[Federal Register Volume 86, Number 234 (Thursday, December 9, 2021)]
[Rules and Regulations]
[Pages 70015-70020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26633]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, and 744

[Docket No. 211201-0249]
RIN 0694-AI65


Revision of Controls for Cambodia Under the Export Administration 
Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: In response to deepening Chinese military influence in 
Cambodia, which undermines and threatens regional security, as well as 
growing corruption and human rights abuses by the Government of 
Cambodia, in this final rule, the Bureau of Industry and Security (BIS) 
amends the Export Administration Regulations (EAR) to apply more 
restrictive treatment to exports and reexports to, and transfers 
within, Cambodia of items subject to the EAR. BIS is taking this action 
to address recent actions by the Government of Cambodia that are 
contrary to the national security and foreign policy interests of the 
United States. Further, BIS updates a Country Group designation for 
Cambodia under the EAR to reflect the country's identification by the 
State Department as subject to a United States arms embargo.

DATES: This rule is effective December 9, 2021.

FOR FURTHER INFORMATION CONTACT: Tracy Patts, Foreign Policy Division, 
Office of Nonproliferation and Treaty Compliance, Bureau of Industry 
and Security, U.S. Department of Commerce, by email at 
[email protected], or by phone at 202-482-4252.

SUPPLEMENTARY INFORMATION:

Background

Cambodia Under the Export Administration Regulations

    BIS's current licensing policy for Cambodia dates from 1992, when 
the agency amended the EAR in support of the settlement of political 
conflict in Cambodia and the lifting of a U.S. trade embargo on 
Cambodia. (57 FR 11576, April 6, 1992.) Recent changes in Cambodian 
foreign policy, however, undermine regional security as well as U.S. 
national security and foreign policy interests, and necessitate a 
revision to export controls for Cambodia under the EAR.
    In June 2021, during an official visit to Cambodia, Deputy 
Secretary of State Wendy Sherman expressed serious concerns about the 
People's Republic of China's (PRC or China) military presence and 
construction of facilities at Ream Naval Base in Cambodia. Deputy 
Secretary Sherman emphasized that an exclusive-use PRC military base in 
Cambodia would undermine Cambodian sovereignty, threaten regional 
security, and negatively impact U.S.-Cambodia relations. Since then, 
the Department of State (State) and the Treasury (Treasury), have taken 
action under their respective authorities to address such concerns. In 
November 2021, State and Treasury designated two Cambodian military 
officials due to their involvement in significant corruption, including 
in connection with the Ream Naval Base. At that time, State, Treasury, 
and the Department of Commerce also issued an advisory cautioning U.S. 
businesses regarding the potential exposure to entities in Cambodia, 
such as the Cambodian military, that engage in human rights abuses, 
corruption, and other destabilizing conduct.
    The United States has determined that expanded Chinese military 
influence in Cambodia and corruption and human rights abuses committed 
by Cambodian government actors, including the Cambodian military, are 
contrary to U.S. national security and foreign policy interests. 
Therefore, the U.S. Government is restricting certain exports and 
reexports to, and transfers within, Cambodia to ensure that items 
subject to the EAR are not available to Cambodia's military and 
military-intelligence services without prior review by the U.S. 
Government, and is also adding Cambodia to the list of countries 
subject to a more stringent review policy for license applications 
involving national security-controlled items. In this rule, BIS amends 
the EAR to implement more restrictive treatment for Cambodia under the 
EAR.

Changes Made by This Rule for Cambodia Under the EAR

    BIS is taking this action to address recent actions by the 
Government of Cambodia that are contrary to the national security and 
foreign policy interests of the United States and threaten regional 
security. The rule makes four broad changes to the EAR to reflect BIS's 
more restrictive licensing approach to Cambodia. It adds Cambodia to: 
(1) The list of countries subject to the licensing policy in Sec.  
742.4(b)(7), (2) the list of countries subject to military end use and 
end user controls in Sec.  744.21, (3) the list of countries subject to 
military intelligence end use and end user controls in Sec.  744.22, 
and (4) the list of countries subject to a U.S. arms embargo under 
Country Group D:5.

