[Federal Register Volume 72, Number 202 (Friday, October 19, 2007)]
[Rules and Regulations]
[Pages 59164-59166]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20642]
[[Page 59164]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 070817469-7596-01]
RIN 0694-AE11
Approved End-Users and Respective Eligible Items for the People's
Republic of China (PRC) Under Authorization Validated End-User (VEU)
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
amends the Export Administration Regulations (EAR) to list names of
end-users in the People's Republic of China (PRC) approved to receive
exports, reexports and transfers of certain items under Authorization
Validated End-User (VEU). In a final rule published in the Federal
Register, BIS revised and clarified U.S. export control policy for the
PRC, establishing Authorization VEU and identifying the PRC as the
initial eligible destination. This rule identifies five specific
validated end-users.
DATES: This rule is effective November 19, 2007. Although there is no
formal comment period, public comments on this regulation are welcome
on a continuing basis.
ADDRESSES: You may submit comments, identified by RIN 0694-AE11 (VEU),
by any of the following methods:
E-mail: [email protected] Include ``RIN 0694-AE11 (VEU)''
in the subject line of the message.
Fax: (202) 482-3355. Please alert the Regulatory Policy Division,
by calling (202) 482-2440, if you are faxing comments.
Mail or Hand Delivery/Courier: Sheila Quarterman, U.S. Department
of Commerce, Bureau of Industry and Security, Regulatory Policy
Division, 14th St. & Pennsylvania Avenue, NW., Room 2705, Washington,
DC 20230, Attn: RIN 0694-AE11 (VEU).
Send comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden, to David
Rostker, Office of Management and Budget (OMB), by e-mail to [email protected], or by fax to (202) 395-7285; and to the Regulatory
Policy Division, Bureau of Industry and Security, Department of
Commerce, P.O. Box 273, Washington, DC 20044. Comments on this
collection of information should be submitted separately from comments
on the final rule (i.e. RIN 0694-AE11 (VEU))--all comments on the
latter should be submitted by one of the three methods outlined above.
FOR FURTHER INFORMATION CONTACT: Michael Rithmire, Chairman, End-User
Review Committee, Bureau of Industry and Security, Department of
Commerce, P.O. Box 273, Washington, DC 20044; by telephone (202) 482-
6105; or by e-mail to [email protected].
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User (VEU): Initial List of Approved End-
Users, Eligible Items and Destinations
Consistent with U.S. Government policy to facilitate trade for
civilian end-uses in the PRC, BIS amended the EAR in a final rule on
June 19, 2007 (72 FR 33646) by creating a new authorization for
``validated end-users'' (VEUs) located in eligible destinations to
which eligible items (commodities, software and technology, except
those controlled for missile technology or crime control reasons) may
be exported, reexported or transferred without a license, in
conformance with Section 748.15 of the EAR. As established in the June
19 rule, the PRC is the initial destination eligible for exports,
reexports and transfers under Authorization VEU.
Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in the PRC that have a record of using
such items responsibly. VEUs will be able to obtain eligible items that
are on the Commerce Control List without having to wait for their
suppliers to obtain export licenses from BIS. A wide range of items are
eligible for Authorization VEU. In addition, Authorization VEU may be
used by foreign reexporters, and does not have an expiration date.
This final rule amends Supplement No. 7 to Part 748 of the EAR to
identify five companies with 14 eligible facilities in the PRC as VEUs
and to identify the items that may be exported, reexported, or
transferred to them. The VEUs listed in Supplement No. 7 to Part 748
were reviewed and approved by the U.S. Government in accordance with
the provisions of Section 748.15 and Supplement Nos. 8 and 9 to Part
748 of the EAR.
