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Federal Register / Vol. 86, No. 190 / Tuesday, October 5, 2021 / Rules and Regulations
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detailed below. This rule also adds in that this applies to exports, reexports, and transfers in-country, which is currently BIS policy regarding this paragraph.
This rule amends paragraph b6
Block 6: Ultimate Consignee, of supplement no. 3 to part 748, Statement by Ultimate Consignee and Purchaser Content Requirements. Prior to publication of this rule, paragraph b6 indicated that an ink signature is required on the BIS711 Statement by Ultimate Consignee and Purchaser form. However, following public comments, in a March 2015 final rule, BIS confirmed that electronic signatures are permissible. This rule revises paragraph b6 to more accurately reflect existing text found in 748.11 of the EAR.
Part 750 Application Processing, Issuance and/or Denial Sections 750.1, 750.8, and 750.9 are being updated to reflect BISs use of the Simplified Network Application ProcessRedesign SNAPR system by eliminating or rewording parts of the sections that are no longer relevant given the online nature of the system.
The SNAPR system has been in place since October of 2006 and has largely replaced the previous system that involved the submission of paper license applications, but the EAR has not been fully updated to reflect that change. Now that BIS does not mail copies of licenses to applicants with SNAPR accounts, and almost all exporters have access to licenses electronically via the SNAPR system and can therefore save and print out multiple copies of their licenses themselves, a requirement to return a revoked license or a duplicate copy of a license is, under most circumstances, unnecessary. In 750.8, the text specific to the return of a revoked license was relevant when BIS sent validated hard copies of licenses to exporters. This rule revises 750.8 by removing the text requiring the return of revoked or suspended licenses. The remaining text specifies that if BIS revokes or suspends a license, the licensee must retain all applicable supporting documents and records of shipments in accordance with the recording keeping provisions of part 762 of the EAR. In 750.9, the text specific to the return of duplicate licenses was relevant when BIS sent validated hard copies of licenses to exporters. This rule revises 750.9
regarding lost, stolen or destroyed paper licenses by removing and reserving 750.9a3 of the EAR, which required the return of either the original or duplicate paper licenses should the
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original paper license be found. Doing so aligns the EAR with existing BIS
policies and procedures. This rule also revises 750.1 to reflect the changes this rule makes to 750.8 and 750.9 of the EAR.
Section 750.7a is corrected by adding a sentence that directs readers to more detailed information regarding the release of technology authorized by the issuance of a BIS license, which is set forth within 734.20 of the EAR.
Section 750.7a is also broken up into subparagraphs 1, 2, and 3 to make it easier to read.
Part 770 Interpretations Release as it is used in the context of the EAR is defined in 734.15, which was added to the EAR in 2016.
However, 770.3d1ii was never updated to reflect the definition. This rule rectifies this omission by amending 770.3d1ii to direct readers to the definition of a release in 734.15 and by altering the language in paragraph d1ii such that it answers the preceding question in 770.3d1i correctly given the 2016 change in the definition of release.
Part 772 Definitions of Terms This final rule removes the definition of the term direct product from 734.3a4 and adds it to 772.1.
Given the changes to part 734 detailed above, the term direct product is better suited to appear as a defined term in part 772. This rule does not alter the definition of direct product or the BIS
policy specific to the term.
BIS is also amending paragraph a of the definition of U.S. person in 772.1 of the EAR to clarify that the definition applies for purposes of 732.3j, 736.2b7, and 745.2a1
of the EAR. This change does not alter BIS policy, but does bring the definition of U.S. person in line with the rest of the EAR.
Part 774 The Commerce Control List This final rule corrects ECCN 0D617
to remove text that was inadvertently included from 0D606 and published as part of a revision of 0D617 on June 3, 2020 85 FR 34306. In ECCN 0D617, this final rule removes references to 0x606 ECCNs and adds in its place text referencing the 0x617 ECCNs. This final rule also revises the Related Controls paragraph and Items paragraph a in the List of Items Controlled section of ECCN
0D617 to remove text that was inadvertently included from 0D606 and to add in its place the intended text from 0D617. The publication of this correction does not change existing BIS
policy.

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This final rule corrects a reference in the control chart for ECCN 7A611 from 724.6a7 to 742.6a7 in supplement no. 1 to part 774.
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S. McCain National Defense Authorization Act for Fiscal Year 2019, which included the Export Control Reform Act of 2018
ECRA, 50 U.S.C. Sections 48014852.
ECRA provides the legal basis for BISs principal authorities and serves as the authority under which BIS issues this rule.
Rulemaking Requirements 1. Executive Orders 13563 and 12866
direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits including potential economic, environmental, public health and safety effects, distribute impacts, and equity.
Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has not been designated a significant regulatory action, under section 3f of Executive Order 12866.
2. Notwithstanding any other provision of law, no person may be required to respond to or 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 a collection currently approved by OMB under control number 0694
0088, Simplified Network Application Processing System. This collection includes, among other things, license applications and commodity classification, and carries a burden estimate of 29.6 minutes for a manual or electronic submission for a total burden estimate of 31,835 hours. BIS does not expect the burden hours associated with this collection to change.
3. This rule does not contain policies with federalism implications as that term is defined under Executive Order 13132.
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.
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