Federal Register/Vol. 79, No. 151/Wednesday, August 6, 2014

Federal Register / Vol. 79, No. 151 / Wednesday, August 6, 2014 / Rules and Regulations 45675

Further, the Committee meeting was PART 945—IRISH POTATOES GROWN 3355, Email: [email protected]. For widely publicized throughout the Idaho- IN CERTAIN DESIGNATED COUNTIES emails, include ‘‘Russia’’ in the subject Eastern Oregon potato industry and all IN IDAHO, AND MALHEUR COUNTY, line. interested persons were invited to OREGON For the Entity List-related changes attend the meeting and participate in contact the Chair, End-User Review Committee deliberations. Like all ■ 1. The authority citation for 7 CFR Committee, Office of the Assistant Committee meetings, the April 22, 2014, part 945 continues to read as follows: Secretary, Export Administration, meeting was a public meeting and all Bureau of Industry and Security, entities, both large and small, were able Authority: 7 U.S.C. 601–674. Department of Commerce, Phone: (202) to express their views on this issue. § 945.341 [Amended] 482–5991, Fax: (202) 482–3911, Email: Finally, interested persons are invited to [email protected]. ■ submit comments on this interim rule, 2. In § 945.341(b)(3)(i) and (ii), remove SUPPLEMENTARY INFORMATION: the reference ‘‘(b)(4)(iii)’’ and add in its including the regulatory and Background informational impacts of this action on place the reference ‘‘(b)(3)(iii)’’. small businesses. ■ 3. In § 945.341(c)(2)(ii), remove the In this rule, the Bureau of Industry A small business guide on complying word ‘‘one-piece’’. and Security (BIS) amends the Export Administration Regulations (EAR) to with fruit, vegetable, and specialty crop Dated: July 31, 2014. impose additional sanctions marketing agreements and orders may Rex A. Barnes, implementing U.S. policy toward Russia be viewed at: http://www.ams.usda.gov/ Associate Administrator, Agricultural to address that country’s continuing MarketingOrdersSmallBusinessGuide. Marketing Service. policy of destabilization in Ukraine and Any questions about the compliance [FR Doc. 2014–18606 Filed 8–5–14; 8:45 am] continuing occupation of Crimea and guide should be sent to Jeffrey Smutny BILLING CODE P Sevastopol. Specifically, in this rule BIS at the previously mentioned address in adds one person to the Entity List. In the FOR FURTHER INFORMATION CONTACT addition, this rule imposes controls on section. DEPARTMENT OF COMMERCE certain items for use in Russia’s energy This rule invites comments on a sector intended for exploration or change to the container requirements Bureau of Industry and Security production from deepwater (greater than currently prescribed under the Idaho- 500 feet), Arctic offshore, or shale Eastern Oregon potato marketing order. 15 CFR Parts 732, 738, 740, 742, 744, projects that have the potential to Any comments received will be 746 and 774 produce oil or gas in Russia. considered prior to finalization of this [Docket No. 140729634–4638–01] rule. A. The Entity List After consideration of all relevant RIN 0694–AG25 The Entity List (Supplement No. 4 to material presented, including the Part 744) notifies the public about Committee’s recommendation, and Russian Oil Industry Sanctions and entities that have engaged in activities other information, it is found that this Addition of Person to the Entity List that could result in an increased risk of the diversion of exported, reexported or interim rule, as hereinafter set forth, AGENCY: Bureau of Industry and transferred (in-country) items to will tend to effectuate the declared Security, Commerce. policy of the Act. weapons of mass destruction (WMD) ACTION: Final rule. Pursuant to 5 U.S.C. 553, it is also programs, activities sanctioned by the State Department and activities contrary found and determined upon good cause SUMMARY: In this rule, the Bureau of to U.S. national security or foreign that it is impracticable, unnecessary, Industry and Security (BIS) amends the policy interests, including terrorism and and contrary to the public interest to Export Administration Regulations export control violations involving give preliminary notice prior to putting (EAR) by adding one person to the abuse of human rights. Certain exports, this rule into effect and that good cause Entity List. The person who is added to reexports, and transfers (in-country) to exists for not postponing the effective the Entity List is located in Russia and entities identified on the Entity List date of this rule until 30 days after has been determined by the U.S. require licenses from BIS and are publication in the Federal Register Government to be acting contrary to the usually subject to a policy of denial. The because: (1) Handlers are currently national security or foreign policy availability of license exceptions in shipping Idaho-Eastern Oregon potatoes; interests of the United States. This such transactions is very limited. The (2) this action relaxes current container person will be listed on the Entity List license review policy for each entity is requirements; (3) the Committee under the destination of Russia. identified in the license review policy unanimously recommended this change This rule also imposes controls on column on the Entity List and the at a public meeting and interested certain items for use in Russia’s energy availability of license exceptions is parties had an opportunity to provide sector intended for energy exploration noted in the Federal Register notices input; and (4) this rule provides a 60- or production from deepwater (greater adding persons to the Entity List. BIS day comment period and any comments than 500 feet), Arctic offshore, or shale places entities on the Entity List based received will be considered prior to projects. on certain sections of part 744 (Control finalization of this rule. DATES: Effective date: This rule is Policy: End-User and End-Use Based) of List of Subjects in 7 CFR Part 945 effective August 6, 2014. the EAR. FOR FURTHER INFORMATION CONTACT: For The End-User Review Committee Marketing agreements, Potatoes, the change to Russia licensing policy (ERC), composed of representatives of Reporting and recordkeeping contact Eileen Albanese, Director, Office the Departments of Commerce (Chair), requirements. of National Security and Technology State, Defense, Energy and, where For the reasons set forth in the Transfer Controls, Bureau of Industry appropriate, the Treasury, makes all preamble, 7 CFR part 945 is amended as and Security, Department of Commerce, decisions regarding additions to, follows: Phone: (202) 482–0092, Fax: (202) 482– removals from, or other modifications to

