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SO/Uw1>7rn<T}. c߮g }#]y%$M.z!34=LT 8 &܊oNԶ>Ԏ6]iY ,og.2na?i땸3BdbkEpGk{)q-un}u $9#ߤD.o]6丱 Ǐ.4ws͘@V{ Ӓ&\8Y^г]:뾦Μlr"tx|VkXa\< QyM 2U.c[t K}ѫ }v@A,V- &B%7Us>@ 0 0 0 0 0 0 0 0 0 0 0 0o 0Z 0B 0* 0 0 0 0 0 0 0y 0` 0G 0+ 0 0 0n 0?!U76G" 0}" 0:# 0?#U,A$ 0Ym$$ 0%8&& 0N& 0>'#'UN* % +M+(+N=+^ ?+wK+4O+c+ me+\  `&Times New Roman' August 3, 2006 Unknown0spfieffer .   2S+P 0_level1  , ;1wwwS [ ck ";23  ..  8.KKS [ ck "8  2P+P 0_level2  X 8.S [ ck "823  ..  8.KKS [ ck "8  2P+P 0_level3   8.S [ ck "823  ..  8.KKS [ ck "8  2M+P 0_level4   5+ S [ ck "523  ..  8.KKS [ ck "8  2M+P 0_level5   5+' ' ' S [ ck "523  ..  8.KKS [ ck "8  2J+P 0_level6   2(S S S [ ck "223  ..  8.KKS [ ck "8  2J+P 0_level7  4 2(   [ ck "223  ..  8.KKS [ ck "8  2G+P 0_level8  ` /% [ ck "/23  ..  8.KKS [ ck "8  2G+P 0_level9   /% [ ck "/23  ..  8.KKS [ ck "8  2SP 0_levsl1  , ;1wwwS [ ck ";23  Ԁ  8.KKS [ ck "8  2PP 0_levsl2  X 8.S [ ck "823  Ԁ  8.KKS [ ck "8  2PP 0_levsl3   8.S [ ck "823  Ԁ  8.KKS [ ck "8  2MP 0_levsl4   5+ S [ ck "523  Ԁ  8.KKS [ ck "8  2MP 0_levsl5   5+' ' ' S [ ck "523  Ԁ  8.KKS [ ck "8  2JP 0_levsl6   2(S S S [ ck "223  Ԁ  8.KKS [ ck "8  2JP 0_levsl7  4 2(   [ ck "223  Ԁ  8.KKS [ ck "8  2GP 0_levsl8  ` /% [ ck "/23  Ԁ  8.KKS [ ck "8  2GP 0_levsl9   /% [ ck "/23  Ԁ  8.KKS [ ck "8  2SP 0_levnl1  , ;1wwwS [ ck ";23   8.KKS [ ck "8  2PP 0_levnl2  X 8.S [ ck "823   8.KKS [ ck "8  2PP 0_levnl3   8.S [ ck "823   8.KKS [ ck "8  2MP 0_levnl4   5+ S [ ck "523   8.KKS [ ck "8  2MP 0_levnl5   5+' ' ' S [ ck "523   8.KKS [ ck "8  2JP 0_levnl6   2(S S S [ ck "223   8.KKS [ ck "8  2JP 0_levnl7  4 2(   [ ck "223   8.KKS [ ck "8  2GP 0_levnl8  ` /% [ ck "/23   8.KKS [ ck "8  2GP 0_levnl9   /% [ ck "/23   8.KKS [ ck "8  <:Default ParaXXX8dl 6Plain TextK <6X9`(Courier NewKXXXS\  `&Times New RomanS<6X9`(Courier New0> .FooterKK[k ">4KKS [ ck ">:8Page Number<Zl :Balloon TextA$ $TahomaAXXXS\  `&Times New RomanS $Tahoma64Hyperlink      ' )KK..      -XHXX-XXHXX-XH  !$KK[k "X$  !  (2 $ +]!KK..      -XHXX-XXHXX-XH  mailto:mrithmir@bis.doc.gov#|x(O$(]$KK..      -XHXX-XXHXX-XHLexmark Optra T612,,,,,,0(9 Z6Times New Roman Regular-X`6 6.CorelU +]!KK..      -XHXX-XXHXX-XH  _       &XX8HXXdd8XXH $    T   X:X $XHXX X:BillingCode:351033PT݌  ЌXHXXXHXHXXXH  XXH $       X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: DEPARTMENTOFCOMMERCE5݌ H ЌXHXXXHXHXXXH  XXH $  %   X:X $XHXX X:%~݌̌XHXXXHXHXXXH  XXH $  >   X:X $XHXX X: BureauofIndustryandSecurity>݌  0 ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: 15CFRParts744and772 ݌ x  ЌXHXXXHXHXXXH  XXH $      X:X $XHXX X: M ݌̌XHXXXHXHXXXH  XXH $      X:X $XHXX X: [DocketNo.06122431506315001] f ݌ ` ЌXHXXXHXHXXXH  XXH $  a    X:X $XHXX X:a ݌̌XHXXXHXHXXXH  XXH $  z    X:X $XHXX X: RIN:0694AD82z ݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:AuthorizationtoImposeLicenseRequirementsforExportsorReexportstoEntitiesActing @ ContrarytotheNationalSecurityorForeignPolicyInterestsoftheUnitedStates..݌  \ ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: AGENCY: BureauofIndustryandSecurity,Commerce4݌  ЌXHXXXHXHXXXH  XXH $  @   X:X $XHXX X:@݌̌XHXXXHXHXXXH  XXH $  Y   X:X $XHXX X: ACTION: ProposedRuleY݌ <#" ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: SUMMARY: TheEntityList(SupplementNo.4toPart744oftheExportAdministration &$"& Regulations)providesnoticetothepublicthatcertainexportsandreexportstopartiesidentifiedon (#( theEntityListrequirealicensefromtheBureauofIndustryandSecurity(BIS)andthat l*%* availabilityofLicenseExceptionsinsuchtransactionsislimited.Thisproposedrulewouldexpand 8,', thescopeofreasonsforwhichBISmayaddpartiestotheEntityList.Thisproposedrulewould  alsoamendtheExportAdministrationRegulations(EAR)tostateexplicitlythatapartylistedon | theEntityListhasarighttorequestthatitslistingberemovedormodifiedandwouldset H proceduresforaddressingsuchrequests.