[Federal Register Volume 69, Number 94 (Friday, May 14, 2004)]
[Rules and Regulations]
[Pages 26766-26768]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-11059]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 736

[Docket No. 040108007-4007-01]
RIN 0694-AC 99


General Order Implementing Syria Accountability and Lebanese 
Sovereignty Act of 2003

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security is amending the Export 
Administration Regulations (EAR) by adding new General Order No. 2 to 
Supplement No. 1, Part 736. Section 5(a)(1) of the Syria Accountability 
and Lebanese Sovereignty Act of 2003 (the SAA), requires a prohibition 
on the export to Syria of all items on the Commerce Control List (CCL). 
The SAA also requires that the President impose two or more of the six 
additional sanctions set forth in the SAA. One of the additional 
sanctions chosen by the President prohibits the export to Syria of 
products of the United States, other than food and medicine. This Order 
is issued consistent with Executive Order 13338 of May 11, 2004, which 
implements the SAA.

DATES: Effective Date: This rule is effective May 14, 2004.

ADDRESSES: Although there is no public comment period, written comments 
on this rule may be sent to Sheila Quarterman, Office of Exporter 
Services, Regulatory Policy Division, Bureau of Industry and Security, 
Department of Commerce, P.O. Box 273, Washington, DC 20044, or e-mail: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
Exporter Services, Bureau of Industry and Security, Department of 
Commerce, P.O. Box 273, Washington, DC 20044, or Telephone: (202) 482-
0436.

SUPPLEMENTARY INFORMATION: 

[[Page 26767]]

Background

    Section 5(a)(1) of the Syria Accountability and Lebanese 
Sovereignty Act of 2003 (Pub. L. 108-175, codified as a note to 22 
U.S.C. 2151) (the SAA), requires a prohibition on the export to Syria 
of all items on the Commerce Control List (15 CFR 774) (CCL). The SAA 
also requires that the President impose two or more of the six 
additional sanctions set forth in sections 5(a)(2)(A)-(F). One of the 
additional sanctions chosen by the President and described in section 
5(a)(2)(A) is a prohibition on the export to Syria of products of the 
United States, other than food and medicine. The President has also 
exercised national security waiver authority pursuant to section 5(b) 
of the SAA for certain transactions. This Order is issued consistent 
with Executive Order 13338 of May 11, 2004, which implements the SAA.
    Pursuant to this General Order, exports and reexports of all items 
subject to the Export Administration Regulations (EAR) (15 CFR 730 et 
seq.), except food and medicine classified as EAR99 and ``deemed 
export'' and ``deemed reexport'' of EAR99 technology or source code, 
require a license to Syria (medicine is defined in part 772 of the 
EAR). All license applications for exports or reexports to Syria are 
subject to a general policy of denial, other than transactions 
described below.
    BIS may consider, on a case-by-case basis, license applications for 
exports and reexports of items necessary to carry out the President's 
constitutional authority to conduct U.S. foreign affairs and as 
Commander-in-Chief, including those exports and reexports of items 
necessary for the performance of official functions by United States 
Government personnel abroad. Pursuant to the President's exercise of 
the national security waiver authority set forth in section 5(b) of the 
SAA, BIS may also consider the following license applications on a 
case-by-case basis: items in support of activities, diplomatic or 
otherwise, of the United States Government (to the extent that 
regulation of such exportation or reexportation would not fall within 
the President's constitutional authority to conduct the nation's 
foreign affairs); medicine (on the CCL) and medical devices (both as 
defined in part 772 of the EAR); parts and components intended to 
ensure the safety of civil aviation and the safe operation of 
commercial passenger aircraft; aircraft chartered by the Syrian 
Government for the transport of Syrian Government officials on official 
Syrian Government business; telecommunications equipment and associated 
computers, software and technology; and items in support of United 
Nations operations in Syria. The total dollar value of each approved 
license for aircraft parts for flight safety normally will be limited 
to no more than $2 million over the 24-month standard license term, 
except in the case of complete overhauls. In addition, consistent with 
part 734 of the EAR, the following are not subject to this General 
Order: informational materials in the form of books and other media; 
publicly available software and technology; and technology exported in 
the form of a patent application or an amendment, modification, or 
supplement thereto or a division thereof (see 15 CFR 734.3(b)(1)(v) and 
734.3(b)(2) and (3)).
    This General Order makes inapplicable for Syria all License 
Exceptions set forth in part 740 of the EAR, except as described below. 
Pursuant to the President's exercise of the national security waiver 
authority in section 5(b) of the SAA, the following License Exceptions, 
or portions thereof, are available: TMP (15 CFR 740.9(a)(2)(viii) only) 
for items for use by the news media; GOV (15 CFR 740.11(b)(2)(i) and 
(ii) only) for items for personal or official use by personnel and 
agencies of the U.S. Government; TSU (15 CFR 740.13(a), (b), and (c) 
only) for operation technology and software, sales technology and 
software updates; BAG (15 CFR 740.14) for exports of items by 
individuals leaving the United States as personal baggage; and AVS (15 
CFR 740.15(a)(4) only) for the reexport of civil aircraft on temporary 
sojourn to Syria. Shotguns and shotgun shells described in 15 CFR 
740.14(e) are not permitted to be exported to Syria under License 
Exception BAG.
    This General Order also revokes the authority to export or reexport 
to Syria under existing licenses. However, exporters may submit new 
license applications for any transaction that they believe is eligible 
for case-by-case review based on this General Order. License conditions 
requiring written U.S. Government authorization for the reexport, 
transfer, or resale of items already exported or reexported remain in 
effect, and requests for BIS authorization to reexport, transfer, or 
sell such items will require interagency approval.
    License applications for ``deemed exports'' and ``deemed 
reexports'' as described in 15 CFR 734.2(b) will be reviewed on a case-
by-case basis. ``Deemed exports'' and ``deemed reexports'' involving or 
technology or source code subject to the EAR but not listed on the CCL 
do not require a license to Syrian foreign nationals.
    Finally, items that are on dock for loading, on lighter, laden 
aboard an exporting carrier or en route aboard a carrier to a port of 
export on May 14, 2004, remain subject to the licensing rules 
applicable to such items as of May 13, 2004. Any such items not 
actually exported or reexported before midnight May 28, 2004, may be 
exported or reexported only if authorized pursuant to this General 
Order.
    This rule has been determined to be economically significant under 
Executive Order 12866, because it meets the criterion of having $100 
million or more in annual economic impact. In calendar year 2003, U.S. 
exports to Syria, excluding food and medicine, totaled approximately 
$140 million.