Approving these five end-users as VEUs is expected to facilitate
exports to civilian end-users in the PRC. After analyzing historical
licensing data, BIS anticipates that approval of these five companies
as VEUs should significantly reduce the value of trade that requires a
license for export or reexport to the PRC. Approximately $54 million of
items described as ``eligible items'' in this notice were licensed for
export to these five end-users in 2006. This $54 million represents
about 18% of all licensed exports to the PRC in 2006. Approval of these
companies as VEUs also represents a significant savings of time for
suppliers and end-users. Authorization VEU will eliminate the burden on
exporters and reexporters of preparing license applications and on BIS
for processing such applications, as exports and reexports will be made
without licenses. This savings will enable exporters and reexporters to
supply the VEUs much more quickly, thus enhancing the competitiveness
of the exporters, reexporters, and end-users in the PRC.
To ensure appropriate facilitation of exports and reexports, on-
site reviews of the VEUs may be warranted pursuant to paragraph
748.15(a)(2) and Section 7(iv) of Supplement No. 8 to Part 748 of the
EAR. If such reviews are warranted, BIS will inform the PRC Ministry of
Commerce.
Since August 21, 2001, the Export Administration Act has been in
lapse and the President, through Executive Order 13222 of August 17,
2001 (3 CFR, 2001 Comp, p. 783 (2002)), as extended most recently by
the Notice of August 15, 2007 (72 FR 46137, August 16, 2007), has
continued the EAR in effect under the International Emergency Economic
Powers Act. BIS continues to carry out the provisions of the Act, as
appropriate and to the extent permitted by law, pursuant to Executive
Order 13222.
Rulemaking
1. This final rule has been determined to be not significant for
purposes of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to nor be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This regulation involves
collections previously approved by the OMB under control number 0694-
0088, ``Multi-Purpose Application'', which carries a burden hour
estimate of 58 minutes to prepare and submit form BIS-748; and for
recordkeeping, reporting and review requirements in connection with
Authorization Validated End-User, which carries an estimated burden of
30
[[Page 59165]]
minutes per submission. This rule is expected to result in a decrease
in license applications submitted to BIS. Total burden hours associated
with the Paperwork Reduction Act and Office and Management and Budget
control number 0694-0088 are not expected to increase significantly as
a result of this rule.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. The provisions of the Administrative Procedure Act 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 (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 the Administrative Procedure Act 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, Regulatory Policy Division,
Bureau of Industry and Security, Department of Commerce, P.O. Box 273,
Washington, DC 20044.
List of Subjects in 15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
0
Accordingly, part 748 of the Export Administration Regulations (15 CFR
Parts 730-799) is amended as follows:
PART 748--[AMENDED]
0
1. The authority citation for 15 CFR Part 748 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR
44551 (August 7, 2006); Notice of August 15, 2007, 72 FR 46137
(August 16, 2007).
0
2. Supplement No. 7 to Part 748 is added to read as follows:
Supplement No. 7 to Part 748--Authorization Validated End-User (VEU):
List of Validated End-Users, Respective Items Eligible for Export,
Reexport and Transfer, and Eligible Destinations
------------------------------------------------------------------------
Eligible Items (By
Validated End-User ECCN) Eligible Destination
------------------------------------------------------------------------
Applied Materials China, Ltd 2B230; 2B350.g.3; Applied Materials
3B001.b.1; China, Ltd.--
3B001.c.2; 3B001.e; Shanghai Depot c/o
3B001.f.2; 3C001; Shanghai Applied
3C002. Materials Technical
Service Center, 368
Zhang Jiang Road,
Pudong Zhangjiang
Hi-Tech Park,
Shanghai, China
201203.
Applied Materials
China, Ltd.--
Beijing Depot c/o
Beijing Applied
Materials Technical
Service Center,
Bldg. 9, Area A,
No. 1 North Di
Sheng Street, BDA,
Beijing, China
100176.
Applied Materials
China, Ltd.--Wuxi
Depot c/o Sinotrans
Jiangsu Group
Fuchang Co., J5 A-B
Wuxi Export
Processing Zone 287
Gaolang Road, Wuxi
New District, Wuxi
Jiangsu China
214028.
