[Federal Register Volume 68, Number 218 (Wednesday, November 12, 2003)]
[Proposed Rules]
[Pages 64009-64023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-28133]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 748, 754, and 772

[Docket No. 030425102-3102-01]
RIN 0694-AC20


Mandatory Use of Simplified Network Application Processing System

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Export Administration 
Regulations (EAR) to implement a revised version of the Bureau of 
Industry and Security's (BIS) Simplified Network Application Processing 
(SNAP+) system (hereinafter, the version of the Bureau of Industry and 
Security's Simplified Network Application Processing system that 
currently exists shall be referred to as SNAP, while the version that 
is proposed in this rule shall be referred to as SNAP+). This proposed 
rule also would mandate use of SNAP+ for all filings of Export License 
applications (except Special Comprehensive Licenses), Reexport 
Authorization requests, Classification requests, Encryption Review 
requests, and License Exception AGR notifications unless BIS authorizes 
paper filing for a particular user or transaction. The requirement to 
use SNAP+ also would apply to any documentation required to be 
submitted with applications, requests or notifications. This proposed 
rule also would continue some provisions of the regulations associated 
with SNAP and other electronic filing systems that BIS has used in the 
past until a SNAP user's account is converted to SNAP+. Examples of 
these provisions include the requirements imposed on companies and 
individuals to protect the integrity of identification numbers. Other 
provisions, such as the requirement to maintain a log of submissions 
filed before being converted to SNAP+ would continue in effect even 
after an existing user is converted to SNAP+ for the period of time 
specified by Part 762 of the regulations. This proposed rule also would 
amend the EAR to require that requests for advisory opinions include 
the Export Control Classification Number of the item(s) at issue, to 
require item Classification Requests include a recommended ECCN, to 
replace some address listings in the regulations with references to BIS 
forms that contain those addresses, and to correct some omissions, 
misstatements and typographical errors.

DATES: Comments must be received by January 12, 2004.

ADDRESSES: Written comments should be e-mailed to: [email protected], 
faxed to 202-482-3355, or mailed or delivered to Regulatory Policy 
Division, Office of Exporter Services, Bureau of Industry and Security, 
Department of Commerce, 14th and Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230. Reference Regulatory Identification Number 0694-
AC20 in all comments.

FOR FURTHER INFORMATION CONTACT: For information concerning SNAP+, 
contact George Ipock, Office of Administration: e-mail 
[email protected], telephone: (202) 482-5469. For information 
concerning other matters raised by this proposed rule, contact William 
Arvin, Office of Exporter Services: e-mail [email protected], 
telephone (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) administers export 
license, notification, and reporting requirements for a number of 
export and reexport transactions based on the nature of the item being 
exported or reexported, its intended destination, the end-user, and the 
end-use. In addition, BIS provides advice to persons concerning the 
classification of items that may be subject to the Export 
Administration Regulations and advisory opinions regarding the 
applicability of the Export Administration Regulations to particular 
transactions. The public obtains all of these services, except advisory 
opinions, by submitting a paper form or by submitting the information 
electronically, either through the SNAP system or through one of 
several systems maintained by private vendors. Recently, a majority of 
the submissions for which an electronic vehicle is available have been 
submitted electronically. Heretofore, the electronic submission 
vehicles have not provided for electronic submission of supporting 
documents or other documents that relate to an application, request, or 
report. SNAP+ would permit submissions via the World Wide Web using a 
Web browser and would have the capability to ``attach'' images (as PDF 
files) of related documents to applications or requests. It would also 
incorporate security features that were not available when electronic 
filing of export license applications began in the mid 1980s. 
Accordingly, BIS is proposing to amend the Export Administration 
Regulations to require

[[Page 64010]]

that all export license applications (except Special Comprehensive 
Licenses), reexport license applications, Classification Requests, 
encryption review requests, and notifications prior to shipments of 
food and agricultural commodities to Cuba under License Exception AGR, 
along with any supporting or related documents be submitted via SNAP+. 
Any supporting or related documents attached to the submission would 
have to be in PDF format and, if they contain text, would have to be 
text searchable. BIS would consider requests for exceptions to the 
mandatory electronic filing rule and grant them in the following 
circumstances:
    [sbull] A filer who has made no more than three submissions to BIS 
in the preceding twelve months;
    [sbull] A filer who lacks access to the Internet;
    [sbull] BIS has rejected the filer's request or revoked its 
eligibility to file electronically;
    [sbull] BIS has requested that the filer submit a paper document 
for a particular transaction; or
    [sbull] BIS determines that urgent circumstances or circumstances 
beyond the filer's control require allowing paper filing in a 
particular case.
    BIS is aware of the possibility that some applicants might have to 
acquire certain hardware or software to be able to comply with this 
proposed rule. BIS also is aware that current electronic filers who use 
systems other than SNAP would have to begin using SNAP+ (or have an 
authorized agent acting on their behalf use SNAP+) in order to comply 
with this proposed rule unless one of the foregoing exceptions applies. 
BIS is interested in comments that address the benefits and burdens 
associated with these requirements.
    SNAP+ would eliminate the registration of individual users by paper 
communication with BIS. Instead, a person may begin the registration 
process on behalf of himself or herself or may register an entity such 
as a corporation online. That person would be required to provide the 
following information concerning the SNAP+ applicant:
    [sbull] Name of SNAP+ applicant;
    [sbull] Address of SNAP+ applicant;
    [sbull] ``Organization Type,'' whether the SNAP+ applicant is an 
individual or an entity other than an individual;
    [sbull] Its ``Employee Identification Number'' if the SNAP+ 
applicant is not an individual and is located in the United States;
    [sbull] The name, telephone number, and e-mail address of the SNAP+ 
applicant's ``designated official;'' and
    [sbull] The name, telephone number, and e-mail address of the SNAP+ 
applicant's initial organization administrator.
    The SNAP+ system would then generate a paper document called an 
electronic submission certification, which explains the major 
responsibilities of SNAP+ users, for the designated official to sign 
and submit to BIS. BIS would notify the designated official by e-mail 
of its approval or rejection of the application to use SNAP+.
    BIS is also proposing to convert existing SNAP users to SNAP+ 
through the following process. BIS would send a letter to each existing 
SNAP user informing it of the date on which it will be converted to the 
new system. The letter will also inform the existing SNAP user that a 
person who knows the existing user's current SNAP company 
identification number must log onto the system to provide the name and 
contact information of the individuals who the existing user determines 
will be Organization Administrator and Designated Official in the SNAP+ 
system. Existing SNAP users will not be able to use SNAP on or after 
the conversion date until this step is taken. In addition, the letter 
will describe the roles of the Organization Administrator and 
Certifiers, as set forth below. BIS anticipates that it will not 
convert all of the existing SNAP users to SNAP+ at the same time and 
that the conversion process may take several months starting on the day 
that SNAP+ is implemented.
    SNAP+ would also create some new roles with specific 
responsibilities in the SNAP+ system. Those roles, which apply to both 
new SNAP+ users and to existing SNAP users when they are converted to 
the SNAP+ system by BIS would be:
    [sbull] SNAP+ Applicant. The entity or individual that applies to 
use SNAP+ to submit documents to BIS.
    [sbull] SNAP+ User. The individual or entity that has been 
authorized to submit documents via SNAP+.
    [sbull] Designated Official. The individual who executes, on behalf 
of the SNAP+ applicant, the application to use the SNAP+ system.
    [sbull] Organization Administrator. An individual who can enable 
other people to use the SNAP+ system on a particular SNAP+ user's 
behalf and who can assign roles to, remove roles from, or eliminate all 
access to SNAP+ for those people. Those roles include additional 
organization administrators (who can do all of the tasks that the 
initial organization administrator can do), as well as certifiers, 
stagers and viewers.
    [sbull] Certifier. An individual who can submit to BIS, on behalf 
of a SNAP+ user, any type of submission that is available via the SNAP+ 
system at the time of submission, even if that type of submission was 
not available at the time that he/she became a certifier, and who can 
make representations to BIS, on the SNAP+ user's behalf, as to the 
truth, accuracy and completeness of that submission. BIS will treat 
submissions made in the SNAP+ system by any of the SNAP+ user's 
certifiers as representations by the SNAP+ user to the United States 
Government until the certifier's role is terminated in the SNAP+ system 
by one of SNAP+ user's organization administrators or by BIS.
    [sbull] Stager. An individual who can enter information and 
documents into the SNAP+ system on behalf of a SNAP+ User for 
submission to BIS by a certifier.
    [sbull] Viewer. An individual who is able to view information and 
documents in the SNAP+ system, but is unable to enter, modify or 
certify any information or documents.
    [sbull] Agents. An individual or entity who submits documents via 
SNAP+ for another party. An agent would be required to notify BIS 
immediately if his authority to do so is terminated. This provision is 
needed so that BIS can terminate any access that the agent would have 
in the SNAP+ system to information about a former client that is 
protected from disclosure by the confidentiality provisions of the 
Export Administration Act. Within the SNAP+ system, such agents are 
referred to as ``third parties.''
    BIS is also proposing to eliminate some obsolete, redundant or 
incorrect references in Part 748 of the Export Administration 
Regulations, eliminate an inconsistency, add information that had been 
omitted and replace some addresses listed in the regulations with 
references to BIS forms containing those addresses.
    This proposed rule would make the following specific amendments to 
the Export Administration Regulations.
    In part 740, Sec.  740.17(d)(1) would be amended to make clear that 
review requests for License Exception ENC must be filed via SNAP+ 
unless BIS authorizes use of the paper form BIS-748P, that documents 
submitted in connection with SNAP+ submissions must be in ``PDF'' 
format and, if they contain text, must be text searchable. The 
reference to Sec.  748.2(c) for the addresses for submitting license 
applications would be replaced with a reference to the addresses 
preprinted on the form. Section 740.18(c)(2) would be amended to 
replace language that makes use of electronic filing optional with

