[Federal Register Volume 66, Number 41 (Thursday, March 1, 2001)]
[Rules and Regulations]
[Pages 12845-12848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5007]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 738, 740, 744, and 746
[Docket No. 010208031-1031-01]
RIN 0694-AC36
Exports to the Federal Republic of Yugoslavia; Revision of
Foreign Policy Controls
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends the Export Administration Regulations
(EAR) by removing the additional license requirements imposed on Serbia
in May 1999. However, a license is required for all exports and
reexports by U.S. persons of any item subject to the EAR to persons
listed pursuant to Executive Order 13088, as amended by Executive Order
13192 of January 17, 2001. The persons subject to sanctions under
amended Executive Order 13088 include Slobodan Milosevic, his family,
his close associates, and those indicted for war crimes. These
sanctioned persons are identified on the list of specially designated
nationals and blocked persons maintained by the Department of the
Treasury's Office of Foreign Assets Control and identified by the
bracketed suffix initials [FRYM]. Controls are maintained under the EAR
on arms and related materiel to the Federal Republic of Yugoslavia
(Serbia and Montenegro) consistent with United Nations Security Council
Resolution 1160 of March 3, 1998.
DATES: This rule is effective March 1, 2001.
FOR FURTHER INFORMATION CONTACT: Brian Nilsson, Office of Strategic
Trade and Foreign Policy Controls, Telephone: (202) 482-4196.
SUPPLEMENTARY INFORMATION:
Background
Executive Order 13088 of June 9, 1998, as amended by Executive
Order 13121 on April 30, 1999, imposed, among other measures,
comprehensive U.S. export and reexport prohibitions on the Federal
Republic of Yugoslavia (Serbia and Montenegro). On May 4, 1999, the
Bureau of Export Administration (BXA) issued a final rule imposing a
license requirement for exports and reexports to Serbia of all items
subject to the EAR and a case-by-case review of applications with a
presumption of denial for other than humanitarian items. These measures
were intended to deter Serbia's human rights offenses against ethnic
Albanians in Kosovo and to prevent the expansion of the ethnic
conflict. BXA's May 4, 1999 rule did not impose similar comprehensive
controls on exports or reexports to Montenegro.
Effective January 19, 2001, Executive Order 13192 amended Executive
Order 13088 to revoke previously imposed prohibitions, including those
on exports and reexports. BXA is taking action under its export control
authorities consistent with amended Executive Order 13088.
Specifically, this rule removes the additional license requirements
imposed under the EAR by the May 4, 1999, rule on exports and reexports
to Serbia, and thus restores Serbia to the export control status it had
prior to May 4, 1999. However, persons listed in the Annex to Executive
Order 13192, as well as persons designated by the Secretary of the
Treasury, in consultation with the Secretary of State pursuant to that
order, are subject to sanctions administered by the Department of the
Treasury's Office of Foreign Assets Control. Exports and reexports of
any item subject to the EAR by a U.S. person to a person designated
pursuant to amended Executive Order 13088 are subject to a license
requirement and a licensing policy of denial. These sanctioned persons
are included on a list of specially designated nationals and blocked
persons (SDNs) maintained by the Department of the Treasury, Office of
Foreign Assets Control (OFAC) and identified by the bracketed suffix
initials [FRYM]. To obtain additional information regarding the list of
SDNs, contact OFAC at telephone number 202/622-2520. BXA provisions
regarding these sanctioned persons are included in new section 744.16
of the EAR.
This rule eliminates the distinctions previously applicable to
Serbia, Kosovo and Montenegro, which had been established by the final
rule of November 5, 1999, for export control purposes. With the
publication of this rule, Serbia (including the province of Kosovo) and
Montenegro will be listed together as the Federal Republic of
Yugoslavia (Serbia and Montenegro) for License Exception eligibility
purposes, as members of ``Country Group B'' (see Supplement No. 1 to
part 740),
[[Page 12846]]
``Computer Tier 3'' (see Sec. 740.7), and in the ``Commerce Country
Chart'' (see Supplement No. 1 part 738).
