Exports of Firearms

Federal RegisterApr 13, 1999

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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 738, 740, 742, 748, 762, and 774

[Docket No. 981222316-8316-01]

RIN 0694-AB68

Exports of Firearms

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule with request for comments.

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SUMMARY: On April 18, 1998, President Clinton announced at the Santiago

Summit in Chile that the United States would promulgate regulations

based on the Organization of American States (OAS) Model Regulations

for the Control of the International Movement of Firearms, their Parts

and Components and Ammunition (referred to as the ``OAS Model

Regulations''). The Bureau of Export Administration (BXA) is revising

the Export Administration Regulations (EAR) to implement export control

measures agreed to by members of the OAS and set forth in the OAS Model

Regulations. The OAS Model Regulations were developed to assist OAS

member countries in implementing the Inter-American Convention Against

the Illicit Manufacturing of and Trafficking in Firearms, Ammunition,

Explosives, and Other Related Materials (Firearms Convention). OAS

member countries agreed to impose an import and export license

requirement to effectively combat the illicit manufacturing of and

trafficking in firearms, ammunition, explosives, and other related

materials. Though the Firearms Convention has yet to enter into force,

most OAS member countries, including the United States, are taking

actions in advance of the Convention's entry into force based on the

OAS agreed Model Regulations to control the flow of firearms items

because of their links to such activities as drug trafficking,

terrorism, transnational organized crime, and mercenary and other

criminal activities.

DATES: Effective Date: This rule is effective April 13, 1999.

Grace Period: A 90-day grace period will apply to the requirement

to obtain the Firearms Import Certificate or equivalent official

document. During the grace period, applications will be accepted

whether or not supported by the Firearms Import Certificate.

COMMENTS: Comments on this rule must be received on or before May 28,

1999.

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

Muldonian, Regulatory Policy Division, Bureau of Export Administration,

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

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy

Division, Bureau of Export Administration, Telephone: (202) 482-0171.

SUPPLEMENTARY INFORMATION:

Background

On November 14, 1997, twenty-nine members of the Organization of

American States (OAS), including the United States, signed the Inter-

American Convention Against the Illicit Manufacturing of and

Trafficking in Firearms, Ammunition, Explosives, and Other Related

Materials (Firearms Convention). Subsequently, the Bahamas and Trinidad

and Tobago signed the Treaty bringing the number of signatories to

thirty-one. The Firearms Convention requires all OAS Member States to

establish a program to issue authorizations for the import and export

of firearms. The Firearms Convention will enter into force after the

deposit of instruments of ratification by two Signatory States. To

date, only one Convention Signatory, Belize, has ratified the Treaty.

The Firearms Convention constitutes the first multilateral treaty

of its kind in the world, and it is expected to enhance multilateral

cooperation among the governments of the Americas in the battle against

the illicit manufacturing of and trafficking in firearms, ammunition,

explosives, and other related materials. The problem of illicit

transnational trade in firearms is of particular concern to the

governments of North and South America due to the violence it breeds

and the links it often has with organized criminal activity, such as

drug trafficking and terrorism.

The OAS member countries include: Antigua and Barbuda, Argentina,

the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, Chile,

Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El

Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico,

Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia,

Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the

United States, Uruguay, and Venezuela.

OAS members also approved, in November 1997, the Model Regulations

for the Control of the International Movement of Firearms, Their Parts

and Components and Ammunition (OAS Model Regulations) to promote

harmonized procedures for import and export controls over the legal

international movement of firearms. The OAS Model Regulations do not

address explosives and related materials.

On April 18, 1998, at the Santiago Summit held in Chile, President

Clinton announced that the United States would issue regulations based

on the OAS Model Regulations and that the Firearms Convention would be

sent to the Senate for its advice and consent for ratification.

President Clinton stated that these measures will further multilateral

cooperation to prevent and combat illicit transnational traffic in

firearms and ammunition, while establishing and strengthening systems

to enhance the tracing of firearms used in criminal activities.