BHA Aerocomposite Parts Co., 1A002.a; 1B001.f; BHA Aerocomposite
Ltd. 1C010.b; 1C010.e; Parts Co., Ltd.,
1D001 (limited to No. 4-388 Heibei
``software'' Road, Tanggu
specially designed Tianjin, China.
or modified for the
``development'',
``production'' or
``use'' of
equipment
controlled by
1B001.f); 1E001
(limited to
``technology''
according to the
General Technology
Note for the
``development'' or
``production'' of
items controlled by
1A002.a, 1B001.f,
1C010.b & .e, and
2B001.a);
2B001.e.1.a; 2D001
(limited to
``software,'' other
than that
controlled by
2D002, specially
designed or
modified for the
``development'',
``production'' or
``use'' of
equipment
controlled by
2B001.e.1.a); 2D002
(limited to
``software'' for
electronic devices,
even when residing
in an electronic
device or system,
enabling such
devices or systems
to function as a
``numerical
control'' unit,
capable of
coordinating
simultaneously more
than 4 axes for
``contouring
control''
controlled by
2B001.e.1.a).
National Semiconductor 3A001.a.5.a.1; National
Corporation. 3A001.a.5.a.2; Semiconductor Hong
3A001.a.5.a.3; Kong Limited,
3A001.a.5.a.4. Beijing
Representative
Office, Room 604,
CN Resources
Building, No. 8
Jianggumenbei A,
Beijing, China
100005.
National
Semiconductor Hong
Kong Limited,
Shanghai
Representative
Office, Room 903-
905 Central Plaza,
No. 227 Huangpi
Road, North
Shanghai, China
200003.
[[Page 59166]]
National
Semiconductor Hong
Kong Limited,
Shenzhen
Representative
Office, Room 1709
Di Wang Commercial
Centre, Shung Hing
Square, 5002 Shenna
Road East,
Shenzhen, China
518008.
Semiconductor Manufacturing 1C350.c.3; Semiconductor
International Corporation. 1C350.d.7; Manufacturing
2B006.b.1; 2B230; International
2B350.d.2; (Shanghai)
2B350.g.3; Corporation, 18
2B350.i.4; 3B001.a; Zhang Jiang Rd.,
3B001.b; 3B001.c; Pudong New Area,
3B001.d; 3B001.e; Shanghai, China
3B001.f; 3C001; 201203.
3C002; 3C004; Semiconductor
5B002; 5E002 Manufacturing
(limited to International
``technology'' (Tianjin)
according to the Corporation, 19
General Technology Xing Hua Avenue, Xi
Note for the Qing Economic
``production'' of Development Area,
integrated circuits Tianjin, China
controlled by ECCN 300385.
5A002 that has been Semiconductor
successfully Manufacturing
reviewed under the International
encryption review (Beijing)
process specified Corporation, No. 18
in Sec. Sec. Wen Chang Road,
740.17.b.2 or Beijing Economic-
740.17.b.3 and Technological
742.15 of the EAR). Development Area,
Beijing, China
100176.
Semiconductor
Manufacturing
International
(Chengdu)
Corporation,
Assembly and
Testing (AT2)
Facility, 8-8 Kexin
Road, Export
Processing Zone
(West Area),
Chengdu, China
611731.
Cension
Semiconductor
Manufacturing
Corporation, 3/F, 8-
1 Kexin Road,
Export Processing
Zone (West Area),
Chengdu, China
611731.
Shanghai Hua Hong NEC 1C350.c.3; Headquarters and
Electronics Company, Ltd. 1C350.d.7; 2B230; Fab. 1 of HHNEC,
2B350.d.2 2B350.g.3 No. 1188 Chuan Qiao
2B350.i.4; Rd., Pu Dong,
3B001.c.2; 3C002; Shanghai, China
3C004. 201206.
Fab. 2 of HHNEC, No.
668 Guo Shou Jing
Rd., Zhang Jiang
High Tech Park, Pu
Dong, Shanghai,
China 201203.
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Dated: October 16, 2007.
Christopher A. Padilla,
Assistant Secretary for Export Administration.
[FR Doc. E7-20642 Filed 10-18-07; 8:45 am]
BILLING CODE 3510-33-P