Source: https://regulations.justia.com/regulations/fedreg/2007/06/05/E7-10788.html
Timestamp: 2020-08-15 14:06:05
Document Index: 422311287

Matched Legal Cases: ['arts 744', 'art 744', 'art 744', '§ 744', '§ 744', '§ 772', '§ 744', '§744', '§ 744', '§ 772', 'art 744', '§ 772', '§ 744', '§ 744', 'art 744', 'art 772', 'arts 744', 'arts 730', 'ART 744', 'art 744', '§ 744', '§ 744', '§ 744', '§ 744', '§ 744', '§ 772', '§ 744', 'ART 772', 'art 772', '§ 772', '§ 772', '§ 744', 'art 62', 'arts 744', 'art 744', 'art 744', 'art 744', 'arts 744', 'art 744', 'art 772']

Authorization To Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States, 31005-31008 [E7-10788] :: Industry And Security Bureau :: Department Of Commerce :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Commerce Industry And Security Bureau Authorization To Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States, 31005-31008 [E7-10788]
Authorization To Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States, 31005-31008 [E7-10788]
Download as PDF Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Proposed Rules structure interface are not submerged in fuel, which, in combination with flammable fuel vapors, could result in a fuel tank explosion and consequent loss of the airplane. DEPARTMENT OF COMMERCE Compliance 15 CFR Parts 744 and 772 (e) You are responsible for having the actions required by this AD performed within the compliance times specified, unless the actions have already been done. Measure Electrical Resistance/Corrective & Other Specified Actions (f) Within 60 months after the effective date of this AD: Measure the electrical resistance of the bond between the No. 2 fuel transfer pump adapter surface of the fuel tank and the fuel transfer pump housing flange in accordance with the Accomplishment Instructions of Boeing Service Bulletin DC10–28–250 or MD11–28–129, both dated July 26, 2006, as applicable. (1) If the resistance measurement is 2.5 milliohms or less: No further action is required by this paragraph. (2) If the resistance measurement is more than 2.5 milliohms: Before further flight, electrically bond the fuel tank No. 2 fuel transfer pump housing surfaces in accordance with the service bulletin. (3) Before further flight thereafter, do an electrical resistance bonding test to verify the electrical resistance between the fuel transfer pump housing and the structure is 2.5 milliohms maximum. If that electrical resistance is not achieved, rework the electrical bond until the electrical resistance is achieved. Do the actions in accordance with the service bulletin. Alternative Methods of Compliance (AMOCs) cprice-sewell on PROD1PC71 with PROPOSALS (g)(1) The Manager, Los Angeles Aircraft Certification Office (LAACO), FAA, has the authority to approve AMOCs for this AD, if requested in accordance with the procedures found in 14 CFR 39.19. (2) To request a different method of compliance or a different compliance time for this AD, follow the procedures in 14 CFR 39.19. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector (PI) in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. Issued in Renton, Washington, on May 25, 2007. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. E7–10756 Filed 6–4–07; 8:45 am] BILLING CODE 4910–13–P Bureau of Industry and Security [Docket No. 0612243150–63150–01] RIN 0694–AD82 Authorization To Impose License Requirements for Exports or Reexports to Entities Acting Contrary to the National Security or Foreign Policy Interests of the United States Bureau of Industry and Security, Commerce. ACTION: Proposed rule. AGENCY: SUMMARY: The Entity List (Supplement No. 4 to part 744 of the Export Administration Regulations) provides notice to the public that certain exports and reexports to parties identified on the Entity List require a license from the Bureau of Industry and Security (BIS) and that availability of License Exceptions in such transactions is limited. This proposed rule would expand the scope of reasons for which BIS may add parties to the Entity List. This proposed rule would also amend the Export Administration Regulations (EAR) to state explicitly that a party listed on the Entity List has a right to request that its listing be removed or modified and would set procedures for addressing such requests. DATES: Comments concerning this rule must be received by BIS no later than August 6, 2007. ADDRESSES: Comments on this rule may be submitted to the Federal eRulemaking Portal at http:// www.regulations.gov (follow the instructions for submitting comments) by e-mail directly to BIS at publiccomments@bis.doc.gov (refer to regulatory identification number 0694– AD82 in the subject line), by fax at (202) 482–3355, or on paper to Regulatory Policy Division, Office of Exporter Services, Bureau of Industry and Security, Room H2705, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, NW., Washington, DC 20230. Refer to Regulatory Identification Number (RIN) 0694–AD82 in all comments. FOR FURTHER INFORMATION CONTACT: Mike Rithmire, Office of the Assistant Secretary for Export Administration, Bureau of Industry and Security, e-mail mrithmir@bis.doc.gov, tel. ( 202) 482– 6105. SUPPLEMENTARY INFORMATION: VerDate Aug<31>2005 15:43 Jun 04, 2007 Jkt 211001 PO 00000 Frm 00027 Fmt 4702 Sfmt 4702 31005 Background The Entity List (Supplement No. 4 to part 744 of the EAR) provides notice to the public of the identity of certain parties whose presence as a recipient of items subject to the Export Administration Regulations (EAR) can impose a license requirement in an export or reexport transaction. The reasons for which BIS may place an entity on the Entity List are stated in §§ 744.2, 744.3, 744.4, 744.6, 744.10 and 744.20 of the EAR. In addition to those reasons, this