The OAS Model Regulations affect most firearms items on the

Commerce Control List (CCL) classified under the following Export

Control Classification Numbers (ECCNs): (1) 0A984, Shotguns with a

barrel length 18 inches or over and related parts, and buckshot shotgun

shells; (2) 0A986, Shotgun shells, and related parts; and (3) 0A987,

Optical sighting devices. Following the President's directive, BXA is

imposing a new license requirement for exports to Canada of all items

controlled by ECCN 0A984, 0A986, or 0A987. A license is already

required for crime control

[[Page 17969]]

reasons albeit subject to different licensing policies for the export

of most firearms items to other OAS member countries.

The OAS Model Regulations also set forth requirements for the

government of OAS importing countries to issue an Import Certificate to

the importer of firearms, which is to include the total quantity of

firearms and a detailed description of the item(s). Accordingly, BXA is

imposing a new Import Certificate requirement for export of items

classified as ECCNs 0A984, 0A986, or 0A987 to all OAS member countries,

including Canada. The Import Certificate or an equivalent official

document must be sent by the importer to the exporter as support

documentation for a license application. The exporter must obtain the

Import Certificate or equivalent official document prior to applying

for a license. While the exporter may submit the application on receipt

of a facsimile copy of the Import Certificate or equivalent official

document, he must have the original in his possession before export.

The exporter must retain the Import Certificate or equivalent official

document in his files and produce it if requested to do so by BXA, in

accordance with the recordkeeping requirements of the EAR.

In addition, for clarity and consistency, this rule transfers

optical sighting devices from ECCN 0A985 to a newly created ECCN 0A987.

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 Export Administration Regulations 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).

Under a policy of conforming actions under the Executive Order to

those under the EAA, insofar as appropriate, the Department of Commerce

notified the Congress of this imposition of foreign policy controls on

December 28, 1998.

Rulemaking Requirements

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

purposes of E.O. 12866.

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

required to, nor shall any person be subject to a penalty for failure

to comply with a collection of information, subject to the Paperwork

Reduction Act (PRA), unless that collection of information displays a

currently valid OMB Control Number. This rule also contains a new

collection-of-information requirement subject to the PRA that has

received emergency approval under OMB control number 0694-0114. The new

information requirement and estimated public burden hours include:

import certificates and associated activities (5 minutes to one hour

each) and licenses to Canada (42.5 minutes each). This rule also

involves a collection of information approved by the Office of

Management and Budget under control number 0694-0088, ``Multi-Purpose

Application,'' which carries a burden hour estimate of 42.5 minutes per

submission. These estimates include the time for reviewing

instructions, searching existing data sources, gathering and

maintaining the data needed, and completing and reviewing the

collections of information. Comments are invited on: (a) whether the

collection of information is necessary for the proper performance of

the functions of the agency, including whether the information shall

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

the burden 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 regarding these burden estimates or any other aspect of the

collection of information, including suggestions for reducing the

burdens, should be forwarded to Patricia Muldonian, Regulatory Policy

Division, Office of Exporter Services, Bureau of Export Administration,

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

Rostker, Office of Management and Budget, OMB/OIRA, 725 17th Street,

NW., NEOB Rm. 10202, Washington, DC 20503.

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 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.

However, because of the importance of the issues raised by these

regulations, this rule is being issued in interim form and BXA will

consider comments in the development of the final regulations.

Accordingly, the Department encourages interested persons who wish

to comment to do it at the earliest possible time to permit the fullest

consideration of their views.

The period for submission of comments will close May 28, 1999. The

Department will consider all comments received before the close of the

comment period in developing final regulations. Comments received after

the end of the comment period will be considered if possible, but their

consideration cannot be assured. The Department will not accept public

comments accompanied by a request that a part or all of the material be

treated confidentially because of its business proprietary nature or

for any other reason. The Department will return such comments and

materials to the persons submitting the comments and will not consider

them in the development of final regulations. All public comments on

these regulations will be a matter of public record and will be

available for public inspection and copying. In the interest of

accuracy and completeness, the Department requires comments in written

form.

