Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 14403 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 710, 715, 716, 719, and 

721 

[Docket No. 060831231–7030–02] 

RIN 0694–AD53 

Chemical Weapons Convention 

Regulations: UDOC ‘‘Change in 

Inspection Status Form;’’ Amendments 

to Records Review and Recordkeeping 

Requirements; Additions to the List of 

States Parties to the Chemical 

Weapons Convention (CWC) 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is publishing this final 

rule to amend the Chemical Weapons 

Convention Regulations (CWCR) to 

expedite the collection of information 

concerning the inspection status of 

plant sites that produce unscheduled 

discrete organic chemicals (UDOCs) 

subject to the declaration requirements 

of the CWCR, to clarify the scope of the 

CWCR records review and 

recordkeeping requirements, and to 

update the maximum civil penalty that 

may be imposed for violations of the 

CWCR restrictions on imports of 

Chemical Weapons Convention (CWC) 

Schedule 1 and Schedule 2 chemicals. 

The CWCR include requirements to 

declare certain activities, involving 

scheduled chemicals and UDOCs, and 

to provide access for on-site verification 

by international inspectors of certain 

declared facilities in the United States. 

Specifically, this final rule amends 

the CWCR by revising the annual 

declaration requirements for UDOCs to 

allow a ‘‘declared’’ plant site currently 

subject to inspection, which anticipates 

that its production of UDOCs during the 

current calendar year will be below the 

inspection threshold level indicated in 

the CWCR, to submit a Change in 

Inspection Status Form to BIS by 

December 15th of the current calendar 

year. In addition, any such UDOC plant 

site containing at least one plant that 

anticipates producing an individual PSF 

chemical (i.e., a UDOC containing the 

elements phosphorus, sulfur or fluorine) 

in quantities that exceed the declaration 

threshold for such chemicals will have 

the option of submitting its Annual 

Declaration on Past Activities, in lieu of 

a Change in Inspection Status Form, by 

December 15th of the current calendar 

year. Otherwise, the CWCR require that 

the Annual Declaration on Past 

Activities be submitted by February 

28th of the following year. The 

information provided to BIS, as a result 

of this change, will ensure that the plant 

site is not subject to inspection during 

the first 90 days of the next calendar 

year (i.e., the year after the UDOC 

activities took place), which is the 

period when the United States compiles 

its annual declaration on past activities 

for submission to the Organization for 

the Prohibition of Chemical Weapons 

(OPCW). In addition, this information 

will strengthen the verification regime 

of the CWC by allowing the OPCW to 

schedule inspections, on a year-round 

basis, of those UDOC facilities in the 

United States that meet or exceed the 

inspection threshold level indicated in 

the CWCR. 

This rule also amends the CWCR by 

revising the records review provisions 

to clarify that a facility must provide the 

OPCW Inspection Team with access to 

all supporting materials and 

documentation used by the facility to 

prepare declarations and to otherwise 

comply with the CWCR, including 

records related to activities that have 

taken place at the facility since the 

beginning of the previous calendar year 

(i.e., up to and including the date of the 

inspection), even if the facility has not 

submitted its current year Annual 

Declaration on Past Activities to BIS at 

the time the inspection takes place. 

In addition, this rule revises the 

CWCR records review and 

recordkeeping requirements to clarify 

that the types of records that are subject 

to these requirements include all 

supporting materials and 

documentation associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals and 

feedstock. The purpose of this 

clarification is to ensure that the CWCR 

records review and recordkeeping 

requirements fully conform with the 

inspection aims described in the 

inspection provisions of the CWCR, 

which include verifying the absence of 

Schedule 1 chemicals and the nondiversion of Schedule 1 and Schedule 2 

chemicals. 

This rule amends the enforcement 

provisions of the CWCR to increase the 

maximum civil penalty that may be 

imposed for violations of the CWCR 

restrictions on imports of CWC 

Schedule 1 or Schedule 2 chemicals 

from $11,000 to $50,000 to reflect 

amendments to the International 

Emergency Economic Powers Act 

(IEEPA) made by the USA PATRIOT 

Improvement and Reauthorization Act 

of 2005, which was enacted on March 

9, 2006. 

Finally, this rule updates the list of 

countries that currently are States 

Parties to the CWC by adding the 

Central African Republic and Comoros, 

which recently became States Parties, 

and by replacing the listing for Serbia 

and Montenegro with a separate listing 

for each country. 

DATES: This rule is effective March 28, 

2007. Although there is no formal 

comment period, public comments on 

this regulation are welcome on a 

continuing basis. 

ADDRESSES: You may submit comments 

on this rule, identified by RIN 0694–

AD53, by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: publiccomments@ 

bis.doc.gov. Include ‘‘RIN 0694–AD53’’

in the subject line of the message. 

• Fax: (202) 482–3355. Please alert 

the Regulatory Policy Division, by 

calling (202) 482–2440, if you are faxing 

comments. 

• Mail or Hand Delivery/Courier: 

Willard Fisher, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

ATTN: RIN 0694–AD53. 

This rule contains a collection of 

information approved by OMB under 

Control Number 0694–0091 (Chemical 

Weapons Convention—Declaration and 

Report Forms). You may submit 

comments regarding this collection of 

information (identified by OMB Control 

No. 0694–0091), including suggestions 

for reducing the burden, 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; and to the Regulatory 

Policy Division, Bureau of Industry and 

Security, Department of Commerce, P.O. 

Box 273, Washington, DC 20044. 

Comments on this collection of 

information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AD53)—all 

comments on the latter should be 

submitted by one of the four methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: For 

questions of a general or regulatory 

nature, contact the Regulatory Policy 

Division, telephone: (202) 482–2440. 

For program information on 

declarations and reports, contact the 

Treaty Compliance Division, Office of 

Nonproliferation Controls and Treaty 

Compliance, telephone: (703) 605–4400; 

for legal questions, contact Rochelle 


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14404 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

Woodard, Office of the Chief Counsel 

for Industry and Security, telephone: 

(202) 482–5301. 

SUPPLEMENTARY INFORMATION: 

Background 

This final rule amends the Chemical 

Weapons Convention Regulations 

(CWCR) to expedite the collection of 

information concerning the inspection 

status of plant sites that produce 

unscheduled discrete organic chemicals 

(UDOCs) that are subject to the 

declaration requirements of the CWCR. 

This rule also clarifies the scope of the 

CWCR records review and 

recordkeeping requirements. In 

addition, this rule updates the 

maximum civil penalty that may be 

imposed for violations of the CWCR 

restrictions on imports of CWC 

Schedule 1 and Schedule 2 chemicals. 

