[Federal Register Volume 73, Number 163 (Thursday, August 21, 2008)]
[Rules and Regulations]
[Pages 49323-49331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18852]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 744, 748, 750, 754, 764 and 772

[Docket No. 0612242559-8545-02]
RIN 0694-AD94


Mandatory Electronic Filing of Export and Reexport License 
Applications, Classification Requests, Encryption Review Requests, and 
License Exception AGR Notifications

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This rule requires that export and reexport license 
applications, classification requests, encryption review requests, 
License Exception AGR notifications and related documents be submitted 
to the Bureau of Industry and Security (BIS) via its Simplified Network 
Application Process (SNAP-R) system. This requirement does not apply to 
applications for Special Comprehensive Licenses or in certain 
situations in which BIS authorizes paper submissions.

DATES: Effective date October 20, 2008.

FOR FURTHER INFORMATION CONTACT: For information about this rule 
contact William Arvin, e-mail <a href="/cdn-cgi/l/email-protection#295e485b5f4047694b405a074d464a074e465f"><span class="__cf_email__" data-cfemail="afd8ceddd9c6c1efcdc6dc81cbc0cc81c8c0d9">[email protected]</span></a> or tel. 202-482-2440. 
For information about registering for or using the SNAP-R system 
contact Lisa Williams at 202-482-2148.

SUPPLEMENTARY INFORMATION: 

Background

    BIS administers a system of export and reexport controls in 
accordance with the Export Administration Regulations (EAR). In doing 
so, BIS requires that parties wishing to engage in certain transactions 
apply for licenses, submit encryption review requests, or submit 
certain notifications to BIS. BIS also reviews, upon request, 
specifications of various items and determines their proper 
classification under the EAR. Currently, members of the public submit 
these applications, requests and notifications to BIS in one of three 
ways: via SNAP-R, via BIS's Electronic License Application Information 
Network (ELAIN), or via the paper BIS Multipurpose Application Form BIS 
748-P and its two appendices, the BIS 748-P A (item appendix) and the 
BIS 748-P B (end user appendix). In many instances, BIS needs 
additional documents to act on the submission. For documents that 
relate to paper submissions, the documents can be mailed or delivered 
to BIS with the BIS 748-P form. For submissions made electronically via 
ELAIN, the documents must be sent to BIS separately and matched up with 
the applications when they arrive.
    In 2006, BIS replaced its then existing Simplified Network 
Application Processing system (SNAP) with an improved system referred 
to as ``SNAP Redesign (SNAP-R)''. The improvements include the ability 
to include documents related to a submission in the form of PDF 
(portable document format) files as ``attachments'' to the submission. 
Other improvements include a feature that allows BIS personnel to 
securely request additional information from the submitting party and 
for the party to submit that information in a manner that ties the 
chain of communication to the submission.
    BIS believes that use of SNAP-R will reduce processing times and 
simplify compliance with and administration of export controls. SNAP-R 
provides not only improved efficiency in submission and processing, but 
improved end-user security through rights management and an updated 
application and security infrastructure.
    Therefore, beginning October 20, 2008 all export and reexport 
license applications (other than Special Comprehensive License and 
Special Iraq Reconstruction License applications), classification 
requests, encryption review requests, License Exception AGR 
notifications, and ``attached'' related documents must be submitted to 
BIS via its Simplified Network Application Process Redesign (SNAP-R) 
system unless BIS authorizes paper submissions. This rule also sets 
forth the criteria under which BIS authorizes paper submissions.

Changes Made by This Rule

    The changes that this rule makes center on part 748 of the EAR, 
which sets forth the principal procedures governing the submission of 
the applications, review requests and notifications affected by this 
rule. The changes are in Sec.  748.1 ``General provisions,'' Sec.  
748.3 ``Classification requests, advisory opinions, and encryption 
review requests,'' and in Sec.  748.6 ``General instructions for 
license applications.'' The rule also makes conforming changes to a 
number of EAR provisions that currently employ language related to the 
paper forms.

Substantive Changes

    Section 748.1 is revised to emphasize electronic filing over paper 
and to set forth the basic requirement that license

[[Page 49324]]

applications (other than Special Comprehensive License or Special Iraq 
Reconstruction License applications), encryption review requests, 
License Exception AGR notifications, and classification requests and 
any accompanying documents must be submitted via SNAP-R unless BIS 
authorizes submission via paper. Revised section 748.1 continues to 
specify that for paper submissions, only original BIS paper forms may 
be used and that reproductions or facsimiles are not acceptable.
    Section 748.1 also sets forth the criteria under which BIS will 
authorize paper submissions. Those criteria are: (1) BIS has received 
no more than one submission from the party in the twelve months 
immediately preceding the current submission, i.e., the combined total 
of the party's license applications (other than Special Comprehensive 
Licenses), encryption review requests, License Exception AGR 
notifications, and classification requests could not exceed one; (2) 
the party does not have access to the Internet; (3) BIS has rejected 
the party's electronic filing registration or revoked its eligibility 
to file electronically; (4) BIS has requested that the party submit on 
paper for a particular transaction; or (5) BIS has determined that 
urgency, a need to implement government policy or a circumstance 
outside the submitting party's control justifies allowing paper 
submissions on a particular instance.
    Parties who wish to submit on paper must submit the BIS Form 748-P. 
In addition to the information relevant to the substance of the 
submission itself, the submitter must include, either on the form or as 
an attachment, a statement explaining which of the five foregoing 
criteria justifies a paper submission and provide supporting 
information. If BIS agrees that at least one of the criteria is met, it 
will process the submission in accordance with its regular procedures. 
If BIS finds that none of the criteria asserted by the submitter are 
met, it will return the form without action and inform the submitter of 
the reason for rejecting the request to file on paper. A decision by 
BIS to reject the request to file on paper is subject to appeal under 
part 756 of the EAR. This rule also moves the address for paper 
submissions from Sec.  748.2 to Sec.  748.1.
    Section 748.3 is revised to replace instructions about where and 
how to submit classification requests, with a reference to the 
procedures in Sec.  748.1 and to require that documents submitted with 
the classification request be submitted in PDF format as attachments to 
the SNAP-R submission unless BIS had authorized a paper submission 
pursuant to Sec.  748.1 of the EAR. Section 748.3 continues to state 
requirements about the kinds of information that must be included in 
classification requests.
    Section 748.6 is revised to require that any documents submitted in 
support of any license application submitted via SNAP-R be submitted 
via the SNAP-R system as PDF (portable document format) files. Section 
748.6 also is revised to remove the statement that application control 
numbers are preprinted on the paper forms. The paper forms will 
continue to bear a preprinted application control number, but for 
electronic submissions, application control numbers are communicated to 
the submitter electronically once BIS accepts the submission.

