67872 Federal Register / Vol. 69, No. 224 / Monday, November 22, 2004 / Proposed Rules 

(b) of this AD, and the actions in paragraph 

(d) of this AD. 

No Reporting Requirements 

(f) Although the Accomplishment 

Instructions of Airbus Service Bulletin A330–

53–3135, Revision 01, dated July 7, 2003; and 

Airbus Service Bulletin A340–53–4141, 

Revision 02, dated August 13, 2004; describe 

procedures for submitting certain 

information to the manufacturer, this AD 

does not require those actions. 

Alternative Methods of Compliance 

(g) In accordance with 14 CFR 39.19, the 

Manager, International Branch, ANM–116, 

FAA, Transport Airplane Directorate, is 

authorized to approve alternative methods of 

compliance for this AD.

Note 1: The subject of this AD is addressed 

in French airworthiness directives 2003–

205(B), dated May 28, 2003; and 2003–

206(B), dated May 28, 2003.

Issued in Renton, Washington, on 

November 10, 2004. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service.

[FR Doc. 04–25793 Filed 11–19–04; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF COMMERCE

Bureau of Industry and Security 

15 CFR Part 700 

[Docket No. 041026293–4293–01] 

RIN 0694–AD35 

Defense Priorities and Allocations 

System: Electronic Transmission of 

Reasons for Rejecting Rated Orders

AGENCY: Bureau of Industry and 

Security, Department of Commerce.

ACTION: Proposed rule.

SUMMARY: This proposed rule would 

amend the Defense Priorities and 

Allocations System (DPAS) regulations 

to allow a person who has rejected a 

rated order to give his or her reasons for 

the rejection through electronic means 

rather than requiring the person to 

submit the rationale in writing.

DATES: Comments must be received on 

or before December 22, 2004.

ADDRESSES: Written comments should 

be sent to the Federal eRulemaking 

Portal: http://www.regulations.gov or to 

William J. Denk, Director of the Defense 

Programs Division, Office of Strategic 

Industries and Economic Security, 

Room 3876, U.S. Department of 

Commerce, 14th Street and Constitution 

Avenue, NW., Washington, DC 20230; 

Fax: (202) 482–5650, or e-mail: 

wdenk@bis.doc.gov.

FOR FURTHER INFORMATION CONTACT: Mr. 

Stephen Baker, Office of Strategic 

Industries and Economic Security, 

telephone: (202) 482–2017 or e-mail: 

sbaker@bis.doc.gov.

SUPPLEMENTARY INFORMATION: Under 

Title I of the Defense Production Act of 

1950, as amended (50 U.S.C. App. 2061 

et seq.), the President is authorized to 

require preferential acceptance and 

performance of contracts or orders 

supporting certain approved national 

defense and energy programs, and to 

allocate materials, services, and 

facilities in such a manner as to promote 

these approved programs. Additional 

priorities authority is found in section 

18 of the Selective Service Act of 1948 

(50 U.S.C. App. 468), 10 U.S.C. 2538, 

and 50 U.S.C. 82. DPAS authority has 

also been extended to support 

emergency preparedness activities 

under Title VI of the Robert T. Stafford 

Disaster Relief and Emergency 

Assistance Act, as amended (45 U.S.C. 

5915 et seq.). 

Originally published in 1984, the 

DPAS regulations were revised on June 

11, 1998 (63 FR 31918), to update, 

streamline, and clarify a number of 

provisions. The purpose of the DPAS is 

to assure the timely availability of 

industrial resources to meet current 

national defense and emergency 

preparedness program requirements, 

including critical infrastructure 

protection and restoration, as well as 

provide an operating system to support 

rapid industrial response in a national 

emergency. In pursuit of the DPAS 

mission, the Department of Commerce 

endeavors to minimize disruptions to 

the normal commercial activities of 

industry. 

The Bureau of Industry and Security 

(BIS) is proposing to amend the 

regulations that require persons to 

transmit rejections of DPAS rated orders 

in writing to allow these transmissions 

to be made electronically. Industry has 

asserted that the current procedure 

hampers efficiency. As a result, BIS 

proposes to amend 15 CFR 700.13(d)(1) 

to allow a person the option of 

transmitting his or her rationale for 

rejecting a rated order electronically to 

the appropriate contracting officer or 

agency. If this rule is adopted, a person 

would be able to transmit his or her 

rationale for rejection either 

electronically or in writing. This 

amendment to the DPAS regulations 

should allow this information to be 

transmitted more quickly. 

