[Federal Register Volume 75, Number 196 (Tuesday, October 12, 2010)]
[Rules and Regulations]
[Pages 62462-62466]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-25438]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 100727314-0350-01]
RIN 0694-AE95
Additions to the List of Validated End-Users in the People's
Republic of China: Hynix Semiconductor China Ltd., Hynix Semiconductor
(Wuxi) Ltd. and Lam Research Corporation
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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[[Page 62463]]
SUMMARY: In this final rule, the Bureau of Industry and Security amends
the Export Administration Regulations (EAR) to add three end-users,
Hynix Semiconductor (China) Ltd., Hynix Semiconductor (Wuxi) Ltd. and
Lam Research Corporation to the list of validated end-users in the
People's Republic of China (PRC). With this rule, exports, reexports
and transfers (in-country) of certain items to one facility of Hynix
Semiconductor (China) Ltd., one facility of Hynix Semiconductor (Wuxi)
Ltd. and nine facilities of Lam Research Corporation in the PRC are now
authorized under Authorization Validated End-User (VEU).
DATES: This rule is effective October 12, 2010. 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-AE95, by any
of the following methods:
E-mail: [email protected] Include ``RIN 0694-AE95'' 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 Street & Pennsylvania Avenue, NW., Room 2705,
Washington, DC 20230, Attn: RIN 0694-AE 95.
Send comments regarding the collection of information associated
with this rule, including suggestions for reducing the burden, to
Jasmeet Seehra, Office of Management and Budget (OMB), by e-mail to
[email protected] or by fax to (202) 395-7285. Comments
on this collection of information should be submitted separately from
comments on the final rule (i.e., RIN 0694-AE95)--- all comments on the
latter should be submitted by one of the three methods outlined above.
FOR FURTHER INFORMATION CONTACT: Karen Nies-Vogel, Chairman, End-User
Review Committee, Bureau of Industry and Security, U.S. Department of
Commerce, 14th Street & Pennsylvania Avenue, NW., Washington, DC 20230;
by telephone (202) 482-3811, or by e-mail to [email protected].
SUPPLEMENTARY INFORMATION:
Background
Authorization Validated End-User (VEU): The List of Approved End-Users,
Eligible Items and Destinations in the People's Republic of China (PRC)
Consistent with U.S. Government policy to facilitate trade for
civilian end-users 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'' located in eligible destinations to which
eligible items may be exported, reexported or transferred under a
general authorization instead of a license, in conformance with section
748.15 of the EAR. Validated end-users may obtain eligible items that
are on the Commerce Control List, set forth in Supplement No. 1 to part
774 of the EAR, without having to wait for their suppliers to obtain
export licenses from BIS. Eligible items may include commodities,
software and technology, except those controlled for missile technology
or crime control reasons.
Authorization VEU is a mechanism to facilitate increased high-
technology exports to companies in eligible destinations that have a
verifiable record of civilian uses for such items. The validated end-
users listed in Supplement No. 7 to Part 748 of the EAR 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.
In addition to U.S. exporters, Authorization VEU may be used by foreign
reexporters as well as by persons transferring in-country, and does not
have an expiration date. Currently, validated end-users are located in
the PRC and India.
Addition of Hynix Semiconductor China Ltd., Hynix Semiconductor (Wuxi)
Ltd. and Lam Research Corporation to the List of Validated End-Users in
the PRC and the Corporations' Respective ``Eligible Items (By ECCN)''
and ``Eligible Destinations''
This final rule amends Supplement No. 7 to Part 748 of the EAR to
designate Hynix Semiconductor China Ltd. (HSCL), Hynix Semiconductor
(Wuxi) Ltd. (HSMC) and Lam Research Corporation (Lam), as validated
end-users, to identify the eligible facilities of HNSL, HSMC and Lam
and to identify the items that may be exported, reexported or
transferred (in-country) to HSCL's, HSMC's and Lam's specified eligible
facilities under Authorization VEU. The names and addresses of these
newly approved validated end-users and their eligible facilities are as
follows:
Validated End-Users
Hynix Semiconductor China Ltd.
Hynix Semiconductor (Wuxi) Ltd.
Lam Research Corporation.
Eligible Destination for Hynix Semiconductor China Ltd.
Hynix Semiconductor China Ltd., Lot K7/K7-1, Export Processing Zone,
Wuxi, Jiangsu, PR China.
Eligible Destination for Hynix Semiconductor (Wuxi) Ltd.
Hynix Semiconductor (Wuxi) Ltd., Lot K7/K7-1, Export Processing Zone,
Wuxi, Jiangsu, PR China.
Eligible Items That May Be Exported, Reexported or Transferred (In-
Country) to the Two Eligible Destinations (Facilities) Under HSCL's and
HSMC's Validated End-User Authorizations
Equipment for the manufacturing of semiconductor devices or materials
classified under Export Control Classification Numbers (ECCNs) 3B001.a,
3B001.b, 3B001.c, 3B001.d, 3B001.e, and 3B001.f.
