[Federal Register Volume 63, Number 197 (Tuesday, October 13, 1998)]
[Proposed Rules]
[Pages 54638-54639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27390]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Chapter VII

[Docket No. 980922243-8243-01]


Request for Comments on Effects of Foreign Policy-Based Export 
Controls

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Request for comments on foreign policy-based export controls.

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SUMMARY: The Bureau of Export Administration (BXA) is reviewing the 
foreign policy-based export controls in the Export Administration 
Regulations to determine whether they should be modified, rescinded or 
extended. To help make these determinations, BXA is seeking comments on 
how existing foreign policy-based export controls have affected 
exporters and the general public.
    Under the provisions of section 6 of the Export Administration Act 
of 1979, as amended (EAA), foreign policy controls expire one year 
after imposition unless they are extended. The EAA requires a report to 
Congress whenever foreign policy-based export controls are extended. 
Although the EAA expired on August 20, 1994, the President, invoking 
the International Emergency Powers Act (IEEPA), continued in effect the 
export control system in place under the provisions of the Act and the 
Export Administration Regulations, to the extent permitted by law 
(Executive Order 12924 of August 19, 1994 and Notices of August 15, 
1995, August 14, 1996, August 13, 1997, and August 13, 1998). The 
Department of Commerce, insofar as appropriate, is following the 
provisions of section 6 in reviewing foreign policy-based export 
controls and requesting comments on such controls. Foreign Policy 
controls need to be extended in January 1999.

DATES: Comments must be received by November 12, 1998, to assure full 
consideration in the formulation of export control policies as they 
relate to foreign policy-based controls.

ADDRESSES: Written comments (three copies) should be sent to Patricia 
Muldonian, Regulatory Policy Division (Room 2096), Office of Exporter 
Services, Bureau of Export Administration, Department of Commerce, P.O. 
Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: James Lewis, Director, Office of 
Strategic Trade and Foreign Policy Controls, Bureau of Export 
Administration, Telephone: (202) 482-4196. Copies of the current Annual 
Foreign Policy Report to the Congress are available at our website: 
www.bxa.doc.gov and copies may also be requested by calling the Office 
of Strategic Trade.

SUPPLEMENTARY INFORMATION: The current foreign policy controls 
maintained by the Bureau of Export Administration (BXA) are set forth 
in the Export Administration Regulations (EAR), parts 742 (CCL Based 
Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes 
and Special Country Controls). These controls apply to: high 
performance computers (Sec. 742.12); significant items (SI): Commercial 
communications satellites and hot section technology for the 
development, production, or overhaul of commercial aircraft engines, 
components, and systems (Sec. 742.14); encryption items (Sec. 742.15 
and Sec. 744.9); crime control and detection commodities (Sec. 742.7); 
specially designed implements of torture (Sec. 742.11); regional 
stability commodities and equipment (Sec. 742.6); equipment and related 
technical data used in the design, development, production, or use of 
missiles (Sec. 742.5 and Sec. 744.3); chemical precursors and 
biological agents, associated equipment, technical data, and software 
related to the production of chemical and biological agents (Sec. 742.2 
and Sec. 744.4); activities of U.S. persons in transactions related to 
missile technology or chemical or biological weapons proliferation in 
named countries (Sec. 744.6); nuclear propulsion (Sec. 744.5); aircraft 
and vessels (Sec. 744.7); embargoed countries (part 746); countries 
designated as supporters of acts of international terrorism 
(Secs. 742.8, 742.9, 742.10, 746.2, 746.3, 746.5, and 746.7); and, 
Libya (Secs. 744.8 and 746.4). Attention is also given in this context 
to the controls on nuclear-related commodities and technology 
(Sec. 744.2 and Sec. 744.2), which are, in part, implemented under 
section 309(c) of the Nuclear Non Proliferation Act.
    Effective January 21, 1997, the Secretary of Commerce, on the 
recommendation of the Secretary of State, extended for one year all 
foreign policy controls then in effect.
    To assure maximum public participation in the review process, 
comments are solicited on the extension or revision of the existing 
foreign policy controls for another year. Among the criteria the 
Departments of Commerce and State consider in determining whether to 
continue or revise U.S. foreign policy controls are the following:
    1. The likelihood that such controls will achieve the intended 
foreign policy purpose, in light of other factors, including the 
availability from other countries of the goods or technology proposed 
for such controls;
    2. Whether the foreign policy purpose of such controls can be 
achieved through negotiations or other alternative means;
    3. The compatibility of the controls with the foreign policy 
objectives of the United States and with overall United States policy 
toward the country subject to the controls;
    4. The reaction of other countries to the extension of such 
controls by the United States is not likely to render the controls 
ineffective in achieving the intended foreign policy purpose or be 
counterproductive to United States foreign policy interests;
    5. The effect of the controls on the export performance of the 
United States, the competitive position of the United States in the 
international economy, the international reputation of the United 
States as a supplier of goods and technology; and
    6. The ability of the United States to enforce the controls 
effectively. BXA is particularly interested in the experience of 
individual exporters in complying with the proliferation controls, with 
emphasis on economic impact and specific instances of business lost to 
foreign competitors. BXA is also interested in industry information 
relating to the following:
    1. Specific data or case summaries that illustrate the effect of 
foreign policy controls on sales of U.S. products to third countries 
(i.e., those countries not targeted by sanctions), including the views 
of foreign purchasers or prospective customers regarding U.S. foreign 
policy controls.
    2. Information on controls maintained by U.S. trade partners (i.e., 
to what extent do they have similar controls on goods and technology on 
a worldwide basis or to specific destinations)?
    3. Information on licensing policies or practices by our foreign 
trade partners which are similar to U.S. foreign policy controls, 
including license review criteria, use of conditions, requirements for 
pre and post shipment verifications (preferably supported by examples 
of

[[Page 54639]]

approvals, denials and foreign regulations.
    4. Suggestions for revisions to foreign policy controls that would 
(if there are any differences) bring them more into line with 
multilateral practice.
    5. Comments or suggestions as to actions that would make 
multilateral controls more effective.
    6. Information that illustrates the effect of foreign policy 
controls on the trade or acquisitions by intended targets of the 
controls.
    7. Data or other information as to the effect of foreign policy 
controls on overall trade, either for individual firms or for 
individual industrial sectors.
    8. Suggestions as to how to measure the effect of foreign policy 
controls on trade.
    9. Information on the use of foreign policy controls on targeted 
countries, entities, or individuals.
    BXA is also interested in comments relating generally to the 
extension or revision of existing foreign policy controls. Parties 
submitting comments are asked to be as specific as possible. All 
comments received before the close of the comment period will be 
considered by BXA in reviewing the controls and developing the report 
to Congress.
    BXA will consider requests for confidential treatment. The 
information for which confidential treatment is requested should be 
submitted to BXA separate from any non-confidential information 
submitted. The top of each page should be marked with the term 
``Confidential Information.'' BXA will either accept the submission in 
confidence, or if the submission fails to meet the standards for 
confidential treatment, will return it. A non-confidential summary must 
accompany such submissions of confidential information. The summary 
will be made available for public inspection.
    Information accepted by BXA as confidential will be protected from 
public disclosure to the extent permitted by law. Communications 
between agencies of the United States Government or with foreign 
governments will not be made available for public inspection.
    All other information relating to the notice will be a matter of 
public record and will be available for public inspection and copying. 
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, D.C. 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) 482-2593.

    Dated: October 5, 1998.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 98-27390 Filed 10-9-98; 8:45 am]
BILLING CODE 3510-33-P