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Federal Register / Vol Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Rules and Regulations 83793 DEPARTMENT OF COMMERCE Administration Regulations (EAR) by license. All of the one hundred and two adding the new ‘military end user’ list entities added to the MEU List in Bureau of Industry and Security as supplement no. 7 to part 744— today’s final rule are ‘military end users’ Military End User (MEU) List. This final within the definition of § 744.21(g), and 15 CFR Parts 744 and 756 rule also adds the first tranche of were thus already subject to the [Docket No. 201215–0344] entities to this new list. This final rule ‘military end use’ and ‘military end will add one hundred and two ‘military user’ requirements under § 744.21. Prior RIN 0694–AI34 end users’ to the MEU List consisting of to this final rule, exporters, reexporters, fifty-seven military end users in China or transferors were responsible for Addition of ‘Military End User’ (MEU) and forty-five in Russia. These entities identifying these entities as ‘military List to the Export Administration have been determined by the U.S. end users’ themselves, assuming they Regulations and Addition of Entities to Government to be ‘military end users,’ were not otherwise individually the MEU List and therefore exports, reexports, or informed pursuant to the ‘is informed’ AGENCY: Bureau of Industry and transfers (in-country) of the designated process under § 744.21(b). Exporters, Security, Commerce. items to these parties are exports, reexporters, or transferors will still be ACTION: Final rule. reexports or transfers (in-country) to the responsible for ensuring their national armed services (army, navy, transactions are in compliance with the SUMMARY: In this final rule, the Bureau marine, air force, or coast guard), the license requirements set forth in of Industry and Security (BIS) amends national guard, the national police, § 744.21 because BIS cannot list every the Export Administration Regulations government intelligence or ‘military end user’ or party representing (EAR) by adding a new ‘Military End reconnaissance organizations, or a a risk of diversion thereto in the MEU User’ (MEU) List that includes the first person or entity whose actions or List, or identify all situations which tranche of entities. The U.S. functions are intended to support could lead to an item being used for a Government has determined that these ‘military end-uses’ as defined in ‘military end use.’ The determinations entities are ‘military end users’ for § 744.21(f). that certain entities are ‘military end purposes of the ‘military end user’ Section 744.21(a) sets forth a license users’ are only relevant to the stated control in the EAR that applies to requirement to exports, reexports, or EAR controls and do not apply to specified items for exports, reexports, or transfers (in-country) identified in exports, reexports, or transfers subject to transfers (in-country) to the People’s supplement no. 2 to part 744 to China, International Traffic in Arms Republic of China (China), Russia, and Russia, and Venezuela, when the Regulations (ITAR) or other controls. Venezuela when such items are exporter, reexporter, or transferor has The addition of the new MEU list and destined for a ‘military end user.’ The ‘‘knowledge’’ that the item is destined this first tranche of one hundred and existing ‘military end-use’ and ‘military for a ‘military end use’ (as defined in two entities is also responsive to end user’ controls under the EAR, § 744.21(f)) or ‘military end user’ (as requests received from the public and including BIS’s authority to inform the defined in § 744.21(g)). Additionally, draws upon decisions made by BIS in public of a license requirement for an pursuant to § 744.21(b), BIS may inform reviewing license applications under item due to an unacceptable risk of persons that a license is required for the § 744.21. Specifically, exporters, diversion to a ‘military end user’ via export, reexport, or transfer (in-country) reexporters, or transferors requested in amendment to the EAR, are essential for of any item because there is an numerous advisory opinions received protecting U.S. national security unacceptable risk of use in or diversion by BIS on the application of § 744.21 interests. The addition of the new MEU to such an end use or end user. With the since April 28, 2020, as well as from List via amendment to the EAR and this creation of the MEU List described BIS’s TACs, that BIS identify ‘military first tranche of entities is also below, BIS ‘is informing’ exporters, end users’ by name and address in the responsive to requests received from the reexporters, and transferors that a regulations, where possible, to facilitate public. This final rule will add one license will be required to export, compliance. For example, BIS has hundred and two ‘military end users’ to reexport, or transfer (in-country) any received over 80 