[Federal Register Volume 62, Number 29 (Wednesday, February 12, 1997)]
[Rules and Regulations]
[Pages 6682-6687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-3490]



[[Page 6681]]

_______________________________________________________________________

Part V





Department of Commerce





_______________________________________________________________________



Bureau of Export Administration



_______________________________________________________________________



15 CFR Part 738, et al.



Export Licensing; Addition of the Republic of South Korea to Australia 
Group; Final Rule



Revisions to the Commerce Control List: Exports of Mixtures Containing 
Trace Quantities of Precursor Chemicals; Final Rule

  Federal Register / Vol. 62, No. 29 / Wednesday, February 12, 1997 / 
Rules and Regulations  

[[Page 6682]]



DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 738, 740, 770, 772, and 774

[Docket No. 961219362-6362-01]
RIN 0694-AB52


Revisions to the Export Administration Regulations: Addition of 
the Republic of South Korea to Australia Group (AG), Clarification to 
the Sample Shipments Exemption in ECCN 1C350, and Correction to the 
Commerce Country Chart

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: As of October 1996, the Republic of Korea (South Korea) is a 
member of the Australia Group (AG). Therefore, South Korea is to be 
treated as an AG member under U.S. regulations. This includes exemption 
from certain requirements under the Export Administration Regulations 
(EAR) for items controlled for Chemical/Biological weapons 
proliferation (CB) reasons.
    In addition, this rule makes a clarification to the exemption for 
sample shipments in ECCN 1C350 and corrections to Supplement Number 1 
to part 738, the Commerce Country Chart, CB Column 3 (Chemical and 
Biological Weapons), by removing the license requirement symbol ``X'' 
from Romania and South Africa, as this symbol was inadvertently 
included in previous regulations, and removing all the license 
requirement symbols ``X'' from the Iraq row and replacing them with the 
phrase that is common to all embargoed destinations, ``See part 746 of 
the EAR to determine whether a license is required in order to export 
or reexport to this destination''.
    This action will lessen the administrative burden on U.S. 
exporters, by decreasing license application requirements for exports 
of items controlled for CB reasons to South Korea, Romania, and South 
Africa.

DATE: This rule is effective February 12, 1997.

FOR FURTHER INFORMATION CONTACT: For questions of a general nature, 
call Sharron Cook, Regulatory Policy Division, at (202)482-2440.

    For questions of a technical nature, contact Jim Seevaratnam, 
Chemical and Biological Controls Division, at (202)482-3343 or at 
facsimile (202) 482-0751.
    For questions on Chemical and Biological Warfare policy controls, 
contact Patricia Sefcik, Chemical and Biological Controls Division at 
(202) 482-0707 or at facsimile (202) 482-0751.

SUPPLEMENTARY INFORMATION:

Background

    As a result of the Republic of Korea (South Korea) being admitted 
to the Australia Group (AG), this rule adds South Korea to Supplement 
Number 1 to part 740, Country Group A, Column A:3 (Australia Group) and 
removes the license requirement symbol ``X'' from South Korea in 
Supplement Number 1 to part 738, the Commerce Country Chart, CB Column 
2 (Chemical and Biological Weapons).
    In addition, the license requirement symbol ``X'' is removed from 
Romania and South Africa, in Supplement Number 1 to part 738, the 
Commerce Country Chart, CB Column 3 (Chemical and Biological Weapons), 
as this symbol was inadvertently included in previous regulations.
    Additional corrections are made to Supplement Number 1 to part 738, 
the Commerce Country Chart, by removing all the license requirement 
symbols ``X'' from the Iraq row and replacing them with the phrase, 
``See part 746 of the EAR to determine whether a license is required in 
order to export or reexport to this destination'', and removing the 
footnote 1 reference from Bosnia & Herzegovina, Croatia, and Serbia & 
Montenegro.
    In section 770.2(k) of the EAR, interpretation 11, ``precursor 
chemicals'', has been revised by adding South Korea to the countries 
that are exempt from the ECCN 1C350 license requirements for the 
chemicals listed. In addition, Poland, Romania, and Slovak Republic 
have been added to this paragraph, as they were inadvertently omitted 
in previous regulations.
    In addition, the definition for ``Australia Group'', in part 772, 
has been revised to include South Korea.
    Lastly, this rule makes a clarification to the exemption for sample 
shipments found in License Requirement Note 1 of ECCN 1C350. The 
clarification is listed in paragraph (c) of the note and states, ``A 
consignee that receives a sample shipment under this exclusion may not 
resell, transfer, or reexport the sample shipment but may use the 
sample shipment for any other purpose unrelated to chemical weapons. 
However, a sample shipment received under this exclusion remains 
subject to all General Prohibitions including the end-use restriction 
described in Sec. 744.4 of the EAR.'' This end-use restriction was 
added to make clear to exporters that when BXA deleted ``for research 
or evaluation'' from the sample shipment exclusion (60 F.R. 54030, 
October 19, 1995), BXA did not intend to allow the resell, transfer or 
reexport of the sample shipments by consignees.
    Although the Export Administration Act (EAA) expired on August 20, 
1994, the President invoked the International Emergency Economic Powers 
Act and continued in effect, to the extent permitted by law, the 
provisions of the EAA and the EAR in Executive Order 12924 of August 
19, 1994, as extended by the President's notice of August 15, 1995 (60 
FR 42767) and August 14, 1996 (61 FR 42527).