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the Entity List. The ERC makes all withdrawn, or otherwise dealt in: —OJSC United Shipbuilding decisions to add an entry to the Entity Persons operating in the defense or Corporation; and List by majority vote and all decisions related materiel sector in the Russian —United Shipbuilding Corporation to remove or modify an entry by Federation. Under Section 8 of the Joint Stock Company; and unanimous vote. The Departments Order, all agencies of the United States —OSK OAO. represented on the ERC approved this Government are directed to take all 90, Marata ul., St. Petersburg 191119, change to the Entity List. appropriate measures within their Russia; and 11, Sadovaya-Kudrinskaya Addition to the Entity List in This Rule authority to carry out the provisions of str., Moscow 123242, Russia. the Order. The Department of the B. Change to the license requirements This rule implements the decision of Treasury’s Office of Foreign Assets and review policy for Russia the ERC to add one person to the Entity Control, pursuant to Executive Order List on the basis of § 744.11 (License 13661, has designated the following This final rule makes the following requirements that apply to entities person: United Shipbuilding additional changes to the EAR to acting contrary to the national security Corporation. In conjunction with that implement changes to the license or foreign policy interests of the United designation, the Department of requirements and review policy for States) of the EAR. The entry added to Commerce adds to the Entity List under Russia. the Entity List consists of one person in this rule and imposes a license Russia. Section 732.3 Steps Regarding the Ten requirement for exports, reexports, or General Prohibitions The ERC reviewed § 744.11(b) transfers (in-country) to this blocked (Criteria for revising the Entity List) in person. This license requirement In paragraph (d)(4), this rule adds making the determination to add this implements an appropriate measure Russia to the list of countries that are person to the Entity List. Under that within the authority of the EAR to carry subject to other special controls paragraph, persons for whom there is out the provisions of Executive Order provisions. Specifically, this paragraph reasonable cause to believe, based on 13661. indicates that the Commerce Country specific and articulable facts, have been The person added to the Entity List in Chart in Supplement No. 1 to part 738 involved, are involved, or pose a this rule under Executive Order 13661 sets forth license requirements for significant risk of being or becoming operates in the Russian Federation’s Russia, and part 746 sets out additional involved in, activities that are contrary defense or related materiel sector. license requirements. In paragraph (i), to the national security or foreign policy United Shipbuilding Corporation is a this rule also adds a sentence interests of the United States and those Russian state-owned company that referencing § 746.5 for Russian Industry acting on behalf of such persons may be Sector Sanctions. added to the Entity List. The person manufactures, among other things, being added to the Entity List has been ordnance and accessories, and is Supplement No. 1 to Part 738— determined by the ERC to be involved engaged in shipbuilding, repair, and Commerce Country Chart maintenance. Therefore, pursuant to in activities that are contrary to the This rule adds a new footnote 6 § 744.11 of the EAR, the conduct of this national security or foreign policy designation for Russia to alert members person raises sufficient concern that interests of the United States. Those of the public to additional license prior review of exports, reexports, or activities are described in Executive requirements pursuant to § 746.5 transfers (in-country) of items subject to Order 13661 (79 FR 15533), Blocking Russian Industry Sector Sanctions for the EAR involving this person, and the Property of Additional Persons ECCNs 0A998, 1C992, 3A229, 3A231, possible imposition of license Contributing to the Situation in Ukraine, 3A232, 6A991, 8A992, and 8D999. issued by the President on March 16, conditions or license denials on 2014. This Order expanded the scope of shipments to these persons, will Section 740.2 Restrictions on All the national emergency declared in enhance BIS’s ability to protect the License Exceptions Executive Order 13660, finding that the foreign policy and national security This rule revises § 740.2(a)(6) by actions and policies of the Government interests of the United States. adding restrictions on license exception of the Russian Federation with respect For the person added to the Entity eligibility when a license is required to Ukraine—including the deployment List, there is a license requirement for under limited sanctions for specified of Russian Federation military forces in all items subject to the EAR and a countries, unless a license exception or Crimea (Occupied)—undermine license review policy of presumption of portion thereof is specifically listed in democratic processes and institutions in denial. The license requirements apply the license exceptions paragraph Ukraine; threaten its peace, security, to any transaction in which items are to pertaining to a particular sanctioned stability, sovereignty, and territorial be exported, reexported, or transferred country. Specifically, Russia (§ 746.5) is integrity; and contribute to the (in-country) to any of the persons or in added. This change clarifies restrictions misappropriation of its assets, and which such persons act as purchaser, for license exceptions that are not thereby constitute an unusual and intermediate consignee, ultimate specifically authorized to countries extraordinary threat to the national consignee, or end-user. In addition, no under limited sanctions in part 746, as security and foreign policy of the United license exceptions are available for well as implementing this restriction for States. exports, reexports, or transfers (in- the limited sanctions on Russia. Specifically, Executive Order 13661 country) to the person being added to includes a directive that all property the Entity List in this rule. Section 742.4 National Security and interests in property that are in the This final rule adds the following This rule removes Russia’s favorable United States, that hereafter come person to the Entity List: license review status under national within the United States, or that are or Russia security reasons for control in thereafter come within the possession or § 742.4(b)(5). In light of recent actions control of any United States person 1. United Shipbuilding Corporation, by Russia and the sanctions that the (including any foreign branch) of the a.k.a., the following four aliases: U.S. and other countries are placing on following persons are blocked and may —Obedinennaya Sudostroitelnaya Russia, this favorable license review not be transferred, paid, exported, Korporatsiya OAO; status is removed. As a result of this

