[Federal Register Volume 88, Number 85 (Wednesday, May 3, 2023)]
[Proposed Rules]
[Pages 27815-27818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-09322]
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DEPARTMENT OF COMMERCE
Census Bureau
15 CFR Part 30
[DOCKET NO. 230421-0109]
RIN 0607-AA61
Foreign Trade Regulations (FTR): State Department Directorate of
Defense Trade Controls Filing Requirement and Clarifications to Current
Requirements
AGENCY: Census Bureau, Commerce Department.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Census Bureau is proposing to amend its regulations to
reflect new export reporting requirements related to the State
Department, Directorate of Defense Trade Controls (DDTC) Category XXI
Determination Number. Specifically, the Census Bureau is proposing to
add a conditional data element, DDTC Category XXI Determination Number,
when ``21'' is selected in the DDTC USML Category Code field in the
Automated Export System (AES) to represent United States Munitions List
(USML) Category XXI. In addition to the new export reporting
requirement, the proposed rule would make remedial changes to the
Foreign Trade Regulations (FTR) to update International Traffic in Arms
Regulations (ITAR) references in existing data elements: DDTC
Significant Military Equipment Indicator and DDTC Eligible Party
Certification Indicator. The proposed rule also makes remedial changes
to the FTR that were proposed in the Notice of Proposed Rulemaking
published December 15, 2021.
DATES: Written comments must be received on or before July 3, 2023.
ADDRESSES: You may submit comments by any of the following methods:
[[Page 27816]]
Federal eRulemaking Portal: https://www.regulations.gov.
The identification number for this rulemaking is identified by RIN
0607-AA61; or
By email directly to census.gov">gtmd.ftrnotices@census.gov. Include
RIN 0607-AA61 in the subject line.
All comments received are part of the public record. No comments
will be posted to https://www.regulations.gov for public viewing until
after the comment period has closed. Comments will generally be posted
without change. All Personally Identifiable Information (for example,
name and address) voluntarily submitted by the commenter may be
publicly accessible. Do not submit confidential business information or
otherwise sensitive or protected information.
FOR FURTHER INFORMATION CONTACT: Lisa E. Donaldson, Chief, Economic
Management Division, Census Bureau by phone (301) 763-7296 or by email
census.gov">lisa.e.donaldson@census.gov.
SUPPLEMENTARY INFORMATION:
Background
The Census Bureau is responsible for collecting, compiling, and
publishing export trade statistics for the United States under the
provisions of title 13, United States Code (U.S.C.), chapter 9, section
301. Additionally, the Census Bureau is responsible for publishing the
Foreign Trade Regulations (FTR) that set the export reporting
requirements for Electronic Export Information (EEI). The EEI is made
up of mandatory, conditional, and optional data elements. The purpose
of this rulemaking is to add a conditional data element, Directorate of
Defense Trade Controls (DDTC) Category XXI Determination Number, when
``21'' (see Appendix L of the Automated Export System Trade Interface
Requirements (AESTIR)) is selected in the DDTC United States Munitions
List (USML) Category Code field in the EEI. The FTR defines the DDTC
USML Category Code as the USML category of the article being exported
(22 CFR part 121).
The Congressional mandate in Public Law 106-113 that amended
section 301, of title 13 of the U.S. Code authorized the Secretary of
Commerce to require the mandatory electronic filing of export
information through the Automated Export System (AES) for items
identified in the Commerce Control List (CCL) and the USML. Under the
authorities in chapter 9 of title 13, the Secretary of Commerce
proposes to collect additional data on the export of items under DDTC
USML Category Code ``21'' to identify and validate which commodities
DDTC USML Category Code ``21'' was cited for.
The DDTC Category XXI Determination Number is a unique number
issued by DDTC in conjunction with a notification that a specific
commodity is described in USML Category XXI. Information on valid USML
Category XXI determinations and the prospective AES error code may be
found in the Frequently Asked Questions section of DDTC's website
(www.pmddtc.state.gov).
