eib world trade headlineseib.com/news/jun2016vol8issue10.pdfthe key players in global naval radar...

Evolutions In Business • www.eib.com • (978) 256-0438 Fax: (978) 250-4529 • P.O. Box 4008, Chelmsford, MA 01824

June 1, 2016 – Volume 8, Issue 10

EIB World Trade Headlines

NEWSLETTERNOTES*Vietnam ITAR Embargo to be Lifted *Airbus Delivers its 1st Aircraft… *The Key Players in Global Naval… *Thales to deliver Unmanned… *U.S. Sees China Boosting Military… *U.S. fight against Chinese espionage… *NEW JERSEY MAN CHARGED WITH… *Cuba: Exports and Reexports… *Removal of Short Supply… *60-Day Notice of Proposed Information Collection:…

Vietnam ITAR Embargo to be Lifted

NewItemsandAnnouncementsIndustryNotice:ChangeinPolicyonExportsofMunitionstoVietnam(05.23.16)PursuanttoadecisionmadebytheSecretaryofStateandeffectiveimmediately,theDepartmentofState'spolicyprohibitingthesaleortransferoflethalweaponstoVietnam,includingrestrictionsonexportstoandimportsfromVietnamforarmsandrelatedmateriel,hasbeenterminated.Consequently,inaccordancewiththeArmsExportControlAct,theDirectorateofDefenseTradeControls(DDTC)willreviewoncase-by-casebasisapplicationsforlicensestoexportortemporarilyimportdefensearticlesanddefenseservicestoorfromVietnamundertheInternationalTrafficinArmsRegulations(ITAR).DDTCwillsoonpublisharuleintheFederalRegistertoimplementaconformingchangetoITAR§126.1.

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Airbus Delivers its 1st Aircraft Produced in the USA

JetBluereceivesA321fromAirbusteaminMobile,AlabamaThefirsteverdeliveryofanaircraftfromtheAirbusU.S.ManufacturingFacilitytookplacetoday,April25th,inMobile,Alabama.TheentireteamofemployeesfromtheAmericanassemblylinegatheredtopresenttheirveryfirstcompletedproduct,anAirbusA321,toJetBlue.OnhandfortheoccasionwereexecutivesfromAirbus,JetBlueseniormanagement,includingPresidentandCEORobinHayes,andabroadcollectionofdignitariesfromtheGulfCoastregion.

“IamimmenselyproudtobeheretoparticipateinthisfirstdeliveryfromMobile,”saidJohnLeahy,AirbusChiefOperatingOfficer–Customers.“GoingfrombreakinggroundonthisfacilitythreeyearsagotohandingoverthefirstAlabama-producedA321todayisanamazingaccomplishment.It’satestamenttohowwellexecutedthisprojectwasandhowstrongtheteamworkhasbeenhereinMobileandthroughoutAirbus.TheAirbusU.S.ManufacturingFacilityhasbroughttogetherallthebestaspectsofourotherassemblylinesaroundtheworld,anditshowshowAirbuspeopleworkhandinhandwithourpartnerstodelivergreataircrafttoourcustomers.”

Airbusannounceditscommitmenttobuildasingle-aisleassemblylineinMobile,Alabamain2012,andlessthanoneyearlater,brokegroundonthe$600million(U.S.)facility.TheceremonialinaugurationoftheplantcameinSeptember2015.Theaircraftdeliveredtoday,aJetBlueA321,successfullyhaditsfirstflightonMarch21st,2016.

InadditiontotheJetBlueA321deliveredtoday,therearecurrentlynineotherA320Familyaircraftinproductionatthefacility.AirbusanticipatesdeliveringfouraircraftpermonthfromtheMobileplantbytheendof2017.TheinitialdeliverieswillallbeA320FamilyaircraftwiththeCurrentEngineOption(CEO),butwillbegintransitioningtoNewEngineOption(NEO)derivativesinlate2017.

InadditiontohundredsofnewAirbusjobstheprojecthasbroughttothelocalcommunity,theMobileareahasseenmanyAirbussuppliersopennewfacilitiesintheregion,providingevenmoreemploymentandaparallelboosttothelocaleconomy.Airbusisproudtoboastthat87percentofitsnewemployeesarefromtheGulfCoastregion,withnearlyonethirdbeingU.S.militaryveterans.Demonstratingtheadage“TheSunNeverSetsonAirbus”–Airbusaircraftarenowproducedaroundtheclock,24hoursaday,atfacilitiesin:Mobile,Alabama;Hamburg,Germany;Toulouse,France;andTianjin,China.

The Key Players in Global Naval Radar Systems Market 2016-2020

Thereport,nowavailableonASDReports,recognizesthefollowingcompaniesasthekeyplayersintheGlobalNavalRadarSystemsMarket:FinmeccanicaSpA,LockheedMartinCorp.,NorthropGrummanCorp.,RaytheonCo.,andThalesGroup.

OtherProminentVendorsinthemarketare:AirbusDefenseandSpace,BAESystems,GeneralDynamics,IsraelAerospaceIndustries,andSaabGroup.

Commentingonthereport,ananalystsaid:“Withtheintroductionofstealthtechnologyinaircraft,cornerreflectorsrenderedthemundetectedbyconventionalradarsystems.However,theintroductionofpassiveradartechnologyhasoverpoweredthestealthtechnology.Unlikeconventionalradarsystems,passiveradarsdonotemitwaves,andtherefore,cannotbejammed.Theycanbeplacedatremotelocationstotrackflyingobjectsatlowaltitudesandareimperativeformilitaryoperations.”

Accordingtothereport,inrecentyears,technologyhasallowedunmannedaerialvehicles(UAV)toovercomecriticaldrawbacks(suchasnavigationalissuesandautomatedoperation)andbeavitalpartofmilitarymainstreamapplications.IncreasedR&DinthisfieldhasbroughtimprovementintheirframeworkslikethesmallersizeandreducedcostandhasresultedinUAVstobeextremelyefficientandexceedinglycompetent.Militaryoperationsalwayslookforsuchincreasedreliabilityandproveneffectivenessinanysuchnewtechnology.

Further,thereportstatesthattheradarsthatarebeingusedinmarineapplicationsarepronetojammingandthusposeseriousthreats.

Thestudywasconductedusinganobjectivecombinationofprimaryandsecondaryinformationincludinginputsfromkeyparticipantsintheindustry.ThereportcontainsacomprehensivemarketandvendorlandscapeinadditiontoaSWOTanalysisofthekeyvendors.

Thales to deliver Unmanned Air Service capability with its Fulmar

solution to the MMEA

• The Malaysian Maritime Enforcement Agency selects ThalesaEUR(tm)s Fulmar UAS to equip six New Generation Patrol Crafts.

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• TheFulmarsystemoffersrapiddeploymentandretrieval,withminimalinterferencetotheshipaEUR(tm)soperationswhilstinmotion.

• Thesystemoffershighperformancesurveillance

featuressuchasAutomaticDetectionandTrackingandAutomaticIdentification

ThalesreinforcesitscommitmenttosupportingMalaysianmaritimesecuritybysecuringacontracttodelivertheFulmarUASsystemtotheMalaysianMaritimeEnforcementAgency.

Fulmar,asmall,highperformance,fixedwingUAS,istobeinstalledonsixNewGenerationPatrolCrafts(NGPC),beingconstructedbyDestiniShipbuildingandEngineeringSdn.Bhd.ThemaritimedesignofFulmarallowstheaircrafttotake-offandland,whilsttheshipisinmotion,akeyrequirementoftheMMEA.Thiscapabilityoffersanunrivalledcompetitiveadvantagetoothersystemsinthemarket.

FulmarwillextendtheoperationalcapabilitiesoftheMalaysianmaritimesurveillancefleet,provingabroadrangeofoperationalcapabilitiesincludingcounter-piracy,anti-smugglingoperations,fisheriespolicingandbordersurveillance.AutomaticdetectionandtrackingsystemsandAutomaticIdentificationSystems(AIS)deliverunrivalledhighperformancesurveillanceonaflexibleplatform.

