Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules 8315 

That airspace extending upward from 700 

feet above the surface within a 6.3-mile 

radius of the Middlesboro—Bell County. 

* * * * * 

Issued in College Park, Georgia on 

February 13, 2007. 

Mark D. Ward, 

Group Manager, System Support Group, 

Eastern Service Center. 

[FR Doc. 07–857 Filed 2–23–07; 8:45 am] 

BILLING CODE 4910–13–M 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 740 

[Docket No. 0612242560–7024–01] 

RIN 0694–AD93 

Country Group C: Destinations of 

Diversion Concern 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: The Department of 

Commerce’s Bureau of Industry and 

Security (BIS) is considering 

amendments to the Export 

Administration Regulations (EAR) to 

further the national security interests of 

the United States by designating 

Country Group C for countries that are 

‘‘Destinations of Diversion Concern.’’

This amendment would establish 

license requirements for exports and 

reexports to countries that represent a 

concern for the diversion of items 

subject to the EAR. BIS by this notice 

requests comments on Country Group C. 

DATES: Comments are due no later than 

close of business March 12, 2007. 

ADDRESSES: Comments should be sent to 

publiccomments@bis.doc.gov, fax (202) 

482–3355, or to Regulatory Policy 

Division, Bureau of Industry and 

Security, Room H2705, U.S. Department 

of Commerce, Washington, DC 20230. 

Please refer to regulatory identification 

number (RIN) 0694–AD93 in all 

comments, and in the subject line of email comments. Comments on the 

collection of information should be sent 

to David Rostker, Office of Management 

and Budget (OMB), by e-mail to 

David_Rostker@omb.eop.gov, or by fax 

to (202) 395–7285. 

FOR FURTHER INFORMATION CONTACT: 

Sharron Cook, Office of Exporter 

Services, Bureau of Industry and 

Security, Telephone (202) 482–2440. 

SUPPLEMENTARY INFORMATION: 

Background 

The Department of Commerce seeks to 

address the threat to national security 

caused by the illicit transshipment, 

reexport, and diversion in international 

trade of items subject to the EAR. 

Through government-to-government and 

government-to-industry outreach, the 

Department of Commerce encourages 

transshipment countries to strengthen 

their international export control 

practices. 

This effort includes both governmentto-government cooperation and U.S. 

Government cooperation and 

information-sharing with the private 

sector. To strengthen government-togovernment cooperation, the 

Department of Commerce has worked 

with its counterpart agencies to: (1) 

Develop or strengthen export control 

regimes, (2) promote information and 

data exchanges, and (3) strengthen 

cooperation and facilitate enforcement. 

Specific initiatives to develop export 

control capabilities have included 

technical assistance in the areas of legal 

framework and licensing procedures 

and practices, enforcement training, and 

industry outreach. To strengthen 

cooperation and facilitate enforcement, 

the Department of Commerce has posted 

export control attache ́s to serve as 

liaisons in many of these areas, and has 

sought agreements and other 

government-to-government cooperation 

in certain destinations. 

The Department of Commerce has 

also concentrated on outreach to key 

companies involved in forwarding, 

processing, and transporting goods 

through transshipment points, i.e., 

freight forwarders, integrators, air cargo 

carriers, and shipping lines. The 

Department of Commerce has sought to 

enhance cooperation with these private 

sector entities via informal meetings, the 

establishment of communication 

channels to facilitate information 

sharing, the establishment and sharing 

of ‘‘best practices,’’ and by working with 

the foreign trade zone board to address 

transshipment issues. 

The diversion of items subject to the 

EAR could augment the capabilities of 

terrorists and state sponsors of 

terrorism, and significantly undermine 

international counterproliferation 

efforts. The illegal diversion of such 

items could also compromise the 

effectiveness of U.S. export control 

laws. In recent years, diversions have 

contributed to a number of major cases 

involving the violation of U.S. export 

control laws for dual-use goods. 

Request for Comment 

Consideration of designating Country 

Group C to identify ‘‘Destinations of 

Diversion Concern’’ is part of the 

Department of Commerce’s effort to 

strengthen the trade compliance and 

export control systems of countries that 

are transshipment hubs. By working to 

strengthen those systems, the 

Department of Commerce seeks to 

enhance international security and 

confidence in international trade flows. 

Country Group C would identify those 

countries of diversion concern, based on 

certain criteria including, but not 

limited to: 

• Transit and transshipment volume; 

• Inadequate export/reexport 

controls; 

• Demonstrated inability to control 

diversion activities in this destination; 

• Government not directly involved 

in diversion activities; and 

• Government unwilling or unable to 

cooperate with the U.S. in interdiction 

efforts. 

As a result of being placed into 

Country Group C, the licensing policy 

would likely change for items going to 

any country designated as a 

‘‘Destination of Diversion Concern.’’

Such changes could include changes in 

License Exception eligibility (Part 740 of 

the EAR), License Requirements and 

Licensing Policy (Part 742 of the EAR), 

and End-User and End-Use Based 

Controls (Part 744 of the EAR). The 

result of these changes could mean that 

more license applications might be 

required; more stringent license review 

policies might be implemented, which 

could result in less approvals or more 

conditions on licenses; authorizations 

may be delayed because of increased 

end-user checks; or authorizations may 

decrease because of diversion risks for 

such countries. 

Rulemaking Requirements 

This advance notice of proposed 

rulemaking rule has been determined to 

be significant for purposes of E.O. 

12866. 

Christopher A. Padilla, 

Assistant Secretary for Export 

Administration. 

[FR Doc. E7–3252 Filed 2–23–07; 8:45 am] 

BILLING CODE 3510–33–P 


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