These changes were included in a 

proposed rule and request for comment 

that BIS published on October 6, 2006 

(71 FR 59032). BIS did not receive any 

public comments on the proposed rule 

and is publishing this final rule to 

implement these changes. 

The CWCR include requirements to 

declare certain activities, involving 

scheduled chemicals and UDOCs, and 

to provide access for on-site verification 

by international inspectors of certain 

declared facilities in the United States. 

The CWCR implement the provisions of 

the Convention on the Development, 

Production, Stockpiling and Use of 

Chemical Weapons and on Their 

Destruction, also known as the 

Chemical Weapons Convention (CWC or 

Convention), affecting U.S. industry and 

U.S. persons, in accordance with the 

provisions of the Chemical Weapons 

Convention Implementation Act of 1998 

(the Act or CWCIA) (22 U.S.C. 6701 et 

seq.). The Act authorizes the United 

States to require the U.S. chemical 

industry and other private entities to 

submit declarations, notifications and 

other reports and also to provide access 

for on-site inspections conducted by 

inspectors from the Organization for the 

Prohibition of Chemical Weapons 

(OPCW). 

The CWC, which entered into force on 

April 29, 1997, is an arms control treaty 

with significant nonproliferation 

aspects. As such, the CWC bans the 

development, production, stockpiling or 

use of chemical weapons and prohibits 

States Parties to the CWC from assisting 

or encouraging anyone to engage in a 

prohibited activity. The CWC provides 

for declaration and inspection of all 

States Parties’ chemical weapons and 

chemical weapon production facilities, 

and oversees the destruction of such 

weapons and facilities. To fulfill its 

arms control and nonproliferation 

objectives, the CWC also establishes a 

comprehensive verification scheme and 

requires the declaration and inspection 

of facilities that produce, process or 

consume certain ‘‘scheduled’’ chemicals 

and UDOCs, many of which have 

significant commercial applications. 

Part IX of the Verification Annex of 

the CWC contains provisions that apply 

to declarations and inspection of ‘‘other 

chemical production facilities,’’ which 

are referred to as UDOC plant sites in 

Part 715 of the CWCR. Plant sites that 

declare under Part 715 of the CWCR 

must submit an Annual Declaration on 

Past Activities describing UDOC 

activities subject to declaration during 

the previous calendar year. These 

annual declarations must be submitted 

to BIS no later than February 28th of the 

year that follows the calendar year in 

which the UDOC activities took place. 

The U.S. Government compiles these 

declarations into the annual U.S. 

declaration on past activities, which it 

submits to the OPCW within 90 days 

after the beginning of the calendar year 

in which the UDOC plant sites submit 

their individual declarations to BIS. 

Part 716 of the CWCR states that a 

UDOC plant site is subject to inspection 

during a specific calendar year only if 

it produced in excess of 200 metric tons 

aggregate of UDOCs during the previous 

calendar year (see § 716.1(b)(4)). A plant 

site cannot be subject to inspection, for 

UDOC activities that took place during 

the previous calendar year, if: (1) A 

declaration is not required to be 

submitted to the OPCW or (2) a 

declaration is submitted to the OPCW 

with aggregate quantities of UDOCs 

below 200 metric tons. The due date for 

a UDOC plant site to submit its Annual 

Declaration on Past Activities to BIS is 

February 28th of the year following the 

calendar year in which the UDOC 

activities took place. Prior to the 

publication of this final rule, there was 

no mechanism in the CWCR that 

allowed the U.S. Government to 

determine which UDOC plant sites were 

subject to inspection and to notify the 

OPCW concerning the inspection status 

of such plant sites, prior to the due date 

for submitting the U.S. annual 

declaration on past activities to the 

OPCW (i.e., within 90 days after the 

beginning of the calendar year). 

Therefore, as a practical matter, UDOC 

plant sites in the United States did not 

become subject to inspection by the 

OPCW until the U.S. annual declaration 

on past activities had been submitted to 

the OPCW. BIS recognized that 

universal application of this approach 

would interfere with the conduct of 

UDOC inspections in States Parties for 

the first 90 days of each calendar year 

(i.e., a ‘‘90-day gap’’), which could have 

the long-term effect of undermining the 

verification regime of the CWC. 

In order to eliminate this ‘‘90-day 

gap,’’ BIS is amending the CWCR by 

revising the annual declaration 

requirements for UDOCs to allow a 

‘‘declared’’ plant site currently subject 

to inspection, which anticipates that its 

production of UDOCs during the current 

calendar year will be below the 

inspection threshold level indicated in 

the CWCR, to submit a Change in 

Inspection Status Form to BIS, so that 

BIS can inform the OPCW that the plant 

site will not be subject to inspection 

during the next calendar year. This new 

form must be submitted to BIS no later 

than December 15th of the current 

calendar year (i.e., the year in which 

UDOC production is anticipated to be 

below the inspection threshold level). 

The U.S. Government will then inform 

the OPCW that the plant site will not be 

subject to inspection during the next 

calendar year. 

Certain plant sites will be given the 

option of submitting their Annual 

Declaration on Past Activities in lieu of 

the Change in Inspection Status Form. 

In choosing this alternative, however, 

the plant sites will have to submit their 

Annual Declaration on Past Activities to 

BIS by December 15th of the current 

calendar year, instead of February 28th 

of the following year, as is normally 

required under the CWCR. The only 

UDOC plant sites that will be eligible to 

use this option are those that anticipate 

producing by synthesis one or more PSF 

chemicals (i.e., UDOCs containing the 

elements phosphorus, sulfur or fluorine) 

during the current calendar year, in 

quantities that would require them to 

submit an Annual Declaration on Past 

Activities to BIS, but that would be 

below the CWCR inspection threshold 

level for UDOCs (i.e., plant sites that 

contain at least one plant that 

anticipates producing in excess of 30 

metric tons of an individual PSF 

chemical, but that do not anticipate 

producing by synthesis in excess of 200 

metric tons aggregate of all UDOCs 

during the current calendar year). 

If, subsequent to submitting its 

Change in Inspection Status Form to 

BIS, a UDOC plant site determines that 

the production by synthesis of UDOCs 

at the plant site actually exceeded the 

UDOC inspection threshold level 

specified in § 715.1(d)(1) of the CWCR, 

the plant site must indicate this fact 

when it submits its Annual Declaration 

on Past Activities to BIS and explain, on 

Form B, why the plant site exceeded the 

UDOC inspection threshold. In addition, 

any UDOC plant site that chooses the 


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option of submitting its Annual 

Declaration on Past Activities to BIS by 

December 15th, in lieu of a Change in 

Inspection Status Form, and 

subsequently determines that the 

production by synthesis of UDOCs at 

the plant site actually exceeded the 

UDOC inspection threshold level 

specified in § 715.1(d)(1) of the CWCR, 

must submit an amendment to its 

Annual Declaration on Past Activities 

(see § 715.2 of the CWCR) indicating 

this fact and explaining, on Form B, 

why the plant site exceeded the UDOC 

inspection threshold. 