݌  d ЌXHXXXHXHXXXH  XXH $  =   X:X $XHXX X:Ԁ=݌  0 ЌXHXXXHXHXXXH  XXH $  k   X:X $XHXX X: DATES: 󀀀CommentsconcerningthisrulemustbereceivedbyBISnolaterthanAugust6,2007.k݌    ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:S݌̌XHXXXHXHXXXH  XXH $      X:X $XHXX X:ADDRESSES:CommentsonthisrulemaybesubmittedtotheFederaleRulemakingPortalat D  http://www.regulations.gov(followtheinstructionsforsubmittingcomments)byemaildirectlyto ` BISatpubliccomments@bis.doc.gov(refertoregulatoryidentificationnumber0694AD82inthe , subjectline),byfaxat(202)4823355,oronpapertoRegulatoryPolicyDivision,Officeof  ExporterServices,BureauofIndustryandSecurity,RoomH2705,U.S.DepartmentofCommerce, t 14thStreetandPennsylvaniaAvenue,N.W.Washington,D.C.20230.RefertoRegulatory @ IdentificationNumber(RIN)0694AD82inallcomments. l ݌  \ ЌXHXXXHXHXXXH  XXH $  $   X:X $XHXX X:$r$݌̌XHXXXHXHXXXH  XXH $  2%   X:X $XHXX X: FORFURTHERINFORMATIONCONTACT: MikeRithmire,OfficeoftheAssistant  SecretaryforExportAdministration,BureauofIndustryandSecurity,email p!  4(X*O  5  %  mrithmir@bis.doc.gov%&H  6&*&H  7X&Ԁ,tel.2024826105.2%%݌ <#" ЌXHXXXHXHXXXH  XXH $  T(   X:X $XHXX X:T((݌̌XHXXXHXHXXXH  XXH $  m)   X:X $XHXX X: SUPPLEMENTARYINFORMATIONm))݌ &$"& ЌXHXXXHXHXXXH  XXH $  *   X:X $XHXX X:*+݌̌XHXXXHXHXXXH  XXH $  +   X:X $XHXX X: Background++,݌ l*%* ЌXHXXXHXHXXXH  XXH $  -   X:X $XHXX X:-h-݌ 8,', ЌXHXXXHXHXXXH  XXH $  <.   X:X $XHXX X:TheEntityList(SupplementNo.4toPart744oftheEAR)providesnoticetothepublicofthe  identityofcertainpartieswhosepresenceasarecipientofitemssubjecttotheExport | AdministrationRegulations(EAR)canimposealicenserequirementinanexportorreexport H transaction.ThereasonsforwhichBISmayplaceanentityontheEntityListarestatedin  d 744.2,744.3,744.4,744.6,744.10and744.20oftheEAR.<..݌  0 ЌXHXXXHXHXXXH  XXH $  k1   X:X $XHXX X:k11݌̌XHXXXHXHXXXH  XXH $  2   X:X $XHXX X:Inadditiontothosereasons,thisproposedrulewouldcreateanew744.11toauthorizeBIStoadd x  totheEntityListentitiesthatBIShasreasonablecausetobelieve,basedonspecificandarticulable D  facts,havebeen,areorposeariskofbeinginvolvedinactivitiesthatarecontrarytothenational ` securityorforeignpolicyinterestsoftheUnitedStatesorthoseactingonbehalfofsuchentities. , ThisnewsectionwouldnotbeusedtoaddtotheEntityListentitiesthatareU.S.persons(as  definedin772.1oftheEAR).ThisnewsectionalsowouldnotbeusedtoaddtotheEntityList t entitiesforwhichtheEARalreadyimposealicenserequirementbecausethoseentitiesarealready @ listedontheListofSpeciallyDesignatedNationalsandBlockedPersonspublishedbytheTreasury  \ Department,OfficeofForeignAssetsControl.22݌ ( ЌXHXXXHXHXXXH  XXH $  7   X:X $XHXX X:78݌̌XHXXXHXHXXXH  XXH $  8   X:X $XHXX X: Reasonforthechangesproposedbythisrule .89݌ p!  