Document ID: BIS-2011-0010-0001
Agency: bis
Document Type: Rule
Title: Implementation of Understandings Reached at 2010 Australia Group Plenary Meeting, etc.
Posted Date: 2011-04-20T04:00Z

[Federal Register Volume 76, Number 76 (Wednesday, April 20, 2011)]
[Rules and Regulations]
[Pages 22017-22019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-9613]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 110106012-1013-01]
RIN 0694-AF04

Implementation of the Understandings Reached at the 2010 
Australia Group (AG) Plenary Meeting and Other AG-Related 
Clarifications and Corrections to the EAR

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) publishes this final 
rule to amend the Export Administration Regulations (EAR) to implement 
the understandings reached at the June 2010 plenary meeting of the 
Australia Group (AG) and to make certain AG-related editorial 
clarifications and corrections to the EAR. Consistent with the June 
2010 AG understandings, this rule amends the chemical manufacturing 
equipment entry on the Commerce Control List (CCL) of the EAR to 
reflect the addition of two parenthetical phrases that clarify the 
description of certain ``materials'' contained in items on the AG 
``Control List of Dual-Use Chemical Manufacturing Facilities and 
Equipment and Related Technology and Software.'' In addition, this rule 
makes AG-related clarifications and corrections to the EAR. 
Specifically, this rule amends the human and zoonotic pathogens and 
toxins entry and the animal pathogens entry on the CCL by making an 
update and a clarification that are consistent with the description of 
items on the AG ``List of Biological Agents for Export Control'' and 
the AG ``List of Animal Pathogens for Export Control,'' respectively. 
Finally, this rule amends the listing for ``valves'' in the chemical 
manufacturing equipment entry on the CCL to clarify that it controls 
``valves'' for the ``production'' of chemicals, as well as ``valves'' 
for the ``processing'' or ``containment'' of chemicals. The purpose of 
this rule is to ensure that the AG-related entries on the CCL conform 
with the wording in the AG Control Lists (as updated by the 
understandings reached at the 2010 AG Plenary) and to clarify the 
meaning of terms used in these entries.

DATES: This rule is effective April 20, 2011.

ADDRESSES: Send comments regarding this collection of information, 
including suggestions for reducing the burden, to Jasmeet Seehra, 
Office of Management and Budget (OMB), by e-mail to Jasmeet_K._Seehra@omb.eop.gov, or by fax to (202) 395-7285; and to the Regulatory 
Policy Division, Bureau of Industry and Security, Department of 
Commerce, 14th Street & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230. Comments on this collection of information should 
be submitted separately from comments on the final rule (i.e., RIN 
0694-AF04)--all comments on the latter should be submitted by one of 
the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Elizabeth Sangine, Director, Chemical 
and Biological Controls Division, Office of Nonproliferation and Treaty 
Compliance, Bureau of Industry and Security, Telephone: (202) 482-3343.

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) is amending the Export 
Administration Regulations (EAR) to implement the understandings 
reached at the annual plenary meeting of the Australia Group (AG) that 
was held in Paris, France, from May 31 through June 4, 2010. The AG is 
a multilateral forum consisting of 40 participating countries that 
maintain export controls on a list of chemicals, biological agents, and 
related equipment and technology that could be used in a chemical or 
biological weapons program. The AG periodically reviews items on its 
control list to enhance the effectiveness of participating governments' 
national controls and to achieve greater harmonization among these 
controls.
    Consistent with the understandings reached at the 2010 AG Plenary, 
this final rule amends Export Control Classification Number (ECCN) 
2B350 (Chemical manufacturing facilities and equipment) on the Commerce 
Control List (CCL) (Supplement No. 1 to Part 774 of the EAR) to reflect 
the addition of two parenthetical phrases that describe types of 
``materials'' contained in items on the AG ``Control List of Dual-Use 
Chemical Manufacturing Facilities and Equipment and Related Technology 
and Software.'' Specifically, this rule adds a parenthetical phrase to 
ECCN 2B350.a .3, .b.3, .c.3, .d.3, .e.3, .g.3, .h.3., and .i.3 to 
clarify the meaning

[[Page 22018]]

