[Federal Register: September 22, 2004 (Volume 69, Number 183)]
[Rules and Regulations]
[Page 56693-56695]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se04-12]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 744
[Docket No. 040713207-4207-01]
RIN 0694-AD13
India: Removal of Indian Entity and Revision in License Review
Policy for Certain Indian Entities; and a Clarification
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: On January 12, 2004, President George W. Bush announced the
Next Steps in Strategic Partnership (NSSP) with India. The proposed
cooperation outlined in the NSSP will progress through a series of
reciprocal steps that build on each other, including steps related to
enhancing cooperation in peaceful uses of space technology and steps to
create the appropriate environment for successful high technology
commerce. This rule implements three initial steps the United States
has agreed to take under the NSSP. These steps are: To remove the
Indian Space Research Organization (ISRO) Headquarters, Bangalore from
the Department of Commerce Entity List; to remove the export license
requirements for items subject to the Export Administration Regulations
(EAR) having a classification of EAR99 or a classification where the
third through fifth digits of the Export Commodity Classification
Number (ECCN) are ``999'', e.g. XX999, for the seven (7) ISRO
subsidiaries listed on the Entity List; and establish a presumption of
approval for all items not controlled for nuclear proliferation reasons
going to the ``balance of plant'' portion of Indian nuclear facilities
subject to International Atomic Energy Agency safeguards (Rajasthan 1 &
2 and Tarapur 1 & 2).
This rule also makes one clarification in order to make clear the
longstanding interpretation that information regarding the Entity List
published in the Federal Register is intended to inform the public, not
simply to inform exporters.
DATES: This rule is effective September 22, 2004.
ADDRESSES: Although this is a final rule, comments are welcome and
should be addressed to Sharron Cook, Office of Exporter Services,
Bureau of Industry and Security, Department of Commerce, PO Box 273,
Washington, DC 20044, e-mailed to: scook@bis.doc.gov or faxed to (202)
482-3355.
Comments regarding the collections of information associated with
this rule, including suggestions for reducing the burden, should be
sent to OMB Desk Officer, New Executive Office Building, Washington, DC
20503--Attention: David Rostker; and to the Office of Administration,
Bureau of Industry and Security, Department of Commerce, 14th and
Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: Eileen M. Albanese, Office of Exporter
Services, Bureau of Industry and Security, Telephone: (202) 482-0436.
SUPPLEMENTARY INFORMATION:
Background
In November 2001, Indian Prime Minister Vajpayee and President Bush
committed India and the United States to a strategic partnership. Since
then, the two countries have strengthened bilateral cooperation
significantly in several areas. On January 12, 2004, the two leaders
announced the next steps in implementing a shared vision to expand
cooperation, deepen the ties of commerce and friendship between the two
nations, and increase stability in Asia and beyond.
The proposed cooperation will progress through a series of
reciprocal steps that will build on each other. It
[[Page 56694]]
will include expanded engagement on nuclear regulatory and safety
issues and missile defense, ways to enhance cooperation in peaceful
uses of space technology, and steps to create the appropriate
environment for successful high technology commerce.
This rule implements three initial steps in transforming the
relationship between the United States and India by: (1) Removing the
Indian Space Research Organization (ISRO) Headquarters in Bangalore
from the Department of Commerce Entity List contained in Supplement No.
4 to Part 744 of the Export Administration Regulations (EAR); (2)
removing the license requirement for the seven (7) ISRO subsidiaries
listed on the Entity List for all items subject to the Export
Administration Regulations (EAR) having a classification of EAR99 or a
classification where the third through fifth digits of the Export
Commodity Classification Number (ECCN) are ``999'', e.g., XX999.; and
(3) establishing a presumption of approval for all items not controlled
for nuclear proliferation reasons going to the ``balance of plant''
portion of Indian nuclear facilities subject to International Atomic
Energy Agency safeguards (Rajasthan 1 & 2 and Tarapur 1 & 2). Balance
of plant'' refers to the part of a nuclear power plant used for power
generation (e.g., turbines, controllers, or power distribution) to
distinguish it from the nuclear reactor. This explanation of ``balance
of plant'' is added as a footnote to the Entity List.
The removal of ISRO Headquarters, Bangalore from the Entity List
eliminates the existing license requirements in Supplement No. 4 to
Part 744 for exports to this entity. The removal of entities from the
Entity List does not relieve exporters or reexporters of their
obligations under Part 744. Neither the removal of entities from the
Entity List or the removal of license requirements for entities on the
Entity List relieves exporters or reexporters of their obligations
under General Prohibition 5 in Sec. 736.2(b)(5) of the EAR which
provides that, ``you may not, without a license, knowingly export or
reexport any item subject to the EAR to an end-user or end-use that is
prohibited by part 744 of the EAR.'' BIS strongly urges the use of
Supplement No. 3 to part 732 of the EAR, ``BIS's ``Know Your Customer''
Guidance and Red Flags'' when exporting or reexporting to India.
This rule also amends section 744.1 by revising the phrase
``Exporters are'' to read ``The public is'' in the second sentence of
paragraph (c). BIS is revising this phrase in order to clarify the
longstanding interpretation that when information regarding the Entity
List was published in the Federal Register, BIS was informing the
public. Therefore, this rule clarifies that BIS's intent has always
been to notify all persons that entities listed in Supplement No. 4 are
ineligible to receive any items subject to the EAR without a license to
the extent specified in the supplement. The word ``Exporter'' should
not be read to limit the scope of the notice.