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of 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 0694-0086 and 0694-0088. The effect of this rule 
will decrease license application requirements, thus reduce the 
paperwork burden on the public. Notwithstanding any other provision of 
law, no person is required to respond 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 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 military and foreign affairs 
function of the United States (see 5 U.S.C. 553(a)(1)). Further, no 
other law requires that a notice of proposed rulemaking and an 
opportunity for public comment be given for this rule. Because a notice 
of proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule by 5 U.S.C 553, or by any other law, 
the analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 
601 et seq., are inapplicable.
    Therefore, this regulation is issued in final form. Although there 
is no formal

[[Page 6683]]

comment period, public comments on this regulation are welcome on a 
continuing basis. Comments should be submitted to Sharron Cook, 
Regulatory Policy Division, Office of Exporter Services, Bureau of 
Export Administration, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.

List of Subjects

15 CFR Parts 738, 770, 772, and 774

    Exports, Foreign trade.

15 CFR Part 740

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

    Accordingly, parts 738, 740, 770, 772 and 774 of the Export 
Administration Regulations (15 CFR parts 730-799A) are amended as 
follows:
    1. The authority citation for 15 CFR parts 738 and 774 continue to 
read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-
58, 109 Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 
2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 
U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; 
Notice of August 15, 1995, 3 C.F.R. 1995 Comp. 501 (1996); Notice of 
August 14, 1996 (61 FR 42527, August 15, 1996).

    2. The authority citation for 15 CFR parts 740, 770 and 772 
continue to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 
15, 1995, 3 C.F.R. 1995 Comp. 501 (1996); Notice of August 14, 1996 
(61 FR 42527, August 15, 1996).

PART 738--[AMENDED]

    3. Supplement Number 1 to Part 738, Commerce Country Chart, is 
revised to read as follows:

                                                                                     Commerce Country Chart                                                                                     
                                                                                       Reason for Control                                                                                       
                                                                                                                                                                                                
                                                Chemical & biological        Nuclear non-     National  security   Missile       Regional              Crime  control           Anti- terrorism 
                                                       weapons               proliferation   --------------------   tech         stability     -------------------------------------------------
                 Countries                 --------------------------------------------------                    ------------------------------                                                 
                                               CB        CB        CB        NP        NP        NS        NS        MT        RS        RS        CC        CC        CC        AT        AT   
                                             column    column    column    column    column    column    column    column    column    column    column    column    column    column    column 
                                                  1         2         3         1         2         1         2         1         1         2         1         2         3         1         2 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Afghanistan...............................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Albania...................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Algeria...................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Andorra...................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Angola \1\................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Antigua & Barbuda.........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Argentina.................................        X   ........  ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Armenia...................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Australia.................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Austria...................................        X   ........  ........  ........  ........        X   ........        X         X         X         X   ........        X   ........  ........
Azerbaijan................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Bahamas, The..............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bahrain...................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bangladesh................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Barbados..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Belarus...................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Belgium...................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Belize....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Benin.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bhutan....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bolivia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bosnia & Herzegovina......................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Botswana..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Brazil....................................        X         X   ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Brunei....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Bulgaria..................................        X         X         X   ........  ........        X         X         X         X         X         X         X   ........  ........  ........
Burkina Faso..............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Burma.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Burundi...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Cambodia..................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Cameroon..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Canada....................................  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........
Cape Verde................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Central African Republic..................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Chad......................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Chile.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
China.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Colombia..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Comoros...................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Congo.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Costa Rica................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Cote d'Ivoire.............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Croatia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Cuba......................................                                                                                                                                                      
(14)See part 746 of the EAR to determine                                                                                                                                                        
 whether a license is required in order to                                                                                                                                                      
 export or reexport to this destination.                                                                                                                                                        
Cyprus....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Czech Republic............................        X   ........  ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Denmark...................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Djibouti..................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Dominica..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Dominican Republic........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Ecuador...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Egypt.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........

