[Federal Register Volume 85, Number 36 (Monday, February 24, 2020)]
[Rules and Regulations]
[Pages 10274-10278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02941]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 740, and 742

[Docket No. 200204-0044]
RIN 0694-AH93


Amendments to Country Groups for Russia and Yemen Under the 
Export Administration Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) to revise the 
Country Group designations for the Russian Federation (Russia) and 
Yemen based on national security and foreign policy concerns, including 
proliferation-related concerns. This action is intended to facilitate 
and support accountability in connection with exports and reexports of 
items to these destinations under the EAR, and is part of a larger 
effort to restructure and re-align the Country Groups based on the 
aforementioned interests.

DATES: This rule is effective February 24, 2020.

FOR FURTHER INFORMATION CONTACT: Jodi.Kouts, Director, Chemical and 
Biological Controls Division, at email Jodi.Kouts@bis.doc.gov or by 
phone at (202) 482-6109.

SUPPLEMENTARY INFORMATION: 

Background

    The Bureau of Industry and Security (BIS) is currently undertaking 
a comprehensive review of all Country Groups in the Export 
Administration Regulations (EAR) to ensure that they appropriately 
reflect current U.S. national security and foreign policy, including 
nonproliferation interests.
    The foundation of this rule derives from the structure and purposes 
of the Commerce Country Chart found in Supplement No. 1 to part 738 and 
the Country Groups found in Supplement No. 1 to part 740 of the EAR. 
The Country Chart contains licensing requirements based on the 
destination to which items listed on the Commerce Control List (CCL) 
(Supplement No. 1 to part 774) will be exported or reexported and their 
corresponding ``Reason for Control,'' which is found in the CCL entry. 
An ``X'' in the cell where the ``reason for control'' column intersects 
with the row of the destination indicates a license requirement. 
Licenses are required to export and reexport items under the EAR for 
multilateral reasons (i.e., chemical and biological (CB), nuclear 
nonproliferation (NP), national security (NS), and missile technology 
(MT)); and for unilateral reasons (i.e., region stability (RS), crime 
control (CC) and anti-terrorism (AT)), as well as to implement controls 
for firearms convention (FC) and United Nations Security Council 
purposes. Controls for United Nations Security Council purposes are 
identified by the abbreviation ``UN'' in the applicable CCL entries. 
The ``UN'' reason for control is described in Sec.  746. 2(b) of the 
EAR.
    In combination with the CCL--the list of items classified and set-
out as Export Control Classification Numbers (ECCNs) and arranged by 
categories--the Country Chart allows an exporter to determine whether a 
license is required for the export or reexport of an item on the CCL to 
the destinations on the Chart, unless otherwise specified in the 
particular ECCN entry on the CCL. The lists of Country Groups (A, B, D 
and E) set out countries with respect to relative risk and record of 
like-minded export controls, and importantly, as a basis for the 
availability of exceptions from license requirements described in part 
740 (License Exceptions) of the EAR, provided the conditions for the 
use of the License Exception are met. Country Groups may also be used 
when describing license review policy.
    The two lists--the Commerce Country Chart and Country Groups--were 
developed for separate purposes and allow for systematic licensing 
determinations. Country Groups are not reviewed unless a license is 
required by the Country Chart for exports and reexports of items listed 
in the CCL, unless, as mentioned above, otherwise indicated in the ECCN 
entry on the CCL.
    Continuing to apply the structure and purposes of the Country Chart 
and Country Groups in furtherance of U.S. national security and foreign 
policy, including nonproliferation interests, this rule is part of 
BIS's review of Country Groups. BIS has determined the current Country 
Group designations for Russia and Yemen should be changed to address 
U.S. national security, foreign policy, including proliferation 
concerns as further described below.
    Specifically, this rule removes Russia from more favorable 
treatment under Country Groups A:2 and A:4 and adds it to Country 
Groups D:2 and D:4 based on nuclear and missile technology 
proliferation concerns, respectively. BIS also amends the licensing 
policy for related items to reflect a presumption of denial consistent 
with the Country Group changes. Separately, this rule removes Yemen 
from more favorable treatment under Country Group B and adds it to 
Country Group D:1 to reflect national security concerns.
    As a result of these Country Group changes, certain license 
exceptions are no longer available for Russia and Yemen, and licenses 
are now required for those destinations in connection with exports, 
reexports, and transfers (in-country) of certain controlled items. In 
addition, certain transactions may be subject to more stringent 
licensing review policies or additional prohibitions as outlined in 
other parts of the EAR. With these actions, BIS seeks to ensure 
accountability for exports and reexports of items to these 
destinations. This rule is the first action related to the larger 
effort to re-structure and re-align the Country Groups set forth in 
Supplement No. 1 to Part 740 of the EAR.