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rule, Russia will no longer receive the (Special Purpose) in Supplement No. 1 under the Russian Industry Sector enhanced favorable licensing treatment to part 748. Sanctions, see § 746.5 of the EAR. previously afforded to Russia under ECCN 8D999 is added to the Supplement No. 2 to Part 746—Russian § 742.4(b)(5). Instead, the licensing Commerce Control List to control Industry Sector Sanctions List policy for Russia will be the general software specially designed for the licensing policy for countries in Country This rule adds Supplement No. 2 to operation of unmanned vessels used in Group D:1 as set forth in § 742.4(b)(2). Part 746 to a supplement that was the oil and gas industry of Russia. For Kazakhstan and Mongolia will continue previously reserved under the EAR. more information about the license to receive enhanced favorable licensing This new Supplement No. 2 identifies requirements and license review policy treatment under § 742.4(b)(5). items that are subject to the new § 746.5 under the Russian Industry Sector Sanctions, see § 746.5 of the EAR. Section 746.1 Introduction Russian Industry Sector Sanctions, in addition to the five ECCNs identified in No Savings Clause This rule redesignates paragraph (c) as that section. The items identified in new paragraph (d) and adds a new paragraph Supplement No. 2 are set forth as Given the foreign policy objective of (c) to explain where to find the Russian ‘‘Schedule B numbers.’’ A Schedule B this rule, there is no savings clause in Industry Sector Sanctions in part 746, as number is a 10-digit commodity this rule. Accordingly, shipments of well as where these sanctions are classification number administered by items removed from eligibility for a referenced in the EAR. the Census Bureau and is used for License Exception or export or reexport Section 746.5 Russian Industry Sector reporting foreign trade. The source for without a license (NLR) as a result of Sanctions the Schedule B numbers and this regulatory action that were en route aboard a carrier to a port of export or This rule adds new § 746.5 entitled descriptions in this list is the Bureau of the Census’s Schedule B concordance of reexport, on August 6, 2014, pursuant to Russian Industry Sector Sanctions. This actual orders for export or reexport to a section imposes controls on the export, exports 2014. Census’s Schedule B List 2014 can be found at http:// foreign destination, may not proceed to reexport or transfer (in-country) of any that destination under the previous item subject to the EAR listed in www.census.gov/foreign-trade/ schedules/b/2014/index.html. eligibility for a License Exception or Supplement No. 2 to this part and items export or reexport without a license specified in ECCNs 0A998, 1C992, Supplement No. 1 to Part 774— (NLR). 3A229, 3A231, 3A232, 6A991, 8A992, Commerce Control List and 8D999 when the exporter, Foreign Policy Report ECCNs 1C992, 3A229, 3A231, 3A232, reexporter or transferor knows or is The application of Russian Industry 6A991, and 8A992 are amended by informed that the item will be used Sector Sanctions controls to the items revising the License Requirements directly or indirectly in Russia’s energy covered by this rule imposes a foreign sections to add a license requirement sector for exploration or production policy control. Section 6(f) of the Export that applies to these ECCNs when from deepwater (greater than 500 feet), Administration Act requires that a destined to Russia pursuant to § 746.5 of Arctic offshore, or shale projects in report be delivered to Congress before the EAR. Russia that have the potential to imposing such controls. The report was produce oil or gas or is unable to ECCN 0A998 is added to control delivered to Congress on August 1, determine whether the item will be used specific oil and gas exploration items, 2014. in such projects in Russia. including software and data. Many U.S. Such items include, but are not companies are hired to provide or Export Administration Act limited to, drilling rigs, parts for analyze seismic or other types of data in Although the Export Administration horizontal drilling, drilling and order to assist in oil exploration. This Act expired on August 20, 2001, the completion equipment, subsea data does not come within the President, through Executive Order processing equipment, Arctic-capable definition of ‘‘technology,’’ as it does 13222 of August 17, 2001, 3 CFR, 2001 marine equipment, wireline and down not pertain to the development, Comp., p. 783 (2002), as amended by hole motors and equipment, drill pipe production or use of listed commodities Executive Order 13637 of March 8, and casing, software for hydraulic or software, and is not specific 2013, 78 FR 16129 (March 13, 2013) and fracturing, high pressure pumps, information necessary for any of the as extended by the Notice of August 8, seismicc acquisition equipment, following: Operation, installation, 2013, 78, 2013, 78 FR 49107 (August 12, remotely operated vehicles, maintenance, repair, overhaul, 2013), has continued the Export compressors, expanders, valves, and refurbishing, or other terms specified in Administration Regulations in effect risers. No license exceptions may ECCNs on the CCL that control under the International Emergency overcome the license requirements set technology. However, this data product Economic Powers Act. BIS continues to forth in § 746.5, except License obtained through the analysis of raw carry out the provisions of the Export Exception GOV § 740.11(b). seismic or other types of data is a Administration Act, as appropriate and The license review policy for all items commodity sold by companies. Such to the extent permitted by law, pursuant requiring a license for export to Russia data is now controlled under this new to Executive Order 13222 as amended is presumption of denial when there is entry. The Commerce Country Chart in by Executive Order 13637. potential for use directly or indirectly Supplement No. 1 to part 738 is not for exploration or production from designed to provide license Rulemaking Requirements deepwater (greater than 500 feet), Arctic requirements for this type of license 1. Executive Orders 13563 and 12866 offshore, or shale projects in Russia that requirement. In addition, BIS is making direct agencies to assess all costs and have the potential to produce oil. To an exception to its general policy of not benefits of available regulatory assist in the identification of such including software in A group ECCNs alternatives and, if regulation is license applications, this rule indicates and is including oil and gas exploration necessary, to select regulatory that license applications submitted to software in ECCN 0A998. For more approaches that maximize net benefits BIS under this section may include the precise information about the license (including potential economic, phrase ‘‘section 746.5’’ in Block 9 requirement and license review policy environmental, public health and safety