[[Page 6684]]

                                                                                                                                                                                                
El Salvador...............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Equatorial Guinea.........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Eritrea...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Estonia...................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Ethiopia..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Fiji......................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Finland...................................        X   ........  ........  ........  ........        X   ........        X         X         X         X   ........        X   ........  ........
France....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Gabon.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Gambia, The...............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Georgia...................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Germany...................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Ghana.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Greece....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Grenada...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Guatemala.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Guinea....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Guinea-Bissau.............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Guyana....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Haiti.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Honduras..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Hong Kong.................................        X         X   ........        X   ........        X     X \2\         X         X         X         X   ........        X   ........  ........
Hungary...................................        X   ........  ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Iceland...................................        X   ........  ........        X   ........        X         X         X         X   ........  ........  ........  ........  ........  ........
India.....................................        X         X         X         X         X         X         X         X         X         X         X   ........        X   ........  ........
Indonesia.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Iran......................................                                                                                                                                                      
(14) See part 746 of the EAR to determine                                                                                                                                                       
 whether a license is required in order to                                                                                                                                                      
 export or reexport to this destination.                                                                                                                                                        
Iraq \1\..................................                                                                                                                                                      
(14) See part 746 of the EAR to determine                                                                                                                                                       
 whether a license is required in order to                                                                                                                                                      
 export or reexport to this destination.                                                                                                                                                        
Ireland...................................        X   ........  ........  ........  ........        X   ........        X         X         X         X   ........        X   ........          
Israel....................................        X         X         X         X         X         X         X         X         X         X         X   ........        X   ........  ........
Italy.....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Jamaica...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Japan.....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Jordan....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Kazakhstan................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Kenya.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Kiribati..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Korea, North..............................                                                                                                                                                      
(14) See part 746 of the EAR to determine                                                                                                                                                       
 whether a license is required in order to                                                                                                                                                      
 export or reexport to this destination.                                                                                                                                                        
Korea, South..............................        X   ........  ........  ........  ........        X     X \2\         X         X         X         X   ........        X   ........  ........
Kuwait....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Kyrgyzstan................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Laos......................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Latvia....................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Lebanon...................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Lesotho...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Liberia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Libya.....................................                                                                                                                                                      
(14) See part 746 of the EAR to determine                                                                                                                                                       
 whether a license is required in order to                                                                                                                                                      
 export or reexport to this destination.                                                                                                                                                        
Liechtenstein.............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Lithuania.................................        X         X   ........        X   ........        X         X         X         X         X         X         X   ........  ........  ........
Luxembourg................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
FYROM (Macedonia).........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Madagascar................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Malawi....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Malaysia..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Maldives..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mali......................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Malta.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Marshall Islands..........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mauritania................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mauritius.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mexico....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Micronesia................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Moldova...................................        X         X         X         X   ........        X         X         X         X         X         X   ........  ........  ........  ........
Monaco....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mongolia..................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Morocco...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Mozambique................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Namibia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Nauru.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Nepal.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Netherlands...............................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
New Zealand...............................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Nicaragua.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Niger.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........