ThalesremainscommittedtosupportingtheMalaysianauthoritiesasitrenewsandupdatesitsnavalfleet.Startingin2016,ThalesemployeesinMalaysiawillprovidelocaltrainingandsupportfortheFulmar,ensuringeffectiveknowledgetransferforoperationalandmaintenanceneedsthroughoutthesystem’slifecycle.

Thaleshasover40yearsofexperienceinairbornesurveillancesystemsandistheEuropeanleaderinTacticalUnmannedAircraft,makingustheidealpartnerforcurrentandfuturesurveillanceUAVprogrammes.

“AstheMMEAseekstoupgradeitssurveillancecapabilities,theFulmarprovidesacompetitivesolutionwhichcomplementsitsstate-of-the-artvessels.WearepleasedtopartnerwithThalesinfurtherdevelopingtheexpertiseincoastalsurveillanceinMalaysia.”TanSriDato’SeriRodzaliBinDaud,ChairmanofDestiniBerhad

U.S. Sees China Boosting Military Presence After Island-Building Spree

“Substantialinfrastructure,includingcommunicationsandsurveillancesystems,isexpectedtobebuiltonthesefeatures.”Chinaisexpectedtoaddsubstantialmilitaryinfrastructure,includingsurveillancesystems,toartificialislandsintheSouthChinaSeathisyear,givingitlong-term“civil-militarybases”inthecontestedwaters,thePentagonsaidonFriday.InitsannualreporttoCongressonChina’smilitaryactivitiesin2015,theU.S.DefenseDepartmentestimatedthatChina’sreclamationworkhadaddedmorethan3,200acres(1,300hectares)oflandonsevenfeaturesitoccupiedintheSpratlyIslandsinthespaceoftwoyears.ItsaidChinahadcompleteditsmajorreclamationeffortsinOctober,switchingfocustoinfrastructuredevelopment,includingthree9,800foot-long(3,000meter)airstripsthatcanaccommodateadvancedfighterjets.“Additionalsubstantialinfrastructure,includingcommunicationsandsurveillancesystems,isexpectedtobebuiltonthesefeaturesinthecomingyear,”thereportsaid.“Chinawillbeabletouseitsreclaimedfeaturesaspersistentcivil-militarybasestoenhanceitspresenceintheSouthChinaSeasignificantly.”ThereportcomesatatimeofheightenedtensionovermaritimeterritoriesclaimedbyChinaanddisputedbyseveralAsiannations.WashingtonhasaccusedBeijingofmilitarizingtheSouthChinaSeawhileBeijing,inturn,hascriticizedincreasedU.S.navalpatrolsandexercisesinAsia.ThePentagonreportsaidChinawasfocusingondevelopingcapabilitiestocounteroutsideinterventioninanyconflict,butappearedtowanttoavoiddirectconfrontationwiththeUnitedStatesinAsia,giventhepotentialeconomicdamage.Atthesametime,“Chinademonstratedawillingnesstotoleratehigherlevelsoftensioninthepursuitofitsinterests,especiallyinpursuitofitsterritorialclaims,”thereportsaid.MILITARYCHIEFSTALKThePentagondisclosedonFridaythattheU.S.military’stopofficer,MarineGeneralJosephDunford,hadproposedaneffortto“bolsterriskreductionmechanisms”tohiscounterpart,theChineseChiefoftheJointStaffDepartment,GeneralFangFenghui.


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Dunford’sspokesman,CaptainGregHicks,saidinastatementthatbothsidesagreedthetalks,whichtookplacebyvideoconferenceonThursday,wereavaluablewayto“managebothcooperativeandcontentiousissues,andavoidmiscalculation.”ThePentagon’sreportcautionedthatChinawascommittedtosustaininggrowthindefensespendingevenasitseconomicgrowthcoolsandtopursuingobjectivesincreasinglydistantfromChina’sshores.AbrahamDenmark,deputyassistantsecretaryofdefenseforEastAsia,toldabriefingthatChina’s2015defensespendingwashigherthanitpubliclydisclosedandhadreached$180billion,comparedwithanofficialChineseof$144billion.ThereportpointedtoChina’sNovemberannouncementthatitwasestablishingamilitaryfacilityinDjibouti.ItsaidChinawasalsoexpectedtoestablishnavallogisticshubsincountrieswithwhichitsharesinterests,includingPakistan.TheU.SreportrenewedaccusationsagainstChina’sgovernmentandmilitaryforcyberattacksagainstU.S.governmentcomputersystems,achargeBeijingdenies.Itsaidattacksin2015appearedfocusedonintelligencecollection.“TargetedinformationcouldinformChinesemilitaryplanners’worktobuildapictureofU.S.defensenetworks,logistics,andrelatedmilitarycapabilitiesthatcouldbeexploitedduringacrisis,”thereportsaid.Italsocautionedthattheactionsandskillsneededfortheintrusionscarriedouttodate“aresimilartothosenecessarytoconductcyberattacks.”(ReportingbyPhilStewartandDavidBrunnstrom;editingbyStuartGrudgings)

U.S. fight against Chinese espionage

ensnares innocent Americans

AmericanXiaoxingXi,chairofTempleUniversityphysicsdepartment,waswronglyaccusedofsendingAmerican

technologytoChinaandworriesabouthiscareerTheU.S.JusticeDepartmentbungledtheeconomicespionagecaseagainstXiaoxingXi.ItinvestigatedhimforcontactwithChinesescientiststhatwasrequiredbyhisU.S.fundedresearchgrants.Nowcleared,Xi,anaturalizedcitizenoftheU.S.,fearsthefalseaccusationsmayhavelingering

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epercussionsonhispromisingcareer.XiappearsinhisfirsttelevisioninterviewinaBillWhitakerstoryaboutChinese-Americancitizenswronglyaccusedofeconomicespionage-relatedcrimesforChina.Whitaker'sreportwillbebroadcaston60MinutesSunday,May15at7p.m.ET/PT.LastMay,XiwasarrestedathishomeinaraidbyarmedFBIagentswearingbullet-proofvests.Atfirsthethoughtitwasamistake.Soonhelearnedotherwise."Iwassayingtomyself,they'regoingtoputmeinjail,andallofthesethingsthatI'vebeenworkingforyearswascomingtoanend,"hetellsWhitaker.

ThegovernmentaccusedXiofprovidingChinesescientistswithapieceofproprietaryAmericantechnologyusedforsuperconductorresearch.ItturnedoutXiwascollaboratingwiththeChinesescientistsonacompletelydifferentdevicethathewasdevelopinghimself.Itwasn'tproprietaryandithadnoeconomicvalue.Still,ittookfourmonthsand$200,000inlegalfeesbeforehislawyer,PeterZeidenberg,couldmakethegovernmentrecognizeitsmistake.XiisbackatTemple,buthewillnolongerchairthephysicsdepartment.TheJusticeDepartmenthasnotapologized."Ididn'tdoanythingwrongbutmyfamilyandmyselfhadtogothroughthis.Ithinkwedeservesomekindofapology,"hesays."And,youknow,it'snotover,right?Thescarsfromthistraumaticexperienceissodeepthatit'sgoingtobewithusfortherestofourlife."

Zeidenberg,aformerfederalprosecutor,blamesgovernmentalarmaboutalegitimateproblem.ChineseeconomicespionagecoststheU.S.economyhundredsofbillionsofdollars."Ithinkprosecutorsarefeelingpressuretobringthesecases.Ithinkinvestigatorsareexcitedaboutbringingcasesthatmaybehighprofile,"hesays.

ZeidenbergalsorepresentsSherryChen,anaturalizedAmericancitizenandformerNationalWeatherServicehydrologistwhowassuspectedofpassinggovernmentdataonU.S.infrastructuretoChina.AsinXi'scase,prosecutorseventuallydroppedthechargesagainstChen.Butshewasfiredfromherjob.Inherfirsttelevisioninterview,ChentellsWhitaker,"I'madedicatedworker.Ididn'tdoanythingwrong.AndIlovemyjob."

