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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations
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security concerns that formed the basis for the issuance of E.O. 14104 of February 10, 2021.
Country Group D:1
The rule removes Burma from EAR
Country Group B in supplement no. 1 to part 740 Country Groups and moves it into the more restrictive Country Group D:1. This action makes certain license exceptions or portions of license exceptions unavailable for Burma, or imposes conditions on the use of such license exceptions, including as follows:
Shipments of Limited Value LVS
740.3. This license exception is no longer available for Burma due to Burmas removal from Country Group B.
Shipments to Group B Countries GBS 740.4. This license exception is no longer available for Burma due to Burmas removal from Country Group B.
Technology and Software under Restriction TSR 740.6. This license exception is no longer available for Burma due to Burmas removal from Country Group B.
Temporary Imports, Exports, Reexports, and Transfers in-country TMP 740.9. Paragraph b Exports of items temporarily in the United States of this license exception places restrictions on shipments of national security NS controlled items to D:1
countries, and thus the provisions in paragraph b that would authorize exports of NS-controlled items to Country Group B but not Country Group D:1 are no longer available for shipments destined to Burma.
Servicing and Replacement Parts and Equipment RPL 740.10. This license exception authorizes certain items to be returned to Country Group B see a4 Reexports, and b3iiC
return of defective or unacceptable equipment. These two paragraphs are no longer available for the return of such items to Burma due to Burmas removal from Country Group B.
Aircraft, Vessels, and Spacecraft AVS 740.15. Paragraph b of this license exception authorizes exports and reexports of certain equipment and spare parts for permanent use upon a vessel or aircraft, except for vessels registered in a D:1 country or aircraft registered in, owned or controlled by, or under charter or lease to a country included in Country Group D:1, or a national of any of these countries. With the publication of this rule, Burma is a D:1 country, and restrictions in this paragraph are applied to exports for vessels registered in Burma, or aircraft registered in, owned or controlled by, or under charter or lease to Burma or a Burmese national. Paragraph c of this license exception authorizes certain
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exports to U.S. or Canadian vessels, planes and airline installations or agents except for exports to D:1 countries and for aircraft located in, or owned, operated or controlled by, or leased or chartered to a D:1 country. Burma is now subject to all D:1-related specified restrictions set forth in paragraph c of 740.15.
Additional Permissive Reexports APR 740.16j. Paragraph j of this license exception authorizes certain reexports of nuclear non-proliferation controlled items except when also controlled for NS reasons when destined to a D:1 country. Burma is now a D:1 country and will thus no longer be eligible for reexports of NScontrolled items under this provision.
Encryption commodities, technology, and software ENC
740.17. Paragraph b2ivB of this license exception places restrictions on certain encryption technology exports to users in D:1 countries. These restrictions shall apply to users in Burma now, due to Burmas placement in Country Group D:1.
The restrictions on the export, reexport, and transfer in-country of certain microprocessors to military end uses and end users in Country Group D:1, pursuant to 744.17 Restrictions on certain exports, reexports, and transfers in-country of microprocessors and associated software and technology for military end uses and to military end users, apply to transactions to Burma now that it is in Country Group D:1 as a result of this rule. Furthermore, the restrictions in 744.7 Restrictions on certain exports to and for the use of certain foreign vessels or aircraft on certain exports and reexports to vessels and aircraft located in ports in a D:1 country now apply to exports and reexports to Burma, and restrictions in that section that apply to aircraft located in, or owned, operated or controlled by, or leased or chartered to, Country Group D:1 or a national of such country, now apply to aircraft located in, or owned, operated or controlled by, or leased or chartered to Burma or a Burmese national. Finally, the addition of Burma to Country Group D:1 expands the applicability of 736.2b3, General Prohibition Three, by imposing licensing requirements for reexports of foreign-produced direct products of certain U.S.-origin technology and software to Burma.
Burma remains in Country Groups D:3
countries raising proliferation concerns related to chemical and biological weapons and D:5 U.S. arms-embargoed countries. See supplement no. 1 to part 740 of the EAR.

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Licensing Policy As noted below, this rule adds Burma to the countries subject to the military end use and end user controls, and associated licensing policies, in 744.21. This rule also adds Burma to the list of countries subject to the licensing policy in 742.4b7 NScontrolled items of the EAR. The license review policy for NS-controlled items in 742.4b7 applies to transactions with the other countries included in 744.21, and now applies to Burma as well.
Section 744.21
This rule adds Burma to the countries subject to the military end use and military end user MEU restrictions in 744.21 of the EAR. In addition to the license requirements for items specified on the Commerce Control List CCL, 744.21 prohibits the export, reexport, or transfer in-country without a license of items subject to the EAR that are listed in supplement no. 2 to part 744
List of Items Subject to the Military End Use or End User License Requirement of 744.21to the Peoples Republic of China China, the Russian Federation, or Venezuela, and with the publication of this rule, Burma, in certain circumstances. Such exports, reexports, or transfers in-country require a license if, at the time of the export, reexport, or transfer in-country, the exporter, reexporter, or transferor incountry has knowledge, as defined in 772.1 of the EAR that the item is intended, entirely or in part, for a military end use, or military end user, in Burma, China, the Russian Federation, or Venezuela. Applications submitted for the export or reexport to Burma, or transfer within Burma, of an item in supplement no. 2 to part 744
under this section will be reviewed with a presumption of denial.
This rule also adds a reference to Burma in supplement no. 7 to part 744Military End User List but does not add any entities located in Burma to the list of Military End Users MEU List at this time. The MEU List notifies the public that certain entities are subject to the military end-user prohibitions in 744.21 of the EAR. BIS may add entities located in Burma to the MEU
List in the future.
This rule also corrects a typo in the last sentence of the introductory text to supplement no. 7 to part 744. The correction removes the phrase supplement no. 2 to part 744 from the last sentence of the introductory text and adds in its place the phrase supplement no. 7 to part 744.
Supplement no. 7 to part 744 is the
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