[[Page 6685]]

                                                                                                                                                                                                
Nigeria...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Norway....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Oman......................................        X         X         X         X         X         X         X         X         X         X         X   ........        X   ........  ........
Pakistan..................................        X         X         X         X         X         X         X         X         X         X         X   ........        X   ........  ........
Palau.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Panama....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Papua New Guinea..........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Paraguay..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Peru......................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Philippines...............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Poland....................................        X   ........  ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Portugal..................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Qatar.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Romania...................................        X   ........  ........  ........  ........        X         X         X         X         X         X         X   ........  ........  ........
Russia....................................        X         X         X   ........  ........        X         X         X         X         X         X         X   ........  ........  ........
Rwanda \1\................................        X         X   ........        X   ........        X         X         X         X         X         X         X         X   ........  ........
St. Kitts & Nevis.........................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
St. Lucia.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
St. Vincent & Grenadines..................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
San Marino................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Sao Tome & Principe.......................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Saudi Arabia..............................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Senegal...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Serbia & Montenegro.......................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Seychelles................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Sierra Leone..............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Singapore.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Slovakia..................................        X   ........  ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Slovenia..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Solomon Islands...........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Somalia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
South Africa..............................        X         X   ........  ........  ........        X         X         X         X         X         X   ........        X   ........  ........
Spain.....................................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Sri Lanka.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Sudan.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X         X         X 
Surinam...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Swaziland.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Sweden....................................        X   ........  ........  ........  ........        X   ........        X         X         X         X   ........        X   ........  ........
Switzerland...............................        X   ........  ........  ........  ........        X   ........        X         X         X         X   ........        X   ........  ........
Syria.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X         X   ........
Taiwan....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Tajikistan................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Tanzania..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Thailand..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Togo......................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Tonga.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Trinidad & Tobago.........................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Tunisia...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Turkey....................................        X         X   ........        X   ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Turkmenistan..............................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Tuvalu....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Uganda....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Ukraine...................................        X         X         X   ........  ........        X         X         X         X         X         X         X   ........  ........  ........
United Arab Emirates......................        X         X         X         X         X         X         X         X         X         X         X   ........        X   ........  ........
United Kingdom............................        X   ........  ........  ........  ........        X   ........        X         X   ........  ........  ........  ........  ........  ........
Uruguay...................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Uzbekistan................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Vanuatu...................................        X         X   ........        X         X         X         X         X         X         X         X   ........        X   ........  ........
Vatican City..............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Venezuela.................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Vietnam...................................        X         X         X         X   ........        X         X         X         X         X         X         X   ........  ........  ........
Western Sahara............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Western Samoa.............................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Yemen.....................................        X         X         X         X   ........        X         X         X         X         X         X   ........        X   ........  ........
Zaire.....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........  ........
Zambia....................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........          
Zimbabwe..................................        X         X   ........        X   ........        X         X         X         X         X         X   ........        X   ........          
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements that may apply to your proposed transaction.                        
\2\ A license is required only for computers controlled by 4A001, 4A002, & 4A003 if the CTP is greater than 10,000 Mtops. A license is Nuired for any other items subject to NS Column 2. 

PART 740--[AMENDED]

    4. In Supplement Number 1 to Part 740, Country Groups, Country 
Group A is revised to read as follows:

[[Page 6686]]



                                                 Country Group A                                                
                                                                                                                
                                                                           Missile                              
                                                                         technology     Australia      Nuclear  
                         Country                                           control        group       suppliers 
                                                                           regime                       group   
                                                                [A:1]         [A:2]         [A:3]         [A:4] 
----------------------------------------------------------------------------------------------------------------
Argentina...............................................  ............            X             X             X 
Australia...............................................            X             X             X             X 
Austria \1\.............................................  ............            X             X             X 
Belgium.................................................            X             X             X             X 
Brazil..................................................  ............            X   ............  ............
Bulgaria................................................  ............  ............  ............            X 
Canada..................................................            X             X             X             X 
Czech Republic..........................................  ............  ............            X             X 
Denmark.................................................            X             X             X             X 
Finland \1\.............................................  ............            X             X             X 
France..................................................            X             X             X             X 
Germany.................................................            X             X             X             X 
Greece..................................................            X             X             X             X 
Hong Kong \1\...........................................  ............  ............  ............  ............
Hungary.................................................  ............            X             X             X 
Iceland.................................................  ............            X             X   ............
Ireland \1\.............................................  ............            X             X             X 
Italy...................................................            X             X             X             X 
Japan...................................................            X             X             X             X 
Korea, South \1\........................................  ............  ............            X             X 
Luxembourg..............................................            X             X             X             X 
Netherlands.............................................            X             X             X             X 
New Zealand \1\.........................................  ............            X             X             X 
Norway..................................................            X             X             X             X 
Poland..................................................  ............  ............            X             X 
Portugal................................................            X             X             X             X 
Romania.................................................  ............  ............            X             X 
Russia..................................................  ............            X   ............            X 
Slovakia................................................  ............  ............            X             X 
South Africa............................................  ............            X   ............            X 
Spain...................................................            X             X             X             X 
Sweden \1\..............................................  ............            X             X             X 
Switzerland \1\.........................................  ............            X             X             X 
Turkey..................................................            X   ............  ............  ............
United Kingdom..........................................            X             X             X             X 
United States...........................................            X             X             X             X 
----------------------------------------------------------------------------------------------------------------
\1\ Cooperating Countries.                                                                                      

