Federal Register / Vol. 66, No. 132 / Tuesday, July 10, 2001 / Rules and Regulations 35899

Dated: June 27, 2001.

Stephen F. Sundlof,

Director, Center for Veterinary Medicine.

[FR Doc. 01–17104 Filed 7–9–01; 8:45 am]

BILLING CODE 4160–01–S

DEPARTMENT OF STATE

Bureau of Political-Military Affairs

22 CFR Parts 124, 125, and 126

[Public Notice 3710]

Amendment to the International Traffic

in Arms Regulation: Sweden

AGENCY: Department of State.

ACTION: Final rule.

SUMMARY: This rule amends the

International Traffic In ArmsRegulations

to extend a recent reform of the U.S.

defense trade export control system,

originally intended to benefitNATO,

Australia and Japan, to Sweden. The

recent reforms were intended to

streamline the U.S. defense export

control licensing process and forge

closer industrial linkage between the

U.S. and allied defense suppliers. Part

124 of the International Traffic In Arms

Regulations is now being amended to

permit U.S. companies to perform, using

an exemption, certain maintenance and

maintenance training for US-origin

defense articles in the inventory of

Sweden. Part 125 is amended to provide

authorization, without a license, to

transfer certain technical data to support

procurement of defense articles from

defense firms in Sweden for use by the

Department of Defense. In addition,

under Part 126, the four comprehensive

export authorizations for use in

circumstances where the full parameters

of a commercial export endeavor,

including the needed defense exports,

can be well anticipated and described in

advance, is now available for Sweden.

EFFECTIVE DATE: July 10, 2001.

FOR FURTHER INFORMATION CONTACT:

William J. Lowell,Director, Office of

Defense Trade Controls, Bureau of

Political-Military Affairs, Department of

State, ATTN: Regulatory Change

Sweden at (202) 663–2861 or FAX (202)

261–8264.

SUPPLEMENTARY INFORMATION: On July

21, 2000, the Department published

regulations to implement, effective

September 1, 2000, the U.S. Defense

Trade Security Initiative (DTSI)

announced at the NATO Ministerial in

Florence, Italy on May 24, 2000 (65 FR

45282). Those reforms of the U.S.

defense trade export control system

were made available to NATO Allies,

Japan and Australia. Those initiatives

were intended to improve the efficiency

and competition in defense markets

with NATO allies, Japan and Australia.

This particular amendment to the

International Traffic in Arms

Regulations would make those reforms

available with respect to Sweden. These

reforms are intended to streamline the

U.S. defense export control licensing

process and forge closer industrial

linkage between the U.S. and allied

defense suppliers.

Section 124.2(c) is amended to add

Sweden. Paragraph (c) permits U.S.

companies to provide, without a license,

defense services necessary to perform

maintenance on and maintenance

training for US-origin equipment in the

inventory of NATO, NATO countries,

Australia, Japan, and Sweden, provided

the maintenance and maintenance

training does not result in any

modification, enhancement, upgrade or

other form of alteration or improvement

that enhances the performance or

capability of the defense article. Also,

the export must not include the transfer

of certain technologies; such as, design

methodology, engineering analysis, and

manufacturing know-how. Section

125.4(c) is amended to add Sweden.

Paragraph (c) permits the transfer to

NATO countries, Australia, Japan, and

Sweden, of technical data necessary to

support offshore procurement of defense

articles for use by the Department of

Defense. In addition, section 126.14 is

amended to include Sweden in the four

comprehensive export authorizations

developed to limit the number of

individual export approvals necessary

to authorize the export of defense

articles to NATO countries, Australia,

Japan, and Sweden, which will

encourage government-to-government

cooperative research and development,

support joint ventures and teaming

arrangements and facilitate a U.S.

company’s role in a cooperative project

when covered by a government-togovernment Memorandum of

Understanding (MOU).

In implementing these initiatives,

parts 124, 125, and 126 are being

amended.