proposed rule would create a new § 744.11 to authorize BIS to add to the Entity List entities that BIS has reasonable cause to believe, based on specific and articulable facts, have been, are or pose a risk of being involved in activities that are contrary to the national security or foreign policy interests of the United States or those acting on behalf of such entities. This new section would not be used to add to the Entity List entities that are U.S. persons (as defined in § 772.1 of the EAR). This new section also would not be used to add to the Entity List entities for which the EAR already impose a license requirement because those entities are already listed on the List of Specially Designated Nationals and Blocked Persons published by the Treasury Department, Office of Foreign Assets Control. Reason for the Changes Proposed by This Rule BIS is proposing to take this action to focus its export control efforts more closely on problematic potential recipients of items that are subject to the EAR, but who do not meet the criteria currently set forth in §§ 744.2, 744.3, 744.4, 744.6, 744.10 or 744.20. With this rule, the United States government would be able to conduct prior review and make appropriate licensing decisions regarding proposed exports and reexports to such recipients to the degree necessary to protect its interests. BIS would be able to tailor license requirements and availability of license exceptions for exports and reexports to parties who have taken, are taking, or will take actions that are contrary to United States national security or foreign policy interests without imposing additional license requirements that apply broadly to entire destinations or items. BIS believes that such targeted application of license requirements would provide the flexibility to deter use of items that are subject to the EAR in ways that are inimical to the interests of the United States with minimal costs to and E:\FR\FM\05JNP1.SGM 05JNP1 31006 Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Proposed Rules cprice-sewell on PROD1PC71 with PROPOSALS disruption of legitimate trade. As export controls continue to focus not just on countries, but also on individual customers or entities, BIS believes it is important to provide more information to the public about entities of concern. Implementation of this rule will provide additional information to the public to enhance the ability to screen potential recipients of items subject to the EAR. In addition, this proposed rule would simplify the EAR by reducing the need to issue general orders to impose license requirements on specific parties. License requirements currently imposed on specific entities through general orders would, under this rule, be imposed by adding such entities to the Entity List. Such an action would reduce the number of EAR provisions that the public would have to review to determine license requirements under the EAR. Summary of the Changes Proposed by This Rule This proposed rule would authorize BIS to impose foreign policy export and reexport license requirements, limit the availability of License Exceptions, and set license application review policy for exports and reexports of items subject to the EAR to entities that BIS has reasonable cause to believe, based on specific and articulable facts, have been, are or pose a risk of being involved in activities that are contrary to the national security or foreign policy interests of the United States or those acting on behalf of such entities. This proposed rule would not require that such activities involve items or activities that are subject to the EAR. This proposed rule lists five types of conduct, in addition to the grounds set forth in §§744.2, 744.3, 744.4, 744.6 or 744.20, that BIS could determine are contrary to U.S. national security or foreign policy interests. They are: (i) Supporting persons engaged in acts of terror; (ii) Actions that could enhance the military capability of, or the ability to support terrorism of governments that have been designated by the Secretary of State as having repeatedly provided support for acts of international terrorism; (iii) Transferring, developing, servicing, repairing, or producing conventional weapons in a manner that is contrary to United States national security or foreign policy interests or enabling such transfer, development, service, repair or production by supplying parts, components, technology, or financing for such activity; (iv) Deliberately failing or refusing to comply with an end use check conducted by or on behalf of BIS or the Department of State, Directorate VerDate Aug<31>2005 15:43 Jun 04, 2007 Jkt 211001 of Defense Trade Controls by denying access, by refusing to provide information about parties to a transaction, or by providing information about such parties that is false or that cannot be verified or authenticated; and (v) Engaging in conduct that poses a risk of violating the EAR and raises sufficient concern that prior review of exports or reexports involving the party and the possible imposition of license conditions or license denial enhances BIS’s ability to prevent violations of the EAR. These criteria are illustrative of conduct that could be contrary to the national security or foreign policy interests of the United States. A party could be added to the Entity List if specific and articulable facts provided reasonable cause to believe that it is involved in, has been involved in, or poses a significant risk of being or becoming involved in one of the five listed illustrative activities or other activities that are contrary to U.S. national security or foreign policy interests. This proposed rule also would authorize BIS to modify the license requirements, license exception