[Federal Register Volume 76, Number 134 (Wednesday, July 13, 2011)]
[Proposed Rules]
[Pages 41366-41370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17488]
[[Page 41365]]
Vol. 76
Wednesday,
No. 134
July 13, 2011
Part III
Department of Commerce
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Bureau of Industry and Security
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15 CFR Parts 713 and 716
Impact of Reducing the Mixture Concentration Threshold for Commercial
Schedule 2A Chemical Activities Under the Chemical Weapons Convention
Regulations; Proposed Rule
Federal Register / Vol. 76 , No. 134 / Wednesday, July 13, 2011 /
Proposed Rules
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 713 and 716
RIN 0694-XA27
[Docket No. 100817370-0464-01]
Impact of Reducing the Mixture Concentration Threshold for
Commercial Schedule 2A Chemical Activities Under the Chemical Weapons
Convention Regulations
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 of amending the Chemical Weapons Convention
Regulations (CWCR) to reduce the concentration level below which the
CWCR exempt certain mixtures containing a Schedule 2A chemical from the
declaration requirements that apply to Schedule 2A chemical production,
processing, and consumption under the Chemical Weapons Convention
(CWC). To make these declaration requirements consistent with the
international agreement adopted by the Organization for the Prohibition
of Chemical Weapons (OPCW), BIS is considering amending the CWCR to
replace the current low concentration exemption (a concentration of
``less than 30%'' by volume or weight) with a two-tiered low
concentration exemption that is based, in part, on whether the total
amount of a Schedule 2A chemical produced, processed, or consumed at
one or more plants on a plant site during a calendar year is less than
the applicable verification threshold in the CWCR. Under this two-
tiered approach, the declaration and reporting requirements in the CWCR
would not apply to a chemical mixture containing a Schedule 2A chemical
if: The concentration of the Schedule 2A chemical in the mixture is
``1% or less,'' or the concentration of the Schedule 2A chemical in the
mixture is ``more than 1%, but less than or equal to 10%,'' and the
annual amount of the Schedule 2A chemical produced, processed, or
consumed is less than the relevant verification threshold. Legislative
amendment of the Chemical Weapons Convention Implementation Act (CWCIA)
is required in order to implement this proposed amendment to the CWCR.
In addition, at U.S. national discretion, BIS is considering
amending the CWCR to require declarations/reports for exports and
imports of any mixtures that contain ``more than 10%'' of a Schedule 2A
chemical by volume or weight (whichever method yields the lesser
percentage), if the total quantity of the Schedule 2A chemical exported
or imported during a calendar year exceeds the applicable CWCR
declaration threshold.
DATES: Comments are due August 12, 2011.
ADDRESSES: You may submit comments by any of the following methods:
E-mail: [email protected]. Include the phrase ``Schedule
2A Notice of Inquiry'' in the subject line of the message.
Fax: (202) 482-3355 (Attn: Willard Fisher). Please alert
the Regulatory Policy Division, by calling (202) 482-2440, if you are
faxing comments.
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.
Send comments regarding the collection of information identified in
this notice of inquiry, including suggestions for reducing the burden,
to Jasmeet Seehra, Office of Management and Budget (OMB), by e-mail to
[email protected], or by fax to (202) 395-7285; and to
the Regulatory Policy Division, Bureau of Industry and Security,
Department of Commerce, 14th Street & Pennsylvania Avenue, NW., Room
2705, Washington, DC 20230. Comments on this collection of information
should be submitted separately from comments on the notice of inquiry--
all comments on the latter should be submitted by one of the three
methods outlined above.