[[Page 64011]]

language that makes use of SNAP+ mandatory unless BIS has approved the 
applicant for paper filing, that documents submitted in connection with 
SNAP+submissions must be in ``PDF'' format and, if they contain text, 
must be text searchable. Language referring to block numbers on the 
form would be replaced by names of blocks or fields because SNAP+ does 
not use block numbers.
    In part 742, Sec.  742.15(b)(2)(i) would be amended to make clear 
that SNAP+ must be used for requests to review encryption items 
exceeding 64 bit key length for mass market status and to replace the 
reference to Sec.  748.2(c) for the addresses for submitting license 
applications with a reference to the addresses preprinted on the form. 
Supplement No. 6 to part 742 would be amended by having its 
introductory paragraph revised to replace language that makes use of 
electronic filing optional with language that makes use of SNAP+ 
mandatory unless BIS has approved the applicant for paper filing. 
Provisions regarding use of couriers or fax for paper documents related 
to electronic applications would also be removed because the new SNAP+ 
system will provide for ``attachment'' of electronic images of such 
documents to filings.
    In part 748, Sec. Sec.  748.1, 748.2, 748.3, 748.4, 748.5, 748.6, 
748.7, 748.9, 748.10, 748.11, 748.12, 748.14, Supplement No. 1, and 
Supplement No. 2 would be amended as follows.
    Section 748.1, paragraph (a) would be amended to reverse the order 
in which paper and electronic submissions are mentioned to emphasize 
electronic submissions. It would also be amended to add encryption 
review requests and license exception notifications to the listing of 
submission to which part 748 applies. The last sentence of this 
paragraph would also be removed because it is superfluous. Two new 
paragraphs (d) and (e) would be added. Paragraph (d) would make use of 
SNAP+ mandatory for all license applications (except Special 
Comprehensive Licenses), Classification Requests, Encryption Review 
requests, and License Exception AGR notifications unless BIS authorizes 
paper filing. Paragraph (e) would establish the grounds under which BIS 
would grant authorization to use paper filing, the procedures for 
requesting authorization to use paper filing and the method by which 
BIS would notify a party of its decision. The proposed grounds 
justifying paper filing are: three or fewer filings in the preceding 12 
months, lack of access to the Internet, rejection or revocation of 
electronic filing authorization by BIS, request by BIS that a filing 
for a particular transaction be submitted on paper, and when BIS 
determines that urgent circumstances or circumstances beyond the 
filer's control require paper filing in a particular instance.
    Section 748.2 paragraph (c) would be amended by changing the first 
word from ``All'' to ``Paper'' because it provides the mailing address 
for paper applications and to replace the listing of the addresses to 
which paper applications may be submitted with a reference to the 
addresses listed on the paper forms.
    Section 748.3 would be amended to revise paragraph (b) to make 
electronic filing via SNAP+ mandatory unless BIS grants an exception 
pursuant to Sec.  748.1(e) and to replace references to block numbers 
on the paper application form with names or by describing the 
information that must be provided when seeking a Classification. This 
change is needed because SNAP+ will not contain block numbers. The 
proposal would require that documents submitted in connection with a 
Classification Request be submitted in ``PDF'' format and be text 
searchable, if they contain text. It would also amend paragraph (b) to 
replace the listing of addresses to which Classification Requests must 
be sent to a reference to the addresses on the application form. 
Paragraph (c)(2)(iii) would be amended to require the requestor to 
provide an Export Control Classification Number or a statement that the 
item is EAR99 for all Advisory Opinion requests. Classification 
Requests will be clearly designated as such and evaluated separately 
from Advisory Opinions. BIS will not provide both a Classification and 
an Advisory Opinion in a response to a single request. This change will 
allow BIS to ensure that all Classification Requests are properly 
recorded and will help promote consistent results when evaluating 
Classification Requests.
    Section 748.4 would be amended by revising the third sentence in 
paragraph (b)(1) to replace the word ``should'' with the word ``must'' 
in describing the responsibility to disclose all parties to a 
transaction and the functions to be performed by each party. Block 
numbers throughout the paragraph would be replaced with names. 
Paragraph (b)(2)(ii) would be amended to implement the SNAP+ 
requirement that an agent who files on behalf of others and who is 
required to have a power of attorney or other written authorization to 
do so, register as a ``Third Party'' in SNAP+ and to replace block 
numbers with names. Paragraph (g) also would be amended to replace 
block numbers with names.
    Section 748.5 would be amended by revising the introductory 
paragraph to replace separate references to paper and electronic 
applications with the single term ``applications'' and by revising 
paragraph (b) to replace a block number with a name.
    Section 748.6 would be amended by revising paragraph (a) to make 
clear that license applications must be filed via SNAP+ unless BIS has 
authorized paper filing. Paragraph (e) would be amended to provide that 
references to the application control number must appear on documents 
submitted in connection with license applications submitted on paper; 
and that documents submitted in connection with applications filed via 
SNAP+ must be in ``PDF'' format and must be text searchable if they 
contain text.
    Section 748.7 would be almost entirely rewritten. Provisions 
relating to applying by mail to use electronic filing, registration by 
BIS of each individual who is to use electronic filing, and assignment 
of company identification numbers and personal identification numbers 
would be removed. Requirements relating to use of company 
identification numbers and personal identification numbers would 
continue to apply to companies and individuals already authorized to 
file electronically until their accounts are converted to SNAP+. BIS 
anticipates that these requirements can be removed once all electronic 
filers are converted to SNAP+, a process that may take several months 
starting on the date that SNAP+ is implemented initially. The 
prohibitions against copying, stealing or using another person's 
personal identification number would remain in effect without 
limitation as would the requirement to keep a log of electronic filings 
made prior to conversion to SNAP+ (users of SNAP+ would not be required 
to keep such a log). New material would be added as follows. Paragraph 
(a) would reiterate that all electronic submissions must be made 
through SNAP+. Paragraph (b)(1) would establish the procedures for new 
applicants to use SNAP+. It would set forth the information that a 
SNAP+ applicant must provide and how to provide it, how BIS would 
communicate its response to the SNAP+ applicant and would establish 
some specific responsibilities for users of SNAP+. This section would 
require applicants to use SNAP+ to provide the name and address of the 
SNAP+ applicant, and whether the SNAP+ applicant is an individual or an 
entity other than an individual (referred to as ``industry'' in

[[Page 64012]]

SNAP+). If the SNAP+ applicant is not an individual and is located in 
the United States, this section requires it to provide its Employer 
Identification Number. All SNAP+ applicants are also required to 
provide name, telephone number and e-mail address of the SNAP+ 
applicant's ``Designated Official'' and initial Organization 
Administrator. Paragraph (b)(2) establishes a procedure for notifying 
existing SNAP Users of the conversion to SNAP+ and of the information 
that the existing user must provide at the time of conversion. The SNAP 
User would have to provide that name and contact information of its 
initial Designated Official and Organization Administrator. Paragraph 
(c) would describe the roles and responsibilities of parties related to 
SNAP+. Paragraph (d) would describe requirements and prohibitions of 
SNAP that would continue in force after implementation of SNAP+. 
Paragraph (e) would describe responsibilities of parties who use 
current electronic submission systems that would continue until 
conversion to SNAP+.
    Section 748.9 would be amended by revising paragraph (c) to make 
clear that license applicants using electronic submissions must 
designate on the appropriate data entry screen the type of supporting 
document they have obtained.
    Sections 748.10(f), 748.11(a)(2), 748.12(d)(1), 748.14(b) would be 
amended to replace block numbers with names. In addition, Sec.  
748.10(g) would be amended to allow an electronic image of the PRC End 
User Certificate to be submitted in support of license applications 
filed via SNAP+ provided the applicant retains the original in its 
files. The original certificate would continue to be required for 
applications submitted on paper. Section 748.12(d) would be amended to 
make clear that requests for exceptions to a support document 
requirement may be submitted as electronic attachments to a license 
application filed via SNAP+. Section 748.14(b) would be amended to make 
clear that all of the recordkeeping requirements of part 762 and not 
just Sec.  762.2 apply to firearms import certificates retained by a 
license applicant and Sec.  748.14(e) would be amended to replace the 
term ``BIS Form-748P'' with ``application'' because it applies to both 
paper and electronic applications.
    Supplement No. 1 to Part 748 would be amended to add references to 
SNAP+, Export License applications, Reexport Application requests, 
Classification Requests, Encryption Review requests, and License 
Exception AGR notifications and to state that its requirements apply to 
all of those types of submissions, unless specifically noted, 
regardless of whether submitted via SNAP+ or on paper. The descriptions 
of transactions that constitute reexports would be revised to make them 
more completely reflect the definition of that term in part 772. 
Clarifying language would be added to describe when information about 
ultimate consignees must be submitted. Language that makes submission 
of an item in SNAP+ the equivalent of a signature would be added. This 
supplement would also be amended to place in a single paragraph, the 
requirement to include the earlier application control number when 
reapplying for a transaction that has been previously denied or 
returned without action (RWA). The existing supplement lists this 
requirement separately for denials and RWA's.
    Supplement No. 2 to Part 748 would be amended throughout to replace 
references to block numbers with block or field names because SNAP+ 
does not use block numbers. In addition, paragraph (c)(2) would be 
amended to delete references to Advisory Notes 3 and 4 in Category 4 of 
the Commerce Control List because those Advisory Notes no longer exist. 
Paragraph (c)(2)(i) would be amended to allow submission of facsimiles 
of required signed statements by the end-user or importing agency 
because electronic images of such documents will have to be submitted 
under SNAP+. A new paragraph (c)(3) would be created requiring that 
originals be retained in accordance with the recordkeeping requirements 
of the EAR. In paragraph (f), a reference to Sec.  734.2(b)(8) would be 
corrected to read Sec.  736.2(b)(8). In paragraph (g)(2)(v), the words 
``if possible'' would be removed from the second sentence to more 
clearly reflect long-standing policy, which requires full disclosure of 
how the item proposed for export will be used in the sensitive nuclear 
end-uses to which this paragraph applies.
    In part 754, Sec. Sec.  754.2(g)(1), 754.4(d)(1) and (3), 
754.5(b)(2) and supplement No. 2, footnote number 2 would all be 
revised to replace language requiring use of the paper form BXA-748P 
with a requirement to use SNAP+ unless BIS approves the use of the 
paper form and to replace other references to the BXA-748P with the 
term ``application,'' which could apply to both electronic and paper 
applications. Sec.  754.4(d) also would be amended to allow 
applications for exports of unprocessed western red cedar filed through 
SNAP+ to include the exporter's statement in the additional information 
field of the SNAP+ application screen or as an electronic attachment to 
the application and to make the electronic certification of the 
application act as a signature on the statement rather than requiring a 
separate signed statement as is done with paper applications.
    Section 772.1 would be amended by adding a sentence to the end to 
the definition of the term ``Applicant'' to make clear that the 
definition does not apply to the term ``SNAP+ Applicant'' in Sec.  
748.7. This change is needed to make sure that rules that apply 
uniquely to applications to use SNAP+ are clearly distinguished from 
the rules governing applications in general.

