[Federal Register Volume 61, Number 63 (Monday, April 1, 1996)]
[Rules and Regulations]
[Pages 14243-14244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7846]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 769

[Docket No. 960322091-6091-01]
RIN 0694-XX05


Restrictive Trade Practices or Boycotts

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) published a notice 
on February 1, 1995 (61 FR 3669) designed to clarify and update the 
foreign boycott provisions of the Export Administration Regulations 
(EAR). BXA is now issuing a final rule based on that notice.
    Specifically, this rule amends the EAR by adding a new Supplement 
No. 17 to the foreign boycott provisions of the EAR (part 769). This 
Supplement states that it is the Department's position that, given the 
Hashemite Kingdom of Jordan's formal termination

[[Page 14244]]
of its participation in the Arab economic boycott of Israel on August 
16, 1995, certain requests for information, action or agreement from 
Jordan which were considered boycott-related by implication now cannot 
be presumed boycott-related and thus would not be prohibited or 
reportable under the foreign boycott provisions of the EAR. In 
addition, Supplement No. 17 reminds U.S. persons that requests that are 
on their face boycott-related or that are for action obviously in 
furtherance or support of an unsanctioned foreign boycott are subject 
to the foreign boycott provisions of the EAR, irrespective of the 
country of origin.

EFFECTIVE DATE: This rule is effective April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Frederick S. Davidson, Esq., 
Compliance Policy Division, Office of Antiboycott Compliance, U.S. 
Department of Commerce, 202-482-2381.

SUPPLEMENTARY INFORMATION:

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E.O. 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 0694-0012 and 0694-0058. 
Notwithstanding any other provision of law, no person is required to 
respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.
    3. This final rule does not contain policies with Federalism 
implications sufficient to warrant preparation of a Federalism 
assessment under Executive Order 12612.
    4. 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 effective date, are inapplicable 
because this regulation involves a foreign and military affairs 
function of the United States. No other law requires that a notice of 
proposed rulemaking and an opportunity for public comment be given for 
this rule.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under section 
553 of the Administrative Procedure Act (5 U.S.C. 553), or by any other 
law, under sections 3(a) and 4(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.

List of Subjects in 15 CFR part 769

    Boycotts, Foreign trade, Reporting and recordkeeping requirements, 
Restrictive trade practices, Trade practices.

    Accordingly, part 769 of the Export Administration Regulations (15 
CFR parts 730-799) is amended as follows:

PART 769A--[AMENDED]

    1. The authority citation for 15 CFR part 769 is revised to read as 
follows:

    Authority: Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et 
seq.); 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); 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. 12730 of September 30, 1990 (55 FR 
40373, October 2, 1990), as continued by Notice of September 25, 
1992 (57 FR 44649, September 28, 1992); E.O. 12924 of August 19, 
1994 (59 FR 43437, August 23, 1994); and Notice of August 15, 1995, 
60 FR 42767.

    2. Part 769 currently in effect is amended by adding a new 
Supplement No. 17 to read as follows:

Supplement No. 17 To Part 769

    Pursuant to Articles 5, 7, and 26 of the Treaty of Peace between 
the State of Israel and the Hashemite Kingdom of Jordan and 
implementing legislation enacted by Jordan, Jordan's participation 
in the Arab economic boycott of Israel was formally terminated on 
August 16, 1995.
    On the basis of this action, it is the Department's position 
that certain requests for information, action or agreement from 
Jordan which were considered boycott-related by implication now 
cannot be presumed boycott-related and thus would not be prohibited 
or reportable under the regulations. For example, a request that an 
exporter certify that the vessel on which it is shipping its goods 
is eligible to enter Hashemite Kingdom of Jordan ports has been 
considered a boycott-related request that the exporter could not 
comply with because Jordan has had a boycott in force against 
Israel. Such a request from Jordan after August 16, 1995 would not 
be presumed boycott-related because the underlying boycott 
requirement/basis for the certification has been eliminated. 
Similarly, a U.S. company would not be prohibited from complying 
with a request received from Jordanian government officials to 
furnish the place of birth of employees the company is seeking to 
take to Jordan because there is no underlying boycott law or policy 
that would give rise to a presumption that the request was boycott-
related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
regulations, irrespective of the country of origin. For example, 
requests containing references to ``blacklisted companies'', 
``Israel boycott list'', ``non-Israeli goods'' or other phrases or 
words indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.

    Dated: March 22, 1996.
John Despres,
Assistant Secretary for Export Enforcement.
[FR Doc. 96-7846 Filed 3-29-96; 8:45 am]
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