[Federal Register Volume 69, Number 225 (Tuesday, November 23, 2004)]
[Notices]
[Pages 68127-68128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25950]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 041025291-4291-01]


Impact of Implementation of the Chemical Weapons Convention on 
Commercial Activities Involving ``Schedule 1'' Chemicals Through 
Calendar Year 2004

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice of inquiry.

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SUMMARY: The Bureau of Industry and Security (BIS) is seeking public 
comments on the impact that implementation of the Chemical Weapons 
Convention has had on commercial activities involving ``Schedule 1'' 
chemicals through calendar year 2004. This notice of inquiry is part of 
an effort to collect information to assist in the preparation of the 
annual certification required under Condition 9 of Senate Resolution 
75, April 24, 1997, in which the Senate gave its advice and consent to 
the ratification of the Chemical Weapons Convention.

DATES: Comments are due December 21, 2004.

ADDRESSES: You may submit comments by any of the following methods:
     E-mail: [email protected]. Include the phrase ``Schedule 
1 Notice of Inquiry'' in the subject line;
     Fax: (202) 482-3355 (Attn: Willard Fisher);
     Mail or Hand Delivery/Courier: Willard Fisher, U.S. 
Department of Commerce, Bureau of Industry and Security, Regulatory 
Policy Division, 14th Street & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: For questions on the Chemical Weapons 
Convention requirements for ``Schedule 1'' chemicals, contact Larry 
Denyer, Treaty Compliance Division, Office of Nonproliferation and 
Treaty Compliance, Bureau of Industry and Security, U.S. Department of 
Commerce, Phone: (703) 605-4400. For questions on the submission of 
comments, contact Willard Fisher, Regulatory Policy Division, Office of 
Exporter Services, Bureau of Industry and Security, U.S. Department of 
Commerce, Phone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    In its resolution to advise and consent to the ratification of the 
Chemical Weapons Convention (Convention) (S. Res. 75, April 24, 1997), 
the Senate included several conditions. Condition 9 of Senate 
Resolution 75, titled ``Protection of Advanced Biotechnology,'' 
provides that the President shall certify to the Congress on an annual 
basis that ``* * * the legitimate commercial activities and interests 
of chemical, biotechnology, and pharmaceutical firms in the United 
States are not being significantly harmed by the limitations of the 
Convention on access to, and production of, those chemicals and toxins 
listed in Schedule 1* * *''.
    In 2000, 2001, 2002, and 2003, BIS solicited comments from the 
public on the commercial impact of the Convention's Schedule 1 
limitations, and received no comments. In light of this, the President 
certified to Congress that firms were not significantly harmed by the 
Convention's Schedule 1 limitations. The Bureau of Industry and 
Security is collecting data to assist in determining the impact, if 
any, that the implementation of the Convention's requirements have had 
on commercial ``Schedule 1'' activities through calendar year 2004.
    On July 8, 2004, President Bush, by Executive Order 13346, 
delegated his authority to make the annual certification to the 
Secretary of Commerce.

[[Page 68128]]

    The Convention on the Prohibition of the Development, Production, 
Stockpiling, and Use of Chemical Weapons and Their Destruction, 
commonly called the Chemical Weapons Convention (CWC), is an 
international arms control treaty that establishes the Organization for 
the Prohibition of Chemical Weapons (OPCW) to implement the 
verification provisions of the treaty. The CWC imposes a number of 
obligations on countries that have ratified the Convention (States 
Parties), including enactment of legislation to prohibit the 
production, storage, and use of chemical weapons, and establishment of 
a National Authority for liaison with the OPCW and other States 
Parties. The CWC also requires States Parties to implement a 
comprehensive data declaration and inspection regime to provide 
transparency and to verify that both the public and private sectors of 
States Parties are not engaged in activities prohibited under the CWC.
    Schedule 1'' chemicals are those toxic chemicals and precursors 
identified in the Convention as posing a high risk to the object and 
purpose of the Convention. The ``Schedule 1'' chemicals are set forth 
in the Convention's ``Annex on Chemicals,'' as well as in Supplement 
No. 1 to part 712 of the Chemical Weapons Convention Regulations (15 
CFR 712).
    The ``Schedule 1'' provisions of the Convention that affect 
commercial activities are implemented through part 712 of the Chemical 
Weapons Convention Regulations and parts 742 and 745 of the Export 
Administration Regulations, both administered by the Bureau of Industry 
and Security. These regulations:
    (1) Prohibit the import of ``Schedule 1'' chemicals from States not 
Party to the Convention (15 CFR 712.2(b));
    (2) Require annual declarations by certain facilities engaged in 
the production of ``Schedule 1'' chemicals in excess of 100 grams 
aggregate per calendar year (i.e., declared ``Schedule 1'' facilities) 
for purposes not prohibited by the Convention (15 CFR 712.5);
    (3) Require government approval of ``declared Schedule 1'' 
facilities (15 CFR 712.5(e));
    (4) Provide that ``declared Schedule 1'' facilities are subject to 
initial and routine inspection by the Organization for the Prohibition 
of Chemical Weapons (15 CFR 712.5(d));
    (5) Require 200 days advance notification of establishment of new 
``Schedule 1'' production facilities producing greater than 100 grams 
aggregate of ``Schedule 1'' chemicals per calendar year (15 CFR 712.4);
    (6) Require advance notification and annual reporting of all 
imports and exports of ``Schedule 1'' chemicals to, or from, other 
States Parties to the Convention (15 CFR 712.6, 742.18 and 745); and
    (7) Prohibit the export of ``Schedule 1'' chemicals to States not 
Party to the Convention (15 CFR 742.18 and 745.2).

Discussion and Request for Comments

    In order to assist in determining whether the legitimate commercial 
activities and interests of chemical, biotechnology, and pharmaceutical 
firms in the United States are being significantly harmed by the 
limitations of the Convention on access to, and production of, 
``Schedule 1'' chemicals, BIS is seeking public comments on any effects 
that implementation of the Chemical Weapons Convention has had on 
commercial activities involving ``Schedule 1'' chemicals through 
calendar year 2004.

Submission of Comments

    All comments must be submitted to the address indicated in this 
notice. The Department requires that all comments be submitted in 
written form.
    The Department encourages interested persons who wish to comment to 
do so at the earliest possible time. The period for submission of 
comments will close on December 21, 2004. The Department will consider 
all comments received before the close of the comment period. Comments 
received after the end of the comment period will be considered if 
possible, but their consideration cannot be assured. The Department 
will not accept 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. The Department will return 
such comments and materials to the persons submitting the comments and 
will not consider them. All comments submitted in response to this 
notice will be a matter of public record and will be available for 
public inspection and copying.
    The Office of Administration, Bureau of Industry and Security, U.S. 
Department of Commerce, displays public comments on the BIS 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) 482-2165, for assistance.

    Dated: November 18, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-25950 Filed 11-22-04; 8:45 am]
BILLING CODE 3510-33-P