This amendment involves a foreign

affairs function of the United States and

therefore, is not subject to the

procedures required by 5 U.S.C. 553 and

554. It is exempt from review under

Executive Order 12866 but has been

reviewed internally by the Department

of State to ensure consistency with the

purposes thereof. This rule does not

require analysis under the Regulatory

Flexibility Act or the Unfunded

Mandates Reform Act. It has been found

not to be a major rule within the

meaning of the Small Business

Regulatory Enforcement Act of 1966. It

will not have substantial direct effects

on the States, the relationship between

the National Government and the States,

or on the distribution of power and

responsibilities among the various

levels of government. Therefore, in

accordance with section 6 of Executive

Order 13132, it is determined that this

rule does not have sufficient federalism

implications to warrant application of

Executive Orders 12372 and 13123.

However, interested parties are invited

to submit written comments to the

Department of State, Office of Defense

Trade Controls, ATTN: Regulatory

Change, Sweden, 13th Floor, H1304,

2401 E Street, NW., Washington,

DC20037. Such persons must be so

registered with the Department of

State’s Office of Defense Trade Controls

(DTC) pursuant to the registration

requirements of section 38 of the Arms

Export Control Act.

List of Subjects

22 CFR Part 124

Arms and munitions, Exports,

Technical assistance.

22 CFR Part 125

Arms and munitions, Classified

information, Exports.

22 CFR Part 126

Arms and munitions, Exports.

Accordingly, for the reasons set forth

above, Title 22, Chapter I, Subchapter

M, Parts 124, 125 and 126, are amended

as follows:

PART 124—AGREEMENTS, OFFSHORE PROCUREMENT AND OTHER

DEFENSE SERVICES

1. The authority citation for part 124

continues to read as follows:

Authority: Sec. 2, 38, and 71, Pub. L. 90–

629, 90 Stat. 744 (22 U.S.C. 2752, 2778,

2797); E.O. 11958, 42 FR 4311, 3 CFR 1977

Comp. p. 79; 22 U.S.C. 2658; Pub L. 105–261.

2. Section 124.2 is amended by

revising paragraphs (c) introductory

text, (c)(1), and (c)(6) to read as follows:

§ 124.2 Exemptions for training and

military service.

* * * * *

(c) NATO countries, Australia, Japan,

and Sweden, in addition to the basic

maintenance training exemption

provided in § 124.2(a) and basic

maintenance information exemption in

§ 125.4(b)(5) of this subchapter, no

technical assistance agreement is

required for maintenance training or the

performance of maintenance, including

35900 Federal Register / Vol. 66, No. 132 / Tuesday, July 10, 2001 / Rules and Regulations

the export of supporting technical data,

when the following criteria can be met:

(1) Defense services are for

unclassified U.S.-origin defense articles

lawfully exported or authorized for

export and owned or operated by and in

the inventory of NATO or the Federal

Governments of NATO countries,

Australia, Japan or Sweden.

* * * * *

(6) Eligibility criteria for foreign

persons. Foreign persons eligible to

receive technical data or maintenance

training under this exemption are

limited to nationals of the NATO

countries, Australia, Japan, or Sweden.

PART 125—LICENSES FOR THE

EXPORT OF TECHNICAL DATA AND

CLASSIFIED DEFENSE ARTICLES

3. The authority citation for part 125

continues to read as follows:

Authority: Sections 2 and 38, Pub. L. 90–

629, 90 Stat. 744 (22 U.S.C. 2752, 2778); E.O.

11958, 42 FR 4311, 3 CFR, 1977 Comp. p.79;

22 U.S.C. 2658.

4. Section 125.4 is amended by

revising paragraph (c) introductory text

to read as follows:

§ 125.4 Exemptions of general

applicability.

* * * * *

(c) Defense services and related

unclassified technical data are exempt

from the licensing requirements of this

subchapter, to nationals of NATO

countries, Australia, Japan, and Sweden,

for the purposes of responding to a

written request from the Department of

Defense for a quote or bid proposal.

Such exports must be pursuant to an

official written request or directive from

an authorized official of the U.S.

Department of Defense. The defense

services and technical data are limited

to paragraphs (c)(1), (c)(2), and (c)(3) of

this section and must not include

paragraphs (c)(4), (c)(5), and (c)(6) of

this section which follow:

* * * * *

PART 126—GENERAL POLICIES AND

PROVISIONS

5. The authority citation for part 126

continues to reads as follows:

Authority: Secs. 2, 38, 40, 42, and 71, Pub.

L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778,

2780, 2791, and 2797); 22 U.S.C. 2778; E.O.

