Restrictive Trade Practices or Boycotts

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 769

[Docket No. 960322091-6091-01]

RIN 0694-XX05

Restrictive Trade Practices or Boycotts

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) published a notice

on February 1, 1995 (61 FR 3669) designed to clarify and update the

foreign boycott provisions of the Export Administration Regulations

(EAR). BXA is now issuing a final rule based on that notice.

Specifically, this rule amends the EAR by adding a new Supplement

No. 17 to the foreign boycott provisions of the EAR (part 769). This

Supplement states that it is the Department's position that, given the

Hashemite Kingdom of Jordan's formal termination

[[Page 14244]]

of its participation in the Arab economic boycott of Israel on August

16, 1995, certain requests for information, action or agreement from

Jordan which were considered boycott-related by implication now cannot

be presumed boycott-related and thus would not be prohibited or

reportable under the foreign boycott provisions of the EAR. In

addition, Supplement No. 17 reminds U.S. persons that requests that are

on their face boycott-related or that are for action obviously in

furtherance or support of an unsanctioned foreign boycott are subject

to the foreign boycott provisions of the EAR, irrespective of the

country of origin.

EFFECTIVE DATE: This rule is effective April 1, 1996.

FOR FURTHER INFORMATION CONTACT: Frederick S. Davidson, Esq.,

Compliance Policy Division, Office of Antiboycott Compliance, U.S.

Department of Commerce, 202-482-2381.

SUPPLEMENTARY INFORMATION:

Rulemaking Requirements

1. This final rule has been determined to be not significant for

purposes of E.O. 12866.

2. This rule involves collections of information subject to the

Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.).

These collections have been approved by the Office of Management

and Budget under control numbers 0694-0012 and 0694-0058.

Notwithstanding any other provision 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 unless that collection of information

displays a currently valid OMB Control Number.

3. This final rule does not contain policies with Federalism

implications sufficient to warrant preparation of a Federalism

assessment under Executive Order 12612.

4. The provisions of the Administrative Procedure Act, 5 U.S.C.

553, requiring notice of proposed rulemaking, the opportunity for

public participation, and a delay in effective date, are inapplicable

because this regulation involves a foreign and military affairs

function of the United States. No other law requires that a notice of

proposed rulemaking and an opportunity for public comment be given for

this rule.

5. Because a notice of proposed rulemaking and an opportunity for

public comment are not required to be given for this rule under section

553 of the Administrative Procedure Act (5 U.S.C. 553), or by any other

law, under sections 3(a) and 4(a) of the Regulatory Flexibility Act (5

U.S.C. 603(a) and 604(a)), no initial or final Regulatory Flexibility

Analysis has to be or will be prepared.

List of Subjects in 15 CFR part 769

Boycotts, Foreign trade, Reporting and recordkeeping requirements,

Restrictive trade practices, Trade practices.

Accordingly, part 769 of the Export Administration Regulations (15

CFR parts 730-799) is amended as follows:

PART 769A--[AMENDED]

1. The authority citation for 15 CFR part 769 is revised to read as

follows:

Authority: Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et

seq.); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et seq.), as

amended (extended by Pub. L. 103-10, 107 Stat. 40); E.O. 12002 of

July 7, 1977 (42 FR 35623, July 7, 1977), as amended; E.O. 12058 of

May 11, 1978 (43 FR 20947, May 16, 1978); E.O. 12214 of May 2, 1980

(45 FR 29783, May 6, 1980); E.O. 12730 of September 30, 1990 (55 FR

40373, October 2, 1990), as continued by Notice of September 25,

1992 (57 FR 44649, September 28, 1992); E.O. 12924 of August 19,

1994 (59 FR 43437, August 23, 1994); and Notice of August 15, 1995,

60 FR 42767.

2. Part 769 currently in effect is amended by adding a new

Supplement No. 17 to read as follows:

Supplement No. 17 To Part 769

Pursuant to Articles 5, 7, and 26 of the Treaty of Peace between

the State of Israel and the Hashemite Kingdom of Jordan and

implementing legislation enacted by Jordan, Jordan's participation

in the Arab economic boycott of Israel was formally terminated on

August 16, 1995.

On the basis of this action, it is the Department's position

that certain requests for information, action or agreement from

Jordan which were considered boycott-related by implication now

cannot be presumed boycott-related and thus would not be prohibited

or reportable under the regulations. For example, a request that an

exporter certify that the vessel on which it is shipping its goods

is eligible to enter Hashemite Kingdom of Jordan ports has been

considered a boycott-related request that the exporter could not

comply with because Jordan has had a boycott in force against

Israel. Such a request from Jordan after August 16, 1995 would not

be presumed boycott-related because the underlying boycott

requirement/basis for the certification has been eliminated.

Similarly, a U.S. company would not be prohibited from complying

with a request received from Jordanian government officials to

furnish the place of birth of employees the company is seeking to

take to Jordan because there is no underlying boycott law or policy

that would give rise to a presumption that the request was boycott-

related.

U.S. persons are reminded that requests that are on their face

boycott-related or that are for action obviously in furtherance or

support of an unsanctioned foreign boycott are subject to the

regulations, irrespective of the country of origin. For example,

requests containing references to ``blacklisted companies'',

``Israel boycott list'', ``non-Israeli goods'' or other phrases or

words indicating boycott purpose would be subject to the appropriate

provisions of the Department's antiboycott regulations.

Dated: March 22, 1996.

John Despres,

Assistant Secretary for Export Enforcement.

[FR Doc. 96-7846 Filed 3-29-96; 8:45 am]

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