
[Federal Register Volume 81, Number 152 (Monday, August 8, 2016)]
[Rules and Regulations]
[Pages 52326-52329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18070]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 160303184-6184-01]
RIN 0694-AG90


Amendment to the Export Administration Regulations To Add Targets 
for the Production of Tritium and Related Development and Production 
Technology to the List of 0Y521 Series

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule with request for comments.

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SUMMARY: In this interim final rule, the Bureau of Industry and 
Security (BIS) amends the Export Administration Regulations (EAR) to 
make certain items subject to the EAR and to impose on those items a 
license requirement for export and reexport to all destinations, except 
Canada. Specifically, this rule classifies certain specified targets 
``specially designed'' for the production of tritium and related 
``development'' and ``production'' technology under Export Control 
Classification Numbers (ECCNs) 0A521 and 0E521, respectively, on the 
Commerce Control List (CCL). As described in the final rule that 
established the 0Y521 series and that was published in the Federal 
Register on April 13, 2012, items are added to the 0Y521 series upon a 
determination by the Department of Commerce, with the concurrence of 
the Departments of Defense and State, and other agencies as 
appropriate, that the items should be controlled for export because the 
items provide at least a significant military or intelligence advantage 
to the United States or foreign policy reasons justify control. In this 
matter, the Department of Energy also concurred in the control imposed. 
The items identified in this rule are controlled for regional stability 
(RS) Column 1 reasons. The only license exception available for these 
items is for exports, reexports, and transfers (in-country) made by or 
consigned to a department or agency of the U.S. Government.

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DATES: This rule is effective August 8, 2016. Comments must be received 
by October 7, 2016.

ADDRESSES: You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
The identification number for this rulemaking is BIS-2016-0027.
     By email directly to: doc.gov">publiccomments@bis.doc.gov. Include 
RIN 0694-AG90 in the subject line.
     By mail or delivery to Regulatory Policy Division, Bureau 
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th 
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN 
0694-AG90.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Director, Nuclear and 
Missile Technology Controls Division, Office of Nonproliferation and 
Treaty Compliance, by phone at (202) 482-1641, or by email at 
Steven.Clagett@bis doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    BIS established the ECCN 0Y521 series to identify items that 
warrant control on the CCL but are not yet identified in an existing 
ECCN (77 FR 22191, April 13, 2012). Items are added to the ECCN 0Y521 
series by the Department of Commerce, with the concurrence of the 
Departments of Defense and State, and other agencies as appropriate, 
upon a determination that an item should be controlled because it 
provides at least a significant military or intelligence advantage to 
the United States or because foreign policy reasons justify such 
control. In this matter, the Department of Energy also concurred in the 
control imposed. The ECCN 0Y521 series is a temporary holding 
classification with a limitation that while an item is temporarily 
classified under ECCN 0Y521, the U.S. Government works to adopt a 
control through the relevant multilateral regime(s), in this case the 
Nuclear Suppliers Group, to determine an appropriate longer-term 
control over the item, or that the item does not warrant control on the 
CCL.
    Items classified under ECCN 0Y521, including the items identified 
in this interim final rule as 0A521 and 0E521 items, remain so-
classified for one year from the date a final rule identifying the item 
is published in the Federal Register amending the EAR, unless the item 
is re-classified under a different ECCN, under an EAR99 designation, or 
the 0Y521 classification is extended. During this time, the U.S. 
Government determines whether it is appropriate to submit a proposed 
control to the applicable export control regime (e.g., the Nuclear 
Suppliers Group) for potential multilateral control, with the 
understanding that multilateral controls are preferable when practical. 
An item's ECCN 0Y521 classification may be extended for two one-year 
periods to provide time for the U.S. Government and multilateral 
regime(s) to reach agreement on controls for the item, and provided 
that the U.S. Government has submitted a proposal to obtain 
multilateral controls over the item. Further extension beyond three 
years may occur only if the Under Secretary for Industry and Security 
makes a determination that such extension is in the national security 
or foreign policy interests of the United States. An extension or re-
extension, including a determination by the Under Secretary for 
Industry and Security, will be published in the Federal Register.

License Requirements, Policies and Exceptions

    The license requirements and policies for the ECCN 0Y521 series 
appear in Sec.  742.6(a)(7) of the EAR. ECCN 0Y521 items are subject to 
a nearly worldwide license requirement (i.e., for every country except 
Canada) with a case-by-case license review policy, through regional 
stability (RS Column 1) controls. The description and status of ECCN 
0Y521 items appear in Supplement No. 5 to part 774 of the EAR, along 
with any item-specific license exceptions, where applicable. Unless 
otherwise indicated, License Exception GOV is the only license 
exception available and is applicable to all ECCN 0Y521 series items, 
including those items identified in this notice, if the item is within 
the scope of Sec.  740.11(b)(2)(ii) (Exports, reexports, and transfers 
(in-country) made by or consigned to a department or agency of the U.S. 
Government), as provided in Sec.  740.2(a)(14).

Addition of ECCN 0A521 and 0E521 Items: Targets for the Production of 
Tritium and Related ``Development'' and ``Production'' Technology

    In this rule, BIS amends the EAR to make targets made of or 
containing lithium ``specially designed'' for the production of tritium 
by insertion in the core of a nuclear reactor and related 
``development'' and ``production'' technology subject to the EAR and 
imposes a license requirement on the items. These items are being added 
to the 0Y521 series pursuant to a determination by the Department of 
Commerce, with the concurrence of the Departments of Defense, State and 
Energy, that the items should be controlled because they provide a 
significant military or intelligence advantage to the United States or 
because foreign policy reasons justify such controls.
    ECCN 0A521 No. 1, which appears in the table found in Supplement 
No. 5 to part 774 of the EAR, covers targets made of or containing 
lithium ``specially designed'' for the production of tritium by 
insertion in the core of a nuclear reactor.
    ECCN 0E521 No. 1 covers technology required for the ``development'' 
or ``production'' of items classified under ECCN 0A521 No. 1.