Licensing Policy

    This rule adds Cambodia to the list of countries subject to the 
licensing policy in Sec.  742.4(b)(7) (NS-controlled items) of the EAR. 
The license review policy for NS-controlled items in Sec.  742.4(b)(7) 
applies to transactions with the countries listed in Sec.  744.21, and 
now applies to Cambodia as well. This rule removes the reference to 
Cambodia in the policy described in Sec.  742.4(b)(6), which is 
superseded in this rule by the

[[Page 70016]]

policy for Cambodia in paragraph (b)(7)(i).

Section 744.21

    This rule adds Cambodia to the countries subject to the `military 
end use' and `military end user' (MEU) restrictions in Sec.  744.21 of 
the EAR. In addition to the license requirements for items specified on 
the Commerce Control List (CCL), Sec.  744.21 prohibits the export, 
reexport, or transfer (in-country) without a license of items subject 
to the EAR and are listed in supplement no. 2 to part 744--List of 
Items Subject to the Military End Use or End User License Requirement 
of Sec.  744.21--to Burma, China, the Russian Federation, or Venezuela. 
With the publication of this rule, Cambodia is now added to the 
countries subject to this license requirement. Such exports, reexports, 
or transfers (in-country) require a license if, at the time of the 
export, reexport, or transfer (in-country), the exporter, reexporter, 
or transferor (in-country) has ``knowledge,'' as defined in Sec.  772.1 
of the EAR that the item is intended, entirely or in part, for a 
`military end use,' or `military end user,' in Burma, Cambodia, China, 
the Russian Federation, or Venezuela. Applications submitted for the 
export or reexport to Cambodia, or transfer within Cambodia, of an item 
in supplement no. 2 to part 744 under this section will be reviewed 
with a presumption of denial.
    This rule also adds a reference to Cambodia in supplement no. 7 to 
part 744--`Military End User' List but does not add any entities 
located in Cambodia to the list of Military End Users (MEU List). The 
MEU List notifies the public that certain entities are subject to the 
military end-user prohibitions in Sec.  744.21 of the EAR. BIS may add 
entities located in Cambodia to the MEU List in the future.

Section 744.22

    This rule also adds Cambodia to the countries subject to the 
`military-intelligence end use' and `military-intelligence end user' 
(MIEU) restrictions in Sec.  744.22 of the EAR. In addition to the 
license requirements for items specified on the CCL, Sec.  744.22 
prohibits the export, reexport, or transfer (in-country) without a 
license of items subject to the EAR to Burma, China, the Russian 
Federation, Venezuela, or a country listed in Country Group E:1 or E:2. 
With the publication of this rule, Cambodia is now added to the 
countries subject to this license requirement. Such exports, reexports, 
or transfers (in-country) require a license if, at the time of the 
export, reexport, or transfer (in-country), the exporter, reexporter, 
or transferor (in-country) has ``knowledge,'' as defined in Sec.  772.1 
of the EAR that the item is intended, entirely or in part, for a 
`military-intelligence end use,' or `military-intelligence end user,' 
in Burma, Cambodia, China, the Russian Federation, Venezuela or the 
countries listed in Country Group E:1 or E:2. Applications submitted 
for the export or reexport to Cambodia, or transfer within Cambodia, of 
an EAR item under this section will be reviewed with a presumption of 
denial.
    With this amendment to Sec.  744.22 of the EAR, BIS is also 
revising Sec.  744.6(b)(5) of the EAR to restrict specific activities 
of ``U.S. persons'' in connection with a `military-intelligence end 
use' or `military-intelligence end user' in Cambodia.

Country Group D:5

    The amendments in this rule are made concurrent with other U.S. 
Government actions intended to support the revision of export control 
policy toward Cambodia in light of the recent developments in Cambodia. 
In particular, the Department of State is amending the International 
Traffic in Arms Regulations (ITAR) Sec.  126.1, ``Prohibited Exports, 
Imports, and Sales to or from Certain Countries'' to add Cambodia in 
the list of countries for which it is the policy of the United States 
to deny licenses and other approvals for exports and imports of defense 
articles and defense services. This change reflects the policy of the 
United States to deny licenses and other approvals for the export and 
import of defense articles and defense services destined for or 
originating in Cambodia, except as otherwise provided within the ITAR.
    BIS harmonizes the arms embargo-related provisions in the EAR with 
the regulation of arms embargoes in Sec.  126.1 of the ITAR. 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.
    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)(1)(ii) of Sec.  742.4 of the EAR.
    Therefore, BIS revises Country Group D to add Cambodia to Country 
Group D:5 consistent with the Department of State's amendment adding 
Cambodia to ITAR Sec.  126.1 on December 9, 2021.

