[Federal Register Volume 66, Number 190 (Monday, October 1, 2001)]
[Rules and Regulations]
[Pages 50090-50093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-24648]
[[Page 50089]]
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Part VI
Department of Commerce
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Bureau of Export Administration
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15 CFR Parts 742 and 744
India and Pakistan: Lifting of Sanctions, Removal of Indian and
Pakistani Entities, and Revision in License Review Policy; Final Rule
Federal Register / Vol. 66, No. 190 / Monday, October 1, 2001 / Rules
and Regulations
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 742 and 744
[Docket No. 010927238-1238-01]
RIN 0694-AC50
India and Pakistan: Lifting of Sanctions, Removal of Indian and
Pakistani Entities, and Revision in License Review Policy
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Final rule.
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SUMMARY: On September 22, 2001, President George W. Bush waived
sanctions placed on India and Pakistan in May 1998, including those
sanctions implemented by regulations issued on November 19, 1998 (63 FR
64322). This rule implements the waiver of these sanctions by removing
the policy of denial for exports and reexports of items controlled for
Nuclear Proliferation (NP) and Missile Technology (MT) reasons to India
and Pakistan and restoring the use of License Exceptions for these
items for entities not listed on the Entity List. In addition, this
rule removes the supplementary measures taken in connection with the
sanctions by removing a large number of Indian and Pakistani entities
from the Entity List. The license requirements and review policy for
the entities that remain on the list are set forth on the list itself.
DATES: This rule is effective October 1, 2001.
FOR FURTHER INFORMATION CONTACT: Eileen M. Albanese, Director, Office
of Exporter Services, Bureau of Export Administration, Telephone: (202)
482-0436.
SUPPLEMENTARY INFORMATION:
Background
In accordance with section 102(b) of the Arms Export Control Act,
President Clinton reported to the Congress on May 13, 1998, with regard
to India, and on May 30, 1998, with regard to Pakistan, his
determinations that those states had each detonated a nuclear explosive
device. The President directed that the relevant agencies and
instrumentalities of the United States take the necessary actions to
implement the sanctions described in section 102(b)(2) of that Act. In
light of the President's directive, the Bureau of Export Administration
(BXA) adopted certain regulations to implement the sanctions, as well
as certain supplementary measures to enhance the sanctions on November
19, 1998 (63 FR 64322).
On September 22, 2001, in Presidential Determination No. 2001-28,
and pursuant to section 9001(b) of the Department of Defense
Appropriations Act, 2000 (Public Law 106-79), President George W. Bush
determined and certified to the Congress that the application to India
and Pakistan of the sanctions and prohibitions contained in
subparagraphs (B), (C), and (G) of section 102(b)(2) of the Arms Export
Control Act would not be in the national security interest of the
United States. Furthermore, pursuant to section 9001(a) of the
Department of Defense Appropriations Act, 2000 (Public Law 106-79), the
President waived, with respect to India and Pakistan, to the extent not
already waived, the application of any sanction contained in sections
101 or 102 of the Arms Export Control Act.
Based on this Presidential Determination, this rule implements the
lifting of these sanctions by removing section 742.16 of the Export
Administration Regulations (EAR), which sets forth the policy of denial
for exports and reexports of items controlled for Nuclear Proliferation
(NP) and Missile Technology (MT) reasons to India and Pakistan. A
license will continue to be required to India and Pakistan for these
items, but the license review policy will revert to a case-by-case
review, as set forth in sections 742.3 and 742.5 of the EAR for
nuclear- and missile-controlled items, respectively. Also, exports of
these items to India and Pakistan, other than exports to entities
listed on the Entity List, are again eligible for the use of License
Exceptions as provided in Part 740 of the EAR.
In light of the President's determination, this rule also removes
the supplementary measures, implemented in 1998, by removing sections
744.11, ``Restrictions on certain government, parastatal, and private
entities in Pakistan and India,'' and 744.12 , ``Restrictions on
certain military entities in Pakistan and India,'' from the EAR. This
rule also revises the list of Indian and Pakistani entities on the
Entity List pursuant to section 744.1(c) of the EAR. License
requirements for Indian and Pakistani entities on the Entity List are
contained in Supplement No. 4 to Part 744 of the EAR. The license
review policy for export and reexports to all Indian and Pakistani
listed entities of items classified as EAR99 (items that are subject to
the EAR, but are not listed on the Commerce Control List) is
presumption of approval, and the license review policy for items listed
on the Commerce Control List is case-by-case.
