[Federal Register Volume 69, Number 11 (Friday, January 16, 2004)]
[Rules and Regulations]
[Pages 2501-2503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-938]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 711

[Docket No. 0312113311-3311-01]
RIN 0694-AC97


Chemical Weapons Convention Regulations: Electronic Submission of 
Declarations and Reports Through the Web-Data Entry System for Industry 
(Web-DESI)

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) published an interim 
rule, on December 30, 1999, that established the Chemical Weapons 
Convention Regulations (CWCR) to implement the provisions of the 
Chemical Weapons Convention (CWC) affecting U.S. industry and other 
U.S. persons. The CWCR include requirements to report certain 
activities, involving Scheduled chemicals and Unscheduled Discrete 
Organic Chemicals, and to provide access for on-site verification by 
international inspectors of certain facilities and locations in the 
United States. This interim final rule amends the CWCR by adding 
instructions on how to obtain authorization from BIS to make electronic 
submissions of declarations and reports through the Web-Data Entry 
System for Industry (Web-DESI), which can be accessed on the CWC Web 
site at http://www.cwc.gov. The rule also establishes procedures for 
the assignment and use of passwords for facilities, plant sites and 
trading companies (USC password) and procedures for the assignment and 
use of Web-DESI user accounts.

DATES: This rule is effective January 16, 2004.

FOR FURTHER INFORMATION CONTACT: For questions of a general or 
regulatory nature, contact the Regulatory Policy Division, telephone: 
(202) 482-2440. For program information on declarations and reports, 
contact the Treaty Compliance Division, Office of Nonproliferation 
Controls and Treaty Compliance, telephone: (703) 605-4400.

SUPPLEMENTARY INFORMATION:

Background

    On April 25, 1997, the United States ratified the Convention on the 
Development, Production, Stockpiling and Use of Chemical Weapons and on 
Their Destruction, also known as the Chemical Weapons Convention (CWC 
or Convention). The CWC, which entered into force on April 29, 1997, is 
an arms control treaty with significant non-proliferation aspects. As 
such, the CWC bans the development, production, stockpiling or use of 
chemical weapons and prohibits States Parties to the CWC from assisting 
or encouraging anyone to engage in a prohibited activity. The CWC 
provides for declaration and inspection of all States Parties' chemical 
weapons and chemical weapon production facilities, and oversees the 
destruction of such weapons and facilities. To fulfill its arms control 
and non-proliferation objectives, the CWC also establishes a 
comprehensive verification scheme and requires the declaration and 
inspection of facilities that produce, process or consume certain 
``scheduled'' chemicals and unscheduled discrete organic chemicals, 
many of which have significant commercial applications. The CWC also 
requires States Parties to report exports and imports and to impose 
export and import restrictions on certain chemicals. These requirements 
apply to all entities under the jurisdiction and control of States 
Parties, including commercial entities and individuals. States Parties 
to the CWC, including the United States, have agreed to this 
verification scheme in order to provide transparency and to ensure that 
no State Party to the CWC is engaging in prohibited activities.
    The Chemical Weapons Convention Implementation Act of 1998 
(``Act'') (22 U.S.C. 6701 et seq.), enacted on October 21, 1998, 
authorizes the United States to require the U.S. chemical industry and 
other private entities to submit declarations, notifications and other 
reports and also to provide access for on-site inspections conducted by 
inspectors sent by the Organization for the Prohibition of Chemical 
Weapons (OPCW). Executive Order (E.O.) 13128 delegates authority to the 
Department of Commerce to promulgate regulations, obtain and execute 
warrants, provide assistance to certain facilities, and carry out 
appropriate functions to implement the CWC, consistent with the Act.
    On December 30, 1999, the Bureau of Industry and Security (BIS), 
U.S. Department of Commerce, published an interim rule that established 
the Chemical Weapons Convention Regulations (CWCR) (15 CFR parts 710-
722). The CWCR implemented the provisions of the CWC, affecting U.S. 
industry and U.S. persons, in accordance with the provisions of the 
Act. This interim final rule amends the CWCR by adding instructions on 
how to obtain authorization from BIS to make electronic submissions of 
declarations and reports through the Web-Data Entry System for Industry 
(Web-DESI), which can be accessed on the CWC Web site at http://www.cwc.gov. The rule also establishes procedures for the assignment 
and use of passwords for facilities, plant sites and trading companies 
(USC password) and procedures for the assignment and use of Web-DESI 
user accounts (user name and password).