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effects, distributive impacts, and receive items without a license and to PART 732—[AMENDED] equity). Executive Order 13563 conduct activities contrary to the emphasizes the importance of national security or foreign policy ■ 1. The authority citation for 15 CFR quantifying both costs and benefits, of interests of the United States. In part 732 continues to read as follows: reducing costs, of harmonizing rules, addition, publishing a proposed rule Authority: 50 U.S.C. app. 2401 et seq.; 50 and of promoting flexibility. This rule would give this party notice of the U.S. U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, has been determined to be not Government’s intention to place the 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 significant for purposes of Executive person on the Entity List and would FR 44025, 3 CFR, 2001 Comp., p. 783; Notice Order 12866. create an incentive for this person to of August 8, 2013, 78 FR 49107 (August 12, 2013). 2. Notwithstanding any other either accelerate receiving items subject ■ provision of law, no person is required to the EAR to conduct activities that are 2. Section 732.3 is amended: ■ a. By revising paragraph (d)(4); and to respond to nor be subject to a penalty contrary to the national security or for failure to comply with a collection ■ b. By revising paragraph (i) foreign policy interests of the United introductory text to read as follows: of information, subject to the States, and/or to take steps to set up requirements of the Paperwork additional aliases, change addresses, § 732.3 Steps regarding the ten general Reduction Act of 1995 (44 U.S.C. 3501 and other measures to try to limit the prohibitions. et seq.) (PRA), unless that collection of impact of the listing on the Entity List * * * * * information displays a currently valid once a final rule was published. In (d) * * * Office of Management and Budget addition, U.S. national security and (4) Destinations subject to embargo (OMB) Control Number. This regulation foreign policy also would be and other special controls provisions. involves collections previously undermined by not immediately The Country Chart does not apply to approved by OMB under control restricting the export, reexport or Cuba, Iran, North Korea, and Syria. For number 0694–0088, Simplified Network transfer (in-country) of certain items those countries you should review the Application Processing System, which related to the energy sector in Russia. provisions at part 746 of the EAR and includes, among other things, license Further, no other law requires that a may skip this step concerning the applications and carries a burden Country Chart. For Iraq and Russia, the estimate of 43.8 minutes for a manual or notice of proposed rulemaking and an opportunity for public comment be Country Chart provides for certain electronic submission. license requirements, and part 746 of Total burden hours associated with given for this rule. Because a notice of the EAR provides additional the PRA and OMB control number proposed rulemaking and an requirements. 0694–0088 are not expected to increase opportunity for public comment are not as a result of this rule. You may send required to be given for this rule by 5 * * * * * comments regarding the collection of U.S.C. 553, or by any other law, the (i) Step 14: Embargoed countries and information associated with this rule, analytical requirements of the special destinations. If your destination including suggestions for reducing the Regulatory Flexibility Act, 5 U.S.C. 601 for any item is Cuba, Iran, Iraq, North burden, to Jasmeet K. Seehra, Office of et seq., are not applicable. Accordingly, Korea, or Syria, you must consider the Management and Budget (OMB), by no regulatory flexibility analysis is requirements of parts 742 and 746 of the email to Jasmeet_K._Seehra@ required and none has been prepared. EAR. Unless otherwise indicated, General Prohibition Six (Embargo) omb.eop.gov, or by fax to (202) 395– List of Subjects 7285. applies to all items subject to the EAR, 3. This rule does not contain policies 15 CFR Parts 732 and 740 i.e. both items on the CCL and within with Federalism implications as that EAR99. See § 746.1(b) for destinations term is defined in Executive Order Administrative practice and subject to limited sanctions under 13132. procedure, Exports, Reporting and United Nations Security Council arms 4. The provisions of the recordkeeping requirements. embargoes. See § 746.5 for Russian Administrative Procedure Act (5 U.S.C. Industry Sector Sanctions. You may not 15 CFR Part 738 553) requiring notice of proposed make an export or reexport contrary to rulemaking, the opportunity for public Exports. the provisions of part 746 of the EAR comment and a delay in effective date without a license unless: are inapplicable because this regulation 15 CFR Part 742 * * * * * involves a military or foreign affairs function of the United States. (See 5 Exports, Terrorism. PART 738—[AMENDED] U.S.C. 553(a)(1)). BIS implements this 15 CFR Part 744 ■ rule to advance U.S. policy toward 3. The authority citation for 15 CFR Russia and therefore protect U.S. Exports, Reporting and recordkeeping part 738 continues to read as follows: national security or foreign policy requirements, Terrorism. Authority: 50 U.S.C. app. 2401 et seq.; 50 interests by preventing items from being U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 15 CFR Part 746 exported, reexported, or transferred (in 7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); country) to the person being added to Exports, Reporting and recordkeeping the Entity List, and for use in Russia’s 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. requirements. 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 energy sector intended for exploration 15 CFR Part 774 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. or production from deepwater (greater 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. than 500 feet), Arctic offshore, or shale Exports, Reporting and recordkeeping 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 projects that have the potential to requirements. Comp., p. 783; Notice of August 8, 2013, 78 produce oil. If this rule were delayed to FR 49107 (August 12, 2013). allow for notice and comment and a Accordingly, parts 732, 738, 740, 742, ■ 4. Supplement No. 1 to part 738 is delay in effective date, then the entity 744, 746 and 774 of the Export amended by: being added to the Entity List by this Administration Regulations (15 CFR ■ a. Adding footnote designation ‘‘6’’ to action would continue to be able to parts 730–774) are amended as follows: ‘‘Russia’’; and

