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Federal Register / Vol. 86, No. 190 / Tuesday, October 5, 2021 / Rules and Regulations of 734.5 was dropped from the EAR
and in 2016, transfer in-country was added to the EAR in 734.16. Elsewhere in this rule, 734.3a4 and 5 are being amended to align with 736.2b3 of the EAR; the changes to these sections also impact the flowchart in supplement no. 2 to part 732. This rule changes the Subject to the EAR?
flowchart in supplement no. 2 of part 732 to reflect these changes. For example, the first text bubble of the supplement no longer mentions 734.5c and the final text bubble simply refers readers to 736.2b3, rather than to any specific destinations.

DEPARTMENT OF COMMERCE
Bureau of Industry and Security 15 CFR Parts 732, 734, 736, 738, 740, 744, 748, 750, 770, 772, and 774
Docket No. 2108020157
RIN 0694AI24

The Export Administration Regulations; Editorial Revisions, Clarifications, and Corrections Bureau of Industry and Security, Commerce.
ACTION: Final rule; corrections.
AGENCY:

In this rule, the Bureau of Industry and Security BIS amends the Export Administration Regulations EAR by making targeted editorial corrections and clarifications. The errors addressed by this rule were inadvertent and these corrections will provide clarity and facilitate understanding of the regulations. This rule ensures that the language and policies already set forth in the EAR remain consistent throughout.
DATES: This rule is effective October 5, 2021.
FOR FURTHER INFORMATION CONTACT:
Logan Norton, Regulatory Policy Division, Logan.Norton@bis.doc.gov, 202 8121762.
SUPPLEMENTARY INFORMATION:
SUMMARY:

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Background This final rule updates eleven parts of the Export Administration Regulations EAR, parts 732, 734, 736, 738, 740, 744, 748, 750, 770, 772, and 774, such that most-recent language elsewhere in the EAR is consistent with the language in these parts. These changes are minor editorial revisions that either reflect Bureau of Industry and Security BIS
policies that were previously published in the Federal Register and added to the EAR or reflect the modernization of procedures implemented by BIS. These revisions do not change the substance of the EAR.
Part 732 Steps for Using the EAR
In 2004, supplement no. 2 to part 732, the Subject to the EAR? flowchart, was revised to make it simpler and easier to read. However, the language of the supplement is not consistent with the language in other parts of the EAR, including language implemented before and after the 2004 amendment. In 1999, paragraphs a and b of 734.5 were amended to better represent U.S. policy objectives but the 2004 update to supplement no. 2 did not capture these changes. Further, in 2009, paragraph c
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Part 734 Scope of the Export Administration Regulations Parts 734 and 736 were added to the EAR in 1996. Section 736.2 has been revised several times since then, updating the language regarding what constitutes a foreign-produced direct product. The most recent update to part 736 was in August of 2020. This rule amends 734.3a4 and 5 to reflect the terms currently used in 736.2b3 of the EAR. The definition for the term direct product is removed from 734.3a4, because it is being added to part 772, as detailed below.
Part 736
On January 15, 2021, BIS published an interim final rule 86 FR 4865 that inadvertently removed paragraphs B
and C from 736.2b7i. Paragraphs B and C are added back by this rule.
Those paragraphs dictate which schedules of chemicals listed in supplement no. 1 to part 745 a U.S.
person may not export without complying with specific provisions and requirements of the EAR. In addition, as the January 15 interim final rule removed the definition of U.S. person from 744.6c of the EAR while leaving the identical definition in 772.1 of the EAR, BIS is making conforming changes to 736.2b7iB
and C. Specifically, BIS is revising both paragraphs to reference 772.1, instead of 744.6c, for the definition of the term U.S. person. Quotation marks are also added around the term U.S. person in both paragraphs, given it is a defined term in part 772.
Quotation marks are also added around the term direct product in 736.2b for the same reason and as detailed below.
Part 738 Commerce Control List Overview and the Country Chart In June of 2020, License Exception Civil End Users CIV was removed from the EAR. After the removal, a sample Commerce Control List entry set forth in
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738.4b2 of the EAR unintentionally retained a reference to License Exception CIV. This rule rectifies this by removing the CIV reference from 738.4b2 while retaining the remainder of the sample entry.
Part 740 License Exceptions On December 28, 2020, BIS published a final rule 85 FR 84211 adding Cyprus and Mexico to Country Group A:6. As there were issues with the amendatory instruction to that rule, this rule corrects the amendatory instruction and adds an X in Column A:6 in Supplement No. 1 to Part 740 for Cyprus and Mexico.
Part 744 Control Policy: End-User and End-Use Based In April of 2020, BIS published a rule regarding military end users 85 FR
23459. In supplement no. 2 to part 744
of the EAR, paragraph 3viii inadvertently reprinted out-of-date text from Export Control Classification Number ECCN 3A992 when referring to ECCN 3E991 technology for those 3A992 items. This rule updates the paragraph to reflect the current text in that ECCN. This edit does not change the scope of the license requirement for items controlled under the ECCN.
Quotation marks are also added around the term direct product in supplement no. 4 to part 744, because the term is being added to part 772 by this rule, as detailed below.
Part 748 Applications Classification, Advisory, and License and Documentation As has been the case for some time, the public may submit advisory opinion requests to BIS in a variety of ways in addition to through the mail e.g., the U.S. Postal Service or via a shipping and logistics delivery service. This rule revises 748.3c of the EAR to include how to submit advisory opinion requests via email or through the BIS
website.
Supplement no. 2 to part 748, Unique Application and Submission Requirements, is being clarified to reflect BIS policy regarding the letters of assurance described in paragraph o3i, which are applicable to license applications submitted for the export of technology controlled for national security reasons to certain countries.
Specifically, this clarification reflects BIS policy that license applicants must always obtain letters of assurance, which must be submitted to BIS upon request. Quotation marks are also added around the term direct product in supplement no. 2, because the term is being added to part 772 by this rule, as
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