Conforming Changes

    Prior to publication of this rule, a number of EAR provisions 
stated that a particular submission must be made on the BIS 748-P paper 
form or its electronic equivalent. If such a provision referred to a 
classification request or encryption review request, this rule revises 
that provision to state that the submission must be made in accordance 
with Sec. Sec.  748.1 and 748.3. If such a provision referred to a 
license application (other than a Special Comprehensive License 
application or Special Iraq Reconstruction License), this rule also 
would revise that provision to state that the submission must be in 
accordance with Sec. Sec.  748.1, 748.4 and 748.6. The changes 
described in this paragraph are to be made in:
    <bullet> Sec.  740.8(b)(2), relating to classification requests 
pursuant to License Exception ``Key Management Infrastructure (KMI)'';
    <bullet> Sec.  740.9(a)(4)(i) and (iii), relating to authorizations 
to sell or dispose of or to retain abroad more than one year items 
exported under License Exception ``Temporary imports, exports and 
reexports (TMP)'';
    <bullet> Sec.  740.12(a)(2)(iii)(C), relating to applications to 
exceed the frequency limits for individual gift parcels under License 
Exception ``Gift parcels and humanitarian donations (GFT)'';
    <bullet> Sec.  740.15, footnote number 4, relating to certain 
exports to U.S. or Canadian vessels;
    <bullet> Sec.  740.17(d)(1), relating to the submission of 
encryption review requests under License Exception ``Encryption 
commodities and software (ENC)'';
    <bullet> Sec.  742.15(b)(2)(i), relating to submission of review 
requests for certain encryption items;
    <bullet> Supplement No. 6 to part 742, relating to submission of 
review requests for certain ``mass market'' encryption commodities and 
software;
    <bullet> Sec.  754.2(g)(1), relating to applications for export of 
certain California crude oil;
    <bullet> Sec.  754.4(d)(1), relating to applications to export 
unprocessed Western Red Cedar; and
    <bullet> Sec.  764.7(b)(2)(i), relating to applications to take 
certain actions with respect to certain items in Libya.
    This rule replaces the requirement to use the form BIS 748-P in 
Sec.  740.18(c)(2) when submitting notice to the government in advance 
of shipments under License Exception ``Agricultural Commodities (AGR)'' 
with a requirement to submit such notices in accordance with Sec.  
748.1 of the EAR.
    This rule also replaces references to the BIS 748-P Multipurpose 
Application Form with the word ``application'' in provisions that 
describe certain information that must be submitted with particular 
types of license applications. This change emphasizes that the same 
information is required regardless of whether an application is 
submitted on paper or electronically. The change described in this 
paragraph is made in:
    <bullet> Sec.  742.2(e)(1), relating to certain license 
requirements imposed for chemical and biological weapons proliferation 
concerns;
    <bullet> Sec.  744.21(d), relating to applications to export or 
reexport certain items to known military end-uses in the People's 
Republic of China;
    <bullet> Sec.  748.4(b)(1), relating to disclosure of parties on a 
license application;
    <bullet> Sec.  748.4(b)(2)(ii), relating to written authority of 
certain agents to submit on a principal's behalf;
    <bullet> Sec.  748.5 introductory paragraph and paragraph (b), 
relating to parties on the application;
    <bullet> Sec.  754.4(d)(2) and (d)(3), relating to applications for 
export of unprocessed western red cedar;
    <bullet> Sec.  754.5(b)(2), relating to applications to export 
horses by sea;
    <bullet> Supplement No. 2 to Part 754, relating to applications for 
export of western red cedar: and
    <bullet> Sec.  772.1, definition of ``Other party authorized to 
receive license.''
    This rule removes the reference to date time stamping in Sec.  
754.2(g)(5)(i) by BIS of applications to export crude oil because that 
process occurs only with paper applications. However, the rule retains 
the policy in Sec.  754.2(g)(5)(i) of issuing licenses for approved 
applications in the order in which the applications are received.
    This rule also changes the references to Sec.  748.2(c) as a source 
of BIS's address

[[Page 49325]]

in Sec. Sec.  748.3, 750.7(h)(3), 750.8(b) and 750.9(a) to a reference 
to Sec.  748.1(h)(3) because the rule removes Sec.  748.2(c) and 
includes the address in Sec.  748.1(h)(3).

Public Comments

Comments Related to Lack of Direct Data Interface Between SNAP-R and 
Corporate Databases