advisory opinions and the MEU List consisting of fifty-seven item described in supplement no. 2 to emailed requests for guidance on the under China and forty-five under part 744 to these ‘military end users’ April 28 MEU rule, including requests Russia. However, the establishment of that will be identified on the new MEU asking whether 34 specific entities are the MEU List does not imply that other List. considered ‘military end users’ for This rule does not change the scope parties, not included on the list, are not purposes of § 744.21. In addition, since of § 744.21. The addition of the new subject to the ‘military end-use’ and the revisions to the MEU provisions MEU List in supplement no. 7 to part ‘military end user’ controls under the became effective on June 29, 2020 (the 744 and this initial tranche of one EAR. date the April 28, 2020 final rule (85 FR hundred and two ‘military end users’ is 23459) that expanded the ‘military end- DATES: This rule is effective December part of the § 744.21(b) ‘is informed’ use’ and ‘military end-user’ control 23, 2020. process and does not imply that other under § 744.21), there have been several FOR FURTHER INFORMATION CONTACT: parties, not included on the list, are not hundred license applications filed Eileen Albanese, Director, Office of subject to the prohibition in § 744.21(a). under § 744.21 (MEU license National Security and Technology Adding the new MEU List via an applications). Transfer Controls, Bureau of Industry amendment to the EAR is an effective BIS interacts with various exporters, and Security, Department of Commerce, way for BIS to inform all potential reexporters, or transferors who may Phone: (202) 482–0092 or Email: exporters, reexporters, and transferors provide information on potential [email protected]. that all exports, reexports, or transfers ‘military end users’ in license SUPPLEMENTARY INFORMATION: (in-country) of designated items to these applications or requests for advisory entities represent an unacceptable risk opinions submitted to BIS, as well as Background of use in or diversion to a ‘military end the additional information resources In this rule, the Bureau of Industry use’ or a ‘military end user’ for purposes available to the U.S. Government; and Security (BIS) amends the Export of § 744.21, and therefore require a therefore, as specified in § 744.21(b), VerDate Sep<11>2014 16:31 Dec 22, 2020 Jkt 253001 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 E:\FR\FM\23DER1.SGM 23DER1 jbell on DSKJLSW7X2PROD with RULES 83794 Federal Register / Vol. 85, No. 247 / Wednesday, December 23, 2020 / Rules and Regulations when BIS identifies an entity as a EAR Changes To Add MEU List required to export, reexport, or transfer ‘military end user,’ it may use the ‘is In § 744.21 (Restrictions on certain (in-country) any item listed in informed’ process to publish Federal ‘military end use’ or ‘military end user’ supplement no. 2 to part 744 to entities Register notices adding these ‘military in the People’s Republic of China, identified on the MEU List, which is in end users’ to the new MEU List under Russia, or Venezuela), this final rule addition to the license requirement supplement no. 7 to part 744. BIS agrees revises paragraph (b) (Additional applicable to such items intended for that identifying ‘military end users’ on prohibition on those informed by BIS) any ‘military end user’ or ‘military end the MEU List, where possible, will ease by adding a new paragraph (b)(1) use’ in China, Russia, or Venezuela the public’s compliance burden and (Military End-User’ (MEU) List). Under which are not on the MEU List, as make for a more effective ‘military end new paragraph (b)(1), this final rule described in § 744.21(a). BIS is use’ and ‘end user’ control under specifies that BIS may designate entities exercising its authority under § 744.21. subject to the additional prohibition § 744.21(b) to inform exporters, reexporters, and transferors that entities The issuance of a separate public list under paragraph (b) based on a on the MEU List are ‘military end users’ in the EAR identifying parties determination by the ERC that the entity for purposes of § 744.21, and thus previously listed in ‘is informed’ letters is a ‘military end user,’ and thus inform exports, reexports, or transfers (in or for whom licenses were denied due the public that those entities are subject country) of the specified items to those to their status as a ‘military end user’ to the license requirements under entities require a license because they under the EAR is desirable because paragraph (b). New paragraph (b)(1) represent an unacceptable risk of use in individual ‘is informed’ letters, specifies that these ‘military end users’ or diversion to a ‘military end use’ or licensing determinations for specific will be added to the MEU List in ‘military end user’ in China, Russia, or transactions, and BIS responses to supplement no.
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