Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules 449

regulatory analysis (5 U.S.C. 603–604)

are not applicable to this proposal

because the Commission believes that

the amendment, if promulgated, will not

have a significant economic impact on

a substantial number of small entities.

The Commission has tentatively reached

this conclusion with respect to the

proposed amendment because the

amendment would impose no

additional obligations, penalties or

costs. The amendment simply would

allow covered companies to use a new

generic name for a new fiber that may

not appropriately fit within current

generic names and definitions. The

amendment would impose no

additional labeling requirements.

To ensure that no substantial

economic impact is being overlooked,

however, the Commission requests

public comment on the effect of the

proposed amendment on costs, profits,

and competitiveness of, and

employment in, small entities. After

receiving public comment, the

Commission will decide whether

preparation of a final regulatory

flexibility analysis is warranted.

Accordingly, based on available

information, the Commission certifies,

pursuant to the Regulatory Flexibility

Act (5 U.S.C. 605(b)), that the proposed

amendment, if promulgated, would not

have a significant economic impact on

a substantial number of small entities.

V. Paperwork Reduction Act

This proposed amendment does not

constitute a ‘‘collection of information’’

under the Paperwork Reduction Act of

1995 (Pub. L. 104–13, 109 Stat. 163) and

its implementing regulations. (5 CFR

1320 et seq.) The collection of

information imposed by the procedures

for establishing generic names (16 CFR

303.8) has been submitted to OMB and

has been assigned control number 3084–

0101.

List of Subjects in 16 CFR Part 303

Labeling, Textile, Trade practices.

VI. Proposed Amendments

Accordingly, the Commission

proposes that 16 CFR Part 303 be

amended as follows:

PART 303—RULES AND

REGULATIONS UNDER THE TEXTILE

FIBER PRODUCTS IDENTIFICATION

ACT

1. The authority citation for part 303

continues to read as follows:

Authority: 15 U.S.C. 70 et seq.

2. It is proposed that a new paragraph

(x) be added to § 303.7, to read as

follows:

§ 303.7 Generic names and definitions for

manufactured fibers.

(x) Fluoropolymer. A manufactured

fiber containing at least 95% of a longchain polymer synthesized from

aliphatic fluorocarbon monomers.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–101 Filed 1–5–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

16 CFR Part 303

Rules and Regulations Under the

Textile Fiber Products Identification

Act

AGENCY: Federal Trade Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Federal Trade

Commission (‘‘Commission’’) solicits

comments as to whether to amend Rule

7 of the Rules and Regulations Under

the Textile Fiber Products Identification

Act (16 CFR 303.7) to designate a new

generic fiber name and establish a new

generic fiber definition for a fiber

manufactured by BASF Corporation

(‘‘BASF’’), of Mt. Olive, New Jersey.

BASF requested that the Commission

establish the name ‘‘melamine’’ for the

fiber, which it designates by the

registered name ‘‘Basofil.’’

DATES: Comments will be accepted

through March 23, 1998.

ADDRESSES: Comments should be

submitted to: Office of the Secretary,

Federal Trade Commission, Room 159,

Sixth St. & Pennsylvania Ave., NW,

Washington DC, 20580. Comments

should be identified as ‘‘16 CFR Part

303—Textile Rule 7 Comment—

P974228.’’

FOR FURTHER INFORMATION CONTACT:

James G. Mills, Attorney, Division of

Enforcement, Federal Trade

Commission, Washington, DC, 20580;

(202) 326–3035, FAX: (202) 326–3259.

SUPPLEMENTARY INFORMATION:

I. Background

Rule 6 of the Rules and Regulations

under the Textile Fiber Products

Identification Act (‘‘Textile Rules,’’ 16

CFR 303.6) requires manufacturers to

use the generic names of the fibers

contained in their textile fiber products

in making required disclosures of the

fiber content of the products. Rule 7 (16

CFR 303.7) sets forth the generic names

and definitions that the Commission has

established for synthetic fibers. Rule 8

(16 CFR 303.8) sets forth the procedures

for establishing new generic names.

BASF submitted its application in this

matter to the Commission on March 22,

1996. Since then, BASF has submitted

additional information at the request of

the Commission’s staff. The application

and related materials have been placed

on the rulemaking record. BASF stated

that Basofil fiber, which is mostly used

in combination with other heat- and

flame-resistant fibers, is intended for

use in applications where heat and

flame resistance and low flammability

are vital, including fire-blocking fabrics,

protective apparel and heat-insulating

fabrics. BASF stated that, because the

unique chemistry of Basofil fiber is

inadequately described under the

existing generic names listed in the

Textile Rules, a new generic name and

definition should be established.

After an initial analysis, on June 25,

1996, the Commission issued BASF the

designation ‘‘BC 0001’’ for temporary

use in identifying Basofil, pending a

final determination as to the merits of

the application for a new generic name.

