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Federal Register / Vol. 86, No. 7 / Tuesday, January 12, 2021 / Rules and Regulations
Commerce estimates that this rule will result in a minimal increase to the number of license requests submitted to BIS annually.
This rule does not contain policies with federalism implications as that term is defined under E.O. 13132.
For the purposes of E.O. 13771, Reducing Regulation and Controlling Regulatory Costs, this rule is issued with respect to a national security function of the United States. The costbenefit analysis indicates that the rule is intended to improve national security as its primary direct benefit. The U.S.
Government is acting to protect U.S.
national security interests, which are directly related to U.S. economic security interests. An inflexible approach to implementing the MTCRs strong presumption of denial for the subset of UAS specified in this rule presents a competitive disadvantage for the United States, and other MTCR
partners, by restraining industry from fully participating in the expanding commercial UAS market. Additionally, the U.S. Government needs to meet the growing demand for key tools, and capabilities and the development and enhancement of security relationships from countries that want to work with the U.S. on counter-terrorism, border control, and other mutual security interests. The revised U.S. national policy announced on July 24, 2020, is consistent with U.S. national security interests, as the United States will continue to maintain specific controls on transfers of UAS that present higher risks of use in or support for WMD
deliverysuch as cruise missiles, hypersonic aerial vehicles, and advanced unmanned combat aerial vehicleswhile not unduly impeding exports for growing commercial and conventional military applications.
Accordingly, this rule meets the requirements set forth in the April 5, 2017 OMB guidance implementing E.O.
13771 and is exempt from the requirements of E.O. 13771.

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Paperwork Reduction Act Requirements 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 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 rule involves the following OMB
approved collections of information
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subject to the PRA: 06940088, MultiPurpose Application, which carries a burden hour estimate of 29.6 minutes for a manual or electronic submission;
06940096 Five Year Records Retention Period, which carries a burden hour estimate of less than 1
minute; and 06070152 Automated Export System AES Program, which carries a burden hour estimate of 3
minutes per electronic submission. This rule changes the respondent burden by increasing the estimated number of submissions by 20. Specific license application submission estimates are further discussed in the preamble of this rule where the regulatory revision is explained. The additional burden falls within the estimated burden approved by OMB for the information collections 06940088, 06940096, and 06070152.
Any comments regarding these collections of information, including suggestions for reducing the burden, may be submitted online at https
www.reginfo.gov/public/do/PRAMain.
Find the particular information collection by using the search function and entering either the title of the collection or the OMB Control Number.
Administrative Procedure Act and Regulatory Flexibility Act Requirements Pursuant to Section 4821 of ECRA, this action is exempt from the Administrative Procedure Act 5 U.S.C.
553 requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date.
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. Accordingly, no regulatory flexibility analysis is required, and none has been prepared.
List of Subjects in 15 CFR Part 742
Exports, Terrorism.
Accordingly, part 742 of the Export Administration Regulations 15 CFR
parts 730774 is amended as follows:
PART 742AMENDED
1. The authority citation for part 742
is revised to read as follows:

Authority: 50 U.S.C. 48014852; 50 U.S.C.
4601 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C.

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3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201
et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L.
10811, 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 200323, 68 FR
26459, 3 CFR, 2004 Comp., p. 320; Notice of November 12, 2020, 85 FR 72897 November 13, 2020.

2. Section 742.5 is amended by revising paragraph b1 to read as follows:

742.5

Missile technology.

b
1 Applications to export and reexport items identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart column of the License Requirements section will be considered on a case-by-case basis to determine whether the export or reexport would make a material contribution to the proliferation of missiles. Applications for exports and reexports of such items contained in Category 7A or described by ECCN
9A101 on the CCL will be considered favorably if such exports or reexports are destined to a manned aircraft, satellite, land vehicle, or marine vessel, in quantities appropriate for replacement parts and components for such applications. When an export or reexport is deemed to make a material contribution to the proliferation of missiles, the license will be denied.
Note 1 to paragraph b1: Applications to export and reexport an Unmanned Aerial Vehicle UAV that has a range and payload capability equal to or greater than 300 km/
500 kg but a maximum true airspeed of less than 800 km/hr, and items controlled for Missile Technology reasons for the design, development, production, or use of UAV
systems that meet these parameters, will not be subject to a policy of denial but will instead be reviewed on a case-by-case basis to determine whether the export or reexport will be used in support of WMD activities or military activities contrary to U.S. national security, or whether there is a risk of diversion to support such activities.

Matthew S. Borman, Deputy Assistant Secretary for Export Administration.
FR Doc. 202027983 Filed 11121; 8:45 am BILLING CODE 351033P

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