License Applications for the New ECCN 0A521 and 0E521 Items

    License applications for these items may be submitted through SNAP-
R in accordance with Sec.  748.6 of the EAR. Exporters are directed to 
include detailed descriptions and technical specifications with the 
license application, and identify the item's ECCN.
    The rule is being issued in interim final form because while the 
government believes that it is in the national security interests of 
the United States to immediately implement these controls, it also 
wants to provide the interested public with an opportunity to comment 
on the new controls of the items. Comments may be submitted in 
accordance with the DATES and ADDRESSES sections of this rule. BIS will 
review and, if appropriate, address such comments through rulemaking 
consistent with the process described in the April 13, 2012 final rule 
creating the ECCN 0Y521 series (77 FR 22191).

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 7, 2015, 80 FR 48233 (August 11, 2015), has continued the Export 
Administration Regulations in effect under the International Emergency 
Economic Powers Act. 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

[[Page 52328]]

alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distribute 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.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is 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 affects two approved collections: (1) The 
Simplified Network Application Processing + System (control number 
0694-0088), which carries a burden hour estimate of 43.8 minutes, 
including the time necessary to submit license applications, among 
other things, as well as miscellaneous and other recordkeeping 
activities that account for 12 minutes per submission; and (2) License 
Exceptions and Exclusions (0694-0137). BIS does not believe that this 
rule will materially increase the number of submissions under these 
collections.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring prior notice, the opportunity for public comment 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)). BIS, with the concurrence of the U.S. 
Departments of Defense and State, is implementing this rule because the 
items identified for the ECCN 0Y521 series in this rule provide a 
significant military or intelligence advantage to the United States. 
Immediate imposition of a license requirement is necessary to effect 
the national security and foreign policy goals of this rule. Immediate 
implementation will allow BIS to prevent exports of these items to 
users and for uses that pose a national security threat to the United 
States or its allies. If BIS delayed this rule to allow for prior 
notice and opportunity for public comment, the resulting delay in 
implementation would afford an opportunity for the export of these 
items to users and uses that pose such a national security threat, 
thereby undermining the purpose of the rule. In addition, if parties 
receive notice of the U.S. Government's intention to control these 
items under 0Y521 once a final rule was published, they might have an 
incentive to either accelerate orders of these items or attempt to have 
the items exported prior to the imposition of the control.
    Further, BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3). Immediate implementation of 
these changes will allow BIS to prevent exports of these items to users 
and for uses that pose a national security threat to the United States 
or its allies. If BIS delayed this rule to allow for a 30-day delay in 
effectiveness, the resulting delay in implementation would afford an 
opportunity for the export of these items to users and uses that pose 
such a national security threat, thereby undermining the purpose of the 
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. Accordingly, 
no regulatory flexibility analysis is required and none has been 
prepared. Although notice and opportunity for comment are not required, 
BIS is issuing this rule as an interim final rule with a request for 
comments. All comments must be in writing and submitted via one or more 
of the methods listed under the ADDRESSES caption to this notice. All 
comments (including any personal identifiable information) will be 
available for public inspection and copying. Those wishing to comment 
anonymously may do so by submitting their comment via regulations.gov 
and leaving the fields for identifying information blank.

List of Subjects in 15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

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

PART 774--[AMENDED]

0
1. The authority citation for part 774 continues to read as follows:

    Authority:  50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et 
seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 42 U.S.C. 6212; 15 U.S.C. 
1824a; 50 U.S.C. 4305; 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 7, 2015, 80 FR 
48233 (August 11, 2015).


0
2. Amend Supplement No. 5 to Part 774 by:
0
A. In the table, remove the reserved entry under 0A521 and add in its 
place entry No. 1.
0
B. In the table, remove the reserved entry under 0E521 and add in its 
place entry No. 1.
    The additions read as follows:

Supplement No. 5 to Part 774--Items Classified Under ECCNS 0A521, 
0B521, 0C521, 0D521 AND 0E521

    The following table lists items subject to the EAR that are not 
listed elsewhere in the CCL, but which the Department of Commerce, 
with the concurrence of the Departments of Defense and State, has 
identified warrant control for export or reexport because the items 
provide at least a significant military or intelligence advantage to 
the United States or for foreign policy reasons.

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   Item descriptor Note: The                                      Date when the item will be
description must match by model        Date of initial or          designated EAR99, unless      Item-specific
 number or a broader descriptor          subsequent BIS          reclassified in another ECCN  license exception
 that does not necessarily need   classification (ID = initial   or the 0Y521 classification      eligibility
     to be company specific       date; SD = subsequent date)            is  reissued
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                                    0A521. Systems, Equipment and Components.
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No. 1 Targets made of or         August 8, 2016 (ID)..........  August 8, 2017...............  License Exception
 containing lithium ``specially                                                                 GOV under Sec.
 designed'' for the production                                                                  740.11(b)(2)(ii)
 of tritium by insertion in the                                                                 only.
 core of a nuclear reactor.
 

[[Page 52329]]

 
                                                  * * * * * * *
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                                               0E521. Technology.
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No. 1 ``Technology'' required    August 8, 2016 (ID)..........  August 8, 2017...............  License Exception
 for the ``development'' or                                                                     GOV under Sec.
 ``production'' of 0A521 No. 1                                                                  740.11(b)(2)(ii)
 items.                                                                                         only.
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    Dated: July 25, 2016.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2016-18070 Filed 8-5-16; 8:45 am]
 BILLING CODE 3510-33-P