    BIS received comments on the proposed rule from eleven commenters. 
Eight commenters stated that SNAP-R should be modified to include 
capability for direct data transfer from corporate databases. Five of 
these eight stated that SNAP-R should not be made mandatory until it 
includes such a function. Two of the eight stated that a direct data 
interface was needed but did not state that they were opposed to making 
use of SNAP-R mandatory without such an interface. One of the eight 
supported making use of SNAP-R mandatory, but noted the need for a 
direct data interface. Four of the eight commenters stated that 
``rather than terminate ELAIN replace it with a program interface that 
incorporates SNAP-R data formats and document attachment 
capabilities.''
    The eight commenters who addressed direct data transfer offered the 
following points in support of the need for a direct data interface. 
Not all of the eight commenters offered all of these points and some of 
these points were offered by more than one commenter.
    <bullet> Lack of a direct interface forces users to go outside 
corporate computer systems that provide internal compliance checks, a 
practice that creates a compliance risk because it reduces management's 
ability to see the information and removes a basis for analysis and 
audits of best practices throughout the corporation.
    <bullet> Manual data entry is a potential source of errors and is 
inefficient and costly. One commenter estimated that it will have to 
spend $50,000 in additional labor costs to do data entry in SNAP-R.
    <bullet> Other government programs that require submission of 
export related information to the government have direct data 
interfaces. Commenters specifically mentioned the D-TRADE (used for 
State Department export license applications) and the Automated Export 
System (used to collect shippers' export data).
    <bullet> The application of current Internet technologies 
(including file transfer and XML data formats) to parallel the SNAP-R 
Web site make the development of a SNAP-R automated interface a very 
modest information systems project.
    <bullet> Allowing direct data interface would allow large users to 
employ their own business compliance rules in the application 
submission process. In some cases, these internal rules might be 
stricter than the minimum EAR requirements.
    <bullet> Allowing direct data interface would allow large users to 
incorporate automated denied persons list screening, automated status 
checking, message handling and notifications into the industry side of 
the system.
    <bullet> Although BIS addressed the impact of the rule on small 
entities, it did not address the fact that a large percentage of 
submissions come from a small number of submitters and the burden that 
manual data entry would impose on them.
    BIS acknowledges the convenience and potential cost savings that 
can be provided to the public by a direct data transmission from the 
applicants' computer systems to BIS. However, BIS must also consider 
the security requirements of its computer systems. These security needs 
are based on both Federal information system security requirements and 
a statutory provision that precludes BIS from disclosing certain 
information in those systems, except as provided by law. As a 
government agency, BIS must comply with these requirements in a manner 
that treats similarly situated parties in a similar manner.
    The data provided to BIS through the submissions affected by this 
rule can include sensitive international trade information about 
pricing, technical design or the identity of potential customers. The 
systems that contain the data are high security impact systems in 
accordance with Federal Information Processing Standards Publication 
199, Standards for Security Categorization of Federal Information 
Systems and the National Institute of Standards and Technology Special 
Publication (SP) 800-60, Guide for Mapping Types of Information and 
Information Systems to Security Categories. These standards did not 
exist when ELAIN was created in the 1980s.
    In addition to the need to comply with government standards for 
high security impact systems, BIS is obligated to implement the 
provisions of Section 12(c) of the Export Administration Act of 1979, 
as amended (EAA). Section 12(c) of the EAA prohibits the release of 
information that was obtained for the purpose of consideration of or 
that concerns license applications without a determination that the 
release of such information is in the national interest. To meet this 
obligation, BIS, among other things, makes efforts to guard against 
unauthorized access to its computer systems that contain information 
that is protected by Section 12(c) of the EAA.\1\
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    \1\ Although the EAA expired in August 2001, the President has 
ordered that ``the provisions of the [EAA] and the provisions for 
administration of the [EAA] shall be carried out * * * so as to 
continue in full force and effect * * * the export control system.'' 
Executive Order 13222 (Aug. 17, 2001). The Department has 
determined, and federal courts have agreed, that this order has the 
effect of preserving the confidentiality requirements of Section 
12(c). See e.g. Wisconsin Project on Nuclear Arms Control v. U.S. 
Dept. of Commerce, 317 F.3d 275 (DC Cir. 2003).
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    Meeting these obligations poses ever increasing challenges for BIS. 
Over the last decade, the number and sophistication of cyber attacks on 
government systems has increased. BIS is a confirmed target of these 
attacks and in order to prevent the loss or compromise of the data that 
it is obligated to protect, BIS has adopted stringent measures.
    BIS requires extraordinary IT Security measures due to its: (1) 
International trade data which per FIPS-199 referenced above, carries a 
``high'' security impact level, and (2) confirmation by the Department 
of Homeland Security (DHS) U.S. Computer Emergency Response Team 
(USCERT) that BIS is a target of international actors engaging in broad 
federal level cyber espionage. The former requires data security 
exceeding even the requirements of personal privacy information; the 
latter requires security infrastructure over and above that provided by 
commercially available products.
    The general nature of the cyber-espionage threat is that BIS has 
been and continues to be the target of attempts by external actors to 
exfiltrate data. The history and pattern of these attacks support the 
premise that their frequency and sophistication are likely to increase. 
BIS bases its information technology security planning upon that 
premise.
    The most effective BIS response to the cyber-espionage threat is to 
implement a compartmentalized network and security infrastructure to 
secure mission critical export control system applications and data 
from foreign intrusions. Physical and logical segregation is the same 
concept applied to classified systems and data protection. BIS has 
implemented this approach for the same reasons that it is applied in 
classified environments--the cyber espionage vulnerabilities exceed the 
protections provided by commercial products in a non-compartmentalized 
environment. As confirmed with DHS and other independent federal and

[[Page 49326]]

private security experts, a compartmentalized system is the only 
approach which will, with a high degree of certainty, yield results. 
Selective targeted IT security measures have not been and are not 
effective because of the breadth, resources, sophistication and nature 
of the attack methods. For example, the BIS compartmentalization 
includes, but is not limited to, export control system segregation from 
general internet access, and particular e-mail message formats and 
attachments. This not only allows BIS to continue to mitigate, with 
100% effectiveness, the risk of BIS systems losing sensitive data, but 
to ensure its systems are not used to launch an attack against the 
exporter community or other agencies.
    Finally, this security posture must be implemented with the 
principle that any direct computer interface standard to be implemented 
for the purpose of submitting data to BIS should not arbitrarily 
exclude any party.
    With these considerations in mind, BIS has assessed options for 
accomplishing the goals of the commenters without breaching its 
security and fairness obligations. This examination included, but was 
not limited to, review of procedures used by the other agencies 
referenced by the commenters.
    For example, one method to achieve the commenters' objectives would 
be to allow direct data interface between private sector computer 
systems and the BIS licensing systems. BIS rejected this alternative. 
Allowing a system of unknown security standards to interface directly 
with a high impact security system is, in BIS's view, inconsistent with 
the security controls specified in National Institute of Standards and 
Technology publication 800-53A, Guide for Assessing the Security 
Controls in Federal Information Systems. This position is reinforced by 
the information provided by Federal and private security sources, and 
the knowledge BIS has acquired in responding to previous attempts by 
outside parties to gain access to data in its information systems. BIS 
has determined that this method would pose an unacceptable risk of 
compromise and unauthorized system and data access.
    BIS also considered the option of allowing data transmission from 
private sector computers to a logically and physically segregated BIS 
computer that would be isolated from BIS systems that would store 
sensitive data. There are options to mitigate but not to eliminate the 
risk posed by malicious code which may be embedded in transmissions and 
data content. Given sufficient time and resources, BIS could implement 
an isolation and containment solution that would provide an acceptable 
level of risk mitigation. However, the cost of the solution would 
increase as the number of unique user systems authorized to interface 
directly with BIS computer systems increased. The possibility of 
concealing harmful code in a data transmission and the corresponding 
costs and technical challenges of detecting and removing that code 
exist regardless of the data interface method or format; they will 
simply differ in nature if BIS applies an XML schema as suggested by 
one commenter.
    Because costs and complexity would increase as the number of unique 
user systems increased, providing opportunity for direct data 
transmission to all parties who submitted comments requesting direct 
data transmission to BIS would not be cost effective given current 
information technology security requirements and capabilities. 
Moreover, BIS could not in fairness limit such costs and complexity by 
restricting direct data transmission to a few parties or to a limited 
number of service providers. Doing so would favor some private sector 
parties over others and could be viewed as fostering a government 
protected oligopoly.
    After considering the foregoing factors, BIS concludes that 
eliminating the ELAIN system and requiring use of the SNAP-R Web based 
data entry system is the best available alternative given current 
information technology capabilities and fiscal constraints. 
Accordingly, BIS intends to discontinue use of ELAIN and require the 
use of the SNAP-R system unless one of the reasons for authorizing 
paper submissions set forth in this rule applies in particular case.

