Request for Comments on Effects of Foreign Policy-Based Export Controls

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Ch. VII

[Docket No. 970925233-7233-01]

Request for Comments on Effects of Foreign Policy-Based Export

Controls

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Request for comments on foreign policy-based export controls.

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SUMMARY: The Bureau of Export Administration (BXA) 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Regulations to determine whether they should be modified, rescinded or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, BXA is seeking comments on

how existing foreign policy-based export controls have affected

exporters and the general public.

Under the provisions of section 6 of the Export Administration Act

of 1979, as amended (EAA), foreign policy controls expire one year

after imposition unless they are extended. The EAA requires a report to

Congress whenever foreign policy-based export controls are extended.

Although the EAA expired on August 20, 1994, the President, invoking

the International Emergency Powers Act (IEEPA), continued in effect the

export control system in place under the provisions of the Act and the

Export Administration Regulations, to the extent permitted by law

(Executive Order 12924 of August 19, 1994 and Notices of August 15,

1995, August 14, 1996 and August 13, 1997). The Department of Commerce,

insofar as appropriate, is following the provisions of section 6 in

reviewing foreign policy-based export controls and requesting comments

on such controls. Foreign Policy controls need to be extended in

January 1998.

DATES: Comments must be received by November 7, 1997, to assure full

consideration in the formulation of export control policies as they

relate to foreign policy-based controls.

ADDRESSES: Written comments (three copies) should be sent to Sharron

Cook, Regulatory Policy Division (Room 2096), Office of Exporter

Services, Bureau of Export Administration, Department of Commerce, P.O.

Box 273, Washington, DC 20044. If sending comments by courier, send to:

Department of Commerce, Bureau of Export Administration, Attn: Sharron

Cook, 14th Street and Pennsyvania Avenue, Room 2705, N.W., Washington,

D.C. 20230

FOR FURTHER INFORMATION CONTACT: Anita McNamee, Foreign Policy

Division, Office of Strategic Trade and Foreign Policy Controls, Bureau

of Export Administration, Telephone: (202) 482-4252. Copies of the

current Annual Foreign Policy Report to the Congress can also be

requested.

SUPPLEMENTARY INFORMATION: The current foreign policy controls

maintained by the Bureau of Export Administration (BXA) are set

forth in the Export Administration Regulations (EAR), parts 742(CCL

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):

Commercial communications satellites and Hot section technology for

the development, production or overhaul of commercial aircraft

engines, components, and systems (Sec. 742.14); encryption items

(EI) (Sec. 742.15); 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); embargoed countries (part 746); countries

designated as supporters of acts of international terrorism

(Secs. 742.8, 742.9, 742.10, 746.2, 746.3, 746.5, and 746.7); and,

Libya (Secs. 744.8, and 746.4). Attention is also given in this

context to the controls on nuclear-related commodities, software,

and technology (Sec. 742.3 and Sec. 744.2) which are, in part,

implemented under section 309(c) of the Nuclear Non Proliferation

Act.

Effective January 21, 1997, the Secretary of Commerce, on the

recommendation of the Secretary of State, extended for one year all

foreign policy controls then in effect.

To assure maximum public participation in the review process,

comments are solicited on the extension or revision of the existing

foreign policy controls for another year. Among the criteria the

Departments of Commerce and State consider in determining whether to

continue or revise U.S. foreign policy controls are the following:

1. The likelihood that such 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 controls with the foreign policy

objectives of the United States and with overall United States policy

toward the country subject to the controls;

4. The reaction of other countries to the extension of such

controls by the United States is not likely to render the controls

ineffective in achieving the intended foreign policy purpose or be

counterproductive to United States foreign policy interests;

5. The effect of the controls on the export 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, or the economic well-

being of individual United States companies and their employees and

communities does not exceed the benefit to United States foreign policy

objectives; and

6. The ability of the United States to enforce the controls

effectively.

BXA is particularly interested in the experience of individual

exporters in complying with the proliferation controls, with emphasis

on economic impact and specific instances of business lost to foreign

competitors. BXA is also interested in comments relating to the effects

of foreign policy controls on exports of replacement and other parts.

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 BXA in reviewing the controls and developing the

report to Congress.

BXA will consider requests for confidential treatment. The

information for which confidential treatment is requested should be

submitted to BXA separate from any non-confidential information

submitted. The top of each page should be marked with the term

``Confidential Information.'' BXA will either accept the submission in

confidence, or if the submission fails to meet the standards for

confidential treatment, will return it. A non-confidential summary must

accompany such submissions of confidential information. The summary

will be made available for public inspection.

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Information accepted by BXA as confidential will be protected from

public disclosure to the extent permitted by law. Communications

between agencies of the United States Government or with foreign

governments will not be made available for public inspection.

All other information relating to the notice will be a matter of

public record and will be available for public inspection and copying.

In the interest of accuracy and completeness, BXA requires written

comments. Oral comments must be followed by written memoranda, which

will also be a matter of public record and will be available for public

review and copying.

The public record concerning these comments will be maintained in

the Freedom of Information Records Inspection Facility, Room 4525, U.S.

Department of Commerce, 14th Street and Pennsylvania Avenue, NW,

Washington, D.C. 20230. Records in this facility, including written

public comments and memoranda summarizing the substance of oral

communications, may be inspected and copied in accordance with

regulations published in part 4 of title 15 of the Code of Federal

Regulations. Information about inspection and copying of records at

this facility may be obtained from Margaret Cornejo, BXA Freedom of

Information Officer, at the above address or by calling (202) 482-2593.

Dated: October 3, 1997.

William V. Skidmore,

Acting Assistant Secretary for Export Administration.

[FR Doc. 97-26695 Filed 10-7-97; 8:45 am]

BILLING CODE 3510-33-P