The removal of entities from the Entity List eliminates the
existing license requirements in Supplement No. 4 to Part 744 for
exports to those entities. The removal of entities from the Entity List
does not relieve exporters or reexporters of their obligations under
part 744 of the EAR, which provides that a license is required even
when one would not otherwise be necessary, if an exporter knows, has
reason to know, or is otherwise informed by BXA that the item will be
used in activities related to nuclear, chemical, or biological weapons,
or missile delivery systems. BXA strongly urges the use of Supplement
No. 3 to part 732 of the EAR, ``BXA's `Know Your Customer' Guidance and
Red Flags'' when exporting or reexporting to India and Pakistan.
Although the Export Administration Act expired on August 20, 2001,
Executive Order 13222 of August 17, 2001 (66 FR 44025, August 22, 2001)
continues the Regulations in effect under the International Emergency
Economic Powers Act.
Rulemaking Requirements
1. This final rule has been determined to be significant for
purposes of E.O. 12866.
2. This rule contains and involves collections of information
subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et
seq.). These collections have been approved by the Office of Management
and Budget under control number 0694-0088, ``Multi-Purpose
Application,'' which carries a burden hour estimate of 40 minutes to
prepare and submit electronically and 45 minutes to submit manually on
form BXA-748P; and 0694-0111, ``India Pakistan Sanctions,'' which
carries a burden hour estimate of 40 minutes to prepare and submit
electronically and 45 minutes to submit manually on form BXA-748P.
Notwithstanding any other provision of law, no person is required to
respond nor shall any person be subject to a penalty for failure to
comply with, a collection of information subject to the requirements of
the Paperwork Reduction Act, unless that collection of information
displays a currently valid OMB Control Number.
3. This rule does not contain policies with Federalism implications
as this term is defined 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
[[Page 50091]]
date, are inapplicable because this regulation involves a military and
foreign affairs function of the United States (see 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 Sharron
Cook, Regulatory Policy Division, Bureau of Export Administration,
Department of Commerce, P.O. Box 273, Washington, DC 20044 or E-mailed
to [email protected].
List of Subjects
15 CFR Part 742
Exports, Foreign trade.
15 CFR Part 744
Exports, Foreign trade, Reporting and recordkeeping requirements.
Accordingly, parts 742 and 744 of the Export Administration
Regulations (15 CFR parts 730-799) are amended as follows:
1. The authority citation for 15 CFR part 742 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
18 U.S.C. 2510 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. 12938, 59 FR 59099, 3 CFR,
1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, August 22, 2001; Notice of November 9,
2000, 65 FR 68063, 3 CFR, 2000 Comp., p. 408.
2. The authority citation for 15 CFR part 744 is revised 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.; 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. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR
44025, August 22, 2001; Notice of November 9, 2000, 65 FR 68063, 3
CFR, 2000 Comp., p. 408.
PART 742--[AMENDED]
Sec. 742.16 [Removed]
3. Section 742.16 is removed and reserved.
PART 744--[AMENDED]
Sec. 744.1 [Amended]
4. Section 744.1 is amended by revising the last sentence in
paragraph (c) to read as follows: ``No License Exceptions are available
for exports or reexports to listed entities of specified items, except
License Exceptions for items listed in Sec. 740.2(a)(5) of the EAR
destined to listed Indian or Pakistani entities intended to ensure the
safety of civil aviation and safe operation of commercial passenger
aircraft.''
Secs. 744.11 and 744.12 [Removed]
5. Sections 744.11 and 744.12 are removed and reserved.
6. Supplement No. 4 to part 744 is amended by removing Appendixes A
and B and by revising the country ``India'' and ``Pakistan'' entries to
read as follows:
Supplement No. 4 to Part 744--Entity List
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Country Entity License requirement License review policy Federal Register citation
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* * * * * * *
India..................... Bharat Dynamics Limited.. For all items Case-by-case for all 63 FR 64322, 11/19/98
subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/01/01]
for EAR99 items.
The following For all items Case-by-case for all 63 FR 64322, 11/19/98
subordinates of Defense subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Research and Development Presumption of approval [Insert FR Cite, 10/1/01]
Organization (DRDO). for EAR99 items.
Armament Research and
Development
Establishment (ARDE).
Defense Research and
Development Lab (DRDL),
Hyderabad.
Missile Research and
Development Complex.
Solid State Physics
Laboratory.
The following Department For all items Case-by-case for all 63 FR 64322, 11/19/98
of Atomic Energy subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
entities. Presumption of approval [Insert FR Cite, 10/1/01]
Bhabha Atomic Research for EAR99 items.
Center (BARC).
Indira Gandhi Atomic
Research Center (IGCAR).
Indian Rare Earths.......
Nuclear reactors
(including power
plants), fuel
reprocessing and
enrichment facilities,
heavy water production
facilities and their
collocated ammonia
plants.
