
[Federal Register Volume 76, Number 219 (Monday, November 14, 2011)]
[Rules and Regulations]
[Pages 70337-70340]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29357]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 740 and 748

[Docket No. 110818514-1531-01]
RIN 0694-AF33


Exports and Reexports to the Principality of Liechtenstein

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 certain requirements in the Export Administration 
Regulations (EAR) that apply to the Principality of Liechtenstein 
(Liechtenstein). In this final rule, BIS aligns license requirements 
and licensing policy under the EAR for Liechtenstein with those for 
Switzerland. As a result, for purposes of the EAR, Liechtenstein will 
be treated the same as Switzerland.
    By virtue of a Customs Union Treaty with Switzerland, Liechtenstein 
has

[[Page 70338]]

adopted the export controls implemented under Swiss law, including 
controls equivalent to those prescribed under multilateral regimes, and 
has authorized Switzerland to administer and enforce export controls 
within Liechtenstein's territory. As a result of this arrangement, 
Liechtenstein and Switzerland serve as one territory for customs and 
export purposes. Having recently been made aware of the full scope of 
this arrangement and its consequences on export controls, BIS has 
determined that it is appropriate to codify the treatment of 
Liechtenstein and Switzerland as one territory for purposes of the EAR. 
This treatment of Liechtenstein is consistent with the effort of the 
United States to streamline licensing requirements where export 
controls prescribed by the multilateral regimes are implemented.

DATES: This rule is effective November 14, 2011.

FOR FURTHER INFORMATION CONTACT: Sheila Quarterman, Regulatory Policy 
Division, Office of Exporter Services, Bureau of Industry and Security, 
U.S. Department of Commerce at (202) 482-2440 or by email 
Sheila.Quarterman@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    By virtue of a Customs Union Treaty with Switzerland, Liechtenstein 
has adopted the export controls implemented under Swiss law, and has 
authorized Switzerland to administer and enforce export controls within 
Liechtenstein's territory. The Bureau of Industry and Security (BIS) 
recognizes that this arrangement results in the implementation of 
export controls in Liechtenstein that are equivalent to those in 
Switzerland, and in accordance with the multilateral export control 
regimes. By virtue of the Customs Union Treaty of 1923 between 
Switzerland and Liechtenstein (Customs Union Treaty),\1\ Liechtenstein 
is a part of the ``Swiss customs territory'' and Switzerland acts on 
behalf of Liechtenstein regarding issues of trade in goods. The Customs 
Union Treaty empowers Switzerland to conclude and incur undertakings 
that apply automatically and directly to Liechtenstein. As a result of 
this arrangement, Swiss export control law applies equally to exporters 
from Switzerland and Liechtenstein. Further, Switzerland is responsible 
for administering export controls and enforcing export controls in 
Liechtenstein. Consequently, in this final rule, BIS aligns its 
treatment of Liechtenstein with that of Switzerland, resulting in the 
treatment of Liechtenstein and Switzerland as one territory for 
purposes of the Export Administration Regulations (EAR). Therefore, 
license requirements and licensing policy under the EAR for 
Liechtenstein are effectively the same as those for Switzerland. This 
treatment of Liechtenstein is consistent with the effort of the United 
States to streamline licensing requirements where export controls 
prescribed by the multilateral regimes are implemented.
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    \1\ Customs Union Treaty of 29 March 1923 between the 
Principality of Liechtenstein and Switzerland, 21 League of Nations 
Treaty Series 233 (1924).
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Specific Amendments to the EAR That Align Liechtenstein With 
Switzerland for Purposes of Licensing Requirements

    In this rule, BIS amends the EAR by adding a sentence to paragraph 
(b) (Countries) of Section 738.3 (Commerce Country Chart Structure) 
that states that Liechtenstein, which serves as one territory with 
Switzerland for customs and export purposes, will be accorded the same 
licensing treatment as Switzerland under the EAR.
    In addition and consistent with the purpose of this rule, BIS 
amends the EAR by adding a footnote for ``Liechtenstein'' on the 
Commerce Country Chart in Supplement No. 1 to Part 738 that states, 
``Refer to Switzerland for licensing requirements for Liechtenstein 
under the EAR.''; and by removing the ``X'' in chemical and biological 
weapons column 2, nuclear nonproliferation column 1, national security 
column 2, and regional stability column 2. BIS also amends the EAR by 
removing Liechtenstein from the group of Computer Tier 1 Destinations 
in paragraph (c)(1) of Section 740.7 (License Exception Computers 
(APP)); Country Group B in Supplement No. 1 to Part 740; the group of 
countries for which an Import Certificate or End-User Statement may be 
required in paragraph (b)(2) of Section 748.9 (Support Documents for 
License Applications); and the Authorities Administering Import 
Certificate/Delivery Verification and End-User Statement Systems in 
Foreign Countries in Supplement No. 4 to part 748. Finally, in this 
rule, BIS removes and reserves paragraph (g), which expressly permitted 
reexports between Liechtenstein and Switzerland, in License Exception 
Additional Permissive Reexports (APR).
    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, 2011, 76 FR 50661 (August 16, 
2011), 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. 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 (OMB).
    2. Notwithstanding any other provisions of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
Control Number. This rule involves two collections of information 
subject to the PRA. This collection has been approved by OMB under 
control number 0694-0088, ``Multi-Purpose Application,'' which carries 
a burden hour estimate of 43.8 minutes to prepare and submit form BIS-
748. The other collection has been approved by OMB under control number 
0694-0106, ``Reporting and Recordkeeping Requirements under the 
Wassenaar Arrangement,'' and carries a burden hour estimate of 21 
minutes for a manual or electronic submission. Total burden hours 
associated with the PRA and OMB control numbers 0694-0088 and 0694-0106 
are not expected to increase as a result of this rule.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(a)(1), the provisions of the 
Administrative Procedure Act 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