Rulemaking Requirements

    1. This interim final rule has been determined to be not 
significant for purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall a person be subject to a penalty for 
failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act (PRA), unless that 
collection of information displays a current, valid OMB control number. 
This rule amends an existing collection of information authority 
approved under OMB Control No. 0694-0091. The public reporting burdens 
for the collection of information are estimated to average 10.6 hours 
for Schedule 1 Chemicals, 11.9 hours for Schedule 2 chemicals, 2.5 
hours for Schedule 3 chemicals, 5.3 for Unscheduled Discrete Organic 
Chemicals (UDOCs), and 0.17

[[Page 2502]]

hours for Schedule 1 notifications. The burden hours associated with 
completing a particular type of declaration or report package (e.g., 
Schedule 2 annual declaration on past activities) will change depending 
on the number of forms required to comply with the specific declaration 
or report requirement. Supplement 2 to parts 712, 713, 714, and 715 of 
the CWCR identifies the specific forms that must be included in each 
type of declaration or report package. The CWC Declaration and Report 
Handbook includes a ``Guide to Submission of Forms'' which also 
identifies the specific forms that must be included in a declaration or 
report package.
    BIS will use the information contained in declarations and reports 
submitted by U.S. persons to compile the U.S. National Industrial 
Declaration in order to meet our obligations under the Chemicals 
Weapons Convention (CWC). BIS will submit the U.S. National Industrial 
Declaration to the United States National Authority who will forward 
the Declaration to the Organization for the Prohibition of Chemical 
Weapons (OPCW) as required by the Convention.
    3. This rule does not contain policies with Federalism implications 
as this term is defined in Executive Order 13132.
    4. Pursuant to 5 U.S.C. 553(b)(B), the provisions of the 
Administrative Procedure Act requiring a prior notice and an 
opportunity for public comment are waived for good cause, because it is 
unnecessary to provide public notice and opportunity for comment. This 
regulation does not impose any new regulatory requirements or effect a 
substantive change to any existing regulatory requirement. Submission 
of documents through the Web-DESI system is voluntary and provided for 
the convenience of submitters. No other law requires that a notice of 
final rulemaking and an opportunity for public comment be given for 
this rule. Because a notice of final rulemaking and an opportunity for 
public comment are not required to be given for this rule under the 
Administrative Procedure Act or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable.

List of Subjects in 15 CFR Part 711

    Chemicals, Confidential business information, Reporting and 
recordkeeping requirements.

0
Accordingly, part 711 of the Chemical Weapons Convention Regulations is 
amended as follows:

PART 711--[AMENDED]

0
1. The authority citation for 15 CFR part 711 continues to read as 
follows:

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 34703.


0
2. Section 711.7 is added to read as follows:


Sec.  711.7  How to request authorization from BIS to make electronic 
submissions of declarations or reports.

