41366 Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Proposed Rules 

1 In the United States, facilities that have data 

declaration obligations under the Chemical 

Weapons Convention Regulations (CWCR) (15 CFR 

Parts 710–722), because they engage in certain 

activities involving scheduled chemicals or 

unscheduled discrete organic chemicals, must 

submit the appropriate declaration forms to the 

Bureau of Industry and Security (BIS). Such 

facilities are treated as ‘‘declared’’ facilities under 

the CWCR and their facility-specific information is 

transmitted by the U.S. to the OPCW. Entities that 

are ‘‘undeclared’’ facilities or trading companies, 

whose obligations under the CWCR are limited to 

certain export and/or import activities, must submit 

the appropriate report forms to BIS—their facilityspecific information is not transmitted by the U.S. 

to the OPCW (i.e., the information is aggregated 

prior to transmission to the OPCW). ‘‘Declared’’ 

facilities also must submit export/import 

information to BIS if such activities are subject to 

the declaration/reporting requirements of the 

CWCR. 

2Each State Party to the CWC, including the 

United States, has agreed to allow certain 

inspections of ‘‘declared’’ facilities by inspection 

teams employed by the OPCW to ensure that the 

activities of such facilities comply with CWC 

requirements. BIS is responsible for leading, hosting 

and escorting inspections of all facilities subject to 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 713 and 716 

RIN 0694–XA27 

[Docket No. 100817370–0464–01] 

Impact of Reducing the Mixture 

Concentration Threshold for 

Commercial Schedule 2A Chemical 

Activities Under the Chemical 

Weapons Convention Regulations 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Notice of inquiry. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is seeking public 

comments on the impact of amending 

the Chemical Weapons Convention 

Regulations (CWCR) to reduce the 

concentration level below which the 

CWCR exempt certain mixtures 

containing a Schedule 2A chemical 

from the declaration requirements that 

apply to Schedule 2A chemical 

production, processing, and 

consumption under the Chemical 

Weapons Convention (CWC). To make 

these declaration requirements 

consistent with the international 

agreement adopted by the Organization 

for the Prohibition of Chemical 

Weapons (OPCW), BIS is considering 

amending the CWCR to replace the 

current low concentration exemption (a 

concentration of ‘‘less than 30%’’ by 

volume or weight) with a two-tiered low 

concentration exemption that is based, 

in part, on whether the total amount of 

a Schedule 2A chemical produced, 

processed, or consumed at one or more 

plants on a plant site during a calendar 

year is less than the applicable 

verification threshold in the CWCR. 

Under this two-tiered approach, the 

declaration and reporting requirements 

in the CWCR would not apply to a 

chemical mixture containing a Schedule 

2A chemical if: The concentration of the 

Schedule 2A chemical in the mixture is 

‘‘1% or less,’’ or the concentration of the 

Schedule 2A chemical in the mixture is 

‘‘more than 1%, but less than or equal 

to 10%,’’ and the annual amount of the 

Schedule 2A chemical produced, 

processed, or consumed is less than the 

relevant verification threshold. 

Legislative amendment of the Chemical 

Weapons Convention Implementation 

Act (CWCIA) is required in order to 

implement this proposed amendment to 

the CWCR. 

In addition, at U.S. national 

discretion, BIS is considering amending 

the CWCR to require declarations/ 

reports for exports and imports of any 

mixtures that contain ‘‘more than 10%’’ 

of a Schedule 2A chemical by volume 

or weight (whichever method yields the 

lesser percentage), if the total quantity 

of the Schedule 2A chemical exported 

or imported during a calendar year 

exceeds the applicable CWCR 

declaration threshold. 

DATES: Comments are due August 12, 

2011. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• E-mail: wfisher@bis.doc.gov. 

Include the phrase ‘‘Schedule 2A Notice 

of Inquiry’’ in the subject line of the 

message. 

• Fax: (202) 482–3355 (Attn: Willard 

Fisher). 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 Street & Pennsylvania Avenue, 

NW., Room 2705, Washington, DC 

20230. 