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) that 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 to be a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) 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. 
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.) (PRA), unless 
that collection of

[[Page 70017]]

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. The 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 not significantly increase with the publication of 
this rule.

Savings Clause

    Shipments of items that may no longer be made under No License 
Required (NLR) or license exception as a result of this action and were 
on dock for loading, on lighter, laden aboard an exporting or 
transferring carrier, or en route aboard a carrier to a port of export 
or reexport on January 10, 2022, pursuant to actual orders for export 
to Cambodia, reexport to Cambodia, or transfer (in country) within 
Cambodia may proceed to their destination under the prior 
authorization.

List of Subjects

15 CFR Part 740

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

    Accordingly, parts 740, 742, and 744 of the Export Administration 
Regulations (15 CFR parts 730-774) are amended as follows:

PART 740--[AMENDED]

0
1. 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
2. Supplement no. 1 to part 740 is amended in the Country Group D table 
by revising the entry for ``Cambodia'' and note 1 to the table to read 
as follows:

Supplement No. 1 to Part 740--Country Groups

* * * * *

                                                                     Country Group D
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         [D:5] U.S. arms
                              Country                                 [D:1] National   [D:2] Nuclear    [D:3] Chemical   [D:4] Missile       embargoed
                                                                         security                       &  biological      technology     countries \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Cambodia...........................................................               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 and accessible at https://www.pmddtc.state.gov) 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--[AMENDED]

0
3. The authority citation for part 742 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. 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, 2020, 85 FR 72897 (November 
13, 2020).


0
4. Section 742.4 is amended by revising paragraphs (b)(6) and (7) to 
read as follows:


Sec.  742.4   National security.

* * * * *
    (b) * * *
    (6) The general policy for Laos is to approve license applications 
when BIS determines, on a case-by-case basis, that the items are for an 
authorized use in Laos and are not likely to be diverted to another 
country or use contrary to the national security or foreign policy 
controls of the Unied States.
    (7)(i) For Burma, Cambodia, the People's Republic of China (China), 
the Russian Federation, and Venezuela, all applications will be 
reviewed to determine the risk of diversion to a military end user or 
military end use. There is a general policy of approval for license 
applications to export, reexport, or transfer items determined to be 
for civil end users for civil end uses. There is a presumption of 
denial for license applications to export, reexport, or transfer items 
that would make a material contribution to the ``development,'' 
``production,'' maintenance, repair, or operation of weapons systems, 
subsystems, and assemblies, such as, but not limited to, those 
described in supplement no. 7 to this part, of Burma, Cambodia, China, 
the Russian Federation, or Venezuela.
    (ii) The following factors are among those that will be considered 
in reviewing license applications described in paragraph (b)(7)(i) of 
this section:
    (A) The appropriateness of the export, reexport, or transfer for 
the stated end use;
    (B) The significance of the item for the weapon systems 
capabilities of the importing country;
    (C) Whether any party is a `military end user' as defined in Sec.  
744.21(g) of the EAR;
    (D) The reliability of the parties to the transaction, including 
whether:
    (1) An export or reexport license application has previously been 
denied;
    (2) Any parties are or have been engaged in unlawful procurement or 
diversion activities;
    (3) The parties are capable of securely handling and storing the 
items; and
    (4) End-use checks have been and may be conducted by BIS or another

[[Page 70018]]

U.S. Government agency on parties to the transaction;
    (E) The involvement of any party to the transaction in military 
activities, including activities involving the ``development,'' 
``production,'' maintenance, repair, or operation of weapons systems, 
subsystems, and assemblies;
    (F) Government strategies and policies that support the diversion 
of exports from their stated civil end use and redirection towards 
military end use; and
    (G) The scope and effectiveness of the export control system in the 
importing country.
    (iii) The review will also include an assessment of the impact of a 
proposed export of an item on the United States defense industrial base 
and the denial of an application for a license that would have a 
significant negative impact, as defined in section 1756(d)(3) of the 
Export Control Reform Act of 2018 (50 U.S.C. 4815(d)(3)), on such 
defense industrial base.
* * * * *

PART 744--[AMENDED]

0
5. The authority citation for part 744 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. 3201 et seq.; 42 U.S.C. 2139a; 22 
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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. 13099, 63 FR 45167, 3 
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice 
of September 15, 2021, 86 FR 52069 (September 17, 2021); Notice of 
November 10, 2021, 86 FR 62891 (November 12, 2021).


