[Federal Register Volume 71, Number 182 (Wednesday, September 20, 2006)]
[Rules and Regulations]
[Pages 54902-54904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-15447]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 700

[Docket No. 060831232-6232-01]
RIN 0694-AD90


Defense Priorities and Allocations System (DPAS): Assistance 
Programs With Canada and Other Nations

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

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) is amending the 
Defense Priorities and Allocations System (DPAS) Regulation (15 CFR 
part 700) to provide additional guidance on how persons in Canada and 
other foreign nations may apply for priority rating authority and 
special priorities assistance to obtain items in the United States, and 
to provide information on

[[Page 54903]]

how persons in the United States may obtain informal assistance in 
Italy, the Netherlands, Sweden, and the United Kingdom to obtain items 
in support of approved programs. These amendments do not alter the 
substance or effect of the DPAS regulation.

DATES: This rule is effective September 20, 2006.

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

SUPPLEMENTARY INFORMATION:

Background

    Under Title I of the Defense Production Act (DPA) 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. The President delegated 
the priorities and allocations authorities of the DPA in Executive 
Order 12919 (June 3, 1994; amended by Executive Order 13286, February 
28, 2003). As part of that delegation, the President designated the 
Secretary of Commerce to administer the Defense Priorities and 
Allocations System. DPAS authority has also been extended to support 
emergency preparedness activities under Title VI of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act, as amended (42 
U.S.C. 5195, et seq.). The DPAS regulation is found at 15 CFR part 700.

Amendments to the DPAS Regulation

    The Defense Production Act's definition of ``national defense'' 
includes ``military assistance to any foreign nation.'' Section 700.55 
of the DPAS regulation currently provides guidance on how persons in 
Canada and in other foreign nations can apply for authority to place 
priority rated orders and special priorities assistance to obtain items 
in the United States. Persons in the United States receiving a priority 
rated order must give the rated order preference over all unrated 
orders as necessary to meet required delivery dates. Special priorities 
assistance is provided by the Department of Commerce and the DPAS 
Delegate Agencies as appropriate to expedite deliveries, resolve 
delivery conflicts, place rated orders, locate suppliers, or to verify 
information provided by customers and vendors. Special priorities 
assistance may also be used to request authority to place rated orders.
    The Department of Commerce and the Government of Canada have 
provided mutual assistance to the defense industries located in both 
countries since 1950. The Department of Commerce has determined that it 
would be useful to provide additional guidance on how persons in Canada 
producing items to support U.S. and Canadian approved programs may 
request priority rating authority and special priorities assistance to 
obtain items in the United States through the Canadian Public Works and 
Government Services Canada. This rule provides additional point of 
contact information in section 700.55(b) for Public Works and 
Government Services Canada, including branch and directorate names, 
mailing address, telephone, and fax numbers. These changes do not alter 
the substance or effect of the DPAS regulation.
    The DPAS regulation provides that persons in foreign nations other 
than Canada may apply to the Department of Defense for priority rating 
authority and special priorities assistance to obtain items in the 
United States. Requests endorsed by the Department of Defense are 
forwarded to the Department of Commerce for appropriate action. The 
Department of Commerce has determined that it would be useful to 
provide additional guidance on how persons in foreign nations other 
than Canada may request priority rating authority and special 
priorities assistance through the Department of Defense. This rule 
provides additional point of contact information in section 700.55(c) 
for the Department of Defense, including office name, mailing address, 
telephone, and fax numbers. This rule also clarifies that if the end 
product is being acquired by a foreign nation, the request must be 
sponsored prior to its submission to the Department of Defense by the 
government of the foreign nation that will use the end product. This 
rule clarifies that if the end product is being acquired by a U.S. 
government agency, the request should be submitted to the Department of 
Defense through the U.S. contract administration representative. These 
changes do not alter the substance or effect of the DPAS regulation.
    The Department of Defense has entered into bilateral security of 
supply arrangements with Italy, the Netherlands, Sweden, and the United 
Kingdom that allow the Department of Defense to request the priority 
delivery for Department of Defense contracts, subcontracts, and orders 
from companies in these countries. The Department of Commerce has 
determined that it would be useful to provide information on the 
bilateral security of supply arrangements in sections 700.55(a) and in 
a new section 700.55(d), and to provide guidance on how persons in the 
United States may request assistance through the Department of Defense 
in obtaining items from Italy, the Netherlands, Sweden, and the United 
Kingdom to support approved programs. Although these supply 
arrangements are new enterprises within the Department of Defense, the 
creation of these arrangements does not impact the existing authorities 
of the DPAS regulation. The new paragraph (d) in section 700.55 is only 
intended to provide persons in the U.S. with information on how to 
contact the Department of Defense to facilitate requests for priorities 
assistance in these countries. Persons in Italy, The Netherlands, 
Sweden, and the United Kingdom would continue to request assistance in 
accordance with section 700.55(c). These changes do not alter the 
existing authorities or requirements of the DPAS regulation.

