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23 October 2006
[Federal Register: October 23, 2006 (Volume 71, Number 204)]
[Proposed Rules]
[Page 62065-62067]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23oc06-6]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Chapter VII
[Docket No. 061005255-6255-01]
Effects of Foreign Policy-Based Export Controls
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Request for comments on foreign policy-based export controls.
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SUMMARY: The Bureau of Industry and Security (BIS) is reviewing the
foreign policy-based export controls in the Export Administration
Regulations to determine whether they should be modified, rescinded or
extended. To help make these determinations, BIS is seeking comments on
how existing foreign policy-based export controls have affected
exporters and the general public.
DATES: Comments must be received by November 22, 2006.
ADDRESSES: Written comments may be sent by e-mail to
publiccomments@bis.doc.gov. Include ``FPBEC'' in the subject line of
the message. Written comments (three copies) may be submitted by mail
or hand delivery to Sheila Quarterman, Regulatory Policy Division,
Bureau of Industry and Security, Department of Commerce, 14th Street &
Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230. Include
``FPBEC'' in the subject line of the message.
FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy
Division, Office of Nonproliferation and Treaty Compliance, Bureau of
Industry
[[Page 62066]]
and Security, Telephone: (202) 482-4252. Copies of the current Annual
Foreign Policy Report to the Congress are available at http://www.bis.doc.gov/News/2006/foreignPolicyReport/Default.htm
and copies
may also be requested by calling the Office of Nonproliferation and
Treaty Compliance at the number listed above.
SUPPLEMENTARY INFORMATION: Foreign policy-based controls in the Export
Administration Regulations (EAR) are implemented pursuant to section 6
of the Export Administration Act of 1979, as amended. The current
foreign policy-based export controls maintained by the Bureau of
Industry and Security (BIS) are set forth in the EAR, including in
parts 742 (CCL Based Controls), 744 (End-User and End-Use Based
Controls) and 746 (Embargoes and Special Country Controls). These
controls apply to a range of countries, items, activities and persons,
including: certain general purpose microprocessors for `military end-
uses' and `military end-users' (Sec. 744.17); significant items (SI):
hot section technology for the development, production, or overhaul of
commercial aircraft engines, components, and systems (Sec. 742.14);
encryption items (Sec. Sec. 742.15 and 744.9); crime control and
detection commodities (Sec. 742.7); specially designed implements of
torture (Sec. 742.11); certain firearms included within the Inter-
American Convention Against the Illicit Manufacturing of and
Trafficking in Firearms, Ammunition, Explosives, and Other Related
Materials (Sec. 742.17); regional stability items (Sec. 742.6);
equipment and related technical data used in the design, development,
production, or use of certain rocket systems and unmanned air vehicles
(Sec. Sec. 742.5 and 744.3); chemical precursors and biological
agents, associated equipment, technical data, and software related to
the production of chemical and biological agents (Sec. Sec. 742.2 and
744.4) and various chemicals included in those controlled pursuant to
the Chemical Weapons Convention (Sec. 742.18); nuclear propulsion
(Sec. 744.5); aircraft and vessels (Sec. 744.7); embargoed countries
(part 746); countries designated as supporters of acts of international
terrorism (Sec. Sec. 742.8, 742.9, 742.10, 742.19, 746.2, and 746.7);
certain entities in Russia (Sec. 744.10); individual terrorists and
terrorist organizations (Sec. Sec. 744.12, 744.13 and 744.14); certain
persons designated by Executive Order 13315 (``Blocking Property of the
Former Iraqi Regime, Its Senior Officials and Their Family Members'')
(Sec. 744.18); and certain sanctioned entities (Sec. 744.20).
Attention is also given in this context to the controls on nuclear-
related commodities and technology (Sec. Sec. 742.3 and 744.2), which
are, in part, implemented under section 309(c) of the Nuclear Non
Proliferation Act.
