[Federal Register Volume 70, Number 230 (Thursday, December 1, 2005)]
[Rules and Regulations]
[Pages 72073-72074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-23533]



[[Page 72073]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 748

[Docket No. 050812221-5221-01]
RIN 0694-AD50


Revisions to the Import Certificate Requirements in the Export 
Administration Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security is removing the 
requirement to obtain an Import Certificate in support of an export or 
reexport license when the ultimate consignee or purchaser is a foreign 
government or agency of Bulgaria, Czech Republic, Hungary, Poland, 
Romania, Slovakia, and India. The requirement is being removed for 
Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia 
because of their membership in the North Atlantic Treaty Organization 
(NATO) and their commitment to export controls, as is reflected by 
their membership in multiple export control regimes, such as the 
Wassenaar Arrangement, the Australia Group, the Missile Technology 
Control Regime, and Nuclear Suppliers Group. This requirement is being 
removed for India because of the actions it has taken under the U.S.-
India Next Steps in Strategic Partnership.

EFFECTIVE DATE: December 1, 2005.

ADDRESSES: Although this is a final rule, comments are welcome and 
should be addressed to Timothy Mooney, Office of Exporter Services, 
Bureau of Industry and Security, Department of Commerce, P.O. Box 273, 
Washington, DC 20044, E-mailed to: <a href="/cdn-cgi/l/email-protection#bcc8d1d3d3d2d9c5fcded5cf92d8d3df92dbd3ca"><span class="__cf_email__" data-cfemail="d2a6bfbdbdbcb7ab92b0bba1fcb6bdb1fcb5bda4">[email protected]</span></a>, or faxed to 
202-482-3355.
    Comments regarding the collections of information associated with 
this rule, including suggestions for reducing the burden, should be 
sent to OMB Desk Officer, New Executive Office Building, Washington, DC 
20503--Attention: David Rostker; and to the Office of Administration, 
Bureau of Industry and Security, Department of Commerce, 14th and 
Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
Exporter Services, Bureau of Industry and Security, Telephone: (202) 
482-0436.

SUPPLEMENTARY INFORMATION:

Background

    The import certificate requirement has its foundation in the 
Coordinating Committee on Multilateral Export Controls (COCOM). COCOM 
is a former multilateral organization that cooperated in restricting 
strategic exports (conventional weapons and dual use items that are 
controlled for national security reasons on the Commerce Control List) 
to Eastern Bloc (communist-governed countries) during the Cold War era. 
Although COCOM was officially disbanded on March 31, 1994, the import 
certificate remains in use by the United States and many other 
countries.
    U.S. exporters are required by Sec. Sec.  748.9 and 748.10 of the 
Export Administration Regulations (EAR) to obtain and retain Import 
Certificates for the export of items controlled for national security 
(NS) reasons on the Commerce Control List, when a license is required. 
This import certificate requirement applies to licensed exports to 29 
Wassenaar Arrangement members and 7 additional countries (India, China, 
Hong Kong, Liechtenstein, Pakistan, Singapore and Taiwan). An Import 
Certificate is a certification by the issuing government that the 
importer has undertaken to import the items stated on the import 
certificate, that the items will not be diverted or reexported without 
notification or authorization of the importing government, and, 
depending on the country, the importer will notify or seek 
authorization from the importing government if any of the facts of the 
import certificate change. For some countries, the importer also 
certifies that he or she will provide, if asked, verification that 
possession of the item was taken. In general, there is an exemption 
from obtaining an Import Certificate when the ultimate consignee or 
purchaser is a government agency. However, prior to publication of this 
rule, certain countries were excluded from this exemption (see Sec.  
748.9(a)(2)).
    This rule eliminates the requirement for Import Certificates set 
forth in section 748.9(a)(2) when the ultimate consignee or purchaser 
is a government entity in Bulgaria, the Czech Republic, Hungary, 
Poland, Romania, and Slovakia. These countries are members of North 
Atlantic Treaty Organization (NATO), and have taken steps to implement 
effective national security export control regimes, as demonstrated by 
their membership in the Wassenaar Arrangement.
    In addition, in 2004, the United States committed to reviewing the 
Import Certificate requirement for India, as a part of the U.S.-India 
High Technology Group (HTCG) discussions. The HTCG was formed in 2002 
to identify barriers to legitimate high technology trade. In the course 
of these discussions, the Import Certificate requirement was identified 
as a non-tariff barrier to expanded trade. In light of the actions 
taken by the Government of India with regard to controlled goods or 
technologies it imports from the United States pursuant to the U.S.-
India Next Steps in Strategic Partnership, this rule removes the Import 
Certificate requirement for exports to Indian Government entities under 
section 748.9(a)(2).
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as extended by the Notice of August 2, 2005, 
70 FR 45273 (August 5, 2005), has continued the Export Administration 
Regulations in effect under the International Emergency Economic Powers 
Act.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. 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 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. This rule 
involves a collection of information subject to the PRA. This 
collection has been approved by OMB under control number 0694-0093, 
Import Certificates, End-User Certificates, and Delivery Verification 
Procedures,'' which carries a burden hour estimate of 15 to 30 minutes 
per response. This rule is anticipated to have a slight decrease on the 
number of licenses that require Import Certificates and not to alter 
the range of total burden hours associated with this control number. 
Send comments regarding these burden estimates or any other aspect of 
these collections of information, including suggestions for reducing 
the burden, to OMB Desk Officer, New Executive Office Building, 
Washington, DC 20503; and to the Office of Administration, Bureau of 
Industry and Security, Department of Commerce, 14th and Pennsylvania 
Avenue, NW., Room 6883, Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.

[[Page 72074]]

    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military and foreign affairs 
function of the United States (5 U.S.C. 553(a)(1)). Further, no other 
law requires that a notice of proposed rulemaking and an opportunity 
for public comment be given for this final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under the Administrative Procedure 
Act or by any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, 
this regulation is issued in final form. Although there is no formal 
comment period, public comments on this regulation are welcome on a 
continuing basis. Comments should be submitted to Timothy Mooney, 
Office of Exporter Services, Bureau of Industry and Security, 
Department of Commerce, P.O. Box 273, Washington, DC 20044.

List of Subjects in 15 CFR Part 748

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.


0
Accordingly, part 748 of the Export Administration Regulations (15 CFR 
parts 730-799) are amended as follows:

PART 748--[AMENDED]

0
1. The authority citation for 15 CFR part 748 continues to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 2, 2005, 70 FR 
45273 (August 5, 2005).


0
2. Section 748.9 is amended by revising paragraph (a)(2) to read as 
follows:


Sec.  748.9  Support Documents for License Applications.

    (a) * * *
    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies), other than the government of the 
People's Republic of China. To determine whether the parties to your 
transaction meet the definition of ``government agency'' refer to the 
definition contained in part 772 of the EAR. Remember, if either the 
ultimate consignee or purchaser is not a foreign government or foreign 
government agency, a statement is required from the nongovernmental 
party.
* * * * *

    Dated: November 28, 2005.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 05-23533 Filed 11-30-05; 8:45 am]
BILLING CODE 3510-33-P


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