ЌXHXXXHXHXXXH  XXH $  !:   X:X $XHXX X:!:z:݌̌XHXXXHXHXXXH  XXH $  :;   X:X $XHXX X:BISisproposingtotakethisactiontofocusitsexportcontroleffortsmorecloselyonproblematic %X $ potentialrecipientsofitemsthataresubjecttotheEAR,butwhodonotmeetthecriteriacurrently &$"& setforthin744.2,744.3,744.4,744.6,744.10or744.20.Withthisrule,theUnitedStates (#( governmentwouldbeabletoconductpriorreviewandmakeappropriatelicensingdecisions l*%* regardingproposedexportsandreexportstosuchrecipientstothedegreenecessarytoprotectits 8,', interests.BISwouldbeabletotailorlicenserequirementsandavailabilityoflicenseexceptionsfor  exportsandreexportstopartieswhohavetaken,aretaking,orwilltakeactionsthatarecontraryto | UnitedStatesnationalsecurityorforeignpolicyinterestswithoutimposingadditionallicense H requirementsthatapplybroadlytoentiredestinationsoritems.BISbelievesthatsuchtargeted  d applicationoflicenserequirementswouldprovidetheflexibilitytodeteruseofitemsthatare  0 subjecttotheEARinwaysthatareinimicaltotheinterestsoftheUnitedStateswithminimalcosts    toanddisruptionoflegitimatetrade.Asexportcontrolscontinuetofocusnotjustoncountries,but x  alsoonindividualcustomersorentities,BISbelievesitisimportanttoprovidemoreinformationto D  thepublicaboutentitiesofconcern.Implementationofthisrulewillprovideadditional ` informationtothepublictoenhancetheabilitytoscreenpotentialrecipientsofitemssubjecttothe , EAR.:;;݌  ЌXHXXXHXHXXXH  XXH $  pC   X:X $XHXX X:pCC݌̌XHXXXHXHXXXH  XXH $  D   X:X $XHXX X:Inaddition,thisproposedrulewouldsimplifytheEARbyreducingtheneedtoissuegeneralorders @ toimposelicenserequirementsonspecificparties.Licenserequirementscurrentlyimposedon  \ specificentitiesthroughgeneralorderswould,underthisrule,beimposedbyaddingsuchentities ( totheEntityList.SuchanactionwouldreducethenumberofEARprovisionsthatthepublic  wouldhavetoreviewtodeterminelicenserequirementsundertheEAR.DD݌ p!  ЌXHXXXHXHXXXH  XXH $  G   X:X $XHXX X:G+H݌̌XHXXXHXHXXXH  XXH $  H   X:X $XHXX X: Summaryofthechangesproposedbythisrule .HDI݌ %X $ ЌXHXXXHXHXXXH  XXH $  KJ   X:X $XHXX X:KJJ݌̌XHXXXHXHXXXH  XXH $  dK   X:X $XHXX X:ThisproposedrulewouldauthorizeBIStoimposeforeignpolicyexportandreexportlicense (#( requirements,limittheavailabilityofLicenseExceptions,andsetlicenseapplicationreviewpolicy l*%* forexportsandreexportsofitemssubjecttotheEARtoentitiesthatBIShasreasonablecauseto 8,', believe,basedonspecificandarticulablefacts,havebeen,areorposeariskofbeinginvolvedin  activitiesthatarecontrarytothenationalsecurityorforeignpolicyinterestsoftheUnitedStatesor | thoseactingonbehalfofsuchentities.Thisproposedrulewouldnotrequirethatsuchactivities H involveitemsoractivitiesthataresubjecttotheEAR.dKK݌  d ЌXHXXXHXHXXXH  XXH $  O   X:X $XHXX X:OO݌̌XHXXXHXHXXXH  XXH $  P   X:X $XHXX X:Thisproposedrulelistsfivetypesofconduct,inadditiontothegroundssetforthin744.2,744.3,    744.4,744.6or744.20,thatBIScoulddeterminearecontrarytoU.S.nationalsecurityorforeign x  policyinterests.Theyare:(i)Supportingpersonsengagedinactsofterror;(ii)Actionsthatcould D  enhancethemilitarycapabilityof,ortheabilitytosupportterrorismofgovernmentsthathavebeen ` designatedbytheSecretaryofStateashavingrepeatedlyprovidedsupportforactsofinternational , terrorism;(iii)Transferring,developing,servicing,repairing,orproducingconventionalweapons  inamannerthatiscontrarytoUnitedStatesnationalsecurityorforeignpolicyinterestsorenabling t suchtransfer,development,service,repairorproductionbysupplyingparts,components, @ technology,orfinancingforsuchactivity;(iv)Deliberatelyfailingorrefusingtocomplywithan  \ endusecheckconductedbyoronbehalfofBISortheDepartmentofState,DirectorateofDefense ( TradeControlsbydenyingaccess,byrefusingtoprovideinformationaboutpartiestoatransaction,  