TheJusticeDepartmentwouldnotbeinterviewedoncamerabutgave60Minutesthisstatement:"Weinvestigateandprosecuteindividualsbasedonknownorsuspectedcriminalactivitiesorthreatstonationalsecurity,notbasedonrace,ethnicityornationalorigin."

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NEW JERSEY MAN CHARGED WITH CONSPIRACY TO PROVIDE FALSE

STATEMENTS RELATED TO EXPORT OF PROHIBITED GOODS TO IRAN

SCRANTON-TheUnitedStatesAttorney’sOfficefortheMiddleDistrictofPennsylvaniaannouncedtodaythatapleaagreementandafelonyCriminalInformationchargingaNewJerseymanwithconspiringtoprovidefalsestatementsrelatedtoillegallyexportinggoodstoIranhavebeenfiledinU.S.DistrictCourtinScranton,Pennsylvania.AccordingtoUnitedStatesAttorneyPeterSmith,AsimFareed,age51,ofNorthBrunswick,NewJersey,hasagreedtoenteraguiltypleatoconspiracytoprovidefalsestatementsinconnectiontotheillegalexportofgoodstoIran.AccordingtotheInformation,FareedoperatedanexportbusinessinSomerset,NewJerseyandagreedtoshipitemspurchasedbycustomersinIranandtoprovidefalsedocumentationtotheU.S.DepartmentofCommerceforexportpurposes.CommunicationsconcerningtheshipmentspassedbetweenNewJerseyandasiteinLackawannaCounty,Pennsylvania.Noactualshipmentswere,infact,deliveredtoIran.TheInformationchargesthatin2013and2014FareedconspiredwithotherstoexportitemsfromtheUnitedStates,throughthirdpartycountriestocustomersinIran.AccordingtotheInformation,Fareedpreparedinvoiceswhichlistedfalseinformationastotheidentityandgeographiclocationofthepurchasersofthegoods.TheitemswerethentobeshippedfromtheUnitedStatestotheUnitedArabEmirates,andthereaftertransshippedtoIran.Thepleaagreementissubjecttotheapprovalofthecourt."TheOfficeofExportEnforcementvigorouslypursuesviolatorsofournation'sexportcontrollaws,whichareinplacetofurtherandprotectournationalsecurityandforeignpolicy.Asinthisinstance,weworkcloselywithourcolleaguesatHSIandotherlawenforcementagenciesinprosecutingthiscase,"saidJonathanCarson,SpecialAgentinCharge,U.S.DepartmentofCommerce,BureauofIndustryandSecurity,OfficeofExportEnforcement,NewYorkFieldOffice.“ThiscasedemonstrateshowfarindividualswillgotocircumventU.S.exportlawstoexportgoodstocountriesliketheIslamicRepublicofIran,”saidAngelM.Melendez,specialagentinchargeofHSIinNewYork.“TheIranTradeEmbargoprohibitsAmericansfromsupplyinggoods,technologyandservicestoIrandirectlyorindirectly.HSIiscommittedtoaggressivelypursuingthosewhoconductillegalbusinesswithIran.”


ThecasewasinvestigatedbytheDepartmentofCommerce,OfficeofExportEnforcementandU.S.ImmigrationandCustomEnforcement’s(ICE),HomelandSecurityInvestigations(HSI).AssistantU.S.AttorneyToddK.Hinkleyisprosecutingthecase.Informationsareonlyallegations.Allpersonschargedarepresumedtobeinnocentunlessanduntilfoundguiltyincourt.AsentencefollowingafindingofguiltyisimposedbytheJudgeafterconsiderationoftheapplicablefederalsentencingstatutesandtheFederalSentencingGuidelines.UndertheFederalSentencingGuidelines,theJudgeisalsorequiredtoconsiderandweighanumberoffactors,includingthenature,circumstancesandseriousnessoftheoffense;thehistoryandcharacteristicsofthedefendant;andtheneedtopunishthedefendant,protectthepublicandprovideforthedefendant’seducational,vocationalandmedicalneeds.Forthesereasons,thestatutorymaximumpenaltyfortheoffenseisnotanaccurateindicatorofthepotentialsentenceforaspecificdefendant.

Cuba: Exports and Reexports of Foreign-Made Items

BoththeDepartmentofCommerce’sBureauofIndustryandSecurity(BIS)andtheDepartmentoftheTreasury’sOfficeofForeignAssetsControl(OFAC)administerCubasanctionspursuanttotheExportAdministrationRegulations(EAR)(15C.F.R.Parts730-774)andtheCubanAssetsControlRegulations(CACR)(31C.F.R.Part515),respectively.MostexportorreexporttransactionsrequiregeneralorspecificauthorizationsfrombothBISandOFAC.OFAChasissuedagenerallicenseauthorizingalltransactionsordinarilyincidenttotheexportationofitemsfromtheUnitedStates,orthereexportationof100percentU.S.-originitemsfromathirdcountry,toanypersoninCuba,providedthattheexportationislicensedorotherwiseauthorizedbyBIS.See31C.F.R.§515.533.Accordingly,forthose BIS-licensedexportsorreexports,furtherOFACauthorizationgenerallyisnotneeded.However,insomecases,aspecificlicensefromOFACmayberequiredinconnectionwithBIS-authorizedexportsorreexports.Forexample,althoughBISmayauthorizetheexporttoCubaofforeign-madeitemsfromtheUnitedStates,personsmayrequireaspecific licensefromOFACfortheinitialimportationintotheUnitedStatesofitemsspecificallyintendedforexporttoCuba.Additionally,evenifBIShasauthorizedthereexportofitemsthatarenot100percentU.S.-origintoCuba,personssubjecttoU.S.jurisdictionwould alsorequireaspecificlicensefromOFACtoreexportthe


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items,andOFAC’sconsiderationofapplicationsforsuchlicensesmaybesubjecttostatutoryrestrictions.See31C.F.R.§515.559.

ForadditionalinformationregardingBIS’sCubasanctions,pleasevisithttp://www.bis.doc.gov/cuba.YoumayalsocallBIS’sForeignPolicyDivision(202-482-4252).

ForadditionalinformationregardingOFAC’sCubasanctions,pleasevisithttp://www.treasury.gov/cuba.

YoumayalsocallOFAC’stollfreehotline(800-540-6322),itslocalhotline(202-622-2490),ortheLicensingDivision(202-622-2480),orsendamessagetoOFAC’semailhotlineaccount([email protected]).

Removal of Short Supply License

Requirements on Exports of Crude Oil 5/12/16 81 FR 29483

FederalRegister/Vol.81,No.92/Thursday,May12,2016/RulesandRegulations 29483

(v)ImplementconservationpracticesconsistentwithanapprovedforestmanagementplanwhentheEQIPplanofoperationsincludesforest-relatedpracticesthataddressresourceconcernsonNIPF, ■6.Amend§1466.25byrevisingparagraphs(b)through(d),redesignatingparagraph(e)asparagraph(f),andaddinganewparagraph(e)toreadasfollows:

§1466.25Contractmodificationsandtransfersofland. (b)Withinthetimespecifiedinthecontract,theparticipantmustprovideNRCSwithwrittennoticeregardinganyvoluntaryorinvoluntarylossofcontrolofanyacreageundertheEQIPcontract,whichincludeschangesinaparticipant’sownershipstructureorcorporateform.Failuretoprovidetimelynoticewillresultinterminationoftheentirecontract.(c)UnlessNRCSapprovesatransferofcontractrightsunderthisparagraph(c),aparticipantlosingcontrolofanyacreagewillconstituteaviolationoftheEQIPcontractandNRCSwillterminatethecontractandrequireaparticipanttorefundalloraportionofanyfinancialassistanceprovided.NRCSmayapproveatransferofthecontractif:(1)NRCSreceiveswrittennoticethatidentifiesthenewproducerwhowilltakecontroloftheacreage,asrequiredinparagraph(d)ofthissection;(2)Thenewproducermeetsprogrameligibilityrequirementswithinareasonabletimeframe,asspecifiedintheEQIPcontract;