Currently inspectable UDOC plant 

sites that do not submit either a Change 

in Inspection Status Form or an Annual 

Declaration on Past Activities by 

December 15th of the current calendar 

year, as provided in this rule, will 

remain subject to inspection through at 

least the 90-day period at the beginning 

of the next calendar year. 

This final rule also amends the CWCR 

to clarify the scope of the records review 

requirements for inspections. Prior to 

the publication of this rule, Section 

716.4(e) of the CWCR was unclear 

concerning the extent to which an 

OPCW Inspection Team would have 

access to a facility’s records that were 

related to activities that took place at the 

facility during the previous calendar 

year. This rule amends Section 716.4(e) 

of the CWCR to clarify that a facility 

undergoing inspection must provide the 

Inspection Team with access to all 

supporting materials and 

documentation used by the facility to 

prepare declarations and to otherwise 

comply with the CWCR, including 

records related to activities that have 

taken place at the facility since the 

beginning of the previous calendar year 

(i.e., up to and including the date of the 

inspection), regardless of whether or not 

the facility has submitted its Annual 

Declaration on Past Activities to BIS at 

the time of the inspection. 

In addition, this final rule amends 

Section 716.4(e) of the CWCR to ensure 

that the CWCR records review 

requirements for inspections fully 

conform with the inspection aims 

described in Part 716 of the CWCR. 

Since BIS began hosting inspections 

under the CWCR, the standard practice 

has been for facilities to provide, as 

appropriate, records associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or product chemicals formed 

from such chemicals and feedstock. The 

OPCW Inspection Team requires access 

to these types of records in order to 

accomplish the aims of the inspections, 

as described in Parts VI–IX of the 

Verification Annex of the CWC and in 

Part 716 of the CWCR. Parts VI–IX of the 

CWC Verification Annex establish the 

general and specific aims for 

inspections, including verification of 

the absence of Schedule 1 chemicals 

and the non-diversion of Schedule 1 

and Schedule 2 chemicals. Part 716 of 

the CWCR describes these CWC 

inspection aims and establishes 

requirements for providing Inspection 

Teams with access to records in order to 

achieve these aims. Prior to the 

publication of this rule, Section 716.4(e) 

of the CWCR did not clearly indicate 

that facilities were required to make 

available to the Inspection Team all 

supporting materials and 

documentation associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals and 

feedstock. Therefore, this rule amends 

Section 716.4(e) to clearly indicate that 

the facility must make all such records 

available to the Inspection Team. 

Consistent with the clarification to 

Section 716.4(e) of the CWCR described 

above, this final rule also amends the 

recordkeeping provisions in Section 

721.2(a) of the CWCR to specifically 

require that each facility subject to 

inspection under Part 716 of the CWCR 

retain all records associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals. 

This rule amends the enforcement 

provisions in Part 719 of the CWCR to 

increase the maximum civil penalty that 

may be imposed for violations of the 

CWCR restrictions on imports of CWC 

Schedule 1 or Schedule 2 chemicals 

from $11,000 to $50,000 to reflect 

amendments to Section 206 of the 

International Emergency Economic 

Powers Act (IEEPA) (50 U.S.C. 1705) 

made by the USA PATRIOT ACT 

Improvement and Reauthorization Act 

of 2005 (Public Law 109–177), which 

was enacted on March 9, 2006. 

Specifically, this rule amends Section 

719.3(b) of the CWCR and the footnote 

thereto to increase the maximum civil 

penalty that BIS may impose under 

IEEPA. As a result of this amendment to 

the CWCR, any violations of the CWC 

Schedule 1 or Schedule 2 import 

restrictions described in Section 

719.3(a) of the CWCR will be subject to 

the increased IEEPA maximum civil 

penalty of $50,000. 

Finally, this rule revises Supplement 

No. 1 to Part 710 of the CWCR (titled 

‘‘States Parties to the Convention on the 

Prohibition of the Development, 

Production, Stockpiling, and Use of 

Chemical Weapons and on Their 

Destruction’’) by adding the Central 

African Republic and Comoros, which 

recently became States Parties to the 

CWC. As a result of this change, the 

CWCR declaration and reporting 

requirements for these two countries 

will be the same as those that apply to 

other States Parties. In addition, the 

listing for Serbia and Montenegro is 

removed and both countries are now 

listed, separately. Each country is now 

a State Party to the CWC and the United 

States has recognized Montenegro as a 

sovereign state. See Press Release, U.S. 

Department of State, U.S. Recognizes 

Montenegro as Independent State (June 

13, 2006), available at http:// 

www.state.gov/secretary/rm/2006/ 

67839.htm. 

Rulemaking Requirements 

1. This rule has been determined to be 

not significant for purposes of E.O. 

12866. 

2. 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 Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (PRA), unless 

that collection of information displays a 

currently valid Office of Management 

and Budget (OMB) Control Number. 

This rule contains a collection of 

information subject to the requirements 

of the PRA. This collection has been 

approved by OMB under Control 

Number 0694–0091 (Chemical Weapons 

Convention—Declaration and Report 

Forms), which carries burden hour 

estimates, per respondent, of 10.6 hours 

for Schedule 1 Chemicals, 11.9 hours for 

Schedule 2 chemicals, 2.5 hours for 

Schedule 3 chemicals, 5.3 hours or 5.1 

hours for unscheduled discrete organic 

chemicals (depending upon whether an 

Annual Declaration on Past Activities or 

a No Changes Authorization Form, 

respectively, is required), 0.17 hours for 

Schedule 1 notifications, and 1.7 hours 

for compliance review requests. These 

burden hour estimates also include all 

types of amendments required under the 

Chemical Weapons Convention 

Regulations (CWCR). The Declaration 

and Report Handbooks include a ‘‘Guide 

to Submission of Forms’’ which also 

identifies the specific forms that must 

be included in a declaration or report 

package. To calculate the number of 

hours it takes to complete a specific 

type of declaration or report, multiply 

the number of forms required for a 

specific declaration or report type by the 

number of hours estimated to complete 

each form. BIS will use the information 

contained in declarations and reports 

submitted by U.S. persons to compile 


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14406 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

the U.S. National Industrial Declaration 

in order to meet our obligations under 

the Chemicals Weapons Convention. 

BIS will submit the U.S. National 

Industrial Declaration to the United 

States National Authority who will 

forward the Declaration to the 

Organization for the Prohibition of 

Chemical Weapons as required by the 

Convention. 

