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Federal Register/Vol. 86, No. 11/Tuesday, January 19, 2021

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Federal Register/Vol. 86, No. 11/Tuesday, January 19, 2021 Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations 4929 DEPARTMENT OF COMMERCE Background free flow of communications among the I. Brief History of Anti-Terrorism Sudanese people, in February 2015, BIS Bureau of Industry and Security Controls on Sudan amended § 742.10 to establish a case-by- case review policy for 15 CFR Parts 734, 738, 740, 742, 748, A. Overview telecommunication equipment and 750, 772, 774 Sections 1753, 1754, and 1768 of the associated items for civil end use, Export Control Reform Act of 2018 including items useful for the [Docket No. 201221–0350] (ECRA), 50 U.S.C. Sections 4801–4852, development of civil provide the legal authority for BIS’s AT telecommunications infrastructure. See RIN 0694–AI33 controls on SSOT destinations. On 80 FR 8520 (Feb. 18, 2015). Two years August 12, 1993, in accordance with later, in January 2017, in response to Implementation in the Export Section 6(j) of the Export positive developments in the U.S.- Administration Regulations of the Administration Act of 1979, then Sudan bilateral relationship, BIS United States’ Rescission of Sudan’s codified at 50 U.S.C. App. 2405(j), the amended § 742.10, again in coordination Designation as a State Sponsor of Secretary of State designated Sudan as with OFAC, to institute a general policy Terrorism of approval for certain items, including a SSOT, citing his determination that parts, components, and equipment, that Sudan, then led by Omar al-Bashir, had AGENCY: Bureau of Industry and are controlled on the CCL solely for AT repeatedly provided support for acts of Security, Commerce. reasons and are intended to ensure the international terrorism. See 58 FR 52523 ACTION: Final rule. safety of civil aviation or the safe (Oct. 8, 1993). Consistent with this operation of fixed-wing commercial designation, BIS imposed AT controls SUMMARY: In this final rule, the Bureau passenger aircraft, as well as items on Sudan in accordance with the Export of Industry and Security (BIS) amends controlled on the CCL solely for AT Administration Act of 1979, as the Export Administration Regulations reasons intended for use in the amended, formerly codified at 50 U.S.C. (EAR) to implement the rescission of inspection and repair, among other Sudan’s designation as a State Sponsor Sections 4601–4623, the legal authority activities, of railroads in Sudan. See 82 of Terrorism (SSOT). The Secretary of at the time for BIS’s export control FR 4781 (Jan. 17, 2017). State rescinded this designation regime. 61 FR 12714 (March 25, 1996). BIS also made changes to license effective December 14, 2020 in Pursuant to § 742.10 (Anti-Terrorism) of exception eligibility in connection with accordance with established statutory the EAR, a license was also required for foreign policy considerations and procedures, including the President’s the export or reexport to Sudan of developments. In February 2005, BIS October 26, 2020 submission to nearly all items on the Commerce amended License Exception Temporary Congress of a report justifying the Control List (CCL), Supp. No. 1 to part imports, exports, reexports, and rescission and certifying Sudan had not 774 of the EAR. License applications for transfers (in-country) (TMP) to permit provided any support for acts of such exports and reexports were temporary exports to Sudan of certain international terrorism during the reviewed under a general policy of computers, communication devices, and preceding six month period and that denial. Consistent with Sudan’s global positioning devices as ‘‘tools of Sudan had provided assurances that it designation as a SSOT, the country was trade’’ by employees and staff of certain would not support acts of international also placed in Country Group E (now organizations engaged in humanitarian terrorism in the future. Accordingly, BIS Country Group E:1): (terrorist- work in Sudan. See 70 FR 8257 (Feb. 18, amends the EAR by removing Anti- supporting countries) in Supplement 2005) and 70 FR 9703 (Feb. 28, 2005). Terrorism (AT) controls on the country No. 1 to part 740 of the EAR and made In February 2008, BIS amended TMP and by removing Sudan from Country subject to a 10 percent de minimis again in connection with exports and Group E:1 (Terrorist supporting threshold for controlled U.S.