Rulemaking Requirements

    1. This proposed rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. This proposed rule contains revised collection-of-information 
requirements subject to review and approval by the Office of Management 
and Budget (OMB) under the Paperwork Reduction Act (PRA). The OMB 
control number for this collection is 0694-0088. The requirement for 
most exporters to register with and use Simplified Network Application 
Processing (SNAP+) will be submitted to OMB for approval. The public 
reporting burden for this collection of information is estimated to 
average 58 minutes per application, depending on the nature of the 
submission and any relevant supplemental information required to 
support the submission, as well as the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Send comments regarding this collection of information to Ms. Marna 
Dove; Information Collection Budget Liaison, room H6622, Bureau of 
Industry and Security, U.S. Department of Commerce, Washington, DC 
20230 and to OMB at the Office of Information and Regulatory Affairs, 
Washington, DC 20503 (Attention: BIS Desk Officer). Notwithstanding any 
other provision of the 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 PRA, 
unless that collection of information displays a currently valid OMB 
control number.
    3. This rule does not contain policies with Federalism implications 
as this term is defined in Executive Order 13132.
    4. The Chief Counsel for Regulation of the Department of Commerce 
has

[[Page 64013]]

certified to the Counsel for Advocacy of the Small Business 
Administration that this proposed rule would not have a significant 
economic impact on a substantial number of small entities. An entity's 
potential burden under this rule would vary based on four factors; 
whether its submissions require additional documents; its pre-existing 
hardware and software; whether its documents are already in text 
searchable PDF format; and, if they are not, whether documents in such 
format can be created directly from other computer files or whether 
they must be scanned from paper documents.
    Some entities might incur no additional burden because of this 
rule. These are the entities whose submissions require no accompanying 
documents, those who are already creating the documents in text 
searchable PDF format and those who are already creating the documents 
using software that is capable of producing the same documents in PDF 
text searchable format. BIS does not have accurate data on the number 
of entities that fall into this category, but based on a recent sample 
from its internal database, BIS projects that as many as half of the 
submissions that it receives do not require any accompanying documents.
    Some entities might incur only a software acquisition burden 
because of this rule. These are the entities whose accompanying 
documents are already created using software that cannot produce PDF 
files directly, but that can produce such files with additional 
software that the entity can purchase. BIS estimates that such an 
entity with a small operation would incur an initial expense of 
approximately $325 to acquire that software necessary to comply with 
this rule. This estimate is based on the price of Adobe Acrobat[reg] 
Standard Edition ($299) as posted on the Adobe Corporation Web site on 
August 13, 2003 plus any taxes or shipping charges.
    Some entities might incur software and hardware acquisition costs 
and labor costs associated with a submission. These are the entities 
who will need to scan in paper documents and make them text searchable 
and who do not presently have either hardware or software capable of 
performing these functions. In some instances, the entity could utilize 
software that comes bundled with a scanner to comply with this 
requirement. In such instances, BIS estimates that the entity would 
incur an initial cost of approximately $300 (to purchase the scanner) 
to comply with this rule. In some cases, particularly if the entity has 
to scan numerous complex paper documents and make them text searchable, 
the costs could be higher. BIS estimates that the initial costs for an 
entity facing such a situation would be approximately $1,100. This 
estimate is based on a price of $300 for Adobe Acrobat[reg] Standard 
Edition software, $400 for Adobe Capture[reg] software, $300 for a 
scanner and $100 for taxes and shipping charges.
    Entities who have to scan paper documents may also incur labor 
costs to proofread and correct mistakes that may occur when a computer 
converts images to text. BIS estimates that, depending on the 
complexity of the document, proofreading could take from 5 minutes to 
20 minutes per page. In a recent random sampling of submissions 
recorded in BIS's databases, the number of supporting or explanatory 
pages associated with an individual submission varied from a low of 
zero to a high of 33 pages. A typical submission with attachments had 
about eight pages attached. However, BIS has no way of telling which 
attachments could be generated electronically and which would require 
scanning and proofreading. Assuming an average of 8 pages per document 
and labor costs for proofreading documents at $25 per hour, this cost 
would range from $16.67 to $100 per submission. BIS believes that this 
cost would not be incurred by entities that are able to produce the PDF 
documents from an electronic source because of the accuracy of the 
process for generating text in PDF files produced from such sources.
    Electronic filing would yield some cost savings to offset part or 
all of these costs. If a submission relates to attachments from an 
earlier submission, the submitter could refer to the previous file 
instead of supplying new attached documents. Currently, in many 
instances, attachments are submitted to BIS by overnight courier. 
Electronic filing would eliminate these courier costs. In addition, BIS 
internally uses an electronic system to process all submissions that 
are subject to this proposed rule, whether it receives the submission 
on paper or electronically. However, the attachments are all on paper, 
creating delays as paper documents are moved to the technical personnel 
in BIS and in other government agencies. Electronic attachments are 
likely to reduce evaluation time, i.e., the total time from submission 
to final decision, by several days.
    BIS does not collect data on the size of entities that file these 
submissions. However, based on the information that it does possess, 
BIS believes that fewer than 400 small entities are likely to be 
affected by this rule. BIS arrived at this conclusion by identifying 
all of the entities that filed four or more submissions during the 
period from January 1, 2002 to May 13, 2003. A total of 591 entities 
were identified. BIS determined that 120 of these are not small 
businesses because they are corporations, or affiliates thereof, that 
were listed in the Fortune 500 listing of April 14, 2003, or the 
Fortune Global 500 listing of July 22, 2002, or because the entity's 
Web site indicated sales in the most recent year in excess of $100 
million. The lowest reported sales figures for 2003 Fortune 500 and the 
2002 Fortune Global 500 were $2.9 billion and $10 billion, 
respectively. Of the remaining 471 entities, 44 submitted export 
license applications totaling more than $10 million and an additional 
21 submitted license applications between $5 million and $10 million 
during the period. Although BIS does not know their sales volumes or 
employment levels, companies anticipating such levels of export sales 
are unlikely to be small businesses.
    Because many industries may be involved in exporting, BIS could not 
directly relate its data to the ``Small Business Size Standards Matched 
to North American Industry Classification System'' published by the 
Small Business Administration (SBA). However, BIS notes that the range 
of annual sales among industries in that publication that could be 
involved in exporting is from $0.75 to $6 million.\1\ It is likely that 
many of the 406 remaining entities would not meet the small business 
standard established by the SBA. In addition, some of these entities 
may either file submissions that do not require attachments or already 
create text searchable PDF files of the documents that must be attached 
or already create the documents using software that can create PDF 
files directly. For these entities, the rule creates no new burden.
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    \1\ Several categories of construction contractors had sales 
cutoff levels ranging up to $28.5 million. However, such companies 
are unlikely to engage in activities that require export licenses.
---------------------------------------------------------------------------

    For two industries that are included in BIS's data, the SBA 
criteria is number of employees. These two industries are semiconductor 
manufacturing for which the level is 500 employees and small arms 
manufacturing, for which the level is 1,000 employees. BIS identified 
employee levels via the Web sites for several semiconductor 
manufacturers that appeared in its data. All of these had more than 500 
employees. In addition, they all had more than $100

[[Page 64014]]

million in annual sales. BIS was unable to identify the employment 
level for the firearms manufacturers in its data.
    However, most BIS firearms export applications are for shotguns 
that BIS can evaluate based on the applicant's furnishing of the 
manufacturer's name and the shotgun model number. Such applications 
typically require no attachments.
    Overall the number of small entities affected by this proposed rule 
is likely to be small. For those that are affected, the savings from 
re-use of documents for multiple submissions, reduced courier fees and 
faster processing times are likely to fully or partially compensate for 
the cost of compliance with this rule.

Request for Comments

    BIS is seeking public comments on this proposed rule. The period 
for submission of comments will close January 12, 2004. BIS will 
consider all comments received on or before that date in developing a 
final rule. Comments received after that date will be considered if 
possible, but their consideration cannot be assured. BIS will not 
accept public comments accompanied by a request that a part or all of 
the material be treated confidentially because of its business 
proprietary nature or for any other reason. BIS will return such 
comments and materials to the persons submitting the comments and will 
not consider them in the development of the final rule. All public 
comments on this proposed rule must be in writing (including fax or e-
mail) and will be a matter of public record, available for public 
inspection and copying. The Office of Administration, Bureau of 
Industry and Security, U.S. Department of Commerce, displays these 
public comments on BIS's Freedom of Information Act (FOIA) Web site at 
http://www.bis.doc.gov/foia. This office does not maintain a separate 
public inspection facility. If you have technical difficulties 
accessing this Web site, please call BIS's Office of Administration at 
(202) 482-0637 for assistance.

List of Subjects

15 CFR Parts 740 and 748

    Administrative practice and procedure, Exports, Foreign trade, 
Reporting and recordkeeping requirements.

15 CFR Parts 742 and 772

    Exports, Foreign Trade.

15 CFR Part 754

    Exports, Foreign trade, Forests and forest products, Petroleum, 
Reporting and recordkeeping requirements.

    Accordingly, Parts 740, 742, 748, 754, and 772 of the Export 
Administration Regulations (15 CFR Parts 730-799) are proposed to be 
amended as follows:

PART 740--[AMENDED]

    1. The authority citation for 15 CFR Part 740 is revised read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; 
Notice of August 7, 2003, 68 FR 47833, August 11, 2003.

    2. Section 740.17 is amended by revising paragraph (d)(1) to read 
as follows:


Sec.  740.17  Encryption commodities and software (ENC).

* * * * *
    (d) Review requirement. (1) Review request procedures. To request 
review of your encryption products under License Exception ENC, you 
must submit to BIS and to the ENC Encryption Request Coordinator the 
information described in paragraphs (a) through (e) of Supplement 6 to 
part 742 of the EAR (Guidelines for Submitting Review Requests for 
Encryption Items). Review requests must be submitted to BIS via SNAP+ 
or, if authorized by BIS, on the Form BIS-748P (as described in Sec.  
748.3 of the EAR). Any documents related to review requests submitted 
to BIS via SNAP+ must be in ``PDF'' format and, if they contain text, 
must be text searchable. To ensure that your review request is properly 
routed, insert the phrase ``License Exception ENC'' in the Special 
Purpose block or field of the application form and select 
``Classification Request'' from the work item menu in SNAP+ or place an 
``X'' in the box marked ``Classification Request'' in the Type of 
Application block on the BIS-748P. Failure to properly complete these 
items may delay consideration of your review request. Review requests 
that are not submitted electronically to BIS should be sent to one of 
the addresses preprinted on the form BIS-748P. See paragraph (e)(5)(ii) 
of this section for the mailing address for the ENC Encryption Request 
Coordinator. BIS will notify you if there are any questions concerning 
your request for review under License Exception ENC (e.g., because of 
missing or incomplete support documentation). Once your review has been 
completed, BIS will notify you in writing concerning the eligibility of 
your products for export or reexport, under the provisions of this 
license exception. BIS reserves the right to suspend your eligibility 
to export and reexport under License Exception ENC and to return your 
review request without action, if you have not met the review 
requirements. You may not export or reexport retail encryption 
commodities, software, or components under this license exception to 
government end-users headquartered outside of Canada and the countries 
listed in Supplement 3 to this part 740, unless you have received prior 
authorization from BIS.
* * * * *
    3. In Sec.  740.18, revise paragraph (c)(2) to read as follows:


Sec.  740.18  Agricultural Commodities AGR.

* * * * *
    (c) * * *
    (2) Procedures. You must submit your License Exception AGR 
notification via SNAP+ or, if BIS authorizes you to use paper filing 
pursuant to Sec.  748.1(e) of the EAR, on the BIS-748P form. In SNAP+, 
AGR notifications must be designated by selecting ``Agricultural 
License Exception Notice'' from the SNAP+ work item menu. Any 
documentation submitted via SNAP+ in connection with the License 
Exception AGR notification must be submitted as a ``PDF'' file and must 
be text searchable if the documentation contains text. Paper 
notifications must be designated by selecting ``Other'' in the ``Type 
of Application'' block. If any of the required information is missing, 
BIS will return without action notifications submitted via SNAP+ and 
will not initiate registrations of paper submissions. If a paper 
notification is not signed, BIS will not initiate registration. Each 
notification must include:
    (i) The name, telephone number, and facsimile number (if 
available), of a contact person;
    (ii) The name, address (including city, state, postal code and 
country) of the applicant, the purchaser, any intermediate consignee, 
the ultimate consignee, and the end-user;
    (iii) The Employer Identification Number of the applicant if 
applicable;
    (iv) The specific end-use;
    (v) Because only EAR99 items are eligible for this License 
Exception, enter EAR99 in the ECCN field;
    (vi) Quantity, units, unit price, and total price;
    (vii) Date of filing if filing on paper, SNAP+ notices are 
automatically dated;
    (viii) A description of the items;
    (ix) The total value in U.S. dollars; and

[[Page 64015]]

    (x) If the item to be exported is fertilizer, Western Red Cedar or 
live horses, you must include the Commodity Classification Automatic 
Tracking System (CCATS) number to confirm that BIS has classified the 
item as EAR99.
* * * * *

PART 742--[AMENDED]

    4. The authority citation for 15 CFR Part 742 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of November 9, 
2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; Notice of August 7, 
2003, 68 FR 47833, August 11, 2003.