This rule will increase the burden 

hours under the approved collection 

(i.e., Control Number 0694–0091) by 

amending Section 715.1(d) of the CWCR 

to add a new requirement for the 

submission of a Change in Inspection 

Status Form that applies to any 

‘‘declared’’ unscheduled discrete 

organic chemical (UDOC) plant site 

currently subject to inspection, which 

anticipates that its production of UDOCs 

during the current calendar year will be 

below the inspection threshold level 

indicated in the CWCR. These UDOC 

plant sites are required to submit a 

Change in Inspection Status Form to 

BIS, by December 15th of the current 

calendar year, in order to ensure that 

they will not be subject to inspection 

during the first 90 days of the next 

calendar year. Prior to the publication of 

this rule, there was no mechanism in 

the CWCR that allowed the U.S. 

Government to determine which UDOC 

plant sites were subject to inspection 

and to notify the OPCW concerning the 

inspection status of such plant sites, 

before the due date for submitting the 

U.S. annual declaration on past 

activities to the OPCW (i.e., within 90 

days after the beginning of the calendar 

year). Therefore, as a practical matter, 

UDOC plant sites in the United States 

did not become subject to inspection by 

the OPCW until the U.S. annual 

declaration on past activities had been 

submitted to the OPCW. Universal 

application of this approach would have 

interfered with the conduct of UDOC 

inspections in States Parties for the first 

90 days of each calendar year (i.e., the 

‘‘90-day gap’’), which could have had 

the long-term effect of undermining the 

verification regime of the CWC. 

BIS estimates that the burden hours 

for completion and submission of the 

Change in Inspection Status Form will 

be 5.1 hours per respondent. The total 

burden hours for this additional 

collection of information are estimated 

to be 30.6 hours (i.e., 5.1 burden hours 

× 6 respondents). The estimated total 

cost of this additional collection of 

information will be $1,163 (30.6 burden 

hours × $38/hour). As a result of the 

changes made by this rule, the total 

estimated annual burden hours under 

the approved collection (i.e., Control 

Number 0694–0091) will increase from 

4,471 burden hours to 4,501.6 burden 

hours. This estimate takes into 

consideration the fact that this rule 

provides certain ‘‘declared’’ UDOC plant 

sites (i.e., plant sites that anticipate 

producing one or more PSF chemicals 

during the current calendar year, in 

quantities that would require them to 

submit an Annual Declaration on Past 

Activities to BIS, but that would be 

below the CWCR inspection threshold 

level for UDOCs) with the option of 

submitting their Annual Declaration on 

Past Activities earlier than normally 

required (i.e., December 15th of the year 

in which the UDOC activities take place, 

instead of February 28th of the 

following year), in lieu of submitting a 

Change in Inspection Status Form. 

This rule also makes several 

amendments to the CWCR records 

review and recordkeeping requirements, 

none of which will affect the burden 

hours and associated costs under the 

approved collection (i.e., Control 

Number 0694–0091). This rule amends 

Section 716.4(e) of the CWCR to: (1) 

Clarify the extent to which an OPCW 

Inspection Team will have access to a 

facility’s records that are related to 

activities that took place at the facility 

during the previous calendar year (by 

requiring facilities undergoing 

inspection to provide the Inspection 

Team with access to all supporting 

materials and documentation used by 

the facility to prepare declarations and 

to otherwise comply with the CWCR, 

including records related to activities 

that have taken place at the facility 

since the beginning of the previous 

calendar year, i.e., up to and including 

the date of the inspection) and (2) 

ensure that the CWCR records review 

requirements for inspections fully 

conform with the inspection aims 

described in Part 716 of the CWCR (by 

requiring facilities to make available to 

the Inspection Team all supporting 

materials and documentation associated 

with the movement into, around, and 

from the facility of declared chemicals 

and their feedstock or any product 

chemicals formed from such chemicals 

and feedstock). Consistent with the 

changes to Section 716.4(e) of the 

CWCR, this final rule amends the 

recordkeeping provisions in Section 

721.2(a) of the CWCR to specifically 

require that each facility subject to 

inspection under Part 716 of the CWCR 

retain all records associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals. 

In order to assess the extent to which 

requiring facilities to maintain and 

make available records to verify the 

non-diversion of CWC Schedule 1 and 

Schedule 2 chemicals would affect the 

burden hours and associated costs 

under the approved collection (Control 

Number 0694–0091), BIS conducted a 

voluntary survey of nine facilities, 

requesting these facilities to estimate the 

time that would be required to prepare 

and maintain records used to determine 

non-diversion of CWC Schedule 1 and 

Schedule 2 chemicals (e.g., records on 

chemical production, processing, 

consumption, inventory, transfers, and 

other dispositions). All five of the 

facilities that responded to the 

voluntary survey indicated that they 

already use and maintain such records 

to prepare their declarations (in 

accordance with the requirements of the 

CWCR) and for other internal 

procedures. Based on the results of this 

survey, BIS determined that amending 

the CWCR to require declared chemical 

facilities to maintain and make available 

records for verifying the non-diversion 

of CWC Schedule 1 and Schedule 2 

chemicals would not impose any 

additional burden or associated costs 

under the approved collection. 

BIS also assessed the extent to which 

burden hours and associated costs 

under the approved collection (Control 

Number 0694–0091) would be affected 

by requiring facilities to provide the 

Inspection Team with access to all 

supporting materials and 

documentation used by the facility to 

prepare declarations and to otherwise 

comply with the CWCR, including 

records related to activities that have 

taken place at the facility since the 

beginning of the previous calendar year 

(i.e., up to and including the date of the 

inspection). BIS determined that there 

would be no additional burden or 

associated costs under the approved 

collection, as a result of this 

recordkeeping requirement, because 

facilities already maintained and 

provided access to such records in order 

to comply with the declaration, 

recordkeeping, and/or inspection 

requirements in the CWCR. 

Send comments regarding this burden 

estimate or any other aspect of this 

collection of information, including 

suggestions for reducing the burden, 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; and to the Regulatory 

Policy Division, Bureau of Industry and 

Security, Department of Commerce, P.O. 

Box 273, Washington, DC 20044. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 


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Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 14407 

4. The Regulatory Flexibility Act 

(RFA), as amended by the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (SBREFA), 5 U.S.C. 

601 et seq., generally requires an agency 

to prepare a regulatory flexibility 

analysis of any rule subject to the notice 

and comment rulemaking requirements 

under the Administrative Procedure Act 

(5 U.S.C. 553) or any other statute, 

unless the agency certifies that the rule 

will not have a significant economic 

impact on a substantial number of small 

entities. Under section 605(b) of the 

RFA, however, if the head of an agency 

certifies that a rule will not have a 

significant economic impact on a 

substantial number of small entities, the 

statute does not require the agency to 

prepare a regulatory flexibility analysis. 