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 regulations will be maintained

in the Bureau of Export Administration Freedom of Information Records

Inspection Facility, Room 6881, Department of Commerce, 14th Street and

Pennsylvania Avenue, N.W., 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 the inspection and copying of

records at the facility may be obtained from Henry Gaston, Bureau of

Export Administration Freedom of Information Officer, at the above

address or by calling (202) 482-5653.

[[Page 17970]]

List of Subjects

15 CFR Parts 738, 742 and 774

Exports, Foreign Trade.

15 CFR Parts 740 and 748

Administrative practice and procedure, Exports, Foreign Trade,

Reporting and recordkeeping requirements.

15 CFR Part 762

Administrative practice and procedures, Business and industry,

Confidential business information, Exports, Foreign Trade, Reporting

and recordkeeping requirements.

Accordingly, parts 738, 740, 742, 748, 762, and 774 of the Export

Administration Regulations (15 CFR parts 730-799) are amended to read

as follows:

1. The authority citation for parts 738 and 774 is revised to read

as follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq., app. 5; 10

U.S.C. 7420, 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c, 3201

et seq., 6004; Sec. 201, Pub. L. 104-58, 109 Stat. 557 (30 U.S.C.

185(s), 185(u)); 42 U.S.C. 2139a, 6212; 43 U.S.C. 1354; 46 U.S.C.

app. 466c; E.O. 12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR,

1996 Comp., p. 228; and Notice of August 13, 1998 (63 FR 44121,

August 17, 1998).

2. The authority citation for parts 740, 748, and 762 is revised to

read as follows:

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

12924, 3 CFR, 1994 Comp., p. 917; E.O. 13026, 3 CFR, 1996 Comp., p.

228 (1997); Notice of August 13, 1998 (63 FR 44121, August 17,

1998); and Pub. L. 105-85, 111 Stat. 1629.

3. The authority citation for part 742 is revised to read as

follows:

Authority: 50 U.S.C. app. 2401 et seq., 1701 et seq.; 18 U.S.C.

2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 3

CFR, 1978 Comp., p. 179; E.O. 12851, 3 CFR 1993 Comp., p. 608; E.O.

12924, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 3 CFR, 1994 Comp., p.

950; E.O. 13026, 3 CFR, 1996 Comp., p. 228 (1997); Notice of August

13, 1998 (63 FR 44121, August 17, 1998); and Pub. L. 105-85, 111

Stat. 1629.

PART 738--[AMENDED]

Sec. 738.2 [Amended]

4. Section 738.2 is amended by adding ``FC Firearms Convention'' in

alphabetical order to the list of Reasons for Control in paragraph

(d)(2)(i)(A).

5. Supplement No. 1 to part 738, the Commerce Country Chart, is

amended by adding ``FC Column 1''. For the convenience of the reader,

the chart is revised to read as follows:

Supplement No. 1 to Part 738--[Amended]

Supplement No. 1 to Part 738--Commerce Country Chart

[Reason for control]

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Chemical and biological Nuclear National security Missile Regional Firearms Crime control Anti-terrorism

weapons nonproliferation -------------------- tech stability convention -------------------------------------------------

Countries -------------------------------------------------- ------------------------------------------

CB 1 CB 2 CB 3 NP 1 NP 2 NS 1 NS 2 MT 1 RS 1 RS 2 FC 1 CC 1 CC 2 CC 3 AT 1 AT 2

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Afghanistan................... X X X X X X X X X X X