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■ b. Adding footnote 6 to read as portion thereof is specifically listed in favorable consideration licensing follows: the license exceptions paragraph treatment. pertaining to a particular sanctioned Supplement No. 1 to Part 738— * * * * * country in part 746 of the EAR. Commerce Country Chart * * * * * PART 744—[AMENDED] * * * * * 6 See § 746.5 for additional license PART 742—[AMENDED] ■ 9. The authority citation for 15 CFR requirements under the Russian part 744 continues to read as follows: Industry Sector Sanctions for ECCNs ■ 7. The authority citation for 15 CFR 0A998, 1C992, 3A229, 3A231, 3A232, part 742 continues 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.; 6A991, 8A992, and 8D999. Authority: 50 U.S.C. app. 2401 et seq.; 50 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, PART 740—[AMENDED] 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 ■ 5. The authority citation for 15 CFR Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. part 740 continues to read as follows: 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. Authority: 50 U.S.C. app. 2401 et seq.; 50 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. Comp., p. 228; E.O. 13099, 63 FR 45167, 3 E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential Determination 44025, 3 CFR, 2001 Comp., p. 783; E.O. Comp., p. 783; Notice of August 8, 2013, 78 2003–23 of May 7, 2003, 68 FR 26459, May 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. FR 49107 (August 12, 2013). 16, 2003; Notice of August 8, 2013, 78 FR 786; Notice of August 8, 2013, 78 FR 49107 ■ 6. Section 740.2 is amended by 49107 (August 12, 2013); Notice of November (August 12, 2013); Notice of September 18, revising paragraph (a)(6) to read as 7, 2013, 78 FR 67289 (November 12, 2013). 2013, 78 FR 58151 (September 20, 2013); Notice of November 7, 2013, 78 FR 67289 ■ follows: 8. Section 742.4(b)(5) is amended to (November 12, 2013); Notice of January 21, read as follows: § 740.2 Restrictions on all license 2014, 79 FR 3721 (January 22, 2014). exceptions. § 742.4 National security. ■ 10. Supplement No. 4 to part 744 is (a) * * * * * * * * amended by adding under Russia, in (6) The export or reexport is to a (b) * * * alphabetical order, one Russian entity. sanctioned destination (Cuba, Iran, (5) In recognition of efforts made to The addition reads as follows: North Korea, and Syria) or a license is adopt safeguard measures for exports required based on a limited sanction and reexports, Kazakhstan and Supplement No. 4 to Part 744—Entity (Russia) unless a license exception or Mongolia are accorded enhanced List

License Federal Register Country Entity License requirement review policy citation

******* Russia

******* United Shipbuilding Corporation, a.k.a., For all items subject to Presumption of denial ...... 79 FR [INSERT FR PAGE the following four aliases: the EAR. (See § 744.11 NUMBER] 8/6/14 —Obedinennaya Sudostroitelnaya of the EAR). Korporatsiya OAO; and —OJSC United Shipbuilding Cor- poration; and —United Shipbuilding Corporation Joint Stock Company; and —OSK OAO. 90, Marata ul., St. Petersburg 191119, Russia; and 11, Sadovaya- Kudrinskaya str., Moscow 123242, Russia.

*******

PART 746—[AMENDED] 26751, 3 CFR, 2004 Comp., p 168; § 746.1 Introduction. Presidential Determination 2003–23 of May * * * * * ■ 11. The authority citation for 15 CFR 7, 2003, 68 FR 26459, May 16, 2003; part 746 continues to read as follows: Presidential Determination 2007–7 of (c) Russian Industry Sector Sanctions. December 7, 2006, 72 FR 1899 (January 16, The Russian Industry Sector Sanctions Authority: 50 U.S.C. app. 2401 et seq.; 50 2007); Notice of August 8, 2013, 78 FR 49107 U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, are set forth under § 746.5 and (August 12, 2013); Notice of May 7, 2014, 79 referenced under the License Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004; FR 26589 (May 9, 2014). 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. Requirements section of certain Export ■ 12. Section 746.1 is amended by 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. Control Classification Numbers (ECCNs) redesignating paragraph (c) as (d) and 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 in Supplement No. 1 to part 774 adding a new paragraph (c) to read as Comp., p. 899; E.O. 13222, 66 FR 44025, 3 (Commerce Control List), as well as in CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR follows.