Send comments regarding the collection 

of information identified in this notice 

of inquiry, including suggestions for 

reducing the burden, to Jasmeet Seehra, 

Office of Management and Budget 

(OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov, or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th Street & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the notice 

of inquiry—all comments on the latter 

should be submitted by one of the three 

methods outlined above. 

FOR FURTHER INFORMATION CONTACT: For 

questions on the Chemical Weapons 

Convention requirements for Schedule 

2A and 2A* chemicals, contact Douglas 

Brown, Treaty Compliance Division, 

Office of Nonproliferation and Treaty 

Compliance, Bureau of Industry and 

Security, U.S. Department of Commerce, 

Phone: (202) 482–2163. For questions 

on the submission of comments, contact 

Willard Fisher, Regulatory Policy 

Division, Office of Exporter Services, 

Bureau of Industry and Security, U.S. 

Department of Commerce, Phone: (202) 

482–2440. 

SUPPLEMENTARY INFORMATION: 

Background 

The Convention on the Prohibition of 

the Development, Production, 

Stockpiling, and Use of Chemical 

Weapons and Their Destruction, 

commonly called the Chemical 

Weapons Convention (CWC or the 

Convention), is an international arms 

control and nonproliferation treaty that 

established the Organization for the 

Prohibition of Chemical Weapons 

(OPCW) to implement the verification 

provisions of the treaty. A major 

objective of the CWC is to verify that 

lawful activities of chemical producers 

and users are not converted to unlawful 

activities related to chemical weapons. 

Consistent with this objective, the CWC 

imposes a number of obligations on 

countries that have ratified the CWC 

(States Parties). In this regard, the CWC 

establishes a comprehensive verification 

scheme and requires the declaration and 

inspection of facilities that produce, 

process, or consume certain 

‘‘scheduled’’ chemicals (i.e., Schedule 1, 

Schedule 2, and Schedule 3 chemicals) 

and unscheduled discrete organic 

chemicals (UDOCs), many of which 

have significant commercial 

applications. The CWC also requires 

States Parties to report exports and 

imports and to impose export and 

import restrictions on certain chemicals. 

These requirements apply to all entities 

under the jurisdiction and control of 

States Parties, including commercial 

entities and individuals. 

To ensure the implementation of this 

verification scheme on a national level, 

the CWC requires each State Party to 

enact legislation that prohibits the 

production, storage and use of chemical 

weapons, and to establish a National 

Authority to serve as a liaison with the 

OPCW and other States Parties. The 

CWC also requires that each State Party 

implement a comprehensive data 

declaration 1 and inspection regime 2 to 

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Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Proposed Rules 41367 

the provisions of the CWCR. (See 15 CFR part 716 

for the types of activities that are subject to 

inspection and specific inspection thresholds.) 3The CWC ‘‘Annex on Chemicals’’ groups 

scheduled chemicals (i.e, Schedules 1, 2, and 3) 

according to the level of risk to the ‘‘object and 

purpose’’ of the CWC, with Schedule 1 chemicals 

representing the highest level of risk and Schedule 

3 chemicals, the lowest. 

4Schedule 2 in the CWC ‘‘Annex on Chemicals’’ 

contains the subcategories 2A and 2B. Schedule 2A 

chemicals consist of those Schedule 2 chemicals 

that are identified as ‘‘toxic’’ chemicals. Schedule 

2B chemicals consist of those Schedule 2 chemicals 

that are identified as ‘‘precursor’’ chemicals. One 

chemical within the subcategory Schedule 2A (i.e., 

‘‘BZ: 3-Quinuclidinyl benzilate’’) is designated as a 

Schedule 2A* chemical, because it has a lower 

declaration threshold and a lower inspection/ 

verification threshold than the other Schedule 2A 

chemicals. 

provide transparency and to verify that 

both the public and private sectors of 

States Parties are not engaged in 

activities prohibited under the CWC. 

This notice of inquiry addresses the 

CWC requirements that apply to certain 

mixtures that contain a Schedule 2 

chemical. Part VII, paragraph 5 of the 

Verification Annex to the CWC 

(‘‘Schedule 2 Regime’’) provides that 

declarations ‘‘are generally not required 

for mixtures containing a low 

concentration of a Schedule 2 chemical’’ 

and that the Conference of the States 

Parties to the Convention will consider 

and approve guidelines to establish the 

appropriate low concentration level. 