FOR FURTHER INFORMATION CONTACT: For questions on the Chemical Weapons
Convention requirements for Schedule 2A and 2A* chemicals, contact
Douglas Brown, Treaty Compliance Division, Office of Nonproliferation
and Treaty Compliance, Bureau of Industry and Security, U.S. Department
of Commerce, Phone: (202) 482-2163. 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
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 or the
Convention), is an international arms control and nonproliferation
treaty that established the Organization for the Prohibition of
Chemical Weapons (OPCW) to implement the verification provisions of the
treaty. A major objective of the CWC is to verify that lawful
activities of chemical producers and users are not converted to
unlawful activities related to chemical weapons. Consistent with this
objective, the CWC imposes a number of obligations on countries that
have ratified the CWC (States Parties). In this regard, the CWC
establishes a comprehensive verification scheme and requires the
declaration and inspection of facilities that produce, process, or
consume certain ``scheduled'' chemicals (i.e., Schedule 1, Schedule 2,
and Schedule 3 chemicals) and unscheduled discrete organic chemicals
(UDOCs), many of which have significant commercial applications. The
CWC also requires States Parties to report exports and imports and to
impose export and import restrictions on certain chemicals. These
requirements apply to all entities under the jurisdiction and control
of States Parties, including commercial entities and individuals.
To ensure the implementation of this verification scheme on a
national level, the CWC requires each State Party to enact legislation
that prohibits the production, storage and use of chemical weapons, and
to establish a National Authority to serve as a liaison with the OPCW
and other States Parties. The CWC also requires that each State Party
implement a comprehensive data declaration \1\ and inspection regime
\2\ to
[[Page 41367]]
provide transparency and to verify that both the public and private
sectors of States Parties are not engaged in activities prohibited
under the CWC.
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\1\ In the United States, facilities that have data declaration
obligations under the Chemical Weapons Convention Regulations (CWCR)
(15 CFR Parts 710-722), because they engage in certain activities
involving scheduled chemicals or unscheduled discrete organic
chemicals, must submit the appropriate declaration forms to the
Bureau of Industry and Security (BIS). Such facilities are treated
as ``declared'' facilities under the CWCR and their facility-
specific information is transmitted by the U.S. to the OPCW.
Entities that are ``undeclared'' facilities or trading companies,
whose obligations under the CWCR are limited to certain export and/
or import activities, must submit the appropriate report forms to
BIS--their facility-specific information is not transmitted by the
U.S. to the OPCW (i.e., the information is aggregated prior to
transmission to the OPCW). ``Declared'' facilities also must submit
export/import information to BIS if such activities are subject to
the declaration/reporting requirements of the CWCR.
\2\ Each State Party to the CWC, including the United States,
has agreed to allow certain inspections of ``declared'' facilities
by inspection teams employed by the OPCW to ensure that the
activities of such facilities comply with CWC requirements. BIS is
responsible for leading, hosting and escorting inspections of all
facilities subject to the provisions of the CWCR. (See 15 CFR part
716 for the types of activities that are subject to inspection and
specific inspection thresholds.)
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This notice of inquiry addresses the CWC requirements that apply to
certain mixtures that contain a Schedule 2 chemical. Part VII,
paragraph 5 of the Verification Annex to the CWC (``Schedule 2
Regime'') provides that declarations ``are generally not required for
mixtures containing a low concentration of a Schedule 2 chemical'' and
that the Conference of the States Parties to the Convention will
consider and approve guidelines to establish the appropriate low
concentration level. Schedule 2 chemicals, as set forth in the
Convention's ``Annex on Chemicals,'' include those chemicals and
precursors identified in the Convention as posing a ``significant''
risk to the object and purpose of the Convention.\3\
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\3\ The CWC ``Annex on Chemicals'' groups scheduled chemicals
(i.e, Schedules 1, 2, and 3) according to the level of risk to the
``object and purpose'' of the CWC, with Schedule 1 chemicals
representing the highest level of risk and Schedule 3 chemicals, the
lowest.
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Consistent with the requirements of the CWC, the Chemical Weapons
Implementation Act of 1998 (CWCIA) (22 U.S.C. 6701 et seq.), which was
enacted on October 21, 1998, authorizes the United States to require
the U.S. chemical industry and other private entities to submit
declarations, notifications and other reports and to provide access for
on-site inspections conducted by inspectors sent by the OPCW. Section
402(a)(1) of the CWCIA established 10% as the concentration limit of
any Schedule 2 chemical (i.e. Schedule 2A, 2A*, or 2B chemicals) \4\ in
a mixture, below which the CWC's declaration, reporting and inspection
requirements do not apply.
