[Federal Register Volume 59, Number 57 (Thursday, March 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6886]


[[Page Unknown]]

[Federal Register: March 24, 1994]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 799

[Docket No. 930775-4082]
RIN 0694-AA96

 

Removal of National Security-Based Validated License Requirements 
for Exports to Proscribed Destinations of Oil Well Perforators

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule amends ECCN 1C18A to remove national security-
based validated license requirements for exports to Country Groups Q, 
W, Y, and Z and the People's Republic of China of certain oil well 
perforators. This action is a result of a determination that foreign 
availability exists for certain oil well perforators within the meaning 
of section 5(f) of the Export Administration Act (EAA), as amended, and 
part 791 of the Export Administration Regulations (EAR). The Bureau of 
Export Administration (BXA) published an interim rule in the Federal 
Register on November 23, 1993 (58 FR 61806), that included the foreign 
availability determination and removed national security-based 
validated license requirements for exports of these oil well 
perforators to Country Groups T and V, except the People's Republic of 
China.
    A validated export license continues to be required for exports to 
Iran, Syria, Country Groups S and Z, and the South African military and 
police, for foreign policy reasons.
    This rule will eliminate export license applications for these oil 
well perforators for all but a few countries, thereby reducing the 
paperwork burden on exporters.

EFFECTIVE DATE: This rule is effective March 18, 1994.

FOR FURTHER INFORMATION CONTACT: For questions of a technical nature, 
contact Jeffrey Tripp, Office of Technology and Policy Analysis, Bureau 
of Export Administration, Department of Commerce, Telephone: (202) 482-
1309.
    For questions on the foreign availability assessment, contact 
Ronald Rolfe, Foreign Industrial Analyst, Office of Foreign 
Availability, Bureau of Export Administration, Department of Commerce, 
Telephone: (202) 482-0074.

SUPPLEMENTARY INFORMATION:

Background

    Section 5(f)(3) of the EAA and part 791 of the EAR set forth the 
procedures and criteria for determining the foreign availability of 
items controlled for national security reasons. The Secretary of 
Commerce, or the Secretary's designee, is authorized to determine 
whether foreign availability exists.
    With limited exceptions, the Department of Commerce may not 
maintain national security controls on exports of an item when the 
Department determines that items of comparable quality are available, 
in fact, to countries from foreign sources in quantities sufficient to 
render the controls ineffective in achieving their purpose.
    On June 21, 1993, the Office of Foreign Availability (OFA) 
initiated a foreign availability assessment of oil well perforators 
controlled by ECCN 1C18A in response to a claim filed pursuant to Part 
791 of the EAR. The Department published a notice of the initiation of 
the assessment in the Federal Register on July 28, 1993 (58 FR 40407).
    On October 18, 1993, the Acting Assistant Secretary, having 
considered the assessment and other relevant information provided by 
OFA, determined that foreign availability of certain oil well 
perforators exists within the meaning of section 5(f) of the EAA and 
part 791 of the EAR. The Department provided all interested agencies an 
opportunity to review and comment on the assessment and determination. 
On November 8, 1993, based on discussions with other agencies, the 
Acting Assistant Secretary clarified the scope of oil well perforators 
covered by the foreign availability determination, as provided for in 
the EAA.
    On November 23, 1993, the Department published an interim rule 
containing the foreign availability determination. This rule removed 
validated licensing requirements for exports to most non-proscribed 
destinations (i.e. Country Groups T and V, except for Iran, Syria, and 
the People's Republic of China) for oil well perforators controlled by 
1C18A, and made them eligible for export under General License GFW.
    Effective March 18, 1994, these oil well perforators are eligible 
for export under General License G-DEST to all destinations except 
Cuba, North Korea, Libya, Iran, Syria, and the South African military 
and police.
    Exporters should also be aware that the Department of the 
Treasury's Office of Foreign Assets Control maintains an embargo on 
other destinations, such as Iraq, Haiti, and the Federal Republic of 
Yugoslavia (Serbia and Montenegro).
    In the course of the foreign availability study, the U.S. 
determined that there was not unanimous agreement that these oil well 
perforators were, in fact, controlled under the COCOM International 
Munitions List. Consistent with the foreign availability procedures, 
the United States has notified COCOM that it is removing national 
security controls on these oil well perforators.
    This final rule amends ECCN 1C18A by revising the GFW paragraph in 
the Requirements section to remove GFW eligibility for certain oil well 
perforators. General License GFW no longer applies to these oil well 
perforators because they may now be exported under General License G-
DEST to most destinations.
    This rule also creates a new ECCN 1C93F for shaped charges 
specially designed for oil well operations, utilizing one charge 
functioning along a single axis, that upon detonation produce a hole, 
and: (a) Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and 
(b) have only a uniformly shaped conical liner with an included angle 
of 90 degrees or less; and (c) have a total explosive mass of no more 
than 90 grams; and (d) have a diameter not exceeding three inches.These 
changes are controlled for foreign policy reasons to Country Groups S 
and Z, Iran, Syria, and the South African military and police. The 
creation of ECCN 1C93F does not constitute a new control.