Pursuant to section 605(b), the Chief 

Counsel for Regulations, Department of 

Commerce, certified to the Chief 

Counsel for Advocacy, Small Business 

Administration, that this final rule, if 

promulgated, would not have a 

significant economic impact on a 

substantial number of small entities for 

the reasons explained below. No 

comments were received on the 

economic impact of the rule. 

Consequently, BIS did not prepare a 

final regulatory flexibility analysis. 

Small entities include small 

businesses, small organizations and 

small governmental jurisdictions. For 

purposes of assessing the impact of this 

final rule on small entities, small entity 

is defined as: (1) A small business 

according to RFA default definitions for 

small business (based on SBA size 

standards), (2) a small governmental 

jurisdiction that is a government of a 

city, county, town, school district or 

special district with a population of less 

than 50,000, and (3) a small 

organization that is any not-for-profit 

enterprise which is independently 

owned and operated and is not 

dominant in its field. BIS has 

determined that this final rule will 

affect only the first category of small 

entities (i.e., small businesses). The 

President reported to the Congress, in 

December 2003, as required under 

Section 309 of the CWC Implementation 

Act, that 297 U.S. companies 

representing 691 facilities, plant sites, 

and trading companies were subject to 

the declaration and reporting 

requirements under the Chemical 

Weapons Convention Regulations 

(CWCR). Although BIS estimates that 

the majority of these 297 companies are 

businesses that have more than 500 

employees, BIS does not have sufficient 

information on these companies to 

definitively characterize them as large 

entities. The Small Business 

Administration (SBA) has established 

standards for what constitutes a small 

business, with respect to each of the 

Standard Industrial Classification (SIC) 

code categories for ‘‘Chemicals and 

Allied Products.’’ However, BIS is not 

able to determine which of these SIC 

code categories apply to the companies 

that are subject to the declaration, 

reporting, advance notification, 

recordkeeping or inspection 

requirements of this rule. Therefore, for 

the purpose of assessing the impact of 

this final rule, BIS assumes that the 297 

companies are small entities. 

The changes made by this final rule 

will not affect a substantial number of 

small entities. This final rule amends 

section 715.1(d) of the CWCR to add a 

new requirement for the submission of 

a Change in Inspection Status Form that 

applies to any ‘‘declared’’ UDOC plant 

site currently subject to inspection, 

which anticipates that its production of 

UDOCs during the current calendar year 

will be below the inspection threshold 

level indicated in the CWCR. These 

UDOC plant sites are required to submit 

a Change in Inspection Status Form to 

BIS, by December 15th of the current 

calendar year, in order to ensure that 

they will not be subject to inspection 

during the first 90 days of the next 

calendar year. 

BIS estimates that, of the 691 

facilities, plant sites, and trading 

companies that are affected by the 

declaration and reporting requirements 

of the CWCR per calendar year, 600 of 

these are unscheduled discrete organic 

chemical (UDOC) plant sites. Of these 

600 UDOC plant sites, BIS estimates that 

no more than 6 UDOC plant sites per 

calendar year will be required to submit 

a Change in Inspection Status Form for 

the purpose of indicating that their 

annual UDOCs production will be 

below the inspection threshold level 

indicated in the CWCR. Since BIS can 

only estimate the total number of small 

entities per calendar year that are 

affected by the declaration and reporting 

requirements of the CWCR (i.e., 297 

small entities, as indicated above), BIS 

must also estimate the number of small 

entities that own, operate, or otherwise 

control UDOC plant sites likely to be 

affected by this rule. Therefore, based 

on the estimate that only 6 UDOC plant 

sites (out of a total of 600 UDOC plant 

sites) will be required to submit a 

Change in Inspection Status Form each 

calendar year, BIS estimates, for the 

purpose of assessing the impact of this 

final rule, that no more than 6 small 

entities per calendar year will be 

affected by this new CWCR requirement. 

This estimate assumes that each UDOC 

plant site that will be affected by this 

final rule will be owned, operated, or 

otherwise controlled by a small entity. 

Since BIS estimates that no more than 

6 small entities per calendar year will be 

affected by this new CWCR requirement, 

the requirement will not affect a 

substantial number of small entities. 

Furthermore, the additional 

recordkeeping and reporting 

requirements imposed by this final rule 

will not have a significant economic 

impact on small entities. BIS estimates 

that the burden hours for completion 

and submission of the Change in 

Inspection Status Form will be 5.1 hours 

per respondent. The total annual burden 

hours for this additional collection of 

information are estimated to be 30.6 

hours (i.e., 5.1 burden hours × 6 

respondents). The estimated total 

annual cost of this additional collection 

of information for all affected entities 

will be $1,163 (30.6 burden hours × $38/ 

hour). This estimate takes into 

consideration the fact that this rule 

provides certain ‘‘declared’’ UDOC plant 

sites (i.e., plant sites that anticipate 

producing one or more PSF chemicals 

during the current calendar year, in 

quantities that would require them to 

submit an Annual Declaration on Past 

Activities to BIS, but that would be 

below the CWCR inspection threshold 

level for UDOCs) with the option of 

submitting their Annual Declaration on 

Past Activities earlier than normally 

required (i.e., December 15th of the year 

in which the UDOC activities take place, 

instead of February 28th of the 

following year), in lieu of submitting a 

Change in Inspection Status Form. 

Based on these estimates, the total cost 

of these additional recordkeeping and 

reporting requirements will represent 

only a small percentage of the revenues 

generated by the affected companies. 

Therefore, this final rule will not 

affect a substantial number of small 

entities (no more than 6 UDOC plant 

sites of an estimated 600, per annum) 

and the total economic impact on the 

affected entities (i.e., $1,163) will not be 

significant. Since the revisions that this 

rule makes to the CWCR will not impose 

a significant economic impact on a 

substantial number of small entities, BIS 

has not prepared a final regulatory 

flexibility analysis for this rule. 

List of Subjects 

15 CFR Part 710 

Chemicals, Exports, Foreign Trade, 

Imports, Treaties. 


pwalker on PROD1PC71 with RULES
14408 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

15 CFR Part 715 

Chemicals, Exports, Foreign Trade, 

Imports, Reporting and recordkeeping 

requirements. 

15 CFR Part 716 

Chemicals, Confidential business 

information, Reporting and 

recordkeeping requirements, Search 

warrant, Treaties. 

15 CFR Part 719 

Administrative practice and 

procedure, Chemicals, Exports, Imports, 

Penalties. 

15 CFR Part 721 

Reporting and recordkeeping 

requirements. 