Rulemaking Requirements 

1. Executive Order 12866: This rule 

has been determined to be not 

significant under EO 12866. 

2. Executive Order 13132: This rule 

does not contain policies with 

Federalism implications as this term is 

defined in EO 13132.

3. Paperwork Reduction Act: This rule 

contains collection of information 

requirements subject to the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA). 

Notwithstanding any other provision 

of law, no person is required to respond 

to, nor shall any person be subject to a 

penalty for failure to comply with a 

collection of information, subject to the 

requirements of the PRA unless that 

collection of information displays a 

currently valid Office of Management 

and Budget (OMB) control number. 

Comments may be sent to Mr. Stephen 

Baker, Office of Strategic Industries and 

Economic Security; fax: (202) 482–5650; 

e-mail: sbaker@bis.doc.gov. These 

collections have been approved by the 

OMB under control number 0694–0092, 

‘‘Procedures for Acceptance or Rejection 

of a Rated Order,’’ which carries a 

burden hour estimate of 1 to 15 minutes 

per response. Send comments regarding 

these burden estimates or any other 

aspect of these collections of 

information, including suggestions for 

reducing the burden, to David Rostker, 

OMB Desk Officer, by e-mail at 

david_rostker@omb.eop.gov or by fax to 

(202) 395–7285; and to the Regulatory 

Policy Division, Bureau of Industry and 

Security, Department of Commerce, P.O. 

Box 273, Washington, DC 20044. 

4. Regulatory Flexibility Act: The 

Chief Counsel for Regulation of the 

Department of Commerce has certified 

to the Counsel for Advocacy of the 

Small Business Administration that this 

rule would not have a significant 

economic impact on a substantial 

number of small entities (i.e., companies 

or other organizations involved in 

production for the U.S. defense 

industrial base). 

This rule would amend DPAS 

regulations to allow a person who has 

rejected a rated order to give his or her 

reasons for the rejection through 

electronic means rather than requiring 

the person to submit the rationale in 

writing. Previously, BIS required the 

rationale for rejection be transmitted in 

writing, not electronically. This change 

will reduce the burden on industry for 

staff time and postage and improve the 

efficiency of small business record 

keeping. Those small businesses 

without electronic capability will 

Federal Register / Vol. 69, No. 224 / Monday, November 22, 2004 / Proposed Rules 67873

1Consistent with section 201(b) of Executive 

Order 12919, the Department of Commerce has 

delegated authority to DoD to use the DPAS 

regulations for priority rating of contracts and 

orders for all materials, services, and facilities 

needed in support of approved programs with 

respect to military production and construction, 

military assistance to foreign nations, stockpiling, 

outer space, and directly related activities. See

Department of Commerce DPAS Delegation #1 (July 

1, 1998). DoD is the single largest user of the DPAS 

regulations.

continue to be able to submit their 

rejection rationale in writing. 

It is estimated that 25 percent (or 

1,750) of the 7,000 DPAS respondents 

tasked with notifying their customer of 

their rationale for rejection are small 

entities affected by this rule. This 

estimate is based on data provided by 

the Department of Defense (DoD)1 on 

the number of entities participating in 

the DPAS program. DoD estimates that 

one percent (or 7,000) of 700,000 rated 

orders result in rejection notices and 

require the related transmittal of the 

rationale for rejection.

This rule would have a minor positive 

impact on the small entities affected by 

this rule. It would save these entities 

approximately five minutes per 

response (or 146 hours annually) in 

reduced public burden. Because the 

impact to small entities would be small, 

I certify that this rule would not have a 

significant economic impact on a 

substantial number of small entities. 

This amendment does not include any 

new reporting or recordkeeping 

requirements and will not duplicate, 

overlap or conflict with other laws or 

regulations.

List of Subjects in 15 CFR Part 700 

Administrative practice and 

procedure, Business and industry, 

Government contracts, National defense, 

Reporting and recordkeeping 

requirements, Strategic and critical 

materials.