Schedule 2 chemicals, as set forth in the 

Convention’s ‘‘Annex on Chemicals,’’ 

include those chemicals and precursors 

identified in the Convention as posing 

a ‘‘significant’’ risk to the object and 

purpose of the Convention.3

Consistent with the requirements of 

the CWC, the Chemical Weapons 

Implementation Act of 1998 (CWCIA) 

(22 U.S.C. 6701 et seq.), which was 

enacted on October 21, 1998, authorizes 

the United States to require the U.S. 

chemical industry and other private 

entities to submit declarations, 

notifications and other reports and to 

provide access for on-site inspections 

conducted by inspectors sent by the 

OPCW. Section 402(a)(1) of the CWCIA 

established 10% as the concentration 

limit of any Schedule 2 chemical (i.e. 

Schedule 2A, 2A*, or 2B chemicals) 4 in 

a mixture, below which the CWC’s 

declaration, reporting and inspection 

requirements do not apply. 

The Bureau of Industry and Security 

(BIS) administers the Chemical 

Weapons Convention Regulations 

(CWCR) (15 CFR Parts 710–722), which 

implement provisions of the CWCIA. 

Currently, the CWCR do not require that 

the quantity of a Schedule 2A chemical 

contained in a mixture be counted for 

declaration or reporting purposes if the 

concentration of the Schedule 2A 

chemical in the mixture is ‘‘less than 

30%’’ by volume or weight, whichever 

yields the lesser percentage. This low 

concentration exemption was 

implemented by BIS in the CWCR in 

1999, prior to the 2009 approval by the 

Conference of the States Parties to the 

Convention of guidelines, as described 

below, that established the low 

concentration exemption for mixtures 

containing Schedule 2 chemicals, in 

accordance with the Schedule 2 Regime. 

The CWCR currently apply a 30% low 

concentration threshold to the 

application of the Schedule 2A 

chemical declaration, reporting, and 

inspection requirements, rather than the 

10% low concentration threshold 

established by the CWCIA, in order to 

ensure that the chemical mixture 

requirements in the CWCR are 

compatible with the export 

requirements in the Export 

Administration Regulations (EAR) (15 

CFR parts 730–774) that apply to certain 

scheduled chemical precursors 

(including mixtures that contain these 

precursors). Although the Schedule 2A 

chemical low concentration threshold in 

the CWCR is higher than the low 

concentration threshold established by 

CWCIA, it is consistent with the CWCIA 

because it still exempts mixtures that 

contain Schedule 2A chemicals at a 

concentration level below 10% from the 

declaration, reporting, and inspection 

requirements of the CWC. However, 

legislative amendment of the CWCIA 

will be required prior to any change in 

the CWCR low concentration threshold 

that would reduce this threshold below 

the 10% low concentration threshold 

established by the CWCIA. 

The declaration, reporting, and 

inspection/verification requirements in 

the CWC that affect commercial 

activities involving Schedule 2 

chemicals are described in parts 713 

and 716 of the CWCR. These CWCR 

provisions: 

(1) Require annual declarations by 

certain facilities (i.e., ‘‘declared’’ 

Schedule 2 ‘‘plant sites’’) that were 

engaged in the production, processing, 

or consumption of a Schedule 2A 

chemical during any of the three 

previous calendar years, or which 

anticipate engaging in such activities in 

the next calendar year, in excess of the 

following quantities (declaration 

thresholds): 

(a) 100 kilograms of chemical Amiton: 

0,0 Diethyl S-[2-(diethylamino) ethyl] 

phosphorothiolate and corresponding 

alkylated or protonated salts; 

(b) 100 kilograms of chemical PFIB: 

1,1,3,3,3-Pentafluoro-2(trifluoromethyl)- 

1-propene; or 

(c) 1 kilogram of chemical BZ: 3- 

Quinuclidinyl benzilate (15 CFR 

§ 713.2(a)(1)); 