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\4\ Schedule 2 in the CWC ``Annex on Chemicals'' contains the
subcategories 2A and 2B. Schedule 2A chemicals consist of those
Schedule 2 chemicals that are identified as ``toxic'' chemicals.
Schedule 2B chemicals consist of those Schedule 2 chemicals that are
identified as ``precursor'' chemicals. One chemical within the
subcategory Schedule 2A (i.e., ``BZ: 3-Quinuclidinyl benzilate'') is
designated as a Schedule 2A* chemical, because it has a lower
declaration threshold and a lower inspection/verification threshold
than the other Schedule 2A chemicals.
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The Bureau of Industry and Security (BIS) administers the Chemical
Weapons Convention Regulations (CWCR) (15 CFR Parts 710-722), which
implement provisions of the CWCIA. Currently, the CWCR do not require
that the quantity of a Schedule 2A chemical contained in a mixture be
counted for declaration or reporting purposes if the concentration of
the Schedule 2A chemical in the mixture is ``less than 30%'' by volume
or weight, whichever yields the lesser percentage. This low
concentration exemption was implemented by BIS in the CWCR in 1999,
prior to the 2009 approval by the Conference of the States Parties to
the Convention of guidelines, as described below, that established the
low concentration exemption for mixtures containing Schedule 2
chemicals, in accordance with the Schedule 2 Regime.
The CWCR currently apply a 30% low concentration threshold to the
application of the Schedule 2A chemical declaration, reporting, and
inspection requirements, rather than the 10% low concentration
threshold established by the CWCIA, in order to ensure that the
chemical mixture requirements in the CWCR are compatible with the
export requirements in the Export Administration Regulations (EAR) (15
CFR parts 730-774) that apply to certain scheduled chemical precursors
(including mixtures that contain these precursors). Although the
Schedule 2A chemical low concentration threshold in the CWCR is higher
than the low concentration threshold established by CWCIA, it is
consistent with the CWCIA because it still exempts mixtures that
contain Schedule 2A chemicals at a concentration level below 10% from
the declaration, reporting, and inspection requirements of the CWC.
However, legislative amendment of the CWCIA will be required prior to
any change in the CWCR low concentration threshold that would reduce
this threshold below the 10% low concentration threshold established by
the CWCIA.
The declaration, reporting, and inspection/verification
requirements in the CWC that affect commercial activities involving
Schedule 2 chemicals are described in parts 713 and 716 of the CWCR.
These CWCR provisions:
(1) Require annual declarations by certain facilities (i.e.,
``declared'' Schedule 2 ``plant sites'') that were engaged in the
production, processing, or consumption of a Schedule 2A chemical during
any of the three previous calendar years, or which anticipate engaging
in such activities in the next calendar year, in excess of the
following quantities (declaration thresholds):
(a) 100 kilograms of chemical Amiton: 0,0 Diethyl S-[2-
(diethylamino) ethyl] phosphorothiolate and corresponding alkylated or
protonated salts;
(b) 100 kilograms of chemical PFIB: 1,1,3,3,3-Pentafluoro-
2(trifluoromethyl)-1-propene; or
(c) 1 kilogram of chemical BZ: 3-Quinuclidinyl benzilate (15 CFR
Sec. 713.2(a)(1));
(2) Require that the calculation of the quantity of any Schedule 2
chemical that is produced, processed or consumed must include the
quantities produced, processed or consumed in mixtures, if the
concentration of the Schedule 2 chemical in the mixture is equal to or
greater than 30% by volume or by weight, whichever yields the lesser
percentage (15 CFR 713.2(a)(3));
(3) Define Schedule 2 chemical production to include all steps in
the production of a Schedule 2 chemical in any units within the same
plant through chemical reaction, including any associated processes
(e.g., purification, separation, extraction, distillation, or refining)
in which the chemical is not converted into another chemical (15 CFR
713.2(a)(2));
(4) Provide that all ``declared Schedule 2'' plant sites are
subject to initial and routine inspection by the OPCW (15 CFR
713.2(e));
(5) Require plant sites, trading companies, and any other person
subject to the CWCR to submit annual declarations/reports of all
exports and imports of any Schedule 2 chemical to, or from, other
destinations if the total quantity exported or imported exceeds the
applicable declaration threshold (15 CFR 713.3); and
(6) Define inspection/verification thresholds for the production,
processing, or consumption, during the calendar year of a Schedule 2A
chemical as being in excess of the following quantities:
(a) 1 metric ton (MT) of chemical Amiton: 0,0 Diethyl S [2
(diethylamino) ethyl] phosphorothiolate and corresponding alkylated or
protonated salts;
(b) 1 MT of chemical PFIB: 1,1,3,3,3-Pentafluoro-
2(trifluoromethyl)-1-propene; or
(c) 10 kg of chemical BZ: 3-Quinuclidinyl benzilate (15 CFR
716.1(b)(2)).