availability or license application review policy that applies to any entity placed on the Entity List pursuant to this rule. This proposed rule would not be used to add to the Entity List a party to which exports or reexports require a license pursuant to §§ 744.12, 744.13, 744.14 or 744.18 of the EAR. Those sections impose license requirements because of the presence of certain parties on the List of Specially Designated Nationals and Blocked Persons published by the U.S. Department of the Treasury, Office of Foreign Assets Control. This proposed rule would not authorize placing U.S. persons, as defined in § 772.1 of the EAR, on the Entity List. All impositions of license requirements or statements of license application review policy or any modification thereof made pursuant to this rule would be required to be made by publishing an amendment to the Entity List found at Supplement No. 4 to part 744 of the Export Administration Regulations. Under this proposed rule, license exceptions are not available for any entity added to the Entity List pursuant to this rule unless specifically authorized in the entry for the entity. This proposed rule would explicitly set forth the ability of a party who is listed on the Entity List to request that its listing be removed or modified. Such requests, including reasons therefor, would have to be made in writing, and BIS would be required to provide a PO 00000 Frm 00028 Fmt 4702 Sfmt 4702 written response that would be the final agency decision on the request. Such requests would be reviewed by the Departments of Commerce, State, Defense, and Energy and, if appropriate in a particular case, the Treasury. The interagency decision, as communicated to the requesting entity by BIS, would be the final agency action on such a request. This proposed rule would make a conforming change to the definition of U.S. person in § 772.1 by adding § 744.11 to the list of sections to which that definition applies. The license requirements proposed by this rule would be an expansion of foreign policy export controls that would require a report to Congress in accordance with section 6 of the Export Administration Act. BIS will submit the appropriate report to Congress before implementing any such expanded controls. Request for Comments BIS is seeking public comments on this proposed rule and will consider all comments received on or before August 6, 2007 in developing any final rule. Comments received after that date will be considered if possible, but their consideration cannot be assured. All public comments on this proposed rule must be in writing (including fax or email) and will be a matter of public record, available for public inspection and copying. The Office of Administration, Bureau of Industry and Security, U.S. Department of Commerce, displays these public comments on BIS’s Freedom of Information Act (FOIA) Web site at http:// www.bis.doc.gov/foia. This office does not maintain a separate public inspection facility. If you have technical difficulties accessing this Web site, please call BIS’s Office of Administration at (202) 482–0953 for assistance. Rulemaking Requirements 1. This rule has been determined to be a significant rule pursuant to Executive Order 12866. 2. Notwithstanding any other provision 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 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 involves a collection of information that has been approved by the OMB under control number 0694–0088, ‘‘Multi- E:\FR\FM\05JNP1.SGM 05JNP1 Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Proposed Rules Purpose Application,’’ which carries a burden hour estimate of 58 minutes to prepare and submit form BIS–748. Miscellaneous and recordkeeping activities account for 12 minutes per submission. Additionally, this rule contains a new collection of information subject to review and approval by OMB under the Paperwork Reduction Act. This collection will be submitted to OMB for approval. This rule proposes a procedure for a listed party to request removal or modification of its listing, as set forth in proposed § 744.16. BIS estimates that this new collection will involve an annual burden of 15 hours. Send comments regarding these burden estimates or any other aspect of these collections of information, including suggestions for reducing the burden, to David Rostker, OMB Desk Officer, by e-mail at david_rostker@omb.eop.gov or by fax to (202) 395–7285; and to the Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, P.O. Box 273, Washington, DC 20044. 3. This rule does not contain policies with Federalism implications as this 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 or foreign affairs function of the United States (see 5 U.S.C. 553(a)(1)). Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule by 5 U.S.C. 553, or by any other law, the analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. However, to obtain the benefit of a variety of viewpoints before issuing any final rule, BIS is issuing this rule in proposed form with a request for comments. List of Subjects cprice-sewell on PROD1PC71 with PROPOSALS 15 CFR Part 744 Exports, Reporting and recordkeeping requirements, Terrorism. 15 CFR Part 772 Exports. Accordingly, parts 744 and 772 of the Export Administration Regulations (15 CFR parts 730–774) are amended as follows: VerDate Aug<31>2005 15:43 Jun 04, 2007 Jkt 211001 PART 744—[AMENDED] 1. The authority citation for part 744 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; Sec. 901–911, Pub. L. 106– 387; Sec. 221, Pub. L. 107–56; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006); Notice of October 27, 2006, 71 FR 64109 (October 31, 2006). 