II. Chemical composition and Physical

and Chemical Properties of BASF’s

Fiber

In its petition and other materials,

BASF described Basofil as a fiber that,

because of its unique melamineformaldehyde chemistry, is especially

suited for applications in which heat

and flame resistance are needed. BASF

intends the fiber to be used in the

manufacture of heat- and flame-resistant

textile products, like fire-blocking

fabrics, gloves and aprons and other

protective apparel, and filters for use in

high-temperature applications. BASF

described Basofil chemically as follows:

The product is a fiber made from a

condensation polymer of melamine

derivatives and formaldehyde * * *. In the

condensation reaction, methylol compounds

are formed which then react with one

another to form a three-dimensional structure

of methylene ether and methylene bridges.

The chemical composition of Basofil fiber

is based upon a three-dimensional cross

linked structure containing methylene links,

such as (Melamine–NH–CH2–NH–Melamine)

and dimethylene ether links such as

(Melamine–NH–CH2–O–CH2NH–Melamine).

The melamine can also be modified to

contain hydroxyl groups.

The network structure of Basofil fiber

provides the characteristics found in

melamine-based resins—heat stability,

solvent resistance, and low flammability.

BASF stated that Basofil combines fire

protection and heat stability with good

chemical, hydrolysis and ultraviolet

resistance, and that the fiber, which is

white and dyeable, can be processed on

standard textile manufacturing
450 Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules

equipment for the production of woven,

knitted, and nonwoven fabrics.

BASF asserted that Basofil’s most

outstanding physical properties are its

high Limiting Oxygen Index (LOI), low

thermal conductivity, heat dimensional

stability, and the fact that it does not

shrink, melt or drip when exposed to a

flame. BASF provided the following

table to describe the most important

physical properties of Basofil:

Fiber Denier, nominal 2.5, variable.

Staple Length, nominal.2 inch, variable.

Density ...................... 1.4 g/cm3.

Tenacity, nominal ...... 1.8 g/denier.

Elongation at Break,

nominal.

12%.

Moisture Regain,

@23°C & 65% RH.

5%.

Limiting Oxygen

Index (LOI).

32.

Continuous Use Temperature.200°C (392°F)

Maximum Use Temperature.260°C–370°C

(500°F–698°F).

Hot Air Shrinkage, 1

hr @ 200°C(392°F).

<1%.

BASF tested an 18 oz/yd2 woven

Basofil fabric sample for tensile strength

and elongation at break, after a 12-hour

exposure in water at room temperature

and reconditioned in dry air, in

accordance with European test method

DIN 53 857 using samples 50 mm wide

and an extension rate of 100 mm/min.

The results indicated that there was

little effect on tensile properties

(breaking strength @ 225 lbs. dry and

214 lbs. after immersion: breaking

elongation @ 20% for both).

BASF evaluated the chemical

resistance of the same Basofil fabric in

various solvents, acides and basis. The

fabric was exposed to the test medium

for 28 days at room temperature and

then washed and tested wet to measure

tensile strength loss after exposure. The

results showed that Basofil fiber is

resistant to many solvents and to

hydrolysis, is extremely resistant to

alkalis and has some resistance to acids.

BASF exposed fabric samples to

elevated temperatures and then tested

them at room temperature for breaking

strength. The results indicated minimal

change in tensile properties. BASF also

directly measured the tensile strength at

temperatures up to 200°C. The fabric

was treated for one hour at the test

temperature and measured for tensile

strength. Again, the results showed little

change in tensile strength.

BASF conducted several tests of

Basofil fabric samples to evaluate

flammability, ignitability, flame spread,

the secondary effects of fire and heat

release, and smoke toxicity. BASF tested

a sample of 18 oz/yd2 woven Basofil

fabric in accordance with ASTM E662-

79/BSS 7239 and analyzed smoke and

gas samples taken four minutes after the

onset of smoldering. The results showed

that Basofil fiber was well under Federal

Aviation Administration requirements

(important because an early use of

Basofil was as a fire-retardant material

in airplanes). The specific optical

density of the smoke, according to the

test, was 25 (DS) after 4 minutes flaming.

A DS value less than 200 is required to

pass FAA standards. BASF’s results of

a 12-second vertical flame test

(according to Federal Aviation

Regulation 25.853/FTM 191–5903)

showed that Basofil fabric also meets

FAA requirements in this regard. BASF

measured the Thermal Protective

Performance (TPP) of the same Basofill

fabric, according to NFPA 1971. The

results were a single fabric layer TPP of

27 at a heat flux of 2 cal/cm2-sec.

In additional materials, BASF

provided the Commission with infrared

spectrum information, x-ray diffraction

results, and fiber and fabric samples.

