52514 Federal Register / Vol. 62, No. 195 / Wednesday, October 8, 1997 / Proposed Rules

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Ch. VII

[Docket No. 970925233–7233–01]

Request for Comments on Effects of

Foreign Policy-Based Export Controls

AGENCY: Bureau of Export

Administration, Commerce.

ACTION: Request for comments on

foreign policy-based export controls.

SUMMARY: The Bureau of Export

Administration (BXA) 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modified, rescinded or extended.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, BXA is

seeking comments on how existing

foreign policy-based export controls

have affected exporters and the general

public.

Under the provisions of section 6 of

the Export Administration Act of 1979,

as amended (EAA), foreign policy

controls expire one year after imposition

unless they are extended. The EAA

requires a report to Congress whenever

foreign policy-based export controls are

extended. Although the EAA expired on

August 20, 1994, the President, invoking

the International Emergency Powers Act

(IEEPA), continued in effect the export

control system in place under the

provisions of the Act and the Export

Administration Regulations, to the

extent permitted by law (Executive

Order 12924 of August 19, 1994 and

Notices of August 15, 1995, August 14,

1996 and August 13, 1997). The

Department of Commerce, insofar as

appropriate, is following the provisions

of section 6 in reviewing foreign policybased export controls and requesting

comments on such controls. Foreign

Policy controls need to be extended in

January 1998.

DATES: Comments must be received by

November 7, 1997, to assure full

consideration in the formulation of

export control policies as they relate to

foreign policy-based controls.

ADDRESSES: Written comments (three

copies) should be sent to Sharron Cook,

Regulatory Policy Division (Room 2096),

Office of Exporter Services, Bureau of

Export Administration, Department of

Commerce, P.O. Box 273, Washington,

DC 20044. If sending comments by

courier, send to: Department of

Commerce, Bureau of Export

Administration, Attn: Sharron Cook,

14th Street and Pennsyvania Avenue,

Room 2705, N.W., Washington, D.C.

20230

FOR FURTHER INFORMATION CONTACT:

Anita McNamee, Foreign Policy

Division, Office of Strategic Trade and

Foreign Policy Controls, Bureau of

Export Administration, Telephone:

(202) 482–4252. Copies of the current

Annual Foreign Policy Report to the

Congress can also be requested.

SUPPLEMENTARY INFORMATION: The

current foreign policy controls

maintained by the Bureau of Export

Administration (BXA) are set forth in

the Export Administration Regulations

(EAR), parts 742(CCL Based Controls),

744 (End-user and End-use Based

Controls), and 746 (Embargoes and

Special Country Controls). These

controls apply to: High performance

computers (§ 742.12); significant items

(SI): Commercial communications

satellites and Hot section technology for

the development, production or

overhaul of commercial aircraft engines,

components, and systems (§ 742.14);

encryption items (EI) (§ 742.15); crime

control and detection commodities

(§ 742.7); specially designed implements

of torture (§ 742.11); 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);

activities of U.S. persons in transactions

related to missile technology or

chemical or biological weapons

proliferation in named countries

(§ 744.6); embargoed countries (part

746); countries designated as supporters

of acts of international terrorism

(§§ 742.8, 742.9, 742.10, 746.2, 746.3,

746.5, and 746.7); and, Libya (§§ 744.8,

and 746.4). Attention is also given in

this context to the controls on nuclearrelated commodities, software, and

technology (§ 742.3 and § 744.2) which

are, in part, implemented under section

309(c) of the Nuclear Non Proliferation

Act.

Effective January 21, 1997, the

Secretary of Commerce, on the

recommendation of the Secretary of

State, extended for one year all foreign

policy 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

controls for another year. Among the

criteria the Departments of Commerce

and State consider in determining

whether to continue or revise U.S.

foreign policy 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 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. The 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 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, or the economic well-being

of individual United States companies

and their employees and communities

does not exceed the benefit to United

States foreign policy objectives; and

6. The ability of the United States to

enforce the controls effectively.

BXA 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.

BXA is also interested in comments

relating to the effects of foreign policy

controls on exports of replacement and

other parts.

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 BXA in reviewing the controls and

developing the report to Congress.

BXA will consider requests for

confidential treatment. The information

for which confidential treatment is

requested should be submitted to BXA

separate from any non-confidential

information submitted. The top of each

page should be marked with the term

‘‘Confidential Information.’’ BXA will

either accept the submission in

confidence, or if the submission fails to

meet the standards for confidential

treatment, will return it. A nonconfidential summary must accompany

such submissions of confidential

information. The summary will be made

available for public inspection.
Federal Register / Vol. 62, No. 195 / Wednesday, October 8, 1997 / Proposed Rules 52515

Information accepted by BXA as

confidential will be protected from

public disclosure to the extent

permitted by law. Communications

between agencies of the United States

Government or with foreign

governments will not be made available

for public inspection.

All other 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, BXA

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 public record concerning these

comments will be maintained in the

Freedom of Information Records

Inspection Facility, Room 4525, U.S.

Department of Commerce, 14th Street

and Pennsylvania Avenue, NW,

Washington, D.C. 20230. Records in this

facility, including written public

comments and memoranda

summarizing the substance of oral

communications, may be inspected and

copied in accordance with regulations

published in part 4 of title 15 of the

Code of Federal Regulations.