orbyprovidinginformationaboutsuchpartiesthatisfalseorthatcannotbeverifiedor p!  authenticated;and(v)EngaginginconductthatposesariskofviolatingtheEARandraises <#" sufficientconcernthatpriorreviewofexportsorreexportsinvolvingthepartyandthepossible %X $ impositionoflicenseconditionsorlicensedenialenhancesBISsabilitytopreventviolationsofthe &$"& EAR.P Q݌ (#(  XHXXXHXHXXXH  XXH $  X   X:X $XHXX X:XNY݌ l*%* ЌXHXXXHXHXXXH  XXH $  "Z   X:X $XHXX X:Thesecriteriaareillustrativeofconductthatcouldbecontrarytothenationalsecurityorforeign   policyinterestsoftheUnitedStates.ApartycouldbeaddedtotheEntityListifspecificand | articulablefactsprovidedreasonablecausetobelievethatitisinvolvedin,hasbeeninvolvedin,or H posesasignificantriskofbeingorbecominginvolvedinoneofthefivelistedillustrativeactivities  d orotheractivitiesthatarecontrarytoU.S.nationalsecurityorforeignpolicyinterests."Z{Z݌  0 ЌXHXXXHXHXXXH  XXH $  ]   X:X $XHXX X:]]݌̌XHXXXHXHXXXH  XXH $  ^   X:X $XHXX X:ThisproposedrulealsowouldauthorizeBIStomodifythelicenserequirements,licenseexception x  availabilityorlicenseapplicationreviewpolicythatappliestoanyentityplacedontheEntityList D  pursuanttothisrule.^_݌ ` ЌXHXXXHXHXXXH  XXH $  `   X:X $XHXX X:`Da݌̌XHXXXHXHXXXH  XXH $  b   X:X $XHXX X:ThisproposedrulewouldnotbeusedtoaddtotheEntityListapartytowhichexportsorreexports  requirealicensepursuantto744.12,744.13,744.14or744.18oftheEAR.Thosesections t imposelicenserequirementsbecauseofthepresenceofcertainpartiesontheListofSpecially @ DesignatedNationalsandBlockedPersonspublishedbytheU.S.DepartmentoftheTreasury,  \ OfficeofForeignAssetsControl.ThisproposedrulewouldnotauthorizeplacingU.S.persons,as ( definedin772.1oftheEAR,ontheEntityList.b]b݌  ЌXHXXXHXHXXXH  XXH $  e   X:X $XHXX X:e f݌̌XHXXXHXHXXXH  XXH $  f   X:X $XHXX X:Allimpositionsoflicenserequirementsorstatementsoflicenseapplicationreviewpolicyorany <#" modificationthereofmadepursuanttothisrulewouldberequiredtobemadebypublishingan %X $ amendmenttotheEntityListfoundatSupplementNo.4topart744oftheExportAdministration &$"& Regulations.Underthisproposedrule,licenseexceptionsarenotavailableforanyentityaddedto (#( theEntityListpursuanttothisruleunlessspecificallyauthorizedintheentryfortheentity.f"g݌ l*%* ЌXHXXXHXHXXXH  XXH $  .j   X:X $XHXX X:.jj݌ 8,', ЌXHXXXHXHXXXH  XXH $  [k   X:X $XHXX X:ThisproposedrulewouldexplicitlysetforththeabilityofapartywhoislistedontheEntityListto  requestthatitslistingberemovedormodified.Suchrequests,includingreasonstherefor,would | havetobemadeinwriting,andBISwouldberequiredtoprovideawrittenresponsethatwouldbe H thefinalagencydecisionontherequest.SuchrequestswouldbereviewedbytheDepartmentsof  d Commerce,State,Defense,andEnergyand,ifappropriateinaparticularcase,theTreasury.The  0 interagencydecision,ascommunicatedtotherequestingentitybyBIS,wouldbethefinalagency    actiononsucharequest.[kk݌ x  ЌXHXXXHXHXXXH  XXH $  mo   X:X $XHXX X:moo݌̌XHXXXHXHXXXH  XXH $  p   X:X $XHXX X:ThisproposedrulewouldmakeaconformingchangetothedefinitionofU.S.personin772.1by ` adding744.11tothelistofsectionstowhichthatdefinitionapplies.pp݌ , ЌXHXXXHXHXXXH  XXH $  ur   X:X $XHXX X:urr݌̌XHXXXHXHXXXH  XXH $  s   X:X $XHXX X:Thelicenserequirementsproposedbythisrulewouldbeanexpansionofforeignpolicyexport t controlsthatwouldrequireareporttoCongressinaccordancewithsection6oftheExport @ AdministrationAct.BISwillsubmittheappropriatereporttoCongressbeforeimplementingany  \ suchexpandedcontrols.ss݌ ( ЌXHXXXHXHXXXH  XXH $  (v   X:X $XHXX X:(vv݌̌XHXXXHXHXXXH  XXH $  Aw   X:X $XHXX X: RequestforCommentsAww݌ p!  