0
6. Section 744.6 is amended by revising paragraph (b)(5) to read as 
follows:


Sec.  744.6   Restrictions on specific activities of ``U.S. persons.''

* * * * *
    (b) * * *
    (5) A `military-intelligence end use' or a `military-intelligence 
end user,' as defined in Sec.  744.22(f), in Burma, Cambodia, the 
People's Republic of China, Russia, or Venezuela; or a country listed 
in Country Groups E:1 or E:2 (see supplement no. 1 to part 740 of the 
EAR).
* * * * *

0
7. Section 744.21 is revised to read as follows:


Sec.  744.21  Restrictions on Certain `military end use' or `military 
end user' in Burma, Cambodia, the People's Republic of China, the 
Russian Federation, or Venezuela.

    (a) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL) (supplement no. 
1 to part 774 of the EAR), you may not export, reexport, or transfer 
(in-country) any item subject to the EAR listed in supplement no. 2 to 
this part to Burma, Cambodia, the People's Republic of China (China), 
the Russian Federation, or Venezuela without a license if, at the time 
of the export, reexport, or transfer (in-country), you have 
``knowledge,'' as defined in Sec.  772.1 of the EAR, that the item is 
intended, entirely or in part, for a `military end use,' as defined in 
paragraph (f) of this section, or `military end user,' as defined in 
paragraph (g) of this section, in Burma, Cambodia, China, the Russian 
Federation, or Venezuela.
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate 
notification published in the Federal Register, that a license is 
required for specific exports, reexports, or transfers (in-country) of 
any item because there is an unacceptable risk of use in or diversion 
to a `military end use' or `military end user' in Burma, Cambodia, 
China, the Russian Federation, or Venezuela. Specific notice will be 
given only by, or at the direction of, the Deputy Assistant Secretary 
for Export Administration. When such notice is provided orally, it will 
be followed by written notice within two working days signed by the 
Deputy Assistant Secretary for Export Administration or the Deputy 
Assistant Secretary's designee. The absence of BIS notification does 
not excuse the exporter from compliance with the license requirements 
of paragraph (a) of this section.
    (1) `Military End-User' (MEU) List. BIS may inform and provide 
notice to the public that certain entities are subject to the 
additional prohibition described under this paragraph (b) following a 
determination by the End-User Review Committee (ERC) that a specific 
entity is a `military end user' pursuant to this section and therefore 
any exports, reexports, or transfers (in-country) to that entity 
represent an unacceptable risk of use in or diversion to a `military 
end use' or `military end user' in Burma, Cambodia, China, the Russian 
Federation, or Venezuela. Such entities may be added to supplement no. 
7 to this part--`Military End-User' (MEU) List through Federal Register 
notifications published by BIS and will thus be subject to a license 
requirement for exports, reexports, or transfers (in-country) of items 
specified in supplement no. 2 to this part. The listing of entities 
under supplement no. 7 to this part is not an exhaustive listing of 
`military end users' for purposes of this section. Exporters, 
reexporters, and transferors are responsible for determining whether 
transactions with entities not listed on supplement no. 7 to this part 
are subject to a license requirement under paragraph (a) of this 
section. The process in this paragraph (b)(1) for placing entities on 
the MEU List is only one method BIS may use to inform exporters, 
reexporters, and transferors of license requirements under this 
section.
    (i) End-User Review Committee (ERC). The End-User Review Committee 
(ERC), composed of representatives of the Departments of Commerce 
(Chair), State, Defense, Energy and, where appropriate, the Treasury, 
makes all decisions regarding additions to, removals from, or other 
modifications to the MEU List. Decisions by the ERC for purposes of the 
MEU List will be made following the procedures identified in this 
section and in supplement no. 5 to this part--Procedures for End-User 
Review Committee Entity List and `Military End User' (MEU) List 
Decisions.
    (ii) License requirement for parties to the transaction. The 
license requirement for entities listed in supplement no. 7 to this 
part applies to the export, reexport, or transfer (in-country) of any 
item subject to the EAR listed in supplement no. 2 to this part when an 
entity that is listed on the MEU List is a party to the transaction as 
described in Sec.  748.5(c) through (f) of the EAR.
    (2) Requests for removal from or modification of `Military End-
User' (MEU) List. Any entity listed on the MEU List may request that 
its listing be removed or modified. All such requests, including 
reasons therefor, must be in writing and sent to: Chair, End-User 
Review Committee, Bureau of Industry and Security, U.S. Department of 
Commerce, 14th Street and Pennsylvania Avenue NW, Room 3886, 
Washington, DC 20230; or by email at [email protected]. In order for an 
entity listed on the MEU List to petition BIS for their removal or 
modification, as applicable, the entity must address why the entity is 
not a `military end user' for purposes of this section.
    (i) Review. The ERC will review such requests for removal or 
modification in accordance with the procedures set forth in supplement 
no. 5 to this part.