(3)Thenewproduceragreestoassumetherightsandresponsibilitiesfortheacreageunderthecontract;and(4)NRCSdeterminesthatthepurposesoftheprogramwillcontinuetobemetdespitetheoriginalparticipant’slosingcontrolofalloraportionofthelandundercontract.(d)UntilNRCSapprovesthetransferofcontractrights,thenewproducerisnotaparticipantintheprogramandmaynotreceivepaymentforconservationactivitiescommencedpriortoapprovalofthecontracttransfer.(e)NRCSmaynotapproveacontracttransferandmayterminatethecontractinitsentiretyifNRCSdeterminesthatthelossofcontrolisvoluntary,thenewproducerisnoteligibleorwillingtoassumeresponsibilitiesunderthecontract,orthepurposesoftheprogramcannotbemet.Signedthis26thdayofApril,2016,inWashington,DC.JasonA.Weller,VicePresident,CommodityCreditCorporation,andChief,NaturalResourcesConservationService.[FRDoc.2016–10161Filed5–11–16;8:45am]BILLINGCODE3410–16–PDEPARTMENTOFCOMMERCEBureauofIndustryandSecurity15CFRParts730,740,742,744,746,754,762,772,and774[DocketNo.160302175–6175–01]RIN0694–AG83RemovalofShortSupplyLicenseRequirementsonExportsofCrudeOilAGENCY:BureauofIndustryandSecurity,Commerce.ACTION:Finalrule.SUMMARY:TheBureauofIndustryandSecurity(BIS)publishesthisfinalruletoamendtheExportAdministrationRegulations(EAR)toremovetheshortsupplylicenserequirementsthat,priortotheentryintoforceofthe‘‘ConsolidatedAppropriationsAct,2016’’onDecember18,2015,appliedtoexportsofcrudeoilfromtheUnitedStates.Specifically,thisruleremovestheCommerceControlList(CCL)entryandthecorrespondingshortsupplyprovisionsintheEARthatrequiredalicensefromBIStoexportcrudeoilfromtheUnitedStates.ThisrulealsoamendscertainotherEARprovisionstoreflecttheremovaloftheseshortsupplylicenserequirements.ThechangesmadebythisruleareintendedtobringtheprovisionsoftheEARintofullcompliancewiththeact,whichmandatesthat,apartfromcertainexemptionsspecifiedtherein,‘‘noofficialoftheFederalGovernmentshallimposeorenforceanyrestrictionontheexportofcrudeoil.’’Consistentwiththeexceptionsintheact,exportsofcrudeoilcontinuetorequireauthorizationfromBIStoembargoedorsanctionedcountriesorpersonsandtopersonssubjecttoadenialofexportprivileges.DATES:ThisruleiseffectiveMay12,2016.

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ADDRESSES:Sendcommentsregardingthiscollectionofinformation,includingsuggestionsforreducingtheburden,toJasmeetSeehra,OfficeofManagementandBudget(OMB),[email protected],orbyfaxto(202)395–7285;andtotheRegulatoryPolicyDivision,BureauofIndustryandSecurity,DepartmentofCommerce,14thStreet&PennsylvaniaAvenueNW.,Room2705,Washington,DC20230.FORFURTHERINFORMATIONCONTACT:EileenAlbanese,Director,OfficeofNationalSecurityandTechnologyTransferControls,BureauofIndustryandSecurity,Telephone:(202)482–0092,Email:[email protected]:TheBureauofIndustryandSecurity(BIS)isamendingtheExportAdministrationRegulations(EAR)tocomplywiththerequirementsofDivisionO,Title1,Section101ofPublicLaw114–113(theConsolidatedAppropriationsAct,2016)concerningexportsofcrudeoilfromtheUnitedStates.TheseprovisionsrepealSection103oftheEnergyPolicyandConservationAct(formerly,42U.S.C.6212),whichrequiredthatthePresidentpromulgatearuleprohibitingtheexportofcrudeoil,andmandate,instead,that‘‘notwithstandinganyotherprovisionoflaw,exceptasprovidedinsubsections(c)and(d)...noofficialoftheFederalGovernmentshallimposeorenforceanyrestrictionontheexportofcrudeoil.’’Consistentwiththisrequirement,thisfinalruleamendspart754oftheEARbyremovingandreserving§754.2,whichdescribedtheshortsupplylicenserequirementsandlicensingpoliciesthatappliedtoexportsofcrudeoilfromtheUnitedStatestoalldestinations.ThisrulealsoamendstheCommerceControlList(CCL)inSupplementNo.1topart774oftheEARbyremovingExportControlClassificationNumber(ECCN)1C981,whichcontrolledcrudepetroleum,includingreconstitutedcrudepetroleum,tarsandsandcrudeshaleoillistedinSupplementNo.1topart754oftheEAR(CrudePetroleumandPetroleumProducts).Inaddition,thisrulemovesthedefinitionof‘‘crudeoil,’’whichpreviouslyappearedin§754.2(a)oftheEAR,to§772.1(DefinitionsoftermsasusedintheExportAdministrationRegulations(EAR)),becauseitcontinuestohaverelevancewithrespecttotheend-user/end-userequirementsinpart744oftheEARandtheembargoesandotherspecialcontrolsinpart746oftheEAR.Thescopeofthisdefinitionremainsunchanged.Theeffectofthechangesdescribedaboveistoremovetheshortsupplylicenserequirementspreviouslyapplicabletocrudeoil,ascontrolledunderECCN1C981,therebymakingcrudeoilanEAR99item(i.e.,subjecttotheEAR,asdescribedin§734.3(a),butnolongerlistedontheCCL).Assuch,crudeoilexportswillnowbetreatedsimilarlytoexportsofpetroleumproductslistedinSupplementNo.1topart754thathavenotbeenproducedorderivedfromtheNavalPetroleumReserves(NPR)orbecomeavailableforexportasaresultofanexchangeofanyNPRproducedorderived


commodities(suchpetroleumproductsarenotcontrolledunderECCN1C980,1C982,1C983,or1C984ontheCCL,butaredesignatedasEAR99items,instead).AsanEAR99item,crudeoilremainssubjecttotheEAR,asdescribedin§734.3(a)oftheEAR,andexportsofcrudeoilcontinuetorequireauthorizationfromBIStoembargoedorsanctionedcountriesorpersonsandtopersonssubjecttoadenialofexportprivileges,asdescribedinparts744,746,and764oftheEAR.ThecontinuanceoftheseEARcontrolsisconsistentwiththeexemptionsstatedinDivisionO,Title1,Section101,subsections(c)and(d)ofPublicLaw114–113.ThisfinalrulealsoamendscertainotherprovisionsintheEARtoreflecttheremovaloftheshortsupplylicenserequirementsoncrudeoil.Specifically,thisrulemakesadditionalamendmentstopart754byremovingandreservingparagraph(b)(1)(i)in§754.1andbyremovingandreservingSupplementNo.3topart754(StatutoryProvisionsDealingwithExportsofCrudeOil).Thisrulealsoremovesreferencesto§754.2fromSupplementNo.1topart730and§762.2(b)(39).Inaddition,thisruleamends§740.15(LicenseExceptionAVS)byremovingtheparentheticalreferenceto§754.2from§740.15(b)(3)andbyremovingtheNotetoparagraph(c)(3),whichalsoreferenced§754.2.ThisrulealsoremovesreferencestoECCN1C981from§742.1(b)(1)and§746.7(a)(1)oftheEAR.In§744.7(RestrictionsonCertainExportstoandfortheuseofCertainForeignVesselsorAircraft),paragraphs(b)(3)(i)and(ii)arerevisedtoremovetheexclusionsthatpreviouslyappliedtocrudeoilandblendsofcrudeoilwithotherpetroleumproducts,becausesuchitemsweresubjecttotheshortsupplycontrolsdescribedin§754.2oftheEAR.Finally,thisruleremovesauthoritycitationsforstatutoryprovisionsdealingwithrestrictionsontheexportsofcrudeoil,whichnolongerprovideBISwithenforcementauthority,basedonDivisionO,Title1,Section101,subsection(b)ofPublicLaw114–113,whichprohibitsofficialsoftheFederalGovernmentfromimposingorenforcinganyrestrictionontheexportofcrudeoil‘‘notwithstandinganyotherprovisionoflaw.’’Specifically,thisruleremovestheauthoritycitationsto30U.S.C.185(s),30U.S.C.185(u),and43U.S.C.1354fromparts730,754,and774oftheEAR.AlthoughtheExportAdministrationActexpiredonAugust20,2001,thePresident,throughExecutiveOrder13222ofAugust17,2001,3CFR,2001Comp.,p.783(2002),asamendedbyExecutiveOrder13637ofMarch8,2013,78FR16129(March13,2013),andasextendedbytheNoticeofAugust7,2015(80FR48233(Aug.11,2015)),hascontinuedtheExportAdministrationRegulationsineffectundertheInternationalEmergencyEconomicPowersAct(50U.S.C.1701etseq.).BIScontinuestocarryouttheprovisionsoftheExportAdministrationAct,asappropriateandtotheextentpermittedbylaw,pursuanttoExecutiveOrder13222asamendedbyExecutiveOrder13637.RulemakingRequirements1.ExecutiveOrders13563and12866directagenciestoassessallcostsandbenefitsofavailableregulatoryalternativesand,ifregulationisnecessary,toselectregulatory


