Federal Register / Vol. 63, No. 151 /Thursday, August 6, 1998 / Proposed Rules 41979

2. Section 701.21 is amended by

adding a new paragraph (g)(7) to read as

follows:

§ 701.21(g) Loans to members and lines of

credit to members.

* * * * *

(g) * * *

(7) Assumption of real estate loans by

nonmembers. A federal credit union

may permit a nonmember to assume a

member’s mortgage loan in conjunction

with the nonmember’s purchase of the

member’s principal residence, provided

that the nonmember assumes only the

remaining unpaid balance of the loan,

the terms of the loan remain unchanged,

and there is no extension of the original

maturity date specified in the loan

agreement with the member. An

assumption is impermissible if the

original loan was made with the intent

of having a nonmember assume the

loan.

* * * * *

[FR Doc. 98–20951 Filed 8–5–98; 8:45 am]

BILLING CODE 7535–01–U

DEPARTMENT OF COMMERCE

Bureau of the Census

15 CFR Part 30

[Docket No. 980716108–8108–01]

RIN 0607–AA20

Amendment to Foreign Trade Statistics

Regulations To Clarify Exporters’ and

Forwarding Agents’ Responsibilities

and To Clarify Provisions for

Executing a Power of Attorney

AGENCY: Bureau of the Census,

Commerce.

ACTION: Notice of proposed rulemaking

and request for comments.

SUMMARY: The Bureau of the Census

(Census Bureau) proposes amending the

Foreign Trade Statistics Regulations

(FTSR), 15 CFR Part 30, to clarify

exporters’ and forwarding agents’

responsibilities for providing and

reporting information on the Shipper’s

Export Declaration (SED), and to clarify

the provisions for executing a power of

attorney when exporters authorize

forwarding agents to perform services

regarding the export of merchandise out

of the United States. This proposed rule

will further clarify the provisions for

executing a power of attorney when the

principal party is transmitting SED

information electronically. The Census

Bureau also proposes requiring that the

SED be prepared in English.

The proposed revisions are consistent

with the Bureau of Export

Administration’s Export Administration

Regulations (EAR) regarding export

control responsibilities of exporters and

forwarding agents. The Department of

Treasury concurs with the provisions

contained in this proposed rule.

DATES: Written comments must be

submitted on or before October 5, 1998.

ADDRESSES: Direct all written comments

on this proposed rulemaking to the

Director, Bureau of the Census, Room

2049, Federal Building 3, Washington,

D.C. 20233.

FOR FURTHER INFORMATION CONTACT: C.

Harvey Monk, Jr., Chief, Foreign Trade

Division, Bureau of the Census, Room

2104, Federal Building 3, Washington,

D.C. 20233–6700, by telephone on (301)

457–2255 or by fax on (301) 457–2645.

SUPPLEMENTARY INFORMATION:

Background

In response to requests from various

members of the trade community, the

Census Bureau proposes amending 15

CFR Part 30 to clarify the

responsibilities of exporters and

forwarding agents for preparing and

submitting SEDs and to clarify the

provisions for obtaining and executing a

power of attorney.

For purposes of this proposed rule,

the exporter is defined as any person in

the United States; any firm; government

agency, department, or commission; and

any other association or organization,

whether or not organized for profit,

organized under the laws of the United

States, or any jurisdiction within the

United States, who is also the principal

party in interest in the export

transaction. Generally, the exporter is

the U.S. manufacturer, seller, order

party, or licensee on an export license.

A forwarding agent may act as exporter,

but only when it is the ‘‘applicant’’ and

‘‘licensee’’ on an export license. A

foreign principal, not located in the

United States at the time of export, must

not be designated as exporter on the

SED. If a U.S. manufacturer sells

merchandise for export to a foreign

company (including Ex Works), the U.S.

manufacturer must be listed as exporter

on the SED. If a U.S. manufacturer sells

merchandise to a U.S. seller

(wholesaler/distributor), and the U.S.

seller sells the merchandise for export to

a foreign company (including Ex

Works), the U.S. seller must be listed as

exporter on the SED. If a U.S.

manufacturer or seller sells merchandise

to a U.S. order party and the U.S. order

party arranges for the sale and export of

the merchandise to a foreign company

(including Ex Works), the U.S. order

party must be listed as exporter on the

SED.

