Reporting and Recordkeeping Requirements Under the Wassenaar Arrangement

DEPARTMENT OF COMMERCE

Bureau of Export Administration

Reporting and Recordkeeping Requirements Under the Wassenaar

Arrangement

ACTION: Proposed collection; comment request.

-----------------------------------------------------------------------

SUMMARY: The Department of Commerce, as part of its continuing effort

to reduce paperwork and respondent burden, invites the general public

and other Federal agencies to take this opportunity to comment on

proposed and/or continuing information collections, as required by the

Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C.

3506(c)(2)(A)).

DATES: Written comments must be submitted on or before January 16,

1998.

ADDRESSES: Direct all written comments to Linda Engelmeier,

Departmental Forms Clearance Officer, Department of Commerce, Room

5327, 14th and Constitution Avenue, NW, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or

copies of the information collection instrument(s) and instructions

should be directed to Stephen Baker, Bureau of Export Administration

(BXA), Department of Commerce, Room 6877, 14th and Constitution Avenue,

NW, Washington, DC 20230 (telephone no. (202)482-3673).

SUPPLEMENTARY INFORMATION:

I. Abstract

The information required by this collection is required biannually

from all exporters of certain items specified in section 743.1 of the

Export Administration Regulations controlled for national security

reasons on the Commerce Control List and exported under certain License

Exceptions.

A--Items controlled and decontrolled by the list. With the

publication of the Wassenaar Arrangement's Dual-Use List, some items

will be decontrolled for national security reasons and new controls

will be placed on some items. BXA estimates that we will receive

approximately 75 fewer applications because of these decontrols. But,

this will be counteracted be approximately 45 new applications because

of some new items added to the list.

B--Reporting and recordkeeping on license exceptions. Under the

Wassenaar Arrangement, the U.S. Government must report twice a year to

the other members on aggregate usage of 81 export control entries. The

aggregate numbers are readily available from BXA's Export Control

Automated Support System (ECASS), except when a licensing exception is

used. It is very difficult for BXA to determine usage of licensing

exceptions because the exporter determines if the licensing exception

applies to a certain commodity and then exports that commodity if the

licensing exception applies. BXA receives no record of licensing

exception uses.

Because one or more of six licensing exceptions could be used with

the 81 export control entries subject to Wassenaar Arrangement

reporting, BXA must require exporters to keep a record of each time

they use a licensing exception for one of the 81 export control entries

(except for the destinations identified in Country Group A:1 of

Supplement No. 1 to part 740 of the EAR) and submit this report to BXA

biannually in time for the U.S. Government to make its report to the

Wassenaar members.

C--Removing license exception availability. The Wassenaar

Arrangement's Dual-Use List is composed of three parts: the Basic List,

the Sensitive List and the Very Sensitive List. The United States

allows some items on the Sensitive List to be shipped to some

destinations using a licensing exception. The reporting and

recordkeeping requirements described above will enable the United

States to keep watch over these items. Currently, the United States

also permits some items on the Very Sensitive List to be exported to

some destinations using a licence exception. Therefore, in deference to

our partners in the Wassenaar Arrangement, the United States is

withdrawing the license exception privilege for any item on the Very

Sensitive List. These items are mainly for licensing exception TSR,

``Technology and Software under Restriction.''

D--Removing license exceptions for missile tech items. The rule

implementing the Wassenaar Arrangement's Dual-Use List removes license

exception availability for missile technology controlled items. The

decision to remove license exception availability was an interagency

based agreement, particularly consultations with the Department of

State.

II. Method of Collection

The information will be collected in electronic and written form.

III. Data

OMB Number: 0694-0106.

Form Number: N/A.

Type of Review: Regular Submission.

Affected Public: Businesses and other for-profit institutions,

small businesses or organizations.

Estimated Number of Respondents: 2,275.

Estimated Time Per Response: 12 minutes.

Estimated Total Annual Burden Hours: 851 hours.

Estimated Total Annual Cost: $17,020 for respondents--no equipment

or other materials will need to be purchased to comply with the

requirement.

IV. Request for Comments

Comments are invited on: (a) Whether the proposed collection of

information is necessary for the proper performance of the function of

the agency, including whether the information shall have practical

utility; (b) the accuracy of the agency's estimate of the burden

(including hours and cost) of the proposed collection of information;

(c) ways to enhance the quality, utility, and clarity of the

information to be collected; and (d) ways to minimize the burden of the

collection of information on respondents, including through the use of

automated collection techniques or other forms of information

technology.

Comments submitted in response to this notice will be summarized

and/or included in the request for OMB approval of this information

collection; they also will become a matter of public record.

Dated: November 10, 1997.

Linda Engelmeier,

Departmental Forms Clearance Officer, Office of Management and

Organization.

[FR Doc. 97-30093 Filed 11-14-97; 8:45 am]

BILLING CODE 3510-33-P