2. In § 744.1(a)(1), a new sentence immediately following the current sixth sentence and a new sentence immediately following the current tenth sentence are added, to read as follows: § 744.1 General provisions. (a)(1) * * * Section 744.11 imposes license requirements, to the extent specified in Supplement No. 4 of this part on entities listed in Supplement No. 4 of this part for activities contrary to the national security or foreign policy interests of the United States.* * * Section 744.16 sets forth the right of a party listed in Supplement No. 4 of this part to request that its listing be removed or modified. 3. Section § 744.11 is added to read as follows: § 744.11 License requirements that apply to entities acting contrary to the national security or foreign policy interests of the United States. BIS may impose foreign policy export and reexport license requirements and limitations on availability of license exceptions and may set license application review policy based on the criteria in this section. Such requirements, limitations and policy are in addition to those set forth elsewhere in the EAR. License requirements, limitations on use of license exceptions and license application review policy will be imposed under this section by adding an entity to the Entity List with a reference to this section and by stating on the Entity List the license requirements and license application review policy that apply to that entity. BIS may remove an entity from the Entity List if it is no longer engaged in the activities described in paragraph (b) of this section and is unlikely to engage in such activities in the future. BIS may modify the license exception limitations and license application review policy PO 00000 Frm 00029 Fmt 4702 Sfmt 4702 31007 that applies to a particular entity to implement the policies of this section. Any modification to the Entity List proposed to be made pursuant to this section will be reviewed by the Departments of Commerce, State, and Defense, and Energy and the Treasury as appropriate. (a) License Requirement, Availability of License Exceptions, and License Application Review Policy. A license is required, to the extent specified on the Entity List, to export or reexport any item subject to the EAR to an entity that is listed on the Entity List in an entry that contains a reference to this section. License Exceptions may not be used unless authorized in that entry. Applications for licenses required by this section will be evaluated as stated in that entry in addition to any other applicable review policy stated elsewhere in the EAR. (b) Criteria for revising the Entity List. Entities that BIS has reasonable cause to believe, based on specific and articulable facts, have been, are, or pose a significant risk of being or becoming involved in activities that are contrary to the national security or foreign policy interests of the United States and those acting on behalf of such entities may be added to the Entity List pursuant to this section. This section may not be used to place on the Entity List any party to which exports or reexports require a license pursuant to §§ 744.12, 744.13, 744.14 or 744.18 of this part. This section may not be used to place on the Entity List any party if exports or reexports to that party of items that are subject to the EAR are prohibited by or require a license from another U.S. government agency. This section may not be used to place any U.S. person, as defined in § 772.1, on the Entity List. Examples of activities that could be contrary to the national security or foreign policy interests of the United States include: (1) Supporting persons engaged in acts of terror; (2) Actions that could enhance the military capability of, or the ability to support terrorism of governments that have been designated by the Secretary of State as having repeatedly provided support for acts of international terrorism; (3) Transferring, developing, servicing, repairing or producing conventional weapons in a manner that is contrary to United States national security or foreign policy interests or enabling such transfer, service, repair, development, or production by supplying parts, components, technology, or financing for such activity; E:\FR\FM\05JNP1.SGM 05JNP1 31008 Federal Register / Vol. 72, No. 107 / Tuesday, June 5, 2007 / Proposed Rules (4) Deliberately failing or refusing to comply with an end use check conducted by or on behalf of BIS or the Directorate of Defense Trade Controls of the Department of State, by denying access, by refusing to provide information about parties to a transaction, or by providing information about such parties that is false or that cannot be verified or authenticated; or (5) Engaging in conduct that poses a risk of violating the EAR and raises sufficient concern that BIS believes that prior review of exports or reexports involving the party and the possible imposition of license conditions or license denial enhances BIS’s ability to prevent violations of the EAR. 4. Section 744.16 is added to read as follows: § 744.16 Procedure for requesting removal or modification of an Entity List Entity. Any entity listed on the Entity List may request that its listing be removed or modified. (a) All such requests, including reasons therefor, must be in writing and sent to: (Address to be added in final rule). (b) BIS will review such requests in conjunction with the Departments of Defense, State and Energy, and if appropriate in a particular case, the Treasury. (c) The Chair of the End User Review Committee will convey the decision on the request to the requester in writing. That decision will be the final agency action on the request. PART 772—[AMENDED] 5. The authority citation for part 772 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 44551 (August 7, 2006). 