Albania....................... X X X X X X X X X X

Algeria....................... X X X X X X X X X X

Andorra....................... X X X X X X X X X X

Angola \1\.................... X X X X X X X X X X

Antigua and Barbuda........... X X X X X X X X X X X

Argentina..................... X X X X X X X X X

Armenia....................... X X X X X X X X X X X

Australia..................... X X X X

Austria....................... X X X X X X X

Azerbaijan.................... X X X X X X X X X X X

Bahamas, The.................. X X X X X X X X X X X

Bahrain....................... X X X X X X X X X X X

Bangladesh.................... X X X X X X X X X X

Barbados...................... X X X X X X X X X X X

Belarus....................... X X X X X X X X X X X

Belgium....................... X X X X

Belize........................ X X X X X X X X X X X

Benin......................... X X X X X X X X X X

Bhutan........................ X X X X X X X X X X

Bolivia....................... X X X X X X X X X X X

Bosnia and Herzegovina........ X X X X X X X X X X

Botswana...................... X X X X X X X X X X

Brazil........................ X X X X X X X X X X

Brunei........................ X X X X X X X X X X

Bulgaria...................... X X X X X X X X X X

Burkina Faso.................. X X X X X X X X X X

Burma......................... X X X X X X X X X X X

Burundi....................... X X X X X X X X X X

Cambodia...................... X X X X X X X X X X

Cameroon...................... X X X X X X X X X X

Canada........................ X

Cape Verde.................... X X X X X X X X X X

Central African Republic...... X X X X X X X X X X

Chad.......................... X X X X X X X X X X

Chile......................... X X X X X X X X X X X

China......................... X X X X X X X X X X X

Colombia...................... X X X X X X X X X X X

Comoros....................... X X X X X X X X X X

Congo......................... X X X X X X X X X X

Costa Rica.................... X X X X X X X X X X X

Cote d'Ivoire................. X X X X X X X X X X

Croatia....................... X X X X X X X X X X

Cuba.......................... See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.

Cyprus........................ X X X X X X X X X X

Czech Republic................ X X X X X X X X

[[Page 17971]]

Denmark....................... X X X X

Djibouti...................... X X X X X X X X X X

Dominica...................... X X X X X X X X X X X

Dominican Republic............ X X X X X X X X X X X

Ecuador....................... X X X X X X X X X X X

Egypt......................... X X X X X X X X X X X

El Salvador................... X X X X X X X X X X X

Equatorial Guinea............. X X X X X X X X X X

Eritrea....................... X X X X X X X X X X

Estonia....................... X X X X X X X X X X

Ethiopia...................... X X X X X X X X X X

Fiji.......................... X X X X X X X X X X X

Finland....................... X X X X X X X

France........................ X X X X

Gabon......................... X X X X X X X X X X

Gambia, The................... X X X X X X X X X X

Georgia....................... X X X X X X X X X X X

Germany....................... X X X X

Ghana......................... X X X X X X X X X X

Greece........................ X X X X

Grenada....................... X X X X X X X X X X X

Guatemala..................... X X X X X X X X X X X

Guinea........................ X X X X X X X X X X

Guinea-Bissau................. X X X X X X X X X X

Guyana........................ X X X X X X X X X X X

Haiti......................... X X X X X X X X X X X

Honduras...................... X X X X X X X X X X X

Hong Kong..................... X X X X X \2\ X X X X X

Hungary....................... X X X X X X X X

Iceland....................... X X X X X X

India......................... X X X X X X X X X X X X

Indonesia..................... X X X X X X X X X X

Iran.......................... See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.

Iraq \1\...................... See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.

Ireland....................... X X X X X X X

Israel........................ X X X X X X X X X X X X

Italy......................... X X X X

Jamaica....................... X X X X X X X X X X X

Japan......................... X X X X

Jordan........................ X X X X X X X X X X X

Kazakhstan.................... X X X X X X X X X X X

Kenya......................... X X X X X X X X X X

Kiribati...................... X X X X X X X X X X

Korea, North.................. See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.

Korea, South.................. X X X\2\ X X X X X

Kuwait........................ X X X X X X X X X X X

Kyrgyzstan.................... X X X X X X X X X X X

Laos.......................... X X X X X X X X X X

Latvia........................ X X X X X X X X X X

Lebanon....................... X X X X X X X X X X X

Lesotho....................... X X X X X X X X X X

Liberia....................... X X X X X X X X X X

Libya......................... See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.