Note that the arms embargo mandated by United Nations Security
Council Resolution 1160 of March 3, 1998 remains in effect. This
embargo prohibits the sale or supply of arms and arms-related items to
the Federal Republic of Yugoslavia (Serbia and Montenegro), including
those controlled under the EAR for crime control and regional stability
reasons.
A foreign policy report on the new controls imposed by this rule on
designated persons pursuant to amended Executive Order 13088 was
submitted to the Congress on February 23, 2001.
Rulemaking Requirements
1. This rule was determined to be not significant for purposes of
Executive Order 12866.
2. This rule involves a collection of information subject to the
Paperwork Reduction Act (P.R.A.) of 1995 (U.S.C. 3501 et seq.). This
collection has been approved by the Office of Management and Budget
under control number 0694-0088, ``Multi-Purpose Application,'' which
carries a burden hour estimate of 45 minutes per manual submission on
form BXA-748P and 40 minutes per electronic submission. Notwithstanding
any other provision of law, no person is required to respond to, nor
shall any person be subject to a penalty for failure to comply with a
collection of information subject to the requirements of the P.R.A.,
unless that collection of information displays a currently valid OMB
Control Number.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 13132
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in effective date, are inapplicable
because this regulation involves a military and foreign affairs
function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, no
other law requires that a notice of proposed rulemaking and an
opportunity for public comment be given for this final rule. Because a
notice of proposed rulemaking and an opportunity for public comment are
not required to be given for this rule under 5 U.S.C. 553, or by any
other law, the analytical requirements of the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, this
regulation is issued in final form.
Although there is no formal comment period, public comments on this
regulation are welcome on a continuing basis. Comments should be
submitted to Sheila Quarterman, Office of Exporter Services, Bureau of
Export Administration, Department of Commerce, P.O. Box 273,
Washington, DC 20044.
List of Subjects
15 CFR Part 738
Administrative practice and procedure, Exports, Foreign trade.
15 CFR Part 740
Administrative practice and procedure, Exports, Foreign trade,
Reporting and Recordkeeping requirements.
15 CFR Part 744
Exports, Foreign trade, Reporting and recordkeeping requirements.
15 CFR Part 746
Embargoes, Exports, Foreign trade, Reporting and recordkeeping
requirements.
Accordingly, parts 738, 740, 744, and 746 of the Export
Administration Regulations (15 CFR Parts 730-799) are amended as
follows:
1. The authority citation for part 738 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508;
50 U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C.
2510 et seq.; 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); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43
U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 12924, 59
FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; Notice of August 3, 2000 (65 FR 48347, August 8,
2000).
2. The authority citation for part 740 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508;
50 U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp.,
p. 917; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; Notice
of August 3, 2000 (65 FR 48347, August 8, 2000).
3. The authority citation for part 744 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508;
50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;
E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58
FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR,
1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13088,
63 FR 32109, 3 CFR, 1998 Comp., p. 191; E.O. 13121 of April 30,
1999, 64 FR 24021 (May 5, 1999); E.O. 13192 of January 17, 2001, 66
FR 7379 (January 23, 2001); Notice of November 12, 1998, 63 FR
63589, 3 CFR, 1998 Comp., p. 305; Notice of August 3, 2000 (65 FR
48347, August 8, 2000).
4. The authority citation for Part 746 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; Public Law No. 106-508;
50 U.S.C. 1701 et seq.; 22 U.S.C. 287c; 22 U.S.C. 6004; E.O. 12854,
58 FR 36587, 3 CFR 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3
CFR, 1994 Comp., p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp.,
p. 917; Notice of August 3, 2000 (65 FR 48347, August 8, 2000).