6. In § 772.1 the definition of U.S. person is amended by revising paragraph (a) introductory text to read as follows: cprice-sewell on PROD1PC71 with PROPOSALS § 772.1 Definition of terms as used in the Export Administration Regulations (EAR). * * * U.S. Person. (a) For purposes of §§ 744.6, 744.10, 744.11, 744.12, 744.13, and 744.14 of the EAR, the term U.S. person includes: * * * * * Dated: May 29, 2007. Christopher A. Padilla, Assistant Secretary for Export Administration. [FR Doc. E7–10788 Filed 6–4–07; 8:45 am] BILLING CODE 3510–33–P VerDate Aug<31>2005 15:43 Jun 04, 2007 Jkt 211001 DEPARTMENT OF STATE 22 CFR Part 62 RIN 1400–AC35 [Public Notice 5797] Exchange Visitor Program—College and University Students, Student Interns Department of State. Proposed rule with request for comments. AGENCY: ACTION: SUMMARY: The Department is hereby proposing to revise its regulations concerning College and University Students. The proposed Rule, if adopted, will create a new subcategory of the College and University Student category—‘‘Student Interns’’. Participation in this new sub-category is open to foreign students enrolled and pursuing full-time studies at a postsecondary educational institution outside the United States. Student interns may participate in a student internship program for up to 12 months at each degree level. DATES: The Department will accept comments on the proposed regulation from the public up to August 6, 2007. ADDRESSES: You may submit comments identified by any of the following methods: • Persons with access to the Internet may also view this notice and provide comments by going to the regulations.gov Web site at: http:// www.regulations.gov/index.cfm. • Mail (paper, disk, or CD–ROM submissions): U.S. Department of State, Office of Exchange Coordination and Designation, SA–44, 301 4th Street, SW., Room 734, Washington, DC 20547 • E-mail: jexchanges@state.gov. You must include the RIN (1400–xxxx) in the subject line of your message. FOR FURTHER INFORMATION CONTACT: Stanley S. Colvin, Director, Office of Exchange Coordination and Designation, U.S. Department of State, SA–44, 301 4th Street, SW., Room 734, Washington, DC 20547; or e-mail at jexchanges@state.gov. The Department of State (Department) designates U.S. government, academic and private sector entities to conduct educational and cultural exchange programs pursuant to a broad grant of authority provided by the Mutual Educational and Cultural Exchange Act of 1961, as amended (Fulbright-Hays Act). Under this authority, designated program sponsors facilitate the entry into the United States of more than SUPPLEMENTARY INFORMATION: PO 00000 Frm 00030 Fmt 4702 Sfmt 4702 300,000 exchange participants each year. The former United States Information Agency (USIA) and, as of October 1, 1999, its successor, the Department, have promulgated regulations governing the Exchange Visitor Program that are set forth at 22 CFR 62. Regulations governing exchange visitor college and university students appear at 22 CFR 62.23. The Department plans to publish an Interim Final Rule relating to exchange visitor trainees and interns (see 22 CFR 62.22). This Interim Final Rule creates a new exchange visitor category—the Intern—for private sector organizations sponsoring individuals who are currently enrolled in and pursuing studies at a degree- or certificategranting post-secondary academic institution outside the United States or have graduated from such an institution no more than 12 months prior to his/her exchange visitor program begin date, and who enters the United States to participate in a structured and guided work-based internship program in his/ her specific academic field. This Proposed Rule is promulgated to make the use of a similar intern category available to American college and university Exchange Visitor Program designated sponsors. Generally speaking, the proposed regulations governing the new student intern category track the internship regulations applicable to training program sponsors. The new student intern sub-category is available to foreign students enrolled in accredited post-secondary educational institutions outside the United States. Student interns may participate in a student internship program for up to 12 months at each degree level. For example, if a student comes to the United States to participate in a student internship program at the equivalent of a baccalaureate program, he/she could remain in the United States for up to 12 months. The same individual would be permitted another student internship program up to 12 months at the next higher degree level, such as a masters degree program, or students changing majors and obtaining a new degree. Selection criteria for the new student intern sub-category must include the following requirements: The student must be accepted to participate in an internship by the post-secondary educational institution listed as the sponsor on his or her Form DS–2019 and is primarily in the United States to engage in a student internship program rather than to engage in employment or provide services to an employer; the student intern must be in good E:\FR\FM\05JNP1.SGM 05JNP1
[Pages 31005-31008]
[FR Doc No: E7-10788]
15 CFR Parts 744 and 772
[Docket No. 0612243150-63150-01]
RIN 0694-AD82
Authorization To Impose License Requirements for Exports or
Reexports to Entities Acting Contrary to the National Security or
Foreign Policy Interests of the United States
SUMMARY: The Entity List (Supplement No. 4 to part 744 of the Export
Administration Regulations) provides notice to the public that certain
exports and reexports to parties identified on the Entity List require
a license from the Bureau of Industry and Security (BIS) and that
availability of License Exceptions in such transactions is limited.
