[Federal Register Volume 86, Number 109 (Wednesday, June 9, 2021)]
[Rules and Regulations]
[Pages 30535-30537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12125]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 760

[Docket No. 210528-0118]
RIN 0694-AI48


Export Administration Regulations: Termination of United Arab 
Emirates Participation in the Arab League Boycott of Israel

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 reflect the 
formal termination by the United Arab Emirates (UAE) of its 
participation in the Arab League Boycott of Israel. Specifically, in 
recognition of the UAE's August 16, 2020 issuance of Federal Decree-Law 
No. 4 of 2020, certain requests for information, action or agreement 
from the UAE, which were presumed to be boycott-related if made prior 
to August 16, 2020, would not be presumed to be boycott-related if made 
following that date, and thus would not be prohibited or reportable 
under the EAR. Accordingly, BIS adds an interpretation to the 
Restrictive Trade Practices or Boycotts regulations of the EAR, which 
sets forth BIS's view that the prohibitions and reporting requirements 
contained in the EAR's antiboycott provisions do not apply to such 
requests from the UAE made after August 16, 2020.

DATES: This rule is effective June 8, 2021.

FOR FURTHER INFORMATION CONTACT: Cathleen Ryan, Director, Office of 
Antiboycott Compliance, Bureau of Industry and Security, U.S. 
Department of Commerce, by email at OAC.WebQueries@bis.doc.gov or 
OACINQUIRIES@bis.doc.gov, or by phone at 202-482-2381.

SUPPLEMENTARY INFORMATION:

Background

    The Office of Antiboycott Compliance (OAC) administers and enforces 
the antiboycott provisions set forth in part 760 (Restrictive Trade 
Practices and Boycotts) of the Export Administration

[[Page 30536]]

Regulations (EAR) (15 CFR parts 730 through 774). These antiboycott 
provisions discourage, and in certain circumstances prohibit, United 
States persons from taking specific actions in furtherance or support 
of an unsanctioned foreign boycott by a country against a country 
friendly to the United States, including complying with certain 
requests to provide information about business relationships with a 
boycotted country or with blacklisted persons or to refuse to do 
business with certain persons for boycott-related reasons. Pursuant to 
part 760 of the EAR, the receipt of such requests may be reportable to 
OAC.
    In connection with an agreement between the United Arab Emirates 
(UAE) and Israel establishing full diplomatic and commercial relations 
and normalization (the ``Abraham Accords''), on August 16, 2020, the 
UAE issued Federal Decree-Law No. 4 of 2020, which repealed Federal Law 
No. 15 of 1972 Concerning the Arab League Boycott of Israel (``August 
16, 2020 decree''), thereby formally ending the UAE's participation in 
the Arab League Boycott of Israel.
    In this final rule, the Bureau of Industry and Security (BIS) 
amends part 760 of the EAR to add an Interpretation that reflects the 
UAE's formal termination (through the issuance of the August 16, 2020 
decree) of its participation in the Arab League Boycott of Israel. In 
making this amendment, BIS has also taken into account actions that the 
UAE Government has undertaken to implement, in policy and practice, the 
August 16, 2020 decree. As set forth in this Interpretation, which will 
appear as new Supplement No. 17 to part 760 of the EAR, certain 
requests for information, action or agreement from the UAE that were 
presumed to be boycott-related prior to August 16, 2020 would not be 
presumed to be boycott-related if issued after August 16, 2020, and 
thus would not be subject to the prohibitions or reporting requirements 
of part 760 of the EAR. Further, the Interpretation reminds United 
States persons that requests that are on their face boycott-related or 
that are for action obviously in furtherance or support of an 
unsanctioned foreign boycott are subject to part 760 of the EAR, 
irrespective of the country of origination.

Export Control Reform Act of 2018

    On August 13, 2018, President Donald J. Trump 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). Part II of ECRA contains the Anti-Boycott Act of 2018. ECRA 
provides the legal basis for BIS's principal authorities and serves as 
the authority under which BIS issues this rule.

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 final rule has been designated as not significant for 
purposes of Executive Order 12866.
    2. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    3. Pursuant to section 1762 of the Export Control Reform Act of 
2018 (50 U.S.C. 4821), 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.
    4. 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. This rule 
reflects a policy development involving the United Arab Emirates that 
advances the U.S. Government's foreign policy and national security. 
Accordingly, no regulatory flexibility analysis is required, and none 
has been prepared.
    5. 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.), 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 0694-0012, 
Report of Requests for Restrictive Trade Practice or Boycott--Single or 
Multiple Transactions. The collection carries a burden estimate of 60 
to 90 minutes for a manual or electronic submission for a total burden 
estimate of 482 hours. BIS expects the burden hours associated with 
this collection to decrease with the publication of this rule.

List of Subjects in 15 CFR Part 760

    Exports, Reporting and recordkeeping requirements, Trade practices.

    Accordingly, part 760 of the Export Administration Regulations (15 
CFR parts 730-774) is amended as follows:

PART 760--RESTRICTIVE TRADE PRACTICES OR BOYCOTTS

0
1. The authority citation for part 760 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.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783.


0
2. Add supplement no. 17 to part 760 to read as follows:

Supplement No. 17 to Part 760--Interpretation

    Pursuant to the agreement between the United Arab Emirates (UAE) 
and Israel establishing diplomatic and commercial relations (the 
``Abraham Accords''), on August 16, 2020, the UAE issued Federal 
Decree-Law No. 4 of 2020, abolishing Federal Law No. 15 of 1972 
Concerning the Arab League Boycott of Israel, thereby formally 
terminating participation by the UAE in the Arab League Boycott of 
Israel as of that date.
    On the basis of this action, it is the Department's position that 
certain requests for information, action or agreement from the UAE, 
which were presumed to be boycott-related under this part of the EAR if 
issued prior to August 16, 2020, would not be presumed to be boycott-
related if issued after August 16, 2020, and thus would not be 
prohibited or reportable under this part of the EAR.
    For example, a request from the UAE that an exporter certify that 
the vessel on which it is shipping its goods is eligible to enter UAE 
ports was formerly presumed to be a boycott-related request under this 
part of the EAR with which the exporter could not comply because the 
UAE had a boycott law in force against Israel. Such a request from the 
UAE made after August 16, 2020, would no longer be presumed to be 
boycott-related because the underlying boycott requirement/basis for 
the certification was eliminated as of August 16, 2020. Similarly, a 
U.S. company would not be prohibited from complying with a request made 
by UAE government officials after August 16, 2020, to furnish the place 
of birth of employees the company is seeking to take to the UAE because 
there is no underlying

[[Page 30537]]

UAE government boycott law or policy that would give rise to a 
presumption that the request was boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to this part of 
the EAR, irrespective of the country of origination. For example, 
requests containing references to ``blacklisted companies,'' ``Israel 
boycott list,'' ``non-Israeli goods,'' or other phrases or words 
indicating a boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations in this part.

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-12125 Filed 6-7-21; 4:15 pm]
BILLING CODE 3510-33-P