During the OPCW's 14th Conference of the States Parties, which was
held in The Hague, the Netherlands, on December 2, 2009, the States
Parties to the CWC agreed that the CWC's declaration and reporting
requirements would not apply to a chemical mixture containing a
Schedule 2A chemical if: (1) The concentration of the Schedule 2A
chemical in the mixture is ``1% or less'' or (2) the concentration of
the Schedule 2A chemical in the mixture is ``more than 1%, but less
than or equal to 10%,'' and the annual amount of the Schedule 2A
chemical produced, processed, or consumed is less than the
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relevant verification threshold. As previously indicated, a low
concentration exemption of ``less than 30%'' currently applies to
Schedule 2 chemicals in the United States under the CWCR. The OPCW
agreement is documented in OPCW Decision C-14/DEC.4 and can be obtained
from the OPCW Web site (http://www.opcw.org). Amendment to the CWCIA
and CWCR is necessary to implement these new OPCW guidelines.
In addition, during the OPCW's 5th Conference of the States
Parties, which was held in The Hague, the Netherlands, on May 19, 2000,
the States Parties to the CWC agreed that the CWC's declaration
requirements would not apply to a chemical mixture containing a
Schedule 2B chemical or a Schedule 3 chemical if the concentration of
the Schedule 2B chemical or the Schedule 3 chemical in the mixture is
``30% or less.'' The impact of this CWC agreement on the declaration
requirements for Schedule 2B chemicals is expected to be modest because
the amount of a Schedule 2B chemical in a mixture is currently exempted
from the declaration requirements in the CWCR if the concentration of
the Schedule 2B chemical in the mixture is ``less than 30%.'' BIS will
address the impact of these new CWC guidelines on Schedule 3 chemical
declaration requirements in a separate rulemaking. The CWC agreement is
documented in OPCW Decision C-V/DEC.19 and can be obtained from the
OPCW Web site (http://www.opcw.org).
Discussion and Request for Comments
Section 713.2(a) of the CWCR requires submission of a declaration
from a plant site if one or more plants at that plant site produced,
processed or consumed a Schedule 2A chemical during any of the three
previous calendar years, or anticipate doing so in the next calendar
year, in excess of the quantity specified (the declaration threshold)
for a Schedule 2A chemical. A plant site is subject to inspection/
verification if it produced, processed or consumed a Schedule 2A
chemical during any of the three previous calendar years, or
anticipates doing so in the next calendar year, in excess of ten times
the applicable declaration threshold for a Schedule 2A chemical (the
verification threshold). Currently, the CWCR require that the quantity
of a Schedule 2A chemical produced, processed or consumed in mixtures
be included in the calculation of the annual quantity of Schedule 2A
chemicals produced, processed or consumed only if the mixture contains
30% or more by weight or volume (whichever yields the lesser
percentage) of the Schedule 2A chemical.
To make these CWCR requirements consistent with OPCW Decision C-14/
DEC.4, BIS is considering amending the CWCR to establish a two-tiered
low concentration exemption for certain mixtures containing Schedule 2A
chemicals. The two tiers would be based, in part, on whether the total
Schedule 2A chemical production, processing, or consumption at one or
more plants on a plant site during a calendar year is less than the
applicable verification threshold in the CWCR.