The U.S. manufacturer, seller, or

order party, that is, the principal party

in interest in the export transaction,

may authorize its own forwarding agent

to facilitate the export transaction or

may authorize the forwarding agent

designated by the foreign company. In

either case, the U.S. manufacturer,

seller, or order party must authorize the

forwarding agent to act on its behalf in

completing and filing the SED in a

power of attorney or a written

authorization to execute the SED, or

sign the authorization printed on the

SED. When a U.S. manufacturer, seller,

or order party authorizes a forwarding

agent to facilitate the export transaction,

the manufacturer, seller, or order party,

that is, whoever sold the merchandise to

the foreign company, must be listed as

the exporter on the SED, unless the

forwarding agent is the applicant and

licensee on an export license.

The forwarding agent is any person in

the United States; any firm; government

agency, department or commission; and

any other association or organization,

whether or not organized for profit,

organized under the laws of the United

States, or any jurisdiction within the

United States, who is authorized by the

U.S. principal party in interest in the

export transaction to perform the

services required to facilitate the export

of the merchandise out of the United

States. The principal party must

authorize a forwarding agent to act on

its behalf in completing and filing the

SED in a power of attorney or a written

authorization to execute the SED, or

sign the authorization printed on the

SED. The principal party also must

provide the forwarding agent with the

information necessary to correctly

prepare the SED in accordance with the

requirements specified in FTSR § 30.7.

The FTSR places ultimate

responsibility for the export transaction

on the exporter. However, the FTSR also

considers all parties to the export

transaction, including U.S. and foreign

principals and forwarding agents

responsible for providing information

necessary to complete the SED, and for

the accuracy of the information reported

on the SED. If a forwarding agent’s

principal does not possess the necessary

information, the forwarding agent may

request that other parties to the export

transaction provide that information.

The parties to the transaction must

provide the forwarding agent with the

necessary information to correctly

prepare the SED. Necessary and proper

documentation must be maintained by

all parties involved in the export

transaction to support information

reported on the SED.
41980 Federal Register / Vol. 63, No. 151 /Thursday, August 6, 1998 / Proposed Rules

3aThe order party is that person in the United

States who conducted the direct negotiations or

correspondence with the foreign purchaser or

ultimate consignee and who, as a result of these

negotiations, received the order from the foreign

purchaser or ultimate consignee.

This proposed rule clarifies

provisions for using a properly executed

power of attorney when a forwarding

agent is authorized to prepare the SED

on behalf of the exporter and when the

SED information is filed electronically.

Suggested formats for a power of

attorney and a written authorization for

executing a SED are available from the

Foreign Trade Division, Bureau of the

Census, and from the Office of Export

Services, Bureau of Export

Administration. Formats for the power

of attorney and written authorization are

provided in Appendix A and B to this

proposed rule.

This proposed amendment further

requires that the SED be prepared in

English. This provision is already

included in the Census Bureau’s

instructions for completing the SED, so

this proposed amendment serves simply

to include that requirement in the Code

of Federal Regulations (CFR).

In addition, this proposed amendment

clarifies the provision in § 30.7(d)(2)

that a foreign entity, if operating in the

United States at the time of export, can

be listed as ‘‘exporter’’ on the SED, but

does not need to report an Internal

Revenue Service Employer

Identification Number (EIN) or a Social

Security Number (SSN) on the SED.

Using an EIN or SSN that is not your

own is prohibited.

Program Requirements

In order to comply with the requests

from the trade community to update the

provisions of the FTSR and to clarify the

items discussed above, the Census

Bureau proposes amending appropriate

sections of the FTSR.

The Census Bureau proposes

amending Section 30.4(a) to include: a

description of the duties and

responsibilities of exporters and

forwarding agents; provisions for

obtaining information for the

preparation of the SED; provisions for

authorizing a forwarding agent to

perform exporting services; and

provisions for filing a power of attorney

when SED information is going to be

transmitted electronically.

The Census Bureau proposes

amending Section 30.4(b) to include the

provision that the SED be prepared in

English. This will make it consistent

with the current instructions for

preparing the SED.