This proposed rule would expand the scope of reasons for which BIS may
add parties to the Entity List. This proposed rule would also amend the
Export Administration Regulations (EAR) to state explicitly that a
party listed on the Entity List has a right to request that its listing
be removed or modified and would set procedures for addressing such
DATES: Comments concerning this rule must be received by BIS no later
than August 6, 2007.
eRulemaking Portal at http://www.regulations.gov (follow the
instructions for submitting comments) by e-mail directly to BIS at
publiccomments@bis.doc.gov (refer to regulatory identification number
0694-AD82 in the subject line), by fax at (202) 482-3355, or on paper
to Regulatory Policy Division, Office of Exporter Services, Bureau of
Regulatory Identification Number (RIN) 0694-AD82 in all comments.
FOR FURTHER INFORMATION CONTACT: Mike Rithmire, Office of the Assistant
Secretary for Export Administration, Bureau of Industry and Security,
e-mail mrithmir@bis.doc.gov, tel. ( 202) 482-6105.
The Entity List (Supplement No. 4 to part 744 of the EAR) provides
notice to the public of the identity of certain parties whose presence
as a recipient of items subject to the Export Administration
Regulations (EAR) can impose a license requirement in an export or
reexport transaction. The reasons for which BIS may place an entity on
the Entity List are stated in Sec. Sec.  744.2, 744.3, 744.4, 744.6,
744.10 and 744.20 of the EAR.
In addition to those reasons, this proposed rule would create a new
Sec.  744.11 to authorize BIS to add to the Entity List entities that
BIS has reasonable cause to believe, based on specific and articulable
facts, have been, are or pose a risk of being involved in activities
of the United States or those acting on behalf of such entities. This
new section would not be used to add to the Entity List entities that
are U.S. persons (as defined in Sec.  772.1 of the EAR). This new
section also would not be used to add to the Entity List entities for
which the EAR already impose a license requirement because those
entities are already listed on the List of Specially Designated
Nationals and Blocked Persons published by the Treasury Department,
Reason for the Changes Proposed by This Rule
BIS is proposing to take this action to focus its export control
efforts more closely on problematic potential recipients of items that
are subject to the EAR, but who do not meet the criteria currently set
forth in Sec. Sec.  744.2, 744.3, 744.4, 744.6, 744.10 or 744.20. With
this rule, the United States government would be able to conduct prior
review and make appropriate licensing decisions regarding proposed
exports and reexports to such recipients to the degree necessary to
protect its interests. BIS would be able to tailor license requirements
and availability of license exceptions for exports and reexports to
parties who have taken, are taking, or will take actions that are
contrary to United States national security or foreign policy interests
without imposing additional license requirements that apply broadly to
entire destinations or items. BIS believes that such targeted
application of license requirements would provide the flexibility to
deter use of items that are subject to the EAR in ways that are
inimical to the interests of the United States with minimal costs to
disruption of legitimate trade. As export controls continue to focus
not just on countries, but also on individual customers or entities,
BIS believes it is important to provide more information to the public
about entities of concern. Implementation of this rule will provide
additional information to the public to enhance the ability to screen
potential recipients of items subject to the EAR.
In addition, this proposed rule would simplify the EAR by reducing
the need to issue general orders to impose license requirements on
specific parties. License requirements currently imposed on specific
entities through general orders would, under this rule, be imposed by
adding such entities to the Entity List. Such an action would reduce
the number of EAR provisions that the public would have to review to
determine license requirements under the EAR.
Summary of the Changes Proposed by This Rule
This proposed rule would authorize BIS to impose foreign policy
export and reexport license requirements, limit the availability of
License Exceptions, and set license application review policy for
exports and reexports of items subject to the EAR to entities that BIS
has reasonable cause to believe, based on specific and articulable
proposed rule would not require that such activities involve items or
activities that are subject to the EAR.