(2) Require that the calculation of the 

quantity of any Schedule 2 chemical 

that is produced, processed or 

consumed must include the quantities 

produced, processed or consumed in 

mixtures, if the concentration of the 

Schedule 2 chemical in the mixture is 

equal to or greater than 30% by volume 

or by weight, whichever yields the 

lesser percentage (15 CFR 713.2(a)(3)); 

(3) Define Schedule 2 chemical 

production to include all steps in the 

production of a Schedule 2 chemical in 

any units within the same plant through 

chemical reaction, including any 

associated processes (e.g., purification, 

separation, extraction, distillation, or 

refining) in which the chemical is not 

converted into another chemical (15 

CFR 713.2(a)(2)); 

(4) Provide that all ‘‘declared 

Schedule 2’’ plant sites are subject to 

initial and routine inspection by the 

OPCW (15 CFR 713.2(e)); 

(5) Require plant sites, trading 

companies, and any other person 

subject to the CWCR to submit annual 

declarations/reports of all exports and 

imports of any Schedule 2 chemical to, 

or from, other destinations if the total 

quantity exported or imported exceeds 

the applicable declaration threshold (15 

CFR 713.3); and 

(6) Define inspection/verification 

thresholds for the production, 

processing, or consumption, during the 

calendar year of a Schedule 2A 

chemical as being in excess of the 

following quantities: 

(a) 1 metric ton (MT) of chemical 

Amiton: 0,0 Diethyl S [2 (diethylamino) 

ethyl] phosphorothiolate and 

corresponding alkylated or protonated 

salts; 

(b) 1 MT of chemical PFIB: 1,1,3,3,3- 

Pentafluoro-2(trifluoromethyl)-1- 

propene; or 

(c) 10 kg of chemical BZ: 3- 

Quinuclidinyl benzilate (15 CFR 

716.1(b)(2)). 

During the OPCW’s 14th Conference 

of the States Parties, which was held in 

The Hague, the Netherlands, on 

December 2, 2009, the States Parties to 

the CWC agreed that the CWC’s 

declaration and reporting requirements 

would not apply to a chemical mixture 

containing a Schedule 2A chemical if: 

(1) The concentration of the Schedule 

2A chemical in the mixture is ‘‘1% or 

less’’ or (2) the concentration of the 

Schedule 2A chemical in the mixture is 

‘‘more than 1%, but less than or equal 

to 10%,’’ and the annual amount of the 

Schedule 2A chemical produced, 

processed, or consumed is less than the 

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41368 Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Proposed Rules 

5 ‘‘Declared’’ facilities that engaged in certain 

export and/or import activities involving Schedule 

2 chemicals must submit such export/import 

information as part of their declarations, if the 

exported/imported chemicals are the same as those 

chemicals that were declared as produced, 

processed, and/or consumed by such facilities. 

‘‘Declared’’ facilities that engaged in export and/or 

import activities involving Schedule 2 chemicals 

that were different from those produced, processed, 

and/or consumed by such facilities above the 

applicable declaration threshold must report such 

activities to BIS either with their respective 

declarations or in a separate report. ‘‘Undeclared’’ 

facilities or trading companies that engaged in 

export and/or import activities involving Schedule 

2 chemicals also must report such information to 

BIS. (See Section 713.3(a) of the CWCR and the 

Notes thereto.) 

relevant verification threshold. As 

previously indicated, a low 

concentration exemption of ‘‘less than 

30%’’ currently applies to Schedule 2 

chemicals in the United States under 

the CWCR. The OPCW agreement is 

documented in OPCW Decision C–14/ 

DEC.4 and can be obtained from the 

OPCW Web site (http://www.opcw.org). 

Amendment to the CWCIA and CWCR 

is necessary to implement these new 

OPCW guidelines. 

