[Federal Register Volume 67, Number 188 (Friday, September 27, 2002)]
[Proposed Rules]
[Pages 61047-61049]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-24458]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Chapter VII
[Docket No. 020725178-2178-01]
Effects of Foreign Policy-Based Export Controls
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Request for comments on foreign policy-based export controls.
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SUMMARY: The Bureau of Industry and Security 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to determine whether they should be modified, rescinded, or extended.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 public comments on
how existing foreign policy-based export controls have affected
exporters and the general public.
DATES: Comments must be received by November 29, 2002.
ADDRESSES: Written comments (three copies) should be sent to Sheila
Quarterman, Regulatory Policy Division, Office of Exporter Services,
Bureau of
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Industry and Security, Department of Commerce, P.O. Box 273,
Washington, DC 20044. Comments may also be e-mailed to Brian Nilsson,
Office of Strategic Trade and Foreign Policy Controls, at
[email protected].
FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy
Controls Division, Office of Strategic Trade and Foreign Policy
Controls, Bureau of Industry and Security; Telephone: (202) 482-5400.
Copies of the current Annual Foreign Policy Report to the Congress are
available at www.bxa.doc.gov/press/2002/ForeignPolicyReport02/Default.htm.
Copies may also be requested by calling the Office of Strategic
Trade and Foreign Policy Controls.
SUPPLEMENTARY INFORMATION: The current foreign policy-based export
controls maintained by the Bureau of Industry and Security (BIS) are
set forth in the Export Administration Regulations (EAR), parts 742
(Commerce Control List Based Controls), 744 (End-User and End-Use Based
Controls), and 746 (Embargoes and Special Country Controls). These
controls apply to: high performance computers (Sec. 742.12);
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 and Sec.
744.9); crime control and detection commodities (Sec. 742.7);
specially designed implements of torture (Sec. 742.11); regional
stability commodities and equipment (Sec. 742.6); equipment and
related technical data used in the design, development, production, or
use of missiles (Sec. 742.5 and Sec. 744.3); chemical precursors and
biological agents, associated equipment, technical data, and software
related to the production of chemical and biological agents (Sec.
742.2 and Sec. 744.4); activities of U.S. persons in transactions
related to missile technology or chemical or biological weapons
proliferation in named countries (Sec. 744.6); nuclear propulsion
(Sec. 744.5); aircraft and vessels (Sec. 744.7); 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, 746.3, and
746.7); and, Libya (Sec. Sec. 744.8 and 746.4). 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 (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. Although the EAA expired on August 20, 2001, the President
invoked the International Emergency Economic Powers Act and continued
in effect the EAR, and, to the extent permitted by law, the provisions
of the EAA, in Executive Order of August 17, 2001 (66 FR 44025, August
22, 2001), as extended by the President's Notice of August 14, 2002 (67
FR 53721, August 16, 2002). In January 2002, 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. The Department
of Commerce, insofar as appropriate, is following the provisions of
Section 6 of the EAA in reviewing foreign policy-based export controls,
requesting public comments on such controls, and submitting an annual
report to Congress.
To assure maximum public participation in the review process,
comments are solicited on the extension or revision of 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 export controls will achieve the
intended foreign policy purpose, in light of other factors, including
the availability from other countries of the goods or technology
proposed for such controls;
2. Whether the foreign policy purpose of such controls can be
achieved through negotiations or other alternative means;
3. The compatibility of the export controls with the foreign policy
objectives of the U.S. and with overall U.S. policy toward the country
subject to the controls;
4. Whether reaction of other countries to the extension of such
export controls by the U.S. is not likely to render the controls
ineffective in achieving the intended foreign policy purpose or be
counterproductive to U.S. foreign policy interests;
5. The comparative benefits to U.S. foreign policy objectives
versus the effect of the export controls on the export performance of
the United States, the competitive position of the United States in the
international economy, and 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 export controls
effectively.
BIS is particularly interested in the experience of individual
exporters in complying with nonproliferation export controls, with
emphasis on economic impact and specific instances of business lost to
foreign competitors. BIS is 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 subject to sanctions), including the views of foreign
purchasers or prospective customers regarding U.S. foreign policy
controls.
2. Information on export controls maintained by U.S. trade partners
(i.e., to what extent do they have similar controls on goods and
technology on a worldwide basis or to specific destinations).
3. Information on licensing policies or practices by foreign trade
partners of the United States which are similar to U.S. foreign policy
export controls, including export license application review criteria,
use of export license conditions, and 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 (in the event there are differences) that would bring them
more into line with multilateral practice.
5. Comments or suggestions as to actions that would make
multilateral export controls more effective.
6. Information that illustrates the effect of foreign policy
controls on the trade or acquisitions by intended targets of the
controls.
7. Data or other information as to the effect of foreign policy-
based export controls on overall trade, either for individual firms or
for individual industrial sectors.
8. Suggestions as to how to measure the effect of foreign policy-
based export controls on U.S. trade.
9. Information on the use of foreign policy-based export controls
on targeted countries, entities, or individuals.
BIS is also interested in general comments relating to the
extension or revision of existing U.S. foreign policy-based export
controls.
Parties submitting comments are asked to be as specific as
possible. In the interest of accuracy and completeness, BIS requires
written comments. Oral comments must be followed by written memoranda.
All written comments received before the close of the comment period
will be considered by BIS in reviewing the foreign policy-
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based export controls and in developing the annual report to Congress.
All written comments and information submitted in response to this
notice will be a matter of public record and, therefore, will be
available for public inspection and copying. The BIS does not maintain
an on-site facility for the public to inspect public records. All
public records are posted on the BIS' Web site which can be found at
www.bis.doc.gov (click on the FOIA Reading Room link under the section
of Public Information and Events). Copies of the public record may also
be obtained by submitting a written request to the Bureau of Industry
and Security, Office of Administration, U.S. Department of Commerce,
Room 6883, 1401 Constitution Avenue, NW, Washington, DC 20230.
James J. Jochum,
Assistant Secretary for Export Administration.
[FR Doc. 02-24458 Filed 9-26-02; 8:45 am]
BILLING CODE 3510-33-P