This proposed rule lists five types of conduct, in addition to the
grounds set forth in Sec. Sec. 744.2, 744.3, 744.4, 744.6 or 744.20,
that BIS could determine are contrary to U.S. national security or
foreign policy interests. They are: (i) Supporting persons engaged in
acts of terror; (ii) Actions that could enhance the military capability
of, or the ability to support terrorism of governments that have been
support for acts of international terrorism; (iii) Transferring,
developing, servicing, repairing, or producing conventional weapons in
a manner that is contrary to United States national security or foreign
policy interests or enabling such transfer, development, service,
repair or production by supplying parts, components, technology, or
financing for such activity; (iv) Deliberately failing or refusing to
comply with an end use check conducted by or on behalf of BIS or the
Department of State, Directorate of Defense Trade Controls by denying
access, by refusing to provide information about parties to a
transaction, or by providing information about such parties that is
false or that cannot be verified or authenticated; and (v) Engaging in
conduct that poses a risk of violating the EAR and raises sufficient
concern that prior review of exports or reexports involving the party
and the possible imposition of license conditions or license denial
enhances BIS's ability to prevent violations of the EAR.
These criteria are illustrative of conduct that could be contrary
States. A party could be added to the Entity List if specific and
articulable facts provided reasonable cause to believe that it is
involved in, has been involved in, or poses a significant risk of being
or becoming involved in one of the five listed illustrative activities
or other activities that are contrary to U.S. national security or
This proposed rule also would authorize BIS to modify the license
requirements, license exception availability or license application
review policy that applies to any entity placed on the Entity List
This proposed rule would not be used to add to the Entity List a
party to which exports or reexports require a license pursuant to
Sec. Sec.  744.12, 744.13, 744.14 or 744.18 of the EAR. Those sections
impose license requirements because of the presence of certain parties
published by the U.S. Department of the Treasury, Office of Foreign
Assets Control. This proposed rule would not authorize placing U.S.
persons, as defined in Sec.  772.1 of the EAR, on the Entity List.
All impositions of license requirements or statements of license
application review policy or any modification thereof made pursuant to
this rule would be required to be made by publishing an amendment to
the Entity List found at Supplement No. 4 to part 744 of the Export
Administration Regulations. Under this proposed rule, license
exceptions are not available for any entity added to the Entity List
pursuant to this rule unless specifically authorized in the entry for
This proposed rule would explicitly set forth the ability of a
party who is listed on the Entity List to request that its listing be
removed or modified. Such requests, including reasons therefor, would
have to be made in writing, and BIS would be required to provide a
written response that would be the final agency decision on the
request. Such requests would be reviewed by the Departments of
Commerce, State, Defense, and Energy and, if appropriate in a
particular case, the Treasury. The interagency decision, as
communicated to the requesting entity by BIS, would be the final agency
action on such a request.
This proposed rule would make a conforming change to the definition
of U.S. person in Sec.  772.1 by adding Sec.  744.11 to the list of
sections to which that definition applies.
The license requirements proposed by this rule would be an
expansion of foreign policy export controls that would require a report
to Congress in accordance with section 6 of the Export Administration
Act. BIS will submit the appropriate report to Congress before
implementing any such expanded controls.
BIS is seeking public comments on this proposed rule and will
consider all comments received on or before August 6, 2007 in
developing any final rule. Comments received after that date will be
considered if possible, but their consideration cannot be assured. All
public comments on this proposed rule must be in writing (including fax
or e-mail) and will be a matter of public record, available for public
inspection and copying. The Office of Administration, Bureau of
Industry and Security, U.S. Department of Commerce, displays these
public comments on BIS's Freedom of Information Act (FOIA) Web site at
http://www.bis.doc.gov/foia. This office does not maintain a separate
public inspection facility. If you have technical difficulties
accessing this Web site, please call BIS's Office of Administration at
(202) 482-0953 for assistance.
1. This rule has been determined to be a significant rule pursuant
to Executive Order 12866.
of Management and Budget (OMB) Control Number. This rule involves a
collection of information that has been approved by the 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. Miscellaneous and
recordkeeping activities account for 12 minutes per submission.
Additionally, this rule contains a new collection of information
subject to review and approval by OMB under the Paperwork Reduction
Act. This collection will be submitted to OMB for approval. This rule
proposes a procedure for a listed party to request removal or
modification of its listing, as set forth in proposed Sec.  744.16. BIS
estimates that this new collection will involve an annual burden of 15
of these collections of information, including suggestions for reducing
et seq., are not applicable. However, to obtain the benefit of a
variety of viewpoints before issuing any final rule, BIS is issuing
this rule in proposed form with a request for comments.