Specific Amendments

Russia: Country Groups A and D

    In this rule, BIS removes Russia from Country Groups A:2 (Missile 
Technology Control Regime) and A:4 (Nuclear Suppliers Group) to address 
U.S. concerns about diversion of U.S.-origin items to or from Russia 
for prohibited end uses and end users. This rule removes the ``X'' from 
Column ``[A:2]'' and the ``X'' from Column ``[A:4]'' in Supplement No. 
1 to Part 740 for ``Russia.'' In relation to the changes to Country 
Groups A:2 and A:4 for Russia, this rule also adds Russia to Country 
Groups of concern D:2 (Nuclear) and D:4 (Missile Technology). This rule 
adds an ``X'' in Column ``[D:2]'' and an ``X'' in Column ``[D:4]'' in 
Supplement No. 1 to Part 740 for ``Russia.'' Consistent with adding 
``Russia'' to Country Group ``[D:2],'' this rule adds an ``X'' in 
Column ``NP 1'' for ``Russia'' in Supplement No. 1 to Part 738--
Commerce Country Chart. Finally, BIS revises the licensing policy for 
items to Russia to a policy of presumption of denial when the items are 
controlled for reasons described under Sec.  742.2 (Proliferation of 
chemical and biological weapons), Sec.  742.3 (Nuclear 
nonproliferation), or Sec.  742.5 (Missile technology) of the EAR. 
However, with regard to NP and MT controls, applications for exports 
and reexports of items, which include commodities, software and 
technology, to Russia in support of U.S.-Russia civil space cooperation 
activities or commercial space launches will be reviewed on a case-by-
case basis.

[[Page 10275]]

    These amendments are consistent with the purpose of this rule to 
address U.S. concerns about Russia's lack of cooperation and 
accountability for U.S.-origin items and diversion to unauthorized or 
prohibited proliferation activities, end uses, and end users. 
Specifically, Russia has not been cooperative in allowing BIS to 
perform pre-license checks or post-shipment verifications related to 
U.S.-origin goods. The presumption of denial under Sec.  742.2 further 
accentuates the seriousness with which the United States takes Russia's 
use of a ``novichok'' nerve agent in the attack against Sergei Skripal 
and his daughter Yulia Skripal in the United Kingdom on March 4, 2018.

Yemen: Country Groups B and D:1

    In this rule, BIS removes Yemen from Country Group B and places 
Yemen in the country group of concern for national security reasons, 
Country Group D:1 (National Security). Specifically, this rule removes 
``Yemen'' from Country Group B in Supplement No. 1 to part 740, and 
adds an ``X'' in Column ``[D:1]'' of that Supplement for ``Yemen.''
    These changes are being made to address concerns about diversion of 
U.S.-origin items in Yemen for unauthorized purposes, including 
prohibited proliferation activities, end uses, and end users. In 
addition, there are concerns about the diversion to unauthorized and 
prohibited end uses and users of U.S.-origin items controlled for 
national security reasons. The ongoing conflict in Yemen has fostered 
international terrorism and instability in the Arabian Peninsula, 
including the proliferation of small arms, unmanned aerial systems, and 
missiles.

Impact of Removing Russia From Country Groups A:2 and A:4 and Adding to 
Country Groups D:2 and D:4