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approachesthatmaximizenetbenefits(includingpotentialeconomic,environmental,publichealthandsafetyeffects,distributiveimpacts,andequity).ExecutiveOrder13563emphasizestheimportanceofquantifyingbothcostsandbenefits,ofreducingcosts,ofharmonizingrules,andofpromotingflexibility.Thisrulehasbeendesignateda‘‘significantregulatoryaction,’’althoughnoteconomicallysignificant,undersection3(f)ofExecutiveOrder12866.Accordingly,therulehasbeenreviewedbytheOfficeofManagementandBudget.2.Notwithstandinganyotherprovisionoflaw,nopersonisrequiredtorespondto,norshallanypersonbesubjecttoapenaltyforfailuretocomplywith,acollectionofinformationsubjecttotherequirementsofthePaperworkReductionActof1995(44U.S.C.3501etseq.)(PRA),unlessthatcollectionofinformationdisplaysacurrentlyvalidOfficeofManagementandBudget(OMB)ControlNumber.ThisrulecontainsacollectionofinformationsubjecttotherequirementsofthePRA.ThiscollectionhasbeenapprovedbyOMBunderControlNumber0694–0088(Multi-PurposeApplication),whichcarriesaburdenhourestimateof58minutestoprepareandsubmitformBIS–748.Sendcommentsregardingthisburdenestimateoranyotheraspectofthiscollectionofinformation,includingsuggestionsforreducingtheburden,toJasmeetSeehra,OfficeofManagementandBudget,andtotheRegulatoryPolicyDivision,BureauofIndustryandSecurity,DepartmentofCommerce,asindicatedintheADDRESSESsectionofthisrule.3.ThisruledoesnotcontainpolicieswithFederalismimplicationsasthattermisdefinedinExecutiveOrder13132.4.TheprovisionsoftheAdministrativeProcedureAct(APA)(5U.S.C.553)requiringnoticeofproposedrulemakingandtheopportunityforpublicparticipationarewaivedforgoodcause,becausetheyare‘‘unnecessary’’and‘‘contrarytothepublicinterest.’’(See5U.S.C.553(b)(B)).ThisrulebringstheExportAdministrationRegulations(EAR)intoconformitywiththeCongressionalmandateinDivisionO,Title1,Section101ofPublicLaw114–113,whichstatesthat‘‘notwithstandinganyotherprovisionoflaw,exceptasprovidedinsubsections(c)and(d)...noofficialoftheFederalGovernmentshallimposeorenforceanyrestrictionsontheexportofcrudeoil.’’Adelayofthisrulemakingtoallowfornoticeandpubliccommentwouldbe‘‘unnecessary,’’withinthecontextoftheAPA,becausecontinuanceofthecontrolsin§754.2oftheEARwouldbecontrarytotheexplicitmandateinPublicLaw114–113againsttheimpositionorenforcementofanyrestrictionontheexportofcrudeoilbyanofficialoftheFederalGovernment.Undersuchcircumstances,thepublicinterestwouldnotbeservedbysolicitingcommentsontheremovalofthesecontrols.Adelayofthisrulemakingtoallowfornoticeandpubliccommentalsowouldbe‘‘contrarytothepublicinterest,’’withinthecontextoftheAPA,becausecontinuanceofthecontrolsin§754.2oftheEARwouldbecontrarytotheexplicitmandateinPublicLaw114–113againsttheimpositionorenforcementofanyrestrictionontheexportofcrudeoilbyanofficialoftheFederal


Government.Undersuchcircumstances,thepublicinterestwouldnotbeservedbysolicitingcommentsontheremovalofthesecontrols.Adelayofthisrulemakingtoallowfornoticeandpubliccommentalsowouldbe‘‘contrarytothepublicinterest,’’withinthecontextoftheAPA,becausecontinuanceofthecontrolsin§754.2oftheEARwouldresultinunnecessaryconfusionduetotheobviouscontradictionbetweentheshortsupplylicenserequirementsforcrudeoil,asdescribedin§754.2oftheEARpriortothepublicationofthisrule,andtheCongressionalmandateinPublicLaw114–113,whichprohibitssuchlicenserequirements.Furthermore,theconfusionresultingfromanydelaytoallowfornoticeandcommentwouldbecontrarytothepublicinterest,asstatedinPublicLaw114–113,whichis‘‘topromotetheefficientexploration,production,storage,supply,marketing,pricing,andregulationofenergyresources,includingfossilfuels.’’Specifically,theobviouscontradictionbetweentherequirementspreviouslydescribedin§754.2oftheEARandthemandateinPublicLaw114–113mightdiscouragesomepersonsfrompursuingcrudeoilexportopportunities,therebyresultinginsignificanteconomiclossesduetolostsales.Atbest,theconfusioncausedbythiscontradictionlikelywouldresultinunnecessarydelays,whichalsocaninvolvesignificanteconomiccosts.TheprovisionoftheAdministrativeProcedureAct(APA)(5U.S.C.553)requiringa30-daydelayineffectivenessisalsowaivedforgoodcause.(5U.S.C.553(d)(3)).TheamendmentstotheEARcontainedinthisfinalrulearerequiredtomaketheEARconformtotheCongressionalmandateinPublicLaw114–113,whichstatesthat‘‘exceptasprovidedinsubsections(c)and(d)...noofficialoftheFederalGovernmentshallimposeorenforceanyrestrictionsontheexportofcrudeoil.’’Adelayofthisrulemakingtoallowfora30-daydelayineffectivenesswouldbe‘‘unnecessary,’’withinthecontextoftheAPA,becausecontinuanceofthecontrolsin§754.2oftheEARwouldbecontrarytotheexplicitmandateinPublicLaw114–113and,assuch,wouldnotservethepublicinterest.Adelayofthisrulemakingtoallowfora30-daydelayineffectiveness,alsowouldbe‘‘contrarytothepublicinterest,’’withinthecontextoftheAPA,becausesuchadelaywouldresultinunnecessaryconfusioncausedbythecontradictionbetweentheEAR’sshortsupplylicenserequirementsforcrudeoilandtheCongressionalmandateinPublicLaw114–113,asdescribedabove.Inaddition,anydelaytoallowfornoticeandcommentwouldbecontrarytothepublicinterest,asstatedinPublicLaw114–113andreiteratedabove. Further,nootherlawrequiresthatanoticeofproposedrulemakingandanopportunityforpubliccommentbegivenforthisfinalrule.BecauseanoticeofproposedrulemakingandanopportunityforpubliccommentarenotrequiredtobegivenforthisruleundertheAdministrativeProcedureActorbyanyotherlaw,theanalyticalrequirementsoftheRegulatoryFlexibilityAct(5U.S.C.601etseq.)arenotapplicable.Therefore,thisregulationisissuedinfinalform.