11958, 42 FR 4311; 3 CFR, 1977 Comp., p.79;

22 U.S.C. 2658; 22 U.S.C. 287c; E.O. 12918,

59 FR 28205, 3 CFR 1994 Comp., p 899.

6. Section 126.14 is amended by

revising paragraphs (a) introductory

text, (a)(1), (a)(2), (a)(3)(i), and (a)(4) to

read as follows:

§ 126.14 Special comprehensive export

authorizations for NATO, Australia, Japan,

and Sweden.

(a) With respect to NATO members,

Australia, Japan, and Sweden, the Office

of Defense Trade Controls may provide

the comprehensive authorizations

described in paragraphs (a) and (b) of

this section for circumstances where the

full parameters of a commercial export

endeavor including the needed defense

exports can be well anticipated and

described in advance, thereby making

use of such comprehensive

authorizations appropriate.

(1) Major Project Authorization. With

respect to NATO members, Australia,

Japan, and Sweden, the Office of

Defense Trade Controls may provide

comprehensive authorizations for well

circumscribed commercially developed

‘‘major projects’’, where a principal

registered U.S. exporter/prime

contractor identifies in advance the

broad parameters of a commercial

project including defense exports

needed, other participants (e.g.,

exporters with whom they have

‘‘teamed up’’, subcontractors), and

foreign government end users. Projects

eligible for such authorization may

include a commercial export of a major

weapons system for a foreign

government involving, for example,

multiple U.S. suppliers under a

commercial teaming agreement to

design, develop and manufacture

defense articles to meet a foreign

government’s requirements. U.S.

exporters seeking such authorization

must provide detailed information

concerning the scope of the project,

including other exporters, U.S.

subcontractors, and planned exports

(including re-exports) of defense

articles, defense services, and technical

data, and meet the other requirements

set forth in paragraph (b) of this section.

(2) Major Program Authorization.

With respect to NATO members,

Australia, Japan, and Sweden, the Office

of Defense Trade Controls may provide

comprehensive authorizations for well

circumscribed commercially developed

‘‘major program’’. This variant would be

available where a single registered U.S.

exporter defines in advance the

parameters of a broad commercial

program for which the registrant will be

providing all phases of the necessary

support (including the needed

hardware, tech data, defense services,

development, manufacturing, and

logistic support). U.S. exporters seeking

such authorization must provide

detailed information concerning the

scope of the program, including planned

exports (including re-exports) of defense

articles, defense services, and technical

data, and meet the other requirements

set forth in paragraph (b) of this section.

(3)(i) Global Project Authorization.

With respect to NATO members,

Australia, Japan, and Sweden, the Office

of Defense Trade Controls may provide

a comprehensive ‘‘Global Project

Authorization’’ to registered U.S.

exporters for exports of defense articles,

technical data or defense services in

support of government to government

cooperative projects (covering research

and development or production) with

one of these countries undertaken

pursuant to an agreement between the

USG and the government of such

country, or a memorandum of

understanding between the Department

of Defense and the country’s Ministry of

Defense.

* * * * *

(4) Technical Data Supporting an

Acquisition, Teaming Arrangement,

Merger, Joint Venture Authorization.

With respect to NATO member

countries, Australia, Japan, and Sweden,

the Office of Defense Trade Controls

may provide a registered U.S. defense

company a comprehensive

authorization to export technical data in

support of the U.S. exporter’s

consideration of entering into a teaming

arrangement, joint venture, merger,

acquisition, or similar arrangement with

prospective foreign partners.

Specifically the authorization is

designed to permit the export of a

broadly defined set of technical data to

qualifying well established foreign

defense firms in NATO countries,

Australia, Japan, or Sweden in order to

better facilitate a sufficiently in depth

assessment of the benefits, opportunities

and other relevant considerations

presented by such prospective

arrangements. U.S exporters seeking

such authorization must provide

detailed information concerning the

arrangement, joint venture, merger or

acquisition, including any planned

exports of defense articles, defense

services, and technical data, and meet

the other requirements set forth in

paragraph (b) of this section.

* * * * *

Dated: June 12, 2001.

John R. Bolton,

Under Secretary, Arms Control and

International Security, Department of State.

[FR Doc. 01–16011 Filed 7–9–01; 8:45 am]

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