    5. In Sec.  742.15, revise paragraph (b)(2)(i) to read as follows:


Sec.  742.15  Encryption items.

* * * * *
    (b) * * *
    (2) * * *
    (i) Procedures for requesting review. To request review of your 
mass market encryption products, you must submit to BIS and the ENC 
Encryption Request Coordinator the information described in paragraphs 
(a) through (e) of Supplement 6 to this part 742, and you must include 
specific information describing how your products qualify for mass 
market treatment under the criteria in the Cryptography Note (Note 3) 
of Category 5, Part 2 (``Information Security''), of the Commerce 
Control List (Supplement No. 1 to Part 774 of the EAR). Review requests 
must be submitted via SNAP+, or if authorized by BIS, on the Form BIS-
748P, as described in Sec.  748.3 of the EAR. To ensure that your 
review request is properly routed, insert the phrase ``mass market 
encryption'' in the Special Purpose block or field of the application 
form and select ``Classification Request'' from the SNAP+ work item 
menu or place an ``X'' in the box marked ``Classification Request'' on 
the form BIS-748P. Failure to properly complete these items may delay 
consideration of your review request. Review requests that are not 
submitted electronically to BIS should be sent to one of the addresses 
preprinted on the BIS-748P. Submissions to the ENC Encryption Request 
Coordinator should be directed to the mailing address indicated in 
Sec.  740.17(e)(5)(ii) of the EAR. BIS will notify you if there are any 
questions concerning your request for review (e.g., because of missing 
or incomplete support documentation).
    6. In supplement No. 6 to part 742 revise the introductory 
paragraph to read as follows:

Supplement No. 6 to Part 742--Guidelines for Submitting Review Requests 
for Encryption Items

    Review requests for encryption items and all accompanying 
documents must be submitted electronically via BIS's Simplified 
Network Application Process (SNAP+) or, if authorized by BIS (see 
Sec.  748.1(e) of the EAR), on Form BIS-748P (Multipurpose 
Application) with accompanying paper documentation in accordance 
with the procedures in Sec.  748.3 of the EAR. Requests must be 
supported by the documentation described in this Supplement. To 
ensure that your review request is properly routed, insert the 
phrase ``mass market encryption'' or ``License Exception ENC'' 
(whichever is applicable) in the ``Special Purpose'' block or field 
of the application. Select ``Commodity Classification'' from the 
SNAP+ work item menu or, if filing a paper application, place an 
``X'' in the box marked ``Classification Request'' in the ``Type of 
Application'' block. That block does not provide a separate item to 
check for the submission of encryption review requests. Failure to 
properly complete these items may delay consideration of your review 
request. Paper review requests must be sent to one of the addresses 
pre-printed on the form. In addition, you must send a copy of your 
review request and all support documents to: Attn: ENC Encryption 
Request Coordinator, 9800 Savage Road, Suite 6131, Fort Meade, MD 
20755-6000. For all review requests of encryption items, you must 
provide brochures or other documentation or specifications related 
to the technology, commodity or software, relevant product 
descriptions, architecture specifications, and as necessary for the 
review, source code. You also must indicate whether there have been 
any prior reviews of the product, if such reviews are applicable to 
the current submission. In addition, you must provide the following 
information in a cover letter accompanying your review request:
* * * * *

PART 748--[AMENDED]

    7. The authority citation for 15 CFR Part 748 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 68 FR 
47833, August 11, 2003.

    8. In Sec.  748.1, revise paragraph (a) and add paragraphs (d) and 
(e) to read as follows:


Sec.  748.1  General provisions.

    (a) Scope. In this part, references to the Export Administration 
Regulations or EAR are references to 15 CFR chapter VII, subchapter C. 
The provisions of this part involve requests for classifications and 
advisory opinions, export license applications, encryption review 
requests, reexport license applications, and license exception notices 
subject to the EAR. All terms, conditions, provisions, and 
instructions, including the applicant and consignee certifications, 
contained in such form(s) are incorporated as part of the EAR. For the 
purposes of this part, the term ``application'' refers to both 
electronic applications and the Form BIS-748P: Multipurpose 
Application.
* * * * *
    (d) Electronic Filing Required. All export license applications, 
reexport license applications, encryption review requests, license 
exception AGR notifications, and Classification Requests and their 
accompanying documents must be filed via BIS's Simplified Network 
Application Processing (SNAP+) system unless:
    (i) BIS approves the applicant for paper filing under paragraph (e) 
of this section; or
    (ii) The application is for a Special Comprehensive License.
    (e) Paper Filing Authorization. BIS may grant approval to use the 
paper forms (Form BIS-748P, Multipurpose Application (revised June 15, 
1996 or later), and Form BIS-748P-A, Item Appendix, and Form BIS-748P-
B, End-User Appendix) for export license applications, reexport license 
applications, encryption review requests, license exception AGR 
notifications, or Classification Requests under the conditions 
described in this paragraph.
    (1) Reasons for authorizing paper applications. The party 
submitting the application must meet one or more of the following 
criteria:
    (i) BIS has received no more than three applications, requests or 
notices from that party in the twelve months immediately preceding its 
receipt of the current application notification, or request;

    Note to paragraph (e)(1)(i): The party's export license 
applications, reexport license applications, encryption review 
requests, license exception AGR notifications, and Classification 
Requests will be added together to determine if this limit is met;

    (ii) The party does not have access to the Internet;
    (iii) BIS has rejected the party's request or revoked its 
eligibility to file electronically;
    (iv) BIS has requested that the party submit a paper copy for a 
particular transaction; or

[[Page 64016]]

    (v) BIS determines that urgent circumstances or circumstances 
beyond the filer's control require allowing paper filing in a 
particular instance.
    (2) Procedure for requesting authorization to file paper 
applications, notifications, or requests. Include, in the Additional 
Information block on the BIS-748P Multipurpose Application Form, the 
criterion(ia) listed in paragraph (e)(1) of this section upon which the 
request is based. If you are relying upon paragraph (e)(1)(ii) or (v), 
explain why you lack access to the Internet or why you believe that 
urgent circumstances or circumstances beyond your control require 
allowing paper filing in this instance. If you need additional space, 
attach a plain sheet of paper with the additional explanation to the 
Form BIS-748P.
    (3) BIS decision. If BIS authorizes or requires you to file using 
paper, it will process your application or request in accordance with 
Part 750 of the EAR. If BIS rejects your request to file using paper, 
it will return your Form BIS-748P and all attachments to you without 
action and will state the reason for the rejection.
    9. In Sec.  748.2, revise paragraph (c) to read as follows:


Sec.  748.2  Obtaining forms; mailing addresses.

* * * * *
    (c) Paper applications should be mailed or submitted using an 
overnight courier to one of the addresses preprinted on the application 
form. BIS will not accept applications sent C.O.D.
    10. In Sec.  748.3, revise paragraph (b) introductory text, add a 
sentence to the end of paragraph (b)(1), and revise paragraphs (b)(2) 
and (c)(2)(iii) to read as follows:


Sec.  748.3  Classification requests, advisory opinions, and encryption 
review requests.

* * * * *
    (b) Classification requests. You must submit your Classification 
Request electronically via SNAP+ unless BIS approves your request to 
use Form BIS-748P pursuant to Sec.  748.1(e) of the EAR. See the 
instructions contained in supplement No. 1 to Part 748 to complete the 
fields or blocks identified for this type of request. Classification 
Requests submitted on Form BIS-748P must be sent to BIS at one of the 
addresses preprinted on the form. Related documents submitted in 
connection with these requests must be submitted as ``PDF'' files if 
the request is submitted via SNAP+. If the document contains text, the 
file must be text searchable.
    (1) * * * Unless BIS has authorized paper filing pursuant to Sec.  
748.1(e) of the EAR, the documents must be in ``PDF'' format and, if 
they contain text, be text searchable.
    (2) When submitting a Classification Request, you must provide the 
name of a contact person, telephone number, facsimile number, if 
available, and specify that you are seeking a Classification Request in 
the designated fields or blocks on the electronic form or the BIS-748P. 
You must provide a recommended classification in the designated field 
or block and explain the basis for your recommendation based on the 
technical parameters specified in the appropriate ECCN, if any, in the 
``additional information'' field or block. Describe in the ``additional 
information'' field or block, any ambiguities or deficiencies that 
could affect the accuracy of your recommended classification.
    (c) * * *
    (2) * * *
    (iii) The Export Control Classification Number or, if appropriate, 
EAR99 for each item; and
* * * * *
    11. In Sec.  748.4, revise the third and fourth sentence of 
paragraph (b)(1), and revise paragraphs (b)(2)(ii) and (g) to read as 
follows:


Sec.  748.4  Basic guidance related to applying for a license.

* * * * *
    (b) Disclosure of parties on license applications and the power of 
attorney. (1) Disclosure of parties. * * * If there is any doubt about 
which persons should be named as parties to the transaction, the 
applicant must disclose the names of all such persons and the functions 
to be performed by each in the ``additional information'' field of the 
electronic application or block of the BIS-748P Multipurpose 
Application form. Note that when the foreign principal party in 
interest is the ultimate consignee or end-user, the name and address 
need not be repeated in the ``additional information'' field or block. 
See ``Parties to the transaction'' in Sec.  748.5 of this part.
    (2) * * *
    (i) * * *
    (ii) Application. Agents who are required to obtain a power of 
attorney or other written authorization under this section must select 
``Third Party'' when registering to use the SNAP+ system. When 
completing applications, whether electronically or on the BIS-748P 
Multipurpose Application Form, the agent must select ``other'' in the 
``documents on file with applicant'' field or block and insert 
``748.4(b)(2)'' in the Additional Information field or block to 
indicate that the power of attorney or other written authorization is 
on file with the agent. See Sec.  758.3(d) of the EAR for power of 
attorney requirement, and see also part 762 of the EAR for 
recordkeeping requirements.
* * * * *
    (g) Resubmission. If a license application is returned without 
action to you by BIS or your application represents a transaction 
previously denied by BIS, and you want to resubmit the license 
application, a new license application must be completed in accordance 
with the instructions contained in Supplement No. 1 to part 748. Cite 
the Application Control Number on your original application in the 
``Resubmission Application Control Number'' field or block on the new 
license application.
* * * * *
    12. In Sec.  748.5, revise the introductory paragraph and paragraph 
(b) to read as follows:


Sec.  748.5  Parties to the transaction.

    The following parties may be entered on the export license 
application or reexport license application. The definitions, which 
also appear in part 772 of the EAR, are set out here for your 
convenience to assist you in filling out your application correctly.
    (a) * * *
    (b) Other party authorized to receive license. The person 
authorized by the applicant to receive the license. If a person and 
address are listed in ``Other Party Authorized to Receive License'' 
field or block of the SNAP+ data entry screen or the BIS-748P 
Multipurpose Application Form, the Bureau of Industry and Security will 
send the license to that person instead of the applicant. Designation 
of another party to receive the license does not alter the 
responsibilities of the applicant, licensee or exporter.
* * * * *
    13. In Sec.  748.6, revise paragraphs (a), (e), and the last 
sentence of paragraph (g) to read as follows:


Sec.  748.6  General instructions for license applications.