Liechtenstein................. X X X X X X X X X X

Lithuania..................... X X X X X X X X X X

Luxembourg.................... X X X X

FYROM (Macedonia)............. X X X X X X X X X X

Madagascar.................... X X X X X X X X X X

Malawi........................ X X X X X X X X X X

Malaysia...................... X X X X X X X X X X

Maldives...................... X X X X X X X X X X

Mali.......................... X X X X X X X X X X

Malta......................... X X X X X X X X X X

Marshall Islands.............. X X X X X X X X X X

Mauritania.................... X X X X X X X X X X

Mauritius..................... X X X X X X X X X X

Mexico........................ X X X X X X X X X X X

Micronesia.................... X X X X X X X X X X

Moldova....................... X X X X X X X X X X X

Monaco........................ X X X X X X X X X X

Mongolia...................... X X X X X X X X X X X

Morocco....................... X X X X X X X X X X

Mozambique.................... X X X X X X X X X X

Namibia....................... X X X X X X X X X X

Nauru......................... X X X X X X X X X X

Nepal......................... X X X X X X X X X X

[[Page 17972]]

Netherlands................... X X X X

New Zealand................... X X X X

Nicaragua..................... X X X X X X X X X X X

Niger......................... X X X X X X X X X X

Nigeria....................... X X X X X X X X X X

Norway........................ X X X X

Oman.......................... X X X X X X X X X X X

Pakistan...................... X X X X X X X X X X X X

Palau......................... X X X X X X X X X X

Panama........................ X X X X X X X X X X X

Papua New Guinea.............. X X X X X X X X X X

Paraguay...................... X X X X X X X X X X X

Peru.......................... X X X X X X X X X X X

Philippines................... X X X X X X X X X X

Poland........................ X X X X X X X X

Portugal...................... X X X X

Qatar......................... X X X X X X X X X X X

Romania....................... X X X X X X X X

Russia........................ X X X X X X X X X X

Rwanda \1\.................... X X X X X X X X X X X

St. Kitts and Nevis........... X X X X X X X X X X X X

St. Lucia..................... X X X X X X X X X X X

St. Vincent and Grenadines.... X X X X X X X X X X X

San Marino.................... X X X X X X X X X X

Sao Tome and Principe......... X X X X X X X X X X

Saudi Arabia.................. X X X X X X X X X X X

Senegal....................... X X X X X X X X X X

Serbia and Montenegro......... X X X X X X X X X X

Seycheles..................... X X X X X X X X X X

Sierra Leone.................. X X X X X X X X X X

Singapore..................... X X X X X X X X X X

Slovakia...................... X X X X X X X X

Slovenia...................... X X X X X X X X X X

Solomon Islands............... X X X X X X X X X X

Somalia....................... X X X X X X X X X X

South Africa.................. X X X X X X X X X

Spain......................... X X X X

Sri Lanka..................... X X X X X X X X X X

Sudan......................... X X X X X X X X X X X X

Suriname...................... X X X X X X X X X X X

Swaziland..................... X X X X X X X X X X

Sweden........................ X X X X X X X

Switzerland................... X X X X X X X

Syria......................... X X X X X X X X X X X X

Taiwan........................ X X X X X X X X X X X

Tajikistan.................... X X X X X X X X X X X

Tanzania...................... X X X X X X X X X X

Thailand...................... X X X X X X X X X X

Togo.......................... X X X X X X X X X X

Tonga......................... X X X X X X X X X X

Trinidad and Tobago........... X X X X X X X X X X X

Tunisia....................... X X X X X X X X X X

Turkey........................ X X X X X X

Turkmenistan.................. X X X X X X X X X X X

Tuvalu........................ X X X X X X X X X X

Uganda........................ X X X X X X X X X X

Ukraine....................... X X X X X X X X X X

United Arab Emirates.......... X X X X X X X X X X X

United Kingdom................ X X X X

Uruguay....................... X X X X X X X X X X X

Uzbekistan.................... X X X X X X X X X X X

Vanuatu....................... X X X X X X X X X X

Vatican City.................. X X X X X X X X X X

Venezuela..................... X X X X X X X X X X X

Vietnam....................... X X X X X X X X X X X

Western Sahara................ X X X X X X X X X X

Western Samoa................. X X X X X X X X X X