The Census Bureau proposes

amending Section 30.7(d)(1) ‘‘Name of

exporter and exporter’s Employer

Identification Number’’ to clarify the

designation of ‘‘exporter’’ named on the

SED.

The Census Bureau proposes

amending Section 30.7(d)(2) ‘‘Exporters

Employer Identification Number’’ to

clarify the requirement that a foreign

principal, located in the United States at

the time of export, can complete a SED

as ‘‘exporter’’ without reporting an

Internal Revenue Service EIN or SSN.

The Census Bureau further proposes

amending section 30.7(e) ‘‘Agent of

exporter (forwarding agent)’’ to specify

the responsibilities of the forwarding

agent in preparing the SED.

Rulemaking Requirements

This proposed rule is exempt from all

requirements of Section 553 of the

Administrative Procedure Act because it

deals with a foreign affairs function (5

U.S.C. (A) (1)). However, this is being

published as a proposed rule with an

opportunity for public comment

because of the importance of the issues

raised by this rulemaking.

Regulatory Flexibility Act

Because a notice of proposed

rulemaking is not required by 5 U.S.C.

553 or any other law, a Regulatory

Flexibility Analysis is not required and

has not been prepared (5 U.S.C. 603 (a)).

Executive Orders

This proposed rule has been

determined to be not significant for

purposes of Executive Order 12866.

This proposed rule does not contain

policies with Federalism implications

sufficient to warrant preparation of a

Federalism assessment under Executive

Order 12612.

Paperwork Reduction Act

Notwithstanding any other provisions

of law, no person is required to respond

to, nor shall a person be subject to a

penalty for failure to comply with, a

collection of information subject to the

requirements of the Paperwork

Reduction Act (PRA), unless that

collection of information displays a

currently valid Office of Management

and Budget (OMB) control number.

This proposed rule covers collections

of information subject to the provisions

of the PRA, which are cleared by the

OMB under OMB Control Number

0607–0152.

This proposed rule will not impact

the current reporting-hour burden

requirements as approved under OMB

Control Number 0607–0152 under

provisions of the PRA of 1995, Public

Law 104–13.

List of Subjects in 15 CFR Part 30

Economic statistics, Foreign trade,

Exports, Reporting and Recordkeeping

requirements.

For the reasons set out in the

preamble, it is proposed that Part 30 be

amended as follows:

PART 30—FOREIGN TRADE

STATISTICS

1. The authority citation for 15 CFR

Part 30 continues to read as follows:

Authority: 5 U.S.C. 301; 13 U.S.C. 301–

307; Reorganization Plan No. 5 of 1950 (3

CFR 1949–1953 Comp., 1004); Department of

Commerce Organization Order No. 35–2A,

August 4, 1975, 40 CFR 42765.

Subpart A—General Requirements—

Exporter

2. Section 30.4 is proposed to be

amended by revising paragraphs (a) and

(b) to read as follows:

§ 30.4 Preparation and signature of

Shipper’s Export Declarations.

(a) The Shipper’s Export Declaration

(SED) shall be prepared and signed by

any person in the United States; any

firm; government agency, department,

or commission; and any other

association or organization, whether or

not organized for profit, organized

under the laws of the United States, or

any jurisdiction within the United

States, who is also the principal party in

interest in the export transaction.

Generally, that person will be the

exporter or the authorized forwarding

agent.

(1) Exporter. The exporter is any

person in the United States; any firm;

government agency, department, or

commission; and any other association

or organization, whether or not

organized for profit, organized under the

laws of the United States, or any

jurisdiction within the United States,

who is also the U.S. principal party in

interest in the export transaction.

Generally, the exporter is the U.S.

manufacturer, seller, order party 3a, or

licensee on an export license. A

forwarding agent may be the exporter

only when it is the ‘‘applicant’’ and

‘‘licensee’’ on an export license. (See 15

CFR §§ 748.5 and 750.7(d)).

