[Federal Register Volume 72, Number 220 (Thursday, November 15, 2007)]
[Notices]
[Pages 64193-64194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-22386]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 071107679-7690-01]


Impact of Implementation of the Chemical Weapons Convention on 
Commercial Activities Involving ``Schedule 1'' Chemicals During 
Calendar Year 2007

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, through the Chemical Weapons Convention Implementation Act 
and the Chemical Weapons Convention Regulations, has had on commercial 
activities involving ``Schedule 1'' chemicals during calendar year 
2007. The purpose of this notice of inquiry is to collect information 
to assist BIS in its preparation of the annual certification to the 
Congress, which is 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 must be received by December 17, 2007.

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 Timir 
Misra, 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 providing its advice and consent to the ratification of 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) (the Convention), 
the Senate included, in Senate Resolution 75 (S. Res. 75, April 24, 
1997), several conditions to its ratification. Condition 9, titled 
``Protection of Advanced Biotechnology,'' calls for the President to 
certify to 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.'' On July 8, 2004, President 
Bush, by Executive Order 13346, delegated his authority to make the 
annual certification to the Secretary of Commerce.
    The CWC is an international arms control treaty that contains 
certain verification provisions. In order to implement these 
verification provisions, the CWC established the Organization for the 
Prohibition of Chemical Weapons (OPCW). The CWC imposes certain 
obligations on countries that have ratified the Convention (i.e., 
States Parties), among which are the enactment of legislation to 
prohibit the production, storage, and use of chemical weapons, and the 
establishment of a National Authority to serve as the national focal 
point for effective liaison with the OPCW and other States Parties for 
the purpose of achieving the object and purpose of the Convention and 
the implementation of its provisions. The CWC also requires each State 
Party to implement a comprehensive data declaration and inspection 
regime to provide transparency and to verify that both the public and 
private sectors of the State Party are not engaged in activities 
prohibited under the CWC.
    ``Schedule 1'' chemicals consist of those toxic chemicals and 
precursors set forth in the CWC ``Annex on Chemicals'' and in 
Supplement No. 1 to part 712 of the Chemical Weapons Convention 
Regulations (CWCR) (15 CFR parts 710-722). The CWC identified these 
toxic chemicals and precursors as posing a high risk to the object and 
purpose of the Convention.
    The CWC restricts the production of ``Schedule 1'' chemicals for 
protective purposes to two facilities per State Party. The CWC Article-
by-Article Analysis submitted to the Senate in

[[Page 64194]]

Treaty Doc. 103-21 defined the term ``protective purposes'' to mean 
``used for determining the adequacy of defense equipment and 
measures.'' Consistent with this definition, U.S. implementation, as 
authorized via Presidential Decision Directive (PDD) 70, December 17, 
1999, assigned the responsibility to operate these two facilities to 
the Department of Defense (DOD), thereby precluding commercial 
production of Schedule 1 chemicals for protective purposes in the 
United States. This action did not establish any limitations on 
``Schedule 1'' chemical activities that are not prohibited by the CWC. 
However, the Department of Defense maintains strict controls on 
``Schedule 1'' chemicals produced at its facilities in order to ensure 
the accountability and proper use of such chemicals, consistent with 
the object and purpose of the Convention.
    The provisions of the CWC that affect commercial activities 
involving ``Schedule 1'' chemicals are implemented in the CWCR (see 15 
CFR part 712) and in the Export Administration Regulations (EAR) (see 
15 CFR 742.18 and 15 CFR part 745), both of which are administered by 
the Bureau of Industry and Security (BIS). Pursuant to CWC 
requirements, the CWCR restrict commercial production of Schedule 1 
chemicals to research, medical, or pharmaceutical purposes. The CWCR 
also contain other requirements and prohibitions that apply to 
``Schedule 1'' chemicals and/or ``Schedule 1'' facilities. 
Specifically, the CWCR:
    (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(a)(1) and 
(a)(2));
    (3) Require government approval of ``declared Schedule 1'' 
facilities (15 CFR 712.5(f));
    (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(e) and 716.1(b)(1));
    (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(a)(1) and 
745.1); and
    (7) Prohibit the export of ``Schedule 1'' chemicals to States not 
Party to the Convention (15 CFR 742.18(a)(1) and (b)(1)(ii)).

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 significantly harmed by the limitations 
of the Convention on access to, and production of, ``Schedule 1'' 
chemicals as described in this notice, BIS is seeking public comments 
on any effects that implementation of the Chemical Weapons Convention, 
through the Chemical Weapons Convention Implementation Act and the 
Chemical Weapons Convention Regulations, has had on commercial 
activities involving ``Schedule 1'' chemicals during calendar year 
2007. In response to last year's notice of inquiry, BIS received 
comments from two companies. To allow BIS to properly evaluate the 
significance of any harm to commercial activities involving ``Schedule 
1'' chemicals, public comments submitted in response to this notice of 
inquiry should include both a quantitative and qualitative assessment 
of the impact of the CWC on such activities.

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 17, 2007. 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) 482-1093, for assistance.

    Dated: November 8, 2007.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E7-22386 Filed 11-14-07; 8:45 am]
BILLING CODE 3510-33-P