Accordingly, the DPAS regulations 

(15 CFR part 700) are proposed to be 

amended as follows:

PART 700—[AMENDED] 

1. The authority citation is revised to 

read as follows:

Authority: Titles I and VII of the Defense 

Production Act of 1950, as amended (50 

U.S.C. App. 2061, et seq.), Title VI of the 

Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5195 et 

seq.), and Executive Order 12919, as 

amended, 59 FR 29525, 3 CFR, 1994 Comp., 

p. 901, as amended by Executive Order 

13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 

166; section 18 of the Selective Service Act 

of 1948 (50 U.S.C. App. 468), 10 U.S.C. 2538, 

50 U.S.C. 82, and Executive Order 12742, 56 

FR 1079, 3 CFR, 1991 Comp., p. 309; and 

Executive Order 12656, 53 FR 226, 3 CFR, 

1988 Comp., p. 585.

2. Revise § 700.13(d)(1) to read as 

follows:

§ 700.13 Acceptance and rejection of rated 

orders.

* * * * *

(d) Customer notification 

requirements. (1) A person must accept 

or reject a rated order and transmit the 

acceptance or rejection in writing (hard 

copy), or in electronic format, within 

fifteen (15) working days after receipt of 

a DO rated order and within ten (10) 

working days after receipt of a DX rated 

order. If the order is rejected, the person 

must also provide the reasons for the 

rejection, pursuant to paragraphs (b) and 

(c) of this section, in writing (hard copy) 

or electronic format.

* * * * *

Dated: November 12, 2004. 

Peter Lichtenbaum, 

Assistant Secretary for Export 

Administration.

[FR Doc. 04–25718 Filed 11–19–04; 8:45 am] 

BILLING CODE 3510–33–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–145535–02] 

RIN 1545–BB85 

Guidance Regarding Predecessors and 

Successors Under Section 355(e); 

Limitation on Gain Recognition Under 

Section 355(e)

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains 

proposed regulations that define the 

terms predecessor and successor for 

purposes of section 355(e). These 

proposed regulations provide guidance 

in determining whether a corporation is 

a predecessor or successor of a 

distributing or controlled corporation, 

as well as rules to assist taxpayers in 

determining whether an acquisition of 

an interest in a corporation would cause 

a distributing corporation to recognize 

gain under section 355(e). These 

proposed regulations affect corporations 

that distribute the stock of controlled 

corporations in distributions described 

in section 355.

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by February 22, 2005.

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–145535–02), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be handdelivered Monday through Friday 

between the hours of 8 a.m. and 4 p.m. 

to: CC:PA:LPD:PR (REG–145535–02), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC, or sent 

electronically, via the IRS Internet site 

at http://www.irs.gov/regs or via the 

Federal eRulemaking Portal at http://

www.regulations.gov (IRS—REG–

145535–02).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, 

Krishna P. Vallabhaneni at (202) 622–

7550; concerning submissions of 

comments or requests for a hearing, 

Robin R. Jones, (202) 622–7180 (not tollfree numbers).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

This document contains proposed 

regulations under section 355(e) of the 

Internal Revenue Code of 1986. Section 

355(e), enacted as part of the Taxpayer 

Relief Act of 1997 (Pub. L. 105–34, 111 

Stat 788 (1997)), provides that stock of 

a controlled corporation (Controlled) 

generally will not be treated as qualified 

property under section 355(c)(2) or 

361(c)(2) if the Controlled stock is 

distributed as part of a plan (or series of 

related transactions) pursuant to which 

one or more persons acquire directly or 

indirectly stock representing a 50-

percent or greater interest in the 

distributing corporation (Distributing) or 

Controlled. On April 26, 2002, the 

Internal Revenue Service (IRS) and the 

Treasury Department published 

temporary regulations (TD 8988) in the 

Federal Register (67 FR 20632) under 

section 355(e) providing guidance 

regarding whether a distribution and an 

acquisition of Distributing or Controlled 

are part of a ‘‘plan (or series of related 

transactions).’’ See Treas. Reg. § 1.355–

7T. Section 355(e)(4)(D) provides that, 

for purposes of section 355(e), ‘‘any 

reference to a controlled corporation or 

a distributing corporation shall include 

a reference to any predecessor or 

successor of such corporation.’’

Practitioners have commented that 

guidance regarding the definitions of 

predecessor and successor is desirable. 

Therefore, these regulations propose 

definitions of predecessor and 

successor, rules for determining 

whether there has been an acquisition of 

a predecessor of Distributing, 

Distributing, or Controlled in certain