Effects of Foreign Policy-Based Export Controls

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Ch. VII

[Docket No. 991122312-9312-01]

RIN 0694-XX12

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Regulations to determine whether they should be modified, rescinded or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 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),

August 13, 1998 (63 FR 44121), and August 10, 1999 (64 FR 44101, August

13, 1999). 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 2000.

DATES: Comments must be received by December 30, 1999.

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

Ruggiero, 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): 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.

In January 1999, 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 considered

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 comparative benefits to U.S. foreign policy objectives

versus 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. Information on 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 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.

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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.

All 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 6883, U.S.

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

Washington, DC 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 the BXA Freedom of Information

Officer at the above address or by calling (202) 482-0500.

Dated: November 23, 1999.

R. Roger Majak,

Assistant Secretary for Export Administration.

[FR Doc. 99-31061 Filed 11-29-99; 8:45 am]

BILLING CODE 3510-33-P