Under the provisions of section 6 of the Export Administration Act
of 1979, as amended (50 U.S.C. app. Sec. Sec. 2401-2420 (2000)) (EAA),
export controls maintained for foreign policy purposes require annual
extension. Section 6 of the EAA requires a report to Congress when
foreign policy-based export controls are extended. The EAA expired on
August 20, 2001. Executive Order 13222 of August 17, 2001 (3 CFR, 2001
Comp., p. 783 (2002)), which has been extended by successive
Presidential Notices, the most recent being that of August 3, 2006 (71
FR 44551, August 7, 2006), continues the EAR and, to the extent
permitted by law, the provisions of the EAA, in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701-1706
(2000)). The Department of Commerce, insofar as appropriate, is
following the provisions of section 6 in reviewing foreign policy-based
export controls, requesting public comments on such controls, and
submitting a report to Congress.
In January 2006, the Secretary of Commerce, on the recommendation
of the Secretary of State, extended for one year all foreign policy-
based export controls then in effect.
To assure public participation in the review process, comments are
solicited on the extension or revision of the existing foreign policy-
based export controls for another year. Among the criteria considered
in determining whether to continue or revise U.S. foreign policy-based
export controls are the following:
1. The likelihood that such controls will achieve the intended
foreign policy purpose, in light of other factors, including the
availability from other countries of the goods, software or technology
proposed for such controls;
2. Whether the foreign policy purpose of such controls can be
achieved through negotiations or other alternative means;
3. The compatibility of the controls with the foreign policy
objectives of the United States and with overall United States policy
toward the country subject to the controls;
4. Whether reaction of other countries to the extension of such
controls by the United States is not likely to render the controls
ineffective in achieving the intended foreign policy purpose or be
counterproductive to United States foreign policy interests;
5. The comparative benefits to U.S. foreign policy objectives
versus the effect of the controls on the export performance of the
United States, the competitive position of the United States in the
international economy, the international reputation of the United
States as a supplier of goods and technology; and
6. The ability of the United States to enforce the controls
effectively.
BIS is particularly interested in receiving comments on the
economic impact of proliferation controls. BIS is also interested in
industry information relating to the following:
1. Information on the effect of foreign policy-based export
controls on sales of U.S. products to third countries (i.e., those
countries not targeted by sanctions), including the views of foreign
purchasers or prospective customers regarding U.S. foreign policy-based
export controls.
2. Information on controls maintained by U.S. trade partners. For
example, to what extent do they have similar controls on goods and
technology on a worldwide basis or to specific destinations?
3. Information on licensing policies or practices by our foreign
trade partners which are similar to U.S. foreign policy-based export
controls, including license review criteria, use of conditions,
requirements for pre- and post-shipment verifications (preferably
supported by examples of approvals, denials and foreign regulations).
4. Suggestions for revisions to foreign policy-based export
controls that would (if there are any differences) bring them more into
line with multilateral practice.
5. Comments or suggestions as to actions that would make
multilateral controls more effective.
6. Information that illustrates the effect of foreign policy-based
export controls on the trade or acquisitions by intended targets of the
controls.
7. Data or other information as to the effect of foreign policy-
based export controls on overall trade at the level of individual
industrial sectors.
8. Suggestions as to how to measure the effect of foreign policy-
based export controls on trade.
9. Information on the use of foreign policy-based export controls
on targeted countries, entities, or individuals.
BIS is also interested in comments relating generally to the
extension or revision of existing foreign policy-based export controls.
Parties submitting comments are asked to be as specific as
possible. All comments received before the close of the comment period
will be considered
[[Page 62067]]
by BIS in reviewing the controls and developing the report to Congress.
All information relating to the notice will be a matter of public
record and will be available for public inspection and copying. In the
interest of accuracy and completeness, BIS requires written comments.
Oral comments must be followed by written memoranda, which will also be
a matter of public record and will be available for public review and
copying.
The Office of Administration, Bureau of Industry and Security, U.S.
Department of Commerce, displays these public comments on BIS's Freedom
of Information Act (FOIA) Web site at http://www.bis.doc.gov/foia. This
office does not maintain a separate public inspection facility. If you
have technical difficulties accessing this Web site, please call BIS's
Office of Administration at (202) 482-0637 for assistance.
Dated: October 12, 2006.
Christopher A. Padilla,
Assistant Secretary for Export Administration.
[FR Doc. E6-17713 Filed 10-20-06; 8:45 am]
BILLING CODE 3510-33-P