[Federal Register Volume 70, Number 197 (Thursday, October 13, 2005)]
[Proposed Rules]
[Pages 59678-59680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-20477]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Chapter VII

[Docket No. 050923247-5247-01]


Effects of Foreign Policy-Based Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Request for comments on foreign policy-based export controls.

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SUMMARY: The Bureau of Industry and Security (BIS) is reviewing the 
foreign

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policy-based export controls in the Export Administration Regulations 
to determine whether they should be modified, rescinded or extended. To 
help make these determinations, BIS is seeking comments on how existing 
foreign policy-based export controls have affected exporters and the 
general public.

DATES: Comments must be received by November 14, 2005.

ADDRESSES: Written comments (three copies) should be sent to Sheila 
Quarterman, Regulatory Policy Division, Bureau of Industry and 
Security, Department of Commerce, 14th Street & Pennsylvania Avenue, 
NW., Room 2705, Washington, DC 20230. Include ``FPBEC'' in the subject 
line of the message. Alternatively, comments may be e-mailed to Sheila 
Quarterman at [email protected]. Also include ``FPBEC'' in the 
subject line of the message.

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy 
Division, Office of Nonproliferation and Treaty Compliance, Bureau of 
Industry and Security, Telephone: (202) 482-4252. Copies of the current 
Annual Foreign Policy Report to the Congress are available at 
http:www.bis.doc.gov/PoliciesAndRegulations/05ForPolControls/index.htm 
and copies may also be requested by calling the Office of 
Nonproliferation and Treaty Compliance at the number listed above.