PART 738--[AMENDED]
5. Supplement No. 1 to Part 738 is amended by removing the entries
``Kosovo (Serbian province of)'' and ``Montenegro'', by revising the
entry heading ``Serbia (not including Kosovo)'' to read ``Yugoslavia
(Serbia and Montenegro), Federal Republic of'', and by revising the
newly designated ``Yugoslavia (Serbia and Montenegro), Federal Republic
of'' row, to read as follows:
Supplement No. 1 to Part 738--(Commerce Country Chart)
Commerce Country Chart--Reason for Control
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Chemical & biological Nuclear National security Missile Regional stability Firearms Crime control Anti-terrorism
weapons nonproliferation -------------------- tech -------------------- convention -------------------------------------------------
Countries -------------------------------------------------- ------------ ----------------
CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Yugoslavia (Serbia and Montenegro), Federal Republic of \1\..... X X X X X X X X X X X
* * * * * * *
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements thatm ay apply to your proposed transaction.
[[Page 12847]]
PART 740--[AMENDED]
6. Section 740.7 is amended by revising paragraph (d)(1) to read as
follows:
Sec. 740.7 Computers (CTP).
* * * * *
(d) Computer Tier 3--(1) Eligible countries. The countries that are
eligible to receive exports and reexports under this License Exception
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia,
Azerbaijan, Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia,
China (People's Republic of), Comoros, Croatia, Djibouti, Egypt, and
Yugoslavia (Serbia and Montenegro), Federal Republic of, Georgia,
India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Latvia,
Lebanon, Lithuania, Macau, Macedonia (The Former Yugoslav Republic of),
Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia,
Saudi Arabia, Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab
Emirates, Uzbekistan, Vanuatu, Vietnam, Yemen and Yugoslavia. As of May
19, 2001, Lithuania moves to Computer Tier 1.
* * * * *
7. Supplement No. 1 to part 740 is amended by removing ``Kosovo
(Serbian province of)'' and ``Montenegro'' from the list of ``Country
Group B'' countries and by adding, in alphabetical order, ``Yugoslavia
(Serbia and Montenegro), Federal Republic of''.
PART 744--AMENDED
8. Part 744 is amended by adding new section 744.16 to read as
follows:
Sec. 744.16 Restrictions on exports and reexports by U.S. persons to
specially designated persons on the list of Specially Designated
Nationals identified by the bracketed suffix initials [FRYM].
BXA maintains restrictions on exports and reexports of any item
subject to the EAR by U.S. persons to persons designated pursuant to
Executive Order 13088 of June 9, 1998, as amended by Executive Order
13192 of January 17, 2001 (Executive Order 13088, as amended). These
designated persons include individuals listed in the Annex to Executive
Order 13192, as well as persons designated by the Secretary of the
Treasury, in consultation with the Secretary of State pursuant to that
order (e.g., the former President of the Federal Republic of
Yugoslavia, Slobodan Milosevic; his close associates; persons
determined to be under open indictment by the International Criminal
Tribunal for the former Yugoslavia; and persons determined to have
sought, or to be seeking, to maintain or reestablish illegitimate
control over the political processes or economic resources of the
Federal Republic of Yugoslavia (Serbia and Montenegro)). Persons
designated pursuant to Executive Order 13088, as amended, are included
on the list of Specially Designated Nationals maintained by the
Department of the Treasury's Office of Foreign Assets Control (OFAC)
and identified by the bracketed suffix initials [FRYM]. The
requirements set forth in this section further the objectives of
Executive Order 13088, as amended.
(a) License requirements. (1) A license is required for all exports
and reexports of any item subject to the EAR by a U.S. person to a
person on the list of Specially Designated Nationals maintained by OFAC
and identified by the bracketed initials [FRYM].
(2) A U.S. person may also be required to seek separate
authorization from OFAC for an export or reexport to a designated
person identified by the bracketed initials [FRYM].
(b) License policy. Applications for exports and reexports of any
item subject to the EAR by a U.S. person to a Specially Designated
National identified by the bracketed initials [FRYM] will be reviewed
with a general policy of denial.
PART 746--[AMENDED]
9. Section 746.9 is revised to read as follows:
Sec. 746.9 The Federal Republic of Yugoslavia (Serbia and Montenegro).