    (a) Form and instructions. An application for a license, whether to 
export or reexport, must be submitted electronically via the SNAP+ 
system or, if BIS authorizes paper filing pursuant to Sec.  748.1(e) of 
the EAR, on Form BIS-748P, Multipurpose Application (revised June 15, 
1996 or later), and Form BIS-748P-A, Item Appendix, and Form BIS-748P-
B, End-User Appendix. Facsimiles or copies of these forms are not 
acceptable. Instructions for

[[Page 64017]]

preparing the application are in supplement No. 1 to this part 748.
* * * * *
    (e) Assembly and additional information. Any paper documents or 
correspondence relating to your paper license applications should bear 
the Application Control Number, and be stapled together. Any documents 
related to an application filed in SNAP+ must be ``attached'' to the 
application as a ``PDF'' file. If the document contains text, the PDF 
file must be text searchable. Where necessary, BIS may require you to 
submit additional information beyond that stated in the EAR confirming 
or amplifying information contained in your license application.
* * * * *
    (g) Request for extended license validity period. * * * To request 
an extended validity period, include justification for your request in 
the ``additional information'' field or block on the application.
    14. Revise Sec.  748.7 to read as follows:


Sec.  748.7  Electronic submission of license applications and other 
documents.

    (a) Scope. This section applies to electronic submissions of export 
and reexport license applications, license exception notifications, 
encryption review requests, and Classification Requests. All such 
electronic submissions must be made through the Simplified Network 
Application Processing (SNAP+) system.
    (b) Registration Procedures. (1) Procedures for parties not 
authorized to use SNAP+ prior to [implementation date of SNAP+]. 
Parties who were not authorized to use SNAP+ on [implementation date of 
SNAP+] must begin the application process electronically at [Web site 
URL to be announced in the final rule] and must supply the information 
listed in paragraphs (b)(1)(i) through (b)(1)(viii) of this section. To 
complete the application process, the SNAP+ applicant must print the 
document that is generated by the on-line registration process on the 
SNAP+ applicant's letterhead, and the SNAP+ applicant's designated 
official must sign it and submit it to BIS at the address printed on 
the document. BIS will notify the SNAP+ applicant via e-mail at the e-
mail address of the designated official as entered on the on-line 
registration form of its decision as to whether the applicant may file 
applications via SNAP+. The following information must be supplied:
    (i) Name of SNAP+ applicant;
    (ii) Address of SNAP+ applicant;
    (iii) The SNAP+ applicant's ``organization type,'' i.e., whether 
the applicant is an individual or industry (industry means any entity 
other than an individual);
    (iv) The SNAP+ applicant's ``industry role'', i.e., whether it is 
an exporter or an agent for a principal party in interest who is 
required to have a power of attorney or other written authorization by 
Sec.  748.4(b)(2)(i) of the EAR (such an agent is designated as a 
``third party'' in SNAP+);
    (v) The SNAP+ applicant's employer identification number, if the 
SNAP+ applicant's organization type is ``industry'' and the SNAP+ 
applicant is located in the Untied States;
    (vi) The name, telephone number, facsimile number (optional), and 
e-mail address of the SNAP+ applicant's ``designated official;'' and
    (vii) The name, telephone number, facsimile number (optional), e-
mail address, user name and initial password of the SNAP+ applicant's 
initial organization administrator.
    (2) Procedures for parties authorized to use SNAP prior to 
[implementation date of SNAP+]. Parties authorized to use SNAP prior to 
[implementation date of SNAP+] will be notified in writing by BIS of 
the date on which BIS will convert their accounts to SNAP+, the 
requirements regarding organization administrators and certifiers 
described in paragraph (c) of this section, and of the requirement that 
they log onto the SNAP+ Web site [URL to be included in the final rule] 
and provide the information described in subparagraphs (b)(1)(vi) and 
(b)(1)(vii) of this section.
    (c) Parties to the SNAP+ system, their roles and responsibilities. 
The roles and responsibilities in this section are in addition to any 
other roles or responsibilities imposed elsewhere in the EAR or other 
applicable law.
    (1) SNAP+ applicant. The SNAP+ applicant is the entity or 
individual that applies to use SNAP+ to submit documents to BIS.
    (2) SNAP+ user. The SNAP+ user is the entity or individual that has 
been authorized to submit documents to BIS via SNAP+. SNAP+ users who 
are registered as ``Third Parties'' to submit on behalf of other 
entities and SNAP+ users who wish to submit on behalf of their 
subsidiaries must register the name and address information of those 
other entities or subsidiaries on the designated entry screens in SNAP+ 
prior to submitting any documents on their behalf.
    (3) Designated official. The designated official is the individual 
who makes, on behalf of the SNAP+ applicant, the application to use the 
SNAP+ system.
    (4) Organization administrator. Organization administrator(s) are 
individuals who can enable other individuals to use the SNAP+ system, 
terminate an individual's access to the SNAP+ system, and who can 
assign or change the roles of those individuals, all on the SNAP+ 
user's behalf. The roles which an organization administrator may assign 
to an individual are organization administrator (who has all of the 
authorities in the SNAP+ system that the initial organization 
administrator has), certifier, stager and viewer.
    (5) Certifier. Certifiers are individuals who can submit to BIS, on 
behalf of the SNAP+ user, any type of application, form, report, 
document or other information that may be submitted via the SNAP+ 
system at the time of the submission, even if it was not available at 
the time that he/she became a certifier, and make representations to 
BIS on the SNAP+ user's behalf as to the truth, accuracy and 
completeness of the application, form, report, document or other 
information submitted.
    (i) BIS will treat submissions made in the SNAP+ system by any of 
the SNAP+ user's certifiers as representations by the SNAP+ user to the 
United States Government until the certifier's role is terminated in 
the SNAP+ system by one of the SNAP+ user's organization administrators 
or by BIS.
    (ii) Although BIS reserves the right to remove any individual or 
SNAP+ user from the SNAP+ system at its sole discretion, it is the 
responsibility of the SNAP+ user's organization administrator, and not 
BIS, to remove a certifier from SNAP+ or remove the role of certifier 
from an individual who ceases to be authorized by the SNAP+ user to 
certify submissions to BIS on the SNAP+ user's behalf.
    (6) Stager. A stager can enter information and documents into the 
SNAP+ system on behalf of the SNAP+ user for submission to BIS by a 
certifier.
    (7) Viewer. A viewer can view information and documents in the 
SNAP+ system, but may not enter any information or attach any documents 
to a submission.
    (8) Agents. An agent (regardless of whether it is required to have 
a power of attorney or other written authorization or whether its 
authority derives from a relationship described in Sec.  748.4(b)(2)(i) 
of the EAR) who submits via SNAP+ for another party must notify BIS 
immediately if his authority to do so is terminated. Such notification 
must be in writing and sent to:

Office of Exporter Services, P.O. Box 273, Washington, DC 20044, 
Attention: SNAP+.


[[Page 64018]]


    (d) Continuing requirements. The requirements of this paragraph 
relate to electronic filing authorizations issued prior to 
[implementation date of SNAP+] and continue in effect after that date.
    (i) No person may use, copy, steal or otherwise compromise a PIN 
assigned to another person; and no person may use, copy, steal or 
otherwise compromise the company identification number where the 
company has not authorized such person to have access to the number.
    (ii) Companies authorized to file electronically prior to [insert 
effective date of SNAP+] must maintain a log of submissions made under 
SNAP prior to that party being converted to SNAP+. The log may be 
maintained either manually or electronically, specifying the date and 
time of each electronic submission, the ECCNs of items included in each 
electronic submission, and the name of the employee or agent submitting 
the license application. This log may not be altered. Written 
corrections must be made in a manner that does not erase or cover 
original entries. If the log is maintained electronically, corrections 
may only be made as notations. This log must be maintained in 
accordance with the requirements of part 762 of the EAR.
    (e) Continuation of requirements for existing electronic filers 
prior to conversion to SNAP+. Entities and individuals authorized to 
file electronically prior to [implementation date of SNAP+] must 
continue to comply with procedures described in this paragraph until 
their accounts are converted to SNAP+.
    (i) Use of company identification numbers. The company may reveal 
the company identification number assigned to it by BIS only to the 
personal identification number (PIN) holders, their supervisors, 
employees, or agents of the company with a commercial justification for 
knowing the company identification number.
    (ii) Use of personal identification numbers. An individual who has 
been assigned a personal identification number (PIN) system may not:
    (A) Disclose the PIN to anyone;
    (B) Record the PIN either in writing or electronically;
    (C) Authorize another person to use the PIN; or
    (D) Use the PIN following termination by BIS or the SNAP user 
company of his or her authorization to do so.
    (iii) Other continuing requirements. (A) If a PIN is lost, stolen 
or otherwise compromised, the company and the PIN holder must report 
the loss, theft or compromise of the PIN immediately by telephoning BIS 
at (202) 482-0436. You must confirm this notification in writing within 
two business days to BIS at the address provided in paragraph (c)(8) of 
this section.
    (B) A company authorized to file electronically must immediately 
notify BIS whenever a PIN holder leaves the employ of the company or 
otherwise ceases to be authorized by the company to submit applications 
electronically on its behalf.
    (C) A company authorized to file electronically must notify BIS of 
any change in its name or address.
    15. In Sec.  748.9, revise paragraph (c) introductory text to read 
as follows:


Sec.  748.9  Support documents for license applications.

* * * * *
    (c) License applications requiring support documents. License 
applications requiring support by either a Statement by the Ultimate 
Consignee and Purchaser or an Import or End-User Certificate must 
indicate the type of support document obtained by placing an ``X'' in 
the appropriate box either in the designated field on the electronic 
form or, if filing a paper application, in the ``Documents Submitted 
with Application'' or the ``Documents on File with Applicant'' block. 
If the support document is an Import or End-User Certificate, you must 
also identify the originating country and number of the certificate in 
the designated block or field on your application. License applications 
submitted without so designating the document type, country, and 
document number will be returned without action unless satisfactory 
reasons for failing to obtain the document are supplied in the 
additional information block or field or in an attachment.
* * * * *
    16. In Sec.  748.10, revise paragraphs (f) and (g) to read as 
follows:


Sec.  748.10  Import and End-user Certificates.

* * * * *
    (f) Multiple license applications supported by one certificate. An 
Import or End-User Certificate may cover more than one purchase order 
and more than one item. Where the certificate includes items for which 
more than one license application will be submitted, you must include 
in the Additional Information field or block on your application, or in 
an attachment to each license application submitted against the 
certificate, the following certification:

    I (We) certify that the quantities of items shown on this 
license application, based on the Certificate identified in the 
Import/End-User Certificate Country and Number fields or blocks of 
this license application, when added to the quantities shown on all 
other license applications submitted to BIS based on the same 
Certificate, do not total more than the total quantities shown on 
the above cited Certificate.

