[Federal Register Volume 76, Number 170 (Thursday, September 1, 2011)]
[Pages 54426-54428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21646]



Bureau of Industry and Security

[Docket No. 110722412-1428-01]

Effects of Foreign Policy-Based Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Request for comments.


SUMMARY: The Bureau of Industry and Security (BIS) seeks public 
comments on the effect of existing foreign policy-

[[Page 54427]]

based export controls in the Export Administration Regulations. BIS 
requests comments to comply with the requirements of Section 6 of the 
Export Administration Act (EAA) which requires BIS to consult with 
industry on the effect of such controls and report to Congress the 
results of that consultation. Comments from all interested persons are 
welcome. All comments will be made available for public inspection and 
copying and included in a report to be submitted to Congress.

DATES: Comments must be received by October 3, 2011.

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. All comments must be in writing 
(either e-mail or on paper). All comments, including Personal 
Identifying Information (e.g., name, address) voluntarily submitted by 
the commenter, will be a matter of public record and will be available 
for public inspection and copying. Do not submit confidential business 
information or otherwise sensitive or protected information.

FOR FURTHER INFORMATION CONTACT: Anthony Christino, Director, Foreign 
Policy Division, Office of Nonproliferation Controls 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/2011/2011_fpreport.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, (50 U.S.C. app. 
sections 2401-2420 (2000)) (EAA). The current foreign policy-based 
export controls maintained by the Bureau of Industry and Security (BIS) 
are set forth in the EAR (15 CFR parts 730-774), 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.  
     Encryption items (Sec.  742.15);
     Crime control and detection items (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 on the list of those chemicals controlled pursuant 
to the Chemical Weapons Convention (Sec.  742.18);
     Nuclear propulsion (Sec.  744.5);
     Aircraft and vessels (Sec.  744.7);
     Restrictions on exports and reexports to certain persons 
designated as proliferators of weapons of mass destruction (Sec.  
     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);
     Certain sanctioned entities (Sec.  744.20); and
     Certain cameras to be used by military end-users or 
incorporated into a military commodity (Sec.  744.9).
    In addition, the EAR impose foreign policy controls on nuclear-
related commodities, technology, end-uses and end-users (Sec. Sec.  
742.3 and 744.2), which are, in part, implemented under section 309(c) 
of the Nuclear Non Proliferation Act (42 U.S.C. 2139a).
    Under the provisions of Section 6 of the 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 Notice of August 12, 2011, 76 FR 50661 
(August 16, 2011), 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, as appropriate, continues to comply with the 
provisions of section 6 of the EAA 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 2011, 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 now solicits public comment on the effects of extending the 
existing foreign policy-based export controls for another year. Among 
the criteria considered in determining whether to extend U.S. foreign 
policy based export controls are the following:
    1. The likelihood that such controls will achieve their intended 
foreign policy purposes, 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 U.S. 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 U.S. 
foreign policy interests;
    5. The comparative benefits to U.S. foreign policy objectives 
versus the effect of the controls on the export

[[Page 54428]]

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; 
    6. The ability of the United States to effectively enforce the 
    BIS is particularly interested in receiving comments on the 
economic impact of proliferation controls. BIS is also interested in 
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, and 
requirements for pre- and post-shipment verifications (preferably 
supported by examples of approvals, denials and foreign regulations).
    4. Suggestions for bringing foreign policy-based export controls 
more into line with multilateral practice.
    5. Comments or suggestions to make multilateral controls more 
    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 for measuring 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 in developing 
the report to Congress. All comments received in response to this 
notice will be displayed on BIS's Freedom of Information Act (FOIA) Web 
site at http://www.bis.doc.gov/foia. All comments will be included in a 
report to Congress to comply with the requirement of Section 6 of the 
EAA, which directs that BIS report to Congress the results of its 
consultations with industry on the effects of foreign policy controls.

    Dated: August 2, 2011.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2011-21646 Filed 8-31-11; 8:45 am]