III. Invitation To Comment

The Commission is soliciting

comment on BASF’s application

generally, and on whether the

application meets the criteria (discussed

below) that the Commission first

announced at 38 FR 34112 (Dec. 11,

1973) as grounds for the granting of

petitions for new generic names, and

later clarified and reaffirmed on

December 6, 1995, 60 FR 62353, and

again on May 23, 1997, 62 FR 28343.

BASF has contended that its petition

meets these criteria.

First Criterion: The fiber for which a

generic name is requested must have a

chemical composition radically different

from other fibers, and that distinctive

chemical composition must result in

distinctive physical properties of significance

to the general public.

According to BASF, the Basofil fiber

is based upon unique melamine

chemistry that tresults in a fiber with

significant heat and flame resistance.

BASF asserted that the granting of a

generic name and definition for Basofil

is necessary to enable consumers

seeking high heat and flame resistance

to identify those textile fiber products

containing Basofil.

Second Criterion: The fiber must be in

active commercial use or such use must be

immediately foreseen.

BASF stated that it has begun to

import Basofil fiber and to market the

fiber to potential end users. At the time

of its petition, BASF was in the process

of building a plant in Enka, North

Carolina, capable of producing

approximately 3.6 million pounds of

Basofil. Counsel for BASF has informed

the Commission that the plant is

currently operational.

Third Criterion: The granting of the generic

name must be of importance to the

consuming public at large, rather than a

small group of knowledgeable professionals

such as purchasing officers for large

Government agencies.

BASF argued that, because of the

importance of heat and flame resistance

to many fiber products, both industrial

and consumer, the Commission’s

granting of the generic name is of

importance to the general public.

The Commission also requests

comments on the appropriateness of the

fiber name definition proposed by

BASF. Maintaining that the key to

Basofil chemistry is the melaminealdehyde cross-linkage, BASF proposed

the generic name ‘‘melamine,’’ with the

following corresponding definition:

A manufactured fiber in which the fiber

forming substance is a synthetic polymer

composed of at least 50% by weight of a

cross-linked melamine polymer.

BASF explained that the unusually

low (50%) threshold for the principal

element of the fiber (the cross-linked

melamine polymer) in the definition is

based on the possibility that Basofil may

be modified in the future to contain

other components typically found in

fiber formulations, such as dispersing

aids, fillers, flame retardants, heat or

light stabilizers, optical modifiers, etc.

BASF provided an example of such a

formulation:

50% melamine fiber

5% pigment

5% pigment dispersing aid

15% flame retardant

5% light or heat stabilizer

20% organic filler

BASF continued:

Original fiber properties could change in

some cases. For example, initial tenacity and

elongation may drop. In other cases, original

properties may not change, but fastness

properties may improve, as, for example,

with the addition of a stabilizer. In other

instances, the change may only be in

appearance, as with the addition of a

pigment.

Before deciding whether to amend

Rule 7, the Commission will consider

any comments submitted to the

Secretary of the Commission within the

above-mentioned comment period.

Comments that are submitted will be

available for public inspection, in

accordance with the Freedom of

Information Act, 5 U.S.C. 552, and

Commission regulations, 16 CFR 4, on
Federal Register / Vol. 63, No. 3 / Tuesday, January 6, 1998 / Proposed Rules 451

normal business days between the hours

of 8:30 a.m. and 5:00 p.m. at the Public

Reference Room, Room 130, Federal

Trade Commission, 6th St. &

Pennsylvania Ave., NW, Washington,

D.C. 20580.

IV. Regulatory Flexibility Act

The provisions of the Regulatory

Flexibility Act relating to an initial

regulatory analysis (5 U.S.C. 603–604)

are not applicable to this proposal

because the Commission believes that

the amendment, if promulgated, will not

have a significant economic impact on

a substantial number of small entities.

The Commission has tentatively reached

this conclusion with respect to the

proposed amendment because the

amendment would impose no

additional obligations, penalties or

costs. The amendment simply would

allow covered companies to use a new

generic name for a new fiber that may

not appropriately fit within current

generic names and definitions. The

amendment would impose no

additional labeling requirements.

To ensure that no substantial

economic impact is being overlooked,

however, the Commission requests

public comment on the effect of the

proposed amendment on costs, profits,

and competitiveness of, and

employment in, small entities. After

receiving public comment, the

Commission will decide whether

preparation of a final regulatory

flexibility analysis is warranted.

Accordingly, based on available

information, the Commission certifies,

pursuant to the Regulatory Flexibility

Act (5 U.S.C. 605(b)), that the proposed

amendment, if promulgated, would not

have a significant economic impact on

a substantial number of small entities.