The Census Bureau is seeking public comments from data users,
businesses and others to assess this proposed change. Below are
considerations when providing feedback to this proposed rule; however,
any pertinent feedback not captured by these considerations is welcome.
1. Describe the potential value of adding the DDTC Category XXI
Determination Number to the EEI.
2. How long would a company that utilizes or manages proprietary
software need to make programming changes to potentially add the DDTC
Category XXI Determination Number field to its interface to the AES?
3. Are there business practices that a company would need to
implement in order to come into compliance with the reporting of the
DDTC Category XXI Determination Number field? If so, how long would a
company need to implement new business practices?
The proposed rule also makes remedial changes to the FTR that were
proposed in the Notice of Proposed Rulemaking published December 15,
2021 in the Federal Register, Volume 86, No. 238 (2021-26874.pdf
(census.gov), and comments to these changes were favorable.
Finally, the U.S. Department of Homeland Security and the U.S.
Department of State concur with the revisions to the FTR as required by
13 U.S.C. 302, and Public Law 107-228, division B, title XIV, section
1404.
Program Requirements
Pursuant to the Foreign Relations Act, Public Law 107-228 and 13
U.S.C. 301 302, the Census Bureau is amending relevant sections of the
FTR to revise or clarify export reporting requirements. Therefore, the
Census Bureau is proposing to amend 15 CFR part 30 by making the
following amendments:
Revise Sec. 30.2(d)(3) to remove the language, ``(See
subpart B of this part for export control requirements for these types
of transactions.),'' as the exclusion overrides the export control
requirements.
Revise Sec. 30.6(a)(1)(iii) to clarify that when the Dun
and Bradstreet Number (DUNS) is reported as the U.S. Principal Party in
Interest (USPPI) Identification Number, the Employer Identification
Number (EIN) of the USPPI also is required to be reported in the
Automated Export System.
Revise Sec. 30.6(b)(3) to amend the Foreign Trade Zone
(FTZ) identifier to allow for 9-digits. The increased number of digits
is required because of the increase in the number of subzones.
Revise Sec. 30.6(b)(16)(ii) to amend the DDTC Significant
Military Equipment (SME) indicator by updating the ITAR references as a
result of DDTC relocating certain ITAR provisions to improve the
overall structure of the ITAR.
Revise Sec. 30.6(b)(16)(iii) to amend the DDTC eligible
party certification indicator by updating the ITAR references as a
result of DDTC relocating certain ITAR provisions to improve the
overall structure of the ITAR.
Revise Sec. 30.6(b)(16)(ix) to add the conditional data
element ``DDTC Category XXI Determination Number.'' The ``DDTC Category
XXI Determination Number'' will be the unique number issued by DDTC to
a member of the regulated community (usually the original equipment
manufacturer) in conjunction with a notification that a specific
commodity is described in USML Category XXI. This number is required
only when citing Category XXI as an export classification and is used
to confirm that an authoritative DDTC USML Category XXI determination
is being referenced to do so.
Revise Sec. 30.37(u) to remove and reserve the exemption
for technical data. This exemption is covered under Sec. 30.2(d)(3),
making the exemption redundant.
Revise Sec. 30.55 to remove the citation ``19 CFR 103.5''
and add in its place ``19 CFR part 103.''
Revise Sec. 30.71 to amend the Note to paragraph (b) to
address the yearly adjustments for civil penalties as a result of
inflation.
Revise Sec. 30.74 to amend paragraph (c)(5) to remove
information that may become outdated and referencing the Census Bureau
website to obtain the most current method for submitting a Voluntary
Self-Disclosure.
Rulemaking Requirements
Regulatory Flexibility Act
The Chief Council for Regulation of the Department of Commerce has
certified to the Chief Counsel for Advocacy, Small Business
Administration that this proposed rule will not have a significant
economic impact on a substantial number of small entities.
