Document ID: BIS-2018-0014-0001
Agency: bis
Document Type: Rule
Title: Implementation of the February 2017 Australia Group Intersessional Decisions and the June 2017 AG Plenary Understandings; Addition of India to the AG; Correction
Posted Date: 2018-06-04T04:00Z

[Federal Register Volume 83, Number 107 (Monday, June 4, 2018)]
[Rules and Regulations]
[Pages 25559-25561]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11875]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 170306234-8444-02]
RIN 0694-AH37

Implementation of the February 2017 Australia Group (AG) 
Intersessional Decisions and the June 2017 AG Plenary Understandings; 
Addition of India to the AG; Correction

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule; correction.

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SUMMARY: The Bureau of Industry and Security (BIS) publishes this final 
rule to make certain conforming changes based on the revisions to 
Export Control Classification Number (ECCN) 1C350 on the Commerce 
Control List (CCL) contained in a final rule published on April 2, 
2018. That final rule amended the Export Administration Regulations 
(EAR) to implement the recommendations presented at the February 2017 
Australia Group (AG) Intersessional Implementation Meeting, and later 
adopted pursuant to the AG silent approval procedure, and the 
recommendations made at the June 2017 AG Plenary Implementation Meeting 
and adopted by the AG Plenary. Among other changes, the April 2, 2018, 
final rule amended ECCN 1C350 by renumbering paragraphs .b through .d 
in alphabetical order. Following the publication of that rule, however, 
certain references to ECCN 1C350.c and 1C350.d in the description of 
items eligible under the validated end-user authorization (VEU) 
provisions of the EAR no longer identified the correct subparagraphs in 
ECCN 1C350 because the rule inadvertently failed to update the 
references to ECCN 1C350.c and 1C350.d in the description of eligible 
items for three of the validated end-users identified in Supplement No. 
7 to part 748 (Authorization Validated End-User (VEU)) of the EAR. This 
final rule amends the VEU provisions to provide the correct references 
to eligible items in ECCN 1C350 for three validated end-users.

DATES: This rule is effective June 4, 2018.

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: [email protected].

SUPPLEMENTARY INFORMATION: On April 2, 2018, the Bureau of Industry and 
Security (BIS) published a final rule titled ``Implementation of the 
February 2017 Australia Group (AG) Intersessional Decisions and the 
June 2017 AG Plenary Understandings; Addition of India to the AG'' (83 
FR 13849), which amended the Export Administration Regulations (EAR) to 
implement the recommendations presented at the Australia Group (AG) 
Intersessional Implementation Meeting held in Buenos Aires, Argentina, 
on February 15, 2017, and adopted pursuant to the AG silent approval 
procedure in April 2017, and the recommendations presented at the 
Implementation Meeting of the 2017 AG Plenary held in Paris, France, 
from June 26-30, 2017, and adopted by the AG Plenary. In addition, that 
final rule amended the EAR to reflect the addition of India as a 
participating country in the AG, as of January 19, 2018.
    The amendments to the April 2, 2018, final rule included revisions 
to Export Control Classification Number (ECCN) 1C350, among which were 
the renumbering of certain items listed in paragraph .b, .c, or .d of 
this ECCN. However, that final rule inadvertently omitted updates to 
the references to ECCN 1C350.c and 1C350.d in the description of 
eligible items for three of the validated end-users identified in 
Supplement No. 7 to part 748 (Authorization Validated End-User (VEU)) 
of the EAR. Consequently, these descriptions no longer identified the 
correct subparagraphs for eligible items in ECCN 1C350. This final rule 
amends the references to ECCN 1C350 in Supplement No. 7 to part 748 to 
identify the correct subparagraphs for eligible items in ECCN 1C350, 
consistent with the amendments to ECCN 1C350 contained in the April 2, 
2018, final rule.
    Specifically, this final rule amends Supplement No. 7 to part 748 
to correctly identify which items in ECCN 1C350 are eligible for each 
of the following validated end-users: (1) The description of eligible 
ECCN 1C350 items in the entry for ``CSMC Technologies Corporation'' is 
revised to reference 1C350.c.4 (Phosphorus oxychloride, C.A.S. #10025-
87-3) and 1C350.c.12 (Trimethyl phosphite, C.A.S. #121-45-9); (2) the 
description of eligible ECCN 1C350 items in the entry for ``Samsung 
China Semiconductor Co. Ltd.'' is revised to reference 1C350.c.4 and 
1C350.d.10 (Hydrogen fluoride, C.A.S. #7664-39-3); and (3) the 
description of eligible ECCN 1C350 items in the entry for ``Shanghai 
Huahong Grace Semiconductor