    The removal of Russia from Country Groups A:2 and A:4 means a 
number of license exceptions are no longer available for Russia, and 
previously eligible items now require a license to Russia. Consistent 
with removing Russia from Country Groups A:2 and A:4 and adding it to 
Country Group D:2, a license is required for the export or reexport of 
items subject to NP 1 controls as identified in the applicable Export 
Control Classification Numbers (ECCNs) in Supplement No. 1 to part 774 
(The Commerce Control List). Denoting this license requirement, this 
final rule adds an ``X'' in the NP 1 column of the nuclear 
nonproliferation column in Supplement No. 1 to part 738 of the EAR for 
Russia. License applications for these items will be reviewed with a 
presumption of denial. Consistent with adding Russia to Country Group 
D:2, the general prohibition in paragraph (a)(1)(i)(A) of Sec.  744.6, 
Restrictions on certain activities of U.S. persons, will be applicable 
if the U.S. person exports, reexports, or transfers (in-country) with 
``knowledge'' of a prohibited end use in or by Russia.
    Consistent with adding Russia to Country Group D:4, the general 
prohibitions in paragraphs (a)(1) and (3) of Sec.  744.3, Restrictions 
on certain rocket systems (including ballistic missiles, space launch 
vehicles and sounding rockets) and unmanned aerial vehicles (including 
cruise missiles, target drones and reconnaissance drones) end-uses, 
will be applicable if the exporter, reexporter, or transferor has 
``knowledge'' the transaction involves one of those prohibited end uses 
in or by Russia. In addition, consistent with adding Russia to Country 
Group D:4, the general prohibitions in Sec.  744.6 under paragraphs 
(a)(1)(i)(B) and (a)(2)(i) will be applicable if the U.S. person 
exports, reexports, or transfers (in country) with ``knowledge'' of one 
of those prohibited end uses in or by Russia, or engages in one of 
those prohibited activities with ``knowledge'' that it will directly 
assist such an end use.

Impact of Removing Yemen From Country Group B and Adding to D:1

    The removal of Yemen from County Group B means that the following 
license exceptions will no longer be available: Sec.  740.3, Shipments 
of limited value (LVS); Sec.  740.4, Shipments to Country Group B 
countries (GBS); and Sec.  740.6, Technology and software under 
restriction (TSR). As a corollary, Yemen's addition to Country Group 
D:1 means that the following license exceptions, or other portions 
thereof, which include limitations related to Country Group D, will no 
longer be available: Sec.  740.9, Temporary imports, exports, 
reexports, and transfers (in-country) (TMP); Sec.  740.10, Servicing 
and replacement of parts and equipment (RPL); Sec.  740.12, Gift 
parcels and humanitarian donations (GFT); Sec.  740.14, Baggage (BAG); 
Sec.  740.15, Aircraft and vessels (AVS); Sec.  740.16, Additional 
permissive reexports (APR); and Sec.  740.17, Encryption, commodities, 
software, and technology (ENC).
    Section 742.4(b)(2) of the EAR states the licensing policy for 
exports and reexports of national-security controlled items to 
destinations in Country Group D:1. That licensing policy is to approve 
applications when BIS determines, on a case-by-case basis, that the 
items are for civilian use or otherwise would not make a significant 
contribution to the military potential of the country of destination 
that would prove detrimental to the national security of the United 
States. License applications to export or reexport national security 
controlled items to Yemen will now be subject to this licensing policy.
    In addition, Yemen's placement in Country Group D:1 will result in 
the imposition of restrictions on the export, reexport, and transfer 
(in-country) of certain microprocessors to military end uses and end 
users in Yemen, pursuant to Sec.  744.17, Restrictions on certain 
exports, reexports, and transfers (in-country) of microprocessors and 
associated ``software'' and ``technology'' for `military end uses' and 
to `military end users.' Furthermore, restrictions on certain exports 
and reexports to vessels and aircraft located in Yemeni ports or 
registered in Yemen will become effective pursuant to Sec.  744.7, 
Restrictions on certain exports to and for the use of certain foreign 
vessels or aircraft. Finally, the addition of Yemen to Country Group 
D:1 will expand the licensing requirements for reexports of the 
foreign-produced direct product of U.S.-origin technology and software 
to Yemen pursuant to Sec.  736.2(b)(3), General Prohibition Three.

Export Control Reform Act of 2018

    On August 13, 2018, the President signed into law the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019, which 
included the Export Control Reform Act of 2018 (ECRA) (50 U.S.C. 4801-
4852). ECRA provides the legal basis for BIS's principal authorities 
and serves as the authority under which BIS issues this rule. As set 
forth in Section 1768 of ECRA, all delegations, rules, regulations, 
orders, determinations, licenses, or other forms of administrative 
action that were made, issued, conducted, or allowed to become 
effective under the Export Administration Act of 1979 (50 U.S.C. 4601 
et seq.) (as in effect on August 12, 2018, and as continued in effect 
pursuant to the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.)), or under the Export Administration Regulations, and 
were in effect as of August 13, 2018, shall continue in effect 
according to their terms until modified, superseded, set aside, or 
revoked under the authority of ECRA.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is

