Document ID: BIS-2011-0005-0001
Agency: bis
Document Type: Rule
Title: Additions and Revisions to List of Validated End-Users in People's Republic of China: CSMC Technologies Corp. and Advanced Micro Devices China, Inc.
Posted Date: 2011-01-18T05:00Z

[Federal Register: January 18, 2011 (Volume 76, Number 11)]
[Rules and Regulations]               
[Page 2802-2805]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18ja11-6]                         

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

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 101129595-0635-01]
RIN 0694-AF07

 
Additions and Revisions to the List of Validated End-Users in the 
People's Republic of China: CSMC Technologies Corporation and Advanced 
Micro Devices China, Inc.

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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

SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) to add one end-user, 
CSMC Technologies Corporation (CSMC), to

[[Page 2803]]

the list of validated end-users in the People's Republic of China 
(PRC). With this rule, exports, reexports, and transfers (in-country) 
of certain items to three CSMC facilities in the PRC are now authorized 
under Authorization Validated End-User. In this rule, BIS also amends 
the EAR to revise the validated end-user authorization for Advanced 
Micro Devices China, Inc. (AMD) in the PRC by amending the list of 
buildings associated with one of the company's approved facilities and 
by updating the description of items eligible for export, reexport, or 
transfer (in-country) to AMD's approved facilities.

DATES: This rule is effective January 18, 2011. Although there is no 
formal comment period, public comments on this regulation are welcome 
on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AF07, by any 
of the following methods:
    E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-AF07'' in 
the subject line of the message.
    Fax: (202) 482-3355. Please alert the Regulatory Policy Division, 
by calling (202) 482-2440, if you are faxing comments.
    Mail or Hand Delivery/Courier: Sheila Quarterman, U.S. Department 
of Commerce, Bureau of Industry and Security, Regulatory Policy 
Division, 14th Street & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230, Attn: RIN 0694-AF07.

Send comments regarding the collection of information associated with 
this rule, 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. Comments on this 
collection of information should be submitted separately from comments 
on the final rule (i.e., RIN 0694-AF07). All comments on the latter 
should be submitted by one of the three methods outlined above.

FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, 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, Fax: (202) 482-3911, E-mail: 
ERC@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

Authorization Validated End-User (VEU): The List of Approved End-Users, 
Eligible Items and Destinations in the PRC

    Consistent with U.S. Government policy to facilitate trade for 
civilian end-users in the PRC, BIS amended the EAR in a final rule on 
June 19, 2007 (72 FR 33646) by creating a new authorization for 
``validated end-users'' (VEUs) located in eligible destinations to 
which eligible items may be exported, reexported, or transferred under 
a general authorization instead of a license, in conformance with 
section 748.15 of the EAR. VEUs may obtain eligible items that are on 
the Commerce Control List, set forth in Supplement No. 1 to Part 774 of 
the EAR, without having to wait for their suppliers to obtain export 
licenses from BIS. Eligible items may include commodities, software, 
and technology, except those controlled for missile technology or crime 
control reasons.
    Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in eligible destinations that have a 
verifiable record of civilian end-uses for such items. The VEUs listed 
in Supplement No. 7 to Part 748 of the EAR were 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. In addition 
to U.S. exporters, Authorization VEU may be used by foreign reexporters 
and by persons transferring in-country, and it does not have an 
expiration date. As of the date of this rule, pursuant to section 
748.15(b) of the EAR, VEUs are only located in the PRC and India.

Addition of CSMC Technologies Corporation to the List of Validated End-
Users in the PRC and CSMC Technologies Corporation's ``Eligible Items 
(by ECCN)'' and ``Eligible Destinations''

    This final rule amends Supplement No. 7 to Part 748 of the EAR to 
designate CSMC Technologies Corporation (CSMC) as a validated end-user, 
to identify the eligible destinations of CSMC (referred to as 
``Facilities''), and to identify the items that may be exported, 
reexported, or transferred (in-country) to CSMC's specified eligible 
facilities under Authorization VEU. The name and address of this newly 
approved VEU and the names and addresses of its eligible facilities are 
as follows:
Validated End-User
CSMC Technologies Corporation
Eligible Destinations for CSMC Technologies Corporation
CSMC Technologies Fab 1 Co., Ltd., 14 Liangxi Road, Wuxi, Jiangsu 
214061, China.
CSMC Technologies Fab 2 Co., Ltd., Block 86, 87, Wuxi National Hi-New 
Tech Industrial Development Zone, Wuxi, Jiangsu 214061, China.
Wuxi CR Semiconductor Wafers and Chips Co., Ltd., 14 Liangxi Road, 
Wuxi, Jiangsu 214061, China.
Eligible Items That May Be Exported, Reexported, or Transferred (In-
Country) to the Three ``Eligible Destinations'' Under CSMC Technologies 
Corporation's Validated End-User Authorization
    Items classified under Export Control Classification Numbers 
1C350.c.3, 1C350.c.11, 2B230.a, 2B230.b, 2B350.f, 2B350.g, 2B350.h, 
3B001.c.1.a, 3B001.c.2.a, 3B001.e, 3C002.a, 3C004.