Under the first tier, a mixture that contains a Schedule 2A
chemical at a concentration of ``1% or less'' by volume or weight
(whichever method yields the lesser percentage) would be exempt from
the CWCR declaration requirements for Schedule 2A chemicals and, as
such, none of the Schedule 2A chemical in the mixture would have to be
counted for declaration purposes. Furthermore, the amount of the
Schedule 2A chemical in such a mixture would be exempt from the CWCR
Schedule 2A declaration requirements regardless of the total amount of
the Schedule 2A chemical produced, processed, or consumed at one or
more plants on a plant site during a calendar year. Under the second
tier, a mixture that contains a Schedule 2A chemical at a concentration
of ``more than 1%, but less than or equal to 10%,'' by volume or weight
(whichever method yields the lesser percentage) would be exempt from
the CWCR declaration requirements for Schedule 2A chemicals, provided
that the total amount of a Schedule 2A chemical produced, processed, or
consumed at one or more plants on a plant site during a calendar year
is less than the applicable verification threshold.
Also, BIS is considering amending the threshold level at which the
CWCR would require declarations/reports on exports and imports of
Schedule 2A chemicals contained in mixtures. Under the changes being
considered by BIS, the CWCR would require declarations/reports on
exports and imports of a Schedule 2A chemical contained in a mixture at
a concentration of ``more than 10%'' by volume or weight (whichever
yields the lesser percentage), if the total quantity of the Schedule 2A
chemical exported or imported during a calendar year exceeds the
applicable declaration threshold. Currently, the CWCR require that
exports and imports of a Schedule 2 chemical in a mixture be counted
for declaration/reporting \5\ purposes if the concentration of the
Schedule 2 chemical in the mixture is ``30% or more'' by volume or
weight (whichever yields the lesser percentage).
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\5\ ``Declared'' facilities that engaged in certain export and/
or import activities involving Schedule 2 chemicals must submit such
export/import information as part of their declarations, if the
exported/imported chemicals are the same as those chemicals that
were declared as produced, processed, and/or consumed by such
facilities. ``Declared'' facilities that engaged in export and/or
import activities involving Schedule 2 chemicals that were different
from those produced, processed, and/or consumed by such facilities
above the applicable declaration threshold must report such
activities to BIS either with their respective declarations or in a
separate report. ``Undeclared'' facilities or trading companies that
engaged in export and/or import activities involving Schedule 2
chemicals also must report such information to BIS. (See Section
713.3(a) of the CWCR and the Notes thereto.)
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The impact of implementing OPCW Decision C-14/DEC.4 in the CWCR is
illustrated, below, by using the production of the Schedule 2A chemical
Perfluoroisobutene (PFIB), also known as 1,1,3,3,3-Pentafluoro-2-
(trifluoromethyl)-1-propene, as an example. The CWCR implement the
declaration requirements in the CWC that apply if at least one plant at
a plant site produces, processes, or consumes more than 100 kg of PFIB
during a calendar year (i.e., the declaration threshold for PFIB).
Additionally, the CWCR impose the CWC inspection/verification
requirements for the production, processing, or consumption of more
than 1 MT of PFIB (i.e., the verification threshold for PFIB). Using
the declaration and verification thresholds for PFIB, a number of
possible scenarios are described below to clarify how these proposed
amendments would operate in practice.
(1) If the calendar year production of PFIB at one or more plants
on a plant site totaled 90 kg of PFIB as a mixture containing PFIB at a
concentration of 11%, then the Schedule 2A chemical declaration
requirements in the CWCR would not apply, because the total amount of
PFIB produced by one or more plants on the plant site did not exceed
the declaration threshold of 100 kg. In addition, if the plant site (or
a person or trading company) exported or imported a total of 90 kg of
PFIB as a mixture containing PFIB at a concentration of 11%, then the
CWCR declaration/reporting requirements for exports and imports of
Schedule 2A chemicals would not apply, because the total amount of PFIB
exported or imported did not exceed the applicable declaration/
reporting threshold for exports or imports (100 kg). In both scenarios,
the concentration of PFIB in
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the mixture is irrelevant, because the total quantity of PFIB did not
exceed the applicable declaration and/or reporting threshold.
