[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