ЌXHXXXHXHXXXH  XXH $  x   X:X $XHXX X:xx݌̌XHXXXHXHXXXH  XXH $  y   X:X $XHXX X:BISisseekingpubliccommentsonthisproposedruleandwillconsiderallcommentsreceivedon %X $ orbeforeAugust6,2007indevelopinganyfinalrule.Commentsreceivedafterthatdatewillbe &$"& consideredifpossible,buttheirconsiderationcannotbeassured.Allpubliccommentsonthis (#( proposedrulemustbeinwriting(includingfaxoremail)andwillbeamatterofpublicrecord, l*%* availableforpublicinspectionandcopying.TheOfficeofAdministration,BureauofIndustryand 8,', Security,U.S.DepartmentofCommerce,displaysthesepubliccommentsonBISsFreedomof  InformationAct(FOIA)Websiteathttp://www.bis.doc.gov/foia.Thisofficedoesnotmaintaina | separatepublicinspectionfacility.Ifyouhavetechnicaldifficultiesaccessingthiswebsite,please H callBISsOfficeofAdministrationat(202)4820953forassistance.yy݌  d ЌXHXXXHXHXXXH  XXH $  ~   X:X $XHXX X:~݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:5݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: RulemakingRequirementsN݌ x  ЌXHXXXHXHXXXH  XXH $  ?   X:X $XHXX X:?݌̌XHXXXHXHXXXH  XXH $  X   X:X $XHXX X:1.  ThisrulehasbeendeterminedtobeasignificantrulepursuanttoExecutiveOrder12866.X݌ ` ЌXHXXXHXHXXXH  ,E1wwwS [ ck "XE K,K1S [ ck "wwwXK2.  Notwithstandinganyotherprovisionoflaw,nopersonisrequiredtorespondtonorbe  subjecttoapenaltyforfailuretocomplywithacollectionofinformation,subjecttothe t requirementsofthePaperworkReductionActof1995(44U.S.C.3501etseq.)(PRA),unlessthat @ collectionofinformationdisplaysacurrentlyvalidOfficeofManagementandBudget(OMB)  \ ControlNumber.Thisruleinvolvesacollectionofinformationthathasbeenapprovedbythe ( OMBundercontrolnumber06940088,"MultiPurposeApplication,"whichcarriesaburdenhour  estimateof58minutestoprepareandsubmitformBIS748.Miscellaneousandrecordkeeping p!  activitiesaccountfor12minutespersubmission.Additionally,thisrulecontainsanewcollection <#" ofinformationsubjecttoreviewandapprovalbyOMBunderthePaperworkReductionAct.This %X $ collectionwillbesubmittedtoOMBforapproval.Thisruleproposesaprocedureforalistedparty &$"& torequestremovalormodificationofitslisting,assetforthinproposed744.16.BISestimates (#(  thatthisnewcollectionwillinvolveanannualburdenof15hours. l*%*  X KH.KKS [ ck "XHSendcommentsregardingtheseburdenestimatesoranyotheraspectofthesecollectionsof   information,includingsuggestionsforreducingtheburden,toDavidRostker,OMBDeskOfficer, | byemailatdavid_rostker@omb.eop.govԀorbyfaxto(202)3957285;andtotheRegulatory H PolicyDivision,BureauofIndustryandSecurity,DepartmentofCommerce,P.O.Box273,  d Washington,DC20044.  0 XXH $  s   X:X $XHXX X:s̍݌    ЌXHXXXHXHXXXH  XXH $  X   X:X $XHXX X:3.  ThisruledoesnotcontainpolicieswithFederalismimplicationsasthistermisdefinedin x  ExecutiveOrder13132.݌ D  ЌXHXXXHXHXXXH  XXH $  o   X:X $XHXX X:oȐ݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:4.  TheprovisionsoftheAdministrativeProcedureAct(5U.S.C.553)requiringnoticeof , proposedrulemaking,theopportunityforpublicparticipation,andadelayineffectivedate,are  inapplicablebecausethisregulationinvolvesamilitaryorforeignaffairsfunctionoftheUnited t States(see5U.S.C.553(a)(1)).Further,nootherlawrequiresthatanoticeofproposedrulemaking @ andanopportunityforpubliccommentbegivenforthisrule.Becauseanoticeofproposed  \ rulemakingandanopportunityforpubliccommentarenotrequiredtobegivenforthisruleby5 ( U.S.C.553,orbyanyotherlaw,theanalyticalrequirementsoftheRegulatoryFlexibilityAct,5  