Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Proposed Rules 57895

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

15 CFR Chapter VII 

[Docket No. 040910262–4262–01] 

Effects of Foreign Policy-Based Export 

Controls

AGENCY: Bureau of Industry and 

Security, Commerce.

ACTION: Request for comments on 

foreign policy-based export controls. 

SUMMARY: The Bureau of Industry and 

Security (BIS) 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modified, rescinded or extended.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, BIS is 

seeking comments on how existing 

foreign policy-based export controls 

have affected exporters and the general 

public.

DATES: Comments must be received by 

November 19, 2004.

ADDRESSES: Written comments (three 

copies) should be sent to Sheila 

Quarterman, Regulatory Policy Division, 

Bureau of Industry and Security, 

Department of Commerce, P.O. Box 273, 

Washington, DC 20044. Alternatively, 

comments may be e-mailed to Sheila 

Quarterman at SQuarter@bis.doc.gov.

FOR FURTHER INFORMATION CONTACT: Joan 

Roberts, Director, Foreign Policy 

Division, Office of Nonproliferation and 

Treaty Compliance, Bureau of Industry 

and Security, Telephone: (202) 482–

4252. Copies of the current Annual 

Foreign Policy Report to the Congress 

are available at http://www.bis.doc.gov/

PoliciesAndRegulations/

04ForPolControls/index.htm and copies 

may also be requested by calling the 

Office of Nonproliferation and Treaty 

Compliance at the number listed above.

SUPPLEMENTARY INFORMATION: Foreign 

policy based controls in the Export 

Administration Regulations (EAR) are 

implemented pursuant to section 6 of 

the Export Administration Act of 1979, 

as amended. The current foreign policybased export controls maintained by the 

Bureau of Industry and Security (BIS) 

are set forth in the EAR, including in 

parts 742 (CCL Based Controls), 744 

(End-User and End-Use Based Controls) 

and 746 (Embargoes and Special 

Country Controls). These controls apply 

to a range of countries, items and 

activities including: high performance 

computers (§ 742.12); certain general 

purpose microprocessors for ‘‘military 

end-uses’’ and ‘‘military end-users’’

(§ 744.17); significant items (SI): hot 

section technology for the development, 

production, or overhaul of commercial 

aircraft engines, components, and 

systems (§ 742.14); encryption items 

(§ 742.15 and § 744.9); crime control and 

detection commodities (§ 742.7); 

specially designed implements of 

torture (§ 742.11); certain firearms 

included within the Inter-American 

Convention Against the Illicit 

Manufacturing of and Trafficking in 

Firearms, Ammunition, Explosives, and 

Other Related Materials (§ 742.17); 

regional stability commodities and 

equipment (§ 742.6); equipment and 

related technical data used in the 

design, development, production, or use 

of missiles (§ 742.5 and § 744.3); 

chemical precursors and biological 

agents, associated equipment, technical 

data, and software related to the 

production of chemical and biological 

agents (§ 742.2 and § 744.4) and various 

chemicals included in those controlled 

pursuant to the Chemical Weapons 

Convention (§ 742.18); nuclear 

propulsion (§ 744.5); aircraft and vessels 

(§ 744.7); embargoed countries (part 

746); countries designated as supporters 

of acts of international terrorism 

(§§ 742.8, 742.9, 742.10, 742.19, 742.20, 

746.2, 746.3, and 746.7); certain entities 

in Russia (§ 744.10); and individual 

terrorists and terrorist organizations 

(§§ 744.12, 744.13 and § 744.14. 

Attention is also given in this context to 

the controls on nuclear-related 

commodities and technology (§§ 742.3 

and 744.2), which are, in part, 

implemented under section 309(c) of the 

Nuclear Non Proliferation Act.

Under the provisions of section 6 of 

the Export Administration Act of 1979, 

as amended (EAA), export controls 

maintained for foreign policy purposes 

require annual extension. Section 6 of 

the EAA requires a report to Congress 

when foreign policy-based export 

controls are extended. The EAA expired 

on August 20, 2001. Executive Order 

13222 of August 17, 2001 (3 CFR, 2001 

Comp., p. 783 (2002)), which has been 

extended by successive Presidential 

Notices, the most recent being that of 

August 6, 2004 (69 FR 48763, August 

10, 2004), continues the EAR and, to the 

extent permitted by law, the provisions 

of the EAA, in effect under the 

International Emergency Economic 

Powers Act (50 U.S.C. 1701–1706 

(2000). The Department of Commerce, 

insofar as appropriate, is following the 

provisions of section 6 in reviewing 

foreign policy-based export controls, 

requesting public comments on such 

controls, and submitting a report to 

Congress. 

In January 2004, the Secretary of 

Commerce, on the recommendation of 

the Secretary of State, extended for one 

year all foreign policy-based export 

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-based export controls for another 

year. Among the criteria considered in 

determining whether to continue or 

revise U.S. foreign policy-based export 

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, software 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. Whether 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. 

BIS 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. BIS 

is also interested in industry 

information relating to the following: 

1. Information on the effect of foreign 

policy-based export 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 policybased export controls. 

