[Federal Register Volume 71, Number 204 (Monday, October 23, 2006)]
[Proposed Rules]
[Pages 62065-62067]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-17713]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Chapter VII

[Docket No. 061005255-6255-01]


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 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Regulations to determine whether they should be modified, rescinded or 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 22, 2006.

ADDRESSES: Written comments may be sent by e-mail to 
[email protected]. Include ``FPBEC'' in the subject line of 
the message. Written comments (three copies) may be submitted by mail 
or hand delivery 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.

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy 
Division, Office of Nonproliferation and Treaty Compliance, Bureau of 
Industry

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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/News/2006/foreignPolicyReport/Default.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: 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 items (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, 746.2, 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 (50 U.S.C. app. Sec. Sec.  2401-2420 (2000)) (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 3, 2006 (71 
FR 44551, August 7, 2006), 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 2006, 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 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 receiving comments on the 
economic impact of proliferation controls. 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 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

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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 12, 2006.
Christopher A. Padilla,
Assistant Secretary for Export Administration.
 [FR Doc. E6-17713 Filed 10-20-06; 8:45 am]
BILLING CODE 3510-33-P