U.S.C.601et.seq.,arenotapplicable.However,toobtainthebenefitofavarietyofviewpoints p!  beforeissuinganyfinalrule,BISisissuingthisruleinproposedformwitharequestforcomments. <#" ݌̌XHXXXHXHXXXH  XXH $  ٖ   X:X $XHXX X:ٖ2݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:K݌̌XHXXXHXHXXXH  XXH $      X:X $XHXX X: ListofSubjects d݌ l*%* ЌXHXXXHXHXXXH  XXH $  N   X:X $XHXX X:N݌ 8,', ЌXHXXXHXHXXXH  XXH $  {   X:X $XHXX X:15CFRPart744{ԛ݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:  Exports,Reportingandrecordkeepingrequirements,Terrorism݌ | ЌXHXXXHXHXXXH  XXH $  4   X:X $XHXX X:4݌̌XHXXXHXHXXXH  XXH $  M   X:X $XHXX X:15CFRPart772M݌  d ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:  Exports݌  0 ЌXHXXXHXHXXXH  XXH $  С   X:X $XHXX X:С)݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:B݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:  Accordingly,parts744and772oftheExportAdministrationRegulations(15CFRParts D  730774)areamendedasfollows:[݌ ` ЌXHXXXHXHXXXH  XXH $  ǥ   X:X $XHXX X:ǥ ݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:9݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: PART744[AMENDED]R݌ t ЌXHXXXHXHXXXH  XXH $  >   X:X $XHXX X:>݌̌XHXXXHXHXXXH  XXH $  W   X:X $XHXX X:1.Theauthoritycitationforpart744continuestoreadasfollows:W݌  \ ЌXHXXXHXHXXXH  XXH $  ʫ   X:X $XHXX X:ʫ#݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:  _ Authority: 50U.S.C.app.2401etseq.;50U.S.C.1701etseq.;22U.S.C.3201etseq.;42  U.S.C.2139a;Sec.901911,Pub.L.106387;Sec.221,Pub.L.10756;E.O.12058,43FR20947, p!  3CFR,1978Comp.,p.179;E.O.12851,58FR33181,3CFR,1993Comp.,p.608;E.O.12938, <#" 59FR59099,3CFR,1994Comp.,p.950;E.O.12947,60FR5079,3CFR,1995Comp.,p.356; %X $ E.O.13026,61FR58767,3CFR,1996Comp.,p.228;E.O.13099,63FR45167,3CFR,1998 &$"& Comp.,p.208;E.O.13222,66FR44025,3CFR,2001Comp.,p.783;E.O.13224,66FR49079,3 (#( CFR,2001Comp.,p.786;NoticeofAugust3,2006,71FR44551(August7,2006);Noticeof l*%* October27,2006,71FR64109(October31,2006).<݌ 8,', ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:ݱ݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:2.In744.1(a)(1),anewsentenceimmediatelyfollowingthecurrentsixthsentenceandanew | sentenceimmediatelyfollowingthecurrenttenthsentenceareadded,toreadasfollows:݌ H ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: 744.1GeneralProvisions  ݌  0 ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:(a)(1)Y݌    ЌXHXXXHXHXXXH  XXH $  3   X:X $XHXX X:3݌̌XHXXXHXHXXXH  XXH $  L   X:X $XHXX X:***L݌ D  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:ۺ݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:Section744.11imposeslicenserequirements,totheextentspecifiedinSupplementNo.4ofthis , partonentitieslistedinSupplementNo.4ofthispartforactivitiescontrarytothenationalsecurity  orforeignpolicyinterestsoftheUnitedStates.݌ t ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:E݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:***^݌  \ ЌXHXXXHXHXXXH  XXH $  <   X:X $XHXX X:<݌̌XHXXXHXHXXXH  XXH $  U   X:X $XHXX X:Section744.16setsforththerightofapartylistedinSupplementNo.4ofthisparttorequestthat  itslistingberemovedormodified.U݌ p!  ЌXHXXXHXHXXXH  XXH $  !   X:X $XHXX X:!z݌̌XHXXXHXHXXXH  XXH $  :   X:X $XHXX X:Ԁ:݌ %X $ ЌXHXXXHXHXXXH  XXH $  i   X:X $XHXX X:3.Section744.11isaddedtoreadasfollows:i݌ &$"& ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:#݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: 744.11Licenserequirementsthatapplytoentitiesactingcontrarytothenationalsecurityor l*%* foreignpolicyinterestsoftheUnitedStates.