Eligible Destinations for Lam Research Corporation
Lam Research (Shanghai) Service Co., 1st Floor, Area C, Hua Hong
Science & Technology Park, 177 Bi Bo Road, Zhangjiang Hi-Tech Park,
Pudong, Shanghai, China 201203.
Lam Research Shanghai Co., Ltd., No. 1 Jilong Rd., Room 424-2,
Waigaoqiao Free Trade Zone, Shanghai, China 200131.
Lam Research International Sarl (Shanghai TSS), c/o HMG Logistic
(Shanghai) Co., Ltd., No.55, West Shang Feng Road, Tangzhen, Pudong New
Area, Shanghai, China 201203.
Lam Research Shanghai Co., Ltd. (Shanghai WGQ Bonded Warehouse), No.
55, Fei la Road, Waigaoqiao Free Trade Zone, Pudong New Area, Shanghai,
China 200131.
Lam Research Co., Ltd. (Beijing Branch), Room 322 Dadi Mansion, No. 18
Hongda Beilu, Beijing Economic & Technological Development Area,
Beijing, China 100176.
Lam Research Co., Ltd. (Wuxi Representative Office), 5E, Bldg. C,
International Science & Technology Park, 2 Taishan Road, WND,
Wuxi, Jiangsu, China 214028.
Lam Research International Sarl (Wuxi EPZ Bonded Warehouse), c/o HMG
WHL Logistic (Wuxi) Co., Ltd., F1, Area 4, No. 1, Plot J3, No. 5
Gaolang East Road, Export Processing Zone, Wuxi, China 214028,
Lam Research Co., Ltd. (Wuhan Representative Office), Room 1810,
Guanggu International Building B,
[[Page 62464]]
456 Luoyu Road, East-Lake Hi-Tech Development Zone, Wuhan City, Hubei
Province, China 430074.
Lam Research International Sarl (Wuhan TSS), c/o HMG Wuhan Logistic
Co., Ltd., 1st--2nd Floor, No. 5 Building, Hua Shi Yuan Er Road,
Optical Valley Industry Park, East-Lake Hi-Tech Development Zone, Wuhan
City, Hubei Province, China 430223.
Eligible Items That May Be Exported, Reexported or Transferred (In-
Country) to the Nine Eligible Destinations (Facilities) Under Lam's
Validated End-User Authorization
Items classified under Export Control Classification Numbers (ECCNs)
2B230, 2B350.c, 2B350.d, 2B350.g, 2B350.h, 2B350.i, 3B001.c, 3B001.e
(items controlled under 3B001.c and 3B001.e are limited to parts and
components) 3D001, 3D002 (limited to ``software'' specially designed
for the ``use'' of stored program controlled items classified under
ECCN 3B001), and 3E001 (limited to ``technology'' according to the
General Technology Note for the ``development'' of equipment controlled
by ECCN 3B001).
Approving these end-users as validated end-users is expected to
further facilitate exports to civilian end-users in the PRC, and is
expected to result in a significant savings of time and resources for
suppliers and the eligible facilities. Authorization VEU eliminates the
burden on exporters and reexporters of preparing individual license
applications, as exports, reexports and transfers (in-country) of
eligible items to these facilities may now be made under general
authorization instead of under individual licenses. With this change,
exporters and reexporters can supply validated end-users in the PRC
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 validated end-users may be warranted pursuant to
paragraph 748.15(f)(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 12, 2010 (75 FR 50681 (August 16, 2010), 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 Requirements
1. This final rule has been determined to be not significant for
the purposes of Executive Order 12866.
2. This rule 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 and
estimated burden of 30 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 of
Management and Budget control number 0694-0088 are not expected to
increase significantly as a result of this rule.
Notwithstanding any other provisions 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.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. Pursuant to the Administrative Procedure Act (APA), 5 U.S.C.
553(b)(B), BIS finds good cause to waive requirements that the rule be
subject to notice and the opportunity for public comment because such
notice and comment here are unnecessary. In determining whether to
grant validated end-user designations, a committee of U.S. Government
agencies evaluates information about candidate companies and
commitments made by candidate companies, the nature and terms of which
are set forth in 15 CFR part 748, Supplement No. 8. The criteria for
evaluation by the committee are set forth in 15 CFR Sec. 748.15(a)(2).
The information, commitments and criteria for this extensive review
were all established through the notice of proposed rulemaking and
public comment process (71 FR 38313, July 2, 2006 and 72 FR 33646, June
19, 2007). Given the similarities between the authorizations provided
under Validated End-User (VEU) and export licenses (as discussed
further below), the publication of this information does not establish
any new policy; in publishing this final rule, BIS is simply adding
validated end-users within the established regulatory framework of the
VEU program. Further, this rule does not abridge the rights of the
public or eliminate the public's option to export under any of the
forms of authorization set forth in the EAR.