(2) If the calendar year production of PFIB at one or more plants
on a plant site totaled 1.1 MT of PFIB as a mixture containing PFIB at
a concentration of 1%, then the Schedule 2A chemical declaration
requirements in the CWCR would not apply to the quantity of PFIB in the
mixture. This would be the outcome under the new low concentration
exemption being considered by BIS, because the amount of PFIB in
mixtures containing 1% or less of PFIB does not have to be counted, for
purposes of the Schedule 2A declaration requirements, even if the total
amount of PFIB produced, processed, or consumed at one or more plants
on a plant site exceeds the applicable verification threshold (1 MT).
If such a mixture were exported or imported, then the CWCR declaration/
reporting requirements for exports or imports of Schedule 2A chemicals
would not apply to the quantity of PFIB in the mixture, because the
concentration of PFIB in the mixture (1% PFIB) does not exceed the 10%
low concentration exemption for mixtures containing Schedule 2A
chemicals.
(3) If the calendar year production of PFIB at one or more plants
on a plant site totaled 900 kg of PFIB as a mixture containing PFIB at
a concentration of 10%, then the Schedule 2A declaration requirements
in the CWCR would not apply to the quantity of PFIB in the mixture,
because the total amount of PFIB produced at one or more plants on the
plant site did not exceed the 1 MT verification threshold and,
therefore, the 10% low concentration exemption for mixtures containing
Schedule 2A chemicals would apply (i.e., the amount of PFIB in mixtures
containing PFIB at a concentration of 10% or less does not have to be
counted for purposes of the CWCR declaration requirements for the
production, processing, or consumption of Schedule 2A chemicals when
the total amount of PFIB produced, processed, or consumed at one or
more plants on a plant site during a calendar year does not exceed the
applicable verification threshold). If a plant site (or a person or
trading company) exported or imported the same quantity of PFIB (900
kg) as a mixture containing 10% PFIB, then the CWCR declaration/
reporting requirements for exports or imports of Schedule 2A chemicals
would not apply to the quantity of PFIB in the mixture. This is because
even though the total amount of PFIB exported or imported (900 kg)
exceeds the applicable CWCR declaration threshold (100 kg), a mixture
that contains 10% PFIB would not exceed the 10% low concentration
exemption for mixtures containing Schedule 2A chemicals.
(4) If the calendar year production of PFIB at one or more plants
on a plant site totaled 1.1 MT of PFIB as a mixture containing a
concentration of 10% PFIB, then the Schedule 2A declaration
requirements in the CWCR would apply to the quantity of PFIB in the
mixture, because 1.1 MT of PFIB exceeds the 1 MT verification
threshold, which means that the applicable low concentration exemption
for mixtures containing Schedule 2A chemicals would be 1% or less,
instead of 10% or less (the latter exemption level applies when the
total amount of PFIB produced, processed, or consumed at one or more
plants at a plant site does not exceed the 1 MT verification
threshold). Under these circumstances, the amount of PFIB in mixtures
of PFIB with a concentration of more than 1% must be included in the
calculation of the amount produced, processed, or consumed, for
declaration purposes. If a plant site (or a person or trading company)
exported or imported the same quantity of PFIB (1.1 MT) as a mixture
containing PFIB at a concentration of 10%, the CWCR declaration/
reporting requirements for exports or imports of Schedule 2A chemicals
would not apply to the quantity of PFIB in the mixture, because a
mixture containing 10% PFIB does not exceed the 10% low concentration
exemption for mixtures containing Schedule 2A chemicals.
(5) If the calendar year production of PFIB at one or more plants
on a plant site totaled 900 kg of PFIB as a mixture containing PFIB at
a concentration of 11%, then the declaration requirements in the CWCR
would apply to the quantity of PFIB in the mixture, because 900 kg of
PFIB exceeds the 100 kg declaration threshold and a mixture that
contains PFIB at a concentration of 11% exceeds the 10% low
concentration exemption, which applies when the total amount of a
Schedule 2A chemical produced, processed, or consumed at one or more
plants at a plant site does not exceed the verification threshold (1 MT
of PFIB). Under these circumstances, the quantity of PFIB in mixtures
containing PFIB at a concentration of more than 10% must be included in
the calculation of the amount produced, processed, or consumed, for
declaration purposes. If a plant site (or a person or trading company)
exported or imported the same quantity of PFIB (900 kg) as a mixture
containing PFIB at a concentration of 11%, then the CWCR declaration/
reporting requirements for exports or imports of Schedule 2A chemicals
would apply to the quantity of PFIB in the mixture because the total
amount of PFIB exported or imported (900 kg) exceeds the applicable
declaration/reporting requirement threshold in the CWCR (100 kg) and a
mixture that contains PFIB at a concentration of 11% exceeds the 10%
low concentration exemption for mixtures containing Schedule 2A
chemicals.