    (g) Submission of Import and End-User Certificates. Applications 
for which a PRC End-User Certificate is required that are filed via 
SNAP+ must have a complete, accurate image of the original certificate 
attached electronically with the SNAP+ submission and the applicant 
must retain the original certificate for the time period specified in 
Sec.  762.6 of the EAR. Applications for which a PRC End-User 
Certificate is required that are filed on paper must be accompanied by 
the original certificate. All other certificates must be retained on 
file in accordance with the recordkeeping provisions of the part 762 of 
the EAR and not submitted with the license application.
* * * * *
    17. In Sec.  748.11 revise the first sentence of paragraph (a)(2) 
to read as follows:


Sec.  748.11  Statement by Ultimate Consignee and Purchaser.

    (a) * * *
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in the ``Additional 
Information'' field or block on the license application. * * *
* * * * *
    18. In Sec.  748.12, revise paragraph (d)(1) to read as follows:


Sec.  748.12  Special provisions for support documents.

* * * * *
    (d) Procedures for requesting an exception. (1) Requests for an 
exception must be submitted with the license application to which the 
request relates. Requests relating to more than one license application 
should be submitted with the first license application and referred to 
in the ``Additional Information'' field or block on any subsequent 
license application. The request for an exception must be on the 
applicant's letterhead and may be attached electronically to an 
application filed via SNAP+ or submitted as a paper attachment to an 
application filed on paper.
* * * * *
    19. In Sec.  748.14 revise the section heading, the third, fourth 
and fifth sentences of paragraph (b) introductory text, and revise 
paragraph (e) to read as follows:

[[Page 64019]]

Sec.  748.14  Import Certificate for firearms destined for Organization 
of American States (OAS) member countries.

    (b) Import Certificate Procedure. * * * All the recordkeeping 
provisions of part 762 of the EAR apply to this requirement. The 
applicant must clearly note the number and date of the Import 
Certificate or equivalent official document on all export license 
applications supported by that Certificate or equivalent official 
document. The applicant must also indicate in the ``Documents on File 
with Applicant'' field or block of the application that the Certificate 
or equivalent official document has been received and will be retained 
on file. * * *
* * * * *
    (e) Use of Import Certificate. An Import Certificate or equivalent 
official document may be used to support only one license application. 
The application must include the same items as those listed on the 
Import Certificate or equivalent official document.
* * * * *
    20. Revise supplement No. 1 to part 748 to read as follows:

Supplement No. 1 to Part 748--SNAP+, BIS-748p, BIS-748p-a: Item 
Appendix, and BIS-748p-b: End-User Appendix; Information Requirements

    All information must be entered in the designated fields in 
SNAP+ or, if you are submitting a paper application, legibly typed 
within the lines for each block or box, on the BIS-748P, BIS-748P-A, 
or BIS-748P-B forms except where a signature is required on the 
paper forms. On the paper forms, enter only one typed line of text 
per block or line. Except as noted below, you must supply the 
following information with export and reexport license applications, 
classification requests, License Exception AGR notices, and 
encryption review requests.
    Contact Person. This should be a person who can answer questions 
concerning the application, request or notice. In SNAP+, the contact 
person must be a person who has been authorized access to the SNAP+ 
system on behalf of the applicant as a viewer, stager, certifier or 
organization administrator. On paper applications, enter the name of 
the contact person.
    Telephone. In SNAP+, this information was entered when the 
contact person was given access to the system and need not be 
reentered with each application. For paper submissions, enter the 
telephone number of the contact person.
    Facsimile. In SNAP+, this information was entered when the 
contact person was given access to the system and need not be 
reentered with each application. For paper submissions, enter the 
facsimile number, if available, of the person who can answer 
questions concerning the application.
    Date of Application. In SNAP+, the computer automatically 
records the date of submission. For paper applications enter the 
current date.
    Type of Submission. If you are filing via SNAP+, select the type 
of submission from the work item menu as follows:
    For items in the United States that you wish to export or for 
technology or software (source code) that you wish to reveal to 
foreign nationals in the United States, select ``Export.'' See Sec.  
734.2(b)(9) for the definition of ``export'' that applies to 
encryption source code and object code software subject to the EAR.
    For items located outside the United States that you wish to 
move from one foreign country to another foreign country, or for 
technology or software (source code) that you wish to reveal to 
foreign nationals in a foreign country, select ``Reexport.''
    If you are requesting BIS to classify your item against the 
Commerce Control List (CCL), select ``Commodity Classification.''
    For License Exception AGR notifications, select ``License 
Exception AGR.''
    For Encryption Review requests select ``Commodity 
Classification'' and then select the check box labeled ``Encryption 
Item.''

    Note: You may not use SNAP+ to file Special Comprehensive 
License applications.

    If you are filing a paper form BIS-748P, place an ``X'' in the 
appropriate box in the ``Type of Application'' block as follows:
    For items located within the United States that you wish to 
export or for technology or software (source code) that you wish to 
reveal to foreign nationals in the United States mark the box 
labeled ``Export'' with an ``X.''
    For items located outside the United States that you wish to 
move from one foreign country to another foreign country, or for 
technology or software (source code) that you wish to reveal to 
foreign nationals in a foreign country, mark the box labeled 
``Reexport'' with an ``X.''
    If you are requesting BIS to classify your item against the 
Commerce Control List (CCL), place an ``X'' in the box labeled 
``Classification Request.''
    If you are submitting a Special Comprehensive License 
application in accordance with the procedures described in part 752 
of the EAR, place an ``X'' in the box labeled ``Special 
Comprehensive License.''
    If you are submitting a License Exception AGR notification, 
place an ``X'' in the box labeled ``Other.''
    If you are submitting an encryption review request place an 
``X'' in the box labeled ``Commodity Classification.''
    Documents submitted with Application. Review the documentation 
you are required to submit with your application in accordance with 
the provisions of part 748 of the EAR, and mark all applicable boxes 
with an ``X''.
    Mark the box labeled ``Foreign Availability'' with an ``X'' if 
you are submitting an assertion of foreign availability with your 
license application. See part 768 of the EAR for instructions on 
foreign availability submissions.
    Mark the box labeled ``Tech. Specs'' with an ``X'' if you are 
submitting descriptive literature, brochures, technical 
specifications, etc. with your application.
    Documents on File with Applicant. Certify that you have retained 
on file all applicable documents as required by the provisions of 
part 748 by placing an ``X'' in the appropriate box(es).
    Special Comprehensive License. You may not use SNAP+ if you are 
applying for a Special Comprehensive License. On the BIS-748P, 
complete this block only if you are submitting an application for a 
Special Comprehensive License in accordance with part 752 of the 
EAR.
    Special Purpose. If Supplement No. 2 to this part requires that 
you enter certain information about your items or transaction in 
this field or block, enter that information. If you are submitting 
an encryption review request for License Exception ENC (Sec.  740.17 
of the EAR) enter ``License Exception ENC.'' If you are submitting 
an encryption review request under the mass market provisions (Sec.  
742.15(b)(2) of the EAR), enter ``mass market encryption.'' If you 
are submitting an encryption review request for any other reason, 
enter ``encryption--other.''
    Resubmission Application Control Number. If your original 
application or License Exception AGR notice was denied or returned 
without action (RWA), provide the Application Control Number of the 
original application. This requirement does not apply to paper 
applications that were returned to you without being registered. You 
do not need to supply this information for Classification Requests 
or Encryption Review Requests.
    Replacement License Number. If you have received a license for 
identical items to the same ultimate consignee, but would like to 
make a modification that is not excepted in Sec.  750.7(c) of the 
EAR to the license as originally approved, enter the original 
license number. Include a statement in the additional information 
field or block regarding what changes you wish to make to the 
original license. You do not need to supply this information for 
Classification Requests or encryption review requests.
    Items Previously Exported. This information need be completed 
only for reexport license applications. Enter the license number, 
License Exception symbol (for exports under General Licenses, enter 
the appropriate General License symbol), or other authorization 
under which the items were originally exported, if known, in the 
``Items Previously Exported'' field or block on the BIS-748P form.
    Import/End-User Certificate. Enter the name of the country and 
number of the Import or End User Certificate obtained in accordance 
with the provisions of this part. You do not need to supply this 
information for Classification Requests or Encryption Review 
Requests.
    Applicant. In SNAP+, the following information about the 
applicant must be entered at the time of registration. On BIS-748P 
forms, it must be entered with each submission. Enter the 
applicant's name, street address, city, state/country, postal code, 
and, on applications for export licenses, the applicant's Employer 
Identification Number unless the applicant is an individual or is an 
agent who is required to obtain written authorization under

[[Page 64020]]