SUPPLEMENTARY INFORMATION:
    Foreign policy based controls in the Export Administration 
Regulations (EAR) are implemented pursuant to section 6 of the Export 
Administration Act of 1979, as amended. The current foreign policy-
based export controls maintained by the Bureau of Industry and Security 
(BIS) are set forth in the EAR, including in parts 742 (CCL Based 
Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes 
and Special Country Controls). These controls apply to a range of 
countries, items, activities and persons, including: high performance 
computers (Sec.  742.12); certain general purpose microprocessors for 
``military end-uses'' and ``military end-users'' (Sec.  744.17); 
significant items (SI): hot section technology for the development, 
production, or overhaul of commercial aircraft engines, components, and 
systems (Sec.  742.14); encryption items (Sec. Sec.  742.15 and 744.9); 
crime control and detection commodities (Sec.  742.7); specially 
designed implements of torture (Sec.  742.11); certain firearms 
included within the Inter-American Convention Against the Illicit 
Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, 
and Other Related Materials (Sec.  742.17); regional stability 
commodities and equipment (Sec.  742.6); equipment and related 
technical data used in the design, development, production, or use of 
certain rocket systems and unmanned air vehicles (Sec. Sec.  742.5 and 
744.3); chemical precursors and biological agents, associated 
equipment, technical data, and software related to the production of 
chemical and biological agents (Sec. Sec.  742.2 and 744.4) and various 
chemicals included in those controlled pursuant to the Chemical Weapons 
Convention (Sec.  742.18); nuclear propulsion (Sec.  744.5); aircraft 
and vessels (Sec.  744.7); embargoed countries (part 746); countries 
designated as supporters of acts of international terrorism (Sec. Sec.  
742.8, 742.9, 742.10, 742.19, 742.20, 746.2, 746.3, and 746.7); certain 
entities in Russia (Sec.  744.10); individual terrorists and terrorist 
organizations (Sec. Sec.  744.12, 744.13 and 744.14); certain persons 
designated by Executive Order 13315 (``Blocking Property of the Former 
Iraqi Regime, Its Senior Officials and Their Family Members'') (Sec.  
744.18); and certain sanctioned entities (Sec.  744.20). Attention is 
also given in this context to the controls on nuclear-related 
commodities and technology (Sec. Sec.  742.3 and 744.2), which are, in 
part, implemented under section 309(c) of the Nuclear Non-Proliferation 
Act.
    Under the provisions of section 6 of the Export Administration Act 
of 1979, as amended (EAA), export controls maintained for foreign 
policy purposes require annual extension. Section 6 of the EAA requires 
a report to Congress when foreign policy-based export controls are 
extended. The EAA expired on August 20, 2001. Executive Order 13222 of 
August 17, 2001 (3 CFR, 2001 Comp., p. 783 (2002)), which has been 
extended by successive Presidential Notices, the most recent being that 
of August 2, 2005 (70 FR 45273, August 5, 2005), continues the EAR and, 
to the extent permitted by law, the provisions of the EAA, in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706 (2000). The Department of Commerce, insofar as appropriate, is 
following the provisions of section 6 in reviewing foreign policy-based 
export controls, requesting public comments on such controls, and 
submitting a report to Congress.
    In January 2005, the Secretary of Commerce, on the recommendation 
of the Secretary of State, extended for one year all foreign policy-
based export controls then in effect.
    To assure maximum public participation in the review process, 
comments are solicited on the extension or revision of the existing 
foreign policy-based export controls for another year. Among the 
criteria considered in determining whether to continue or revise U.S. 
foreign policy-based export controls are the following:
    1. The likelihood that such controls will achieve the intended 
foreign policy purpose, in light of other factors, including the 
availability from other countries of the goods, software or technology 
proposed for such controls;
    2. Whether the foreign policy purpose of such controls can be 
achieved through negotiations or other alternative means;
    3. The compatibility of the controls with the foreign policy 
objectives of the United States and with overall United States policy 
toward the country subject to the controls;
    4. Whether reaction of other countries to the extension of such 
controls by the United States is not likely to render the controls 
ineffective in achieving the intended foreign policy purpose or be 
counterproductive to United States foreign policy interests;
    5. The comparative benefits to U.S. foreign policy objectives 
versus the effect of the controls on the export performance of the 
United States, the competitive position of the United States in the 
international economy, the international reputation of the United 
States as a supplier of goods and technology; and
    6. The ability of the United States to enforce the controls 
effectively.
    BIS is particularly interested in the experience of individual 
exporters in complying with the proliferation controls, with emphasis 
on economic impact and specific instances of business lost to foreign 
competitors. BIS is also interested in industry information relating to 
the following:
    1. Information on the effect of foreign policy-based export 
controls on sales of U.S. products to third countries (i.e., those 
countries not targeted by sanctions), including the views of foreign 
purchasers or prospective customers regarding U.S. foreign policy-based 
export controls.
    2. Information on controls maintained by U.S. trade partners. For 
example, to what extent do they have similar controls on goods and 
technology on a worldwide basis or to specific destinations?
    3. Information on licensing policies or practices by our foreign 
trade partners which are similar to U.S. foreign policy-based export 
controls, including license review criteria, use of conditions, 
requirements for pre and post shipment verifications (preferably 
supported by

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examples of approvals, denials and foreign regulations).
    4. Suggestions for revisions to foreign policy-based export 
controls that would (if there are any differences) bring them more into 
line with multilateral practice.
    5. Comments or suggestions as to actions that would make 
multilateral controls more effective.
    6. Information that illustrates the effect of foreign policy-based 
export controls on the trade or acquisitions by intended targets of the 
controls.
    7. Data or other information as to the effect of foreign policy-
based export controls on overall trade at the level of individual 
industrial sectors.
    8. Suggestions as to how to measure the effect of foreign policy-
based export controls on trade.
    9. Information on the use of foreign policy-based export controls 
on targeted countries, entities, or individuals.
    BIS is also interested in comments relating generally to the 
extension or revision of existing foreign policy-based export controls.
    Parties submitting comments are asked to be as specific as 
possible. All comments received before the close of the comment period 
will be considered by BIS in reviewing the controls and developing the 
report to Congress.
    All information relating to the notice will be a matter of public 
record and will be available for public inspection and copying. In the 
interest of accuracy and completeness, BIS requires written comments. 
Oral comments must be followed by written memoranda, which will also be 
a matter of public record and will be available for public review 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.

    Dated: October 6, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 05-20477 Filed 10-12-05; 8:45 am]
BILLING CODE 3510-33-P