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a footnote to the Commerce Country expanders, valves, and risers. You country) of any item that requires a Chart in Supplement No. 1 to part 738. should be aware that other provisions of license for Russia will be reviewed with * * * * * the EAR, including parts 742 and 744, a presumption of denial when for use ■ 13. Add § 746.5 to read as follows: also apply to exports and reexports to directly or indirectly for exploration or Russia. License applications submitted production from deepwater (greater than § 746.5 Russian Industry Sector to BIS under this section may include 500 feet), Arctic offshore, or shale Sanctions. the phrase ‘‘section 746.5’’ in Block 9 projects in Russia that have the (a) License requirements. (1) General (Special Purpose) in Supplement No. 1 potential to produce oil. prohibition. As authorized by Section 6 to part 748. (c) License exceptions. No license of the Export Administration Act of (2) Additional prohibition on those exceptions may overcome the license 1979, a license is required to export, informed by BIS. BIS may inform requirements set forth in this section, reexport or transfer (in-country) any persons, either individually by specific except License Exception GOV item subject to the EAR listed in notice or through amendment to the (§ 740.11(b)). Supplement No. 2 to this part and items EAR, that a license is required for a specified in ECCNs 0A998, 1C992, specific export, reexport or transfer (in- ■ 14. Supplement No. 2 to part 746 is 3A229, 3A231, 3A232, 6A991, 8A992, country) or for the export, reexport, or added to read as follows: and 8D999 when you know that the transfer (in-country) of specified items Supplement No. 2 to Part 746—Russian item will be used directly or indirectly to a certain end-user, because there is an Industry Sector Sanction List in exploration for, or production of, oil unacceptable risk of use in, or diversion or gas in Russian deepwater (greater to, the activities specified in paragraph The source for the Schedule B than 500 feet) or Arctic offshore (a)(1) of this section in Russia. Specific numbers and descriptions in this list locations or shale formations in Russia, notice is to be given only by, or at the comes from the Bureau of the Census’s or are unable to determine whether the direction of, the Deputy Assistant Schedule B concordance of exports item will be used in such projects. Such Secretary for Export Administration. 2014. Census’s Schedule B List 2014 can items include, but are not limited to, When such notice is provided orally, it be found at http://www.census.gov/ drilling rigs, parts for horizontal will be followed by a written notice foreign-trade/schedules/b/2014/ drilling, drilling and completion within two working days signed by the index.html The Introduction Chapter of equipment, subsea processing Deputy Assistant Secretary for Export the Schedule B provides important equipment, Arctic-capable marine Administration. However, the absence information about classifying products equipment, wireline and down hole of any such notification does not excuse and interpretations of the Schedule B, motors and equipment, drill pipe and persons from compliance with the e.g., NESOI means Not Elsewhere casing, software for hydraulic fracturing, license requirements of paragraph (a)(1) Specified or Included. In addition, high pressure pumps, seismic of this section. important information about products acquisition equipment, remotely (b) Licensing policy. Applications for within a particular chapter may be operated vehicles, compressors, the export, reexport or transfer (in- found at the beginning of chapters.

Schedule B Description

7304110000 ...... LINE PIPE OF A KIND USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF STAINLESS STEEL 7304191020 ...... LINE PIPE OF A KIND USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF IRON (NONCAST) OR NONALLOY STEEL, WITH AN OUTSIDE DIAMETER NOT EXCEEDING 114.3 MM 7304191050 ...... LINE PIPE FOR OIL OR GAS PIPELINES, SEAMLESS, IRON (NONCAST) OR NONALLOY STEEL, WITH OUTSIDE DIAMETER OVER 114.3 MM BUT NOT OVER 406.4 MM 7304191080 ...... LINE PIPE OF A KIND USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF IRON (NONCAST) OR NONALLOY STEEL, WITH AN OUTSIDE DIAMETER EXCEEDING 406.4 MM 7304195020 ...... LINE PIPE OF A KIND USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF OTHER ALLOY STEEL, NOT STAIN- LESS, WITH AN OUTSIDE DIAMETER NOT EXCEEDING 114.3 MM 7304195050 ...... LINE PIPE, USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF OTHER ALLOY STEEL, NOT STAINLESS, WITH AN OUTSIDE DIAMETER >114.3 MM, BUT <406.4 MM 7304195080 ...... LINE PIPE OF A KIND USED FOR OIL OR GAS PIPELINES, SEAMLESS, OF ALLOY STEEL, NOT STAINLESS, WITH AN OUTSIDE DIAMETER EXCEEDING 406.4 MM 7304220000 ...... OIL WELL DRILL PIPE, OF STAINLESS STEEL 7304233000 ...... OIL WELL DRILL PIPE, OF IRON OR NONALLOY STEEL 7304236000 ...... OIL WELL DRILL PIPE, OF ALLOY STEEL OTHER THAN STAINLESS STEEL 7304241000 ...... OIL WELL CASING OF STAINLESS STEEL 7304246000 ...... OIL WELL TUBING OF STAINLESS STEEL 7304291055 ...... OIL WELL CASING OF IRON OR NONALLOY STEEL 7304293155 ...... OIL WELL CASING OF OTHER ALLOY STEEL NOT STAINLESS 7304295000 ...... OIL WELL TUBING OF IRON OR NONALLOY STEEL 7304296100 ...... OIL WELL TUBING OF OTHER ALLOY STEEL OTHER THAN STAINLESS STEEL 7305111000 ...... LINE PIPE FOR OIL OR GAS, LONGITUDINALLY SUBMERGED ARC WELDED, EXTERNAL DIAMETER MORE THAN 406.4 MM, CIRCULAR CROSS-SECTIONS, OF IRON OR NONALLOY STEEL 7305115000 ...... LINE PIPE FOR OIL/GAS PIPELINES, LONGITUDINALLY SUBMERGED ARC WELDED WITH EXTERNAL DIAME- TER OVER 406.4 MM, OF ALLOY STEEL, WITH CIRCULAR CROSS-SECTION 7305121000 ...... LINE PIPE FOR OIL OR GAS, OTHER LONGITUDINALLY WELDED, EXTERNAL DIAMETER MORE THAN 406.4 MM, CIRCULAR CROSS-SECTION, IRON OR NONALLOY STEEL 7305125000 ...... LINE PIPE FOR OIL OR GAS PIPELINES, LONGITUDINALLY WELDED WITH EXTERNAL DIAMETER >406.4 MM, OF ALLOY STEEL, WITH CIRCULAR CROSS SECTION 7305191000 ...... LINE PIPE FOR OIL OR GAS OTHER THAN LONGITUDINALLY WELDED, EXTERNAL DIAMETER MORE THAN 406.4 MM, CIRCULAR CROSS-SECTION, IRON OR NONALLOY STEEL 7305195000 ...... LINE PIPE FOR OIL OR GAS PIPELINES, WITH EXTERNAL DIAMETER >406.4 MM, OF ALLOY STEEL, CIRCULAR CROSS SECTION, WELDED/RIVETED, NESOI

