
[Federal Register Volume 81, Number 214 (Friday, November 4, 2016)]
[Rules and Regulations]
[Pages 76859-76861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26535]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR 738, 740, 742 and 746

[Docket No. 160810723-6723-01]
RIN 0694-AH07


Amendments to the Export Administration Regulations: Update of 
Arms Embargoes on Cote d'Ivoire, Liberia, Sri Lanka and Vietnam, and 
Recognition of India as Member of the Missile Technology Control Regime

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to implement changes in 
controls on arms and related materiel to Cote d'Ivoire, Liberia, Sri 
Lanka, and Vietnam. BIS also updates the EAR to recognize the accession 
of India as a member of the Missile Technology Control Regime (MTCR).

DATES: This rule is effective November 4, 2016.

FOR FURTHER INFORMATION CONTACT: Elan Mitchell-Gee, telephone (202) 
482-4252, email elan.mitchell-gee@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    In this rule, BIS amends the Export Administration Regulations 
(EAR) to implement certain United Nations Security Council Resolutions 
(UNSCRs) adopted in 2016 that terminated arms embargoes against Cote 
d'Ivoire (UNSCR 2283) and Liberia (UNSCR 2288). Further, BIS removes 
U.S. arms embargo-related controls on Sri Lanka to reflect the 
Consolidated Appropriations Act, 2016, and on Vietnam pursuant to a 
determination made by the Secretary of State and announced by the 
President.
    BIS aims to harmonize the arms embargo-related provisions in the 
EAR, expressly or by reference, with the Directorate of Defense Trade 
Control's (DDTC) regulation of arms embargoes in Sec.  126.1 of the 
International Traffic in Arms Regulations (ITAR), ``Prohibited Exports, 
Imports, and Sales to or from Certain Countries.'' These actions 
further ongoing efforts to harmonize the EAR and the ITAR, and the 
President's Export Control Reform Initiative. The ITAR list 
incorporates countries subject to United Nations Security Council 
(UNSC) and U.S. arms embargoes. BIS primarily implements such controls 
through Country Group D: 5 ``U.S. Arms Embargoed Countries,'' in 
Supplement No. 1 to part 740 of the EAR. BIS also identifies specific 
countries subject to UNSC arms embargoes in part 746 of the EAR, and 
maintains controls on certain items pursuant to those embargoes on the 
Commerce Control List (CCL) in Supplement No. 1 to part 774.
    Countries listed in Country Group D:5 are subject to additional 
restrictions in the EAR, including on de minimis U.S. content, license 
exception availability, and licensing policy for certain items. For 
example, license applications for the export or reexport of items 
classified under 9x515 or ``600 series'' Export Control Classification 
Numbers (ECCNs) to countries in Country Group D:5 are reviewed 
consistent with the policies in Sec.  126.1 of the ITAR, as provided in 
paragraph (b)(ii) of Sec.  742.4 of the EAR. Additionally, license 
applications for items controlled on the CCL for United Nations Embargo 
reasons and destined to countries specified in Sec.  746.1(b) of the 
EAR are not approved by BIS if the authorization would be contrary to 
the relevant UNSCR, to the extent consistent with United States 
national

[[Page 76860]]

security and foreign policy interests. As a result of this rule, the 
relevant additional restrictions described above no longer apply to 
Cote d'Ivoire, Liberia, Sri Lanka, and Vietnam.
    Finally, on June 27, 2016, India acceded to the Missile Technology 
Control Regime (MTCR) as the 35th member. In this rule, BIS updates the 
EAR to recognize the status of India as a member of the Missile 
Technology Control Regime by amending paragraph (d) of Sec.  742.5 to 
remove the reference to India as an adherent to the MTCR. This rule 
includes a conforming amendment.

Respective Updates to EAR Arms Embargoes and Special Controls by 
Country

Cote d'Ivoire
    The arms embargo against Cote d'Ivoire was initially imposed 
through UNSCR 1572 (2004). UNSCR 2283 terminated the arms embargo 
against Cote d'Ivoire on April 28, 2016, in recognition of the progress 
achieved in the stabilization of the country, including in relation to 
disarmament, demobilization and reintegration, security sector reform, 
national reconciliation and the fight against impunity, as well as the 
successful conduct of the presidential election of October 25, 2015. 
Accordingly, this rule removes the United Nations Embargo (UN) controls 
on Cote d'Ivoire by removing that country from the names of UNSC arms 
embargoed countries in Sec.  746.1(b) and from Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR.
Liberia
    The arms embargo against Liberia was initially imposed through 
UNSCR 788 on November 19, 1992, and was continued through subsequent 
resolutions, including UNSCR 1903 (2009). The UNSC terminated the arms 
embargo against Liberia on May 25, 2016, through UNSCR 2288, in 
recognition of that country's progress in the past 13 years in building 
stable, effective and resilient national institutions. Accordingly, 
this rule removes the UN controls on Liberia by removing that country 
from the names of UNSC arms embargoed countries in Sec.  746.1(b) and 
from Country Group D:5 in Supplement No. 1 to part 740 of the EAR.
Sri Lanka
    The Department of State imposed a U.S. arms embargo on Sri Lanka on 
March 24, 2008, in accordance with the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2008 (Div. J, Pub. 
L. 110-161). However, licensing restrictions on Sri Lanka articulated 
in section 7044(e) of the Consolidated Appropriations Act, 2015 (Pub. 
L. 113-235) and in previous appropriations acts, were not carried 
forward in section 7044(e) of the Consolidated Appropriations Act, 2016 
(Pub. L. 114-113). On May 4, 2016, DDTC announced that it would begin 
reviewing license applications for Sri Lanka on a case-by-case basis. 
Accordingly, this rule removes Sri Lanka from Country Group D:5 in 
Supplement No. 1 to part 740 of the EAR.
Vietnam
    Starting in the 1960s, the Department of State imposed a lethal 
arms sales embargo against Vietnam. Pursuant to a determination by the 
Secretary of State, the President announced the United States' 
termination of the U.S. arms embargo against Vietnam on May 23, 2016, 
in furtherance of deepening and broadening ties between the United 
States and Vietnam since the normalization of diplomatic relations. 
Accordingly, BIS removes Vietnam from Country Group D:5 in Supplement 
No.1 to part 740 the EAR.