■ Accordingly, Parts 710, 715, 716, 719, 

and 721 of the Chemical Weapons 

Convention Regulations (15 CFR parts 

710–729) are amended as follows: 

PART 710—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 710 continues to read as follows: 

Authority: 22 U.S.C. 6701 et seq.; E.O. 

13128, 64 FR 36703, 3 CFR 1999 Comp., p. 

199. 

■ 2. Supplement No. 1 to Part 710 is 

amended by revising the undesignated 

center heading ‘‘List of States Parties as 

of March 25, 2006’’ to read ‘‘List of 

States Parties as of November 1, 2006’’, 

by removing the country ‘‘Serbia and 

Montenegro’’, and by adding in 

alphabetical order the countries 

‘‘Central African Republic’’, ‘‘Comoros’’, 

‘‘Montenegro’’, and ‘‘Serbia’’. 

PART 715—[AMENDED] 

■ 3. The authority citation for 15 CFR 

part 715 continues to read as follows: 

Authority: 22 U.S.C. 6701 et seq.; E.O. 

13128, 64 FR 36703. 

■ 4. Section 715.1 is amended by adding 

a Note immediately following paragraph 

(b)(1) and by revising paragraph (d) to 

read as follows: 

§ 715.1 Annual declaration requirements 

for production by synthesis of unscheduled 

discrete organic chemicals (UDOCs). 

* * * * * 

(b) * * * 

(1) * * * 

Note to § 715.1(b)(1): If there is a change in 

the inspection status of your plant site, as 

described in paragraph (d)(2) of this section, 

you may submit an Annual Declaration on 

Past Activities, in lieu of a Change in 

Inspection Status Form, under the 

circumstances described in Note 3 to 

paragraph (d)(2). In this case, the due date for 

submitting the Annual Declaration on Past 

Activities to BIS, covering UDOC production 

at your plant site during the current calendar 

year, would be December 15th of the current 

calendar year, instead of February 28th of the 

next calendar year (also see Supplement No. 

3 to this part). If you choose to submit your 

Annual Declaration on Past Activities to BIS 

by December 15th and, subsequently, you 

determine that the production by synthesis of 

UDOCs at your plant site actually exceeded 

the UDOC inspection threshold level 

specified in paragraph (d)(1) of this section, 

you must submit an amendment to your 

Annual Declaration on Past Activities (see 

§ 715.2 of the CWCR) and indicate, on Form 

B, the reason your plant site exceeded the 

UDOC inspection threshold. 

* * * * * 

(d) Routine inspections of declared 

UDOC plant sites. (1) Inspection 

requirement. A ‘‘declared’’ UDOC plant 

site is subject to routine inspection by 

the Organization for the Prohibition of 

Chemical Weapons (OPCW) (see part 

716 of the CWCR) if it produced by 

synthesis more than 200 metric tons 

aggregate of UDOCs during the previous 

calendar year. 

(2) Change in inspection status. You 

may complete the Change in Inspection 

Status Form, to ensure that your facility 

does not remain subject to inspection 

during the first 90 days of the next 

calendar year (i.e., prior to the 

submission of the U.S. declaration to the 

OPCW), if: 

(i) Your plant site is currently subject 

to inspection, pursuant to paragraph 

(d)(1) of this section, based on your 

plant site’s production by synthesis of 

UDOCs during the previous calendar 

year; and 

(ii) Your plant site’s production by 

synthesis of UDOCs in the current 

calendar year will be below the 

inspection threshold level specified in 

paragraph (d)(1) of this section by the 

deadline indicated in Supplement No. 3 

to this part, and is anticipated to remain 

below that threshold level through the 

remainder of the current calendar year. 

Note 1 to § 715.1(d)(2): Upon receipt of the 

Change in Inspection Status Form, BIS will 

inform the Organization for the Prohibition of 

Chemical Weapons (OPCW) that your plant 

site is not subject to inspection during the 

next calendar year. 

Note 2 to § 715.1(d)(2): If, after submitting 

your Change in Inspection Status Form to 

BIS, you determine that the production by 

synthesis of UDOCs at your plant site 

actually exceeded the UDOC inspection 

threshold level specified in paragraph (d)(1) 

of this section, you must indicate this fact 

when you submit your Annual Declaration 

on Past Activities to BIS and indicate, on 

Form B, the reason your plant site exceeded 

the UDOC inspection threshold. 

Note 3 to § 715.1(d)(2): You may submit the 

Annual Declaration on Past Activities 

described in paragraph (b)(1) of this section, 

instead of the Change in Inspection Status 

Form, if you anticipate that UDOC 

production at your plant site during the 

current calendar year will be below the 

inspection threshold level specified in 

paragraph (d)(1) of this section, but you 

expect your plant site to remain subject to the 

UDOC declaration requirements in paragraph 

(a)(1) of this section. In this case, the due 

date for the Annual Declaration on Past 

Activities will be December 15th of the 

current calendar year, instead of February 

28th of the next calendar year. Note that any 

changes to information contained in the 

Annual Declaration on Past Activities must 

be addressed in accordance with the 

amendment requirements in § 715.2 of the 

CWCR. For example, if subsequent to the 

submission of your Annual Declaration on 

Past Activities to BIS on December 15th, you 

determine that the production by synthesis of 

UDOCs at your plant site actually exceeded 

the UDOC inspection threshold level 

specified in paragraph (d)(1) of this section, 

you must submit an amendment to your 

Annual Declaration on Past Activities (see 

§ 715.2 of the CWCR) and indicate, on Form 

B, the reason your plant site exceeded the 

UDOC inspection threshold. 

Note 4 to § 715.1(d)(2): Currently 

inspectable UDOC plant sites that do not 

submit either a Change in Inspection Status 

Form or Annual Declaration of Past Activities 

by December 15th of the current calendar 

year, in accordance with paragraph (d)(2) of 

this section, will remain subject to inspection 

through at least the 90-day period at the 

beginning of the next calendar year. 

■ 5. Section 715.4 is amended by 

revising the section heading and 

introductory text, by revising paragraph 

(c), and by adding a new paragraph (d) 

to read as follows: 

§ 715.4 Deadlines for submitting UDOC 

declarations, No Changes Authorization 

Forms, Change in Inspection Status Forms, 

and amendments. 

Declarations, No Changes 

Authorization Forms, Change in 

Inspection Status Forms, and 

amendments required under this part 

must be postmarked by the appropriate 

dates identified in Supplement No. 3 to 

this part 715 of the CWCR. Required 

documents under this part include: 

(c) Change in Inspection Status 

Form—May be completed and 

submitted to BIS if your plant site is 

currently subject to inspection, pursuant 

to § 715.1(d)(1) of the CWCR, and you 

anticipate that the production of UDOCs 

at your plant site during the current 

calendar year will remain below the 

inspection threshold level indicated 

therein (i.e., 200 metric tons aggregate); 

and 

(d) Amended declaration. 