Rulemaking Requirements

    1. This final rule has been determined to be economically 
significant for purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
contains a collection of information subject to the requirements of the 
PRA. This collection has been approved by OMB under Control Number 
0694-0088 (Multi-Purpose Application), which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. Send 
comments regarding this burden estimate or any other aspect of this 
collection of information, including suggestions for reducing the 
burden, to David Rostker, Office of Management and Budget (OMB), by e-
mail to [email protected], or by fax to (202)395-7285; and to 
the Regulatory Policy Division, Bureau of Industry and Security, 
Department of Commerce, P.O. Box 273, Washington, DC 20044.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (Sec. 5 U.S.C. 553 (a)(1)). Further, no 
other law requires that a notice of

[[Page 26768]]

proposed rulemaking and an opportunity for public comment be given for 
this final rule. Because a notice of proposed rulemaking and an 
opportunity for public comment are not required to be given for this 
rule under 5 U.S.C. 553 or by any other law, the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Therefore, this regulation is issued in final form. 
Although there is no public comment period, public comments on this 
regulation are welcome on a continuing basis. Comments should be 
submitted to Sheila Quarterman, Regulatory Policy Division, Bureau of 
Industry and Security, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.
    5. This rule has been determined to be major for purposes of the 
Congressional Review Act (5 U.S.C. 801 et seq.). However, pursuant to 
the Congressional Review Act (5 U.S.C. 808(2)), the Bureau of Industry 
and Security has determined that the delay in the effective date 
generally required by the Congressional Review Act is waived for good 
cause. In particular, the Bureau has determined that a delay is 
impracticable because a delay in effective date would allow for the 
shipment of goods during that delay that would be antithetical to the 
objective of this rule.

List of Subjects in 15 CFR Part 736

    Exports, Foreign trade.


0
Accordingly, part 736 of the Export Administration Regulations (15 CFR 
parts 730-799) is amended as follows:

PART 736--[AMENDED]

0
1. The authority citation for part 736 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 2151 note; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; E.O. 13338 of May 11, 2004; Notice of 
August 7, 2003, 68 FR 47833, 3 CFR, 2003 Comp., p. 328; Notice of 
October 29, 2003, 68 FR 62209, 3 CFR, 2003 Comp., p. 347.


