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###### Department of Commerce

###### Bureau of Industry and Security 

          - 15 CFR Chapter VII 
          - [Docket No. 050923247-5247-01] 

# AGENCY:

Bureau of Industry and Security, Commerce. 

# ACTION:

Request for comments on foreign policy-based export controls. 

# SUMMARY:

                        The Bureau of Industry and Security (BIS) is reviewing the foreign                               ( print page 59679)                            policy-based export controls in the Export Administration Regulations to determine whether they should be modified, rescinded or extended. To help make these determinations, BIS is seeking comments on how existing foreign policy-based export controls have affected exporters and the general public.                     

# DATES:

Comments must be received by November 14, 2005. 

# ADDRESSES:

                        Written comments (three copies) should be sent to Sheila Quarterman, Regulatory Policy Division, Bureau of Industry and Security, Department of Commerce, 14th Street & Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230. Include “FPBEC” in the subject line of the message. Alternatively, comments may be e-mailed to Sheila Quarterman at                         *squarter@bis.doc.gov*. Also include “FPBEC” in the subject line of the message.                     

# FOR FURTHER INFORMATION CONTACT:

                        Joan Roberts, Director, Foreign Policy Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, Telephone: (202) 482-4252. Copies of the current Annual Foreign Policy Report to the Congress are available at                         *http:www.bis.doc.gov/​PoliciesAndRegulations/​05ForPolControls/​index.htm*                         and copies may also be requested by calling the Office of Nonproliferation and Treaty Compliance at the number listed above.                     

# SUPPLEMENTARY INFORMATION:

Foreign policy based controls in the Export Administration Regulations (EAR) are implemented pursuant to section 6 of the Export Administration Act of 1979, as amended. The current foreign policy-based export controls maintained by the Bureau of Industry and Security (BIS) are set forth in the EAR, including in parts 742 (CCL Based Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes and Special Country Controls). These controls apply to a range of countries, items, activities and persons, including: high performance computers (§ 742.12); certain general purpose microprocessors for “military end-uses” and “military end-users” (§ 744.17); significant items (SI): hot section technology for the development, production, or overhaul of commercial aircraft engines, components, and systems (§ 742.14); encryption items (§§ 742.15 and 744.9); crime control and detection commodities (§ 742.7); specially designed implements of torture (§ 742.11); certain firearms included within the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, and Other Related Materials (§ 742.17); regional stability commodities and equipment (§ 742.6); equipment and related technical data used in the design, development, production, or use of certain rocket systems and unmanned air vehicles (§§ 742.5 and 744.3); chemical precursors and biological agents, associated equipment, technical data, and software related to the production of chemical and biological agents (§§ 742.2 and 744.4) and various chemicals included in those controlled pursuant to the Chemical Weapons Convention (§ 742.18); nuclear propulsion (§ 744.5); aircraft and vessels (§ 744.7); embargoed countries (part 746); countries designated as supporters of acts of international terrorism (§§ 742.8, 742.9, 742.10, 742.19, 742.20, 746.2, 746.3, and 746.7); certain entities in Russia (§ 744.10); individual terrorists and terrorist organizations (§§ 744.12, 744.13 and 744.14); certain persons designated by Executive Order 13315 (“Blocking Property of the Former Iraqi Regime, Its Senior Officials and Their Family Members”) (§ 744.18); and certain sanctioned entities (§ 744.20). Attention is also given in this context to the controls on nuclear-related commodities and technology (§§ 742.3 and 744.2), which are, in part, implemented under section 309(c) of the Nuclear Non-Proliferation Act. 

Under the provisions of section 6 of the Export Administration Act of 1979, as amended (EAA), export controls maintained for foreign policy purposes require annual extension. Section 6 of the EAA requires a report to Congress when foreign policy-based export controls are extended. The EAA expired on August 20, 2001. Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 (2002)), which has been extended by successive Presidential Notices, the most recent being that of August 2, 2005 (70 FR 45273, August 5, 2005), continues the EAR and, to the extent permitted by law, the provisions of the EAA, in effect under the International Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000). The Department of Commerce, insofar as appropriate, is following the provisions of section 6 in reviewing foreign policy-based export controls, requesting public comments on such controls, and submitting a report to Congress. 

In January 2005, the Secretary of Commerce, on the recommendation of the Secretary of State, extended for one year all foreign policy-based export controls then in effect. 

To assure maximum public participation in the review process, comments are solicited on the extension or revision of the existing foreign policy-based export controls for another year. Among the criteria considered in determining whether to continue or revise U.S. foreign policy-based export controls are the following: 

1. The likelihood that such controls will achieve the intended foreign policy purpose, in light of other factors, including the availability from other countries of the goods, software or technology proposed for such controls; 

2. Whether the foreign policy purpose of such controls can be achieved through negotiations or other alternative means; 

3. The compatibility of the controls with the foreign policy objectives of the United States and with overall United States policy toward the country subject to the controls; 

4. Whether reaction of other countries to the extension of such controls by the United States is not likely to render the controls ineffective in achieving the intended foreign policy purpose or be counterproductive to United States foreign policy interests; 

5. The comparative benefits to U.S. foreign policy objectives versus the effect of the controls on the export performance of the United States, the competitive position of the United States in the international economy, the international reputation of the United States as a supplier of goods and technology; and 

6. The ability of the United States to enforce the controls effectively. 

BIS is particularly interested in the experience of individual exporters in complying with the proliferation controls, with emphasis on economic impact and specific instances of business lost to foreign competitors. BIS is also interested in industry information relating to the following: 

                    1. Information on the effect of foreign policy-based export controls on sales of U.S. products to third countries (                    *i.e.*, those countries not targeted by sanctions), including the views of foreign purchasers or prospective customers regarding U.S. foreign policy-based export controls.                 

2. Information on controls maintained by U.S. trade partners. For example, to what extent do they have similar controls on goods and technology on a worldwide basis or to specific destinations? 

                    3. Information on licensing policies or practices by our foreign trade partners which are similar to U.S. foreign policy-based export controls, including license review criteria, use of conditions, requirements for pre and post shipment verifications (preferably supported by                           ( print page 59680)                        examples of approvals, denials and foreign regulations).                 

4. Suggestions for revisions to foreign policy-based export controls that would (if there are any differences) bring them more into line with multilateral practice. 

5. Comments or suggestions as to actions that would make multilateral controls more effective. 

6. Information that illustrates the effect of foreign policy-based export controls on the trade or acquisitions by intended targets of the controls. 

7. Data or other information as to the effect of foreign policy-based export controls on overall trade at the level of individual industrial sectors. 

8. Suggestions as to how to measure the effect of foreign policy-based export controls on trade. 

9. Information on the use of foreign policy-based export controls on targeted countries, entities, or individuals. 

BIS is also interested in comments relating generally to the extension or revision of existing foreign policy-based export controls. 

Parties submitting comments are asked to be as specific as possible. All comments received before the close of the comment period will be considered by BIS in reviewing the controls and developing the report to Congress. 

All information relating to the notice will be a matter of public record and will be available for public inspection and copying. In the interest of accuracy and completeness, BIS requires written comments. Oral comments must be followed by written memoranda, which will also be a matter of public record and will be available for public review and copying. 

                    The Office of Administration, Bureau of Industry and Security, U.S. Department of Commerce, displays these public comments on BIS's 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) 482-0637 for assistance.                 

Dated: October 6, 2005. 

Matthew S. Borman, 

Deputy Assistant Secretary for Export Administration. 

[FR Doc. 05-20477 Filed 10-12-05; 8:45 am] 

BILLING CODE 3510-33-P