2. Information on controls maintained 

by U.S. trade partners. For example, 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 

57896 Federal Register / Vol. 69, No. 187 / Tuesday, September 28, 2004 / Proposed Rules 

1Electronic Tariff Filings, Notice of Proposed 

Rulemaking, 69 FR 43929 (July 23, 2004), FERC 

Stats. & Regs. Proposed Regulations ¶ 32,575 (July 

8, 2004).

which are similar to U.S. foreign policybased export 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-based export 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-based export 

controls on the trade or acquisitions by 

intended targets of the controls.

7. Data or other information as to the 

effect of foreign policy-based export 

controls on overall trade at the level of 

individual industrial sectors. 

8. Suggestions as to how to measure 

the effect of foreign policy-based export 

controls on trade. 

9. Information on the use of foreign 

policy-based export controls on targeted 

countries, entities, or individuals. 

BIS is also interested in comments 

relating generally to the extension or 

revision of existing foreign policy-based 

export 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 BIS 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, BIS 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 Office of Administration, Bureau 

of Industry and Security, U.S. 

Department of Commerce, displays 

these public comments on BIS’s 

Freedom of Information Act (FOIA) Web 

site at http://www.bis.doc.gov/foia. This 

office does not maintain a separate 

public inspection facility. If you have 

technical difficulties accessing this Web 

site, please call BIS’s Office of 

Administration at (202) 482–2165 for 

assistance.

Dated: September 22, 2004. 

Matthew S. Borman, 

Acting Assistant Secretary for Export 

Administration.

[FR Doc. 04–21734 Filed 9–27–04; 8:45 am] 

BILLING CODE 3510–33–P

DEPARTMENT OF ENERGY

Federal Energy Regulatory 

Commission 

18 CFR Parts 35, 131, 154, 157, 250, 

281, 284, 300, 341, 344, 346, 347, 348, 

375, and 385 

[Docket No. RM01–5–000] 

Electronic Tariff Filings 

September 17, 2004.

AGENCY: Federal Energy Regulatory 

Commission, DOE.

ACTION: Notice of proposed rulemaking; 

extension of comment deadline. 

SUMMARY: The Federal Energy 

Regulatory Commission is extending the 

October 4, 2004, deadline for comments 

on the Commission’s July 8, 2004, 

Notice of Proposed Rulemaking. (69 FR 

43929, July 23, 2004.) A document will 

be published in the Federal Register to 

establish the new comment date.

DATES: A document will be published in 

the Federal Register establishing the 

new comment date.

ADDRESSES: Comments may be filed 

electronically via the eFiling link on the 

Commission’s Web site at http://

www.ferc.gov. Commenters unable to 

file comments electronically must send 

an original and 14 copies of their 

comments to: Federal Energy Regulatory 

Commission, Office of the Secretary, 

888 First Street, NE., Washington, DC 

20426. Refer to the Comment 

Procedures section of the preamble of 

the Notice of Proposed Rulemaking for 

additional information on how to file 

comments.

FOR FURTHER INFORMATION CONTACT:

H. Keith Pierce (Technical Information), 

Office of Markets, Tariffs, and Rates, 

Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426. (202) 502–

8525, Keith.Pierce@ferc.gov.

Jamie Chabinsky (Legal Information), 

Office of the General Counsel, Federal 

Energy Regulatory Commission, 888 

First Street, NE., Washington, DC 

20426. (202) 502–6040, 

Jamie.Chabinsky@ferc.gov.

Bolton Pierce (Software Information), 

Office of Markets, Tariffs, and Rates, 

Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426. (202) 502–

8803, Bolton.Pierce@ferc.gov.

SUPPLEMENTARY INFORMATION: 

Electronic Tariff Filings; Notice of 

Extension of Comment Deadline 

Take notice that the Federal Energy 

Regulatory Commission is extending the 

October 4, 2004, deadline for comments 

on the Commission’s July 8, 2004, 

Notice of Proposed Rulemaking 1 on 

electronic tariff and rate case filing. This 

extension is to allow time for continued 

development and experimental use of 

the software to be used for tariff and rate 

filings. A subsequent notice will be 

published establishing the new 

comment date as well as the date for the 

technical conference.

For more information, please contact: 

Keith Pierce, Office of Markets, Tariffs, 

and Rates, Federal Energy Regulatory 

Commission, 888 First Street, NE., 

Washington, DC 20426. 202–502–8525, 

Keith.Pierce@ferc.gov.

Magalie R. Salas, 

Secretary.

[FR Doc. 04–21467 Filed 9–27–04; 8:45 am] 

BILLING CODE 6717–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–129771–04] 

RIN 1545–BD49 

Guidance Under Section 951 for 

Determining Pro Rata Share; 

Correction

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Correction to notice of proposed 

rulemaking. 

SUMMARY: This document contains 

corrections to notice of proposed 

rulemaking that were published in the 

Federal Register on August 6, 2004 (69 

FR 47822) providing guidance for 

determining a United States 

shareholder’s pro rata share of a 

controlled foreign corporation’s (CFC’s) 

subpart F income, previously excluded 

subpart F income withdrawn from 

investment in less developed countries, 

previously excluded subpart F income 

withdrawn from foreign base company 

shipping operations, and amounts 

determined under section.

FOR FURTHER INFORMATION CONTACT:

Jonathan A. Sambur at (202) 622–3840 

(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

The proposed regulations that are the 

subject of these corrections are under