-origin reexports destined for Sudan, including countries). These actions render the content (see § 734.4 of the EAR). Most by expanding the number of activities country eligible for a general 25 percent license exceptions were also unavailable and commodities eligible under the de minimis level. As a consequence of for exports and reexports of CCL items ‘‘tools of trade’’ category, an action these actions, as well as the addition of destined for Sudan due to its status as taken in part to reflect the changing the country to Country Group B, Sudan an ‘‘E:1’’ country. nature of humanitarian work is also potentially eligible for several B. Changes to Certain Licensing Policies undertaken in the country by new license exceptions under the EAR. and License Exceptions nongovernmental organizations. See 73 However, pursuant to this rule, two FR 10668 (Feb. 28, 2008). In January license exceptions will be unavailable Notwithstanding the general policy of 2017, as part of the same regulatory for exports and reexports to Sudan. BIS denial set forth in § 742.10 of the EAR, action described above that created a also makes conforming amendments in prior to the publication of this rule, BIS more favorable license review policy for other applicable EAR provisions as part reviewed certain categories of CCL items certain items for use in civil aviation of this rule. proposed for export or reexport to and railroad infrastructure in Sudan, DATES: This rule is effective January 14, Sudan under less stringent review BIS made License Exception Consumer 2021. policies. In particular, applications for Communications Devices (CCD) eligible the export and reexport of medical items for the export and reexport of certain FOR FURTHER INFORMATION CONTACT: to Sudan were subject to case-by-case Foreign Policy Division, Office of consumer communications devices to review. Over time, consistent with U.S. Sudan. Nonproliferation and Treaty foreign policy initiatives, BIS instituted Compliance, Bureau of Industry and case-by case review or a general policy C. Dual Licensing—BIS and OFAC Compliance, U.S. Department of of approval for additional categories of For nearly twenty years, licenses from Commerce, by email at Foreign.Policy@ items. For example, acting in both BIS and OFAC were required to bis.doc.gov, or by phone at 202–482– coordination with the Department of the export and reexport items on the CCL to 4252. Treasury’s Office of Foreign Assets Sudan as a consequence of broad trade SUPPLEMENTARY INFORMATION: Control (OFAC), in order to promote the restrictions imposed in November 1997, VerDate Sep<11>2014 16:33 Jan 17, 2021 Jkt 253001 PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 E:\FR\FM\19JAR1.SGM 19JAR1 khammond on DSKJM1Z7X2PROD with RULES 4930 Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations including restrictions on U.S. persons’ reexports of items subject to the EAR to decision ‘‘reflect[ed] the . exports of U.S.-origin items to Sudan. Sudan. To reflect the revocation of these transitional government’s sustained Pursuant to Executive Order (E.O.) authorities, OFAC removed the SSR efforts to make sure there is no support 13067 of November 3, 1997, the U.S. from the Code of Federal Regulations on for acts of international terrorism.’’ See Government imposed a comprehensive June 29, 2018. OFAC only retained November 2, 2020 State Department trade embargo in response to the jurisdiction over certain exports and Press Statement, ‘‘Sudan Making Government of Sudan’s policies and reexports of agricultural commodities, Progress,’’ available at https:// activities, including its support for medicine, and medical devices destined www.state.gov/sudan-making-progress/. terrorism, efforts to destabilize for Sudan pursuant to the Trade neighboring governments, and the Sanctions Reform and Export III. Specific Amendments in This Rule prevalence of human rights violations. Enhancement Act of 2000, 22 U.S.C. A. Overview Specifically, this E.O. blocked the Section 7201 et seq., and authorized the Consistent with the Secretary of property of the Government of Sudan export and reexport of such items State’s rescission of Sudan’s designation subject to U.S. jurisdiction and imposed through a general license incorporated as a SSOT, effective December 14, 2020, restrictions on U.S. persons’ activities into Section 596.506 of the Terrorism this rule removes AT controls on the with respect to Sudan. On July 1, 1998, List Governments Sanctions country and makes conforming changes OFAC published the Sudanese Regulations, 31 CFR part 596. to various EAR provisions. First, this Sanctions Regulations, 31 CFR part 538 II. Rescission-Related Developments rule removes Sudan from Country (SSR), implementing these restrictions. Group E:1 in Supplement No. 1 to part See 63 FR 35809 (July 1, 1998). Notably, Once a country is designated a State 740, the Country Group placement for as implemented in the SSR, E.O. 13067 Sponsor of Terrorism, the designation terrorist supporting countries. This required the Department of the Treasury remains in effect until it is rescinded in action raises the de minimis level from to restrict the export or reexport to accordance with applicable law. On 10 percent to 25 percent for most Sudan of goods, technology, or services October 26, 2020, the President foreign-origin items located abroad that from the U.S. or by a U.S. person, submitted to Congress the statutorily- are destined for Sudan. These changes wherever located, or ‘‘requiring the required report justifying the rescission, make Sudan potentially eligible for new issuance of a license by a Federal and certifying that Sudan had not license exceptions under the EAR.
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