PART 770--[AMENDED]

    5. In section 770.2 paragraph (k) is amended by revising the third 
sentence to read as follows:


Sec. 770.2  Commodity interpretations.

* * * * *
    (k) * * * These chemicals require a license to all countries except 
Argentina, Australia, Austria, Belgium, Canada, Czech Republic, 
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, 
Italy, Japan, Korea (South), Luxembourg, the Netherlands, New Zealand, 
Norway, Poland, Portugal, Romania, Slovak Republic, Spain, Sweden, 
Switzerland, and the United Kingdom.
* * * * *

PART 772--[AMENDED]

    6. In part 772, the definition of ``Australia Group'' is revised to 
read as follows:

PART 772--DEFINITIONS OF TERMS

* * * * *
    Australia Group. The members belonging to this group have agreed to 
adopt controls on dual-use chemicals, i.e., weapons precursors, 
equipment, and biological microorganisms and related equipment in order 
to prevent the proliferation of chemical and biological weapons. Member 
countries as of October 1996 include: Argentina, Australia, Austria, 
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, 
Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea (South), 
Luxembourg, the Netherlands, New Zealand, Norway, Poland, Portugal, 
Romania, Slovak Republic, Spain, Sweden, Switzerland, the United 
Kingdom, and the United States. See also Sec. 742.2 of the EAR.
* * * * *

PART 774--[AMENDED]

    In Supplement No. 1 to part 774, Category 1--Materials, Chemicals, 
``Microorganisms'', and Toxins, ECCN 1C350 is amended by revising the 
License Requirement Notes section to read as follows:

1C350  Chemicals, that may be used as precursors for toxic chemical 
agents.

* * * * *
License Requirement Notes
    1. SAMPLE SHIPMENTS: Certain sample shipments of chemicals 
controlled under ECCN 1C350 may be made without a license, as provided 
by the following: a. Chemicals Not Eligible: The following chemicals 
are not eligible for sample shipments: 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL) (C.A.S. #57856-11-8), Ethylphosphonyl difluoride 
(C.A.S. #753-98-0), and

[[Page 6687]]