Rulemaking Requirements

    1. This rule was not subject to review by the Office of Management 
and Budget under Executive Order 12866.
    2. This rule involves collections of information subject to the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These 
collections have been approved by the Office of Management and Budget 
under control numbers 0694-0005, 0694-0007, and 0694-0010.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by section 
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other 
law, under section 3(a) of the Regulatory Flexibility Act (5 U.S.C. 
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis 
has to be or will be prepared.
    5. The provisions of the Administrative Procedure Act, 5 U.S.C. 
553, requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in the effective date, are 
inapplicable because this regulation involves a military or foreign 
affairs function of the United States. Section 13(b) of the EAA does 
not require that this rule be published in proposed form because this 
rule does not impose a new control. Further, no other law requires that 
a notice of proposed rulemaking and an opportunity for public comment 
be given for this rule.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Patricia 
Muldonian, Office of Technology and Policy Analysis, Bureau of Export 
Administration, Department of Commerce, P.O. Box 273, Washington, DC 
20044.

List of Subjects in 15 CFR Part 799

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 799 of the Export Administration Regulations (15 
CFR parts 730-799) is amended as follows:
    1. The authority citation for 15 CFR part 799 continues to read as 
follows:

    Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et 
seq.), as amended; sec. 101, Pub. L. 93-153, 87 Stat. 576 (30 U.S.C. 
185), as amended; sec. 103, Pub. L. 94-163, 89 Stat. 877 (42 U.S.C. 
6212), as amended; secs. 201 and 201(11)(e), Pub. L. 94-258, 90 
Stat. 309 (10 U.S.C. 7420 and 7430(e)), as amended; Pub. L. 95-223, 
91 Stat. 1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 92 Stat. 120 
(22 U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, Pub. L. 95-
372, 92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 Stat. 503 (50 
U.S.C. App. 2401 et seq.), as amended (extended by Pub. L. 103-10, 
107 Stat. 40); sec. 125, Pub. L. 99-64, 99 Stat. 156 (46 U.S.C. 
466c); E.O. 11912 of April 13, 1976 (41 FR 15825, April 15, 1976); 
E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended; 
E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978; E.O. 12214 of 
May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12735 of November 16, 
1990 (55 FR 48587, November 20, 1990), as continued by Notice of 
November 12, 1993 (58 FR 60361, November 15, 1993); E.O. 12867 of 
September 30, 1993 (58 FR 51743, October 7, 1993; and E.O. 12868 of 
September 30, 1993 (58 FR 51749, October 7, 1993).

PART 799--[AMENDED]

Supplement No. 1 to Sec. 799.1--[Amended]

    2. In Supplement No. 1 to Sec. 799.1 (the Commerce Control List), 
Category 1 (Materials), ECCN 1C18A is revised and a new ECCN 1C93F is 
added, as follows:
1C18A Items on the International Munitions List

Requirements

Validated License Required: QSTVWYZ
Unit: Kilograms
Reason for Control: NS
GLV: $3,000
GCT: No
GFW: Yes (Advisory Note Only).

List of Items Controlled

    a. Ethyl and Methyl centralites.
    b. NN-Diphenylurea (unsymmetrical diphenylurea).
    c. Methyl-NN-diphenylurea (methyl unsymmetrical diphenylurea).
    d. Ethyl-NN-diphenylurea (ethyl unsymmetrical diphenylurea).
    e. Ethyl phenyl urethane.
    f. Diphenyl urethane.
    g. Diortho tolyl-urethane.
    h. 2-Nitrodiphenylamine.
    i. p-Nitromethylaniline.
    j. 2,2' Dinitropropanol.
    k. Bis(2,2' dinitropropyl) formal and acetal.
    l. 3-Nitraza-1,5 pentane diisocyanate.
    m. Guanidine nitrate.
    n. Hydrogen peroxide in concentrations of 85%.
    o. Charges specially designed for civilian applications, containing 
military explosives, except those items described in 1C93.

    TECHNICAL NOTE: Military high explosives are solid, liquid or 
gaseous substances or mixtures of substances that, in their 
application as primary, booster, or main charges in warheads, 
demolition and other military applications, are required to 
detonate.

    ADVISORY NOTE: Licenses are likely to be approved for export to 
satisfactory end-users in Country Groups QWY and the PRC of certain 
explosive substances and mixtures in reasonable quantities for 
civilian or industrial purposes when made into cartridges or charges 
of an exclusively civilian or industrial nature, such as propellants 
for sporting purposes or shooting gallery practice; cartridges for 
riveting guns; and explosive charges for agricultural purposes, 
public works, mines, quarries or oil-well drilling. The following 
are the substances or mixtures to which this procedure applies:
    a. Nitrate-based (40 percent or more) and provided they do not 
contain more than 40 percent nitroglycol/nitroglycerin or no more 
than 16 percent TNT;
    b. Nitrocellulose with a nitrogen content of over 12.2 percent;
    c. Nitroglycerin;
    d. Single base nitrocellulose; and
    e. Sodium azide and other inorganic azides.
* * * * *
1C93F Oil Well Perforators

Requirements

Validated License Required: SZ, Iran, Syria, South African military and 
police
Unit: Number
Reason for Control: FP
GLV: No
GCT: No
GFW: No

List of Items Controlled

    a. Shaped charges specially designed for oil well operations, 
utilizing one charge functioning along a single axis, that upon 
detonation produce a hole, and:
    a.1. Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and
    a.2. Have only a uniformly shaped conical liner with an included 
angle of 90 degrees or less; and
    a.3. Have a total explosive mass of no more than 90 grams; and
    a.4. Have a diameter not exceeding three inches.
    b. [Reserved]

    Dated: March 17, 1994.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 94-6886 Filed 3-23-94; 8:45 am]
BILLING CODE 3510-DT-P