[[Page 10276]]

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 final rule has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. This final rule will support the national 
security and foreign policy objectives of the United States by 
broadening the U.S. Government's visibility into exports, reexports, 
and transfers (in-country), for a country of concern when the 
transactions involve national security controlled items and items 
controlled for proliferation reasons.
    2. Notwithstanding any other provision of law, no person may be 
required to respond to or 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 regulation involves a 
collection currently approved by OMB under control number 0694-0088, 
Simplified Network Application Processing System. This collection 
includes, among other things, license applications, and carries a 
burden estimate of 42.5 minutes for a manual or electronic submission 
for a total burden estimate of 31,878 hours. BIS expects the burden 
hours associated with this collection to increase slightly by 4 hours 
for an estimated cost increase of $120. This increase is not expected 
to exceed the existing estimates currently associated with OMB control 
number 0694-0088.
    3. This rule does not contain policies with federalism implications 
as that term is defined under Executive Order 13132.
    4. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4801-4852), which was included in the John S. McCain 
National Defense Authorization Act for Fiscal Year 2019, this action is 
exempt from the Administrative Procedure Act (5 U.S.C. 553) 
requirements for notice of proposed rulemaking, opportunity for public 
participation, and delay in effective date.
    5. 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.
    6. This final rule is not subject to the requirements of Executive 
Order 13771 (82 FR 9339, February 3, 2017) because it is issued with 
respect to a national security function of the United States. The cost-
benefit analysis required pursuant to Executive Orders 12866 and 13563 
indicates that this rule is intended to improve national security as 
its primary direct benefit. Specifically, revising the status of the 
Country Group designations for Russia and Yemen in this rule protects 
the United States and allies by serving the priorities of reducing the 
risk that exports, reexports, and transfers (in-country) of items 
subject to the EAR could be diverted and contribute to weapons of mass 
destruction proliferation and the military capability of countries of 
concern, contrary to U.S. national security interests. Accordingly, 
this rule meets the requirements set forth in the April 5, 2017 OMB 
guidance implementing Executive Order 13771 (82 FR 9339, February 3, 
2017), regarding what constitutes a regulation issued ``with respect to 
a national security function of the United States,'' and is, therefore, 
exempt from the requirements of Executive Order 13771.

Savings Clause

    Shipments of items removed from license exception eligibility or 
eligibility for export, reexport or transfer (in country) without a 
license as a result of this regulatory action that were on dock for 
loading, on lighter, laden aboard and exporting carrier, or en route 
aboard a carrier to a port of export, on February 24, 2020, pursuant to 
actual orders for exports, reexports and transfers (in country) to a 
foreign destination, may proceed to that destination under the previous 
license exception eligibility or without a license so long as they have 
been exported, reexported or transferred (in-country) before 30 days 
from date of publication. Any such items not actually exported, 
reexported or transferred (in-country) before midnight on March 25, 
2020 require a license in accordance with this final rule.

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.

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

PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART

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

    Authority:  50 U.S.C. 4801-4852; 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.

0
2. Supplement No. 1 to part 738 is amended by revising the entry for 
``Russia'' to read as follows:

                                                                      Supplement No. 1 to Part 738--Commerce Country Chart
                                                                                      [Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                 Chemical and 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        FC 1        CC 1      CC 2      CC 3      AT 1      AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                          * * * * * * *
Russia \6\..................        X         X         X         X   ........        X         X         X         X         X   ............        X         X   ........  ........  ........
 
                                                                                          * * * * * * *
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 * * * * * * *
\6\ See Sec.   746.5 for additional license requirements under the Russian Industry Sector Sanctions for ECCNs 0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999.


[[Page 10277]]

* * * * *

PART 740--LICENSE EXCEPTIONS

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

    Authority:  50 U.S.C. 4801-4852; 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.