Yemen......................... X X X X X X X X X X X

Zaire......................... X X X X X X X X X X

Zambia........................ X X X X X X X X X X

Zimbabwe...................... X X X X X X X X X X

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\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements that may apply to your proposed transaction.

\2\ A license is required only for computers controlled by 4A001, 4A002, & 4A003 if the CTP is greater than 10,000 Mtops. A license is NOT required for any other items subject to NS Column 2.

[[Page 17973]]

PART 740--[AMENDED]

6. Section 740.14 is amended by adding a sentence to the end of

paragraph (e)(1)(iii) to read as follows:

Sec. 740.14 Baggage (BAG).

* * * * *

(e) * * *

(1) * * *

(iii) * * * Note that since certain countries may require an Import

Certificate or a U.S. export license before allowing the import of a

shotgun, you should determine the import requirements of your country

of destination in advance.

* * * * *

PART 742--[AMENDED]

7. Part 742 is amended by adding a new Sec. 742.17 to read as

follows:

Sec. 742.17 Exports of firearms to OAS member countries.

(a) License requirements. BXA maintains a licensing system for the

export of shotguns and related items to all OAS member countries. This

action is based on the Organization of American States (OAS) Model

Regulations for the Control of the International Movement of Firearms,

their Parts and Components and Munitions (OAS Model Regulations) which

were developed to assist OAS member countries to implement the Inter-

American Convention Against the Illicit Manufacturing of and

Trafficking in Firearms, Ammunition, Explosives, and Other Related

Materials (Firearms Convention).1 Items subject to these

controls are identified by ``FC Column 1'' in the ``License

Requirements'' section of their Export Control Classification Number

(ECCN) on the Commerce Control List (CCL). If ``FC Column 1'' of the

Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) is

indicated for a particular country, a license is required for export to

that destination. Licenses will generally be issued on an Import

Certificate or equivalent official document, satisfactory to BXA,

issued by the government of the importing country is also required for

the export of such items to OAS member countries.

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

\1\ Status of Convention as of April 13, 1999 had not entered

into force.

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

(b) Licensing policy. Applications supported by an Import

Certificate or equivalent official document issued by the government of

the importing country for such items will generally be approved, except

there is a policy of denial for applications to export items linked to

such activities as drug trafficking, terrorism, and transnational

organized crime.

available for license applications under this Sec. 742.17.

(d) OAS Model Regulations. The OAS Model Regulations on which

regulations are based are designed by OAS member countries to combat

illicit manufacturing of and trafficking in firearms, ammunition,

explosives, and other related materials in North and South America

because of their links to such activities as drug trafficking,

terrorism, and transnational organized crime.

(e) OAS member countries to which firearms controls under this

section apply. The OAS member countries include: Antigua and Barbuda,

Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada,

Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El

Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico,

Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, Saint Lucia,

Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the

United States, Uruguay, and Venezuela.

(f) Items/Commodities. Items requiring a license under this section

are ECCNs 0A984 (shotguns with a barrel length 18 inches or over and

related parts, and buckshot shotgun shells), 0A986 (shotgun shells, and

related parts) and 0A987 (optical sighting devices). (See Supplement

No. 1 to Part 774 of the EAR.)

(g) Validity period for licenses. Although licenses generally will

be valid for a period of two years, your ability to ship items that

require an Import Certificate or equivalent official document under

this section may be affected by the validity of the Import Certificate

or equivalent official document (see Sec. 748.14(f) of the EAR).

PART 748--[AMENDED]

8. Section 748.9 is amended by revising the introductory text of

paragraph (a) to read as follows:

Sec. 748.9 Support documents for license applications.