[[Page 70339]]

foreign affairs function of the United States. (See 5 U.S.C. 
553(a)(1)). Immediate implementation of these amendments furthers 
United States policies and goals toward allies and cooperating and 
like-minded countries with regard to export controls and reduces the 
burden on exporters in relation to licensing obligations. This rule 
will positively impact regional stability by promoting greater 
responsibility in the transfer of dual-use goods, technologies, thus 
preventing destabilizing effects. This action also reconciles any 
inconsistencies in the treatment of Liechtenstein in light of its 
Treaty and export control arrangement with Switzerland and therefore is 
consistent with the effort of the United States to streamline licensing 
requirements where export controls prescribed by the multilateral 
regimes are implemented. Failure to immediately implement this rule 
would result in an unnecessary licensing burden on businesses, 
especially small businesses. Thus, in light of the United States' 
understanding of how export controls are administered in Liechtenstein, 
the United States seeks to assist businesses and prevent confusion by 
immediately removing licensing requirements that are unnecessary in 
light of the fact the international regime requirements are otherwise 
being met. 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. Therefore, this regulation is 
issued in final form. In addition, the Department finds good cause 
under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effectiveness for 
the reasons provided above. Accordingly, this regulation is made 
effective immediately upon publication.

List of Subjects

15 CFR Part 738

    Exports.

15 CFR Part 740

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

15 CFR Part 748

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

    Accordingly, parts 738, 740 and 748 of the Export Administration 
Regulations (15 CFR parts 730 through 774) are amended as follows:

PART 738--[AMENDED]

0
1. The authority citation for Part 738 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, 2011, 76 FR 50661 (August 16, 2011).


0
2. Amend Sec.  738.3 by revising paragraph (b) to read as follows:


Sec.  738.3  Commerce Country Chart structure.

* * * * *
    (b) Countries. The first column of the Country Chart lists 
countries in alphabetical order. There are a number of destinations 
that are not listed in the Country Chart contained in Supplement No. 1 
to part 738. If your destination is not listed on the Country Chart and 
such destination is a territory, possession, dependency or department 
of a country included on the Country Chart, the EAR accords your 
destination the same licensing treatment as the country of which it is 
a territory, possession, dependency or department. For example, if your 
destination is the Cayman Islands, a dependent territory of the United 
Kingdom, refer to the United Kingdom on the Country Chart for licensing 
requirements. In addition, if your destination is Liechtenstein, which 
serves as one territory with Switzerland for purposes of the EAR, refer 
to Switzerland on the Country Chart for licensing requirements.
* * * * *
0
3. Amend Supplement No. 1 to part 738 by
0
a. Revising the entry for ``Liechtenstein'' to read as set forth below; 
and
0
c. Adding footnote 5 to read as set forth below.

                                                                      Supplement No. 1 to Part 738--Commerce Country Chart
                                                                                      [Reason for control]
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                                  Chemical & biological           Nuclear        National security   Missile  Regional stability    Firearms            Crime control           Anti-terrorism
                                         weapons             nonproliferation  --------------------   tech                         convention  -------------------------------------------------
          Countries          --------------------------------------------------                    --------------------------------------------
                                CB  1     CB  2     CB  3     NP  1     NP  2     NS  1     NS  2     MT  1     RS  1     RS  2       EC  1       CC  1     CC  2     CC  3     AT  1     AT  2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Liechtenstein \5\...........        X   ........  ........  ........  ........        X   ........        X         X   ........  ............        X   ........        X   ........  ........
 
                                                                                         * * * * * * *
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\5\ Refer to Switzerland for licensing requirements for Liechtenstein under the EAR.

PART 740--[AMENDED]

0
4. The authority citation for Part 740 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. 7201 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, 2011, 76 FR 50661 (August 16, 2011).


Sec.  740.7  [Amended]

0
5. Amend Sec.  740.7 by removing ``Liechtenstein,'' from the group of 
countries in paragraph (c)(1).


Sec.  740.16  [Amended]

0
6. Amend Sec.  740.16 by removing and reserving paragraph (g).


Supplement No. 1 to Part 740  [Amended]

0
7. Amend Country Group B of Supplement No. 1 to Part 740 by removing 
``Liechtenstein''.

PART 748--[AMENDED]

0
8. The authority citation for 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, 2011, 76 
FR 50661 (August 16, 2011).


Sec.  748.9  [Amended]

0
9. Amend Sec.  748.9 by removing ``Liechtenstein'' from the group of 
countries listed in alphabetical order in paragraph (b)(2).

[[Page 70340]]

Supplement No. 4 to Part 748  [Amended]

0
10. Amend Supplement No. 4 to Part 748 by removing the entire entry for 
``Liechtenstein''.

    Dated: November 7, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-29357 Filed 11-10-11; 8:45 am]
BILLING CODE 3510-33-P


