Establishment of 24-Month Validity Period for Certain Reexport Authorizations and Revocation of Other Authorizations

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 736

[Docket No. 980821223-8223-01]

RIN 0694-AB74

Establishment of 24-Month Validity Period for Certain Reexport

Authorizations and Revocation of Other Authorizations

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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

SUMMARY: The Bureau of Export Administration is amending the Export

[[Page 49426]]

Administration Regulations (15 CFR parts 730-774) by issuing General

Order No. 1 establishing a 24-month validity period for all reexport

authorizations that do not contain any license validity period and

revoking those that have been in effect for more than 24 months.

DATES: This rule is effective September 16, 1998.

ADDRESSES: Written comments on this rule should be sent to Hillary

Hess, Director, Regulatory Policy Division, Bureau of Export

Administration, Department of Commerce, P.O. Box 273, Washington, DC

20044.

FOR FURTHER INFORMATION CONTACT: Hillary Hess, Director, Regulatory

Policy Division, Bureau of Export Administration, Telephone: (202) 482-

2440.

SUPPLEMENTARY INFORMATION:

Background

On March 25, 1996 (61 FR 12714), the Bureau of Export

Administration (BXA) issued completely revised Export Administration

Regulations (EAR). Among other things, the new regulations established

a general rule that all licenses for export or reexport would be

limited to a 24-month validity period and established procedures for

seeking extensions (Sec. 750.7(g)).

The general practice before June 15, 1996, under the previous

regulations, was to issue reexport authorizations for most countries

without a set validity period. Since requests for reexport

authorizations specified the items to be reexported, the parties to the

transaction, and the dollar value involved, the reexport authorizations

were available for as long as was necessary to complete the

transaction(s) in question. In addition, a number of reexport

authorizations issued after June 15, 1996, did not include a specific

validity period.

BXA is issuing this general order to bring any outstanding reexport

authorizations which were issued without validity periods in line with

the general 24-month validity period established in the new

regulations.

This order revokes all outstanding reexport authorizations issued

with no validity period before the 24-month period preceding September

16, 1998 to a country that has been designated by the Secretary of

State as a country that has repeatedly provided support for acts of

international terrorism, effective September 16, 1998. Designated

terrorist-supporting countries currently are Cuba, Iran, Iraq, Libya,

North Korea, Sudan, and Syria. All other outstanding reexport

authorizations issued with no validity period within the 24-months

preceding September 16, 1998 will be revoked November 16, 1998.

Reexport authorizations issued with no validity period within 24-months

preceding September 16, 1998 will expire 24-months from the date of

issuance of the reexport authorization or November 16, 1998, which ever

is longer. Extensions of any such reexport authorizations may be

requested prior to the effective date of this action in accordance with

the procedures set forth in Sec. 750.7(g). Should BXA provide specific

notice to a reexporter of an earlier revision, suspension, or

revocation date for such reexport authorization, then the information

in the specific notice from BXA shall be controlling.

The term ``authorization'' as used in this rule encompasses the

range of reexport authorizations granted by BXA, which includes

licenses, individual letters, and other types of notifications.

The Export Administration Act (EAA) expired on August 20, 1994, 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 12924 of August 19, 1994, as

extended by the President's notices of August 15, 1995 (60 FR 42767),

August 14, 1996 (61 FR 42527), August 13, 1997 (62 FR 43629) and August

13, 1998 (63 FR 44121).

Saving Clause

Shipments of items under reexport authorizations revoked as a

result of this regulatory action that were on dock for loading, on

lighter, laden aboard an exporting carrier, or en route aboard carrier

to a port of export pursuant to actual orders for export before

September 16, 1998 may be exported in accordance with the terms of the

previous reexport authorization provisions up to and including

September 30, 1998. Any such items not actually exported before

midnight September 30, 1998, require a new license in accordance with

this regulation.

Rulemaking Requirements

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

purposes of E.O. 12866.

2. Notwithstanding any other provision of law, no person is

required to respond to nor 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 current valid OMB Control Number. This rule involves

collection of information requirements subject to the Paperwork

Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This collection has

been approved by the Office of Management and Budget under control

number 0694-0088.

3. This 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 military and foreign affairs

function of the United States (5 U.S.C. 553(a)(1)). Further, no other

law requires that a notice of proposed rulemaking and an opportunity

for public comment be given for this interim rule. Because a notice of

proposed rulemaking and an opportunity for public comment are not

required to be given for this rule under 5 U.S.C. 553 or by any other

law, the analytical requirements of the Regulatory Flexibility Act (5

U.S.C. 601 et seq.) are not applicable.

List of Subjects in 15 CFR Part 736

Exports, Foreign trade.

Accordingly, part 736 of the Export Administration Regulations (15

CFR parts 730-799) are amended as follows:

PART 736--[AMENDED]

1. The authority citation for part 736 is revised to read as

follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; E.O.

12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 61 FR

58767, 3 CFR, 1996 Comp., p. 228 (1997); Notice of August 15, 1995,

3 CFR, 1995 Comp. 501 (1996); Notice of August 14, 1996, 61 FR

42527, 3 CFR 1996 Comp., p. 298 (1997); Notice of August 13, 1997

(62 FR 43629, August 15, 1997); and Notice of August 13, 1998 (62 FR

44121, August 17, 1998).

2. Supplement No. 1 to part 736 is revised to read as follows:

Supplement No. 1 To Part 736--General Orders

General Order No. 1 of September 16, 1998; Establishing a 24-

month validity period on reexport authorizations issued without a

validity period and revoking those exceeding that period.

(a) Reexport authorizations issued within 24-months of the

General Order. All reexport authorizations issued with no validity

period within the 24-months preceding September 16, 1998 shall be

deemed to have an expiration date which shall be the date 24-months

from the date of issuance of the reexport authorization or November

16, 1998, whichever is longer.

[[Page 49427]]

(b) Reexport authorizations issued before the 24-month period

preceding the General Order. For reexport authorizations issued with

no validity period before the 24-month period preceding September

16, 1998:

(1) Effective September 16, 1998, all such outstanding reexport

authorizations for terrorist-supporting countries (see parts 742 and

746 of the EAR) are revoked.

(2) Effective November 16, 1998, all other such outstanding

reexport authorizations are revoked.

(c) Extensions. If necessary, you may request extensions of such

authorizations according to procedures set forth in Sec. 750.7(g) of

the EAR.

(d) Specific Notice from BXA. If you have received, or should

you receive, specific notice from BXA with regard to a reexport

authorization covered by this General Order, informing you of a

revocation, suspension, or revision (including validity period) of

any such reexport authorization, then the terms of that specific

notice will be controlling.

(e) Definition of ``authorization''. The term ``authorization''

as used in this General Order encompasses the range of reexport

authorizations granted by BXA, which includes licenses, individual

letters, and other types of notifications.

Dated: September 10, 1998.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 98-24829 Filed 9-15-98; 8:45 am]

BILLING CODE 3510-33-P