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Schedule B Description

7305203000 ...... CASING, OIL OR GAS DRILLING, OTHER THAN SEAMLESS, CIRCULAR CROSS-SECTION, EXTERNAL DIAMETER OVER 406.4 MM, IRON OR NONALLOY STEEL 7305207000 ...... CASING, OIL OR GAS DRILLING, OTHER THAN SEAMLESS, CIRCULAR CROSS-SECTION, EXTERNAL DIAMETER OVER 406.4 MM, ALLOY STEEL 7306110000 ...... LINE PIPE FOR OIL OR GAS NOT SEAMLESS NESOI, OF STAINLESS STEEL 7306191000 ...... LINE PIPE FOR OIL OR GAS NOT SEAMLESS NESOI, OF IRON OR NONALLOY STEEL 7306195000 ...... LINE PIPE FOR OIL OR GAS NOT SEAMLESS NESOI, OF ALLOY STEEL OTHER THAN STAINLESS STEEL 7311000000 ...... CONTAINERS FOR COMPRESSED OR LIQUEFIED GAS OF IRON OR STEEL 7613000000 ...... ALUMINUM CONTAINERS FOR COMPRESSED OR LIQUEFID GAS 8207130000 ...... ROCK DRILLING OR EARTH BORING TOOLS WITH WORKING PART OF CERMETS, AND PARTS THEREOF 8207191030 ...... PERCUSSION ROCK DRILL BITS, CORE BITS AND REAMERS, OF BASE METAL, AND PARTS THEREOF 8207192030 ...... ROTARY ROCK DRILL BITS, CORE BITS AND REAMERS OF BASE METAL, AND PARTS THEREOF 8207195030 ...... ROCK DRILLING OR EARTH BORING TOOLS OF BASE METALS, NESOI, AND PARTS THEREOF 8413500010 ...... OIL WELL AND OIL FIELD PUMPS, RECIPROCATING POSITIVE DISPLACEMENT 8413600050 ...... OIL WELL AND OIL FIELD PUMPS, ROTARY POSITIVE DISPLACEMENT 8413820000 ...... LIQUID ELEVATORS 8413920000 ...... PARTS OF LIQUID ELEVATORS 8421398020 ...... ELECTROSTATIC PRECIPITATORS, INDUSTRIAL GAS CLEANING EQUIPMENT 8421398030 ...... INDUSTRIAL GAS CLEANING EQUIPMENT, NESOI 8421398040 ...... GAS SEPARATION EQUIPMENT 8430494000 ...... OFFSHORE OIL AND NATURAL GAS DRILLING AND PRODUCTION PLATFORMS 8430498010 ...... BORING OR SINKING MACHINERY, ROTARY, FOR OIL WELL AND GAS FIELD DRILLING 8430498020 ...... BORING OR SINKING MACHINERY FOR OIL WELL AND GAS FIELD DRILLING, NESOI 8431390050 ...... PARTS SUITABLE FOR USE SOLELY OR PRINCIPALLY WITH THE OIL AND GAS FIELD MACHINERY OF HEAD- INGS 8425 TO 8430 8431434000 ...... OFFSHORE OIL AND NATURAL GAS DRILLING AND PRODUCTION PLATFORM PARTS, OF SUBHEADING 8430.41 OR 8430.49 8431438010 ...... PARTS OF OIL AND GAS FIELD MACHINERY OF SUBHEADING 8430.49 EXCEPT PARTS OF OFFSHORE DRILL- ING AND PRODUCTION PLATFORMS 8431438090 ...... PARTS OF BORING OR SINKING MACHINERY OF SUBHEADING 8430.41 OR 8430.49, NESOI 8479899850 ...... OIL AND GAS FIELD WIRE LINE AND DOWNHOLE EQUIPMENT 8705200000 ...... MOBILE DRILLING DERRICKS 8708998175 ...... PARTS AND ACCESSORIES, FOR MOTOR VEHICLES OF HEADING 8705.20, NESOI 8905200000 ...... FLOATING OR SUBMERSIBLE DRILLING OR PRODUCTION PLATFORMS 8905901000 ...... FLOATING DOCKS

■ 15. Reserved Supplement No. 3 to Part Control(s): Country chart b.3. High pressure pumps. 746 is removed. * * * * * Russian industry sec- See § 746.5 for spe- PART 774—[AMENDED] tor sanction applies cific license re- ■ 18. Supplement No. 1 to part 774, to entire entry. quirements and li- Category 1, ECCN 1C992 is amended by ■ cense review pol- revising the License Requirements 16. The authority citation for 15 CFR icy. part 774 continues to read as follows: section to read as follows: List Based License Exceptions (See Part 740 1C992 Commercial charges and devices Authority: 50 U.S.C. app. 2401 et seq.; 50 for a description of all license exceptions) U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. containing energetic materials, n.e.s. 7430(e); 22 U.S.C. 287c, 22 U.S.C. 3201 et LVS: N/A and nitrogen trifluoride in a gaseous GBS: N/A seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); state (see List of Items Controlled). CIV: N/A 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. License Requirements 1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 List of Items Controlled Reason for Control: AT, RS U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. Related Controls: N/A 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. Related Definitions: N/A Country chart (see 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Items: Control(s) Supp. No. 1 to part Comp., p. 783; Notice of August 8, 2013, 78 a. Oil and gas exploration data, e.g., 738) FR 49107 (August 12, 2013). seismic analysis data. b. Hydraulic fracturing items, as follows: ■ AT applies to entire AT Column 1 17. Supplement No. 1 to Part 774, b.1. Hydraulic fracturing design and entry. Category 0, ECCN 0A998 is added after analysis software and data. 0A988 to read as follows: b.2. Hydraulic fracturing ‘proppant,’ ‘fracking fluid,’ and chemical additives Supplement No. 1 to Part 774—The therefor. Commerce Control List Technical Note: A ‘proppant’ is a solid * * * * * material, typically treated sand or man-made ceramic materials, designed to keep an 0A998 Oil and gas exploration equipment, induced hydraulic fracture open, during or software, and data, as follows (see List following a fracturing treatment. It is added of Items Controlled). to a ‘fracking fluid’ which may vary in License Requirements composition depending on the type of fracturing used, and can be gel, foam or Reason for Control: Foreign policy slickwater-based.