Revisions to the Authorization for Validated End-User Advanced Micro 
Devices China, Inc.

    This final rule also amends Supplement No. 7 to Part 748 of the EAR 
by revising the list of Advanced Micro Devices China, Inc.'s (AMD) 
eligible facilities. Specifically, this rule adds three new buildings 
to the facility authorization for Advanced Micro Devices (Shanghai) 
Co., Ltd. (AMD Shanghai), which is one of AMD's three approved 
facilities. Accordingly, the address for AMD Shanghai has been amended 
by adding three new building numbers and the revised address will 
appear in Supplement No. 7 to Part 748 of the EAR. In addition, BIS is 
updating the description of items eligible for export, reexport, or 
transfer (in-country) to AMD's approved facilities in order to provide 
clarification to persons shipping under Authorization VEU. This update 
makes AMD's VEU listing in the Code of Federal Regulations as specific 
as possible. The revisions to the authorization for validated end-user 
AMD are as follows:
Name and Former Address of Facility
Advanced Micro Devices (Shanghai) Co., Ltd., Riverfront Harbor, 
Building 48, Zhangjiang Hi-Tech Park, 1387 Zhangdong Rd., Pudong, 
Shanghai, 201203.
Name and Current Address of Facility
Advanced Micro Devices (Shanghai) Co., Ltd., Buildings 46, 47, 48 & 49, 
Riverfront Harbor, Zhangjiang Hi-Tech Park, 1387 Zhangdong Rd., Pudong, 
Shanghai, 201203.

[[Page 2804]]

Eligible Items That May Be Exported, Reexported, or Transferred (In-
Country) to the Three ``Eligible Destinations'' Under Advanced Micro 
Devices China, Inc., Validated End-User Authorization
    Items classified under Export Control Classification Numbers 
(ECCNs) 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, 4D002, 4D003 and 4E001 (limited to the ``development'' of 
products under ECCN 4A003).
    The approval of CSMC as a validated end-user and revision of AMD's 
VEU Authorization are expected to further facilitate exports to 
civilian end-users in the PRC, and to result in significant savings of 
time and resources for suppliers and the eligible facilities. 
Authorization VEU eliminates the burden on exporters and reexporters of 
preparing individual license applications, as exports, reexports, and 
transfers (in-country) of eligible items to these facilities may now be 
made under general authorization instead of under individual licenses. 
Under the VEU program, exporters and reexporters can supply VEUs in the 
PRC on a more timely basis, thereby enhancing the competitiveness of 
exporters, reexporters, and end-users in the PRC.
    To ensure appropriate facilitation of exports and reexports, on-
site reviews of validated end-users may be warranted pursuant to 
paragraph 748.15(f)(2) and section 7(iv) of Supplement No. 8 to Part 
748 of the EAR. If such reviews are warranted, BIS will inform the PRC 
Ministry of Commerce.
    Since August 21, 2001, the Export Administration Act (the Act) has 
been in lapse and the President, through Executive Order 13222 of 
August 17, 2001 (3 CFR, 2001 Comp., p. 783 (2002)), as extended most 
recently by the Notice of August 12, 2010 (75 FR 50681 (August 16, 
2010)), has continued the EAR in effect under the International 
Emergency Economic Powers Act. BIS continues to carry out the 
provisions of the Act, as appropriate and to the extent permitted by 
law, pursuant to Executive Order 13222.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
the 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 58 
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 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 the rule be 
subject to notice and the opportunity for public comment because such 
notice and comment here are unnecessary. In determining whether to 
grant VEU designations, a committee of U.S. Government agencies 
evaluates information about candidate companies 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 section 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 2, 2006, and 72 FR 33646, 
June 19, 2007). 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 is simply adding a VEU 
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 authorization granted in the rule is similar to that 
granted to exporters for individual licenses, which do not undergo 
public review. Individual license application applicants and VEU 
authorization applicants both provide the U.S. Government with 
confidential business information. This information is extensively 
reviewed according to the criteria for VEU authorizations, as set out 
in 15 CFR section 748.15(a)(2). As with individual export licenses, an 
interagency committee, drawing on public and non-public sources, 
including licensing data, and measured against the VEU authorization 
criteria, vets VEU applications. The authorizations granted under the 
VEU program, and through individual export licenses, involve 
interagency deliberation according to set criteria. Given the thorough 
nature of the review, and in light of the parallels between this 
process and the non-public review of license applications, public 
comment on this authorization prior to publication is unnecessary. 
Moreover, as noted above, the criteria and process for authorizing VEUs 
were developed with public comments; allowing additional public comment 
on this individual VEU authorization, which was determined according to 
those criteria, is therefore unnecessary.
    Section 553(d) of the APA generally provides that rules may not 
take effect earlier than 30 days after they are published in the 
Federal Register. However, section 553(d)(1) of the APA provides that a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction, may take effect earlier. Today's final rule grants an 
exemption from licensing procedures and thus is effective immediately.
    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 and no regulatory flexibility analysis has been 
prepared.