■ 6. Supplement No. 3 to part 715 is 

revised to read as follows: 


pwalker on PROD1PC71 with RULES
Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 14409 

SUPPLEMENT NO. 3 TO PART 715 

[Deadlines for Submission of Declarations, No Changes Authorization Forms, Amendments for Unscheduled Discrete Organic Chemical (UDOC) 

Facilities, and Change in Inspection Status Forms] 

Declarations Applicable forms Due dates 

Annual Declaration on Past Activities (previous calendar 

year).

Declared plant site. 

Certification, UDOC, A (as 

appropriate), B (optional).

February 28 of the year following any calendar year in 

which the production by synthesis of UDOCs exceeded the applicable declaration threshold in 

§ 715.1(a)(1) of the CWCR.* 

No Changes Authorization Form (declaration required, 

but no changes to data contained in previously submitted annual declaration on past activities—previous 

calendar year).

Declared plant site ............................................................

No Changes Authorization 

Form.

February 28 of the year following any calendar year in 

which the production by synthesis of UDOCs exceeded the applicable declaration threshold in 

§ 715.1(a)(1) of the CWCR. 

Amended Declaration: ...................................................... Certification, UDOC, A (as 

appropriate), B (optional).

—Declaration information .......................................... ............................................. —15 calendar days after change in information. 

—Company information ............................................. ............................................. —30 calendar days after change in information. 

—Post-inspection letter ............................................. ............................................. —45 calendar days after receipt of letter. 

Change in Inspection Status Form (applies only if your 

plant site is currently subject to inspection, pursuant to 

§ 715.1(d)(1) of the CWCR, and you anticipate that 

the production by synthesis of UDOCs at your plant 

site during the current calendar year will remain below 

the inspection threshold level specified therein).

Change in Inspection Status Form.December 15th of any calendar year in which the production by synthesis of UDOCs is anticipated to be 

below the inspection threshold level specified in 

§ 715.1(d)(1) of the CWCR.* 

* You may submit the Annual Declaration on Past Activities (ADPA) described in § 715.1(b)(1), instead of the Change in Inspection Status 

Form, if you anticipate that UDOC production at your plant site during the current calendar year will be below the inspection threshold level specified in § 715.1(d)(1), but you expect your plant site to remain subject to the UDOC declaration requirements in § 715.1(a)(1). In this case, the 

due date for the Annual Declaration on Past Activities will be December 15th of the current calendar year, instead of February 28th of the next 

calendar year. 

PART 716—[AMENDED] 

■ 7. The authority citation for 15 CFR 

part 716 continues to read as follows: 

Authority: 22 U.S.C. 6701 et seq.; E.O. 

13128, 64 FR 36703, 3 CFR 1999 Comp., p. 

199. 

■ 8. Section 716.1 is amended by adding 

a new Note 3 to paragraph (b)(4) to read 

as follows: 

§ 716.1 General information on the 

conduct of initial and routine inspections. 

* * * * * 

(b) * * * 

(4) * * * 

Note 3 to paragraph (b)(4): Any UDOC 

plant site that is eligible, in accordance with 

§ 715.1(d)(2) of the CWCR, to submit a 

Change in Inspection Status Form or an 

Annual Declaration on Past Activities by 

December 15th of the current calendar year 

(i.e., a plant site that will be below the 

inspection threshold level indicated in 

paragraph (b)(4) of this section during the 

current calendar year), but that fails to do so, 

will remain subject to inspection through at 

least the 90-day period at the beginning of 

the next calendar year. 

* * * * * 

■ 9. Section 716.4 is amended by 

revising paragraph (e) to read as follows: 

§ 716.4 Scope and conduct of inspections. 

* * * * * 

(e) Records review. (1) The facility 

must provide the Inspection Team with 

access to all supporting materials and 

documentation used by the facility to 

prepare declarations and to otherwise 

comply with the requirements of the 

CWCR. These supporting materials and 

documentation shall include records 

related to activities that have taken 

place at the facility since the beginning 

of the previous calendar year, regardless 

of whether or not the facility has 

submitted its current year Annual 

Declaration on Past Activities to BIS at 

the time of the inspection. The facility 

shall also make available for inspection 

all records associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals and 

feedstock. All supporting materials and 

documentation subject to the 

requirements of this paragraph (e) must 

be retained by the facility in accordance 

with the requirements of § 721.2 of the 

CWCR. The facility also must permit 

access to and copying of these records, 

upon request by BIS or any other agency 

of competent jurisdiction, in accordance 

with the requirements of § 721.1 of the 

CWCR. 

(2) The facility must provide access to 

these supporting materials and 

documentation in appropriate formats 

(e.g., paper copies, electronic remote 

access by computer, microfilm, or 

microfiche), through the U.S. 

Government Host Team to Inspection 

Teams, during the inspection period or 

as otherwise agreed upon by the 

Inspection Team and Host Team Leader. 

(3) The facility must provide the 

Inspection Team with appropriate 

accommodations in which to review 

these supporting materials and 

documentation. 

(4) If a facility does not have access 

to supporting materials and 

documentation for activities that took 

place under previous ownership, 

because such records were not 

transferred to the current owner of the 

facility by the previous owner (e.g., as 

part of the contract involving the sale of 

the facility), the previous owner must 

make such records available to the Host 

Team for provision to the Inspection 

Team in accordance with section 305 of 

the Act. However, the current owner of 

a facility, upon receiving notification of 

an inspection (see § 716.5 of the CWCR), 

is responsible for informing BIS if the 

previous owner did not transfer records 

for activities that took place under the 

previous ownership—this will allow 

BIS to contact the previous owner of the 

facility, to arrange for access to such 

records, if BIS deems them relevant to 

the inspection activities. 

PART 719—[AMENDED] 

■ 10. The authority citation for 15 CFR 

part 719 continues to read as follows: 

Authority: 22 U.S.C. 6701 et seq.; 50 U.S.C. 

1601 et seq.; 50 U.S.C. 1701 et seq.; E.O. 

12938, 59 FR 59099, 3 CFR 1994, Comp., p. 

