[Federal Register Volume 67, Number 248 (Thursday, December 26, 2002)]
[Rules and Regulations]
[Pages 78685-78686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32424]


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DEPARTMENT OF STATE

22 CFR Part 126

[Public Notice 4236]
RIN 1400-AB61


Bureau of Political-Military Affairs; Amendments to the 
International Traffic in Arms Regulation: Canadian Exemption

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: This rule clarifies the Canadian Exemption at the 
International Traffic in Arms Regulations (ITAR) as to how the 
Department of State will identify Canadian Crown Corporations as 
authorized end-users.

EFFECTIVE DATE: December 26, 2002.

FOR FURTHER INFORMATION CONTACT: David C. Trimble, Director, Compliance 
Division, Office of Defense Trade Controls, Bureau of Political-
Military Affairs, Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: On February 16, 2001, the Department of 
State published a final rule amending the Canadian Exemption (22 CFR 
126.5) of the ITAR (66 FR 10575). Authorized end-users included 
Canadian Federal or Provincial governmental authorities acting in an 
official capacity or a ``Canadian-registered person.'' The term 
``Canadian-registered person'' encompassed any Canadian national 
(including Canadian business entities organized under the laws of 
Canada), dual national, and permanent resident registered in Canada in 
accordance with the Canadian Defence Production Act, and such other 
Canadian Crown Corporations as may be identified by the Department of 
State. This final rule amends section 126.5(b) of the ITAR by adding 
``Canadian Crown Corporations identified by the Department of State in 
a list of such persons publicly available through the Internet Website 
of the Office of Defense Trade Controls and by other means.''
    This amendment involves a foreign affairs function of the United 
States and, therefore, is not subject to the procedures required by 5 
U.S.C. 553 and 554. It is exempt from review under Executive Order 
12866 but has been reviewed internally by the Department to ensure 
consistency with the purposes thereof. This rule does not require 
analysis under the Regulatory Flexibility Act or the Unfunded Mandates 
Reform Act. It has been found not to be a major rule within the meaning 
of the Small Business Regulatory Enforcement Act of 1966. It will not 
have substantial direct effects on the States, the relationship between 
the National Government and the States, or on the distribution of power 
and responsibilities among the various levels of government. Therefore, 
in accordance with section 6 of Executive Order 13132, it is determined 
that this rule does not have sufficient federalism implications to 
warrant application of Executive Orders 12372 and 13123. However, 
interested parties are invited to submit written comments to the 
Department of State, Office of Defense Trade Controls, ATTN: Regulatory 
Change, Canadian Exemption, 12th Floor, SA-1, Washington, D.C. 20522-
0112. Such persons must be so registered with the Department of State's 
Office of Defense Trade Controls (DTC) pursuant to the registration 
requirements of section 38 of the Arms Export Control Act.

List of Subjects in 22 CFR Part 126

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, Part 126, is being amended as follows:

PART 126--GENERAL POLICIES AND PROVISIONS

    1. The authority citation for part 126 continues to reads as 
follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Pub. L. 90-629, 90 Stat. 
744 (22 U.S.C. 2752, 2778,

[[Page 78686]]

2780, 2791, and 2797); 22 U.S.C. 2778; E.O. 11958, 42 FR 4311; 3 
CFR, 1977 Comp., p.79; 22 U.S.C. 2658; 22 U.S.C. 287c; E.O. 12918, 
59 FR 28205, 3 CFR 1994 Comp., p 899.


    2. Section 126.5(b) introductory text is revised to read as 
follows:


Sec.  126.5  Canadian exemptions.

    (a) * * *
    (b) Permanent and temporary export of defense articles. Except for 
the defense articles and related technical data, and defense services 
identified in paragraphs (b)(1) through (b)(20) of this section, for 
exports that transit third countries, and provided the requirements of 
this subchapter are met, (to include 22 CFR 120.1 (c) and (d), parts 
122 and 123 (except insofar as exemption from licensing requirements is 
herein authorized) and Sec.  126.1, and the requirement to obtain non-
transfer and use assurances for all significant military equipment), 
District Director of Customs and postmasters shall permit, when for 
end-use in Canada by Canadian Federal or Provincial governmental 
authorities acting in an official capacity or by a Canadian-registered 
person or return to the United States, the permanent and temporary 
export to Canada without a license of defense articles and related 
technical data identified in 22 CFR 121.1, except as described in 
paragraphs (b)(1) through (20) of this section, and the defense 
services and technical data described in paragraph (c) of this section. 
For purposes of this section, ``Canadian-registered person'' is any 
Canadian national (including Canadian business entities organized under 
the laws of Canada), dual national, and permanent resident registered 
in Canada in accordance with the Canadian Defense Production Act, and 
such other Canadian Crown Corporations identified by the Department of 
State in a list of such persons publicly available through the Internet 
Website of the Office of Defense Trade Controls and by other means. The 
defense articles, related technical data, and defense services 
identified in 22 CFR 121.1 continuing to require a license are:
* * * * *

    Dated: October 28, 2002.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 02-32424 Filed 12-24-02; 8:45 am]
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