(2) Forwarding Agent. The forwarding

agent is any person in the United States;

any firm; government agency,

department, or commission; and any

other association or organization,

whether or not organized for profit,

organized under the laws of the United

States, or any jurisdiction within the

United States, who is authorized by the
Federal Register / Vol. 63, No. 151 /Thursday, August 6, 1998 / Proposed Rules 41981

U.S. principal party in interest in the

export transaction to perform the

services required to facilitate the export

of merchandise out of the United States.

Forwarding agents should be authorized

in a power of attorney or the

authorization printed on the SED, or

with some type of written authorization

to execute the SED. The forwarding

agent is generally responsible for

arranging for the transport and delivery

of the merchandise to the exporting

carrier and, when the principal requests

it, correctly preparing and submitting

the SED. Forwarding agents that prepare

the SED do so based on information

obtained from the principals and other

appropriate parties to the transaction

and are responsible for the accuracy of

all information provided on the SED,

including the description of the

merchandise being exported, export

licensing information, Schedule B

commodity numbers, and quantity,

weight, and valuation information for

the merchandise being exported. All

parties to a transaction shall maintain

the necessary and proper

documentation to support the

information reported on the SED. (See

§ 30.11 and 15 CFR Part 762 on

Recordkeeping).

(3) Information on the Shipper’s

Export Declaration (SED). The data

provided on the SED shall be complete,

correct, and shall be based on personal

knowledge of the facts stated or on

information furnished by the parties

involved in the export transaction. All

parties involved in export transactions,

including U.S. and foreign principals

and forwarding agents, should be aware

that invoices and other commercial

documents may not necessarily contain

all the information needed for the

preparation of the SED. The parties

must ensure that all the information

needed for the SED, including correct

export licensing information, is

provided to any forwarding agent for the

purpose of correctly preparing the SED.

The principal may delegate the

responsibility of obtaining the correct

export control information and required

licenses to the forwarding agent, as long

as this delegation of responsibility is

reflected in writing and signed by both

the principal and the forwarding agent.

(4) Authorizing a Forwarding Agent.

Although a U.S. or foreign principal

may designate a forwarding agent, only

the U.S. principal has the authority to

execute a power of attorney or sign the

authorization printed on the SED, or

provide a written authorization

authorizing the forwarding agent to

perform the services required to

facilitate the export transaction. The

failure of the U.S. principal to authorize,

in writing, the forwarding agent to act

on its behalf does not relieve either

party of responsibility for actions taken

in connection with an export

transaction. A power of attorney or

written authorization is most useful

when it specifies the responsibilities of

the parties with particularity, but it

should at least state that the forwarding

agent has authority to act on behalf of

the U.S. principal as its true and lawful

agent for purposes of the export

transaction and in accordance with the

laws and regulations of the United

States. A power of attorney may be

executed by using either the available

formats provided by the Foreign Trade

Division, Bureau of the Census, or the

Office of Export Services, Bureau of

Export Administration, or any other

format or authorization acceptable to the

parties involved. The parties to the

transaction must keep any power of

attorney or written authorization on file

and available for inspection on demand.

In cases where the forwarding agent is

acting on behalf of a U.S. principal and

filing the SED information

electronically, a power of attorney or

other written authorization is

particularly important.

(b) The SED shall be prepared in

English and shall be typewritten or

prepared in ink or other permanent

medium (except indelible pencil). The

use of duplicating processes, as well as

the overprinting of selected items of

information is acceptable.

* * * * *

3. Section 30.7 is proposed to be

amended by revising paragraphs (d)(1),

(d)(2), and (e) to read as follows:

§ 30.7 Information required on Shipper’s

Export Declarations.

* * * * *

(d) Name of exporter and exporter’s

Employer Identification Number (EIN).

The name and address (number, street,

city, state, zip code) of the exporter and

the exporter’s EIN shall be entered

where requested on the Shipper’s

Export Declaration (SED). The EIN shall

be the exporter’s own and not another’s

EIN.

(1) Name of exporter. The exporter

named on the SED must be any person

in the United States; any firm;

government agency, department, or

commission; and any other association

or organization, whether or not

organized for profit, organized under the

laws of the United States, or any

jurisdiction within the United States,

who is also the U.S. principal party in

interest in the export transaction (see

§ 30.4(a)(1)). In addition, a forwarding

agent that is the ‘‘applicant’’ and

‘‘licensee’’ on an export license is

considered the exporter. (On Form 7513,

if an authorized agent is representing

the exporter, the name of the exporter as

defined herein should be shown on the

line labeled ‘‘For account of’’ where

‘‘Principal or seller’’ is indicated below

the line on the form.)