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SupplementNo.1toPart730—InformationCollectionRequirementsUnderthePaperworkReductionAct:OMBControlNumbers

PART740—[AMENDED]■3.Theauthoritycitationforpart740continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;22U.S.C.7201etseq.;E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;NoticeofAugust7,2015,80FR48233(August11,2015).■4.Section740.15isamendedbyrevisingparagraph(b)(3)introductory

textandbyremovingthenotetoparagraph(c)(3).Therevisionreadsasfollows:§740.15Aircraft,vessels,andspacecraft(AVS).(b)(3)Shipandplanestores.Usualandreasonablekindsandquantitiesofthefollowingcommoditiesmaybeexportedforuseorconsumptiononboardanaircraftorvesselofanyregistryduringtheoutgoingandimmediatereturnflightorvoyage.PART742—[AMENDED]■5.Theauthoritycitationforpart742continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;22U.S.C.3201etseq.;42U.S.C.2139a;22U.S.C.7201etseq.;22U.S.C.7210;Sec.1503,Pub.L.108–11,117Stat.559;E.O.12058,43FR20947,3CFR,1978Comp.,p.179;E.O.12851,58FR33181,3CFR,1993Comp.,p.608;E.O.12938,59FR59099,3CFR,1994Comp.,p.950;E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;PresidentialDetermination2003–23,68FR26459,3CFR,2004Comp.,p.320;NoticeofAugust7,2015,80FR48233(August11,2015);NoticeofNovember12,2015,80FR70667(November13,2015).§742.1 [Amended]■6.In§742.1,removethephrase‘‘1C981(Crudepetroleum,includingreconstitutedcrudepetroleum,tarsands,andcrudeshaleoil);’’whereitappearsinthesecondsentenceofparagraph(b)(1).PART744—[AMENDED]■7.Theauthoritycitationforpart744continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;22U.S.C.3201etseq.;42U.S.C.2139a;22U.S.C.7201etseq.;22U.S.C.7210;E.O.12058,43FR20947,3CFR,1978Comp.,p.179;E.O.12851,58FR33181,3CFR,1993Comp.,p.608;E.O.12938,59FR59099,3CFR,1994Comp.,p.950;E.O.12947,60FR5079,3CFR,1995Comp.,p.356;E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13099,63FR45167,3CFR,1998Comp.,p.208;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;E.O.13224,66FR49079,3CFR,2001Comp.,p.786;NoticeofAugust7,2015,80FR48233(August11,2015);NoticeofSeptember18,2015,80FR57281(September22,2015);


ListofSubjects15CFRPart730Administrativepracticeandprocedure,Advisorycommittees,Exports,Reportingandrecordkeepingrequirements,Strategicandcriticalmaterials.15CFRPart740Administrativepracticeandprocedure,Exports,Reportingandrecordkeepingrequirements.15CFRPart742Administrativepracticeandprocedure,Chemicals,Exports,Foreigntrade,Reportingandrecordkeepingrequirements.15CFRPart744Exports,Foreigntrade,Reportingandrecordkeepingrequirements.15CFRPart746Exports,Reportingandrecordkeepingrequirements.15CFRPart754Agriculturalcommodities,Exports,Forestsandforestproducts,Horses,Petroleum,Reportingandrecordkeepingrequirements.15CFRPart762Administrativepracticeandprocedure,Businessandindustry,Confidentialbusinessinformation,Exports,Reportingandrecordkeepingrequirements.15CFRPart772Exports.15CFRPart774Exports,Reportingandrecordkeepingrequirements.Forthereasonsstatedinthepreamble,parts730,740,742,744,746,754,762,772,and774oftheExportAdministrationRegulations(15CFRparts730–774)areamendedasfollows:PART730—[AMENDED]■1.Theauthoritycitationforpart730isrevisedtoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;10U.S.C.7420;10U.S.C.7430(e);22U.S.C.287c;22U.S.C.2151note;22U.S.C.3201etseq.;22U.S.C.6004;42U.S.C.2139a;15U.S.C.1824a;50U.S.C.4305;22U.S.C.7201etseq.;22U.S.C.7210;E.O.11912,41FR15825,3CFR,1976Comp.,p.114;E.O.12002,42FR35623,3CFR,1977Comp.,p.133;E.O.12058,43FR20947,3CFR,1978Comp.,p.179;E.O.12214,45FR29783,3CFR,1980Comp.,p.256;E.O.12851,58FR33181,3CFR,1993Comp.,p.608;E.O.12854,58FR36587,3CFR,1993Comp.,p.179;E.O.12918,59FR28205,3CFR,1994Comp.,p.899;E.O.12938,59FR59099,3CFR,1994Comp.,p.950;E.O.12947,60FR5079,3CFR,1995Comp.,p.356;E.O.12981,60FR62981,3CFR,1995Comp.,p.419;E.O.13020,61FR54079,3CFR,1996Comp.,p.219;E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13099,63FR45167,3CFR,1998Comp.,p.208;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;E.O.13224,66FR49079,3CFR,2001Comp.,p.786;E.O.13338,69FR26751,3CFR,2004Comp.,p168;E.O.13637,78FR16129,3CFR,2014Comp.,p.223;NoticeofMay6,2015,80FR26815(May8,2015);NoticeofAugust7,2015,80FR48233(August11,2015);NoticeofSeptember18,2015,80FR57281(September22,2015);NoticeofNovember12,2015,80FR70667(November13,2015);NoticeofJanuary20,2016,81FR3937(January22,2016).SupplementNo.1toPart730—[Amended]■2.SupplementNo.1topart730isamendedbyrevisingtheentriesforCollectionnumber‘‘0694–0137’’andCollectionnumber‘‘0607–0152’’toreadasfollows:


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NoticeofNovember12,2015,80FR70667(November13,2015);NoticeofJanuary20,2016,81FR3937(January22,2016).■8.In§744.7,reviseparagraphs(b)(3)(i)and(ii)toreadasfollows:§744.7Restrictionsoncertainexportstoandfortheuseofcertainforeignvesselsoraircraft.(b)(3)(i)Fuel,includingcrudeoil,petroleumproductsotherthancrudeoilthatareofnon-NavalPetroleumReservesoriginorderivation(see§754.3oftheEAR),andblendsofcrudeoilwithsuchpetroleumproducts;(ii)Deck,engine,andstewarddepartmentstores,provisions,andsuppliesforbothportandvoyagerequirements,providedthatanypetroleumproductsotherthancrudeoilwhicharelistedinSupplementNo.1topart754oftheEARareofnon-NavalPetroleumReservesoriginorderivation(see§754.3oftheEAR);PART746—[AMENDED]■9.Theauthoritycitationforpart746continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;22U.S.C.287c;Sec1503,Pub.L.108–11,117Stat.559;22U.S.C.6004;22U.S.C.7201etseq.;22U.S.C.7210;E.O.12854,58FR36587,3CFR,1993Comp.,p.614;E.O.12918,59FR28205,3CFR,1994Comp.,p.899;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;E.O.13338,69FR26751,3CFR,2004Comp.,p168;PresidentialDetermination2003–23,68FR26459,3CFR,2004Comp.,p.320;PresidentialDetermination2007–7,72FR1899,3CFR,2006Comp.,p.325;NoticeofMay6,2015,80FR26815(May8,2015);NoticeofAugust7,2015,80FR48233(August11,2015).§746.7 [Amended]■10.In§746.7,remove‘‘1C981,’’whereitappearsinparagraph(a)(1).PART754—[AMENDED]■11.Theauthoritycitationforpart754isrevisedtoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;10U.S.C.7420;10U.S.C.7430(e);15U.S.C.1824a;E.O.11912,41FR15825,3CFR,1976Comp.,p.114;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;NoticeofAugust7,2015,80FR48233(August11,2015).§754.1 [Amended]■12.Section754.1isamendedbyremovingandreservingparagraph(b)(1)(i).§754.2 [Removed]■13.Section754.2isremovedandreserved.■14.InSupplementNo.1topart754,revisethefirstsentenceintheintroductorytexttoreadasfollows:SupplementNo.1toPart754—CrudePetroleumandPetroleumProductsThisSupplementprovidesrelevantScheduleBnumbersandcommoditydescriptionsforcrudeoil(EAR99)andforpetroleumproductsotherthancrudeoilthatarecontrolledbyECCN1C980,1C982,1C983,or1C984