BIS is seeking public comments on the potential effects of amending
the CWCR declaration requirements that apply to the production,
processing, and consumption of Schedule 2A chemicals by reducing the
concentration level at which certain mixtures containing low
concentrations of Schedule 2A chemicals would be exempt from these
requirements. Specifically, the current exemption, which applies when
the concentration of the Schedule 2A chemical in the mixture is ``less
than 30%'' by volume or weight (whichever method yields the lesser
percentage), would be replaced by a two-tiered exemption under which
the following mixtures would be exempt: (1) Mixtures containing a
Schedule 2A chemical at a concentration of ``1% or less'' by volume or
weight (whichever method yields the lesser percentage) and (2) mixtures
containing a Schedule 2A chemical at a concentration of ``more than 1%,
but less than or equal to 10%'' by volume or weight (whichever method
yields the lesser percentage), provided that the total amount of the
Schedule 2A chemical produced, processed, or consumed at one or more
plants on a plant site during a calendar year is less than the
applicable verification threshold in the CWCR. The public comments
received in response to this notice of inquiry will assist BIS in
assessing the impact of this change on U.S. persons involved in the
production, processing, or consumption of Schedule 2A chemicals.
Additionally, BIS is seeking public comments on the potential
effects of amending the CWCR declaration/reporting requirements that
apply to certain exports or imports of Schedule 2A chemicals by
reducing the exemption for mixtures containing low concentrations of
Schedule 2A chemicals from the current level of ``less than 30%'' by
volume or weight (whichever yields the lesser percentage) to a
concentration of ``10% or less'' by volume or weight (whichever yields
the lesser percentage). In particular, BIS seeks comments on the
potential impact of these changes on costs, operations, and trade.
[[Page 41370]]
Finally, BIS is seeking public comments on the anticipated impact
of these changes with respect to an existing collection of information
subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
(PRA). 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
PRA, unless that collection of information displays a currently valid
Office of Management and Budget (OMB) Control Number. The changes that
are being considered by BIS would revise an existing collection of
information subject to the requirements of the PRA. This collection has
been approved by OMB under Control Number 0694-0091 (Chemical Weapons
Convention--Declaration and Report Forms), which carries burden hour
estimates of 10.6 hours for Schedule 1 Chemicals, 11.9 hours for
Schedule 2 chemicals, 2.5 hours for Schedule 3 chemicals, 5.3/5.1/5.1
hours for unscheduled discrete organic chemicals (includes Annual
Declaration on Past Activities, No Changes Authorization Form, and
Change in Inspection Status Form, respectively), and 0.17 hours for
Schedule 1 notifications.
Specifically, these changes would affect this approved information
collection with respect to information collection activities (e.g.,
declarations, reports, recordkeeping) involving CWC Schedule 2A
chemicals that are subject to declaration and/or reporting requirements
under the CWCR. In this regard, BIS is seeking comments that address
the anticipated impact of the changes being considered by BIS on the
burden hours and costs associated with Schedule 2A chemical activities
under this approved information collection.
Send comments regarding this collection of information, including
suggestions for reducing the burden, to Jasmeet Seehra, Office of
Management and Budget (OMB), and to the Regulatory Policy Division,
Bureau of Industry and Security, Department of Commerce, as indicated
in the ADDRESSES section of this notice.
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 August 12, 2011. 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) 482-2165, for assistance.
Dated: July 1, 2011.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2011-17488 Filed 7-12-11; 8:45 am]
BILLING CODE 3510-33-P