(2) Exporter’s Employer Identification

Number (EIN). An exporter shall report

its own Internal Revenue Service EIN on

the SED. If, and only if, no Internal

Revenue Service EIN has been assigned

to the exporter, the exporter’s SSN,

preceded by the symbol ‘‘SS’’ must be

reported. In situations when a foreign

principal who does not possess an EIN

or SSN operates from within the United

States to facilitate its own export, no

EIN or SSN reporting requirement

applies. Using another’s EIN or SS is

prohibited.

(e) Forwarding Agent. The name and

address of the duly authorized

forwarding agent (if any) of the U.S.

principal shall be recorded where

requested on the SED. (See § 30.4(a)(2)

or 15 CFR Part 772 for a definition of

‘‘forwarding agent’’). In addition, a

forwarding agent that is an ‘‘applicant’’

and ‘‘licensee’’ on an export license is

considered the exporter, and as the

exporter, must enter his/her own name,

address, and EIN or SSN as the exporter.

(See § 30.4(a)(1) and § 30.7(d)). (On

Form 7513, the information as to agent

(if any) should be shown on the line

labeled ‘‘Exporter’’ where ‘‘Actual

shipper or agent’’ is indicated below the

line on the form.)

* * * * *

Dated: July 21, 1998.

James F. Holmes,

Acting Director, Bureau of the Census.

Bureau of the Census—Appendix A

Note: The following appendix will not

appear in the Code of Federal Regulations.

Power of Attorney Export Forwarding Agent

Know all men by these presents, That

llllllllll (Name of Exporter), the

(Exporter) organized and doing business

under the laws of the State or Country of

llllll and having an office and place

of business at llllllllll (Address

of Exporter) hereby authorizes

llllllllll (Forwarding Agent),

the (Forwarding Agent) of

llllllllll (Address of

Forwarding Agent) to act for and on its behalf

as a true and lawful agent and attorney of the

Exporter for and in the name, place, and

stead of the Exporter, from this date, in the

United States either in writing,

electronically, or by other authorized means

to:

Act as Forwarding Agent for Export

Control, Census Reporting, and Customs

purposes. Make, endorse, or sign any

Shipper’s Export Declaration or other

documents or to perform any act which may
41982 Federal Register / Vol. 63, No. 151 /Thursday, August 6, 1998 / Proposed Rules

be required by law or regulation in

connection with the exportation or

transportation of any merchandise shipped or

consigned by or to the Exporter and to

receive or ship any merchandise on behalf of

the Exporter.

The Exporter hereby certifies that all

statements and information contained in the

documentation provided to the Forwarding

Agent relating to exportation are true and

correct. Furthermore, the Exporter

understands that civil and criminal penalties,

may be imposed for making false or

fraudulent statements or for the violation of

any United States laws or regulations on

exportation.

This power of attorney is to remain in full

force and effect until revocation in writing is

duly given by the Exporter and received by

the Forwarding Agent.

In witness whereof, llllllllll

(Full Name of Exporter/Exporting Company)

caused these presents to be sealed and

signed:

Witness: llllllllllllllll

Signature: llllllllllllllll

Capacity: llllllllllllllll

Date: llllllllllllllllll

Bureau of the Census—Appendix B

Note: The following appendix will not

appear in the Code of Federal Regulations.

Authorization to Prepare or Transmit

Shipper’s Export Information (Suggested

Format)

I llllllllll(Exporter),

authorize

llllllllll(Forwarding

Agent), to act as forwarding agent for

export control and customs purposes

and to sign any Shipper’s Export

Declaration (SED), or transmit such

export information electronically, which

may be required by law or regulation in

connection with the exportation or

transportation of any merchandise on

behalf of said Exporter. The Exporter

certifies that necessary and proper

documentation to accurately complete

the SED or transmit the information

electronically is and will be provided to

the said Forwarding Agent. Exporter

further understands that civil and

criminal penalties may be imposed for

making false or fraudulent statements or

for the violation of any United States

laws or regulations on exportation and

agrees to be bound by all statements of

said agent based upon information or

documentation provided by exporter to

said agent.

