[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Pages 46088-46089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21591]



Bureau of Industry and Security

[Docket No. 0908181241-91250-01]

Effects of Foreign Policy-Based Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

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


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Regulations to determine whether they should be modified, rescinded or 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 October 8, 2009.

ADDRESSES: Comments may be sent by e-mail to [email protected] 
or on paper to Regulatory Policy Division, Bureau of Industry and 
Security, Department of Commerce, 14th Street & Pennsylvania Avenue, 
NW., Room 2705, Washington, DC 20230. Include the phrase ``FPBEC 
Comment'' in the subject line of the e-mail message or on the envelope 
if submitting comments on paper.

FOR FURTHER INFORMATION CONTACT: Joan Roberts, 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/news/2009/2009-fpr.pdf 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 Other Special Controls). These 
controls apply to a range of countries, items, activities and persons, 
including: entities acting contrary to the national security or foreign 
policy interests of the United States (Sec.  744.11); 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.  742.15); crime control and detection commodities (Sec.  742.7); 
specially designed implements of torture (Sec.  742.11); certain 
firearms and related items based on the Organization of American States 
Model Regulations for the Control of the International Movement of 
Firearms, their Parts and Components and Munitions 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); restrictions to 
exports on certain persons designated as weapons of mass destruction 
proliferators (Sec.  744.8); communication intercepting devices 
(software and technology) (Sec.  742.13); 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, 746.4, 
746.7, and 746.9); 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

[[Page 46089]]

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 13, 2009 (74 FR 41,325 (August 14, 2009)), 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 by reviewing its foreign 
policy-based export controls, requesting public comments on such 
controls, and preparing a report to be submitted to Congress. In 
January 2009, 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. BIS is now soliciting public comment on 
the effects of extending or modifying 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 objective 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 the reaction of other countries to the extension of such 
controls is not likely to render the controls ineffective in achieving 
the intended foreign policy objective 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 
    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 U.S. trade partners 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 that 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 bring them more into line with multilateral 
    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 trade or acquisitions by intended targets of the 
    7. Data or other information on the effect of foreign policy-based 
export controls on overall trade at the level of individual industrial 
    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 comments must be in writing (either e-mail or on paper). All 
comments will be a matter of public record and will be available for 
public inspection and copying.
    These comments will be displayed on BIS's Freedom of Information 
Act (FOIA) Web site at www.bis.doc.gov/foia.

    Dated: September 2, 2009.

Matthew S. Borman,
Acting Assistant Secretary for Export Administration.
[FR Doc. E9-21591 Filed 9-4-09; 8:45 am]