Commerce/BIS Amends EAR 15 CFR Parts 734, 740, 744, 748, 750, 766 and 

75 FR 31678-31682: 15 CFR Parts 734, 740, 744, 748, 750, 766 and 774;

Export Administration Regulations: Technical Corrections

* AGENCY: Bureau of Industry and Security, Commerce.

* ACTION: Final Rule.

* SUMMARY: This rule clarifies language concerning the de minimis

provisions of the Export Administration Regulations and certain

performance criteria of turning machines. It also removes obsolete cross

references, removes and reserves two regulatory provisions, corrects a

typographical error, and removes an unnecessary reporting requirement.

* DATES: This rule is effective June 4, 2010.

* FOR FURTHER INFORMATION CONTACT: William H. Arvin, Regulatory Policy

Division, e-mail warvin@bis.doc.gov, telephone 202 482 2440.

* SUPPLEMENTARY INFORMATION:

Background

- Removal of Potentially Confusing Language Regarding De Minimis

Content of Foreign Made Items. The Export Administration Regulations

(EAR) generally do not apply to items that were made and are located

outside the United States, and that contain only the ``de minimis'

level of U.S. origin content as defined in Sec. 734.4. The procedures

and standards for calculating whether an item exceeds the de minimis

threshold are contained in Supplement No. 2 to Part 734 of the EAR.

Section 732.2(d), which directs readers to that supplement, notes that

``[t]his step [de minimis calculation] is appropriate only for items

that are made outside the United States and are not currently in the

United States.' Pursuant to Sec. 734.3(a)(1), all items, regardless of

level of foreign content, are subject to the EAR if they are physically

located in the United States. This rule removes Sec. 734.3(b)(4), which

delineates a category of items not subject to the EAR (``foreign made

items that have less than the de minimis percentage of controlled U.S.

content based on the principles described in Sec. 734.3 of this

part'), because the provision could be erroneously read as applying the

de minimis exclusion to foreign made items that are located in the

United States. BIS attempted to remove Sec. 734.3(b)(4) in a previous

rule. (See 73 FR 75942, December 15, 2008). However, the drafting

instruction in that rule erroneously read, ``In Sec. 734.4, remove

paragraph (b)(4).' (Id.) Because Sec. 734.4 does not contain a

paragraph (b)(4), that instruction had no effect. This rule includes the

correct drafting instruction to remove Sec. 734.3(b)(4).

- Correction of Incorrect Paragraph Designation ....

- Transition to Web-Based System for Information About the Status of

Certain Matters Pending With BIS ....

- Removal of Obsolete Provision Regarding Restrictions on Exports and

Reexports Involving Persons Named in General Orders ....

- Removal of Reference to Telephonic Notification Regarding Personal

Identification Numbers (PIN) ....

- Removal of Cross References to EAR paragraph That No Longer Exists

- Removal of Unnecessary Notification Requirement ....

- Replacement of Obsolete Terminology ....

- Clarifying Language Regarding Certain Machine Tools Subject to

Nuclear Proliferation Export Controls ....

- Correcting a Typographical Error Regarding Calculating the

``Adjusted Peak Performance' of Digital Computers ....

Dated: May 24, 2010.

Kevin J. Wolf, Assistant Secretary for Export Administration.