Federal Register - March 8, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 43 / Monday, March 8, 2021 / Rules and Regulations
designee. The absence of BIS
notification does not excuse the exporter from compliance with the license requirements of paragraph a of this section.
1 Military End-User MEU List. BIS
may inform and provide notice to the public that certain entities are subject to the additional prohibition described under this paragraph b following a determination by the End-User Review Committee ERC that a specific entity is a military end user pursuant to this section and therefore any exports, reexports, or transfers in-country to that entity represent an unacceptable risk of use in or diversion to a military end use or military end user in Burma, China, the Russian Federation, or Venezuela. Such entities may be added to supplement No. 7 to part 744
Military End-User MEU List through Federal Register notices published by BIS, and will thus be subject to a license requirement for exports, reexports, or transfers in-country of items specified in supplement No. 2 to part 744. The listing of entities under supplement No.
7 to part 744 is not an exhaustive listing of military end users for purposes of this section. Exporters, reexporters, and transferors are responsible for determining whether transactions with entities not listed on supplement No. 7
to part 744 are subject to a license requirement under paragraph a of this section. The process in paragraph this b1 for placing entities on the MEU
List is only one method BIS may use to inform exporters, reexporters, and transferors of license requirements under this section.
i End-User Review Committee ERC.
The End-User Review Committee ERC, composed of representatives of the Departments of Commerce Chair, State, Defense, Energy and, where appropriate, the Treasury, makes all decisions regarding additions to, removals from, or other modifications to the MEU List. Decisions by the ERC for purposes of the MEU List will be made following the procedures identified in this section and in supplement no. 5 to part 744Procedures for End-User Review Committee Entity List and Military End User MEU List Decisions.
ii License requirement for parties to the transaction. The license requirement for entities listed in supplement no. 7 to part 744 applies to the export, reexport, or transfer in-country of any item subject to the EAR listed in supplement No. 2 to part 744 when an entity that is listed on the MEU List is a party to the transaction as described in 748.5c through f.
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2 Requests for removal from or modification of Military End User MEU List. Any entity listed on the MEU List may request that its listing be removed or modified. All such requests, including reasons therefor, must be in writing and sent to: Chair, End-User Review Committee, Bureau of Industry and Security, U.S. Department of Commerce, 14th Street and Pennsylvania Avenue NW, Room 3886, Washington, DC 20230. In order for an entity listed on the MEU List to petition BIS for their removal or modification, as applicable, the entity must address why the entity is not a military end user for purposes of this section.
i Review. The ERC will review such requests for removal or modification in accordance with the procedures set forth in supplement No. 5 to part 744.
ii BIS action. The Deputy Assistant Secretary for Export Administration will convey the decision on the request to the requester in writing. That decision will be the final agency action on the request.
c License exception. Despite the prohibitions described in paragraphs a and b of this section, you may export, reexport, or transfer in-country items subject to the EAR under the provisions of License Exception GOV set forth in 740.11b2i and ii of the EAR.
d License application procedure.
When submitting a license application pursuant to this section, you must state in the additional information block of the application that this application is submitted because of the license requirement in this section. In addition, either in the additional information block of the application or in an attachment to the application, you must include all known information concerning the military end use and military end users of the items. If you submit an attachment with your license application, you must reference the attachment in the additional information block of the application.
e License review standards. 1
Applications to export, reexport, or transfer in-country items described in paragraph a of this section will be reviewed with a presumption of denial.
2 Applications may be reviewed under chemical and biological weapons, nuclear nonproliferation, or missile technology review policies, as set forth in 742.2b4, 742.3b4, and 742.5b4 of the EAR, if the end use may involve certain proliferation activities.
3 Applications for items requiring a license for any reason that are destined to Burma, China, the Russian Federation, or Venezuela for a military end use or military end user also will
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be subject to the review policy stated in paragraph e1 of this section.
f Military end use. In this section, military end use means: Incorporation into a military item described on the U.S. Munitions List USML 22 CFR
part 121, International Traffic in Arms Regulations; incorporation into items classified under ECCNs ending in A018 or under 600 series ECCNs; or any item that supports or contributes to the operation, installation, maintenance, repair, overhaul, refurbishing, development, or production, of military items described on the USML, or items classified under ECCNs ending in A018 or under 600 series ECCNs.
g Military end user. In this section, the term military end user means the national armed services army, navy, marine, air force, or coast guard, as well as the national guard and national police, government intelligence or reconnaissance organizations, or any person or entity whose actions or functions are intended to support military end uses as defined in paragraph f of this section.
h Effects on contracts. Venezuela:
Transactions involving the export, reexport, or transfer in country of items to or within Venezuela are not subject to the provisions of 744.21 if the contracts for such transactions were signed prior to November 7, 2014.
Supplement No. 7 to Part 744
Amended 8. The Supplement No.7 to Part 744
table is amended by:
a. Removing from the last sentence of the introductory text the phrase supplement no. 2 to part 744 and adding in its place the phrase this supplement 7 to part 744; and b. In the table adding in alphabetical order an entry for BURMA.
The addition reads as follows:
Country Burma
Federal Register citation
Entity Reserved
Reserved
Matthew S. Borman, Deputy Assistant Secretary for Export Administration.
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