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License Requirements Country chart (see Control(s) Country chart (see Supp. Control(s) Supp. No. 1 to part No. 1 to part 738) Reason for Control: AT, UN 738) Russian industry See § 746.5 for specific li- RS applies to entire A license is required sector sanc- cense requirements and Country chart (see entry. for items controlled tions apply to license review policy. Control(s) Supp. No. 1 to part 738) by this entry for ex- entire entry. port or reexport to AT applies to entire AT Column 1 Iraq and transfer * * * * * entry. within Iraq for re- ■ UN applies to 8A992.l See § 746.1(b) for UN gional stability rea- 21. Supplement No. 1 to part 774, and m. controls. sons. The Com- Category 3, ECCN 3A232 is amended by Russian industry sec- See § 746.5 for spe- merce Country revising the License Requirements tor sanctions apply cific license require- Chart is not de- section to read as follows: to entire entry. ments and license signed to determine 3A232 Detonators and multipoint initiation review policy. RS license require- systems, as follows (see List of Items ments for this entry. Controlled). * * * * * See §§ 742.6 and ■ 24. Supplement No. 1 to part 774, 746.3 of the EAR License Requirements Category 8, ECCN 8D999 is added after for additional infor- Reason for Control: AT, RS mation. ECCN 8D992 to read as follows: Russian industry sec- See § 746.5 for spe- Country chart (See 8D999 ‘‘Software’’ ‘‘specially designed’’ for tor sanctions apply cific license require- Control(s) Supp. No. 1 to part the operation of unmanned submersible to entire entry. ments and license 738) vehicles used in the oil and gas industry. review policy. NP applies to entire NP Column 1 License Requirements * * * * * entry. Reason for Control: N/A AT applies to entire AT Column 1 ■ 19. Supplement No. 1 to part 774, entry. Country chart (see Category 3, ECCN 3A229 is amended by Russian industry sec- See § 746.5 for spe- Control(s) Supp. No. 1 to part revising the License Requirements tor sanctions apply cific license require- 738) section to read as follows: to entire entry. ments and license review policy. Russian industry sec- See § 746.5 for spe- 3A229 Firing sets and equivalent high- tor sanctions apply cific license require- current pulse generators (for detonators * * * * * to entire entry. ments and license controlled by 3A232), as follows (see review policy. ■ List of Items Controlled). 22. Supplement No. 1 to part 774, Category 6, ECCN 6A991 is amended by List Based License Exceptions (See Part 740 License Requirements revising the License Requirements for a description of all license exceptions) Reason for Control: NP, AT section to read as follows: CIV: N/A TSR: N/A 6A991 Marine or terrestrial acoustic Country chart (see equipment, n.e.s., capable of detecting or List of Items Controlled Control(s) Supp. No. 1 to part locating underwater objects or features 738) Related Controls: N/A or positioning surface vessels or Related Definitions: N/A underwater vehicles; and ‘‘specially NP applies to entire NP Column 1 Items: designed’’ ‘‘parts’’ and ‘‘components,’’ entry. n.e.s. The list of items controlled is contained in AT applies to entire AT Column 1 the ECCN heading. entry. License Requirements * * * * * Russian industry sec- See § 746.5 for spe- Reason for Control: AT tor sanctions apply cific license require- Dated: August 1, 2014. to entire entry. ments and license Country chart (see Eric L. Hirschhorn, review policy. Control(s) Supp. No. 1 to part 738) Under Secretary of Commerce for Industry * * * * * and Security. AT applies to entire AT Column 2 [FR Doc. 2014–18579 Filed 8–1–14; 4:15 pm] ■ 20. Supplement No. 1 to part 774, entry. BILLING CODE 3510–33–P Category 3, ECCN 3A231 is amended by Russian industry sec- See § 746.5 for spe- revising the License Requirements tor sanctions apply cific license require- section to read as follows: to entire entry. ments and license review policy. DEPARTMENT OF THE TREASURY 3A231 Neutron generator systems, including tubes, having both of the * * * * * Internal Revenue Service following characteristics (see List of ■ 23. Supplement No. 1 to part 774, 26 CFR Part 1 Items Controlled). Category 8, ECCN 8A992 is amended by License Requirements revising the License Requirements [TD 9673] section to read as follows: Reason for Control: NP, AT RIN 1545–BK23 8A992 Vessels, marine systems or equipment, not controlled by 8A001 or Control(s) Country chart (see Supp. Longevity Annuity Contracts; No. 1 to part 738) 8A002, and ‘‘specially designed’’ Correction ‘‘parts’’ and ‘‘components’’ therefor, and NP applies to en- NP Column 1 marine boilers and ‘‘parts,’’ AGENCY: Internal Revenue Service (IRS), tire entry. ‘‘components,’’ ‘‘accessories,’’ and Treasury. AT applies to en- AT Column 1 ‘‘attachments’’ therefor (see List of Items ACTION: Correcting amendment. tire entry. Controlled).

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