[Federal Register: August 30, 2005 (Volume 70, Number 167)]
[Rules and Regulations]               
[Page 51251-51252]
                         

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 738, 742 and 744

[Docket No. 050822227-5227-01]
RIN A694-AD44

 
Removal of License Requirements for Exports and Reexports to 
India of Items Controlled Unilaterally for Nuclear Nonproliferation 
Reasons and Removal of Certain Indian Entities From the Entity List

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: On July 18, 2005, President George W. Bush and Indian Prime 
Minister Manmohan Singh announced the completion of the Next Steps in 
Strategic Partnership (NSSP) with India. The proposed cooperation 
outlined in the NSSP has progressed through a series of reciprocal 
steps that built on one another, including steps related to creating 
the appropriate environment for successful high-technology commerce. 
This rule implements two steps the United States has agreed to take as 
part of the final phase of NSSP, namely, the removal of license 
requirements for exports and reexports of items controlled unilaterally 
by the United States for nuclear nonproliferation reasons to India and 
the removal of six Indian entities from the Entity List.

DATES: This rule is effective August 30, 2005.

FOR FURTHER INFORMATION CONTACT: Eileen M. Albanese, Office of Exporter 
Services, Bureau of Industry and Security, Telephone: (202) 482-0436.

SUPPLEMENTARY INFORMATION:

Background

    In November 2001, the Indian Prime Minister and the President of 
the United States committed India and the United States to a strategic 
partnership. Since then, the two countries have significantly 
strengthened bilateral cooperation and commerce in space, civil nuclear 
energy, and dual-use technology. On January 12, 2004, the two leaders 
announced the NSSP with the aim of implementing a shared vision to 
expand cooperation, deepening the ties of commerce and friendship 
between the two nations, and increasing stability in Asia and beyond.
    The proposed cooperation has progressed through a series of 
reciprocal steps that built on one another. It included expanded 
engagement on nuclear regulatory and safety issues and missile defense, 
ways to enhance cooperation regarding peaceful uses of space 
technology, and steps to create the appropriate environment for 
successful high-technology commerce. In bringing the NSSP to 
completion, the United States and India resolve to transform their 
relationship by establishing a global partnership, with the mutual 
commitment to promoting stability, democracy, prosperity, and peace 
throughout the world. This rule implements revisions to the Export 
Administration Regulations (EAR) as part of the completion of the NSSP.

Effects of This Rule

    This rule removes export and reexport license requirements for 
items controlled unilaterally by the United States for nuclear 
nonproliferation reasons (i.e., items that are not subject to the 
Nuclear Suppliers Group regime). The rule accomplishes this change by 
revising Sec.  742.3(a)(2) to except India from this license 
requirement and by removing the ``X'' from the box at the intersection 
of the row for India and the column labeled NP 2 of the Commerce 
Country Chart (Supplement No. 1 to Part 738 of the EAR). Removal of 
export license requirements for these items is expected to reduce the 
number of license applications for exports and reexports to India.
    This rule also removes six Indian entities from the Entity List 
(Supplement No. 4 to Part 744 of the EAR). Three of these entities are 
Department of Atomic Energy entities, ``Tarapur (TAPS 1 & 2),'' 
``Rajasthan (RAPS 1& 2),'' and ``Kudankulam (1 & 2).'' TAPS 1 & 2 and 
RAPS 1 & 2 are under International Atomic Energy Agency (IAEA) 
safeguards. Kudankulam 1 & 2 is under construction. The Government of 
India and the IAEA have agreed that this facility will be subject to 
IAEA safeguards upon completion. The other three entities are Indian 
Space Research Organization (ISRO) subordinate entities, specifically, 
``ISRO Telemetry, Tracking and Command Network (ISTRAC),'' ``ISRO 
Inertial Systems Unit (IISU), Thiruvananthapuram,'' and ``Space 
Applications Center (SAC), Ahmadabad.''
    Neither the removal of the unilateral nuclear nonproliferation 
license requirement nor the removal of the entities from the Entity 
List by this rule removes any other license requirements imposed by the 
EAR. Among others, the end use license requirements of part 744, 
including the license requirements for the nuclear end uses specified 
in Sec. Sec.  744.2, 744.5 and 744.6, and missile end use license 
requirements specified in Sec. Sec.  744.3 and 744.6, continue to 
apply. This rule also does not affect license requirements related to 
entities that remain on the Entity List. For certain of those entities, 
a license is required for all items subject to the EAR; for others, a 
license is required for items with a classification other than (1) 
EAR99 or (2) where the third through fifth digits of the ECCN are 
``999.'' BIS strongly urges parties to consult Supplement No. 3 to part 
732 of the EAR, ``BIS's ``Know Your Customer'' Guidance and Red 
Flags,'' when exporting or reexporting items to India.
    Although the Export Administration Act of 1979 (EAA), as amended, 
expired on August 20, 2001, Executive Order 13222 of August 17, 2001 (3 
CFR, 2001 Comp., p. 783 (2002)) as extended by the Notice of August 2, 
2005, 70 FR 45273 (August 5, 2005), continues the EAR in effect under 
the International Emergency Economic Powers Act (IEEPA).