[[Page 27817]]
In the current Foreign Trade Regulations, the Electronic Export
Information (EEI) shall be filed through the Automated Export System
(AES) for all exports of physical goods. The AES is the electronic
system for collecting Shipper's Export Declaration (SED) (or any
successor document) information from persons exporting goods from the
United States, Puerto Rico, Foreign Trade Zones located in the United
States and Puerto Rico, the U.S. Virgin Islands, between the U.S. and
Puerto Rico, and to the U.S. Virgin Islands from the United States or
Puerto Rico. In the proposed revisions, export shipments with ``21'' in
the DDTC USML Category Code field will be required to report the DDTC
Category XXI Determination Number.
In calendar year 2022, authorized agents and U.S. Principal Parties
in Interest reported the DDTC USML Category Code of ``21'' on 0.6% of
EEI records. A large majority of the EEI records involved export
shipments of defense articles from branches of the Department of
Defense. Based on these statistics, the Census Bureau believes this
proposed rule will not create any economic impact on all companies
including a substantial number of small entities.
Executive Orders
This proposed rule has been determined to not be significant for
purposes of Executive Order 12866. This proposed rule does not contain
policies with federalism implications sufficient to warrant preparation
of a federalism assessment under Executive Order 13132.
Paperwork Reduction Act
Notwithstanding any other provisions of law, no person is required
to respond to, nor shall a person be subject to, a penalty for failure
to comply with a collection of information subject to the requirements
of the Paperwork Reduction Act (PRA) unless that collection of
information displays a valid Office of Management and Budget (OMB)
control number.
This proposed rule covers collections of information subject to the
provisions of the PRA, which are cleared by OMB under OMB Control
Number 0607-0152--AES Program.
This proposed rule will not impact the current reporting-hour
burden requirements as approved under OMB Control Number 0607-0152
under provisions of the PRA. The proposed rule will not require any
revisions to the information sought under OMB Control Number 0607-0152.
Robert L. Santos, Director, Census Bureau, approved the publication of
this notification in the Federal Register.
List of Subjects in 15 CFR Part 30
Economic statistics, Exports, Foreign trade, Reporting and
recordkeeping requirements.
For the reasons set out in the preamble, the Census Bureau is
proposing to amend 15 CFR part 30 as follows:
PART 30--FOREIGN TRADE REGULATIONS
0
1. The authority citation for 15 CFR part 30 continues to read as
follows:
Authority: 5 U.S.C. 301; 13 U.S.C. 301-307; Reorganization plan
No. 5 of 1990 (3 CFR 1949-1953 Comp., p.1004); Department of
Commerce Organization Order No. 35-2A, July 22, 1987, as amended,
and No. 35-2B, December 20, 1996, as amended; Public Law 107-228,
116 Stat. 1350.
0
2. Amend Sec. 30.2 by revising paragraph (d)(3) to read as follows:
Sec. 30.2 General requirements for filing Electronic Export
Information (EEI).
* * * * *
(d) * * *
(3) Electronic transmissions and intangible transfers.
* * * * *
0
3. Amend Sec. 30.3 by revising paragraphs (e)(1)(ii) to read as
follows:
Sec. 30.3 Electronic Export Information filer requirements, parties
to export transactions, and responsibilities of parties to export
transactions.
* * * * *
(e) * * *
(1) * * *
(ii) USPPI's EIN or DUNS.
* * * * *
0
4. Amend Sec. 30.6 by revising paragraphs (a)(1)(iii), (b)(3),
(b)(16)(ii) and (iii), and adding paragraph (b)(16)(ix) to read as
follows:
Sec. 30.6 Electronic Export Information data elements.