[[Page 70019]]

    (ii) BIS action. The Deputy Assistant Secretary for Export 
Administration will convey the decision on the request to the requester 
in writing. That decision will be the final agency action on the 
request.
    (c) License exception. Despite the prohibitions described in 
paragraphs (a) and (b) of this section, you may export, reexport, or 
transfer (in-country) items subject to the EAR under the provisions of 
License Exception GOV set forth in Sec.  740.11(b)(2)(i) and (ii) of 
the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license requirement in Sec.  
744.21 of the EAR (Restrictions on a `Military End Use' or `Military 
End User' in Burma, Cambodia, the People's Republic of China, the 
Russian Federation, or Venezuela).'' In addition, either in the 
additional information block of the application or in an attachment to 
the application, you must include all known information concerning the 
`military end use' and `military end user(s)' of the item(s). If you 
submit an attachment with your license application, you must reference 
the attachment in the ``additional information'' block of the 
application.
    (e) License review standards. (1) Applications to export, reexport, 
or transfer (in-country) items described in paragraph (a) of this 
section will be reviewed with a presumption of denial.
    (2) Applications may be reviewed under chemical and biological 
weapons, nuclear nonproliferation, or missile technology review 
policies, as set forth in Sec. Sec.  742.2(b)(4), 742.3(b)(4), and 
742.5(b)(4) of the EAR, if the end use may involve certain 
proliferation activities.
    (3) Applications for items requiring a license for any reason that 
are destined to Burma, Cambodia, China, the Russian Federation, or 
Venezuela for a `military end use' or `military end user' also will be 
subject to the review policy stated in paragraph (e)(1) of this 
section.
    (f) Military end use. In this section, `military end use' means: 
Incorporation into a military item described on the U.S. Munitions List 
(USML) (22 CFR part 121, International Traffic in Arms Regulations); 
incorporation into items classified under Export Control Classification 
Numbers (ECCNs) ending in ``A018'' or under ``600 series'' ECCNs; or 
any item that supports or contributes to the operation, installation, 
maintenance, repair, overhaul, refurbishing, ``development,'' or 
``production,'' of military items described on the USML, or items 
classified under ECCNs ending in ``A018'' or under ``600 series'' 
ECCNs.
    (g) Military end user. In this section, the term `military end 
user' means the national armed services (army, navy, marine, air force, 
or coast guard), as well as the national guard and national police, 
government intelligence or reconnaissance organizations, or any person 
or entity whose actions or functions are intended to support `military 
end uses' as defined in paragraph (f) of this section.
    (h) Effects on contracts. Venezuela: Transactions involving the 
export, reexport, or transfer (in country) of items to or within 
Venezuela are not subject to the provisions of this section if the 
contracts for such transactions were signed prior to November 7, 2014.

0
8. Section 744.22 is revised to read as follows:


Sec.  744.22   Restrictions on exports, reexports, and transfers (in-
country) to certain military-intelligence end uses or end users.