Comment Related to Cost Reduction Afforded by SNAP-R

    One commenter noted that use of SNAP-R would likely reduce costs 
and processing time compared to paper forms.
    BIS agrees. One of the main advantages of an electronic system such 
as SNAP-R is reduced costs and processing time.

Comments Proposing Changes to SNAP-R That Are Not Related to the 
Proposed Rule

    BIS received several comments proposing changes to SNAP-R that do 
not address the issues in the proposed rule. BIS will consider these 
comments as it further develops the SNAP-R system and may implement 
them as resources become available. These comments are:
    <bullet> SNAP-R should provide status checking ability similar to 
STELA, either in addition to STELA or instead of STELA;
    <bullet> Licensing officers should be able to enter remarks about 
the status of a submission that would be readable by the applicant;
    <bullet> SNAP-R should list the licensing officer assigned to the 
application;
    <bullet> SNAP-R should allow edits to the commodity field after the 
field is saved by the user;
    <bullet> Improve SNAP-R rights management to allow better 
management oversight via access to all of the company's submissions, 
employee reassignments, assignment of access rights, systematic peer 
review and coordination of export control compliance policies, and 
practices among affiliated companies (Consider the United Kingdom's 
SPIRE system as an example);
    <bullet> Allow exporters to designate third parties to submit on 
their behalf and to monitor the activities of those third parties;
    <bullet> Include application control numbers or reference numbers 
in the drop down menu;
    <bullet> Interact with the National Security Agency (NSA) so that 
encryption requests submitted via SNAP-R are automatically routed to 
NSA instead of requiring applicant to submit a copy of its SNAP-R 
submission to NSA; and
    <bullet> Revise the ``View Messages'' screen in SNAP-R to add 
columns that show the (submitter's) reference number and the 
application control number and allow the submitter to sort the display 
on these columns.
    These comments embody proposals to make SNAP-R more useful or 
effective. BIS believes that they need not be addressed in connection 
with this rule. BIS will consider these comments in connection with its 
future efforts to improve SNAP-R.

Comments Proposing Changes That Cannot Be Implemented at This Time 
Because of Legacy System Limitations

    Two comments proposed changes to SNAP-R that cannot be implemented 
at this time because of limitations of the legacy Export Control 
Automated Support System (ECASS). ECASS, which has been operational 
since the early 1980s, is the computer system that BIS uses for 
internal processing of license applications, classification requests, 
encryption review requests and License Exception AGR notifications. BIS 
will consider these comments in connection with its multi-year 
incremental ECASS redesign and deployment of the ECASS Redesign

[[Page 49327]]

(ECASS-R) system. However, the expectation is that the changes proposed 
in these two comments, if adopted, will not be implemented until the 
final stage of the ECASS-R system deployment when the legacy ECASS 
system is retired. This is because the legacy ECASS system architecture 
is an outdated ``monolithic'' design; although the new ECASS-R system 
is being implemented in modules incrementally, the legacy system must 
be retired in its entirety to implement broad data element changes cost 
effectively.
    These two comments are:
    <bullet> Increase the number of characters permitted in the line 
item field; and
    <bullet> Increase the number of characters permitted in the 
technical note field.

Comment Related to the Ability of SNAP-R To Accept Data Required by the 
Export Administration Regulations

    One commenter stated that BIS should change the computer/ 
microprocessor performance field to accommodate APP (adjusted peak 
performance) rather than MTOPS (millions of theoretical operations per 
second).
    In April 2006, the EAR were amended to replace the computer 
performance metric composite theoretical performance (CTP) measured in 
millions of theoretical operations per second (MTOPS) with a new metric 
called adjusted peak performance (APP) measured in weighted teraFLOPS 
(WT). In November 2007, another EAR amendment replaced CTP with APP for 
microprocessor performance measurement. In the preamble to the April 
2004 rule, BIS noted that a computer with a CTP of 190,000 MTOPS would 
have an APP of approximately 0.75 WT. A change of this magnitude 
requires an adjustment to the range of values that may be entered into 
the relevant field in SNAP-R. Currently SNAP-R will accept a range of 
values ranging from 0.0000001 to 9.9999999 WT. After considering 
applications and licenses currently in its database and estimating the 
rate of future increases in computer performance, BIS believes that 
SNAP-R as currently configured is adequate for data input of currently 
available computers and microprocessors. However, BIS estimates that 
computers with a performance level of 10 WT or greater are likely to be 
available sometime in the year 2009 or 2010. Therefore, BIS will begin 
the change control review process to modify SNAP-R to accept values 
exceeding 10 WT in the APP field.