Information about inspection and

copying of records at this facility may be

obtained from Margaret Cornejo, BXA

Freedom of Information Officer, at the

above address or by calling (202) 482–

2593.

Dated: October 3, 1997.

William V. Skidmore,

Acting Assistant Secretary for Export

Administration.

[FR Doc. 97–26695 Filed 10–7–97; 8:45 am]

BILLING CODE 3510–33–P

DEPARTMENT OF COMMERCE

Bureau of Economic Analysis

15 CFR Part 806

[Docket No. 970918231–7231–01]

RIN 0691–AA08

Direct Investment Surveys: BE–12,

Benchmark Survey of Foreign Direct

Investment in the United States—1997

AGENCY: Bureau of Economic Analysis,

Commerce.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document sets forth

proposed rules to revise 15 CFR 806.17

to present the reporting requirements for

the BE–12, Benchmark Survey of

Foreign Direct Investment in the United

States—1997 and to delete the rules

now in 15 CFR 806.17, which were for

the last benchmark survey covering

1992.

The BE–12 benchmark survey is

conducted by the Bureau of Economic

Analysis (BEA), U.S. Department of

Commerce, under Section 3103(b) of the

International Investment and Trade in

Services Survey Act, which requires

that a benchmark survey of foreign

direct investment in the United States

be conducted every five years. The last

benchmark survey was conducted for

1992, and the proposed survey will be

conducted for 1997. The benchmark

survey will obtain universe data on the

financial and operating characteristics

of, and on positions and transactions

between, U.S. affiliates and their foreign

parents. The data from the quinquennial

survey will provide benchmarks for

deriving current universe estimates of

foreign direct investment from sample

data collected in other BEA surveys in

nonbenchmark years. The data are

needed to measure the economic

significance of foreign direct investment

in the United States, measure changes in

such investment, assess its impact on

the U.S. economy, and based upon this

assessment, make informed policy

decisions regarding foreign direct

investment in the United States. They

are also required for compiling the

balance of payments, international

investment position, and national

income and product accounts of the

United States.

Key changes proposed by BEA from

the previous benchmark survey include

reducing respondent burden,

particularly for small companies, by:

Increasing the exemption level for

reporting on the survey to $3 million

(measured by the company’s total assets,

sales, or net income) from $1 million in

the 1992 survey; increasing the

exemption level at which reporting on

the long form version of the survey is

required from $50 million to $100

million; and requiring reporting

companies with assets, sales, or net

income between $3 million and $30

million to report only selected data

items on the short form version. In

addition, BEA proposes to base industry

coding of reporting companies on the

new North American Industry

Classification System (NAICS) in place

of the current system which is based on

the U.S. Standard Industrial

Classification system; to collect new

information on affiliated services

transactions by type of service; and to

modify the detail collected on the

composition of external financing of the

reporting enterprise, on exports and

imports of goods by product, and on the

operations of foreign-owned businesses

in individual States.

DATES: Comments on the proposed rules

will receive consideration if submitted

in writing on or before November 24,

1997.

ADDRESSES: Comments may be mailed to

the Office of the Chief, International

Investment Division (BE–50), Bureau of

Economic Analysis, U.S. Department of

Commerce, Washington, DC 20230, or

hand delivered to Room M–100, 1441 L

Street NW, Washington, DC 20005.

Comments received will be available for

public inspection in Room 7005, 1441 L

Street NW, between 8:30 a.m. and 4:30

p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: R.

David Belli, Chief, International

Investment Division (BE–50), Bureau of

Economic Analysis, U.S. Department of

Commerce, Washington, DC 20230;

phone (202) 606–9800.

SUPPLEMENTARY INFORMATION: These

proposed rules set forth the reporting

requirements for the BE–12, Benchmark

Survey of Foreign Direct Investment in

the United States—1997. This survey is

to be conducted by the Bureau of

Economic Analysis, U.S. Department of

Commerce, under the International

Investment and Trade in Services

Survey Act (Pub. L. 94–472, 90 Stat.

2059, 22 U.S.C. 3101–3108, as amended

by Pub. L. 98–573 and Pub. L. 101–533),

hereinafter, ‘‘the Act.’’ Section 3103(b)

of the Act, as amended, requires that

‘‘With respect to foreign direct

investment in the United States, the

President shall conduct a benchmark

survey covering year 1980, a benchmark

survey covering year 1987, and

benchmark surveys covering every fifth

year thereafter . . . In conducting

surveys pursuant to this subsection, the

President shall, among other things and

to the extent he determines necessary

and feasible—

(1) Identify the location, nature, and

magnitude of, and changes in the total

investment by any parent in each of its

affiliates and the financial transactions

between any parent and each of its

affiliates;

(2) Obtain (A) information on the

balance sheet of parents and affiliates

and related financial data, (B) income

statements, including the gross sales by

primary line of business (with as much

product line detail as necessary and

feasible) of parents and affiliates in each

country in which they have significant

operations, and (C) related information

regarding trade, including trade in both

goods and services, between a parent

and each of its affiliates and between

each parent or affiliate and any other

person;