Exports to Serbia

SUMMARY: In his address to the nation on March 24, 1999, President

Clinton announced that the Armed Forces of the United States had joined

those of our NATO allies in air strikes against Serbian forces

responsible for brutal attacks on ethnic Albanians in the province of

Kosovo. This rule imposes a license requirement for exports and

reexports to Serbia of all items subject to the Export Administration

Regulations (EAR).

EFFECTIVE DATE: This rule is effective May 4, 1999.

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

Strategic Trade and Foreign Policy Controls, Bureau of Export

Administration, Telephone: (202) 482-4196.

SUPPLEMENTARY INFORMATION:

Background

In response to the Serbian government's continued ethnic cleansing

in its Kosovo province and its rejection of the proposed peace

agreement accepted by the Kosovars, NATO (including the United States)

has taken military action. This action is intended to deter the mass

killing and dislocation of ethnic Albanians in Kosovo and to prevent a

widening of the conflict.

In Resolution 1203 (adopted on October 24, 1998), the United

Nations Security Council (UNSC) expressed alarm at what it described as

the continuing grave humanitarian situation throughout Kosovo and the

impending humanitarian catastrophe. Previously, in Resolution 1160 of

March 3, 1998, the UNSC had imposed an embargo on the sale of arms and

related materials to the Federal Republic of Yugoslavia.

On July 14, 1998, BXA implemented an embargo on arms and arms-

related items in the Export Administration Regulations (EAR) that

applied to Serbia and Montenegro. The arms embargo continues in effect.

This rule imposes an additional license requirement on exports and

reexports to Serbia of all items subject to the EAR. Applications will

be reviewed on a case-by-case basis, with a presumption of denial for

applications for other than humanitarian items. For humanitarian items,

BXA will approve sales of agricultural commodities and products,

medicine, and medical equipment for civilian end-use when appropriate

safeguards can be developed to prevent diversion to military,

paramilitary or political use. No License Exceptions are available for

Serbia, except that items consigned to and for use by personnel and

agencies of the U.S. Government may be shipped under License Exception

GOV, and temporary exports or reexports by the accredited news media

may be made under License Exception TMP. This rule does not affect

Montenegro.

This action is taken consistent with the provisions of the Export

Administration Act (EAA) and after consultation with the Secretary of

State. BXA submitted a foreign policy report to the Congress indicating

the imposition of new foreign policy controls on April 30, 1999.

Although the 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, August 17, 1998).

Saving Clause

Shipments of items removed from License Exception or NLR

authorizations as a result of this regulatory action that were en route

aboard a carrier to a port of export, on dock for loading aboard an

exporting carrier, on lighter, or laden aboard an exporting carrier on

May 4, 1999, pursuant to actual orders for export to that destination

in Serbia, may proceed to that destination under the previous License

Exception or NLR authorization provisions so long as they have been

exported from the United States before May 11, 1999. Any such items not

actually exported before midnight May 11, 1999, require a license in

accordance with this regulation.

Rulemaking Requirements

1. This final rule has been determined to be significant for

purposes of E.O. 12866.

2. This rule involves a collection 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 number 0694-0088, ``Multi-Purpose Application,'' which

carries a burden hour estimate of 40 minutes to prepare and submit

electronically and 45 minutes to submit manually on form BXA-748P.

Notwithstanding any other provision of law, no person is required to

respond nor shall any 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 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 (Sec. 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 final 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.

Therefore, this regulation is issued in final form. Although there

is no formal comment period, public comments on this regulation are

welcome on a continuing basis. Comments should be submitted to Hillary

Hess, Regulatory Policy Division, Bureau of Export Administration,

Department of Commerce, P.O. Box 273, Washington, DC 20044.

List of Subjects in 15 CFR Part 746

Embargoes, Exports, Foreign trade, Reporting and recordkeeping

requirements.

Accordingly, part 746 of the Export Administration Regulations (15

CFR parts 730-799) is amended as follows:

PART 746--[AMENDED]

1. The authority citation for part 746 is revised to read as

follows:

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

22 U.S.C. 287c, 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p.

899; E.O. 12924, 3 CFR, 1994 Comp., p.

[[Page 24019]]

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

Notice of August 13, 1998 (63 FR 44121, August 17, 1998).

2. Section 746.9 is revised to read as follows:

Sec. 746.9 The Federal Republic of Yugoslavia (Serbia and Montenegro).