Comments Concerning Electronically ``Attaching'' Files to SNAP-R 
Submissions

    BIS received comments concerning the requirements for 
electronically ``attaching'' documents to the SNAP-R submissions. These 
comments are:
    <bullet> Expand the size of supporting documents allowed via SNAP 
(SNAP-R). Exporters must use both paper and electronic means for 
submission of a single application.
    <bullet> Not all submissions are paper and exporters must use both 
paper and electronic means for submission of a single application.
    BIS contacted the commenter who provided this comment for 
clarification and queried its licensing officers to identify instances 
of the problems alluded to in these comments. With the information 
obtained from those sources, BIS concluded that these comments are 
intended to address the following three issues:
    <bullet> A submitter may not have a PDF version of the document. In 
one instance identified by a BIS licensing officer, the only electronic 
copy was in JPEG (joint photography experts group) format.
    <bullet> A document may be too large to fit into the submitter's 
scanner.
    <bullet> The submitter's PDF file is larger than the maximum file 
size that SNAP-R accepts for attachments.
    BIS believes that no changes to the rule or to SNAP-R are needed 
because of the issues raised in these comments. BIS selected PDF as the 
file format for attachments in SNAP-R because it is widely available, 
low cost and BIS can effectively implement security measures that 
provide a high level of protection against the Adobe related attack 
vectors. BIS notes that PDF files are widely used for transmission of 
technical documents. Although some documents are too large to scan in 
desktop scanners, commercial services that can scan such documents 
exist. SNAP-R will accept attachment files up to 10 Mb in size. BIS has 
reviewed the SNAP-R submissions that it has received and determined 
that the typical file size is approximately 5 Mb. SNAP-R does not place 
a limit on the number of files that may be attached to a submission. In 
some cases, the submitter may be able to split the file into more than 
one file to get below the file size limitations. Finally, BIS notes 
that one of the criteria under which BIS will authorize paper 
submissions is ``BIS has determined that urgency, a need to implement 
U.S. government policy or a circumstance outside the submitting party's 
control justify allowing paper submissions in a particular instance.'' 
BIS believes that this criterion provides it with adequate discretion 
to authorize paper submissions in instances where circumstances truly 
make attaching PDF files impracticable.

Comment Related to SNAP-R Registration Procedures

    One commenter stated a two-week period to issue a Personal 
Identification Number is not suitable if SNAP (SNAP-R) is mandatory.
    BIS agrees that, in nearly all cases, two weeks should not be 
needed to issue a PIN. BIS believes that most PINs are issued 
substantially less than two weeks time. BIS encourages persons who 
believe that the issuance of a PIN is taking inordinately long to 
contact the Export Management and Compliance Division at 202 482 2148 
or 202 482 0062.

Changes in This Final Rule Compared to the Proposed Rule

    After review of the comments, BIS is making no changes to the 
substantive points of the proposed rule in response to the comments. 
BIS is making only the following technical and conforming changes 
compared to the proposed rule.
    The proposed rule did not state whether the applications for a 
Special Iraq Reconstruction License (SIRL) would be required to be 
filed via SNAP-R. SIRL applications are similar to Special 
Comprehensive License (SCL) applications. This final rule explicitly 
states the SNAP-R filing is not required for SIRLS, thereby giving the 
two similar applications the same treatment.
    In Sec.  740.17, footnote number 4 is revised to refer to 
Sec. Sec.  748.1, 748.4 and 748.6, the sections that govern license 
application submission under this rule.
    In Sec.  742.2(e)(1), the reference to the BIS form 748-P is 
changed to a reference to an application.
    In Sec.  750.7(h)(3), 750.8(b), and 750.9(a) the reference to Sec.  
748(c) is replaced with Sec.  748.1(d)(2) because this rule removes 
Sec.  748.2(c) and includes the relevant information in Sec.  
748.1(d)(2).

Rulemaking Requirements

    1. This rule has been determined to be significant for purposes of 
Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor 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

[[Page 49328]]

(OMB) Control Number. This regulation involves collections previously 
approved by the OMB under control number 0694-0088, ``Simplified 
Network Application Processing System'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. 
Miscellaneous and recordkeeping activities account for 12 minutes per 
submission. This proposed rule would require persons seeking 
authorization to submit paper filings to state, either in the 
additional information block on the paper form or an attachment, which 
of the criteria for paper submissions they meet and the reasons 
therefore. BIS believes that requests seeking authorization to submit 
paper filings would impose a minimal burden on applicants as the 
information requirements are small and the number of requests is 
expected to be low. Applicants making a request would identify one or 
more of the 5 criteria under which BIS would authorize a paper 
submission, and provide the factual basis for the authorization to 
submit on paper. BIS estimates that only a small number of submissions 
will seek authorization to file on paper. In 2008, more than 96% of all 
submissions affected by this rule were submitted to BIS via SNAP-R. 
Therefore, BIS estimates that this requirement will make no material 
change of the estimated time of 58 minutes needed to prepare and submit 
a BIS-748. Send comments regarding these burden estimates or any other 
aspect of these collections of information, including suggestions for 
reducing the burden, to David Rostker, OMB Desk Officer, by e-mail at 
<a href="/cdn-cgi/l/email-protection#ec888d9a8588b39e839f9887899eac83818ec289839cc28b839a"><span class="__cf_email__" data-cfemail="751114031c112a071a06011e1007351a18175b101a055b121a03">[email protected]</span></a> or by fax to (202) 395-7285; and to the 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, Room H 2705, 14th Street and Pennsylvania Ave., NW., 
Washington, DC 20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The Chief Counsel for Regulation at the Department of Commerce 
certified to the Chief Counsel for Advocacy at the Small Business 
Administration that this rule, if adopted, would not have a significant 
economic impact on a substantial number of small entities. The factual 
basis was published in the proposed rule and is not repeated here. BIS 
received no comments that addressed the economic impact of this rule on 
small entities, therefore a final regulatory flexibility analysis was 
not prepared.

 List of Subjects

15 CFR Parts 740, 750 and 748

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

15 CFR Part 742

    Exports, Terrorism.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 754

    Agricultural commodities, Exports, Forests and forest products, 
Horses, Petroleum, Reporting and recordkeeping requirements.

15 CFR Part 764

    Administrative practice and procedure, Exports, Law enforcement, 
Penalties.

15 CFR Part 772

    Exports.

0
Accordingly, parts 740, 742, 744, 748, 750, 754, 764 and 772 of the 
Export Administration Regulations (15 CFR 730-774) are amended as 
follows:

PART 740--[AMENDED]

0
1. The authority citation for 15 CFR part 740 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Public Law 106-387; 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 3, 2006, 71 FR 44551 (August 7, 2006); Notice 
of July 23, 2008, 73 FR 43603 (July 25, 2008).


0
2. In Sec.  740.8 revise paragraph (b)(2) to read as follows:


Sec.  740.8  Key management infrastructure (KMI).