Rulemaking Requirements

    1. This 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 numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. 
Miscellaneous and recordkeeping activities account for 12 minutes per 
submission. Total burden hours associated with the Paperwork Reduction 
Act and Office and Management and Budget control number 0694-0088 are 
expected to decrease because of this regulation. BIS anticipates that 
this rule will reduce the number of license applications for

[[Page 51252]]

exports and reexports to India by about 150 to 200 annually.
    Send comments regarding these burden estimates or any other aspect 
of this collection of information, including suggestions for reducing 
the burden, to David Rostker, OMB Desk Officer, by e-mail at 
[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.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in 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 or 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 rule. Because a notice of proposed 
rulemaking and an opportunity for public comment are not required to be 
given for this rule by 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.

List of Subjects

15 CFR Part 738

    Exports, Foreign Trade.

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.


0
Accordingly, parts 738, 742 and 744 of the Export Administration 
Regulations (15 CFR Parts 730-799) are amended as follows:

PART 738--[AMENDED]

0
1. The authority citation for 15 CFR part 738 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 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; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; 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 2, 2005, 70 FR 45273 (August 5, 2005).

Supplement No. 1 to Part 738 [Amended]

0
2. Supplement No. 1 to part 738--(Commerce Country Chart) is amended by 
removing the ``X'' from the column heading NP 2 in the row for India.

PART 742--[AMENDED]

0
3. The authority citation for 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; 
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; Sec. 1503, 
Pub. L. 108-11,117 Stat. 559; 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, 3 CFR, 
2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 
2003, 68 FR 26459, May 16, 2003; Notice of November 4, 2004, 69 FR 
64637 (November 8, 2004); Notice of August 2, 2005, 70 FR 45273 
(August 5, 2005).

0
4. Section 742.3 is amended by revising paragraph (a)(2) to read as 
follows:


Sec.  742.3  Nuclear Nonproliferation.

    (a) * * *
    (2) If NP Column 2 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the applicable ECCN, a license is 
required to Country Group D:2 (see Supplement No. 1 to part 740 of the 
EAR) except India.
* * * * *

PART 744--[AMENDED]

0
5. 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; Sec. 901-911, Pub. L. 106-
387; Sec. 221, Pub. L. 107-56; 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. 12947, 60 
FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 
208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 
66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of November 4, 2004, 
69 FR 64637 (November 8, 2004); Notice of August 2, 2005, 70 FR 
45273 (August 5, 2005).

Supplement No. 4 to Part 744 [Amended]

0
6. Supplement No. 4 to part 744, under the country of India is amended 
by:
0
a. Removing the following subordinate entities from the entry for the 
Indian Space Research Organization (ISRO): ISRO Telemetry, Tracking and 
Command Network (ISTRAC), ISRO Inertial Systems Unit (IISU), 
Thiruvananthapuram, and Space Applications Center (SAC), Ahmadabad;
0
b. Adding to the entry for ``Nuclear reactors (including power plants) 
not under International Atomic Energy Agency (IAEA) safeguards, fuel 
processing and enrichment facilities, heavy water production facilities 
and their collocated ammonia plants,'' immediately following the word 
``safeguards,'' the phrase ``(excluding Kundankulam 1 and 2)'; and
0
c. Removing, in its entirety, the second entry for the Department of 
Atomic Energy which reads: ``The following Department of Atomic Energy 
entities: Nuclear reactors (including power plants) subject to 
International Atomic Energy Agency (IAEA) safeguards: Tarapur (TAPS 1 & 
2), and ``Rajasthan (RAPS 1 & 2).''
* * * * *

    Dated: August 24, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 05-17241 Filed 8-29-05; 8:45 am]

BILLING CODE 3510-33-P