Publication of this rule in other than final form is unnecessary
because the authorization granted in the rule is similar to that
granted to exporters for individual licenses, which do not undergo
public review. Individual license application applicants and VEU
authorization applicants both provide the U.S. Government with
confidential business information. This information is extensively
reviewed according to the criteria for VEU authorizations, as set out
in 15 CFR 748.15(a)(2). Like individual export licenses, VEU
applications are vetted by an interagency committee drawing on public
and non-public sources, including licensing data, and measured against
the VEU authorization criteria. The authorizations granted under the
VEU program, and through individual export licenses, involve
interagency deliberation according to set criteria. Given the thorough
nature of the review, and in light of the parallels between this
process and the non-public review of license applications, public
comment on this authorization prior to publication is unnecessary.
Moreover, as noted above, the criteria and process for authorizing VEUs
were developed with public comments; allowing additional public comment
on this individual VEU authorization, which was determined according to
those criteria, is therefore unnecessary.
Section 553(d) of the APA generally provides that rules may not
take effect earlier than 30 days after they are published in the
Federal Register. However, section 553(d)(1) of the APA provides that a
substantive rule which grants or recognizes an exemption or relieves a
restriction, may take effect earlier. Today's final rule grants an
exemption from licensing procedures, so we make this final rule
effective immediately.
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
[[Page 62465]]
not applicable and no regulatory flexibility analysis has been
prepared.
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 730-774) 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 12, 2010, 75
FR 50681 (August 16, 2010).
0
2. Supplement No. 7 to Part 748 is amended by adding three entries,
``Hynix Semiconductor China Ltd.'', ``Hynix Semiconductor (Wuxi)
Ltd.'', and ``Lam Research Corporation'', in ``China (People's Republic
of)'' in alphabetical order 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
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Country Validated end-user Eligible items (by ECCN) Eligible destination
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China (People's Republic of)
* * * * * * *
Hynix Semiconductor 3B001.a, 3B001.b, 3B001.c, Hynix Semiconductor China Ltd. Lot K7/K7-1, Export
China Ltd. 3B001.d, 3B001.e, and Processing Zone Wuxi, Jiangsu, PR China.
3B001.f.
Hynix Semiconductor 3B001.a, 3B001.b, 3B001.c, Hynix Semiconductor (Wuxi) Ltd., Lot K7/K7-1, Export
(Wuxi) Ltd. 3B001.d, 3B001.e, and Processing Zone, Wuxi, Jiangsu, PR, China.
3B001.f.
Lam Research 2B230, 2B350.c, 2B350.d, Lam Research (Shanghai) Service Co., 1st Floor, Area C, Hua
Corporation. 2B350.g, 2B350.h, 2B350.i, Hong Science & Technology Park, 177 Bi Bo Road Zhangjiang
3B001.c, 3B001.e (items Hi-Tech Park, Pudong, Shanghai, China 201203.
controlled under 3B001.c Lam Research Shanghai Co., Ltd., No. 1 Jilong Rd., Room 424-
and 3B001.e are limited to 2, Waigaoqiao Free Trade Zone, Shanghai, China 200131.
parts and components), Lam Research International Sarl (Shanghai TSS), c/o HMG
3D001, 3D002 (limited to Logistic (Shanghai), Co., Ltd., No.55, West Shang Feng Road
``software'' specially , Tangzhen, Pudong New Area, Shanghai, China 201203.
designed for the ``use'' Lam Research Shanghai Co., Ltd., (Shanghai WGQ Bonded
of stored program Warehouse), No. 55, Fei la Road, Waigaoqiao Free Trade
controlled items Zone, Pudong New Area, Shanghai, China 200131.
classified under ECCN Lam Research Co., Ltd. (Beijing Branch), Room 322 Dadi
3B001), and 3E001 (limited Mansion, No. 18 Hongda Beilu Beijing Economic &
to ``technology'' Technological Development Area, Beijing, China 100176.
according to the General Lam Research Co., Ltd. (Wuxi Representative Office), 5E,
Technology Note for the Bldg. C International Science & Technology Park, 2
``development'' of Taishan Road, WND, Wuxi, Jiangsu, China 214028.
equipment controlled by Lam Research International Sarl (Wuxi EPZ Bonded Warehouse)
ECCN 3B001). c/o HMG WHL Logistic (Wuxi) Co., Ltd., F1, Area 4, No. 1,
Plot J3, No. 5 Gaolang East Road, Export Processing Zone,
Wuxi, China 214028.
Lam Research Co., Ltd. (Wuhan Representative Office), Room
1810, Guanggu International Building B, 456 Luoyu Road,
East-Lake Hi-Tech Development Zone, Wuhan City, Hubei
Province, China 430074.
Lam Research International Sarl (Wuhan TSS), c/o HMG Wuhan
Logistic Co., Ltd., 1st--2nd Floor, No. 5 Building, Hua Shi
Yuan Er Road, Optical Valley Industry Park, East-Lake Hi-
Tech Development Zone, Wuhan City, Hubei Province, China
430223.
* * * * * * *
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Dated: October 4, 2010.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2010-25438 Filed 10-8-10; 8:45 am]
BILLING CODE 3510-33-P