* * * * *
    (b) * * *
* * * * *
    (2) For such classification requests, indicate ``License Exception 
KMI'' in Block 9 on the application. Submit the request to BIS in 
accordance with Sec. Sec.  748.1 and 748.3 of the EAR and send a copy 
of the request to: Attn: ENC Encryption Request Coordinator, 9800 
Savage Road, Suite 6940, Fort Meade, MD 20755-6000.
* * * * *

0
3. In Sec.  740.9 revise the first sentences of paragraphs (a)(4)(i) 
and (a)(4)(iii) to read as follows:


Sec.  740.9  Temporary imports, exports and reexports (TMP).

* * * * *
    (a) * * *
    (4) * * *
    (i) * * * If the exporter or the reexporter wishes to sell or 
otherwise dispose of the items abroad, except as permitted by this or 
other applicable provision of the EAR, the exporter or reexporter must 
request authorization by submitting a license application to BIS in 
accordance with Sec. Sec.  748.1, 748.4 and 748.6 of the EAR.
* * * * *
    (iii) * * * If the exporter wishes to retain an item abroad beyond 
the 12 months authorized by paragraph (a) of this section, the exporter 
must request authorization by submitting a license application in 
accordance with Sec. Sec.  748.1, 748.4 and 748.6 of the EAR to BIS 90 
days prior to the expiration of the 12 month period.
* * * * *

0
4. In Sec.  740.12, revise paragraph (a)(2)(iii)(C) to read as follows:


Sec.  740.12  Gift parcels and humanitarian donations (GFT).

    (a) * * *
    (2) * * *
    (iii) * * *
    (C) Parties seeking authorization to exceed these frequency limits 
due to compelling humanitarian concerns (e.g., for certain gifts of 
medicine) should submit a license application in accordance with 
Sec. Sec.  748.1, 748.4 and 748.6 of the EAR to BIS with complete 
justification.
* * * * *

0
5. In Sec.  740.15, revise footnote 4 to paragraph (c), introductory 
text to read as follows:


Sec.  740.15  Aircraft and vessels (AVS).

* * * * *
    \4\ Where a license is required, see Sec. Sec.  748.1, 748.4 and 
748.6 of the EAR.
* * * * *

0
6. In Sec.  740.17 revise paragraph (d)(1) to read as follows:


Sec.  740.17  Encryption commodities and software (ENC).

* * * * *
    (d) * * *
* * * * *
    (1) Instructions for requesting review. Review requests submitted 
to BIS must be submitted as described in Sec. Sec.  748.1 and 748.3 of 
the EAR. See paragraph (e)(5)(ii) of this section for the mailing 
address for the ENC Encryption Request Coordinator. To ensure that your 
review request is properly routed, insert the phrase ``License 
Exception ENC'' in Block 9 (Special Purpose) of the application. Also, 
place an ``X'' in the box marked ``Classification Request'' in Block 5 
(Type of Application) of Form

[[Page 49329]]

BIS-748P or select ``Commodity Classification'' if filing 
electronically. Neither the electronic nor paper forms provide a 
separate block to check for the submission of encryption review 
requests. Failure to properly complete these items may delay 
consideration of your review request.
* * * * *

0
7. In Sec.  740.18 revise paragraph (c)(2) to read as follows:


Sec.  740.18  Agricultural commodities (AGR).

* * * * *
    (c) * * *
* * * * *
    (2) Procedures. You must provide prior notification of exports and 
reexports under License Exception AGR by submitting a completed 
application in accordance with Sec.  748.1 of the EAR. The following 
blocks must be completed, as appropriate: Blocks 1, 2, 3, 4, 5 (by 
marking box 5 ``Other''), 14, 16, 17, 18, 19, 21, 22 (a), (e), (f), 
(g), (h), (i), (j), 23, and 25 according to the instructions described 
in Supplement No. 1 to part 748 of the EAR. If your commodity is 
fertilizer, western red cedar or live horses, you must confirm that BIS 
has previously classified your commodity as EAR99 by placing the 
Commodity Classification Automatic Tracking System (CCATS) number in 
Block 22(d). BIS will not initiate the registration of an AGR 
notification unless the application is complete.
* * * * *

PART 742--[AMENDED]

0
8. The authority citation for 15 CFR part 742 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec 1503, Public Law 108-11, 117 Stat. 559; E.O. 12058, 
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., 
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential 
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; 
Notice of July 23, 2008, 73 FR 43603 (July 25, 2008); Notice of 
November 8, 2007, 72 FR 63963 (November 13, 2007).


0
9. Revise the first sentence of Sec.  742.2(e)(1) to read as follows:


Sec.  742.2  Proliferation of chemical and biological weapons.

* * * * *
    (e) * * *
    (1) Supplement No. 1 to part 748 of the EAR provides general 
instructions for completing license applications
* * * * *
* * * * *


0
10. In Sec.  742.15, revise paragraph (b)(2)(i) to read as follows:


Sec.  742.15  Encryption items.

* * * * *
    (b) * * *
* * * * *
    (2) * * *
* * * * *
    (i) Procedures for requesting review. To request review of your 
mass market encryption products, you must submit to BIS and the ENC 
Encryption Request Coordinator the information described in paragraphs 
(a) through (e) of Supplement No. 6 to this part 742, and you must 
include specific information describing how your products qualify for 
mass market treatment under the criteria in the Cryptography Note (Note 
3) of Category 5, Part 2 (``Information Security''), of the Commerce 
Control List (Supplement No. 1 to part 774 of the EAR). Submit review 
requests to BIS in accordance with Sec. Sec.  748.1 and 748.3 of the 
EAR. To ensure that your review request is properly routed, insert the 
phrase ``Mass market encryption'' in Block 9 (Special Purpose) and 
place an ``X'' in the box marked ``Classification Request'' in Block 5 
(Type of Application) Block 5 does not provide a separate item to check 
for the submission of encryption review requests. Failure to properly 
complete these items may delay consideration of your review request. 
Submissions to the ENC Encryption Request Coordinator should be 
directed to the mailing address indicated in Sec.  740.17(e)(5)(ii) of 
the EAR. BIS will notify you if there are any questions concerning your 
request for review (e.g., because of missing or incomplete support 
documentation).
* * * * *

0
11. In Supplement No. 6 to part 742 revise the first sentence to read 
as follows:

Supplement No. 6 to Part 742 Guidelines for Submitting Review Requests 
for Encryption Items

    Review requests for encryption items must include all of the 
documentation described in this supplement and be submitted to BIS 
in accordance with Sec. Sec.  748.1 and 748.3 of the EAR.
* * * * *

PART 744--[AMENDED]

0
The authority citation for part 744 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; 
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 
CFR, 2001 Comp., p. 786; Notice of July 23, 2008, 73 FR 43603 (July 
25, 2008); Notice of November 8, 2007, 72 FR 63963 (November 13, 
2007).


