[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2615-2616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1038]


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DEPARTMENT OF DEFENSE
48 CFR Part 225

[DFARS Case 96-D319]


Defense Federal Acquisition Regulation Supplement; Authority To 
Waive Foreign Purchase Restrictions

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comments.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Section 810 of the National Defense Authorization Act of 
Fiscal Year 1997 (Public Law 104-201). Section 810 adds new authority 
to waive the restrictions on foreign purchases at 10 U.S.C. 2534.

DATES: Effective date: January 17, 1997.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before March 18, 1997, to be 
considered in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to: 
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD 
(A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 96-D319 in 
all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule implements Section 810 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201). Section 
810 adds new authority to waive the restrictions on foreign purchases 
at 10 U.S.C. 2534, applicable to buses, chemical weapons antidote, air 
circuit breakers, ball and roller bearings, totally enclosed lifeboat 
survival systems, and anchor and mooring chain, if application of the 
restrictions would impede the reciprocal procurement of defense items 
under a memorandum of understanding. However, this waiver authority 
will not be effective with regard to the additional restrictions on the 
acquisition of anchor and mooring chain, noncommercial ball and roller 
bearings, and totally enclosed lifeboat survival systems, contained in 
defense appropriations acts (and implemented at DFARS 225.7012, 
225.7019, and 225.7022, respectively).

B. Regulatory Flexibility Act

    This interim rule is not expected to have a significant economic 
impact on a substantial number of small entities within the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because there 
are no known small business manufacturers of buses, air circuit 
breakers, or the restricted chemical weapons antidote; acquisition of 
anchor and mooring chain, noncommercial ball and roller bearings, and 
totally enclosed lifeboat survival systems is presently restricted to 
domestic sources by defense

[[Page 2616]]

appropriations acts; and the restrictions of 10 U.S.C. 2534 do not 
apply to purchases of commercial items incorporating ball or roller 
bearings. An Initial Regulatory Flexibility Analysis has, therefore, 
not been prepared. Comments are invited from small businesses and other 
interested parties. Comments from small entities concerning the 
affected DFARS subparts also will be considered in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 96-D319 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this interim 
rule does not contain any information collection requirements that 
require approval by the Office of Management and Budget under 44 U.S.C. 
3501, et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish this 
interim rule prior to affording the public an opportunity to comment. 
This action is necessary to implement Section 810 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public Law 104-201). 
Section 810 adds new authority to waive the restrictions on foreign 
purchases at 10 U.S.C. 2534, and was effective upon enactment on 
September 23, 1996. Comments received in response to the publication of 
this interim rule will be considered in formulating the final rule.

List of Subjects in 48 CFR Part 225

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR Part 225 is amended as follows:
    1. The authority citation for 48 CFR Part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 225--FOREIGN ACQUISITION

    2. Section 225.7005 is amended by revising paragraph (a)(3) to read 
as follows:


225.7005  Waiver of certain restrictions.

* * * * *
    (a) * * *
    (3) Application of the restriction would impede cooperative 
programs entered into between DoD and a foreign country or would impede 
the reciprocal procurement of defense items under a memorandum of 
understanding providing for reciprocal procurement of defense items 
under 225.872, and that country does not discriminate against defense 
items produced in the United States to a greater degree than the United 
States discriminates against defense items produced in that country.
* * * * *
    3. Section 225.7019-3 is amended by revising paragraph (a)(1)(iv) 
to read as follows:


225.7019-3  Waiver.

    (a) * * *
    (1) * * *
    (iv) Application of the restriction would impede cooperative 
programs entered into between DoD and a foreign country or would impede 
the reciprocal procurement of defense items under a memorandum of 
understanding providing for reciprocal procurement of defense items 
under 225.872, and that country does not discriminate against defense 
items produced in the United States to a greater degree than the United 
States discriminates against defense items produced in that country;
* * * * *
[FR Doc. 97-1038 Filed 1-16-97; 8:45 am]
BILLING CODE 5000-04-M