of the term ``fluoropolymers'' in connection with the types of 
``materials'' from which certain chemical manufacturing equipment is 
made. This parenthetical phrase describes ``fluoropolymers'' as 
``polymeric or elastomeric materials with more than 35% fluorine by 
weight.'' This rule also adds a parenthetical phrase in ECCN 2B350.i.11 
(under the listing for ``pumps'') to clarify that the ``material'' 
``ferrosilicon'' refers to ``high silicon iron alloys.''
    In addition to the AG Plenary changes described above, this rule 
amends ECCN 1C351 (human and zoonotic pathogens and ``toxins'') and 
ECCN 1C352 (animal pathogens) on the CCL by updating ECCN 1C351 and 
clarifying ECCN 1C352 consistent with the controls described in the AG 
``List of Biological Agents for Export Control'' and the AG ``List of 
Animal Pathogens for Export Control,'' respectively. Specifically, this 
rule revises the listing for ``Chlamydia psittaci'' in ECCN 1C351.c.7 
by updating the name of the bacterium to read ``Chlamydophilapsittaci 
(formerly known as Chlamydia psittaci).'' This rule also revises the 
listing for the ``Lyssa virus'' in ECCN 1C352.a.8 by adding a 
parenthetical phrase to indicate that the virus is also known as 
``Rabies.''
    This rule also makes two clarifications to ECCN 2B350, consistent 
with the controls described in the AG ``Control List of Dual-Use 
Chemical Manufacturing Facilities and Equipment and Related Technology 
and Software.'' First, this rule amends the introductory text of ECCN 
2B350.g (``valves'') to clarify that the ECCN controls valves specified 
therein that are used in the ``production'' of chemicals, as well as 
valves that are used in the ``processing'' or ``containment'' of 
chemicals. Second, this rule revises the description of the material 
``Glass or glasslined (including vitrified or enameled coatings)'' in 
ECCN 2B350.g.4 to read ``Glass (including vitrified or enameled coating 
or glass lining)'' to clarify the extent to which valves containing 
this type of material are controlled under this ECCN.
    None of the changes made by this rule alters the scope of the 
controls in ECCNs 1C351, 1C352, or 2B350.
    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 extended by the Notice of August 12, 
2010, 75 FR 50681 (August 16, 2010), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act.

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.
    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 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to Jasmeet Seehra, Office of Management and Budget (OMB), and 
to the Regulatory Policy Division, Bureau of Industry and Security, 
Department of Commerce, as indicated in the ADDRESSES section of this 
rule.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in 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 and foreign affairs 
function of the United States (See 5 U.S.C. 553(a)(1)). Immediate 
implementation of these amendments is non-discretionary and fulfills 
the United States' international obligation to the Australia Group 
(AG). The AG contributes to international security and regional 
stability through the harmonization of export controls and seeks to 
ensure that exports do not contribute to the development of chemical 
and biological weapons. The AG consists of 40 member countries that act 
on a consensus basis and the amendments set forth in this rule 
implement agreements reached at the June 2010 plenary session of the AG 
and other changes that are necessary to ensure consistency with the 
controls maintained by the AG. Since the United States is a significant 
exporter of the items in this rule, implementation of this provision is 
necessary for the AG to achieve its purpose. Any delay in 
implementation will create a disruption in the movement of affected 
items globally because of disharmony between export control measures 
implemented by AG members, resulting in tension between member 
countries. Export controls work best when all countries implement the 
same export controls in a timely and coordinated manner.
    Further, 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 to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable.Therefore, this regulation is issued in final form.

List of Subjects in 15 CFR Part 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

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

PART 774--[AMENDED]

0
1. 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 12, 2010, 75 FR 50681 (August 16, 2010).

Supplement No. 1 to Part 774--[Amended]

    2. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals,

[[Page 22019]]

``Microorganisms'' & ``Toxins,'' ECCN 1C351 is amended by removing the 
name ``Chlamydia psittaci'', where it appears in paragraph c.7 of the 
``Items'' paragraph in the List of Items Controlled section, and adding 
in its place the name ``Chlamydophilapsittaci (formerly known as 
Chlamydia psittaci)''.
    3. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Special Materials and Related Equipment, Chemicals, 
``Microorganisms'' & ``Toxins,'' ECCN 1C352 is amended by removing the 
name ``Lyssa virus'', where it appears in paragraph a.8 of the 
``Items'' paragraph in the List of Items Controlled section, and adding 
in its place the name ``Lyssa virus (a.k.a. Rabies)''.
    4. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 2--Materials Processing, ECCN 2B350 is amended under the 
``Items'' paragraph in the List of Items Controlled section:
    a. By adding the parenthetical phrase ``(polymeric or elastomeric 
materials with more than 35% fluorine by weight)'' immediately 
following the word ``Fluoropolymers'', where it appears in paragraphs 
a.3, b.3, c.3, d.3, e.3, g.3, h.3, and i.3;
    b. By removing the phrase ``chemical(s) being processed or 
contained'', where it appears in the introductory text to paragraph g, 
and adding in its place the phrase ``chemical(s) being produced, 
processed, or contained'';
    c. By removing the phrase ``Glass or glasslined (including 
vitrified or enameled coatings);'', where it appears in paragraph g.4, 
and adding in its place the phrase ``Glass (including vitrified or 
enameled coating or glass lining)''; and
    d. By adding the parenthetical phrase ``(high silicon iron 
alloys)'' immediately following the word ``Ferrosilicon'', where it 
appears in paragraph i.11.

    Dated: April 12, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-9613 Filed 4-19-11; 8:45 am]
BILLING CODE 3510-33-P