0
12. Revise Sec.  744.21(d) to read as follows:


Sec.  744.21  Restrictions on certain military end-uses in the People's 
Republic of China.

* * * * *
    (d) License application procedure. When submitting a license 
application pursuant to this section, you must state in the 
``additional information'' block of the application that ``this 
application is submitted because of the license requirement in Sec.  
744.21 of the EAR (Restrictions on Certain Military End-uses in the 
People's Republic of China).'' In addition, either in the additional 
information block or in an attachment to the application, you must 
include all known information concerning the military end-use of the 
item(s). If you submit an attachment with your license application, you 
must reference the attachment in the ``additional information'' block 
of the application.
* * * * *

PART 748--[AMENDED]

0
13. The authority citation for 15 CFR part 748 is revised 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 July 23, 2008, 73 FR 
43603 (July 25, 2008).


0
14. In Sec.  748.1, revise paragraph (a) and add a paragraph (d) to 
read as follows:


Sec.  748.1  General provisions.

    (a) Scope. In this part, references to the Export Administration 
Regulations or EAR are references to 15 CFR chapter VII, subchapter C. 
The provisions of this part involve requests for classifications and 
advisory opinions, export license applications, encryption review 
requests, reexport license applications, and certain license exception 
notices subject to the EAR. All terms,

[[Page 49330]]

conditions, provisions, and instructions, including the applicant and 
consignee certifications, contained in electronic or paper form(s) are 
incorporated as part of the EAR. For the purposes of this part, the 
term ``application'' refers to both electronic applications and the 
Form BIS-748P: Multipurpose Application.
* * * * *
    (d) Electronic Filing Required. All export and reexport license 
applications (other than Special Comprehensive License or Special Iraq 
Reconstruction License applications), encryption review requests, 
license exception AGR notifications, and classification requests and 
their accompanying documents must be filed via BIS's Simplified Network 
Application Processing system (SNAP-R), unless BIS authorizes 
submission via the paper forms BIS 748-P (Multipurpose Application 
Form), BIS-748P-A (Item Appendix) and BIS-748P-B, (End-User Appendix). 
Only original paper forms may be used. Facsimiles or reproductions are 
not acceptable.
    (1) Reasons for authorizing paper submissions. BIS will process 
paper applications notices or requests if the submitting party meets 
one or more of the following criteria:
    (i) BIS has received no more than one submission (i.e. the total 
number of export license applications, reexport license applications, 
encryption review requests, license exception AGR notifications, and 
classification requests) from that party in the twelve months 
immediately preceding its receipt of the current submission;
    (ii) The party does not have access to the Internet;
    (iii) BIS has rejected the party's electronic filing registration 
or revoked its eligibility to file electronically;
    (iv) BIS has requested that the party submit a paper copy for a 
particular transaction; or
    (v) BIS has determined that urgency, a need to implement U.S. 
government policy or a circumstance outside the submitting party's 
control justify allowing paper submissions in a particular instance.
    (2) Procedure for requesting authorization to file paper 
applications, notifications, or requests. The applicant must state in 
Block 24 or as an attachment to the paper application (Form BIS 748-P) 
which of the criteria in paragraph (d)(1) of this section it meets and 
the facts that support such statement. Submit the completed 
application, notification or request to Bureau of Industry and 
Security, U.S. Department of Commerce, 14th Street and Pennsylvania, 
NW., Room H2705, Washington DC 20230.
    (3) BIS decision. If BIS authorizes or requires paper filing 
pursuant to this section, it will process the application, notification 
or request in accordance with Part 750 of the EAR. If BIS rejects a 
request to file using paper, it will return the Form BIS-748P and all 
attachments to the submitting party without action and will state the 
reason for its decision.


Sec.  748.2  [Amended]

0
15. In Sec.  748.2, remove paragraph (c).

0
16. In Sec.  748.3 revise; paragraph (b) introductory text, the final 
sentence of paragraph (b)(1), paragraph (b)(2) and first sentence of 
paragraph (c) to read as follows:


Sec.  748.3  Classification requests, advisory opinions, and encryption 
review requests.

* * * * *
    (b) * * * Submit classification requests in accordance with the 
procedures in Sec.  748.1.
    (1) * * * Classification requests must be supported by any 
descriptive literature, brochures, precise technical specifications or 
papers that describe the items in sufficient technical detail to enable 
classification by BIS submitted as PDF files attached to the SNAP-R 
submission unless a paper submission is authorized pursuant to Sec.  
748.1 of the EAR.
    (2) When submitting a classification request, you must complete 
Blocks 1 through 5, 14, 22(a), (b), (c), (d), and (i), 24, and 25 on 
the application. You must provide a recommended classification in Block 
22(a) and explain the basis for your recommendation based on the 
technical parameters specified in the appropriate ECCN in Block 24. If 
you are unable to determine a recommended classification for your item, 
include an explanation in Block 24, identifying the ambiguities or 
deficiencies that precluded you from making a recommended 
classification.
    (c) * * * Advisory opinion requests must be in writing and be 
submitted to the address listed in Sec.  748.1(d)(2). * * *
* * * * *

0
17. In Sec.  748.4, revise the third sentence of paragraph (b)(1) and 
the first sentence of paragraph (b)(2)(ii) to read as follows.


Sec.  748.4  Basic guidance related to applying for a license.

* * * * *
    (b) * * * (1) * * * If there is any doubt about which persons 
should be named as parties to the transaction, the applicant should 
disclose the names of all such persons and the functions to be 
performed by each in Block 24 of the application. * * *
    (2) * * *
    (ii) * * * Block 7 of the application (documents on file with 
applicant) must be marked ``other'' and Block 24 (Additional 
information) must be marked ``748.4(b)(2)'' to indicate that the power 
of attorney or other written authorization is on file with the agent.
* * * * *

0
18. In Sec.  748.5, revise the first sentence of the introductory 
paragraph and the second sentence of paragraph (b) to read as follows:


Sec.  748.5  Parties to the transaction.