    (a) General prohibition. In addition to the license requirements 
for items specified on the Commerce Control List (CCL) (supplement no. 
1 to part 774 of the EAR), you may not export, reexport, or transfer 
(in-country) any item subject to the EAR without a license from BIS if, 
at the time of the export, reexport, or transfer (in-country), you have 
``knowledge'' that the item is intended, entirely or in part, for a 
`military-intelligence end use' or a `military-intelligence end user' 
in Burma, Cambodia, the People's Republic of China (China), Russia, or 
Venezuela; or a country listed in Country Groups E:1 or E:2 (see 
supplement no. 1 to part 740 of the EAR).
    (b) Additional prohibition on those informed by BIS. BIS may inform 
you either individually by specific notice, through amendment to the 
EAR published in the Federal Register, or through a separate 
notification published in the Federal Register, that a license is 
required for specific exports, reexports, or transfers (in-country) of 
any item subject to the EAR because there is an unacceptable risk of 
use in, or diversion to, a `military-intelligence end use' or a 
`military-intelligence end user' in Burma, Cambodia, China, Russia, or 
Venezuela; or a country listed in Country Group E:1 or E:2 (see 
supplement no. 1 to part 740 of the EAR).
    (c) License exception. Notwithstanding the prohibitions described 
in paragraphs (a) and (b) of this section, you may export, reexport, or 
transfer (in-country) items subject to the EAR under the provision of 
License Exception GOV set forth in Sec.  740.11(b)(2)(ii) of the EAR.
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license requirement in Sec.  
744.22 of the EAR (Restrictions on exports, reexports, and transfers 
(in-country) to certain military-intelligence end uses or end users).'' 
In addition, either in the additional information block of the 
application or in an attachment to the application, you must include 
all known information concerning the military-intelligence end use(s) 
or end user(s) of the item(s). If you submit an attachment with your 
license application, you must reference the attachment in the 
``additional information'' block of the application.
    (e) License review policy. Applications to export, reexport, or 
transfer (in-country) items requiring a license pursuant to paragraph 
(a) or (b) of this section will be reviewed with a presumption of 
denial.
    (f) Definitions. (1) `Military-intelligence end use' means the 
``development,'' ``production,'' operation, installation (including on-
site installation), maintenance (checking), repair, overhaul, or 
refurbishing of, or incorporation into, items described on the U.S. 
Munitions List (USML) (22 CFR part 121, International Traffic in Arms 
Regulations), or classified under ECCNs ending in ``A018'' or under 
``600 series'' ECCNs, which are intended to support the actions or 
functions of a `military-intelligence end user,' as defined in this 
section.
    (2) `Military-intelligence end user' means any intelligence or 
reconnaissance organization of the armed services (army, navy, marine, 
air force, or coast guard); or national guard. For license requirements 
applicable to other government intelligence or reconnaissance 
organizations in Burma, Cambodia, China, Russia, or Venezuela, see 
Sec.  744.21. Military-intelligence end users subject to the license 
requirements set forth in this section include, but are not limited to, 
the following:
    (i) Burma. Office of Chief of Military Security Affairs (OCMSA) and 
the Directorate of Signal.
    (ii) Cambodia. General Department of Research and Intelligence 
(GDRI).
    (iii) Cuba. Directorate of Military Intelligence (DIM) and 
Directorate of Military Counterintelligence (CIM).
    (iv) China, People's Republic of. Intelligence Bureau of the Joint 
Staff Department.

[[Page 70020]]

    (v) Iran. Islamic Revolutionary Guard Corps Intelligence 
Organization (IRGC-IO) and Artesh Directorate for Intelligence (J2).
    (vi) Korea, North. Reconnaissance General Bureau (RGB).
    (vii) Russia. Main Intelligence Directorate (GRU).
    (viii) Syria. Military Intelligence Service.
    (ix) Venezuela. General Directorate of Military Counterintelligence 
(DGCIM).

0
9. Supplement No.7 to part 744 is amended in the table by adding in 
alphabetical order an entry for ``CAMBODIA'' to read as follows:

Supplement No. 7 to Part 744--'Military End-User' (MEU) List

* * * * *

------------------------------------------------------------------------
                                                       Federal Register
            Country                     Entity             citation
------------------------------------------------------------------------
 
                                * * * * *
Cambodia.......................  [Reserved].........  [Reserved]
 
                                * * * * *
------------------------------------------------------------------------


Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2021-26633 Filed 12-8-21; 8:45 am]
BILLING CODE 3510-33-P