Rulemaking Requirements

    1. This rule has been determined to be not significant for purposes 
of Executive Order 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.) unless the collection of information displays a currently valid 
Office of Management and Budget control number. This rule does not 
involve any collections of information that are subject to the 
Paperwork Reduction Act.
    3. This rule does not contain policies with federalism implications 
as this term is defined in Executive Order 13132.
    4. The Department finds that there is good cause under 5 U.S.C. 
553(b)(B) to waive the provisions of the Administrative Procedure Act 
(APA) requiring prior notice and the opportunity for public comment. 
Because these revisions consist of minor technical changes which 
involve no exercise of agency discretion, it is unnecessary to provide 
notice and opportunity for public comment. In addition, the 30-day 
delay in

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effectiveness required by 5 U.S.C. 553(d) is not applicable because 
this rule is not a substantive rule. It is purely administrative in 
nature and does not affect the existing rights of the public. No other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this rule.
    The analytical requirements of the Regulatory Flexibility Act (5 
U.S.C. 601, et seq.) are not applicable because notice of proposed 
rulemaking and opportunity for public comment are not required to be 
given for this rule under the Administrative Procedure Act or by any 
other law.

List of Subjects in 15 CFR Part 700

    Administrative practice and procedure, Business and industry, 
Government contracts, National defense, Reporting and recordkeeping 
requirements, Strategic and critical materials.


0
For the reasons discussed in the preamble, the Department of Commerce 
amends 15 CFR part 700 as follows:

PART 700--DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM

0
1. The authority citation for part 700 continues to read as follows:

    Authority: Titles I and VII of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2061, et seq.), Title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195, et seq.), Executive Order 12919, 59 FR 29525, 3 CFR, 
1994 Comp. 901, and Executive Order 13286, 68 FR 10619, 3 CFR, 2003 
Comp. 166; section 18 of the Selective Service Act of 1948 (50 
U.S.C. App. 468), 10 U.S.C. 2538, 50 U.S.C. 82, and Executive Order 
12742, 56 FR 1079, 3 CFR, 1991 Comp. 309; and Executive Order 12656, 
53 FR 226, 3 CFR, 1988 Comp. 585.


0
2. In Sec.  700.55, revise the second sentence in paragraph (a), revise 
paragraphs (b)(3), (4) and (5) and (c)(1), and add paragraph (d) to 
read as follows:


Sec.  700.55  Assistance Programs with Canada and other nations.

    (a) * * * Although priority ratings have no legal authority outside 
of the United States, this section also provides information on how 
persons in the United States may obtain informal assistance in Canada, 
Italy, The Netherlands, Sweden, and the United Kingdom in support of 
approved programs.
    (b) * * *
    (3) Any person in the United States ordering defense items in 
Canada in support of an approved program should inform the Canadian 
supplier that the items being ordered are to be used to fill a rated 
order. The Canadian supplier should be informed that if production 
materials are needed from the United States by the supplier or the 
supplier's vendor to fill the order, the supplier or vendor should 
contact the Canadian Public Works and Government Services Canada, for 
authority to place rated orders in the United States: Public Works and 
Government Services Canada, Acquisitions Branch, Business Management 
Directorate, Phase 3, Place du Portage, Level 0A1, 11 Laurier Street, 
Gatineau, Quebec, K1A 0S5, Canada; telephone: (819) 956-6825; Fax: 
(819) 956-7827.
    (4) Any person in Canada producing defense items for the Canadian 
government may also obtain priority rating authority for items to be 
purchased in the United States by applying to the Canadian Public Works 
and Government Services Canada, Acquisitions Branch, Business 
Management Directorate, in accordance with its procedures.
    (5) Persons in Canada needing special priorities assistance in 
obtaining defense items in the United States may apply to the Canadian 
Public Works and Government Services Canada, Acquisitions Branch, 
Business Management Directorate, for such assistance. Public Works and 
Government Services Canada will forward appropriate requests to the 
U.S. Department of Commerce.
* * * * *
    (c) Foreign nations.
    (1) Any person in a foreign nation other than Canada requiring 
assistance in obtaining defense items in the United States or priority 
rating authority for defense items to be purchased in the United 
States, should submit a request for such assistance or rating authority 
to the Office of the Deputy Under Secretary of Defense (Industrial 
Policy): Office of the Deputy Under Secretary of Defense (Industrial 
Policy), 3330 Defense Pentagon, Washington, DC 20301; telephone: (703) 
697-0051; Fax: (703) 695-4277.
    (i) If the end product is being acquired by a U.S. government 
agency, the request should be submitted to the Office of the Deputy 
Under Secretary of Defense (Industrial Policy) through the U.S. 
contract administration representative.
    (ii) If the end product is being acquired by a foreign nation, the 
request must be sponsored prior to its submission to the Office of the 
Deputy Under Secretary of Defense (Industrial Policy) by the government 
of the foreign nation that will use the end product.
* * * * *
    (d) Requesting assistance in Italy, The Netherlands, Sweden, and 
the United Kingdom.
    (1) The U.S. Department of Defense has entered into bilateral 
security of supply arrangements with Italy, The Netherlands, Sweden, 
and the United Kingdom that allow the U.S. Department of Defense to 
request the priority delivery for U.S. Department of Defense contracts, 
subcontracts, and orders from companies in these countries.
    (2) Any person in the United States requiring assistance in 
obtaining the priority delivery of a contract, subcontract, or order in 
Italy, The Netherlands, Sweden, or the United Kingdom to support an 
approved program should contact the Office of the Deputy Under 
Secretary of Defense (Industrial Policy) for assistance. Persons in 
Italy, The Netherlands, Sweden, and the United Kingdom should request 
assistance in accordance with Sec.  700.55(c)(1).

    Dated: September 8, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E6-15447 Filed 9-19-06; 8:45 am]
BILLING CODE 3510-33-P