    The following parties may be entered on the application. * * *
    (a) * * *
    (b) * * * If a person and address is listed in Block 15 of the 
application, the Bureau of Industry and Security will send the license 
to that person instead of the applicant.
* * * * *

0
19. In Sec.  748.6, revise paragraph (a), the first sentence of 
paragraph (b) and paragraph (e) to read as follows:


Sec.  748.6  General instructions for license applications.

    (a) Instructions. General instructions for filling out license 
applications are in Supp. No. 1 to this part. Special instructions for 
applications involving certain transactions are listed in Sec.  748.8 
and described fully in Supp. No. 2 to this part.
    (b) * * * Each application has an application control number. * * *
* * * * *
    (e) Attachments to applications. Documents required to be submitted 
with applications filed via SNAP-R must be submitted as PDF files using 
the procedures described in SNAP-R. Documents required to be submitted 
with paper applications must bear the application control number to 
which they relate and, if applicable, be stapled to the paper form. 
Where necessary, BIS may require you to submit additional information 
beyond that stated in the EAR confirming or amplifying information 
contained in your license application.
* * * * *

PART 750--[AMENDED]

0
20. The authority citation for part 750 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 1503, Public Law 108-11, 117 Stat. 559; E.O. 13026, 61 FR 
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 
2003, 68 FR 26459, May 16, 2003;

[[Page 49331]]

Notice of July 23, 2008, 73 FR 43603 (July 25, 2008).


0
21. Revise the last sentence of Sec.  750.7(h)(3) to read as follows:


Sec.  750.7  Issuance of licenses.

* * * * *
    (h) * * *
    (3) * * * The written request must be submitted to BIS at the 
address listed in Sec.  748.1(d)(2) of the EAR.
* * * * *

0
22. Revise the second sentence of Sec.  750.8(b) to read as follows:


Sec.  750.8  Revocation or suspension of licenses.

* * * * *
    (b) * * * The license must be returned to BIS at the address listed 
in Sec.  748.1(d)(2) of the EAR, Attn: ``Return of Revoked/Suspended 
License''.
* * * * *

0
23. Revise the first sentence of Sec.  750.9(a) to read as follows:


Sec.  750.9  Duplicate licenses.

    (a) * * * If a license is lost, stolen or destroyed, you, as the 
licensee, may obtain a duplicate of the license by submitting a letter 
to the BIS at the address listed in Sec.  748.1(d)(2) of the EAR, 
Attention: ``Duplicate License Request''.
* * * * *

PART 754--[AMENDED]

0
24. The authority citation for 15 CFR part 754 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 30 U.S.C. 185(s), 185(u); 42 
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 11912, 41 FR 
15825, 3 CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 44551 (August 7, 
2006); Notice of July 23, 2008, 73 FR 43603 (July 25, 2008).


0
25. In Sec.  754.2, revise paragraphs (g)(1) and (g)(5)(i) to read as 
follows:


Sec.  754.2  Crude oil.

* * * * *
    (g) * * *
* * * * *
    (1) Applicants must submit their applications in accordance with 
Sec. Sec.  748.1, 748.4 and 748.6 of the EAR.
* * * * *
    (5) * * *
    (i) BIS will issue licenses for approved applications in the order 
in which the applications are received, with the total quantity 
authorized for any one license not to exceed 25 percent of the annual 
authorized volume of California heavy crude oil.
* * * * *

0
26. In Sec.  754.4, revise paragraphs (d)(1), (d)(2), and the 
introductory text of paragraph (d)(3) to read as follows:


Sec.  754.4  Unprocessed Western Red Cedar.

* * * * *
    (d) * * *
    (1) Applicants requesting to export unprocessed western red cedar 
must apply for a license in accordance with Sec.  748.1, 748.4 and 
748.6 of the EAR, submit any other documents as may be required by BIS, 
and submit a statement from an authorized representative of the 
exporter, reading as follows:
    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best of 
my knowledge and belief the (Quantity) (cubic meters or board feed 
scribner) of unprocessed western red cedar timber that (Exporter) 
proposes to export was not harvested from State or Federal lands under 
contracts entered into after October 1, 1979.
-----------------------------------------------------------------------

Signature

-----------------------------------------------------------------------

Date

    (2) In Blocks 16 and 18 of the application, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each application submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period described in part 762 of the EAR, and produce or make available 
for inspection, the following:
* * * * *

0
27. In Sec.  754.5 revise the second sentence of paragraph (b)(2) to 
read as follows:


Sec.  754.5  Horses for export by sea.

* * * * *
    (b) * * *
    (2) * * * You must provide a statement in the additional 
information section of the application certifying that no horse under 
consignment is being exported for the purpose of slaughter.
* * * * *

0
28. In Supplement No. 2 to Part 754, revise footnote number 2 to read 
as follows:

Supplement No. 2 to Part 754--Western Red Cedar

    \2\ Report commodities on license applications in the units of 
quantity indicated.
* * * * *

PART 764--[AMENDED]

0
29. The authority citation for 15 CFR part 764 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
3, 2006, 71 FR 44551 (August 7, 2006); Notice of July 23, 2008, 73 
FR 43603 (July 25, 2008).


0
30. In Sec.  764.7, revise the second sentence of paragraph (b)(2)(i) 
to read as follows:


Sec.  764.7  Activities involving items that may have been illegally 
exported or reexported to Libya.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * * License applications should be submitted in accordance 
with Sec. Sec.  748.1, 748.4 and 748.6 of the EAR, and should fully 
describe the relevant activity within the scope of Sec.  764.2(e) of 
this part which is the basis of the application.
* * * * *

PART 772--[AMENDED]

0
31. The authority citation for 15 CFR part 772 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
3, 2006, 71 FR 44551 (August 7, 2006); Notice of July 23, 2008, 73 
FR 43603 (July 25, 2008).


0
32. In Sec.  772.1 revise the second sentence of the definition of the 
term ``Other party authorized to receive license.''


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Other party authorized to receive license. * * * If a person and 
address is listed in Block 15 of the application, the Bureau of 
Industry and Security will send the license to that person instead of 
the applicant.
* * * * *

    Dated: August 7, 2008.
Christopher R. Wall,
Assistant Secretary for Export Administration.
[FR Doc. E8-18852 Filed 8-20-08; 8:45 am]
BILLING CODE 3510-33-P


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