Sec.  748.4(b)(2) of the EAR to file on behalf of the applicant. 
Regardless of the method of filing, provide a complete street 
address. P.O. boxes are not acceptable. Refer to Sec.  748.5(a) of 
this part for a definition of ``applicant.'' The Employer 
Identification Number is assigned by the Internal Revenue Service 
for tax identification purposes. Accordingly, you should consult 
your company's financial officer or accounting division to obtain 
this number.
    Other Party Authorized to Receive License. If you would like BIS 
to transmit the approved license to another party designated by you, 
select ``Other Party Authorized to Receive License'' from the 
parties menu in SNAP+, or if filing on paper, fill in all 
information in the corresponding block. Complete all information, 
including name, street address, city, country, postal code and 
telephone number. Leave this space blank if the license is to be 
sent to the applicant. Designation of another party to receive the 
license does not alter the responsibilities of the applicant.
    Purchaser. If the purchaser is not also the ultimate consignee, 
enter the purchaser's complete name, street address, city, country, 
postal code, and telephone or facsimile number. Refer to Sec.  
748.5(c) of this part for a definition of ``purchaser.'' You must 
provide this information even if the purchaser is also the ultimate 
consignee. You do not need to supply this information for 
Classification Requests or Encryption Review Requests.
    Intermediate Consignee. Enter the intermediate consignee's 
complete name, street address, city, country, postal code, and 
telephone or facsimile number. Provide a complete street address, 
P.O. boxes are not acceptable. Refer to Sec.  748.5(d) of this part 
for a definition of ``intermediate consignee''. If your proposed 
transaction does not involve use of an intermediate consignee, enter 
``None''. If your proposed transaction involves more than one 
intermediate consignee, provide the same information in the 
additional information field or block for each additional 
intermediate consignee. You must provide this information even if 
the intermediate consignee is the purchaser. You do not need to 
supply this information for Classification Requests or Encryption 
Review Requests.
    Ultimate Consignee. This information must be supplied if you are 
submitting an export license application. Enter the ultimate 
consignee's complete name, street address, city, country, postal 
code, and telephone or facsimile number. Provide a complete street 
address, P.O. boxes are not acceptable. The ultimate consignee is 
the principal party in interest who receives the exported or 
reexported items. Refer to Sec.  748.5(e) of this part for a 
definition of ``ultimate consignee.'' A bank, freight forwarder, 
forwarding agent, or other intermediary may not be identified as the 
ultimate consignee unless it will receive the item for its own use. 
Government purchasing organizations are the sole exception to this 
requirement. A government purchasing organization may be identified 
as the ultimate consignee if the actual end user(s) is (are) an 
entity(ies) of the same government and the actual end-user and end-
use are clearly identified in the ``specific end use'' field or 
block or in the additional documentation attached to the 
application.
    If your application is for the reexport of items previously 
exported, enter the new ultimate consignee's complete name, street 
address, city, country, postal code, and telephone or facsimile 
number. Provide a complete street address, P.O. boxes are not 
acceptable. If your application involves a temporary export or 
reexport, the applicant should be shown as the ultimate consignee in 
care of a person or entity who will have control over the items 
abroad.
    You do not need to supply this information for Classification 
Requests or Encryption Review Requests.
    End-User. Enter this information only if the ultimate consignee 
you have identified is not the actual end-user. If there will be 
more than one end-user, select ``end-user'' from the parties menu in 
SNAP+, or if filing a paper application, use Form BIS-748P-B to 
identify each additional end-user. Enter each end-user's complete 
name, street address, city, country, postal code, and telephone or 
facsimile number. Provide a complete street address; P.O. boxes are 
not acceptable. You do not need to supply this information for 
Classification Requests or Encryption Review Requests.
    Original Ultimate Consignee. If your application involves the 
reexport of items previously exported, enter the original ultimate 
consignee's complete name, street address, city, country, postal 
code, and telephone or facsimile number. Provide a complete street 
address; P.O. boxes are not acceptable. The original ultimate 
consignee is the entity identified in the original application for 
export as the ultimate consignee or the party currently in 
possession of the items. You do not need to supply this information 
for Classification Requests or Encryption Review Requests.
    Specific End-Use. This information must be completed if you are 
submitting a license application. Provide a complete and detailed 
description of the end-use intended by the ultimate consignee and/or 
end-user(s). If you are requesting approval of a reexport, provide a 
complete and detailed description of the end-use intended by the new 
ultimate consignee or end-user(s) and indicate any other countries 
for which resale or reexport is requested. If additional space is 
necessary, use the ``additional information'' block on Form BIS-
748P-A or B. Be specific. Such general descriptions such as 
``research'', ``manufacturing'', or ``scientific uses'' are not 
acceptable. You do not need to supply this information for 
Classification Requests or Encryption Review Requests.
    ECCN or EAR99. Enter the Export Control Classification Number 
(ECCN) that corresponds to the item you wish to export or reexport 
or, if appropriate, EAR99. If you are submitting a Classification 
Request, provide a recommended classification for the item.
    CTP. You must furnish this information only if your application 
involves a digital computer or equipment containing a digital 
computer as described in Supplement No. 2 to this part. Instructions 
on calculating the CTP are contained in a Technical Note at the end 
of Category 4 in the CCL.
    Model Number. Enter the correct model number for the item.
    CCATS Number. If you have received a classification for this 
item from BIS, provide the CCATS number shown on the classification 
issued by BIS.
    Quantity. Identify the quantity to be exported or reexported, in 
terms of the ``Unit'' described in the ``Units'' paragraph of the 
ECCN entry. If the ``Unit'' for an item is ``$ value'', enter the 
quantity in units commonly used in the trade. You do not need to 
supply this information for Classification Requests or Encryption 
Review Requests.
    Units. The ``Unit'' paragraph within each ECCN will list a 
specific ``Unit'' for those items controlled by the entry. If an 
item is licensed in terms of ``$ value'', the unit of quantity 
commonly used in trade must also be shown. On license applications 
for items on the CCL, the unit must be supplied unless the ``Unit'' 
for the applicable ECCN reads ``N/A'' on the CCL. For License 
Exception AGR notifications use the unit of quantity commonly used 
in the trade. You do not need to supply this information for 
Classification Requests or Encryption Review Requests.
    Unit Price. Provide the fair market value of the items you wish 
to export or reexport. Round all prices to the nearest whole dollar 
amount. Give the exact unit price only if the value is less than 
$0.50. If normal trade practices make it impractical to establish a 
firm contract price, state in the ``Additional Information'' field 
or block, the precise terms upon which the price is to be 
ascertained and from which the contract price may be objectively 
determined. You do not need to supply this information for 
Classification Requests or Encryption Review Requests.
    Total Price. Provide the total price of the item(s) listed on 
the application or notification. You do not need to supply this 
information for Classification Requests or Encryption Review 
Requests.
    Manufacturer. Provide the name only of the manufacturer, if 
known, for each of the items you wish to export, reexport, or have 
BIS classify, if different from the applicant.
    Technical Description. Provide a description of the item(s) you 
wish to export, reexport, or have BIS classify. Provide details when 
necessary to identify the specific item(s); include all 
characteristics or parameters shown in any applicable ECCN using 
measurements identified in the ECCN (e.g., basic ingredients, 
composition, electrical parameters, size, gauge, grade, horsepower, 
etc.). These characteristics must be identified for the items in the 
proposed transaction when they are different from the 
characteristics described in promotional brochure(s).
    Total Application Dollar Value. Enter the total value of all 
items contained on the application in U.S. Dollars. The use of other 
currencies is not acceptable.
    Additional Information. Enter additional data pertinent to the 
application as required in the EAR. Include special certifications, 
names of parties of interest not disclosed elsewhere, explanation of 
documents attached, or any other additional information that you 
want BIS to consider in the

[[Page 64021]]

submission. Before entering information in this field or block, make 
sure that it is not required to be entered in one of the specific 
fields or blocks listed in this supplement.
    If you are submitting a Classification Request, use this field 
or block to explain why you believe the recommended ECCN that you 
entered in the ECCN field or block is appropriate. This explanation 
must contain an analysis of the item in terms of the technical 
control parameters specified in the appropriate ECCN, if any. 
Describe any ambiguities or deficiencies that could affect the 
accuracy of your recommended classification.
    If additional space is necessary, submit an ``attachment'' to 
your SNAP+ submission or, if filing on paper, use the ``Additional 
Information'' block on the Form BIS-748P-A or B.
    Signature. In SNAP+, electronically submitting an application, 
request, or notification operates as a signature. Paper forms must 
be manually signed in the designated block by the applicant or its 
duly authorized agent. The name and title of the person signing must 
be entered in the designated blocks. Rubber-stamped or electronic 
signatures are not acceptable. If the person signing is acting on 
behalf of an agent who is required under Sec.  748.4(b)(2) of the 
EAR to have written authorization from the applicant, enter the 
agent's name in the ``additional information'' block.

    21. In supplement No. 2 to part 748:
    a. Revise the introductory text;
    b. Revise paragraphs (a) introductory text and (b);
    c. Revise the second sentence of paragraph (c);
    d. Add paragraph (c)(3);
    e. Revise paragraphs (c)(1) and (2) introductory text and (2)(i);
    f. Revise paragraphs (d)(1) through (6);
    g. Revise paragraphs (e)(1) and (2);
    h. Revise paragraph (f);
    i. Revise paragraph (g)(2);
    j. Revise paragraphs (i)(1) and (2);
    k. Revise paragraphs (j)(1)(i) and (ii), (2)(i) and (ii), and 
(3)(i) and (ii);
    l. Revise the second sentence of paragraph (l);
    m. Revise paragraphs (m) introductory text, (o)(1), and (p); and
    n. Revise the first sentence of paragraph (r).
    The additions and revisions read as follows:

Supplement No. 2 to Part 748--Unique License Application Requirements

    In addition to the instructions contained in Supplement No. 1 to 
part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described in this supplement 
are addressed in your license application. All other fields or 
blocks not specifically identified in this supplement must be 
completed in accordance with the instructions contained in 
Supplement No. 1 to part 748. The term field relates to a data entry 
field on the SNAP+ entry screens, unless otherwise noted. The term 
``block'' used in this supplement relates to Forms BIS-748P, BIS-
748-A, and BIS-748-B.
    (a) Chemicals, medicinals, and pharmaceuticals. If you are 
submitting a license application for the export or reexport of 
chemicals, medicinals, and/or pharmaceuticals, the following 
information must be provided in the Technical Description field or 
block.
* * * * *
    (b) Communications intercepting devices. If you are required to 
submit a license application under Sec.  742.13 of this part, you 
must enter the words ``Communications Intercepting Device(s)'' in 
the ``Special Purpose'' field or block. The item you are requesting 
to export or reexport must be specified by name in the ``Technical 
Description'' field or block.
    (c) Digital computers, telecommunications, and related 
equipment. * * * License applications involving computers controlled 
by Category 4 must identify a Composite Theoretical Performance 
(CTP) in the ``CTP'' field or block. * * *
    (1) Requirements for license applications involving ``digital 
computers.'' If you are submitting a license application to export 
or reexport ``digital computers'' or equipment containing ``digital 
computers'' to destinations in Country Group D:1 (See Supplement No. 
1 to part 740 of the EAR), or to upgrade existing ``digital 
computer'' installations in those countries, you must include in 
addition to the CTP in the ``CTP'' field or block the following 
information:
    (i) * * *
    (ii) * * *
    (2) Additional requirements. License applications to export or 
reexport computers or related equipment must include:
    (i) A signed statement or, when filing via SNAP+, a facsimile 
thereof by a responsible representative of the end-user or the 
importing agency describing the end-use and certifying that the 
``digital computers'' or related equipment:
    (A) * * *
    (B) * * *
    (ii) * * *
    (iii) * * *
    (3) Recordkeeping. Applicants who submit facsimile statements to 
meet the requirements of paragraph (c)(2)(i) of this Supplement 2, 
must maintain the signed original for the period specified in Sec.  
762.6 of the EAR.
    (d) Gift parcels; consolidated in a single shipment. * * *
    (1) In the ``Purchaser'' field or block, enter the word 
``None'';
    (2) In the ``Ultimate Consignee'' field or block, enter the word 
``Various'' instead of the name and address of a single ultimate 
consignee;
    (3) In ``Specific End-Use'' field or block, enter the phrase 
``For personal use by recipients'';
    (4) In the ``Quantity'' field or block, indicate a reasonable 
estimate of the number of parcels to be shipped during the validity 
of the license;
    (5) In ``Technical Description'' field or block, enter the 
phrase ``Gift Parcels''; and
    (6) In ``Total Application Value'' field or block, indicate a 
reasonable value approximation proportionate to the quantity of gift 
parcels identified in the ``Quantity'' field or block.
    (e) Intransit through the United States. * * *
    (1) In the ``Special Purpose'' field or block, enter the phrase 
``Intransit Shipment'';
    (2) In the ``Additional Information'' field or block, enter the 
name and address of the foreign consignor who shipped the items to 
the United States and state the origin of the shipment;
* * * * *
    (f) Intransit outside of the United States. If you are 
submitting a license application based on General Prohibition No. 8 
stated in Sec.  736.2(b)(8) of the EAR and identification of the 
intermediate consignee in the country of unlading or transit is 
unknown at the time the license application is submitted, the 
country of unlading or transit must be shown in the ``Intermediate 
Consignee'' field or block.
    (g) Nuclear Nonproliferation items and end-uses.
* * * * *
    (2) License application requirements. Along with the required 
certification, you must include the following information in your 
license application:
    (i) In the ``Documents on File with Applicant'' field or block, 
place an ``X'' in the box titled ``Nuclear Certification'';
    (ii) In the ``Special Purpose'' field or block, enter the phrase 
``NUCLEAR CONTROLS'';
    (iii) In ``Specific End-Use'' field or block, provide, if known, 
the specific geographic locations of any installations, 
establishments, or sites at which the items will be used;
    (iv) In the ``Technical Description'' field or block, if 
applicable, include a description of any specific features of design 
or specific modifications that make the item capable of nuclear 
explosive activities, or of safeguarded or unsafeguarded nuclear 
activities as described in Sec.  744.2(a)(3) of the EAR; and
    (v) In the ``Additional Information'' field or block, if your 
license application is being submitted because you know that your 
transaction involves a nuclear end-use described in Sec.  744.2 of 
the EAR, you must fully explain the basis for your knowledge that 
the items are intended for the purpose(s) described in Sec.  744.2 
of the EAR. Indicate the specific end-use(s) the items will have in 
designing, developing, fabricating, or testing nuclear weapons or 
nuclear explosive devices or in designing, constructing, 
fabricating, or operating the facilities described in Sec.  
744.2(a)(3) of the EAR.
* * * * *
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. * * *
    (1) License applications for the export of parts and components. 
If you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products 
that will then be sent to designated third countries, you must enter 
in the ``Specific End-Use'' field or block, a description of end-use 
including a general description of the commodities to be 
manufactured, their typical end-use, and the countries where those 
commodities will be

