[Federal Register Volume 64, Number 85 (Tuesday, May 4, 1999)]
[Rules and Regulations]
[Pages 24018-24019]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-11304]



[[Page 24017]]

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Part VII





Department of Commerce





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Bureau of Export Administration



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15 CFR Part 746



Exports to Serbia; Final Rule

  Federal Register / Vol. 64, No. 85 / Tuesday, May 4, 1999 / Rules and 
Regulations  

[[Page 24018]]



DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 746

[Docket No. 990422104-9104-01]
RIN 0694-AB91


Exports to Serbia

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule

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SUMMARY: In his address to the nation on March 24, 1999, President 
Clinton announced that the Armed Forces of the United States had joined 
those of our NATO allies in air strikes against Serbian forces 
responsible for brutal attacks on ethnic Albanians in the province of 
Kosovo. This rule imposes a license requirement for exports and 
reexports to Serbia of all items subject to the Export Administration 
Regulations (EAR).

EFFECTIVE DATE: This rule is effective May 4, 1999.

FOR FURTHER INFORMATION CONTACT: James Lewis, Director, Office of 
Strategic Trade and Foreign Policy Controls, Bureau of Export 
Administration, Telephone: (202) 482-4196.

SUPPLEMENTARY INFORMATION:

Background

    In response to the Serbian government's continued ethnic cleansing 
in its Kosovo province and its rejection of the proposed peace 
agreement accepted by the Kosovars, NATO (including the United States) 
has taken military action. This action is intended to deter the mass 
killing and dislocation of ethnic Albanians in Kosovo and to prevent a 
widening of the conflict.
    In Resolution 1203 (adopted on October 24, 1998), the United 
Nations Security Council (UNSC) expressed alarm at what it described as 
the continuing grave humanitarian situation throughout Kosovo and the 
impending humanitarian catastrophe. Previously, in Resolution 1160 of 
March 3, 1998, the UNSC had imposed an embargo on the sale of arms and 
related materials to the Federal Republic of Yugoslavia.
    On July 14, 1998, BXA implemented an embargo on arms and arms-
related items in the Export Administration Regulations (EAR) that 
applied to Serbia and Montenegro. The arms embargo continues in effect. 
This rule imposes an additional license requirement on exports and 
reexports to Serbia of all items subject to the EAR. Applications will 
be reviewed on a case-by-case basis, with a presumption of denial for 
applications for other than humanitarian items. For humanitarian items, 
BXA will approve sales of agricultural commodities and products, 
medicine, and medical equipment for civilian end-use when appropriate 
safeguards can be developed to prevent diversion to military, 
paramilitary or political use. No License Exceptions are available for 
Serbia, except that items consigned to and for use by personnel and 
agencies of the U.S. Government may be shipped under License Exception 
GOV, and temporary exports or reexports by the accredited news media 
may be made under License Exception TMP. This rule does not affect 
Montenegro.
    This action is taken consistent with the provisions of the Export 
Administration Act (EAA) and after consultation with the Secretary of 
State. BXA submitted a foreign policy report to the Congress indicating 
the imposition of new foreign policy controls on April 30, 1999.
    Although the 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, August 17, 1998).

Saving Clause

    Shipments of items removed from License Exception or NLR 
authorizations as a result of this regulatory action that were en route 
aboard a carrier to a port of export, on dock for loading aboard an 
exporting carrier, on lighter, or laden aboard an exporting carrier on 
May 4, 1999, pursuant to actual orders for export to that destination 
in Serbia, may proceed to that destination under the previous License 
Exception or NLR authorization provisions so long as they have been 
exported from the United States before May 11, 1999. Any such items not 
actually exported before midnight May 11, 1999, require a license in 
accordance with this regulation.

Rulemaking Requirements

    1. This final rule has been determined to be significant for 
purposes of E.O. 12866.
    2. This rule involves a collection 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 number 0694-0088, ``Multi-Purpose Application,'' which 
carries a burden hour estimate of 40 minutes to prepare and submit 
electronically and 45 minutes to submit manually on form BXA-748P. 
Notwithstanding any other provision of law, no person is required to 
respond nor shall any 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 (Sec. 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 final 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.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Hillary 
Hess, Regulatory Policy Division, Bureau of Export Administration, 
Department of Commerce, P.O. Box 273, Washington, DC 20044.

List of Subjects in 15 CFR Part 746

    Embargoes, Exports, Foreign trade, Reporting and recordkeeping 
requirements.

    Accordingly, part 746 of the Export Administration Regulations (15 
CFR parts 730-799) is amended as follows:

PART 746--[AMENDED]

    1. The authority citation for part 746 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c, 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 
899; E.O. 12924, 3 CFR, 1994 Comp., p.

[[Page 24019]]

917; Notice of August 13, 1997 (62 FR 43629, August 15, 1997); 
Notice of August 13, 1998 (63 FR 44121, August 17, 1998).

