[Federal Register Volume 67, Number 188 (Friday, September 27, 2002)]
[Proposed Rules]
[Pages 61047-61049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24458]



Bureau of Industry and Security

15 CFR Chapter VII

[Docket No. 020725178-2178-01]

Effects of Foreign Policy-Based Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

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


SUMMARY: The Bureau of Industry and Security 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to determine whether they should be modified, rescinded, or extended.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, BIS is seeking public comments on 
how existing foreign policy-based export controls have affected 
exporters and the general public.

DATES: Comments must be received by November 29, 2002.

ADDRESSES: Written comments (three copies) should be sent to Sheila 
Quarterman, Regulatory Policy Division, Office of Exporter Services, 
Bureau of

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Industry and Security, Department of Commerce, P.O. Box 273, 
Washington, DC 20044. Comments may also be e-mailed to Brian Nilsson, 
Office of Strategic Trade and Foreign Policy Controls, at 
[email protected].

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy 
Controls Division, Office of Strategic Trade and Foreign Policy 
Controls, Bureau of Industry and Security; Telephone: (202) 482-5400. 
Copies of the current Annual Foreign Policy Report to the Congress are 
available at www.bxa.doc.gov/press/2002/ForeignPolicyReport02/Default.htm.
    Copies may also be requested by calling the Office of Strategic 
Trade and Foreign Policy Controls.

SUPPLEMENTARY INFORMATION: The current foreign policy-based export 
controls maintained by the Bureau of Industry and Security (BIS) are 
set forth in the Export Administration Regulations (EAR), parts 742 
(Commerce Control List 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 (Sec. Sec.  742.8, 742.9, 742.10, 742.19, 746.2, 746.3, and 
746.7); and, Libya (Sec. Sec.  744.8 and 746.4). Attention is also 
given in this context to the controls on nuclear-related commodities 
and technology (Sec. Sec.  742.3 and 744.2), which are, in part, 
implemented under section 309(c) of the Nuclear Non Proliferation Act.
    Under the provisions of section 6 of the Export Administration Act 
of 1979, as amended (EAA), export controls maintained for foreign 
policy purposes require annual extension. Section 6 of the EAA requires 
a report to Congress when foreign policy-based export controls are 
extended. Although the EAA expired on August 20, 2001, 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 of August 17, 2001 (66 FR 44025, August 
22, 2001), as extended by the President's Notice of August 14, 2002 (67 
FR 53721, August 16, 2002). In January 2002, the Secretary of Commerce, 
on the recommendation of the Secretary of State, extended for one year 
all foreign policy-based export controls then in effect. The Department 
of Commerce, insofar as appropriate, is following the provisions of 
Section 6 of the EAA in reviewing foreign policy-based export controls, 
requesting public comments on such controls, and submitting an annual 
report to Congress.
    To assure maximum public participation in the review process, 
comments are solicited on the extension or revision of the existing 
foreign policy-based export controls for another year. Among the 
criteria considered in determining whether to continue or revise U.S. 
foreign policy-based export controls are the following:
    1. The likelihood that such export 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 export controls with the foreign policy 
objectives of the U.S. and with overall U.S. policy toward the country 
subject to the controls;
    4. Whether reaction of other countries to the extension of such 
export controls by the U.S. is not likely to render the controls 
ineffective in achieving the intended foreign policy purpose or be 
counterproductive to U.S. foreign policy interests;
    5. The comparative benefits to U.S. foreign policy objectives 
versus the effect of the export controls on the export performance of 
the United States, the competitive position of the United States in the 
international economy, and 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 export controls 
    BIS is particularly interested in the experience of individual 
exporters in complying with nonproliferation export controls, with 
emphasis on economic impact and specific instances of business lost to 
foreign competitors. BIS is interested in industry information relating 
to the following:
    1. Information on the effect of foreign policy-based export 
controls on sales of U.S. products to third countries (i.e., those 
countries not subject to sanctions), including the views of foreign 
purchasers or prospective customers regarding U.S. foreign policy 
    2. Information on export 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 foreign trade 
partners of the United States which are similar to U.S. foreign policy 
export controls, including export license application review criteria, 
use of export license conditions, and requirements for pre- and post-
shipment verifications (preferably supported by examples of approvals, 
denials and foreign regulations).
    4. Suggestions for revisions to foreign policy-based export 
controls (in the event there are differences) that would bring them 
more into line with multilateral practice.
    5. Comments or suggestions as to actions that would make 
multilateral export controls more effective.
    6. Information that illustrates the effect of foreign policy 
controls on the trade or acquisitions by intended targets of the 
    7. Data or other information as to the effect of foreign policy-
based export 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-
based export controls on U.S. trade.
    9. Information on the use of foreign policy-based export controls 
on targeted countries, entities, or individuals.
    BIS is also interested in general comments relating to the 
extension or revision of existing U.S. foreign policy-based export 
    Parties submitting comments are asked to be as specific as 
possible. In the interest of accuracy and completeness, BIS requires 
written comments. Oral comments must be followed by written memoranda. 
All written comments received before the close of the comment period 
will be considered by BIS in reviewing the foreign policy-

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based export controls and in developing the annual report to Congress.
    All written comments and information submitted in response to this 
notice will be a matter of public record and, therefore, will be 
available for public inspection and copying. The BIS does not maintain 
an on-site facility for the public to inspect public records. All 
public records are posted on the BIS' Web site which can be found at 
www.bis.doc.gov (click on the FOIA Reading Room link under the section 
of Public Information and Events). Copies of the public record may also 
be obtained by submitting a written request to the Bureau of Industry 
and Security, Office of Administration, U.S. Department of Commerce, 
Room 6883, 1401 Constitution Avenue, NW, Washington, DC 20230.

James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 02-24458 Filed 9-26-02; 8:45 am]