0
2. Supplement No. 1 to part 736 is amended by adding General Order No. 
2 to read as follows:

Supplement No. 1 to Part 736--General Orders

* * * * *
    General Order No. 2 of May 14, 2004; sections 5(a)(1) and 
5(a)(2)(A) of the Syria Accountability and Lebanese Sovereignty Act 
of 2003 (Public Law 108-175, codified as a note to 22 U.S.C. 2151) 
(the SAA), require (1) a prohibition on the export to Syria of all 
items on the Commerce Control List (in 15 CFR part 774)(CCL) and (2) 
a prohibition on the export to Syria of products of the United 
States, other than food and medicine. The President has also 
exercised national security waiver authority pursuant to Section 
5(b) of the SAA for certain transactions. This Order is issued 
consistent with Executive Order 13338 of May 11, 2004, which 
implements the SAA.
    (a) License requirements. Effective May 14, 2004, a license is 
required for export or reexport to Syria of all items subject to the 
EAR, except food and medicine classified as EAR99 (medicine is 
defined in part 772 of the EAR). A license is required for the 
``deemed export'' and ``deemed reexport,'' as described in Sec.  
734.2(b) of the EAR, of any technology or source code on the 
Commerce Control List (CCL) to a Syrian foreign national. ``Deemed 
exports'' and ``deemed reexports'' involving technology or source 
code subject to the EAR but not listed on the CCL do not require a 
license to Syrian foreign nationals.
    (b) Revocation of Authority to Export under Existing Licenses. 
Effective May 14, 2004, the authority to export or reexport to Syria 
under existing licenses is hereby revoked (see savings clause in 
paragraph (e) of this General Order). License conditions requiring 
written U.S. Government authorization for the reexport, transfer, or 
resale of items already exported or reexported remain in effect, and 
requests for BIS authorization to reexport, transfer, or sell such 
items will require interagency approval.
    (c) License Exceptions. Effective May 14, 2004, no License 
Exceptions to the license requirements set forth in paragraph (a) of 
this General Order are available for exports or reexports to Syria, 
except the following:
    (1) TMP for items for use by the news media as set forth in 
Sec.  740.9(a)(2)(viii) of the EAR,
    (2) GOV for items for personal or official use by personnel and 
agencies of the U.S. Government as set forth in Sec.  
740.11(b)(2)(i) and (ii) of the EAR,
    (3) TSU for operation technology and software, sales technology 
and software updates pursuant to the terms of Sec.  740.13(a), (b), 
or (c) of the EAR,
    (4) BAG for exports of items by individuals leaving the United 
States as personal baggage pursuant to the terms of Sec.  740.14 (a) 
through (d) only of the EAR, and
    (5) AVS for the temporary sojourn of civil aircraft reexported 
to Syria pursuant to the terms of Sec.  740.15(a)(4) of the EAR.
    (d) Licensing policy. All license applications for export or 
reexport to Syria are subject to a general policy of denial. License 
applications for ``deemed exports'' and ``deemed reexports'' of 
technology and source code will be reviewed on a case-by-case basis. 
BIS may consider, on a case-by-case basis, license applications for 
exports and reexports of items necessary to carry out the 
President's constitutional authority to conduct U.S. foreign affairs 
and as Commander-in-Chief, including those exports and reexports of 
items necessary for the performance of official functions by the 
United States Government personnel abroad. BIS may also consider the 
following license applications on a case-by-case basis: items in 
support of activities, diplomatic or otherwise, of the United States 
Government (to the extent that regulation of such exportation or 
reexportation would not fall within the President's constitutional 
authority to conduct the nation's foreign affairs); medicine (on the 
CCL) and medical devices (both as defined in part 772 of the EAR); 
parts and components intended to ensure the safety of civil aviation 
and the safe operation of commercial passenger aircraft; aircraft 
chartered by the Syrian Government for the transport of Syrian 
Government officials on official Syrian Government business; 
telecommunications equipment and associated computers, software and 
technology; and items in support of United Nations operations in 
Syria. The total dollar value of each approved license for aircraft 
parts for flight safety normally will be limited to no more than $2 
million over the 24-month standard license term, except in the case 
of complete overhauls. In addition, consistent with part 734 of the 
EAR, the following are not subject to this General Order: 
informational materials in the form of books and other media; 
publicly available software and technology; and technology exported 
in the form of a patent application or an amendment, modification, 
or supplement thereto or a division thereof (see 15 CFR 
734.3(b)(1)(v), (b)(2) and (b)(3)).
    (e) Savings Clause. Items that are on dock for loading, on 
lighter, laden aboard an exporting carrier or en route aboard a 
carrier to a port of export on May 14, 2004, shall be subject to the 
licensing rules applicable to such items as of May 13, 2004. Any 
such items not actually exported or reexported before midnight May 
28, 2004, may be exported or reexported only if authorized pursuant 
to this General Order.
* * * * *

    Dated: May 11, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-11059 Filed 5-12-04; 10:14 am]
BILLING CODE 3510-33-P