Friday, June 6, 2003 Part IV Department of Commerce Bureau of Industry and Security 15 CFR Parts 744 and 772 Department of the Treasury Office of Foreign Assets Control 31 CFR Part 594 Imposition and Expansion of Controls on Designated Terrorists; Global Terrorism Sanctions Regulation; Final Rules VerDate Jan<31>2003 17:38 Jun 05, 2003 Jkt 200001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\06JNR3.SGM 06JNR3 34192 Federal Register / Vol. 68, No. 109 / Friday, June 6, 2003 / Rules and Regulations DEPARTMENT OF COMMERCE Bureau of Industry and Security, bracketed initials [SDGT] and are also Department of Commerce, P.O. Box 273, known as Specially Designated Global Bureau of Industry and Security Washington, DC 20044, or to E-mail Terrorists (SDGTs). Provisions that address [email protected]. implement BIS controls on SDGTs are 15 CFR Parts 744 and 772 FOR FURTHER INFORMATION CONTACT: Joan included in new section 744.12 of the [Docket No. 020912210–2210–01] Roberts, Director, Foreign Policy EAR. Controls Division, Office of Strategic RIN 0694–AC60 Expansion of Reexport Controls on Trade and Foreign Policy Controls, SDTs and FTOs Bureau of Industry and Security, Imposition and Expansion of Controls Department of Commerce. Telephone: Specially Designated Terrorists on Designated Terrorists (202) 482–0171, E-mail (SDTs) are designated in or pursuant to AGENCY: Bureau of Industry and [email protected]. Executive Order 12947 issued on Security, Commerce. January 23, 1995 (Prohibiting SUPPLEMENTARY INFORMATION: Transactions with Terrorists Who ACTION: Interim final rule with request Background Threaten to Disrupt the Middle East for comments. Peace Process), as amended by Imposition of Controls on Specially Executive Order 13099 of August 20, SUMMARY: This rule amends the Export Designated Global Terrorists (SDGTs) Administration Regulations (EAR) by 1998. Foreign Terrorist Organizations imposing a license requirement on the President Bush issued Executive (FTOs) are designated pursuant to the export and reexport of any item subject Order 13224 (E.O. 13224) (Blocking 1996 Anti-Terrorism and Effective Death to the EAR by a U.S. person or non-U.S. Property and Prohibiting Transactions Penalty Act (Pub. L. 104–132). SDTs and person to persons designated in or with Persons Who Commit, Threaten to FTOs are included on the Blocked pursuant to Executive Order 13224 of Commit, or Support Terrorism) on Persons list maintained by OFAC in September 23, 2001. In response to September 23, 2001, in response to Appendix A to 31 CFR chapter V and grave acts of terrorism and threats of grave acts of terrorism and threats of identified by the bracketed initials terrorism, Executive Order 13224 blocks terrorism. On September 28, 2001, the [SDT] and [FTO], respectively. the property and interests in property of United Nations Security Council On January 8, 1999, BIS issued a rule persons listed in an Annex to the order (UNSC) adopted Resolution 1373, imposing foreign policy controls on and persons designated by the Secretary requiring all member states, among exports and certain reexports of items of State or the Secretary of the Treasury other things, to refrain from providing subject to the EAR to individuals and any form of support to persons involved pursuant to criteria set forth in the groups designated as SDTs and groups in terrorist acts and to prohibit their order. Executive Order 13224 also designated as FTOs. The January 1999 nationals from making economic prohibits U.S. persons from engaging in rule imposed a license requirement on resources available to persons who any transactions with such blocked the following exports and reexports to a commit, attempt to commit, facilitate or persons. The Department of the designated SDT or FTO: participate in the commission of Treasury’s Office of Foreign Assets (1) The export from the United States terrorist acts. In addition, on January 28, Control (OFAC) announces the names of of any item subject to the EAR; 2002, the UNSC adopted Resolution (2) The export or reexport by a U.S. persons designated pursuant to 1390, which requires all member states person, wherever located, of any item Executive Order 13224 in the Federal to freeze funds and other financial subject to the EAR; and Register and includes such persons in a assets or economic resources of Usama (3) The export from abroad or reexport listing of persons subject to various bin Laden, members of the Al-Qaida by a non-U.S. person of any item subject sanctions programs administered by organization and the Taliban and other to the EAR on the Commerce Control OFAC. The Department of State also individuals, groups, undertakings and List. announces the names of foreign persons entities associated with them, as The January 1999 rule did not impose designated