[[Page 25560]]

Manufacturing Corporation'' is revised to reference 1C350.c.4 and 
1C350.d.10. These conforming amendments do not change the scope of 
eligible items for any of the three validated end-users indicated 
above--they merely update the ECCN references in Supplement No. 7 to 
part 748 to correctly identify which ECCN 1C350 items are eligible for 
each of these validated end-users. Because this rule does not add or 
remove any validated end-users or revise the scope of eligible items, 
the citation for this rule is not indicated in the ``Federal Register 
Citation'' column of Supplement No. 7.

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 15, 2017 (82 FR 39005 (August 16, 2017)), has continued the 
Export Administration Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 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, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be not significant for 
purposes of Executive Order 12866. This rule is not an Executive Order 
13771 regulatory action because this rule is not significant under 
Executive Order 12866.
    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, Simplified Network Application Processing System. This 
collection includes license applications, among other things, and 
carries a burden estimate of 29.6 minutes per manual or electronic 
submission for a total burden estimate of 31,833 hours. This rule is 
not expected to result in any change in the burden hours associated 
with this collection. Specifically, this rule updates references to 
ECCN 1C350 in Supplement No. 7 to part 748 (Authorization Validated 
End-User (VEU)) to reflect the amendments to this ECCN made by a final 
rule, titled ``Implementation of the February 2017 Australia Group (AG) 
Intersessional Decisions and the June 2017 AG Plenary Understandings; 
Addition of India to the AG,'' that was published in the Federal 
Register on April 2, 2018 (83 FR 13849). These corrections to 
Supplement No. 7 to part 748 are not expected to change the number of 
license applications that will have to be submitted for items 
controlled under ECCN 1C350. 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, by email to 
[email protected] 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 or by email to [email protected].
    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 and the opportunity for 
public participation are waived for good cause because they are 
unnecessary and contrary to the public interest. (See 5 U.S.C. 
553(b)(B)). The provision of the Administrative Procedure Act requiring 
a 30-day delay in effectiveness is also waived for good cause. (5 
U.S.C. 553(d)(3)). The changes contained in this rule are non-
substantive technical corrections of a previously published rule that 
has already been exempted from notice and comment. This rule is 
necessary to ensure clarity in the regulations and accuracy regarding 
the scope of VEU-eligible items in Supplement No. 1 to part 748 of the 
EAR. If this rule were delayed to allow for notice and comment and a 
delay in effective date, it would result in further confusion caused by 
the incorrect cross-references to ECCN 1C350 contained in this 
Supplement. These changes are also essential to ensuring the accurate 
and complete implementation of the April 2, 2018, final rule.
    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. Accordingly, no 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.

    For the reasons stated in the preamble, part 748 of the Export 
Administration Regulations (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. 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 15, 2017, 82 FR 
39005 (August 16, 2017).