The Department of Commerce maintains a comprehensive embargo on

exports and reexports to Serbia. Additionally, a United Nations

mandated arms embargo applies to certain items destined to the Federal

Republic of Yugoslavia (Serbia and Montenegro).

(a) License requirements. (1) Serbia. You will need a license to

export or reexport all items subject to the EAR to Serbia, except as

specified in paragraph (c) of this section. This requirement does not

apply to Montenegro.

(2) Federal Republic of Yugoslavia (Serbia and Montenegro). Under

Executive Order 12918 of May 26, 1994 (3 CFR, 1994 comp., p. 899)

(which authorizes the Secretary of State and the Secretary of Commerce,

under section 5 of the United Nations Participation Act and other

authorities available to the respective Secretaries, to take all

actions necessary to implement any arms embargo mandated by resolution

of the United Nations Security Council), and in conformity with United

Nations Security Council (UNSC) Resolution 1160 of March 31, 1998, an

embargo applies to the sale or supply to the Federal Republic of

Yugoslavia of arms and related materiel of all types and regardless of

origin, such as weapons and ammunition, military vehicles and

equipment, and spare parts for such items. You will therefore need a

license for the sale, supply or export to the Federal Republic of

Yugoslavia (Serbia and Montenegro) from the United States of embargoed

items, as listed in paragraphs (a)(2)(i) and (ii) of this section. You

will also need a license for the sale, supply, export or reexport to

the Federal Republic of Yugoslavia (Serbia and Montenegro) of such

items by any United States person in any foreign country or other

location. (Reexport controls imposed under this paragraph (a)(2) apply

only to reexports by U.S. persons. Reexport controls on U.S.-origin

items to the Federal Republic of Yugoslavia (Serbia and Montenegro) set

forth in other parts of the EAR remain in effect.) You will also need a

license for the use of any U.S.-registered aircraft or vessel to supply

or transport to the Federal Republic of Yugoslavia (Serbia and

Montenegro) any such items. These requirements apply to embargoed items

specified in paragraphs (a)(2)(i) and (a)(2)(ii) of this section,

regardless of origin.

(i) Crime Control and Detection Equipment as identified on the CCL

under CC Columns No. 1, 2 or 3 in the Country Chart column of the

``License Requirements'' section of the applicable ECCN.

(ii) Items described by ECCNs ending in ``018''; and 0A982, 0A984,

0A985, 0A986, 0A988, 0A989, 0B986, 0E984, 1A005, 1C998, 2A993,

6A002.a.1, a.2, a.3, b and c, 6A003.b.3 and b.4, 6E001, 6E002, and

9A991.a.

(3) Date of embargo. The licensing requirements in paragraph (a)(2)

of this section were effective on July 14, 1998.

(b) Licensing policy. (1) Serbia. Applications for export or

reexport of all items subject to the EAR to Serbia will be reviewed on

a case-by-case basis, with a presumption of denial for other than

humanitarian items. For humanitarian items, BXA will approve sales of

agricultural commodities and products, medicine, and medical equipment

for civilian end-use when appropriate safeguards can be developed to

prevent diversion to military, paramilitary or political use.

(2) Federal Republic of Yugoslavia (Serbia and Montenegro).

Applications for export or reexport of all items listed in paragraphs

(a)(2)(i) and (ii) of this section are subject to a general policy of

denial. Consistent with United Nations Security Council Resolution

1160, this embargo is effective notwithstanding the existence of any

rights or obligations conferred or imposed by any international

agreement or any contract entered into or any license or permit granted

prior to July 14, 1998, except to the extent provided in regulations,

orders, directives or licenses that may be issued in the future under

Executive Order 12918 or under the EAR.

(c) License Exceptions. Items consigned to and for use by personnel

and agencies of the U.S. Government may be exported or reexported to

Serbia under License Exception GOV (see Sec. 740.11(b)(2) of the EAR),

and temporary exports or reexports by the news media may be made to

Serbia under License Exception TMP (see Sec. 740.9(a)(2)(viii) of the

EAR). No other License Exceptions are available for Serbia.

(d) Related controls. The Department of State, Office of Defense

Trade Controls, maintains related controls on arms and military

equipment under the International Traffic in Arms Regulations (22 CFR

parts 120-130). You should also contact the Department of the

Treasury's Office of Foreign Assets Control concerning any restrictions

which might apply to U.S. persons involving financial transactions with

the Federal Republic of Yugoslavia (Serbia and Montenegro).

Dated: April 30, 1999.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 99-11304 Filed 4-30-99; 4:17 pm]

BILLING CODE 3510-DT-P