Signature: lllllllll(Exporter)

Capacity: llllllll

Date: lllllllllll

[FR Doc. 98–21024 Filed 8–5–98; 8:45 am]

BILLING CODE 3510–07–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Chapter I

Concept Release Concerning

Performance Data and Disclosure for

Commodity Trading Advisors and

Commodity Pools

AGENCY: Commodity Futures Trading

Commission.

ACTION: Extension of comment period on

Concept Release.

SUPPLEMENTARY INFORMATION: The

Commodity Futures Trading

Commission issued a Concept Release

concerning performance data and

disclosure for commodity trading

advisors and commodity pools on June

18, 1998 (63 FR 33297) with comments

due by August 17, 1998. In response to

a request from the Managed Funds

Association, the Commission has

determined to extend the comment

period for an additional 30 days, until

September 16, 1998. As indicated in the

release, comments should be submitted

by the specified date to Jean A. Webb,

Secretary, Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21st Street, N.W., Washington, DC

20581. In addition, comments may be

sent by facsimile transmission to

facsimile number (202) 418–5521, or by

electronic mail to secretary@cftc.gov.

DATES: Comments must be received on

or before September 16, 1998.

FOR FURTHER INFORMATION CONTACT:

Paul H. Bjarnason, Jr., Chief Accountant,

(202) 418–5459, electronic mail:

‘‘paulb@cftc.gov;’’ or Robert B.

Wasserman, Special Counsel, (202) 418–

5092, electronic mail:

‘‘rwasserman@cftc.gov,’’ Division of

Trading and Markets, Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street, NW,

Washington, DC 20581.

Issued in Washington, D.C., on this 30th

day of July, 1998, by the Commodity Futures

Trading Commission.

Catherine D. Dixon,

Assistant Secretary of the Commission.

[FR Doc. 98–20928 Filed 8–5–98; 8:45 am]

BILLING CODE 6351–01–M

DEPARTMENT OF ENERGY

Federal Energy Regulatory

Commission

18 CFR Parts 1b, 343, and 385

[Docket No. RM98–13–000]

Complaint Procedures

July 29, 1998.

AGENCY: Federal Energy Regulatory

Commission.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: The Federal Energy

Regulatory Commission (Commission) is

proposing to revise its regulations (Rule

206) governing complaints filed with

the Commission under the Interstate

Commerce Act, the Federal Power Act,

the Natural Gas Act, the Natural Gas

Policy Act, and the Public Utility

Regulatory Policies Act of 1978. The

goals of the proposed revisions are to

encourage and support consensual

resolution of complaints, and to

organize the complaint procedures so

that all complaints are handled in a

timely and fair manner.

The Commission also proposes to

revise certain sections of its procedural

rules applicable to oil pipeline

proceedings, to conform to the proposed

changes in the complaint procedures

regulations. In addition, the

Commission proposes to revise its

alternative dispute resolution

regulations to conform to the changes

made by the Administrative Dispute

Resolution Act of 1996, and to codify its

current Enforcement Hotline procedures

in the rules relating to investigations.

DATES: Comments are due October 5,

1998.

ADDRESSES: Federal Energy Regulatory

Commission, 888 First Street, N.E.,

Washington, D.C. 20426.

FOR FURTHER INFORMATION CONTACT:

David Faerberg, Office of the General

Counsel, Federal Energy Regulatory

Commission, 888 First Street, N.E.,

Washington, D.C. 20426, (202) 208–

1275.

SUPPLEMENTARY INFORMATION: In

addition to publishing the full text of

this document in the Federal Register,

the Commission also provides all

interested persons an opportunity to

inspect or copy the contents of this

document during normal business hours

in the Public Reference Room at 888

First Street, N.E., Room 2A,

Washington, D.C. 20426.

The Commission Issuance Posting

System (CIPS) provides access to the

texts of formal documents issued by the

Commission. CIPS can be accessed via