[Federal Register Volume 64, Number 229 (Tuesday, November 30, 1999)]
[Proposed Rules]
[Pages 66821-66822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31061]



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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Ch. VII

[Docket No. 991122312-9312-01]
RIN 0694-XX12


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Regulations to determine whether they should be modified, rescinded or 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 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), 
August 13, 1998 (63 FR 44121), and August 10, 1999 (64 FR 44101, August 
13, 1999). 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 2000.

DATES: Comments must be received by December 30, 1999.

ADDRESSES: Written comments (three copies) should be sent to Frank 
Ruggiero, 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): 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.
    In January 1999, 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 considered 
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 comparative benefits to U.S. foreign policy objectives 
versus 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. Information on 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 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.

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    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.
    All 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 6883, U.S. 
Department of Commerce, 14th Street and Pennsylvania Avenue, NW, 
Washington, DC 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 the BXA Freedom of Information 
Officer at the above address or by calling (202) 482-0500.

    Dated: November 23, 1999.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 99-31061 Filed 11-29-99; 8:45 am]
BILLING CODE 3510-33-P