V. Paperwork Reduction Act

This proposed amendment does not

constitute a ‘‘collection of information’’

under the Paperwork Reduction Act of

1995 (Pub. L. 104–13, 109 Stat. 163) and

its implementing regulations. (5 CFR

1320 et seq.) The collection of

information imposed by the procedures

for establishing generic names (16 CFR

303.8) has been submitted to OMB and

has been assigned control number 3084–

0101.

List of Subjects in 16 CFR Part 303

Labeling, Textile, Trade practices.

VI. Proposed Amendments

Accordingly, the Commission

proposed that 16 CFR Part 303 be

amended as follows:

PART 303—RULES AND

REGULATIONS UNDER THE TEXTILE

FIBER PRODUCTS IDENTIFICATION

ACT

1. The authority citation for part 303

continues to read as follows:

Authority: 15 U.S.C. 70e(c) et seq.

2. It is proposed that a new paragraph

(w) be added to § 303.7, to read as

follows:

§ 303.7 Generic names and definitions for

manufactured fibers.

* * * * *

(w) Melamine. A manufactured fiber

in which the fiber-forming substance is

a synthetic polymer composed of at

least 50% by weight of a cross-linked

melamine polymer.

By direction of the Commission.

Benjamin I. Berman,

Acting Secretary.

[FR Doc. 98–100 Filed 2–5–98; 8:45 am]

BILLING CODE 6750–01–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Chapter II

[Release Nos. 33–7491, 34–39496, 35–26806,

39–2360, IC–22978, IA–1690; File No. S7–

34–97]

List of Rules To Be Reviewed Pursuant

to the Regulatory Flexibility Act

AGENCY: Securities and Exchange

Commission.

ACTION: Publication of list of rules

scheduled for review.

SUMMARY: The Securities and Exchange

Commission is today publishing a list of

rules to be reviewed pursuant to Section

610 of the Regulatory Flexibility Act.

The list is published to provide the

public with notice that these rules are

scheduled for review by the agency and

to invite public comment on them.

DATES: Public comments are due by

January 31, 1998.

ADDRESSES: Persons wishing to submit

written comments should file three

copies with Jonathan G. Katz, Secretary,

Securities and Exchange Commission,

450 Fifth Street, N.W., Room 6184, Stop

6–9, Washington, D.C. 20549. All

submissions should refer to File No. S7–

34–97, and will be available for public

inspection and copying at the

Commission’s Public Reference Room,

Room 1026, at the same address.

FOR FURTHER INFORMATION CONTACT:

Anne H. Sullivan, Office of the General

Counsel, Securities and Exchange

Commission 202–942–0954.

SUPPLEMENTARY INFORMATION: The

Regulatory Flexibility Act (‘‘RFA’’)

codified at 5 U.S.C. 600–611 requires

agencies to review rules which have a

significant economic impact upon a

substantial number of small entities

every ten years. The purpose of the

review is ‘‘to determine whether such

rules should be continued without

change, or should be amended or

rescinded * * * to minimize any

significant economic impact of the rules

upon a substantial number of such small

entities’’ (5 U.S.C. 610(a)).

The RFA sets forth specific

considerations that must be addressed

in the review of each rule:

• the continued need for the rule;

• the nature of complaints or

comments received concerning the rule

from the public;

• the complexity of the rule;

• the extent to which the rule

overlaps, duplicates or conflicts with

other Federal rules, and, to the extent

feasible, with State and local

governmental rules; and

• the length of time since the rule has

been evaluated or the degree to which

technology, economic conditions, or

other factors have changed in the area

affected by the rule (5 U.S.C. 610(c)).

The Securities and Exchange

Commission, as a matter of policy,

reviews all rules which it publishes

notice and comment for compliance

with the RFA. Pursuant to the RFA, the

rules and forms listed below are

scheduled for review by staff of the

Commission during the next twelve

months. The rules are grouped

according to which Division or Office of

the Commission will review each rule:

Rule To Be Reviewed by the Office of

the Chief Accountant

Title: Article 10 of Regulation S–X

(Interim Financial Statements).

Citation: 17 CFR 210.10.

Authority: 15 U.S.C. 77f, 77g, 77s(a),

77aa(25), 77a(26), 78l, 78m, 78o(d),

78w(a), 79e(b), 79n, 79t(a), 80a–8, and

80a–29.

Rule To Be Reviewed by the Division of

Corporation Finance

Title: Rule 701 (Exemption for offers

and sales of securities pursuant to

certain compensatory benefit plans and

contracts relating to compensation).

Citation: 17 CFR 230.701.

Authority: 15 U.S.C. 77a et seq.

Rule To Be Reviewed by the Division of

Market Regulation

Title: Rule 10b–21(T) (Short sales in

connection with a public offering).

Citation: 17 CFR 240.10b–21(T).

Authority: 15 U.S.C. 77c, 77d, 77g,

77j, 77s, 77eee, 77ggg, 77nnn, 77sss,