SupplementNo.3toPart754—[RemovedandReserved]■15.SupplementNo.3topart754isremovedandreserved.PART762—[AMENDED]■16.Theauthoritycitationforpart762continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;NoticeofAugust7,2015,80FR48233(August11,2015).§762.2 [Amended]■17.Section762.2isamendedbyremovingandreservingparagraph(b)(39).PART772—[AMENDED]■18.Theauthoritycitationforpart772continuestoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;NoticeofAugust7,2015,80FR48233(August11,2015).■19.Section772.1isamendedbyaddinginalphabeticalorderadefinitionforcrudeoiltoreadasfollows:§772.1DefinitionsoftermsasusedintheExportAdministrationRegulations(EAR).Crudeoil.Amixtureofhydrocarbonsthatexistedinliquidphaseinundergroundreservoirs,remainsliquidatatmosphericpressure(afterpassingthroughsurfaceseparatingfacilities),andhasnotbeenprocessedthroughacrudeoildistillationtower.Crudeoilincludesreconstitutedcrudepetroleum,leasecondensate,andliquidhydrocarbonsproducedfromtarsands,gilsonite,andoilshale.Dripgasesarealsoincluded,buttoppedcrudeoil,residualoil,andotherfinishedandunfinishedoilsareexcluded.*****PART774—[AMENDED]■20.Theauthoritycitationforpart774isrevisedtoreadasfollows:Authority:50U.S.C.4601etseq.;50U.S.C.1701etseq.;10U.S.C.7420;10U.S.C.7430(e);22U.S.C.287c,22U.S.C.3201etseq.;22U.S.C.6004;42U.S.C.2139a;15U.S.C.1824a;50U.S.C.4305;22U.S.C.7201etseq.;22U.S.C.7210;E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;NoticeofAugust7,2015,80FR48233(August11,2015).SupplementNo.1toPart774—[Amended]■21.InSupplementNo.1toPart774(theCommerceControlList),ECCN1C981isremoved.Dated:May5,2016.EricL.Hirschhorn,UnderSecretaryforIndustryandSecurity.[FRDoc.2016–11047Filed5–11–16;8:45am]BILLINGCODE3510–33–PDEPARTMENTOFJUSTICEDrugEnforcementAdministration21CFRPart1308[DocketNo.DEA–435]SchedulesofControlledSubstances:PlacementofBrivaracetamIntoScheduleVAGENCY:DrugEnforcementAdministration,DepartmentofJustice.ACTION:Interimfinalrule,withrequestforcomments.


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SUMMARY:TheDrugEnforcementAdministrationisplacingthesubstancebrivaracetam((2S)-2-[(4R)-2-oxo-4-propylpyrrolidin-1-yl]butanamide)(alsoreferredtoasBRV;UCB–34714;Briviact)(includingitssalts)intoscheduleVoftheControlledSubstancesAct.ThisschedulingactionispursuanttotheControlledSubstancesAct,asrevisedbytheImprovingRegulatoryTransparencyforNewMedicalTherapiesActwhichwassignedintolawonNovember25,2015.DATES:TheeffectivedateofthisrulemakingisMay12,2016.Interestedpersonsmayfilewrittencommentsonthisrulemakinginaccordancewith21CFR1308.43(g).Electroniccommentsmustbesubmitted,andwrittencommentsmustbepostmarked,onorbeforeJune13,2016.CommentersshouldbeawarethattheelectronicFederalDocketManagementSystemwillnotacceptcommentsafter11:59p.m.EasternTimeonthelastdayofthecommentperiod.Interestedpersons,definedat21CFR1300.01asthose‘‘adverselyaffectedoraggrievedbyanyruleorproposedruleissuablepursuanttosection201oftheAct(21U.S.C.811),’’mayfilearequestforhearingorwaiverofhearingpursuantto21CFR1308.44.RequestsforhearingandwaiversofanopportunityforahearingortoparticipateinahearingmustbereceivedonorbeforeJune13,2016.ADDRESSES:Toensureproperhandlingofcomments,pleasereference‘‘DocketNo.DEA–435’’onallcorrespondence,includinganyattachments.•Electroniccomments:TheDrugEnforcementAdministrationencouragesthatallcommentsbesubmittedelectronicallythroughtheFederaleRulemakingPortal,whichprovidestheabilitytotypeshortcommentsdirectlyintothecommentfieldontheWebpageorattachafileforlengthiercomments.Pleasegotohttp://www.regulations.govandfollowtheonlineinstructionsatthatsiteforsubmittingcomments.Uponcompletionofyoursubmission,youwillreceiveaCommentTrackingNumberforyourcomment.PleasebeawarethatsubmittedcommentsarenotinstantaneouslyavailableforpublicviewonRegulations.gov.IfyouhavereceivedaCommentTrackingNumber,yourcommenthasbeensuccessfullysubmittedandthereisnoneedtoresubmitthesamecomment.•Papercomments:Papercommentsthatduplicatetheelectronicsubmissionarenotnecessaryandarediscouraged.Shouldyouwishtomailapapercommentinlieuofanelectroniccomment,itshouldbesentviaregularorexpressmailto:DrugEnforcementAdministration,Attn:DEAFederalRegisterRepresentative/ODW,8701MorrissetteDrive,Springfield,VA22152.•Hearingrequests:Allrequestsforhearingandwaiversofparticipationmustbesentto:DrugEnforcementAdministration,Attn:Administrator,8701MorrissetteDrive,Springfield,Virginia22152.Allrequestsforhearingandwaivers


ofparticipationshouldalsobesentto:(1)DrugEnforcementAdministration,Attn:HearingClerk/LJ,8701MorrissetteDrive,Springfield,Virginia22152;and(2)DrugEnforcementAdministration,Attn:DEAFederalRegisterRepresentative/ODW,8701MorrissetteDrive,Springfield,Virginia22152.Telephone:(202)598–6812.SUPPLEMENTARYINFORMATION:PostingofPublicCommentsPleasenotethatallcommentsreceivedareconsideredpartofthepublicrecord.Theywill,unlessreasonablecauseisgiven,bemadeavailablebytheDrugEnforcementAdministration(DEA)forpublicinspectiononlineathttp://www.regulations.gov.Suchinformationincludespersonalidentifyinginformation(suchasyourname,address,etc.)voluntarilysubmittedbythecommenter.TheFreedomofInformationAct(FOIA)appliestoallcommentsreceived.Ifyouwanttosubmitpersonalidentifyinginformation(suchasyourname,address,etc.)aspartofyourcomment,butdonotwantittobemadepubliclyavailable,youmustincludethephrase‘‘PERSONALIDENTIFYINGINFORMATION’’inthefirstparagraphofyourcomment.Youmustalsoplaceallofthepersonalidentifyinginformationyoudonotwantmadepubliclyavailableinthefirstparagraphofyourcommentandidentifywhatinformationyouwantredacted.Ifyouwanttosubmitconfidentialbusinessinformationaspartofyourcomment,butdonotwantittobemadepubliclyavailable,youmustincludethephrase‘‘CONFIDENTIALBUSINESSINFORMATION’’inthefirstparagraphofyourcomment.Youmustalsoprominentlyidentifytheconfidentialbusinessinformationtoberedactedwithinthecomment.Commentscontainingpersonalidentifyinginformationandconfidentialbusinessinformationidentifiedasdirectedabovewillgenerallybemadepubliclyavailableinredactedform.Ifacommenthassomuchconfidentialbusinessinformationorpersonalidentifyinginformationthatitcannotbeeffectivelyredacted,allorpartofthatcommentmaynotbemadepubliclyavailable.Commentspostedtohttp://www.regulations.govmayincludeanypersonalidentifyinginformation(suchasname,address,andphonenumber)includedinthetextofyourelectronicsubmissionthatisnotidentifiedasdirectedaboveasconfidential.Anelectroniccopyofthisdocumentandsupplementalinformation,includingthecompleteDepartmentofHealthandHumanServicesandDrugEnforcementAdministrationeight-factoranalyses,tothisinterimfinalruleareavailableathttp://www.regulations.govforeasyreference.RequestforHearing,NoticeofAppearanceatHearing,orWaiverofParticipationinHearingPursuantto21U.S.C.811(a),thisactionisaformalrulemaking‘‘ontherecordafteropportunityforahearing.’’SuchproceedingsareconductedpursuanttotheprovisionsoftheAdministrativeProcedureAct(APA),5U.S.C.551–559.21CFR1308.41–1308.45;21CFRpart1316,subpartD.Inaccordancewith21CFR1308.44(a)–