950; E.O. 13128, 64 FR 36703, 3 CFR 1999 

Comp., p. 199. 


pwalker on PROD1PC71 with RULES
14410 Federal Register / Vol. 72, No. 59 / Wednesday, March 28, 2007 / Rules and Regulations 

1The Commission’s 1995 Federal Register notice 

explained that the Rule ‘‘does not require 

manufacturers to * * * explicitly state that their 

engine oil is substantially equivalent to new oil’’

and does not mandate any qualifiers or specific 

disclosures. (60 FR 55418–55419). Until NIST 

§ 719.3 [Amended] 

■ 11. Section 719.3 is amended: 

■ a. By revising the dollar amount 

‘‘$11,000’’ to read ‘‘$50,000’’ in 

paragraph (b) and in the footnote to 

paragraph (b); and 

■ b. By revising the parenthetical ‘‘(15 

CFR 6.4(a)(3))’’ at the end of the footnote 

to paragraph (b) to read ‘‘(15 CFR 

6.4(a)(5))’’. 

PART 721—[AMENDED] 

■ 12. The authority citation for 15 CFR 

part 721 continues to read as follows: 

Authority: 22 U.S.C. 6701 et seq.; E.O. 

13128, 64 FR 36703, 3 CFR 1999 Comp., p. 

199. 

■ 13. Section 721.2 is amended by 

revising paragraph (a) to read as follows: 

§ 721.2 Recordkeeping. 

(a) Requirements. Each person, 

facility, plant site or trading company 

required to submit a declaration, report, 

or advance notification under parts 712 

through 715 of the CWCR must retain all 

supporting materials and 

documentation used by a unit, plant, 

facility, plant site or trading company to 

prepare such declaration, report, or 

advance notification to determine 

production, processing, consumption, 

export or import of chemicals. Each 

facility subject to inspection under Part 

716 of the CWCR must retain all 

supporting materials and 

documentation associated with the 

movement into, around, and from the 

facility of declared chemicals and their 

feedstock or any product chemicals 

formed from such chemicals and 

feedstock. In the event that a declared 

facility is sold, the previous owner of 

the facility must retain all such 

supporting materials and 

documentation that were not transferred 

to the current owner of the facility (e.g., 

as part of the contract involving the sale 

of the facility)—otherwise, the current 

owner of the facility is responsible for 

retaining such supporting materials and 

documentation. Whenever the previous 

owner of a declared facility retains such 

supporting materials and 

documentation, the owner must inform 

BIS of any subsequent change in address 

or other contact information, so that BIS 

will be able to contact the previous 

owner of the facility, to arrange for 

access to such records, if BIS deems 

them relevant to inspection activities 

involving the facility (see § 716.4 of the 

CWCR). 

* * * * * 

Dated: March 21, 2007. 

Christopher A. Padilla, 

Assistant Secretary for Export 

Administration. 

[FR Doc. E7–5594 Filed 3–27–07; 8:45 am] 

BILLING CODE 3510–33–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 311 

Test Procedures and Labeling 

Standards for Recycled Oil 

AGENCY: Federal Trade Commission. 

ACTION: Final rule. 

SUMMARY: The Federal Trade 

Commission (‘‘FTC’’ or ‘‘Commission’’) 

has completed its regulatory review of 

the Test Procedures and Labeling 

Standards for Recycled Oil (‘‘Recycled 

Oil Rule’’ or ‘‘Rule’’), as part of the 

Commission’s systematic review of all 

current Commission regulations and 

guides. The Commission, with the 

exception of incorporating by reference 

American Petroleum Institute 

Publication 1509, Fifteenth Edition, and 

updating incorporation by reference 

approval language, has determined to 

retain the Recycled Oil Rule in its 

current form. 

DATES: This action is effective as of 

March 28, 2007. The incorporation by 

reference of the American Petroleum 

Institute Publication 1509, Fifteenth 

Edition, listed in this Rule, is approved 

by the Director of the Federal Register 

as of March 28, 2007. 

ADDRESSES: Requests for copies of this 

notice should be sent to the Consumer 

Response Center, Room 130, Federal 

Trade Commission, 600 Pennsylvania 

Ave., NW., Washington, DC 20580. The 

notice also is available on the Internet 

at the Commission’s Web site, http:// 

www.ftc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Janice Podoll Frankle, (202) 326–3022, 

Attorney, Division of Enforcement, 

Bureau of Consumer Protection, Federal 

Trade Commission, Washington, DC 

20580. E-mail: jfrankle@ftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

The Commission has determined, as 

part of its oversight responsibilities, to 

review its rules and guides periodically 

to seek information about their costs 

and benefits, as well as their regulatory 

and economic impact. The information 

obtained assists the Commission in 

identifying rules and guides that 

warrant modification or rescission. 

II. Background 

Section 383 of the Energy Policy and 

Conservation Act of 1975 (‘‘EPCA’’), 42 

U.S.C. 6363, mandated that the FTC 

promulgate a rule prescribing testing 

procedures and labeling standards for 

recycled oil. This section of EPCA is 

intended to encourage the recycling of 

used oil, promote the use of recycled 

oil, reduce consumption of new oil by 

promoting increased utilization of 

recycled oil, and reduce environmental 

hazards and wasteful practices 

associated with the disposal of used oil. 

42 U.S.C. 6363(a). 

EPCA also mandated that the National 

Institute of Standards and Technology 

(‘‘NIST’’) develop (and report to the 

FTC) test procedures to determine 

whether processed used oil is 

substantially equivalent to new oil for a 

particular end use. 42 U.S.C. 6363(c). 

Within 90 days after receiving NIST’s 

test procedures, EPCA required that the 

FTC prescribe, by rule, substantial 

equivalency test procedures, as well as 

labeling standards for recycled oil. 42 

U.S.C. 6363(d)(1)(A). EPCA also 

required that the Commission’s rule 

permit any container of recycled oil to 

bear a label indicating any particular 

end use (e.g., engine lubricating oil), for 

which a determination of ‘‘substantial 

equivalency’’ with new oil has been 

made in accordance with the NIST test 

procedures. 42 U.S.C. 6363(d)(1)(B). 

On July 27, 1995, NIST reported to the 

FTC test procedures for determining the 

substantial equivalence of processed 

used engine oil with new engine oil. 

The NIST test procedures and 

performance standards are the same as 

those adopted by the American 

Petroleum Institute (‘‘API’’) for engine 

lubricating oils generally, regardless of 

origin. The Rule, 16 CFR part 311, 

which was issued on October 31, 1995 

(60 FR 55421), implements EPCA’s 

requirements by permitting a 

manufacturer or other seller to 

‘‘represent, * * * on a container of 

processed used oil, that such oil is 

substantially equivalent to new oil for 

use as engine oil only if the 

manufacturer has determined that the 

oil is substantially equivalent to new oil 

for use as engine oil’’ in accordance 

with the test procedures entitled 

‘‘Engine Oil Licensing and Certification 

System,’’ American Petroleum Institute 

Publication 1509, Thirteenth Edition, 

January 1995.1


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