57124 Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Rules and Regulations ■ 3. In appendix C to part 4022, Rate Set Appendix C to Part 4022—Lump Sum 324 is added at the end of the table to Interest Rates for Private-Sector read as follows: Payments * * * * * For plans with a Immediate Deferred annuities Rate set valuation date annuity rate (percent) (percent) On or after Before i1 i2 i3 n1 n2 ******* 324 10–1–20 11–1–20 0.00 4.00 4.00 4.00 7 8 PART 4044—ALLOCATION OF Authority: 29 U.S.C. 1301(a), 1302(b)(3), Appendix B to Part 4044—Interest ASSETS IN SINGLE-EMPLOYER 1341, 1344, 1362. Rates Used to Value Benefits PLANS ■ 5. In appendix B to part 4044, an entry * * * * * ■ 4. The authority citation for part 4044 for ‘‘October–December 2020’’ is added continues to read as follows: at the end of the table to read as follows: The values of it are: For valuation dates occurring in the month— it for t = it for t = it for t = ******* October–December 2020 ................................................. 0.0162 1–20 0.0140 >20 N/A N/A Issued in Washington, DC. related provision, and makes one section 721 of the Defense Production Hilary Duke, technical revision. Act of 1950 (DPA) to authorize CFIUS Assistant General Counsel for Regulatory DATES: to mandate through regulations the Affairs, Pension Benefit Guaranty Effective date: The final rule is submission of a declaration for covered Corporation. effective on October 15, 2020. transactions involving certain U.S. [FR Doc. 2020–20179 Filed 9–14–20; 8:45 am] Applicability date: See § 800.104. businesses that produce, design, test, BILLING CODE 7709–02–P FOR FURTHER INFORMATION CONTACT: For manufacture, fabricate, or develop one questions about this rule, contact: or more critical technologies. Meena R. Sharma, Deputy Director of The proposed rule made DEPARTMENT OF THE TREASURY Investment Security Policy and modifications to the scope of the International Relations; or David mandatory declaration provision in Part Office of Investment Security Shogren, Senior Policy Advisor, at U.S. 800—primarily reorienting it from one Department of the Treasury, 1500 based on a nexus to certain industries to 31 CFR Part 800 Pennsylvania Avenue NW, Washington, one based on whether certain U.S. DC 20220; telephone: (202) 622–3425; government authorizations would be RIN 1505–AC68 email: [email protected]. required to export, reexport, transfer (in- SUPPLEMENTARY INFORMATION: country), or retransfer the critical Provisions Pertaining to Certain technology or technologies produced, Investments in the United States by I. Background designed, tested, manufactured, Foreign Persons On May 21, 2020, the Department of fabricated, or developed by the U.S. AGENCY: Office of Investment Security, the Treasury (Treasury Department) business to certain transaction parties Department of the Treasury. published a notice of proposed and foreign persons in the ownership ACTION: Final rule. rulemaking amending certain provisions chain. To accomplish this, the proposed in 31 CFR part 800 (Part 800). 85 FR rule amended § 800.104 (applicability SUMMARY: This final rule modifies 30893. (The Office of the Federal rule) and § 800.401 (mandatory certain provisions in the regulations of Register made the proposed rule declarations); introduced two new the Committee on Foreign Investment in available for public inspection on May definitions: ‘‘U.S. regulatory the United States that implement 20, 2020.) Public comments on the authorization’’ and ‘‘voting interest for section 721 of the Defense Production proposed rule were due by June 22, purposes of critical technology Act of 1950, as amended by the Foreign 2020, and are discussed below. mandatory declarations;’’ and removed Investment Risk Review Modernization The proposed rule made revisions to the North American Industry Act of 2018. Specifically, the rule the requirement to submit declarations Classification System (NAICS) codes at modifies the mandatory declaration to the Committee on Foreign Investment appendix B to Part 800. The proposed provision for certain foreign investment in the United States (CFIUS or the rule also made amendments to the transactions involving a U.S. business Committee) for certain critical definition of ‘‘substantial interest’’ at that produces, designs, tests, technology transactions. This § 800.244 of Part 800. manufactures, fabricates, or develops declaration requirement in Part 800 Further explanation of FIRRMA and one or more critical technologies. It also implements section 1706 of the Foreign the proposed rule can be found at 85 FR makes amendments to the definition of Investment Risk Review Modernization 30893; changes to the proposed rule are the term ‘‘substantial interest’’ and a Act of 2018 (FIRRMA), which amends