In addition, during the OPCW’s 5th 

Conference of the States Parties, which 

was held in The Hague, the 

Netherlands, on May 19, 2000, the 

States Parties to the CWC agreed that the 

CWC’s declaration requirements would 

not apply to a chemical mixture 

containing a Schedule 2B chemical or a 

Schedule 3 chemical if the 

concentration of the Schedule 2B 

chemical or the Schedule 3 chemical in 

the mixture is ‘‘30% or less.’’ The 

impact of this CWC agreement on the 

declaration requirements for Schedule 

2B chemicals is expected to be modest 

because the amount of a Schedule 2B 

chemical in a mixture is currently 

exempted from the declaration 

requirements in the CWCR if the 

concentration of the Schedule 2B 

chemical in the mixture is ‘‘less than 

30%.’’ BIS will address the impact of 

these new CWC guidelines on Schedule 

3 chemical declaration requirements in 

a separate rulemaking. The CWC 

agreement is documented in OPCW 

Decision C–V/DEC.19 and can be 

obtained from the OPCW Web site 

(http://www.opcw.org). 

Discussion and Request for Comments 

Section 713.2(a) of the CWCR requires 

submission of a declaration from a plant 

site if one or more plants at that plant 

site produced, processed or consumed a 

Schedule 2A chemical during any of the 

three previous calendar years, or 

anticipate doing so in the next calendar 

year, in excess of the quantity specified 

(the declaration threshold) for a 

Schedule 2A chemical. A plant site is 

subject to inspection/verification if it 

produced, processed or consumed a 

Schedule 2A chemical during any of the 

three previous calendar years, or 

anticipates doing so in the next calendar 

year, in excess of ten times the 

applicable declaration threshold for a 

Schedule 2A chemical (the verification 

threshold). Currently, the CWCR require 

that the quantity of a Schedule 2A 

chemical produced, processed or 

consumed in mixtures be included in 

the calculation of the annual quantity of 

Schedule 2A chemicals produced, 

processed or consumed only if the 

mixture contains 30% or more by 

weight or volume (whichever yields the 

lesser percentage) of the Schedule 2A 

chemical. 

To make these CWCR requirements 

consistent with OPCW Decision C–14/ 

DEC.4, BIS is considering amending the 

CWCR to establish a two-tiered low 

concentration exemption for certain 

mixtures containing Schedule 2A 

chemicals. The two tiers would be 

based, in part, on whether the total 

Schedule 2A chemical production, 

processing, or consumption at one or 

more plants on a plant site during a 

calendar year is less than the applicable 

verification threshold in the CWCR. 

Under the first tier, a mixture that 

contains a Schedule 2A chemical at a 

concentration of ‘‘1% or less’’ by 

volume or weight (whichever method 

yields the lesser percentage) would be 

exempt from the CWCR declaration 

requirements for Schedule 2A chemicals 

and, as such, none of the Schedule 2A 

chemical in the mixture would have to 

be counted for declaration purposes. 

Furthermore, the amount of the 

Schedule 2A chemical in such a mixture 

would be exempt from the CWCR 

Schedule 2A declaration requirements 

regardless of the total amount of the 

Schedule 2A chemical produced, 

processed, or consumed at one or more 

plants on a plant site during a calendar 

year. Under the second tier, a mixture 

that contains a Schedule 2A chemical at 

a concentration of ‘‘more than 1%, but 

less than or equal to 10%,’’ by volume 

or weight (whichever method yields the 

lesser percentage) would be exempt 

from the CWCR declaration 

requirements for Schedule 2A 

chemicals, provided that the total 

amount of a Schedule 2A chemical 

produced, processed, or consumed at 

one or more plants on a plant site 

during a calendar year is less than the 

applicable verification threshold. 

Also, BIS is considering amending the 

threshold level at which the CWCR 

would require declarations/reports on 

exports and imports of Schedule 2A 

chemicals contained in mixtures. Under 

the changes being considered by BIS, 

the CWCR would require declarations/ 

reports on exports and imports of a 

Schedule 2A chemical contained in a 

mixture at a concentration of ‘‘more 

than 10%’’ by volume or weight 

(whichever yields the lesser percentage), 

if the total quantity of the Schedule 2A 

chemical exported or imported during a 

calendar year exceeds the applicable 

declaration threshold. Currently, the 

CWCR require that exports and imports 

of a Schedule 2 chemical in a mixture 

be counted for declaration/reporting 5

purposes if the concentration of the 

Schedule 2 chemical in the mixture is 

‘‘30% or more’’ by volume or weight 

(whichever yields the lesser percentage). 

