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

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Chapter VII

[Docket No. 980922243-8243-01]

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Regulations to determine whether they should be modified, rescinded or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, August 13, 1997, and August 13, 1998). 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 1999.

DATES: Comments must be received by November 12, 1998, 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 Patricia

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

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

Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: James Lewis, Director, Office of

Strategic Trade and Foreign Policy Controls, Bureau of Export

Administration, Telephone: (202) 482-4196. Copies of the current Annual

Foreign Policy Report to the Congress are available at our website:

www.bxa.doc.gov and copies may also be requested by calling the Office

of Strategic Trade.

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 (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

(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 and technology

(Sec. 744.2 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; 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 industry information

relating to the following:

1. Specific data or case summaries that illustrate the effect of

foreign policy controls on sales of U.S. products to third countries

(i.e., those countries not targeted by sanctions), including the views

of foreign purchasers or prospective customers regarding U.S. foreign

policy controls.

2. Information on 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 our foreign

trade partners which are similar to U.S. foreign policy controls,

including license review criteria, use of conditions, requirements for

pre and post shipment verifications (preferably supported by examples

of

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approvals, denials and foreign regulations.

4. Suggestions for revisions to foreign policy controls that would

(if there are any differences) bring them more into line with

multilateral practice.

5. Comments or suggestions as to actions that would make

multilateral 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

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

controls on trade.

9. Information on the use of foreign policy controls on targeted

countries, entities, or individuals.

BXA is also interested in comments relating generally to the

extension or revision of existing foreign policy controls. 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.

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 5, 1998.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 98-27390 Filed 10-9-98; 8:45 am]

BILLING CODE 3510-33-P