0
2. 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), is amended 
by revising the validated end-user entries for ``CSMC Technologies 
Corporation,'' ``Samsung China Semiconductor Co. Ltd.,'' and ``Shanghai 
Huahong Grace Semiconductor Manufacturing Corporation,'' listed under 
the country ``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

[[Page 25561]]

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                                                  Eligible items (by                           Federal Register
         Country            Validated end-user           ECCN)         Eligible 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)
 
                                                  * * * * * * *
                           CSMC Technologies     1C350.c.4,            CSMC Technologies     76 FR 2802, 1/18/
                            Corporation.          1C350.c.12,           Fab 1 Co., Ltd., 14   11. 76 FR 37634, 6/
                                                  2B230.a, 2B230.b,     Liangxi Road, Wuxi,   28/11. 77 FR
                                                  2B350.f, 2B350.g,     Jiangsu 214061,       10953, 2/24/12. 78
                                                  2B350.h, 3B001.e,     China.                FR 23472, 4/19/13.
                                                  3B001.h (except for  CSMC Technologies      78 FR 32981, 6/3/
                                                  multilayer masks      Fab 2 Co., Ltd., 8    13.
                                                  with a phase shift    Xinzhou Rd., Wuxi
                                                  layer designed to     National New Hi-
                                                  produce ``space       Tech Industrial
                                                  qualified''           Development Zone,
                                                  semiconductor         Wuxi, Jiangsu
                                                  devices), 3C002.a,    214028, China.
                                                  and 3C004.
 
                                                  * * * * * * *
                           Samsung China         1C350.c.4,            Samsung China         78 FR 41291, 7/10/
                            Semiconductor Co.     1C350.d.10,           Semiconductor Co.,    13. 78 FR 69535,
                            Ltd.                  2B006.a,              Ltd., No. 1999,       11/20/13. 79 FR
                                                  2B006.b.1.d, 2B230,   North Xiaohe Road,    30713, 5/29/14. 80
                                                  2B350.d.2,            Xi'an, China 710119.  FR 11863, 3/5/15.
                                                  2B350.g.3,
                                                  2B350.i.3, 3A233,
                                                  3B001.a.1, 3B001.b,
                                                  3B001.e, 3B001.f,
                                                  3B001.h, 3C002,
                                                  3C004, 3D002, and
                                                  3E001 (limited to
                                                  ``technology'' for
                                                  items classified
                                                  under 3C002 and
                                                  3C004 and
                                                  ``technology'' for
                                                  use consistent with
                                                  the International
                                                  Technology Roadmap
                                                  for Semiconductors
                                                  process for items
                                                  classified under
                                                  ECCNs 3B001 and
                                                  3B002).
                           Shanghai Huahong      1C350.c.4,            Shanghai Huahong      78 FR 32981, 6/3/
                            Grace Semiconductor   1C350.d.10, 2B230,    Grace Semiconductor   13.
                            Manufacturing         2B350.d.2,            Manufacturing
                            Corporation.          2B350.g.3,            Corporation--HFab
                                                  2B350.i.4,            2, 668 Guoshoujing
                                                  3B001.a.1, 3B001.b,   Road, Zhangjiang Hi-
                                                  3B001.e, 3B001.f,     Tech Park, Shanghai
                                                  3B001.h, 3C002,       201203.
                                                  3C004, 5B002, and    China Shanghai
                                                  5E002 (controlled     Huahong Grace
                                                  by ECCNs 5A002,       Semiconductor
                                                  5A004, or 5A992       Manufacturing
                                                  that have been        Corporation--HFab
                                                  successfully          1, 1188 Chuanqiao
                                                  reviewed under the    Road, Pudong,
                                                  encryption review     Shanghai 201206
                                                  process specified     China.
                                                  in Sections          Shanghai Huahong
                                                  740.17(b)(2) or       Grace Semiconductor
                                                  740.17(b)(3) of the   Manufacturing
                                                  EAR).                 Corporation--GFab1,
                                                                        1399 Zuchongzhi
                                                                        Road, Zhangjiang Hi-
                                                                        Tech Park, Shanghai
                                                                        201203 China.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

    Dated: May 29, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-11875 Filed 6-1-18; 8:45 am]
 BILLING CODE 3510-33-P