0
4. Supplement No. 1 to part 740 is amended by:
0
a. In the Country Group A table:
0
i. Revising the table headings for [A:2] and [A:4], the entries for 
Russia and Ukraine, and footnote 2; and
0
ii. Redesignating footnote 3 as footnote 4, adding a new footnote 3, 
and revising newly redesignated footnote 4; and
0
b. In the Country Group D table, revising the entries for Russia and 
Yemen and footnote 1.
    The revisions read as follows:

                                                      Supplement No. 1 to Part 740--Country Groups
                                                                    [Country Group A]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               [A:1]       [A:2] Missile
                                                             Wassenaar      technology         [A:3]       [A:4] Nuclear
                         Country                           participating  control regime     Australia       suppliers         [A:5]           [A:6]
                                                            states \1\          \2\            group         group \3\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Russia 1 2 3............................................  ..............  ..............  ..............  ..............  ..............  ..............
 
                                                                      * * * * * * *
Ukraine \4\.............................................  ..............               X               X               X  ..............  ..............
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Country Group A:1 is a list of the Wassenaar Arrangement Participating States, except for Malta, Russia and Ukraine.
\2\ Country Group A:2 is a list of the Missile Technology Control Regime countries, except for Russia.
\3\ Country Group A:4 is a list of the Nuclear Suppliers Group countries, except for the People's Republic of China (PRC) and Russia.
\4\ For purposes of this supplement, as well as any other EAR provision that references the Country Groups, the designations for Ukraine also apply to
  the Crimea region of Ukraine. See Sec.   746.6(c) of the EAR for an exhaustive listing of license exceptions that are available for the Crimea region
  of Ukraine. No other EAR license exceptions are available for the Crimea region of Ukraine. The Crimea region of Ukraine includes the land territory
  in that region as well as any maritime area over which sovereignty, sovereign rights, or jurisdiction is claimed based on purported annexation of that
  land territory.
 * * * * * * *


 
                                                [Country Group D]
----------------------------------------------------------------------------------------------------------------
                                      [D: 1]                          [D: 3]                        [D: 5] U.S.
             Country                 National     [D: 2] Nuclear    Chemical &    [D: 4] Missile  arms embargoed
                                     security                       biological      technology     countries \1\
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
 
                                                  * * * * * * *
Russia..........................               X               X               X               X  ..............
 
                                                  * * * * * * *
Yemen...........................               X  ..............               X               X  ..............
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department
  through notices published in the Federal Register. The list of arms embargoed destinations in this table is
  drawn from 22 CFR 126.1 and State Department Federal Register notices related to arms embargoes (compiled at
  http://www.pmddtc.state.gov/embargoed_countries/index.html) and will be amended when the State Department
  publishes subsequent notices. If there are any discrepancies between the list of countries in this table and
  the countries identified by the State Department as subject to a U.S. arms embargo (in the Federal Register),
  the State Department's list of countries subject to U.S. arms embargoes shall be controlling.

* * * * *

PART 742--CONTROL POLICY--CCL BASED CONTROLS

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

    Authority:  50 U.S.C. 4801-4852; 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, 2019, 84 FR 61817 (November 
13, 2018).

0
6. Section 742.2 is amended by revising paragraph (b)(4) to read as 
follows:


Sec.  742.2  Proliferation of chemical and biological weapons.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China will be 
reviewed in accordance with the licensing policies in both paragraph 
(b) of this section and Sec.  742.4(b)(7). When such items are destined 
to Russia, license applications will be reviewed under a presumption of 
denial.
* * * * *

0
7. Section 742.3 is amended by revising paragraph (b)(4) to read as 
follows:


Sec.  742.3  Nuclear nonproliferation.

* * * * *
    (b) * * *
    (4) License applications for items described in paragraph (a) of 
this section, when destined for the People's Republic of China will be 
reviewed in accordance with the licensing policies in both paragraph 
(b) of this section and Sec.  742.4(b)(7). When such items are destined 
to Russia, license applications will be reviewed under a presumption of 
denial. However, exports and reexports of items to Russia in support of 
U.S.-Russia civil space cooperation activities or commercial space 
launches will be reviewed on a case-by-case basis.
* * * * *

0
8. Section 742.5 is amended by adding two sentences at the end of 
paragraph (b)(5) to read as follows:


Sec.  742.5  Missile technology.

* * * * *
    (b) * * *

[[Page 10278]]

    (5) * * * When such items are destined to Russia, license 
applications will be reviewed under a presumption of denial. However, 
exports and reexports of items to Russia in support of U.S.-Russia 
civil space cooperation activities or commercial space launches will be 
reviewed on a case-by-case basis.
* * * * *

    Dated: February 10, 2020.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2020-02941 Filed 2-21-20; 8:45 am]
 BILLING CODE 3510-33-P