pursuant to Executive Order referred to in the list created pursuant a license requirement on the export 13224 in the Federal Register. All to UNSC Resolutions 1267 (October 15, from abroad or reexport by a non-U.S. persons designated in or pursuant to 1999) and 1333 (December 19, 2000). person of EAR99 items. The action BIS Executive Order 13224 are identified by UNSC Resolution 1455 (January 17, is now taking, effective June 6, 2003, the bracketed initials [SDGT] in the 2003) continued and improved the expands current controls by requiring a Department of Treasury listing and are measures provided in UNSC Resolution license for the export from abroad or also known as Specially Designated 1390. The Bureau of Industry and reexport to a designated SDT or FTO by Global Terrorists (SDGTs). This rule also Security (BIS) is taking action consistent a non-U.S. person of any item subject to amends the EAR by expanding reexport with E.O. 13224 and UNSC Resolutions the EAR, whether such item is on the controls on Specially Designated 1267, 1390, 1452 (December 20, 2002), Commerce Control List or is classified Terrorists (SDTs) and Foreign Terrorist and 1455, as well as 1373, by imposing as EAR99. Provisions that expand BIS Organizations (FTOs). OFAC also a license requirement on all exports and controls on SDTs and FTOs are found in includes SDTs and FTOs in the reexports to persons designated in or revised sections 744.13 and 744.14 of Department of Treasury listing and pursuant to E.O. 13224. Persons the EAR, respectively. identifies them by the bracketed initials designated pursuant to criteria set forth Note that certain persons designated [SDT] and [FTO], respectively. in E.O. 13224 by the Secretary of State in or pursuant to E.O. 13224 also have DATES: This rule is effective June 6, or the Secretary of the Treasury are been designated as SDTs or FTOs or 2003. announced in the Federal Register and both, and are appropriately identified by Comment Dates: Comments on this listed in Appendix A to 31 CFR chapter more than one of the bracketed rule must be received on or before July V, which lists persons subject to various acronyms in Appendix A to 31 CFR 21, 2003. sanctions programs administered by chapter V. As such, section 744.1 is also ADDRESSES: Written comments on this OFAC (‘‘Blocked Persons list’’). Persons revised to add a new subsection (a)(2), rule should be sent to Sheila designated in or pursuant to E.O. 13224 which provides that when controls set Quarterman, Regulatory Policy Division, are identified in Appendix A by the forth under more than one section of VerDate Jan<31>2003 17:38 Jun 05, 2003 Jkt 200001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\06JNR3.SGM 06JNR3 Federal Register / Vol. 68, No. 109 / Friday, June 6, 2003 / Rules and Regulations 34193 part 744 apply to a person, the license rule on designated terrorist entities and The period for submission of requirements for such a person will be individuals was submitted to the comments will close July 21, 2003. The determined based on the requirements Congress on March 18, 2003. Department will consider all comments of all applicable sections, and license received before the close of the Rulemaking Requirements applications will be reviewed under all comment period in developing final applicable licensing policies. For 1. This interim rule has been regulations. Comments received after example, if an entity on the Entity List determined not to be significant for the end of the comment period will be in Supplement No. 4 to part 744 is also purposes of E.O. 12866. considered if possible, but their designated in or pursuant to E.O. 13224, 2. Notwithstanding any other consideration cannot be assured. The the provisions set forth in Supplement provision of law, no person is required Department will not accept public No. 4 to part 744 as well as the to, nor shall any person be subject to a comments accompanied by a request provisions set forth in section 744.12 penalty for failure to comply with a that a part or all of the material be will apply, and the denial policy for the collection of information, subject to the treated confidentially because of its export or reexport of all items subject to Paperwork Reduction Act (PRA), unless business proprietary nature or for any the EAR will be the operative policy. that collection of information displays a other reason. The Department will Also note that paragraph 744.1(a) is currently valid Office of Management return such comments and materials to updated to reflect the controls in and Budget (OMB) Control Number. the persons submitting the comments sections 744.9–744.16. This rule involves a collection of and will not consider them in the information approved by the OMB Allocation of Agency Licensing development of final regulations.