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60-Day Notice of Proposed Information Collection: Technology Security/

Clearance Plans, Screening Records, and Non-Disclosure Agreements

ACTION:Noticeofrequestforpubliccomment.SUMMARY:TheDepartmentofStateisseekingOfficeofManagementandBudget(OMB)approvalfortheinformationcollectiondescribedbelow.InaccordancewiththePaperworkReductionActof1995,wearerequestingcommentsonthiscollectionfromallinterestedindividualsandorganizations.Thepurposeofthisnoticeistoallow60daysforpubliccommentprecedingsubmissionofthecollectiontoOMB.DATES:TheDepartmentwillacceptcommentsfromthepublicuptoJuly18,2016.ADDRESSES:Youmaysubmitcommentsbyanyofthefollowingmethods:•Web:PersonswithaccesstotheInternetmaycommentonthisnoticebygoingtowww.Regulations.gov.Youcansearchforthedocumentbyentering‘‘DocketNumber:DOS–2016–0027’’intheSearchfield.Thenclickthe‘‘CommentNow’’buttonandcompletethecommentform.•Email:[email protected].•RegularMail:Sendwrittencommentsto:PM/DDTC,SA–1,12thFloor,DirectorateofDefenseTradeControls,BureauofPolitical-MilitaryAffairs,U.S.DepartmentofState,Washington,DC20522–0112.YoumustincludetheDSformnumber(ifapplicable),informationcollectiontitle,andtheOMBcontrolnumberinanycorrespondence.FORFURTHERINFORMATIONCONTACT:Directrequestsforadditionalinformationregardingthecollectionlistedinthisnoticeto:SteveDerscheid—PM/DDTC,SA–1,12thFloor,DirectorateofDefenseTradeControls,BureauofPolitical–MilitaryAffairs,U.S.DepartmentofState,Washington,DC20522–0112,whomaybereachedviaemailatDerscheidSA@state.gov.SUPPLEMENTARYINFORMATION:•TitleofInformationCollection:TechnologySecurity/ClearancePlans,ScreeningRecords,andNon-DisclosureAgreementsPursuantto22CFR126.18(c)(2).


•OMBControlNumber:1405–0195.•TypeofRequest:ExtensionofCurrentlyApprovedCollection.•OriginatingOffice:BureauofPolitical-MilitaryAffairs,DirectorateofDefenseTradeControls(PM/DDTC).•FormNumber:Noform.•Respondents:BusinessandNonprofitOrganizations.•EstimatedNumberofRespondents:10,000.•EstimatedNumberofResponses:10,000.•AverageTimeperResponse:10hours.•TotalEstimatedBurdenTime:100,000hours.•Frequency:Onoccasion.•ObligationtoRespond:Mandatory.WearesolicitingpubliccommentstopermittheDepartmentto:•EvaluatewhethertheproposedinformationcollectionisnecessaryfortheproperfunctionsoftheDepartment.•Evaluatetheaccuracyofourestimateofthetimeandcostburdenforthisproposedcollection,includingthevalidityofthemethodologyandassumptionsused.•Enhancethequality,utility,andclarityoftheinformationtobecollected.•Minimizethereportingburdenonthosewhoaretorespond,includingtheuseofautomatedcollectiontechniquesorotherformsofinformationtechnology.PleasenotethatcommentssubmittedinresponsetothisNoticearepublicrecord.Beforeincludinganydetailedpersonalinformation,youshouldbeawarethatyourcommentsassubmitted,includingyourpersonalinformation,willbeavailableforpublicreview.AbstractofProposedCollection:Theexport,temporaryimport,andbrokeringofdefensearticles,defenseservices,andrelatedtechnicaldataarelicensedbytheDirectorateofDefenseTradeControls(DDTC)inaccordancewiththeInternationalTrafficinArmsRegulations(‘‘ITAR,’’22CFRparts120–130)andsection38oftheArmsExportControlAct.ITAR§126.18eliminates,subjecttocertainconditions,therequirementforanapprovalbyDDTCofthetransferofunclassifieddefensearticles,whichincludestechnicaldata,toorwithinaforeignbusinessentity,foreign


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governmentalentity,orinternationalorganizationthatisanauthorizedend-userorconsignee(includingtransferstoapprovedsub-licensees)fordefensearticles,includingthetransfertodualnationalsorthird-countrynationalswhoarebonafideregularemployeesdirectlyemployedbytheforeignconsigneeorend-user.TouseITAR§126.18,effectiveproceduresmustbeinplacetopreventdiversiontoanydestination,entity,orforpurposesotherthanthoseauthorizedbytheapplicableexportlicenseorotherauthorization.Thoseconditionscanbemetbyrequiringasecurityclearanceapprovedbythehostnationgovernmentforitsemployees,ortheend-userorconsigneehaveinplaceaprocesstoscreenallitsemployeesandtohaveexecutedaNon-DisclosureAgreementthatprovidesassurancesthattheemployeewillnottransferanydefensearticlestopersonsorentitiesunlessspecificallyauthorizedbytheconsigneeorend-user.ITAR§126.18(c)(2)alsoprovidesthatthetechnologysecurity/clearanceplansandscreeningrecordsshallbemadeavailabletoDDTCoritsagentsforlawenforcementpurposesuponrequest.MethodologyWheninformationkeptonfilepursuanttothisrecordkeepingrequirementisrequiredtobesenttotheDirectorateofDefenseTradeControls,itmaybesentelectronicallyorbymailaccordingtoguidancegivenbyDDTC.Dated:May11,2016.LisaAguirre,ManagingDirector,DirectorateofDefenseTradeControls,DepartmentofState.[FRDoc.2016–11620Filed5–16–16;8:45am]BILLINGCODE4710–25–PDEPARTMENTOFSTATE[PublicNotice:9564]60-DayNoticeofProposedInformationCollection:U.S.PassportRenewalApplicationforEligibleIndividualsACTION:Noticeofrequestforpubliccomment.

SUMMARY:TheDepartmentofStateisseekingOfficeofManagementandBudget(OMB)approvalfortheinformationcollectiondescribedbelow.InaccordancewiththePaperworkReductionActof1995,wearerequestingcommentsonthiscollectionfromallinterestedindividualsandorganizations.Thepurposeofthisnoticeistoallow60daysforpubliccommentprecedingsubmissionofthecollectiontoOMB.DATES:TheDepartmentwillacceptcommentsfromthepublicuptoJuly18,2016.ADDRESSES:Youmaysubmitcommentsbyanyofthefollowingmethods:•Web:PersonswithaccesstotheInternetmaycommentonthisnoticebygoingtowww.Regulations.gov.Youcansearchforthedocumentbyentering‘‘DocketNumber:DOS–2016–0025’’in

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