    2. Section 746.9 is revised to read as follows:


Sec. 746.9  The Federal Republic of Yugoslavia (Serbia and Montenegro).

    The Department of Commerce maintains a comprehensive embargo on 
exports and reexports to Serbia. Additionally, a United Nations 
mandated arms embargo applies to certain items destined to the Federal 
Republic of Yugoslavia (Serbia and Montenegro).
    (a) License requirements. (1) Serbia. You will need a license to 
export or reexport all items subject to the EAR to Serbia, except as 
specified in paragraph (c) of this section. This requirement does not 
apply to Montenegro.
    (2) Federal Republic of Yugoslavia (Serbia and Montenegro). Under 
Executive Order 12918 of May 26, 1994 (3 CFR, 1994 comp., p. 899) 
(which authorizes the Secretary of State and the Secretary of Commerce, 
under section 5 of the United Nations Participation Act and other 
authorities available to the respective Secretaries, to take all 
actions necessary to implement any arms embargo mandated by resolution 
of the United Nations Security Council), and in conformity with United 
Nations Security Council (UNSC) Resolution 1160 of March 31, 1998, an 
embargo applies to the sale or supply to the Federal Republic of 
Yugoslavia of arms and related materiel of all types and regardless of 
origin, such as weapons and ammunition, military vehicles and 
equipment, and spare parts for such items. You will therefore need a 
license for the sale, supply or export to the Federal Republic of 
Yugoslavia (Serbia and Montenegro) from the United States of embargoed 
items, as listed in paragraphs (a)(2)(i) and (ii) of this section. You 
will also need a license for the sale, supply, export or reexport to 
the Federal Republic of Yugoslavia (Serbia and Montenegro) of such 
items by any United States person in any foreign country or other 
location. (Reexport controls imposed under this paragraph (a)(2) apply 
only to reexports by U.S. persons. Reexport controls on U.S.-origin 
items to the Federal Republic of Yugoslavia (Serbia and Montenegro) set 
forth in other parts of the EAR remain in effect.) You will also need a 
license for the use of any U.S.-registered aircraft or vessel to supply 
or transport to the Federal Republic of Yugoslavia (Serbia and 
Montenegro) any such items. These requirements apply to embargoed items 
specified in paragraphs (a)(2)(i) and (a)(2)(ii) of this section, 
regardless of origin.
    (i) Crime Control and Detection Equipment as identified on the CCL 
under CC Columns No. 1, 2 or 3 in the Country Chart column of the 
``License Requirements'' section of the applicable ECCN.
    (ii) Items described by ECCNs ending in ``018''; and 0A982, 0A984, 
0A985, 0A986, 0A988, 0A989, 0B986, 0E984, 1A005, 1C998, 2A993, 
6A002.a.1, a.2, a.3, b and c, 6A003.b.3 and b.4, 6E001, 6E002, and 
9A991.a.
    (3) Date of embargo. The licensing requirements in paragraph (a)(2) 
of this section were effective on July 14, 1998.
    (b) Licensing policy. (1) Serbia. Applications for export or 
reexport of all items subject to the EAR to Serbia will be reviewed on 
a case-by-case basis, with a presumption of denial for other than 
humanitarian items. For humanitarian items, BXA will approve sales of 
agricultural commodities and products, medicine, and medical equipment 
for civilian end-use when appropriate safeguards can be developed to 
prevent diversion to military, paramilitary or political use.
    (2) Federal Republic of Yugoslavia (Serbia and Montenegro). 
Applications for export or reexport of all items listed in paragraphs 
(a)(2)(i) and (ii) of this section are subject to a general policy of 
denial. Consistent with United Nations Security Council Resolution 
1160, this embargo is effective notwithstanding the existence of any 
rights or obligations conferred or imposed by any international 
agreement or any contract entered into or any license or permit granted 
prior to July 14, 1998, except to the extent provided in regulations, 
orders, directives or licenses that may be issued in the future under 
Executive Order 12918 or under the EAR.
    (c) License Exceptions. Items consigned to and for use by personnel 
and agencies of the U.S. Government may be exported or reexported to 
Serbia under License Exception GOV (see Sec. 740.11(b)(2) of the EAR), 
and temporary exports or reexports by the news media may be made to 
Serbia under License Exception TMP (see Sec. 740.9(a)(2)(viii) of the 
EAR). No other License Exceptions are available for Serbia.
    (d) Related controls. The Department of State, Office of Defense 
Trade Controls, maintains related controls on arms and military 
equipment under the International Traffic in Arms Regulations (22 CFR 
parts 120-130). You should also contact the Department of the 
Treasury's Office of Foreign Assets Control concerning any restrictions 
which might apply to U.S. persons involving financial transactions with 
the Federal Republic of Yugoslavia (Serbia and Montenegro).

    Dated: April 30, 1999.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 99-11304 Filed 4-30-99; 4:17 pm]
BILLING CODE 3510-DT-P