    (a) Scope. This section provides an optional method of submitting 
declarations or reports. Specifically, this section applies to the 
electronic submission of declarations and reports required under the 
CWCR. If you choose to submit declarations and reports by electronic 
means, all such electronic submissions must be made through the Web-
Data Entry System for Industry (Web-DESI), which can be accessed on the 
CWC Web site at http://www.cwc.gov.
    (b) Authorization. If you or your company has a facility, plant 
site, or trading company that has been assigned a U.S. Code Number 
(U.S.C. Number), you may submit declarations and reports 
electronically, once you have received authorization from BIS to do so. 
An authorization to submit declarations and reports electronically may 
be limited or withdrawn by BIS at any time. There are no prerequisites 
for obtaining permission to submit electronically, nor are there any 
limitations with regard to the types of declarations or reports that 
are eligible for electronic submission. However, BIS may direct, for 
any reason, that any electronic declaration or report be resubmitted in 
writing, either in whole or in part.
    (1) Requesting approval to submit declarations and reports 
electronically. To submit declarations and reports electronically, you 
or your company must submit a written request to BIS at the address 
identified in Sec.  711.6 of the CWCR. Both the envelope and letter 
must be marked ``Attn: Electronic Declaration or Report Request.'' Your 
request should be on company letterhead and must contain your name or 
the company's name, your mailing address at the company, the name of 
the facility, plant site or trading company and its U.S. Code Number, 
the address of the facility, plant site or trading company (this 
address may be different from the mailing address), the list of 
individuals who are authorized to view, edit, or edit and submit 
declarations and reports on behalf of your company, and the telephone 
number and name and title of the official responsible for certifying 
that each individual listed in the request is authorized to view, edit, 
or edit and submit declarations and reports on behalf of you or your 
company. Additional information required for submitting electronic 
declarations and reports may be found on BIS's Web site at http://www.cwc.gov. Once you have completed and submitted the necessary 
certifications, you may be authorized by BIS to view, edit, or edit and 
submit declarations and reports electronically.
    Note to Sec.  711.7(b)(1): You must submit a separate request for 
each facility, plant site or trading company owned by your company 
(e.g., each site that is assigned a unique U.S. Code Number).
    (2) Assignment and use of passwords for facilities, plant sites and 
trading companies (U.S.C. password) and Web-DESI user accounts (user 
name and password).
    (i) Each person, facility, plant site or trading company authorized 
to submit declarations and reports electronically will be assigned a 
password (U.S.C. password) that must be used in conjunction with the 
U.S.C. Number. Each individual authorized by BIS to view, edit, or edit 
and submit declarations and reports electronically for a facility, 
plant site or trading company will be assigned a Web-DESI user account 
(user name and password) telephonically by BIS. A Web-DESI user account 
will be assigned to you only if your company has certified to BIS that 
you are authorized to act for it in viewing, editing, or editing and 
submitting electronic declarations and reports under the CWCR.
    Note to Sec.  711.7(b)(2)(i): When individuals must have access to 
multiple Web-DESI accounts, their companies must identify such 
individuals on the approval request for each of these Web-DESI 
accounts. BIS will coordinate with such individuals to ensure that the 
assigned user name and password is the same for each account.
    (ii) Your company may reveal the facility, plant site or trading 
company password (U.S.C. password) only to Web-DESI users with valid 
passwords, their supervisors, and employees or agents of the company 
with a commercial justification for knowing the password.
    (iii) If you are an authorized Web-DESI account user, you may not:
    (A) Disclose your user name or password to anyone;
    (B) Record your user name or password, either in writing or 
electronically;
    (C) Authorize another person to use your user name or password; or

[[Page 2503]]

    (D) Use your user name or password following termination, either by 
BIS or by your company, of your authorization or approval for Web-DESI 
use.
    (iv) To prevent misuse of the Web-DESI account:
    (A) If Web-DESI user account information (i.e., user name and 
password) is lost, stolen or otherwise compromised, the company and the 
user must report the loss, theft or compromise of the user account 
information, immediately, by calling BIS at (703) 235-1335. Within two 
business days of making the report, the company and the user must 
submit written confirmation to BIS at the address provided in Sec.  
711.6 of the CWCR.
    (B) Your company is responsible for immediately notifying BIS 
whenever a Web-DESI user leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit declarations and 
reports electronically on its behalf.
    (v) No person may use, copy, appropriate or otherwise compromise a 
Web-DESI account user name or password assigned to another person. No 
person, except a person authorized access by the company, may use or 
copy the facility, plant site or trading company password (U.S.C 
password), nor may any person steal or otherwise compromise this 
password.
    (c) Electronic submission of declarations and reports.  (1) General 
instructions. Upon submission of the required certifications and 
approval of the company's request to use electronic submission, BIS 
will provide instructions on both the method for transmitting 
declarations and reports electronically and the process for submitting 
required supporting documents, if any. These instructions may be 
modified by BIS from time to time.
    (2) Declarations and reports. The electronic submission of a 
declaration or report will constitute an official document as required 
under parts 712 through 715 of the CWCR. Such submissions must provide 
the same information as written declarations and reports and are 
subject to the recordkeeping provisions of part 720 of the CWCR. The 
company and Web-DESI user submitting the declaration or report will be 
deemed to have made all representations and certifications as if the 
submission were made in writing by the company and signed by the 
certifying official. Electronic submission of a declaration or report 
will be considered complete upon transmittal to BIS.
    (d) Updating. A company approved for electronic submission of 
declarations or reports under Web-DESI must promptly notify BIS of any 
change in its name, ownership or address. If your company wishes to 
have an individual added as a Web-DESI user, your company must inform 
BIS and follow the instructions provided by BIS. Your company should 
conduct periodic reviews to ensure that the company's designated 
certifying official and Web-DESI users are individuals whose current 
responsibilities make it necessary and appropriate that they act for 
the company in either capacity.

    Dated: January 12, 2004.
Peter Lichtenbaum,
Assistant Secretary, for Export Administration.
[FR Doc. 04-938 Filed 1-15-04; 8:45 am]
BILLING CODE 3510-33-P