The impact of implementing OPCW 

Decision C–14/DEC.4 in the CWCR is 

illustrated, below, by using the 

production of the Schedule 2A chemical 

Perfluoroisobutene (PFIB), also known 

as 1,1,3,3,3-Pentafluoro-2- 

(trifluoromethyl)-1-propene, as an 

example. The CWCR implement the 

declaration requirements in the CWC 

that apply if at least one plant at a plant 

site produces, processes, or consumes 

more than 100 kg of PFIB during a 

calendar year (i.e., the declaration 

threshold for PFIB). Additionally, the 

CWCR impose the CWC inspection/ 

verification requirements for the 

production, processing, or consumption 

of more than 1 MT of PFIB (i.e., the 

verification threshold for PFIB). Using 

the declaration and verification 

thresholds for PFIB, a number of 

possible scenarios are described below 

to clarify how these proposed 

amendments would operate in practice. 

(1) If the calendar year production of 

PFIB at one or more plants on a plant 

site totaled 90 kg of PFIB as a mixture 

containing PFIB at a concentration of 

11%, then the Schedule 2A chemical 

declaration requirements in the CWCR 

would not apply, because the total 

amount of PFIB produced by one or 

more plants on the plant site did not 

exceed the declaration threshold of 100 

kg. In addition, if the plant site (or a 

person or trading company) exported or 

imported a total of 90 kg of PFIB as a 

mixture containing PFIB at a 

concentration of 11%, then the CWCR 

declaration/reporting requirements for 

exports and imports of Schedule 2A 

chemicals would not apply, because the 

total amount of PFIB exported or 

imported did not exceed the applicable 

declaration/reporting threshold for 

exports or imports (100 kg). In both 

scenarios, the concentration of PFIB in 

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Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Proposed Rules 41369 

the mixture is irrelevant, because the 

total quantity of PFIB did not exceed the 

applicable declaration and/or reporting 

threshold. 

(2) If the calendar year production of 

PFIB at one or more plants on a plant 

site totaled 1.1 MT of PFIB as a mixture 

containing PFIB at a concentration of 

1%, then the Schedule 2A chemical 

declaration requirements in the CWCR 

would not apply to the quantity of PFIB 

in the mixture. This would be the 

outcome under the new low 

concentration exemption being 

considered by BIS, because the amount 

of PFIB in mixtures containing 1% or 

less of PFIB does not have to be 

counted, for purposes of the Schedule 

2A declaration requirements, even if the 

total amount of PFIB produced, 

processed, or consumed at one or more 

plants on a plant site exceeds the 

applicable verification threshold (1 MT). 

If such a mixture were exported or 

imported, then the CWCR declaration/ 

reporting requirements for exports or 

imports of Schedule 2A chemicals 

would not apply to the quantity of PFIB 

in the mixture, because the 

concentration of PFIB in the mixture 

(1% PFIB) does not exceed the 10% low 

concentration exemption for mixtures 

containing Schedule 2A chemicals. 