United Nations Security Council Resolution 1160 of March 31, 1998
provides that all member States shall prevent the sale or supply to the
Federal Republic of Yugoslavia, including Kosovo, by their nationals or
from their territories or using their flag vessels and aircraft, of
arms and related materiel of all types, such as weapons and ammunition,
military vehicles and equipment and spare parts for the aforementioned,
and shall prevent the arming and training for terrorist activities
there. Executive Order 12918 of May 26, 1994 (3 CFR, 1994 comp., p.
899) authorizes the Secretary of State and the Secretary of Commerce,
under section 5 of the United Nations Participation Act and other
authorities available to the respective Secretaries, to take all
actions necessary to implement any arms embargo mandated by resolution
of the UNSC.
(a) License requirements. (1) Under Executive Order 12918 of May
26, 1994, and in conformity with UNSC Resolution 1160 of March 31,
1998, an embargo applies to the sale or supply to the Federal Republic
of Yugoslavia (Serbia and Montenegro), of arms and related materiel of
all types and regardless of origin, such as weapons and ammunition,
military vehicles and equipment, and spare parts for such items. You
will, therefore, need a license for the sale, supply or export to the
Federal Republic of Yugoslavia (Serbia and Montenegro) from the United
States of embargoed items, as listed in paragraphs (a)(1)(i) and (ii)
of this section. You will also need a license for the sale, supply,
export or reexport to the Federal Republic of Yugoslavia (Serbia and
Montenegro) of such items by any U.S. person in any foreign country or
other location. (Reexport controls imposed by this embargo apply only
to reexports by U.S. persons. Reexport controls on U.S.-origin items to
the Federal Republic of Yugoslavia (Serbia and Montenegro) set forth in
other parts of the EAR remain in effect.) You will also need a license
for the use of any U.S.-registered aircraft or vessel to supply or
transport to the Federal Republic of Yugoslavia (Serbia and Montenegro)
any such items. These requirements apply to the following items,
regardless of origin.
(i) Crime Control and Detection Equipment as identified on the CCL
under CC Columns No. 1, 2 or 3 in the Country Chart column of the
``License Requirements'' section of the applicable ECCN.
(ii) Items described by ECCNs ending in ``018''; and 0A978, 0A979,
0A982, 0A983, 0A984, 0A985, 0A986, 0A987, 0A988, 0A989, 0B986, 0E982,
0E984, 1A005, 1A984, 1A985, 1C992.b.-k., 2A993, 3A980, 3A981, 3D980,
3E980, 4A980, 4D980, 4E980, 5A980, 6A002, 6A003.b.3 and b.4, 6E001,
6E002, 9A980, and 9A991.a.
(2) Date of embargo. The licensing requirements in paragraph (a)(1)
of this section were effective on July 14, 1998, except for ECCN 0E982,
which took effect on September 13, 2000.
(b) Licensing policy. Applications for export or reexport of all
items listed in paragraphs (a)(1)(i) and (ii) of this section are
subject to a general policy of denial. Consistent with United Nations
Security Council Resolution 1160, this embargo is effective
notwithstanding the existence of any rights or obligations conferred or
imposed by any international agreement or any contract entered into or
any license or permit granted prior to the appropriate date referred to
in paragraph (a)(2) of this section, except to the extent provided in
regulations, orders, directives or licenses that may be issued in the
future under Executive Order 12918 or under the EAR.
[[Page 12848]]
(c) Related controls. The Department of State, Office of Defense
Trade Controls, maintains related controls on arms and military
equipment under the International Traffic in Arms Regulations (22 CFR
parts 120 through 130). You should also contact the Department of the
Treasury's Office of Foreign Assets Control concerning any restrictions
which might apply to U.S. persons involving financial transactions or
dealings with the Federal Republic of Yugoslavia (Serbia and
Montenegro).
Dated: February 26, 2001.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 01-5007 Filed 2-28-01; 8:45 am]
BILLING CODE 3510-33-P