[[Page 50092]]
Indian Space Research For all items Case-by-case for all 63 FR 64322, 11/19/98
Organization (ISRO) subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
headquarters in Presumption of approval [Insert FR Cite, 10/1/01]
Bangalore, and the for EAR99 items.
following subordinate
entities.
ISRO Telemetry, Tracking
and Command Network
(ISTRAC).
ISRO Inertial Systems
Unit (IISU),
Thiruvananthapuram.
Liquid Propulsion Systems
Center.
Solid Propellant Space
Booster Plant (SPROB).
Space Applications
Center, (SAC), Ahmadabad.
Sriharikota Space Center
(SHAR).
Vikram Sarabhai Space
Center (VSSC),
Thiruvananthapuram.
* * * * * * *
Pakistan.................. Abdul Qader Khan Research For all items Case-by-case for all 63 FR 64322, 11/19/98
Laboratories, a.k.a. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Khan Research Presumption of approval [Insert FR Cite, 10/1/01]
Laboratories (KRL), for EAR99 items.
a.k.a. Engineering
Research Laboratories
(ERL), Kahuta.
Al Technique Corporation For all items Case-by-case for all 63 FR 64322, 11/19/98
of Pakistan, Ltd. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Allied Trading Co........ For all items Case-by-case for all 63 FR 64322, 11/19/98
subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
ANZ Importers and For all items Case-by-case for all 63 FR 64322, 11/19/98
Exporters, Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Defence Science and For all items Case-by-case for all 63 FR 64322, 11/19/98
Technology Organization subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
(DESTO), Rawalpindi. Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
High Technologies, Ltd., For all items Case-by-case for all 63 FR 64322, 11/19/98
Islamabad. subject to the EAR. items listed ion the 65 FR 14444, 03/17/00
CCL. Presumption of [Insert FR Cite, 10/1/01]
approval for EAR99 items.
Karachi CBW Research For all items Case-by-case for all 63 FR 64322, 11/19/98
Institute, University of subject to the EAR. items listed on the CCL. [Insert FR Cite, 10/1/01]
Karachi's Husein Ebrahim Presumption of approval
Jamal Research Institute for EAR99 items.
of Chemistry (HEJRIC).
Lastech Associates, For all items Case-by-case for all 63 FR 64322, 11/19/98
Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Machinery Master For all items Case-by-case for all 63 FR 64322, 11/19/98
Enterprises, Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Maple Engineering Pvt. For all items Case-by-case for all 63 FR 64322, 11/19/98
Ltd. Consultants, subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Importers and Exporters. Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Orient Importers and For all items Case-by-case for all 63 FR 64322, 11/19/98
Exporters, Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
[[Page 50093]]
Pakistan Atomic Energy For all items Case-by-case for all 63 FR 64322, 11/19/98
Commission (PAEC), and subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
the following Presumption of approval [Insert FR Cite, 10/1/01]
subordinate entities. for EAR99 items.
National Development
Complex (NDC).
Nuclear reactors
(including power
plants), fuel
reprocessing and
enrichment facilities,
all uranium processing,
conversion and
enrichment facilities,
heavy water production
facilities and any
collocated ammonia
plants.
Pakistan Institute for
Nuclear Science and
Technology (PINSTECH).
People's Steel Mills, For all items Case-by-case for all 63 FR 64322, 11/19/98
Karachi. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Prime International...... For all items Case-by-case for all 63 FR 64322, 11/19/98
subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Space and Upper For all items Case-by-case for all 63 FR 64322, 11/19/98
Atmospheric Research subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Commission (SUPARCO). Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Technical Services, For all items Case-by-case for all 63 FR 64322, 11/19/98
Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
The Tempest Trading For all items Case-by-case for all 63 FR 64322, 11/19/98
Company, Islamabad. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Unique Technical For all items Case-by-case for all 63 FR 64322, 11/19/98
Promoters. subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Presumption of approval [Insert FR Cite, 10/1/01]
for EAR99 items.
Wah Chemical Product For all items Case-by-case for all 63 FR 64322, 11/19/98
Plant. subject to the EAR. items listed on the CCL. [Insert FR Cite, 10/1/01]
Presumption of approval
for EAR99 items.
Wah Munitions Plant, For all items Case-by-case for all 63 FR 64322, 11/19/98
a.k.a. Explosives subject to the EAR. items listed on the CCL. 65 FR 14444, 03/17/00
Factory, Pakistan Presumption of approval [Insert FR Cite, 10/1/01]
Ordnance Factories (POF). for EAR99 items.
* * * * * * *
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Dated: September 27, 2001.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 01-24648 Filed 9-28-01; 8:45 am]
BILLING CODE 3510--33--P