[Federal Register Volume 71, Number 73 (Monday, April 17, 2006)]
[Proposed Rules]
[Pages 19666-19667]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5649]



Bureau of Industry and Security

15 CFR Part 700

[Docket No. 060215037-6037-01]

Defense Priorities and Allocations System (DPAS): Metalworking 

AGENCY: Bureau of Industry and Security, U.S. Department of Commerce.

ACTION: Notice of inquiry.


SUMMARY: The Bureau of Industry and Security (BIS) is seeking public 
comments on the impact of the Defense Priorities and Allocations System 
(DPAS) set-aside for metalworking machines on industry (15 CFR 700.31). 
This notice of inquiry is part of an effort to collect information to 
assist in the preparation of revisions to the DPAS regulation (15 CFR 
part 700), including the possible elimination of the metalworking 
machines set-aside.

DATES: Comments must be received by May 17, 2006.

ADDRESSES: You may submit comments by any of the following methods:
     E-mail: [email protected]. Include the phrase 
``Metalworking Machines Notice of Inquiry'' in the subject line;
     Fax: (202) 482-5650 (Attn: Michael Vaccaro);
     Mail or Hand Delivery/Courier: Michael Vaccaro, U.S. 
Department of Commerce, Bureau of Industry and Security, Office of 
Strategic Industries and Economic Security, 1401 Constitution Avenue, 
NW., Room 3876, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Liam McMenamin, Office of Strategic 
Industries and Economic Security, Bureau of Industry and Security, U.S. 
Department of Commerce, Phone: (202) 482-2233.



    Under Title I of the Defense Production Act of 1950, as amended, 
(50 U.S.C. App. 2061, et seq.), the President is authorized to require 
preferential acceptance and performance of contracts or orders 
supporting certain approved national defense and energy programs, and 
to allocate materials, services, and facilities in such a manner as to 
promote these approved programs. Additional priorities authority is 
found in section 18 of the Selective Service Act of 1948 (50 U.S.C. 
App. 468), 10 U.S.C. 2538, and 50 U.S.C. 82. DPAS authority has also 
been extended to support emergency preparedness activities under Title 
VI of the Robert T. Stafford Disaster Relief Act and Emergency 
Assistance Act, as amended (45 U.S.C. 5914, et seq.) The President 
delegated DPAS authority to the Department of Commerce in Executive 
Order 12919 (June 3, 1994), and it was subsequently redelegated to the 
Bureau of Industry and Security.
    Originally published in 1984, the DPAS regulation was revised on 
June 11, 1998 (63 FR 31918) to update, streamline, and clarify a number 
of provisions. Allocations rules like the DPAS (i.e., controlled 
materials programs) were established in response to previous periods of 
national security emergency such as the Second World War and the Korean 
conflict to assure the availability of any scarce and critical item for 
approved programs. The basic elements of the controlled materials 
programs were set-asides (the amount of an item for which a producer or 
supplier must reserve order-book space in anticipation of the receipt 
of rated orders), production directives (requiring a producer to supply 
a specific quantity, size, shape, and type of an item within a specific 
time period), and allotments (the maximum quantity of an item 
authorized for use in a specific program or application).

Discussion and Request for Comments

    Currently, the DPAS regulation includes a set-aside that applies to 
metalworking machines. Section 700.31 of the DPAS regulation states as 

    ``(c) A metalworking machine producer is not required to accept 
DO rated orders calling for delivery in any month of a total 
quantity of any size of machine in excess of 60 percent of scheduled 
production of that size of machine for that month, or any DO rated 
orders received less than three months prior to the beginning of the 
month for which delivery is requested. However, DX rated orders must 
be accepted without regard to a set-aside or the lead time, if 
delivery can be made by the required date.''

[[Page 19667]]

    In pursuit of the DPAS mission, the Department of Commerce 
endeavors to minimize disruptions to the normal commercial activities 
of industry. In an effort to streamline the DPAS regulation, BIS is 
seeking comment on the impact of the DPAS's set-aside for metalworking 
machines on industry and the effect on industry of the possible 
elimination of this set-aside.

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 May 17, 2006. 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. Anyone submitting 
business confidential information should clearly identify the business 
confidential portion of the submission and also provide a non-
confidential submission that can be placed in the public record. The 
Department will seek to protect such information to the extent 
permitted by law. All comments submitted in response to this notice 
will be made 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) 482-1900 for assistance.

    Dated: April 11, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E6-5649 Filed 4-14-06; 8:45 am]