* * * * *
(a) * * *
(1) * * *
(iii) USPPI identification number. Report the Employer
Identification Number (EIN) of the USPPI. If the USPPI has only one
EIN, report that EIN. If the USPPI has more than one EIN, report the
EIN that the USPPI uses to report employee wages and withholdings, and
not the EIN used to report only company earnings or receipts. Use of
another company's EIN is prohibited. If a USPPI reports a DUNS, the EIN
is also required to be reported. If a foreign entity is in the United
States at the time goods are purchased or obtained for export, the
foreign entity is the USPPI. In such situations, when the foreign
entity does not have an EIN, the authorized agent shall report a border
crossing number, passport number, or any number assigned by CBP on
behalf of the foreign entity.
* * * * *
(b) * * *
(3) FTZ identifier. If goods are removed from a FTZ and not entered
for consumption, report the FTZ identifier. This is the unique 9-digit
alphanumeric identifier assigned by the Foreign Trade Zone Board that
identifies the FTZ, subzone or site from which goods are withdrawn for
export.
* * * * *
(16) * * *
(ii) DDTC Significant Military Equipment (SME) indicator. A term
used to designate articles on the USML (22 CFR part 121) for which
special export controls are warranted because of their capacity for
substantial military utility or capability. See sections 120.36 and
120.10(c) of the ITAR (22 CFR parts 120 through 130) for a definition
of SME and for items designated as SME articles, respectively.
(iii) DDTC eligible party certification indicator. Certification by
the U.S. exporter that the exporter is an eligible party to participate
in defense trade. See 22 CFR 120.16(c). This certification is required
only when an exemption is claimed.
* * * * *
(ix) DDTC Category XXI Determination Number. The unique number
issued by DDTC to a member of the regulated community (usually the
original equipment manufacturer) in conjunction with a notification
that a specific commodity is described in USML Category XXI. This
number is required only when citing USML Category XXI as an export
classification and is used to confirm that an authoritative USML
Category XXI determination is being referenced to do so.
* * * * *
Sec. 30.37 [Amended]
0
5. Amend Sec. 30.37 by removing and reserving paragraph (u).
0
6. Amend Sec. 30.55 by revising the introductory text to read as
follows:
Sec. 30.55 Confidential information, import entries, and withdrawals.
The contents of the statistical copies of import entries and
withdrawals on file with the Census Bureau are treated as confidential
and will not be released without authorization by CBP, in accordance
with 19 CFR part 103
[[Page 27818]]
relating to the copies on file in CBP offices. The importer or import
broker must provide the Census Bureau with information or documentation
necessary to verify the accuracy or resolve problems regarding the
reported import transaction.
* * * * *
0
7. Amend Sec. 30.71 by revising the note to paragraph (b) to read as
follows:
Sec. 30.71 False or fraudulent reporting on or misuse of the
Automated Export System.
* * * * *
Note 1 to paragraph (b): The civil monetary penalties are
adjusted for inflation annually based on The Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410; 28 U.S.C. 2461),
as amended by the Debt Collection Improvement Act of 1996 (Pub. L.
104-134) and the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Section 701 of Pub. L. 114-74). In
accordance with this Act, as amended, the penalties in title 13,
chapter 9, sections 304 and 305(b), United States Code are adjusted
and published each year in the Federal Register no later than
January 15th.
0
8. Amend Sec. 30.74 by revising paragraph (c)(5) to read as follows:
Sec. 30.74 Voluntary self-disclosure.
* * * * *
(c) * * *
(5) Where to make voluntary self-disclosures. The information
constituting a Voluntary Self-Disclosure or any other correspondence
pertaining to a Voluntary Self-Disclosure may be submitted to the U.S.
Census Bureau, Branch Chief, Trade Regulations Branch by methods
permitted by the Census Bureau. See www.census.gov/trade for more
details.
* * * * *
Dated: April 25, 2023.
Shannon Wink,
Program Analyst, Policy Coordination Office, U.S. Census Bureau.
[FR Doc. 2023-09322 Filed 5-2-23; 8:45 am]
BILLING CODE 3510-07-P