[Federal Register Volume 59, Number 246 (Friday, December 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31622]


[[Page Unknown]]

[Federal Register: December 23, 1994]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration
[Docket No. 941112-4312]
RIN 0694-AB06

 

Chemical Weapons Convention Implementation Regulations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Notice of the development of regulations to implement U.S. 
industry obligations under the Chemical Weapons Convention.

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SUMMARY: The Bureau of Export Administration (BXA) is providing notice 
that it is developing regulations and procedures that specify industry 
obligations under the Chemical Weapons Convention (CWC). The CWC 
requires that upon its entry into force, each country that ratifies the 
Convention adopt the necessary measures to implement its obligations. 
These include the establishment of a National Authority to oversee 
compliance with the CWC, and enactment of implementing legislation with 
penalties for noncompliance. Accordingly, the Clinton Administration 
has submitted both the treaty and the related implementing legislation 
to the Congress for consideration.
    This advance notice and request for comments is being issued to 
solicit public comments from industry and the interested public on 
industry obligations under the CWC before BXA begins to draft 
regulations.

DATES: Comments should be received by January 23, 1995.

ADDRESSES: Written comments (six copies) should be sent to Nancy Crowe, 
Regulatory Policy Division, room 1087, Office of Exporter Services, 
Bureau of Export Administration, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: For general information, contact Nancy 
Crowe, Office of Exporter Services, Bureau of Export Administration, 
telephone: (202)482-2440.
    For information on seminars, contact Rodney Menas, Office of 
Exporter Services, Bureau of Export Administration, telephone: (202) 
482-6031.
    For a copy of the official text of the Chemical Weapons Convention, 
entitled ``Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on Their 
Destruction'', contact the Arms Control and Disarmament Agency, 
telephone: (800) 581-ACDA.
    For a copy of ``The Chemical Weapons Convention: Guidance for 
Industry on How to Comply'', contact Peter Ruzicka, Office of 
Congressional and Public Affairs, Bureau of Export Administration, 
telephone: (202) 482-2721.
SUPPLEMENTARY INFORMATION: On January 13, 1993, the United States along 
with over 130 other countries signed the Chemical Weapons Convention 
(CWC, or Convention), and in doing so recognized that chemical weapons 
(CW) should never be used as implements of war.
    The CWC prohibits the development, production, acquisition, 
retention, transfer and use of chemical weapons. It also requires that 
each signatory destroy its stocks of chemical weapons, dismantle its 
chemical weapons production facilities and refrain from assisting any 
other country's CW programs.
    The chemicals covered by the CWC are divided into ``schedules'' 
based on their possible utility in developing chemical weapons. 
Schedule 1 covers known warfare agents and their immediate precursors, 
which have very limited industrial and medical applications. Schedule 2 
covers toxic chemicals and precursors that have some industrial uses, 
and Schedule 3 covers chemicals with broader commercial applications. 
The CWC also covers ``other relevant facilities'' that produce 
unscheduled discrete organic chemicals or discrete organic chemicals 
containing phosphorus, sulphur or fluorine above specific thresholds.
    The U.S. chemical industry is dynamic and broad-based. It includes 
over 12,000 plants, employing over 860,000 people. Based on employment 
information published in the Bureau of the Census 1990 County Business 
Patterns, chemical manufacturing facilities are located in nearly every 
state.
    According to the Commerce Department's 1994 Industrial Outlook, 
chemical and allied product shipments (SIC 28) in 1993 were valued at 
$311 billion, imports $28 billion, and exports $43 billion. This is the 
United States' largest exporting sector, and it has maintained a 
positive trade balance during the last decade.
    Because many of the chemicals covered by the CWC have legitimate 
commercial applications, the Convention will have a far-reaching impact 
on U.S. industry. For example, thiodiglycol (TDG) is commonly used to 
manufacture ink for ball-point pens. However, it is also a precursor 
for the blistering agent mustard. Likewise, trimethyl phosphite is 
widely used to develop insecticides--it is also a precursor for some 
nerve agents. Therefore, the production, shipment, use and in some 
cases storage of such chemicals will be subject to CWC monitoring, 
affecting up to an estimated 6000 U.S. facilities involved in these 
activities.
    In order to ensure strict compliance with its provisions, the CWC 
specifies an extensive reporting and international inspection regime 
for facilities, including civil industries that produce, and in some 
cases process or consume, chemicals that could be used in weapons 
programs. It should be noted that the CWC includes extensive 
confidentiality provisions intended to protect the confidential 
business information of companies that are subject to the reporting and 
inspection requirements of the CWC.
    As noted above, BXA estimates that CWC reporting requirements may 
apply to thousands of commercial chemical facilities. In addition, 
facilities that produce, and in some cases process or consume, 
specified quantities of CWC-related chemicals will be subject to 
routine on-site inspections conducted by international inspectors. The 
Convention also provides for challenge on-site inspections, which may 
be conducted at any public or private location at the request of 
another country when there is legitimate concern about activities that 
may be in violation of CWC provisions.
    The reports and inspections will be ``site'' based. The large 
chemical companies that have dozens of reportable production and 
storage sites will be required to submit CWC-required information on 
each site. Reporting and inspection requirements will be extensive 
because companies that currently manufacture chemicals that are not 
considered toxic may have the flexibility to switch production to the 
more lethal varieties.
    In addition to reporting and inspection requirements, the CWC also 
includes production limits on Schedule I chemicals as well as 
restrictions on trade in all Scheduled chemicals to ensure that the 
chemicals are used only for certain activities not prohibited by the 
Convention.
    The CWC also requires that upon its entry into force, each country 
that ratifies the Convention adopt the necessary measures to implement 
its obligations. These include the establishment of a National 
Authority to oversee compliance with the CWC, and enactment of 
implementing legislation with penalties for noncompliance. Accordingly, 
the Clinton Administration has submitted both the treaty and the 
related implementing legislation to the Congress for consideration.
    It should be noted that the treaty will not enter into force until 
180 days after the 65th nation ratifies. Reports are due to the 
international organization 30 days thereafter, however U.S. industry 
will need to submit its reports in advance of entry into force to 
ensure the U.S. will be in compliance with its international 
obligations.
    The Bureau of Export Administration (BXA) is therefore providing 
advance notice that it will begin drafting regulations to specify the 
requirements of the CWC. Because of the potential impact the Convention 
will have on U.S. industry, BXA is requesting comments from industry 
and interested public before it begins drafting regulations. Upon 
receipt and review of comments, BXA will draft regulations and publish 
them in the Federal Register.
    BXA intends that all information obtained from the public in 
connection with this notice be a matter of public record. Comments 
received will be available for public inspection and copying. BXA will 
not accept submissions made on a confidential basis. Communications 
between agencies of the United States Government or with foreign 
governments will not be made available for public inspection.
    In the interest of accuracy and completeness, BXA 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 public record concerning these comments will be maintained in 
the Freedom of Information Records Inspection Facility, room 4525, U.S. 
Department of Commerce, 14th Street and Pennsylvania Avenue, NW., 
Washington, DC 20230. Records in this facility, including written 
public comments and memoranda summarizing the substance of oral 
communications, may be inspected and copied in accordance with 
regulations published in part 4 of title 15 of the Code of Federal 
Regulations. Information about inspection and copying of records at 
this facility may be obtained from Margaret Cornejo, BXA Freedom of 
Information Officer, at the above address or by calling (202) 482-5653.

    Dated: December 20, 1994.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 94-31622 Filed 12-22-94; 8:45 am]
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