Methylphosphonyl difluoride (C.A.S. #676-99-3).
    b. Countries Not Eligible: The following countries are not eligible 
to receive sample shipments: Cuba, Iran, Libya, North Korea, Sudan, 
Syria.
    c. Sample Shipments: A license is not required for sample shipments 
when the cumulative total of these shipments does not exceed a 55-
gallon container or 200 kg of each chemical to any one consignee per 
calendar year. Multiple sample shipments, in any quantity, not 
exceeding the totals indicated in this paragraph may be exported 
without a license, in accordance with the provisions of this NOTE 1. A 
consignee that receives a sample shipment under this exclusion may not 
resell, transfer or reexport the sample shipment, but may use the 
sample shipment for any other legal purpose unrelated to chemical 
weapons. However, a sample shipment received under this exclusion 
remains subject to all General Prohibitions including the end-use 
restriction described in Sec. 744.4 of the EAR.
    d. The exporter is required to submit a quarterly written report 
for shipments of samples made under this Note 1. The report must be on 
company letterhead stationery (titled ``Report of Sample Shipments of 
Chemical Precursors'' at the top of the first page) and identify the 
chemical(s), Chemical Abstract Service Registry (C.A.S.) number(s), 
quantity(ies), the ultimate consignee's name and address, and the date 
exported. The report must be sent to the U.S. Department of Commerce, 
Bureau of Export Administration, Room 2705, Washington, DC 20230, Attn: 
``Report of Sample Shipments of Chemical Precursors''.
    2. MIXTURES: Mixtures controlled by this entry that contain certain 
concentrations of precursor and intermediate chemicals are subject to 
the following licensing requirements:
    a. A license is required, regardless of the concentrations in the 
mixture, for the following chemicals: 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL) (C.A.S. #57856-11-8), Ethylphosphonyl difluoride 
(C.A.S. #753-98-0) and Methylphosphonyl difluoride (C.A.S. #676-99-3);
    b. A license is required when at least one of the following 
chemicals constitutes more than 10 percent of the weight of the mixture 
on a solvent free basis: Arsenic trichloride (C.A.S. #7784-34-1), 
Benzilic acid (C.A.S. #76-93-7), Diethyl ethylphosphonate (C.A.S. #78-
38-6), Diethyl methylphosphonite (C.A.S. #15715-41-0), Diethyl-N,N-
dimethylphosphoroamidate (C.A.S. #2404-03-7), N,N-Diisopropyl-beta-
aminoethane thiol (C.A.S. #5842-07-9), N,N-Diisopropyl-2-aminoethyl 
chloride hydrochloride (C.A.S. #4261-68-1), N,N-Diisopropyl-beta-
aminoethanol (C.A.S. #96-80-0), N,N-Diisopropyl-beta-aminoethyl 
chloride (C.A.S. #96-79-7), Dimethyl ethylphosphonate (C.A.S. #6163-75-
3), Dimethyl methylphosphonate (C.A.S. #756-79-6), Ethylphosphonous 
dichloride [Ethylphosphinyl dichloride] (C.A.S. #1498-40-4), 
Ethylphosphonus difluoride [Ethylphosphinyl difluoride] (C.A.S. #430-
78-4), Ethylphosphonyl dichloride (C.A.S. #1066-50-8), 
Methylphosphonous dichloride [Methylphosphinyl dicloride] (C.A.S. #676-
83-5), Methylphosphonous difluoride [Methylphosphinyl difluoride] 
(C.A.S. #753-59-3), Methylphosphonyl dichloride (C.A.S. #676-97-1), 
Pinacolyl alcohol (C.A.S. #464-07-3), 3-Quinuclidinol (C.A.S. #1619-34-
7), and Thiodiglycol (C.A.S. #111-48-8); (Related ECCN: 1C995)
    c. A license is required when at least one of all other chemicals 
in the List of Items Controlled constitutes more than 25 percent of the 
weight of the mixture on a solvent free basis (related ECCN: 1C995); 
and
    d. A license is not required under this entry for mixtures when the 
controlled chemical is a normal ingredient in consumer goods packaged 
for retail sale for personal use. Such consumer goods are controlled by 
ECCN EAR99.
    e. Calculation of concentrations of AG-controlled chemicals.
    1. Usual Commercial Purposes. In calculating the percentage of an 
AG controlled chemical in a mixture (solution), any other chemical must 
be excluded if it was not added for usual commercial purposes, but was 
added for the sole purpose of circumventing the Export Administration 
Regulations.
    2. ``Solvent Free Basis Requirement.'' When calculating the 
percentage, by weight, of components in a chemical mixture, you must 
exclude from the calculation any component of the mixture that acts as 
a solvent.
    3. Solvent--For purposes of this ECCN ``A substance capable of 
dissolving another substance to form a uniformly dispersed mixture 
(solution)''.
     Solvents are liquids at standard temperature and pressure 
(STP).
     In no instance is an AG controlled chemical considered a 
``solvent''.
     All ingredients of mixtures are expressed in terms of 
weight.
     The solvent component of the mixture converts it into a 
solution.
    3. COMPOUNDS: A license is not required under this entry for 
chemical compounds created with any chemicals identified in this ECCN 
1C350, unless those compounds are also identified in this entry.
* * * * *

    Dated: February 7, 1997.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 97-3490 Filed 2-11-97; 8:45 am]
BILLING CODE 3510-33-P