[[Page 64022]]

marketed. The countries may be listed specifically or may be 
identified by Country Groups, geographic areas, etc.
    (2) License applications for the reexport of incorporated parts 
and components. If you are submitting a license application for the 
reexport of parts, components, or materials incorporated abroad into 
products that will be sent to designated third countries you must 
include the following information in your license application:
    (i) In the ``Special Purpose'' field or block, enter the phrase 
``Parts and Components'';
    (ii) In the ``Ultimate Consignee'' field or block, enter the 
name, street address, city and country of the foreign party who will 
be receiving the foreign-made product. If you are requesting 
approval for multiple countries or consignees enter ``Various'' in 
the ``Ultimate Consignee'' field or block and list the specific 
countries, Country Groups, or geographic areas in the ``Additional 
Information'' field or block;
    (iii) In the ``Original Ultimate Consignee'' field or block, 
enter the name, street address, city, and country of the foreign 
party who will be exporting the foreign-made product incorporating 
U.S. origin parts, components or materials;
    (iv) In the ``Specific End-Use'' field or block, describe the 
activity of the end-user identified in the ``End-User'' field or 
block or, if the ultimate consignee is also the end user, of the 
ultimate consignee identified in the ``Ultimate Consignee'' field or 
block, and the end-use of the foreign-made product. Indicate the 
final configuration if the product is intended to be incorporated in 
a larger system. If the end-use is unknown, state ``unknown'' and 
describe the general activities of the end-user;
    (v) In the ``Quantity'' field or block, specify the quantity for 
each foreign-made product. If this information is unknown, enter 
``Unknown'' in the Quantity field or block;
    (vi) In the ``Total Price'' field or block, enter the digit 
``0'' for each foreign-made product;
    (vii) In the ``Technical Description'' field or block, describe 
the foreign-made product that will be exported, specifying type and 
model or part number. Attach brochures or specifications, if 
available. Show as part of the description the unit value, in U.S. 
dollars, of the foreign-made product (if more than one foreign-made 
product is listed on the license application, specify the unit value 
for each type/model/part number). Also include a description of the 
U.S. content (including the applicable Export Control Classification 
Number(s)) and its value in U.S. dollars. If more than one foreign-
made product is identified on the license application, describe the 
U.S. content and specify the U.S. content value for each foreign-
made product. Also, provide sufficient support information to 
explain the basis for the stated values. To the extent possible, 
explain how much of the value of the foreign-made product represents 
foreign origin parts, components, or materials, as opposed to labor, 
overhead, etc. When the U.S. content varies and cannot be specified 
in advance, provide a range of percentage and value that would 
indicate the minimum and maximum U.S. content;
    (viii) Include separately in the ``Technical Description'' field 
or block a description of any U.S. origin spare parts to be 
reexported with the foreign-made product, if they exceed the amount 
allowed by Sec.  740.10 of the EAR. Enter the quantity, if 
appropriate, in the ``Quantity'' field or block. Enter the ECCN for 
the spare parts in the ``ECCN'' field or block and enter the value 
of the spare parts in the ``Total Price'' field or block;
    (ix) In the ``Total Application Dollar Value'' field or block, 
enter the digit ``0;''
    (x) If the foreign-made product is the direct product of U.S. 
origin technology that was exported or reexported subject to written 
assurance, a request for waiver of that assurance, if necessary, may 
be made in the ``Additional Information'' field or block. If U.S. 
origin technology will accompany a shipment to a country listed in 
Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of the 
EAR) describe in Additional Information field or block the type of 
technology and how it will be used.
    (j) Ship stores, plane stores, supplies, and equipment.
    (1) * * *
    (i) In the ``Ultimate Consignee'' field or block, enter the 
name, street address, city, and country of the shipyard where the 
vessel is being constructed;
    (ii) In ``Technical Description'' field or block, state the 
length of the vessel for a vessel under 12 m (40 ft) in length. For 
a vessel 12 m (40 ft) in length or over, provide the following 
information (if this information is unknown, enter ``unknown'' in 
this field or block): * * *
    (2) * * *
    (i) In the ``Ultimate Consignee'' field or block, enter the name 
and address of the plant where the aircraft is being constructed;
    (ii) In the ``Technical Description'' field or block, enter the 
following information (if this information is unknown, enter 
``unknown'' in this field or block): * * *
    (3) * * *
    (i) In the ``Ultimate Consignee'' field or block, enter the name 
of the owner, the name of the vessel, if applicable, and port or 
point where the items will be taken aboard;
    (ii) In the ``Ultimate Consignee'' field or block enter the 
following statement if, at the time of filing the license 
application, it is uncertain where the vessel or aircraft will take 
on the items, but it is known that the items will not be shipped to 
a country listed in Country Group D:1 or E:2 (see Supplement No. 1 
to part 740 of the EAR):
* * * * *
    (l) Reexports. * * * The license application must specify the 
country to which the reexport will be made in the ``Additional 
Information'' field or block. * * *
    (m) Robots. If you are submitting a license application for the 
export or reexport of items controlled by ECCNs 2B007 or 2D001 
(including robots, robot controllers, end-effectors, or related 
software) the following information must be provided in the 
``Additional Information'' field or block:
* * * * *
    (o) Technology--(1) License application instruction. If you are 
submitting a license application for the export or reexport of 
technology you must check the box labeled ``Letter of Explanation'' 
in the ``Documents Submitted with the Application'' block on the 
BIS-748P or select ``Letter of Explanation'' from the pull down menu 
in the ``Document Type'' field when attaching an electronic copy of 
a document to the SNAP+ form, enter the word ``Technology'' in the 
``Special Purpose'' field or block, leave the ``Quantity'' and 
``Manufacturer'' fields or blocks blank, and include a general 
statement that specifies the technology (e.g., blueprints, manuals, 
etc.) in the ``Technical Description'' field or block.
* * * * *
    (p) Temporary exports or reexports. If you are submitting a 
license application for the temporary export or reexport of an item 
(not eligible for the temporary exports and reexports provisions of 
License Exception TMP (see Sec.  740.9(a) of the EAR) you must 
include the following certification in the Additional Information 
field or block:
    The items described on this license application are to be 
temporarily exported (or reexported) for (state the purpose, e.g., 
demonstration, testing, exhibition, etc.), used solely for the 
purpose authorized, and returned to the United States (or 
originating country) as soon as the temporary purpose has ended, but 
in no case later than one year of the date of export (or reexport), 
unless other disposition has been authorized in writing by the 
Bureau of Industry and Security.
* * * * *
    (r) Encryption review requests. Enter in the Special Purpose 
field or block, ``License Exception ENC'' if you are submitting an 
encryption review request for license exception ENC (Sec.  740.17 of 
the EAR) or ``mass market encryption'' of you are submitting an 
encryption review request under the mass market encryption 
provisions (Sec.  742.15(b)(2) of the EAR). * * *

PART 754--[AMENDED]

    22. The authority citation for 15 CFR part 754 is revised to read 
as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 30 U.S.C. 185(s), 185(u); 42 
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 11912, 41 FR 
15825, 3 CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of August 7, 2003, 68 FR 47833, August 
11, 2003.

    23. In Sec.  754.2, revise paragraph (g)(1) to read as follows:


Sec.  754.2  Crude Oil.

* * * * *
    (g) Exports of certain California crude oil.
* * * * *
    (1) Applicants must submit their applications electronically via 
BIS's Simplified Network Application Process (SNAP+) system unless BIS 
has authorized the applicant to use the paper Form BIS-748P (See Sec.  
748.1(e) of the EAR). Paper applications must be

[[Page 64023]]

sent to: Office of Exporter Services, ATTN: Short Supply Program--
Petroleum, Bureau of Industry and Security, U.S. Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
* * * * *
    24. In Sec.  754.4, revise paragraphs (d)(1), (d)(2), and (d)(3) to 
read as follows:


Sec.  754.4  Unprocessed Western Red Cedar.

* * * * *
    (d) License Applications. (1) Applicants requesting to export 
unprocessed western red cedar must submit a properly completed 
application electronically via SNAP+ unless BIS has authorized the 
applicant to use the paper form BIS-748P, Multipurpose Application Form 
(see Sec.  748.1(e) of the EAR). An application to export unprocessed 
western red cedar must include such other documents as may be required 
by BIS, and the following statement, either in the ``Additional 
Information'' field or block of the application or as a separate signed 
statement from an authorized representative of the exporter (if 
submitted in the ``Additional Information'' field of the application, a 
separate signature is not required):

    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best 
of my knowledge and belief the (Quantity) (cubic meters or board 
feed scribner) of unprocessed western red cedar timber that 
(Exporter) proposes to export was not harvested from State or 
Federal lands under contracts entered into after October 1, 1979.

(Signature)

(Date)

    (2) ``Various'' may be entered in the ``Purchaser'' and ``Ultimate 
Consignee'' fields or blocks on the applications when there is more 
than one purchaser or ultimate consignee.
    (3) For each application submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period described in part 762 of the EAR, and produce or make available 
for inspection, the following:
    (i) * * *
    (ii) * * *
* * * * *
    25. In Sec.  754.5, revise paragraph (b)(2) to read as follows:


Sec.  754.5  Horses for Export by Sea

* * * * *
    b License policy. (1) * * *
    (2) Other license applications will be approved if BIS, in 
consultation with the Department of Agriculture, determines that the 
horses are not intended for slaughter. You must provide a statement in 
the ``Additional Information'' field or block of the license 
application, certifying that no horse under consignment is being 
exported for the purpose of slaughter.
    26. In supplement No. 2 to part 754, revise footnote number 2 to 
read as follows:

    \2\ For export licensing purposes, report commodities on export 
license applications in units of quantity indicated.

PART 772--[AMENDED]

    27. The authority citation for 15 CFR part 772 is revised to read 
as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
7, 2003, 68 FR 47833, August 11, 2003.

    28. Revise Sec.  772.1 by adding a sentence at the end of the 
definition of ``applicant'' as follows:


Sec.  772.1  Definitions.

* * * * *
    Applicant * * *
    This definition does not apply to the term ``SNAP+ applicant'' used 
in Sec.  748.7 of the EAR.
* * * * *

    Dated: November 3, 2003.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 03-28133 Filed 11-10-03; 8:45 am]
BILLING CODE 3510-33-P