[Federal Register Volume 63, Number 179 (Wednesday, September 16, 1998)]
[Rules and Regulations]
[Pages 49425-49427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-24829]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 736

[Docket No. 980821223-8223-01]
RIN 0694-AB74


Establishment of 24-Month Validity Period for Certain Reexport 
Authorizations and Revocation of Other Authorizations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration is amending the Export

[[Page 49426]]

Administration Regulations (15 CFR parts 730-774) by issuing General 
Order No. 1 establishing a 24-month validity period for all reexport 
authorizations that do not contain any license validity period and 
revoking those that have been in effect for more than 24 months.

DATES: This rule is effective September 16, 1998.

ADDRESSES: Written comments on this rule should be sent to Hillary 
Hess, Director, Regulatory Policy Division, Bureau of Export 
Administration, Department of Commerce, P.O. Box 273, Washington, DC 
20044.

FOR FURTHER INFORMATION CONTACT: Hillary Hess, Director, Regulatory 
Policy Division, Bureau of Export Administration, Telephone: (202) 482-
2440.

SUPPLEMENTARY INFORMATION:

Background

    On March 25, 1996 (61 FR 12714), the Bureau of Export 
Administration (BXA) issued completely revised Export Administration 
Regulations (EAR). Among other things, the new regulations established 
a general rule that all licenses for export or reexport would be 
limited to a 24-month validity period and established procedures for 
seeking extensions (Sec. 750.7(g)).
    The general practice before June 15, 1996, under the previous 
regulations, was to issue reexport authorizations for most countries 
without a set validity period. Since requests for reexport 
authorizations specified the items to be reexported, the parties to the 
transaction, and the dollar value involved, the reexport authorizations 
were available for as long as was necessary to complete the 
transaction(s) in question. In addition, a number of reexport 
authorizations issued after June 15, 1996, did not include a specific 
validity period.
    BXA is issuing this general order to bring any outstanding reexport 
authorizations which were issued without validity periods in line with 
the general 24-month validity period established in the new 
regulations.
    This order revokes all outstanding reexport authorizations issued 
with no validity period before the 24-month period preceding September 
16, 1998 to a country that has been designated by the Secretary of 
State as a country that has repeatedly provided support for acts of 
international terrorism, effective September 16, 1998. Designated 
terrorist-supporting countries currently are Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, and Syria. All other outstanding reexport 
authorizations issued with no validity period within the 24-months 
preceding September 16, 1998 will be revoked November 16, 1998. 
Reexport authorizations issued with no validity period within 24-months 
preceding September 16, 1998 will expire 24-months from the date of 
issuance of the reexport authorization or November 16, 1998, which ever 
is longer. Extensions of any such reexport authorizations may be 
requested prior to the effective date of this action in accordance with 
the procedures set forth in Sec. 750.7(g). Should BXA provide specific 
notice to a reexporter of an earlier revision, suspension, or 
revocation date for such reexport authorization, then the information 
in the specific notice from BXA shall be controlling.
    The term ``authorization'' as used in this rule encompasses the 
range of reexport authorizations granted by BXA, which includes 
licenses, individual letters, and other types of notifications.
    The Export Administration Act (EAA) expired on August 20, 1994, the 
President invoked the International Emergency Economic Powers Act and 
continued in effect the EAR and, to the extent permitted by law, the 
provisions of the EAA in Executive Order 12924 of August 19, 1994, as 
extended by the President's notices of August 15, 1995 (60 FR 42767), 
August 14, 1996 (61 FR 42527), August 13, 1997 (62 FR 43629) and August 
13, 1998 (63 FR 44121).

Saving Clause

    Shipments of items under reexport authorizations revoked as a 
result of this regulatory action that were on dock for loading, on 
lighter, laden aboard an exporting carrier, or en route aboard carrier 
to a port of export pursuant to actual orders for export before 
September 16, 1998 may be exported in accordance with the terms of the 
previous reexport authorization provisions up to and including 
September 30, 1998. Any such items not actually exported before 
midnight September 30, 1998, require a new license in accordance with 
this regulation.

Rulemaking Requirements

    1. This interim rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor 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 current valid OMB Control Number. This rule involves 
collection of information requirements subject to the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This collection has 
been approved by the Office of Management and Budget under control 
number 0694-0088.
    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 (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 interim rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under 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 not applicable.

List of Subjects in 15 CFR Part 736

    Exports, Foreign trade.

    Accordingly, part 736 of the Export Administration Regulations (15 
CFR parts 730-799) are amended as follows:

PART 736--[AMENDED]

    1. The authority citation for part 736 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228 (1997); Notice of August 15, 1995, 
3 CFR, 1995 Comp. 501 (1996); Notice of August 14, 1996, 61 FR 
42527, 3 CFR 1996 Comp., p. 298 (1997); Notice of August 13, 1997 
(62 FR 43629, August 15, 1997); and Notice of August 13, 1998 (62 FR 
44121, August 17, 1998).

    2. Supplement No. 1 to part 736 is revised to read as follows:
Supplement No. 1 To Part 736--General Orders
    General Order No. 1 of September 16, 1998; Establishing a 24-
month validity period on reexport authorizations issued without a 
validity period and revoking those exceeding that period.
    (a) Reexport authorizations issued within 24-months of the 
General Order. All reexport authorizations issued with no validity 
period within the 24-months preceding September 16, 1998 shall be 
deemed to have an expiration date which shall be the date 24-months 
from the date of issuance of the reexport authorization or November 
16, 1998, whichever is longer.

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    (b) Reexport authorizations issued before the 24-month period 
preceding the General Order. For reexport authorizations issued with 
no validity period before the 24-month period preceding September 
16, 1998:
    (1) Effective September 16, 1998, all such outstanding reexport 
authorizations for terrorist-supporting countries (see parts 742 and 
746 of the EAR) are revoked.
    (2) Effective November 16, 1998, all other such outstanding 
reexport authorizations are revoked.
    (c) Extensions. If necessary, you may request extensions of such 
authorizations according to procedures set forth in Sec. 750.7(g) of 
the EAR.
    (d) Specific Notice from BXA. If you have received, or should 
you receive, specific notice from BXA with regard to a reexport 
authorization covered by this General Order, informing you of a 
revocation, suspension, or revision (including validity period) of 
any such reexport authorization, then the terms of that specific 
notice will be controlling.
    (e) Definition of ``authorization''. The term ``authorization'' 
as used in this General Order encompasses the range of reexport 
authorizations granted by BXA, which includes licenses, individual 
letters, and other types of notifications.

    Dated: September 10, 1998.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 98-24829 Filed 9-15-98; 8:45 am]
BILLING CODE 3510-33-P