[Federal Register Volume 65, Number 54 (Monday, March 20, 2000)]
[Rules and Regulations]
[Pages 14862-14863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-6679]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Parts 756 and 766
[Docket No. 000306060-0060-01
RIN 0694-AC16
Revision to the Export Administration Regulations; Administrative
Enforcement Proceedings
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Export Administration (BXA) is amending the
Export Administration Regulations (EAR) by amending its regulations on
administrative enforcement proceedings. Specifically, this rule amends
the EAR by providing that, notwithstanding certain circumstances, when
determining whether to deny the export privileges of a person convicted
of violating certain laws, BXA will give prior notice of this
administrative action and an opportunity for that person to make
written comments to BXA stating why a denial is not appropriate. This
rule further clarifies the scope of the export privileges which may be
denied. In addition, it clarifies in part 756 of the EAR that these
administrative procedures are subject to the appeals procedures
described in that part.
DATES: This rule is effective March 20, 2000.
FOR FURTHER INFORMATION CONTACT: Kirsten Mortimer, Office of Exporter
Services, Bureau of Export Administration, Telephone: (202) 482-2440.
SUPPLEMENTARY INFORMATION: In 1985, the Export Administration Act (EAA)
was amended to add subsection 11(h), which provided that, at the
discretion of the Secretary of Commerce, no person who has been
convicted of a violation of certain designated statutes shall be
eligible to apply for or use any export license for a period of up to
10 years from the date of the conviction. The designated statutes
include the EAA or any regulation, license, authorization or order
issued thereunder; any regulation, license or order issued under the
International Emergency Economic Powers Act; section 4(b) of the
Internal Security Act of 1950; 18 U.S.C. sections 793, 794 or 798, and
section 38 of the Arms Export Control Act. The Secretary may also
revoke any export license under this Act in which such person has an
interest at the time of the conviction. BXA uses this denial authority
to protect U.S. national security and foreign policy interests.
Section 766.25(a) provides that ``the Director of the Office of
Exporter Services, in consultation with the Director of the Office of
Export Enforcement, may deny permission to apply for or use any
license, including any License Exception, to any person who has been
convicted of a violation of the'' aforementioned designated statutes.
This rule amends section 766.25(b) of the EAR by providing that, unless
exceptional circumstances exist, BXA will notify a person convicted of
one of the designated statutes that BXA is going to issue an order
denying that person's export privileges and giving that person an
opportunity to make written submission to BXA regarding BXA's proposed
denial. This rule further clarifies that the export privileges that may
be denied in any such order, include, but are not limited, to applying
for, obtaining, or using any license, License Exception, or export
control document; or participating in or benefiting in any way from any
export or export-related transaction subject to the EAR.
Section 756.1(a) states, in pertinent part, that actions taken
under part 766 of the EAR are not subject to the appeals procedures
described in part 756. This rule amends section 756.1(a)(2) to provide
that an appeal from an action taken under section 766.25 shall be
subject to the appeals procedures in part 756.
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, as amended, in Executive
[[Page 14863]]
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 13,
1999 (64 FR 44101).
Rule Making Requirements
1. This final 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 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 current valid OMB Control Number. This
regulation does not involve any paperwork collections.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 13132.
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 the Administrative Procedure
Act 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 Kirsten Mortimer,
Office of Exporter Services, Bureau of Export Administration,
Department of Commerce, P.O. Box 273, Washington, DC 20044.
List of Subjects
15 CFR Part 756
Administrative practice and procedures, Exports, Foreign trade,
Penalties.
15 CFR Part 766
Administrative practice and procedures, Business and industry,
Confidential business information, Exports, Foreign trade, Reporting
and recordkeeping requirements.
Accordingly, parts 756 and 766 of the Export Administration
Regulations (15 CFR parts 730-774) are amended as follows:
1. The authority citation for parts 756 and 766 are revised 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
10, 1999, 64 FR 44101 (August 13, 1999).
PART 756--[AMENDED]
2. Section 756.1 is amended by revising paragraph (a)(2) to read as
follows:
Sec. 756.1 Introduction.
(a) * * *
(2) Denial or probation orders, civil penalties, sanctions, or
other actions under parts 764 and 766 of the EAR, except that, an
appeal from an action taken under Sec. 766.25 shall be subject to the
appeals procedures described in this part 756.
* * * * *
PART 766--[AMENDED]
3. Section 766.25 is amended by revising the section heading and
paragraphs (a), (b), (d), (e) and (f) to read as follows:
Sec. 766.25 Administrative action denying export privileges.
* * * * *
(a) General. The Director of the Office of Exporter Services, in
consultation with the Director of the Office of Export Enforcement, may
deny the export privileges of any person who has been convicted of a
violation of the EAA, the EAR, or any order, license, or authorization
issued thereunder; any regulation, license or order issued under the
International Emergency Economic Powers Act (50 U.S.C. 1701-1706); 18
U.S.C. 793, 794 or 798; section 4(b) of the Internal Security Act of
1950 (50 U.S.C. 783(b)), or section 38 of the Arms Export Control Act
(22 U.S.C. 2778).
(b) Procedure. Upon notification that a person has been convicted
of a violation of one or more of the provisions specified in paragraph
(a) of this section, the Director of the Office of Exporter Services,
in consultation with the Director of the Office of Export Enforcement,
will determine whether to deny such person export privileges, including
but not limited to applying for, obtaining, or using any license,
License Exception, or export control document; or participating in or
benefiting in any way from any export or export-related transaction
subject to the EAR. Before taking action to deny a person export
privileges under this section, the Director of the Office of Exporter
Services will provide the person written notice of the proposed action
and an opportunity to comment through a written submission, unless
exceptional circumstances exist. In reviewing the response, the
Director of the Office of Exporter Services will consider any relevant
or mitigating evidence why these privileges should not be denied. Upon
final determination, the Director of the Office of Exporter Services
will notify by letter each person denied export privileges under this
section.
* * * * *
(d) Duration. Any denial of export privileges under this section
shall not exceed 10 years from the date of the conviction of the person
who is subject to the denial.
(e) Effect. Any person denied export privileges under this section
will be considered a ``person denied export privileges'' for purposes
of Sec. 736.2(b)(4) (General Prohibition 4--Engage in actions
prohibited by a denial order) and Sec. 764.2(k) of the EAR.
(f) Publication. The name and address(es) of any person denied
export privileges under this section will be published as described in
Supplement No. 2 to part 764 of the EAR, noting that such action was
taken pursuant to this section and section 11(h) of the EAA.
* * * * *
Dated: March 9, 2000.
R. Roger Majak,
Assistant Secretary for Export Administration.
[FR Doc. 00-6679 Filed 3-17-00; 8:45 am]
BILLING CODE 3510-33-M