(3) If the calendar year production of 

PFIB at one or more plants on a plant 

site totaled 900 kg of PFIB as a mixture 

containing PFIB at a concentration of 

10%, then the Schedule 2A declaration 

requirements in the CWCR would not 

apply to the quantity of PFIB in the 

mixture, because the total amount of 

PFIB produced at one or more plants on 

the plant site did not exceed the 1 MT 

verification threshold and, therefore, the 

10% low concentration exemption for 

mixtures containing Schedule 2A 

chemicals would apply (i.e., the amount 

of PFIB in mixtures containing PFIB at 

a concentration of 10% or less does not 

have to be counted for purposes of the 

CWCR declaration requirements for the 

production, processing, or consumption 

of Schedule 2A chemicals when the 

total amount of PFIB produced, 

processed, or consumed at one or more 

plants on a plant site during a calendar 

year does not exceed the applicable 

verification threshold). If a plant site (or 

a person or trading company) exported 

or imported the same quantity of PFIB 

(900 kg) as a mixture containing 10% 

PFIB, then the CWCR declaration/ 

reporting requirements for exports or 

imports of Schedule 2A chemicals 

would not apply to the quantity of PFIB 

in the mixture. This is because even 

though the total amount of PFIB 

exported or imported (900 kg) exceeds 

the applicable CWCR declaration 

threshold (100 kg), a mixture that 

contains 10% PFIB would not exceed 

the 10% low concentration exemption 

for mixtures containing Schedule 2A 

chemicals. 

(4) If the calendar year production of 

PFIB at one or more plants on a plant 

site totaled 1.1 MT of PFIB as a mixture 

containing a concentration of 10% PFIB, 

then the Schedule 2A declaration 

requirements in the CWCR would apply 

to the quantity of PFIB in the mixture, 

because 1.1 MT of PFIB exceeds the 1 

MT verification threshold, which means 

that the applicable low concentration 

exemption for mixtures containing 

Schedule 2A chemicals would be 1% or 

less, instead of 10% or less (the latter 

exemption level applies when the total 

amount of PFIB produced, processed, or 

consumed at one or more plants at a 

plant site does not exceed the 1 MT 

verification threshold). Under these 

circumstances, the amount of PFIB in 

mixtures of PFIB with a concentration of 

more than 1% must be included in the 

calculation of the amount produced, 

processed, or consumed, for declaration 

purposes. If a plant site (or a person or 

trading company) exported or imported 

the same quantity of PFIB (1.1 MT) as 

a mixture containing PFIB at a 

concentration of 10%, the CWCR 

declaration/reporting requirements for 

exports or imports of Schedule 2A 

chemicals would not apply to the 

quantity of PFIB in the mixture, because 

a mixture containing 10% PFIB does not 

exceed the 10% low concentration 

exemption for mixtures containing 

Schedule 2A chemicals. 

(5) If the calendar year production of 

PFIB at one or more plants on a plant 

site totaled 900 kg of PFIB as a mixture 

containing PFIB at a concentration of 

11%, then the declaration requirements 

in the CWCR would apply to the 

quantity of PFIB in the mixture, because 

900 kg of PFIB exceeds the 100 kg 

declaration threshold and a mixture that 

contains PFIB at a concentration of 11% 

exceeds the 10% low concentration 

exemption, which applies when the 

total amount of a Schedule 2A chemical 

produced, processed, or consumed at 

one or more plants at a plant site does 

not exceed the verification threshold (1 

MT of PFIB). Under these 

circumstances, the quantity of PFIB in 

mixtures containing PFIB at a 

concentration of more than 10% must 

be included in the calculation of the 

amount produced, processed, or 

consumed, for declaration purposes. If a 

plant site (or a person or trading 

company) exported or imported the 

same quantity of PFIB (900 kg) as a 

mixture containing PFIB at a 

concentration of 11%, then the CWCR 

declaration/reporting requirements for 

exports or imports of Schedule 2A 

chemicals would apply to the quantity 

of PFIB in the mixture because the total 

amount of PFIB exported or imported 

(900 kg) exceeds the applicable 

declaration/reporting requirement 

threshold in the CWCR (100 kg) and a 

mixture that contains PFIB at a 

concentration of 11% exceeds the 10% 

low concentration exemption for 

mixtures containing Schedule 2A 

chemicals. 

BIS is seeking public comments on 

the potential effects of amending the 

CWCR declaration requirements that 

apply to the production, processing, and 

consumption of Schedule 2A chemicals 

by reducing the concentration level at 

which certain mixtures containing low 

concentrations of Schedule 2A 

chemicals would be exempt from these 

requirements. Specifically, the current 

exemption, which applies when the 

concentration of the Schedule 2A 

chemical in the mixture is ‘‘less than 

30%’’ by volume or weight (whichever 

method yields the lesser percentage), 

would be replaced by a two-tiered 

exemption under which the following 

mixtures would be exempt: (1) Mixtures 

containing a Schedule 2A chemical at a 

concentration of ‘‘1% or less’’ by 

volume or weight (whichever method 

yields the lesser percentage) and (2) 

