[Federal Register Volume 62, Number 195 (Wednesday, October 8, 1997)]
[Proposed Rules]
[Pages 52514-52515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26695]



[[Page 52514]]

=======================================================================
-----------------------------------------------------------------------

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Regulations to determine whether they should be modified, rescinded or 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 policy-based 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 (Sec. 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 (Sec. 742.14); encryption items 
(EI) (Sec. 742.15); crime control and detection commodities 
(Sec. 742.7); specially designed implements of torture 
(Sec. 742.11); regional stability commodities and equipment 
(Sec. 742.6); equipment and related technical data used in the 
design, development, production, or use of missiles (Sec. 742.5 and 
Sec. 744.3); chemical precursors and biological agents, associated 
equipment, technical data, and software related to the production 
of chemical and biological agents (Sec. 742.2 and Sec. 744.4); 
activities of U.S. persons in transactions related to missile 
technology or chemical or biological weapons proliferation in named 
countries (Sec. 744.6); embargoed countries (part 746); countries 
designated as supporters of acts of international terrorism 
(Secs. 742.8, 742.9, 742.10, 746.2, 746.3, 746.5, and 746.7); and, 
Libya (Secs. 744.8, and 746.4). Attention is also given in this 
context to the controls on nuclear-related commodities, software, 
and technology (Sec. 742.3 and Sec. 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 non-confidential summary must 
accompany such submissions of confidential information. The summary 
will be made available for public inspection.

[[Page 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