List of Subjects in 15 CFR Part 748

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

[[Page 2805]]

    Accordingly, part 748 of the EAR (15 CFR Parts 730-774) is amended 
as follows:

PART 748--[AMENDED]

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

0
2. Supplement No. 7 to Part 748 is amended:
0
a. By adding one entry, ``CSMC Technologies Corporation'', for ``China 
(People's Republic of)'' in alphabetical order; and
0
b. By revising the entry for ``Advanced Micro Devices (Shanghai) Co., 
Ltd.'' for ``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, 
REEXPORT AND TRANSFER, AND ELIGIBLE DESTINATIONS

----------------------------------------------------------------------------------------------------------------
                                                                    Eligible items (by
            Country                    Validated end-user                  ECCN)           Eligible destination
----------------------------------------------------------------------------------------------------------------
China (People's Republic of)..  Advanced Micro Devices China,     3D002, 3D003, 3E001     AMD Technologies
                                 Inc..                             (limited to             (China) Co., Ltd.,
                                                                   ``technology'' for      No. 88, Su Tong Road,
                                                                   items classified        Suzhou, China 215021.
                                                                   under 3C002 and 3C004  Advanced Micro Devices
                                                                   and ``technology''      (Shanghai) Co., Ltd.,
                                                                   for use during the      Buildings 46, 47, 48
                                                                   International           & 49, River Front
                                                                   Technology Roadmap      Harbor, Zhangjiang Hi-
                                                                   for Semiconductors      Tech Park, 1387
                                                                   (ITRS) process for      Zhangdong Rd.,
                                                                   items classified        Pudong, Shanghai,
                                                                   under ECCNs 3B001 and   201203.
                                                                   3B002), 3E002          AMD Technology
                                                                   (limited to             Development (Beijing)
                                                                   ``technology'' for      Co., Ltd., 18F, North
                                                                   use during the ITRS     Building, Raycom
                                                                   process for items       Infotech, Park Tower
                                                                   classified under        C, No. 2 Science
                                                                   ECCNs 3B001 and         Institute South Rd.,
                                                                   3B002), 3E003.e         Zhong Guan Cun,
                                                                   (limited to the         Haidian District,
                                                                   ``development'' and     Beijing, China
                                                                   ``production'' of       100190.
                                                                   integrated circuits
                                                                   for commercial
                                                                   applications), 4D001,
                                                                   4D002, 4D003 and
                                                                   4E001 (limited to the
                                                                   ``development'' of
                                                                   products under ECCN
                                                                   4A003).

                                                  * * * * * * *
                                CSMC Technologies Corporation...  1C350.c.3, 1C350.c.11,  CSMC Technologies Fab
                                                                   2B230.a, 2B230.b,       1 Co., Ltd., 14
                                                                   2B350.f, 2B350.g,       Liangxi Road, Wuxi,
                                                                   2B350.h, 3B001.c.1.a,   Jiangsu 214061,
                                                                   3B001.c.2.a, 3B001.e,   China.
                                                                   3C002.a, 3C004.        CSMC, Technologies Fab
                                                                                           2 Co., Ltd., Block
                                                                                           86, 87, Wuxi National
                                                                                           Hi-New Tech
                                                                                           Industrial
                                                                                           Development Zone,
                                                                                           Wuxi, Jiangsu 214061,
                                                                                           China.
                                                                                          Wuxi CR Semiconductor
                                                                                           Wafers and Chips Co.,
                                                                                           Ltd., 14 Liangxi
                                                                                           Road, Wuxi, Jiangsu
                                                                                           214061, China.

                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

    Dated: January 11, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-920 Filed 1-14-11; 8:45 am]
BILLING CODE 3510-33-P