Accordingly, parts 744 and 772 of the Export Administration
1. The authority citation for part 744 continues to read as
2. In Sec.  744.1(a)(1), a new sentence immediately following the
current sixth sentence and a new sentence immediately following the
current tenth sentence are added, to read as follows:
Sec.  744.1  General provisions.
(a)(1) * * * Section 744.11 imposes license requirements, to the
extent specified in Supplement No. 4 of this part on entities listed in
Supplement No. 4 of this part for activities contrary to the national
security or foreign policy interests of the United States.* * * Section
744.16 sets forth the right of a party listed in Supplement No. 4 of
this part to request that its listing be removed or modified.
3. Section Sec.  744.11 is added to read as follows:
Sec.  744.11  License requirements that apply to entities acting
BIS may impose foreign policy export and reexport license
requirements and limitations on availability of license exceptions and
may set license application review policy based on the criteria in this
section. Such requirements, limitations and policy are in addition to
those set forth elsewhere in the EAR. License requirements, limitations
on use of license exceptions and license application review policy will
be imposed under this section by adding an entity to the Entity List
with a reference to this section and by stating on the Entity List the
license requirements and license application review policy that apply
to that entity. BIS may remove an entity from the Entity List if it is
no longer engaged in the activities described in paragraph (b) of this
section and is unlikely to engage in such activities in the future. BIS
may modify the license exception limitations and license application
review policy that applies to a particular entity to implement the
policies of this section. Any modification to the Entity List proposed
to be made pursuant to this section will be reviewed by the Departments
of Commerce, State, and Defense, and Energy and the Treasury as
(a) License Requirement, Availability of License Exceptions, and
License Application Review Policy. A license is required, to the extent
specified on the Entity List, to export or reexport any item subject to
the EAR to an entity that is listed on the Entity List in an entry that
contains a reference to this section. License Exceptions may not be
used unless authorized in that entry. Applications for licenses
required by this section will be evaluated as stated in that entry in
addition to any other applicable review policy stated elsewhere in the
(b) Criteria for revising the Entity List. Entities that BIS has
reasonable cause to believe, based on specific and articulable facts,
have been, are, or pose a significant risk of being or becoming
behalf of such entities may be added to the Entity List pursuant to
this section. This section may not be used to place on the Entity List
any party to which exports or reexports require a license pursuant to
Sec. Sec.  744.12, 744.13, 744.14 or 744.18 of this part. This section
may not be used to place on the Entity List any party if exports or
reexports to that party of items that are subject to the EAR are
prohibited by or require a license from another U.S. government agency.
This section may not be used to place any U.S. person, as defined in
Sec.  772.1, on the Entity List. Examples of activities that could be
(1) Supporting persons engaged in acts of terror;
(2) Actions that could enhance the military capability of, or the
ability to support terrorism of governments that have been designated
by the Secretary of State as having repeatedly provided support for
(3) Transferring, developing, servicing, repairing or producing
conventional weapons in a manner that is contrary to United States
national security or foreign policy interests or enabling such
transfer, service, repair, development, or production by supplying
parts, components, technology, or financing for such activity;
(4) Deliberately failing or refusing to comply with an end use
check conducted by or on behalf of BIS or the Directorate of Defense
Trade Controls of the Department of State, by denying access, by
refusing to provide information about parties to a transaction, or by
providing information about such parties that is false or that cannot
be verified or authenticated; or
(5) Engaging in conduct that poses a risk of violating the EAR and
raises sufficient concern that BIS believes that prior review of
exports or reexports involving the party and the possible imposition of
license conditions or license denial enhances BIS's ability to prevent
4. Section 744.16 is added to read as follows:
Sec.  744.16  Procedure for requesting removal or modification of an
Entity List Entity.
Any entity listed on the Entity List may request that its listing
be removed or modified.
(a) All such requests, including reasons therefor, must be in
writing and sent to: (Address to be added in final rule).
(b) BIS will review such requests in conjunction with the
Departments of Defense, State and Energy, and if appropriate in a
particular case, the Treasury.
(c) The Chair of the End User Review Committee will convey the
decision on the request to the requester in writing. That decision will
be the final agency action on the request.
5. The authority citation for part 772 continues to read as
6. In Sec.  772.1 the definition of U.S. person is amended by
revising paragraph (a) introductory text to read as follows:
Sec.  772.1  Definition of terms as used in the Export Administration
U.S. Person. (a) For purposes of Sec. Sec.  744.6, 744.10, 744.11,
744.12, 744.13, and 744.14 of the EAR, the term U.S. person includes:
[FR Doc. E7-10788 Filed 6-4-07; 8:45 am]