURTHER INFORMATION CONTACT: 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; 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 
(facilities) 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, 
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.

Amendments to Existing VEU Authorization for Advanced Micro Devices, 
Inc. (AMD) in the People's Republic of China

Revision to the List of ``Eligible Destinations'' and ``Eligible 
Items'' for AMD

    In this final rule, BIS amends Supplement No. 7 to part 748 to 
revise AMD's VEU authorization. Specifically, in this rule BIS removes 
one of AMD's existing eligible destinations (facilities). Also, in this 
rule, BIS adds a building to an existing address at one of AMD's 
facilities already approved under Authorization VEU, to which the 
company's eligible items may be exported, reexported or transferred 
(in-country) in the People's Republic of China (PRC) under the 
authorization. Finally, in this rule, BIS removes Export Control 
Classification Number (ECCN) 4D002 from the list of AMD's eligible 
items to reflect the removal of that item from the CCL by 80 FR 29432 
(May 21, 2015). The amendments to the eligible destinations 
(facilities) are in response to a request from AMD, while the amendment 
to the eligible items list reflects the recent removal of that ECCN 
from the CCL. All amendments were approved by the ERC. The revisions 
are as follows:

Removal of AMD's Eligible Destination (Facility)

    AMD Technologies (China) Co., Ltd., No. 88, Su Tong Road, Suzhou, 
China 215021.

[[Page 40784]]

Revision and Update of Address for One of AMD's Eligible Destinations 
(Facilities)

Current Address: Advanced Micro Devices (Shanghai) Co., Ltd., Buildings 
46, 47, 48 & 49, River Front Harbor, Zhangjiang Hi-Tech Park, 1387 
Zhangdong Rd., Pudong, Shanghai, China 201203
New Address: Advanced Micro Devices (Shanghai) Co., Ltd., Buildings 33 
(Unit 1), 46, 47, 48 & 49, River Front Harbor, Zhangjiang Hi-Tech Park, 
No. 1387 Zhang Dong Road, Pudong District, Shanghai, China 201203

Removal of AMD's Eligible Item: ECCN 4D002

    With this revision, AMD's ``Eligible Items'' are as follows: 3D002, 
3D003, 3E001 (limited to ``technology'' for items classified under 
3C002 and 3C004 and ``technology'' for use during the International 
Technology Roadmap for Semiconductors (ITRS) process for items 
classified under ECCNs 3B001 and 3B002), 3E002 (limited to 
``technology'' for use during the ITRS process for items classified 
under ECCNs 3B001 and 3B002), 3E003.e (limited to the ``development'' 
and ``production'' of integrated circuits for commercial applications), 
4D001 and 4E001 (limited to the ``development'' of products under ECCN 
4A003.

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 7, 2015, 80 FR 48233 (August 11, 2015), 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, 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 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. In publishing this final rule, BIS amends the 
authorization for an existing eligible VEU to remove an eligible 
destination (facility), revise an existing eligible destination 
(facility) to add a building, and remove an eligible item no longer 
listed on the CCL. These changes have been made within the established 
regulatory framework of the VEU program. Further, this rule does not 
abridge the rights of the public or eliminate the public's option to 
export under any of the forms of authorization set forth in the EAR.
    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 license applications are reviewed 
through an interagency review process, 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. However, BIS finds good cause to waive the 30-day 
delay in effectiveness for this rule pursuant to 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 removing an 
existing eligible destination (facility), revising the address of 
another eligible destination (facility) to add a building, and removing 
an eligible item no longer listed on the CCL. BIS amends the EAR in 
this rule consistent with established objectives and parameters 
administered

[[Page 40785]]

and enforced by the responsible designated departmental representatives 
to the End-User Review Committee. Delaying this action's effectiveness 
would likely 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 part 748 continues to read as follows:

    Authority:  50 U.S.C. 4601 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, 2015, 80 FR 
48233 (August 11, 2015).

0
2. Amend Supplement No. 7 to part 748 by revising the entry for 
``Advanced Micro Devices China, Inc.'' 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, Re-export and Transfer, and Eligible Destinations
----------------------------------------------------------------------------------------------------------------
                                    Validated  end-     Eligible items         Eligible        Federal Register
             Country                     user              (by ECCN)          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).
----------------------------------------------------------------------------------------------------------------
China (People's Republic of)....  Advanced Micro      3D002, 3D003,       Advanced Micro      75 FR 25763, 5/10/
                                   Devices China,      3E001 (limited to   Devices             10.
                                   Inc.                ``technology''      (Shanghai) Co.,    76 FR 2802, 1/18/
                                                       for items           Ltd., Buildings     11.
                                                       classified under    33 (Unit 1), 46,   78 FR 3319, 1/16/
                                                       3C002 and 3C004     47, 48 & 49,        13.
                                                       and                 River Front        81 FR [INSERT PAGE
                                                       ``technology''      Harbor,             NUMBER],
                                                       for use during      Zhangjiang Hi-     6/23/16.
                                                       the International   Tech Park, No.
                                                       Technology          1387 Zhang Dong
                                                       Roadmap for         Road, Pudong
                                                       Semiconductors      District,
                                                       (ITRS) process      Shanghai, China
                                                       for items           201203.
                                                       classified under   AMD Technology
                                                       ECCNs 3B001 and     Development
                                                       3B002), 3E002       (Beijing) Co.,
                                                       (limited to         Ltd., North and
                                                       ``technology''      South Buildings,
                                                       for use during      RaycomInfotech,
                                                       the ITRS process    Park Tower C, No.
                                                       for items           2 Science
                                                       classified under    Institute South
                                                       ECCNs 3B001 and     Rd., Zhong Guan
                                                       3B002), 3E003.e     Cun, Haidian
                                                       (limited to the     District,
                                                       ``development''     Beijing, China
                                                       and                 100190.
                                                       ``production'' of
                                                       integrated
                                                       circuits for
                                                       commercial
                                                       applications),
                                                       4D001 and 4E001
                                                       (limited to the
                                                       ``development''
                                                       of products under
                                                       ECCN 4A003).
----------------------------------------------------------------------------------------------------------------
 Nothing in this Supplement shall be deemed to supersede other provisions in the EAR, including but not limited
                                              to Sec.   748.15(c).
----------------------------------------------------------------------------------------------------------------
                                                                          AMD Products
                                                                           (China) Co. Ltd.,
                                                                           North and South
                                                                           Buildings,
                                                                           RaycomInfotech
                                                                           Park Tower C, No.
                                                                           2 Science
                                                                           Institute South
                                                                           Rd., Zhong Guan
                                                                           Cun, Haidian
                                                                           District,
                                                                           Beijing, China
                                                                           100190.
----------------------------------------------------------------------------------------------------------------
 
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    Dated: June 17, 2016.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2016-14902 Filed 6-22-16; 8:45 am]
 BILLING CODE 3510-33-P