mixtures containing a Schedule 2A 

chemical at a concentration of ‘‘more 

than 1%, but less than or equal to 10%’’ 

by volume or weight (whichever method 

yields the lesser percentage), provided 

that the total amount of the Schedule 2A 

chemical produced, processed, or 

consumed at one or more plants on a 

plant site during a calendar year is less 

than the applicable verification 

threshold in the CWCR. The public 

comments received in response to this 

notice of inquiry will assist BIS in 

assessing the impact of this change on 

U.S. persons involved in the 

production, processing, or consumption 

of Schedule 2A chemicals. 

Additionally, BIS is seeking public 

comments on the potential effects of 

amending the CWCR declaration/ 

reporting requirements that apply to 

certain exports or imports of Schedule 

2A chemicals by reducing the 

exemption for mixtures containing low 

concentrations of Schedule 2A 

chemicals from the current level of ‘‘less 

than 30%’’ by volume or weight 

(whichever yields the lesser percentage) 

to a concentration of ‘‘10% or less’’ by 

volume or weight (whichever yields the 

lesser percentage). In particular, BIS 

seeks comments on the potential impact 

of these changes on costs, operations, 

and trade. 

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41370 Federal Register / Vol. 76, No. 134 / Wednesday, July 13, 2011 / Proposed Rules 

Finally, BIS is seeking public 

comments on the anticipated impact of 

these changes with respect to an 

existing collection of information 

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 

PRA, unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. The changes 

that are being considered by BIS would 

revise an existing 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 of 10.6 hours for Schedule 1 

Chemicals, 11.9 hours for Schedule 2 

chemicals, 2.5 hours for Schedule 3 

chemicals, 5.3/5.1/5.1 hours for 

unscheduled discrete organic chemicals 

(includes Annual Declaration on Past 

Activities, No Changes Authorization 

Form, and Change in Inspection Status 

Form, respectively), and 0.17 hours for 

Schedule 1 notifications. 

Specifically, these changes would 

affect this approved information 

collection with respect to information 

collection activities (e.g., declarations, 

reports, recordkeeping) involving CWC 

Schedule 2A chemicals that are subject 

to declaration and/or reporting 

requirements under the CWCR. In this 

regard, BIS is seeking comments that 

address the anticipated impact of the 

changes being considered by BIS on the 

burden hours and costs associated with 

Schedule 2A chemical activities under 

this approved information collection. 

Send comments regarding this 

collection of information, including 

suggestions for reducing the burden, to 

Jasmeet Seehra, Office of Management 

and Budget (OMB), and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, as indicated in the 

ADDRESSES section of this notice. 

Submission of Comments 

All comments must be submitted to 

the address indicated in this notice. The 

Department requires that all comments 

be submitted in written form. 

The Department encourages interested 

persons who wish to comment to do so 

at the earliest possible time. The period 

for submission of comments will close 

on August 12, 2011. The Department 

will consider all comments received 

before the close of the comment period. 

Comments received after the end of the 

comment period will be considered if 

possible, but their consideration cannot 

be assured. The Department will not 

accept comments accompanied by a 

request that a part or all of the material 

be treated confidentially because of its 

business proprietary nature or for any 

other reason. The Department will 

return such comments and materials to 

the persons submitting the comments 

and will not consider them. All 

comments submitted in response to this 

notice will be a matter of public record 

and will be available for public 

inspection and copying. 

The Office of Administration, Bureau 

of Industry and Security, U.S. 

Department of Commerce, displays 

public comments on the BIS Freedom of 

Information Act (FOIA) Web site at 

http://www.bis.doc.gov/foia. This office 

does not maintain a separate public 

inspection facility. If you have technical 

difficulties accessing this Web site, 

please call BIS’s Office of 

Administration, at (202) 482–2165, for 

assistance. 

Dated: July 1, 2011. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–17488 Filed 7–12–11; 8:45 am] 

BILLING CODE 3510–33–P 

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