(a) Exemptions. If you plan to submit a license application

involving one of the following situations and your item is not a

firearms item destined for an OAS member country, no support

documentation is required. Simply submit the license application. If

your item is a firearms item (Reason for Control identified as ``FC''

on the Commerce Control List, Supplement No. 1 to part 774 of the EAR)

destined for an OAS member country, proceed to Sec. 748.14 of this

part.

* * * * *

9. Part 748 is amended by adding a new Section 748.14 to read as

follows:

Sec. 748.14 Import Certificate for firearms destined for Organization

of American States member countries.

(a) Scope. Consistent with the OAS Model Regulations, BXA requires

from all OAS member countries an Import Certificate issued by the

government of the importing country for items classified as ECCNs

0A984, 0A986, or 0A987. For those OAS member countries that have not

yet established or implemented an Import Certificate procedure, BXA

will accept an equivalent official document (e.g., import license or

letter of authorization) issued by the government of the importing

country as supporting documentation for the export of firearms. This

section describes the requirements for Import Certificates or official

equivalents in support of license applications submitted to BXA for

firearms items that are identified by ``FC Column 1'' in the ``License

Requirements'' section of the Commerce Control List.

(b) Import Certificate Procedure. An Import Certificate or

equivalent official document must be obtained from the government of

the importing OAS member country for firearms items classified as ECCNs

0A984, 0A986, or 0A987. Except as provided by Sec. 748.9(a) of the EAR,

the applicant must obtain and retain on file either the original or

certified copy of the Import Certificate, or an original or certified

copy of equivalent official document issued by the government of the

importing country in support of any license application for export of

firearms items classified as 0A984, 0A986, or 0A987. All the

recordkeeping provisions of Sec. 762.2 of the EAR apply to this

requirement. The applicant must clearly note the number and date of the

Import Certificate or equivalent official document on all export

license applications (BXA Form 748P, Multipurpose Application Form,

Block 13) supported by that Certificate or equivalent official

document. The applicant must also indicate in Block 7 of the

application that the Certificate or equivalent official document has

been received and will be retained on file. However, the applicant may

submit an application before obtaining the original or certified copy

of the Import Certificate, or the official original or certified copy

of the equivalent document, provided that:

[[Page 17974]]

(1) The applicant has received a facsimile of the Import

Certificate or equivalent official document at the time the license

application is filed; and

(2) The applicant states on the application that a facsimile of the

Import Certificate or equivalent official document has been received

and that no shipment will be made against the license prior to

obtaining the original or certified copy of the Import Certificate or

the original or certified copy of the equivalent official document

issued by the importing country and retaining it on file. Generally,

BXA will not consider any license application for the export of

firearms items if the application is not supported by an Import

Certificate or its official equivalent. If the government of the

importing country will not issue an Import Certificate or its official

equivalent, the applicant must supply the information described in

paragraphs (g)(2)(i) and (g)(2)(vi) through (viii) of this section on

company letterhead.

controls apply to all OAS member countries: Antigua and Barbuda,

Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada,

Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El

Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico,

Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, Saint Lucia,

Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the

United States, Uruguay, and Venezuela.

(d) Items/Commodities. An Import Certificate or equivalent official

document is required for items controlled under Export Control

Classification Numbers (ECCNs) 0A984, 0A986, or 0A987.

(e) Use of the Import Certificate. An Import Certificate or

equivalent official document can only be used to support one BXA Form-

748P, Multipurpose Application. The BXA Form-748P, Multipurpose

Application, must include the same items as those listed on the Import

Certificate or the equivalent official document.

(f) Validity period. Import Certificates or equivalent official

documents issued by an OAS member country will be valid for a period of

one year or less. Although licenses generally are valid for two years,

your ability to ship may be affected by the validity of the Import

Certificate or equivalent official document.