Although the Export Administration Act expired on August 20, 2001,
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783
(2002)) as extended by the Notice of August 7, 2003 (3 CFR, 2003 Comp.
328 (2004)), continues the Regulations in effect under the
International Emergency Economic Powers Act.
Rulemaking Requirements
1. This final rule has been determined to be not significant for
purposes of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person 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 rule
involves a collection of information subject to the PRA. This
collection has been approved by OMB under control number 0694-0088,
``Multi-Purpose Application,'' which carries a burden hour estimate of
58 minutes for a manual or electronic submission. Send comments
regarding these burden estimates or any other aspect of these
collections of information, including suggestions for reducing the
burden, to OMB Desk Officer, New Executive Office Building, Washington,
DC 20503; and to the Office of Administration, Bureau of Industry and
Security, Department of Commerce, 14th and Pennsylvania Avenue, NW.,
Room 6883, Washington, DC 20230.
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 and foreign affairs
function of the United States (5 U.S.C. 553(a)(1)). Further, no other
law requires that a notice of proposed rulemaking and an opportunity
for public comment be given for this final rule. Because a notice of
proposed rulemaking and an opportunity for public comment are not
required to be given for this rule under the Administrative Procedure
Act 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. Although there is no formal
comment period, public comments on this regulation are welcome on a
continuing basis. Comments should be submitted to Sharron Cook, Office
of Exporter Services, Bureau of Industry and Security, Department of
Commerce, PO Box 273, Washington, DC 20044.
List of Subjects in 15 CFR Part 744
Exports, Foreign trade, Reporting and recordkeeping requirements.
0
Accordingly, part 744 of the Export Administration Regulations (15 CFR
parts 730-799) is amended as follows:
PART 744--[AMENDED]
0
1. The authority citation for 15 CFR part 744 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; Sec. 901-911, Pub. L. 106-
387; Sec. 221, Pub. L. 107-56; 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. 12947, 60
FR 5079, 3 CFR, 1995 Comp., p. 356; 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 October 29, 2003,
68 FR 62209, 3 CFR, 2003 Comp., p. 347; Notice of August 6, 2004, 69
FR 48763 (August 10, 2004).
Sec. 744.1 [Amended]
0
2. Section 744.1 is amended by revising the phrase ``Exporters are'' to
read ``The public is'' in the second sentence of paragraph (c).
0
3. In Supplement No. 4 to part 744, under the country of ``India'', the
entities ``Indian Space Research Organization (ISRO) headquarters in
Bangalore'' and ``Department of Atomic Energy Agency entities'' are
revised to read as set forth below:
Supplement No. 4 to Part 744--Entity List
* * * * *
[[Page 56695]]
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License License review Federal Register
Country Entity requirement policy citation
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* * * * * * *
INDIA.......................... The following Indian For all items Case-by-case 63 FR 64322, 11/
Space Research subject to the review for all 19/98; 65 FR
Organization (ISRO) EAR having a items on the CCL. 14444, 03/17/00;
subordinate entities: classification 66 FR 50090, 10/
ISRO Telemetry, other than (1) 01/01; [Insert
Tracking and Command EAR99 or (2) a Federal Register
Network (ISTRAC); classification citation 09/22/
ISRO Inertial Systems where the third 04.
Unit (IISU), through fifth
Thiruvananthapuram; digits of the
Liquid Propulsion ECCN are
Systems Center; Solid ``999'', e.g.
Propellant Space XX999.
Booster Plant
(SPROB); Space
Applications Center
(SAC), Ahmadabad;
Sriharikota Space
Center (SHAR); Vikram
Sarabhai Space Center
(VSSC),
Thiruvananthapuram.
The following For all items Case-by-case for 63 FR 64322, 11/
Department of Atomic subject to the all items listed 19/98; 65 FR
Energy entities: EAR. on the CCL. 14444, 03/17/00;
Bhabha Atomic Presumption of 66 FR 50090, 10/
Research Center approval for 01/01; [Insert
(BARC); Indira Gandhi EAR99 items. Federal Register
Atomic Research citation 09/22/
Center (IGCAR); 04.
Indian Rare Earths;
Nuclear reactors
(including power
plants) not under
International Atomic
Energy Agency (IAEA)
safeguards, fuel
reprocessing and
enrichment
facilities, heavy
water production
facilities and their
collocated ammonia
plants.
The following For all items Case-by-case for 63 FR 64322, 11/
Department of Atomic subject to the all items listed 19/98; 65 FR
Energy entities: EAR. on the CCL. 14444, 03/17/00;
Nuclear reactors Presumption of 66 FR 50090, 10/
(including power approval for 01/01; [Insert
plants) subject to EAR99 items. Federal Register
International Atomic Presumption of citation 09/22/
Energy Agency (IAEA) approval for 04.
safeguards: Tarapur EAR99 items not
(TAPS 1 & 2); controlled for
Rajasthan (RAPS 1 & Nuclear
2). Proliferation
(NP) reasons for
use in the
``balance of
plant'' (non-
reactor-related
end uses) \1\
activities at
nuclear
facilities
subject to
International
Atomic.
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\1\ ``Balance of Plant'' refers to the part of a nuclear power plant used for power generation (e.g., turbines,
controllers, or power distribution) to distinguish it from the nuclear reactor.
Dated: September 17, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-21303 Filed 9-21-04; 8:45 am]
BILLING CODE 3510-33-P