explained in further detail below. VerDate Sep<11>2014 16:15 Sep 14, 2020 Jkt 250001 PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 E:\FR\FM\15SER1.SGM 15SER1 jbell on DSKJLSW7X2PROD with RULES Federal Register / Vol. 85, No. 179 / Tuesday, September 15, 2020 / Rules and Regulations 57125 II. Overview of Comments on the transactions for which specified actions simply has a general partner, managing Proposed Rule occurred prior to that date. member, or equivalent. The Treasury Department expects that when B. Subpart B—Definitions During the public comment period, analyzing the specific relationship the Treasury Department received Section 800.213—Covered Transaction between a general partner and an entity, written submissions on the proposed it will generally be clear to the parties rule. All comments received by the end The rule makes a technical revision to example 2 in paragraph (e). whether the general partner primarily of the comment period are available on directs, controls, or coordinates the the public rulemaking docket at https:// Section 800.244—Substantial Interest activities of the entity. In a situation www.regulations.gov. Section 800.244 in Part 800 sets forth where a third party controls and The Treasury Department considered how to determine the percentage coordinates the activities of an entity on each comment submitted on the interest held indirectly by one entity in behalf of the general partner, the general proposed rule and made certain another for purposes of whether a partner does not cease to primarily revisions in this rule in response to foreign person obtains a ‘‘substantial direct, control, or coordinate the comments. The Treasury Department interest’’ in a U.S. business where a activities of the entity simply by recognizes the vital importance of foreign government in turn holds a contracting a third party to perform foreign investment to the U.S. economy, ‘‘substantial interest’’ in the foreign such services. including for businesses that are person. This definition forms the basis involved in critical technologies. The Section 800.254—U.S. Regulatory for the declaration requirement for Authorization Treasury Department drafted the certain covered transactions where a Consistent with the proposed rule, the proposed rule, and made revisions in foreign government has a substantial new defined term at § 800.254 specifies issuing this rule, taking into interest in a foreign person that will the types of regulatory licenses or consideration various factors including acquire a substantial interest in certain authorizations that are required under national security considerations, the types of U.S. businesses. The proposed the four main U.S. export control effect on foreign investment, and the rule clarified that § 800.244(b) applies regimes, which if applicable in the effect on small business concerns. only where the general partner, context of a particular transaction Overall, the commenters were managing member, or equivalent described under the rule, trigger a generally supportive of the proposed primarily directs, controls, or mandatory declaration. rule. Some of the commenters suggested coordinates the activities of the entity. revisions or clarification, and the The proposed rule also removed three Section 800.256—Voting Interest for section-by-section analysis below instances of the word ‘‘voting’’ from Purposes of Critical Technology includes responses to these comments. § 800.244(c) in order to clarify that the Mandatory Declarations Further edits were made to the rule for calculation rule applies to the The proposed rule introduced a new consistency and clarity, and one calculation of ‘‘voting interests’’ as defined term at § 800.256 that specified technical revision was made. described in paragraph (a) and which persons in the ownership chain III. Summary of Comments and ‘‘interests’’ as described in paragraph (b) of the persons described in Changes From the Proposed Rule of that section. § 800.401(c)(1)(i)–(iv) should be One commenter suggested that the analyzed for export licenses and A. Subpart A—General Provisions current definition at § 800.244(b) be authorization purposes in determining Section 800.104—Applicability Rule retained and not be revised to include whether a particular transaction could the language, ‘‘primarily directed, trigger a mandatory declaration. While no comments were made controlled, or coordinated by or on One commenter suggested raising the specifically on the applicability rule, for behalf of a general partner, managing applicable voting interest threshold the avoidance of doubt, the operation of member, or equivalent,’’ from the from 25 percent to 50 percent. No the applicability rule will be the same proposed rule. The commenter change