(g) How to obtain an Import Certificate for firearms items destined

to OAS member countries. (1) Applicants must request that the importer

(e.g., ultimate consignee or purchaser) obtain the Import Certificate

or an equivalent official document from the government of the importing

country, and that it be issued covering the quantities and types of

items that the applicant intends to export. Upon receipt of the Import

Certificate or its official equivalent, the importer must provide the

original or a certified copy of the Import Certificate or the original

or a certified copy of the equivalent official document to the

applicant. The applicant shall obtain the required documents prior to

submitting a license application, except as provided in paragraphs

(b)(1) and (b)(2) of this section.

(2) The Import Certificate or its official equivalent must contain

the following information:

(i) Applicant's name and address. The applicant may be either the

exporter, supplier, or order party.

(ii) Import Certificate Identifier/Number.

(iii) Name of the country issuing the certificate or unique country

code.

(iv) Date the Import Certificate was issued, in international date

format (e.g., 24/12/98 (24 December 1998), or 3/1/99 (3 January 1999)).

(v) Name of the agency issuing the certificate, address, telephone

and facsimile numbers, signing officer name, and signature.

(vi) Name of the importer, address, telephone and facsimile

numbers, country of residence, representative's name if commercial or

government body, citizenship, and signature.

(vii) Name of the end-user(s), if known and different from the

importer, address, telephone and facsimile numbers, country of

residence, representative's name if commercial (authorized distributor

or reseller) or government body, citizenship, and signature. Note that

BXA does not require the identification of each end-user when the

firearms items will be resold by a distributor or reseller if unknown

at the time of export.

(viii) Description of the items approved for import including a

technical description and total quantity of firearms, parts and

components, ammunition and parts.

Note to paragraph (g)(2)(viii): You must furnish the consignee

with a detailed technical description of each item to be given to

the government for its use in issuing the Import Certificate. For

example, for shotguns, provide the type, barrel length, overall

length, number of shots, the manufacturer's name, the country of

manufacture, and the serial number for each shotgun. For ammunition,

provide the caliber, velocity and force, type of bullet,

manufacturer's name and country of manufacture.

(ix) Expiration date of the Import Certificate in international

date format (e.g., 24/12/98) or the date the items must be imported,

whichever is earlier.

(x) Name of the country of export (i.e., United States).

(xi) Additional information. Certain countries may require the

tariff classification number, by class, under the Brussels Convention

(Harmonized Tariff Code) or the specific technical description of an

item. For example, shotguns may need to be described in barrel length,

overall length, number of shots, manufacturer's name and country of

manufacture. The technical description is not the Export Control

Classification Number (ECCN).

(h) Where to obtain Import Certificates. See Supplement No. 6 to

this part for a list of the OAS member countries' authorities

administering the Import Certificate System.

(i) Alterations. After an Import Certificate or official equivalent

document is used to support the issuance of a license, no corrections,

additions, or alterations may be made on the Certificate by any person.

If you desire to explain any information contained on the Import

Certificate or official equivalent document, you may attach a signed

statement to the Import Certificate or official equivalent.

(j) Request for return of Import Certificates. A U.S. exporter may

be requested by a foreign importer to return an unused Import

Certificate. Refer to Sec. 748.9(j) of this part for procedures and

recordkeeping requirements for returning an Import Certificate retained

by the applicant.

10. Part 748 is amended by adding a new Supplement No. 6 to read as

follows:

Supplement No. 6. To part 748--Authorities Issuing Import

Certificates Under the Firearms Convention

[Reserved]

[Status of Convention as of April 13, 1999 had not entered into force.]

PART 762--[AMENDED]

11. Section 762.2 is amended by revising paragraph (b)(36) and

adding (b)(37) and paragraph (b)(38) to read as follows:

Sec. 762.2 Records to be retained.

* * * * *

(b) * * *

(36) Sec. 766.10, Subpoenas;

(37) Sec. 743.1, Wassenaar reports; and

(38) Sec. 748.14, Exports of firearms.

PART 774--[AMENDED]

12. In Supplement No. 1 to part 774 (the Commerce Control List),