<݌ 8,', ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:BISmayimposeforeignpolicyexportandreexportlicenserequirementsandlimitationson | availabilityoflicenseexceptionsandmaysetlicenseapplicationreviewpolicybasedonthe H criteriainthissection.Suchrequirements,limitationsandpolicyareinadditiontothosesetforth  d elsewhereintheEAR.Licenserequirements,limitationsonuseoflicenseexceptionsandlicense  0 applicationreviewpolicywillbeimposedunderthissectionbyaddinganentitytotheEntityList    withareferencetothissectionandbystatingontheEntityListthelicenserequirementsand x  licenseapplicationreviewpolicythatapplytothatentity.BISmayremoveanentityfromthe D  EntityListifitisnolongerengagedintheactivitiesdescribedinparagraph(b)ofthissectionand ` isunlikelytoengageinsuchactivitiesinthefuture.BISmaymodifythelicenseexception , limitationsandlicenseapplicationreviewpolicythatappliestoaparticularentitytoimplementthe  policiesofthissection.AnymodificationtotheEntityListproposedtobemadepursuanttothis t sectionwillbereviewedbytheDepartmentsofCommerce,State,andDefense,andEnergyandthe @ Treasuryasappropriate..݌  \ ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:(a)LicenseRequirement,AvailabilityofLicenseExceptions,andLicenseApplicationReview  Policy.Alicenseisrequired,totheextentspecifiedontheEntityList,toexportorreexportany p!  itemsubjecttotheEARtoanentitythatislistedontheEntityListinanentrythatcontainsa <#" referencetothissection.LicenseExceptionsmaynotbeusedunlessauthorizedinthatentry. %X $ Applicationsforlicensesrequiredbythissectionwillbeevaluatedasstatedinthatentryin &$"& additiontoanyotherapplicablereviewpolicystatedelsewhereintheEAR.݌ (#(  XHXXXHXHXXXH  XXH $     X:X $XHXX X:݌ l*%* ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:(b)CriteriaforrevisingtheEntityList.EntitiesthatBIShasreasonablecausetobelieve,basedon   specificandarticulablefacts,havebeen,are,orposeasignificantriskofbeingorbecoming | involvedinactivitiesthatarecontrarytothenationalsecurityorforeignpolicyinterestsofthe H UnitedStatesandthoseactingonbehalfofsuchentitiesmaybeaddedtotheEntityListpursuantto  d thissection.ThissectionmaynotbeusedtoplaceontheEntityListanypartytowhichexportsor  0 reexportsrequirealicensepursuantto744.12,744.13,744.14or744.18ofthispart.This    sectionmaynotbeusedtoplaceontheEntityListanypartyifexportsorreexportstothatpartyof x  itemsthataresubjecttotheEARareprohibitedbyorrequirealicensefromanotherU.S. D  governmentagency.ThissectionmaynotbeusedtoplaceanyU.S.person,asdefinedin772.1, ` ontheEntityList.Examplesofactivitiesthatcouldbecontrarytothenationalsecurityorforeign , policyinterestsoftheUnitedStatesinclude:݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:  (1)Supportingpersonsengagedinactsofterror;3݌ t ЌXHXXXHXHXXXH  XXH $  F   X:X $XHXX X:F݌̌XHXXXHXHXXXH  XXH $  _   X:X $XHXX X:  (2)Actionsthatcouldenhancethemilitarycapabilityof,ortheabilitytosupportterrorism  \ ofgovernmentsthathavebeendesignatedbytheSecretaryofStateashavingrepeatedlyprovided ( supportforactsofinternationalterrorism;_݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $  X   X:X $XHXX X:(3)Transferring,developing,servicing,repairingorproducingconventionalweaponsina <#" mannerthatiscontrarytoUnitedStatesnationalsecurityorforeignpolicyinterestsorenabling %X $ suchtransfer,service,repair,development,orproductionbysupplyingparts,components, &$"& technology,orfinancingforsuchactivity;/݌ (#(  XHXXXHXHXXXH  XXH $     X:X $XHXX X:Ԁ݌ l*%* ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:(4)Deliberatelyfailingorrefusingtocomplywithanendusecheckconductedbyoron   behalfofBISortheDirectorateofDefenseTradeControlsoftheDepartmentofState,bydenying | access,byrefusingtoprovideinformationaboutpartiestoatransaction,orbyproviding H informationaboutsuchpartiesthatisfalseorthatcannotbeverifiedorauthenticated;or݌  d ЌXHXXXHXHXXXH  XXH $  X XB.S [ ck "KKXB   X:X $XHXX X:X݌̌XHXXXHXHXXXH  XXH $  X   X:X $XHXX X:  (5)EngaginginconductthatposesariskofviolatingtheEARandraisessufficientconcern    thatBISbelievesthatpriorreviewofexportsorreexportsinvolvingthepartyandthepossible x  impositionoflicenseconditionsorlicensedenialenhancesBISsabilitytopreventviolationsofthe D  EAR.݌ ` ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:"݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:4.Section744.16isaddedtoreadasfollows:;݌  ЌXHXXXHXHXXXH  XXH $  >   X:X $XHXX X:>݌̌XHXXXHXHXXXH  XXH $  W   X:X $XHXX X: 744.16ProcedureforrequestingremovalormodificationofanEntityListEntity .Anyentity @ listedontheEntityListmayrequestthatitslistingberemovedormodified.W݌  \ ЌXHXXXHXHXXXH  XXH $  N   X:X $XHXX X:N݌̌XHXXXHXHXXXH  XXH $  XB+ S [ ck "XBg   X:X $XHXX X:  (a)Allsuchrequests,includingreasonstherefor,mustbeinwritingandsentto:  (Addresstobeaddedinfinalrule).g݌ p!  ЌXHXXXHXHXXXH  XXH $  }   X:X $XHXX X:  (b)BISwillreviewsuchrequestsinconjunctionwiththeDepartmentsofDefense, <#" StateandEnergy,andifappropriateinaparticularcase,theTreasury.}݌ %X $ ЌXHXXXHXHXXXH  XXH $  g   X:X $XHXX X:  (c)TheChairoftheEndUserReviewCommitteewillconveythedecisiononthe &$"& requesttotherequesterinwriting.Thatdecisionwillbethefinalagencyactiononthe (#( request.g݌ l*%* ЌXHXXXHXHXXXH  XXH $  X{   X:X $XHXX X: {݌ 8,', ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:PART772[AMENDED]݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:T݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:5.Theauthoritycitationforpart772continuestoreadasfollows:m݌ H ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:  Authority: 50U.S.C.app.2401etseq.;50U.S.C.1701etseq.;E.O.13222,66FR44025,  0 3CFR,2001Comp.,p.783;NoticeofAugust3,2006,71FR44551(August7,2006).݌    ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:6.In772.1thedefinitionofU.S.personisamendedbyrevisingparagraph(a)introductorytextto D  readasfollows:݌ ` ЌXHXXXHXHXXXH  XXH $  }   X:X $XHXX X:}݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X: 772.1DefinitionoftermsasusedintheExportAdministrationRegulations(EAR).݌  ЌXHXXXHXHXXXH  XXH $      X:X $XHXX X: w ݌̌XHXXXHXHXXXH  XXH $  7    X:X $XHXX X:***7  ݌ @ ЌXHXXXHXHXXXH  XXH $  o    X:X $XHXX X:o  ݌̌XHXXXHXHXXXH  XXH $      X:X $XHXX X:U.S.Person.(a)Forpurposesof744.6,744.10,744.11,744.12,744.13,and744.14oftheEAR, ( thetermU.S.personincludes:  ݌  ЌXHXXXHXHXXXH  XXH $  P   X:X $XHXX X:P݌̌XHXXXHXHXXXH  XXH $  i   X:X $XHXX X:*****i݌ <#" ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:݌̌XHXXXHXHXXXH  XXH $     X:X $XHXX X:Dated݌ &$"& ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:L݌̌XHXXXHXHXXXH  XXH $      X:X $XHXX X: e݌̌XHXXXHXHXXXH  XXH $  %  _ X:X $XHXX X:ChristopherA.Padilla%~݌ 8,', ЌXHXXXHXHXXXH  XXH $  x   X:X $XHXX X:AssistantSecretaryx݌  ЌXHXXXHXHXXXH  XXH $     X:X $XHXX X:ԀforExportAdministration݌ | ЌXHXXXHXHXXXH