International Export Control Regime Update: India, Member MTCR

    On June 27, 2016, India formally acceded to the MTCR as the 35th 
member. Prior to India's MTCR membership, India's commitment to the 
U.S.-India bilateral understanding contributed to the country's status 
as an ``MTCR adherent'' and placed the country among likeminded MTCR 
members in Country Group A:2 in Supplement No. 1 to part 740. In this 
rule, BIS formally recognizes India's status as a member of MTCR by 
removing the reference to India as only an ``MTCR adherent'' from 
paragraph (d) of Sec.  742.5 of the EAR.

Conforming Amendment

    Footnote notations appear next to countries listed in the Commerce 
Country Chart in Supplement No. 1 to part 738 of the EAR that are 
subject to UNSC arms embargos. BIS removes that notation for Cote 
d'Ivoire and Liberia to conform to the termination of UNSC arms 
embargoes against those countries.

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 4, 2016, 81 FR 52587 (August 8, 2016), 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 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 + Redesign 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). This rule is not expected to 
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 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 under 5 U.S.C. 553(a)(1). This final rule 
implements U.S. multilateral commitments pursuant to United Nations 
Security Council arms embargoes. The sanctions against Cote

[[Page 76861]]

d'Ivoire and Liberia were promulgated in part to fulfill U.S. 
obligations and serve collective security interests by implementing 
United Nations Security Council arms embargoes. Furthermore, arms 
embargoes were imposed on Sri Lanka and Vietnam by the United States to 
advance national and regional stability and security. Termination of 
these embargoes under the EAR recognizes progress in the security 
situations in Cote d'Ivoire and Liberia, changes in legislative 
mandates related to Sri Lanka, and the evolution of U.S. relations with 
Vietnam, and updates the EAR to bring it in line with those changes, 
including with international authorities supported by the United States 
and which already are in effect. Lastly, these updates and the 
recognition of India as a member of the MTCR help to prevent confusing 
the public as to the status of the named destinations for purposes of 
export controls under the EAR. 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 and 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 742

    Exports, Terrorism.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 738, 740, 742 and 746 of the Export 
Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 738--[AMENDED]

0
1. The authority citation for part 738 continues to read as follows:

    Authority:  Authority: 50 U.S.C. 4601 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; 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 4, 2016, 81 FR 52587 (August 8, 
2016).

Supplement No. 1 to Part 738--[Amended]

0
2. Supplement No. 1 to part 738 ``Commerce Country Chart'' is amended 
by removing the footnote notation number 1 from ``Cote d'Ivoire'' and 
``Liberia''.

PART 740--[AMENDED]

0
3. The authority citation for part 740 continues to read as follows:

    Authority: Authority: 50 U.S.C. 4601 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 4, 2016, 81 FR 52587 (August 8, 2016).

Supplement No. 1 to Part 740--[Amended]

0
4. Supplement No. 1 to part 740, Country Group D, is amended by:
0
a. Removing the entries for ``Cote d'Ivoire'', ``Liberia'' and ``Sri 
Lanka''; and
0
b. Removing the ``X'' under column D:5 ``U.S. Arms Embargoed 
Countries'' for ``Vietnam''.

PART 742--[AMENDED]

0
5. The authority citation for part 742 continues to read as follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; 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. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Notice of November 12, 2015, 80 FR 70667 (November 13, 2015); Notice 
of August 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  742.5  [Amended]

0
6. Section 742.5 is amended by removing the clause ``, and India as an 
MTCR adherent,'' from the first sentence of paragraph (d).

PART 746--[AMENDED]

0
7. The authority citation for 15 CFR part 746 continues to read as 
follows:

    Authority:  50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 
6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 
36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 
1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential 
Determination 2003-23, 68 FR 26459, 3 CFR, 2004 Comp., p. 320; 
Presidential Determination 2007-7, 72 FR 1899, 3 CFR, 2006 Comp., p. 
325; Notice of May 3, 2016, 81 FR 27293 (May 5, 2016); Notice of 
August 4, 2016, 81 FR 52587 (August 8, 2016).


Sec.  746.1  [Amended]

0
8. Section 746.1 is amended by removing ``Cote d'Ivoire (Ivory 
Coast),'' and ``Liberia,'' from the list of countries in paragraph 
(b)(2).

    Dated: October 28, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-26535 Filed 11-3-16; 8:45 am]
 BILLING CODE 3510-33-P


