Document ID: BIS-2015-0010-0001
Agency: bis
Document Type: Proposed Rule
Title: U.S. Industrial Base Surveys Pursuant to the Defense Production Act
Posted Date: 2015-03-03T05:00Z

[Federal Register Volume 80, Number 41 (Tuesday, March 3, 2015)]
[Proposed Rules]
[Pages 11350-11355]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-04299]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 702

[Docket No. 140501396-4396-01]
RIN 0694-AG17

U.S. Industrial Base Surveys Pursuant to the Defense Production 
Act of 1950

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule

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SUMMARY: This proposed rule would set forth the policies and procedures 
of the Bureau of Industry and Security (BIS) for conducting surveys to 
obtain information in order to perform industry studies assessing the 
U.S. industrial base to support the national defense pursuant to the 
Defense Production Act of 1950, as amended. Specifically, this proposed 
rule would provide a description of: BIS's authority to issue surveys; 
the purpose for the surveys and the manner in which such surveys are 
developed; the confidential treatment of submitted information; and the 
penalties for non-compliance with surveys. This rule is intended to 
facilitate compliance with surveys, thereby resulting in stronger and 
more complete assessments of the U.S. industrial base.

DATES: Comments must be received no later than May 4, 2015.

FOR FURTHER INFORMATION CONTACT: Jason Bolton, Trade and Industry 
Analyst, Office of Technology Evaluation, phone: 202-482-5936 email: 
jason.bolton@bis.doc.gov or Brad Botwin, Director, Industrial Base 
Studies, Office of Technology Evaluation, phone: 202-482-4060 email: 
brad.botwin@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to authorities under Sec.  705 of the Defense Production 
Act of 1950 as amended (DPA) (50 U.S.C. app. 2155) and Sec.  104 of 
Executive Order 13603 of March 16, 2012 (National Defense Resources 
Preparedness, 77 FR 16651, 3 CFR, 2012 Comp., p. 225), the Bureau of 
Industry and Security (BIS) conducts studies that assess the 
capabilities of the U.S. industrial base to support the national 
defense. To produce these studies, BIS may issue surveys to collect 
detailed information related to the health and competitiveness of the 
U.S. industrial base from government sources and private individuals or 
organizations.
    This proposed rule sets forth procedures intended to facilitate the 
accurate and timely completion of surveys issued by BIS to collect data 
for these studies. This rule sets forth in a single part of the Code of 
Federal Regulations the information about BIS's authority to conduct 
the studies, the authority to issue surveys to gather data in support 
of the studies, the purpose of the surveys and the manner in which such 
surveys are developed, the confidential treatment of submitted 
information, and the penalties for non-compliance with surveys.
    Additionally, this rule explains BIS's procedures for verifying 
that the scope and purpose of the surveys are well defined, and assures 
that the surveys do not solicit data that duplicates adequate and 
authoritative data that is available to BIS from any federal or other 
responsible agency. A survey may require the submission of information 
similar or identical to information possessed by another federal agency 
but that is not available to BIS.
    Based on requests it receives from U.S. Government agencies, BIS 
produces studies to develop findings and policy recommendations for the 
purpose of improving the competitiveness of specific domestic 
industries and technologies critical to meeting national defense and 
essential civilian requirements. These studies may require surveys to 
collect relevant data and assessments of that data and other 
information available to BIS.
    BIS, in cooperation with the requesting agency, selects the persons 
to be surveyed based on the likelihood that they will have information 
relevant to a study. That likelihood is related to the person's 
association with the industry sector, material, product, service or 
technology that is the subject of the study. That association may be 
based on factors such as the person's role in directly or indirectly 
providing, producing, distributing, utilizing, procuring, researching, 
developing, consulting or advising on, the industry sector, material, 
product, service or technology that is the subject of the study.
    Whether a person's association with the industry sector, material, 
product, service or technology being assessed is proximate or remote 
does not determine whether that person's association is sufficient for 
inclusion in the survey. For example, information about a supplier of 
raw materials or components that is several transactions removed from 
the production of the product that is the subject of a study may be 
relevant to assessing the capabilities of the U.S. industrial base to 
supply the product to support the national defense. In such a 
situation, the supplier would be included in the survey. The nature of 
the person from whom the information is sought also does not determine 
whether that person's association with the industry sector, material, 
product, service or technology at issue is sufficient for inclusion in 
the survey. Surveys may require information from businesses organized 
for profit, non-profit organizations, academic institutions and 
government agencies.
    To be useful, a study must be comprehensive, accurate and focused 
on the relevant industry sector, material, product, service or 
technology. Therefore, surveys may require information about 
employment, research and development, sources of supply, manufacturing 
processes, customers, business strategy, finances and other factors 
affecting the industry's health and competitiveness. To properly focus 
the survey on the industry sector, material, product, service or 
technology being assessed, BIS may request information about a 
corporation as a whole or information about one or more specified units 
or individual activities of that corporation. The DPA provides both a 
civil remedy and criminal penalties that may be used when recipients of 
surveys do not supply the information sought.
    BIS deems the information supplied in response to survey requests 
to be confidential and is prohibited by law from publishing or 
disclosing such information unless the Under Secretary for Industry and 
Security determines that withholding the information is contrary to the 
interest of the national defense. The authority to make this 
determination, which Sec.  705(d) of the DPA gives to the President, 
has been delegated to relevant agencies, including the Secretary of 
Commerce, by Sec.  802 of Executive Order 13603. The Secretary of 
Commerce re-delegated this authority to the Under Secretary for 
Industry and Security. The DPA provides criminal penalties for any 
person who willfully violates its prohibition on publication or 
disclosure.

Section by Section Description of the Proposed Rule

    This proposed rule would create a new part in Title 15, Chapter 
VII,

[[Page 11351]]

Subchapter A of the Code of Federal Regulations to be designated as 15 
CFR part 702. This new part would be devoted exclusively to BIS's 
collection of information under Sec.  705 of the DPA (50 U.S.C. app. 
2155). Placing the new part in Subchapter A would promote an orderly 
and logical regulatory structure because all other regulations 
implementing BIS authorities related to the DPA are contained in that 
subchapter.

Section 702.1

    Section 702.1 would set forth a general description of BIS' 
authority to collect information needed to complete the surveys. The 
survey responses assist BIS in determining the capabilities of the 
industrial base to support the national defense and to develop policy 
recommendations to improve both the international competitiveness of 
specific domestic industries and their ability to meet national defense 
needs.

Section 702.2

    Section 702.2 would implement the requirement to publish 
regulations found in Sec.  705 of the DPA (50 U.S.C. app. 2155(a)) by 
requiring BIS personnel of appropriate competence and authority to 
ensure that before a survey is sent to any person for completion; (1) 
the scope and purpose of a survey have been established, (2) the scope 
and purpose are consistent with BIS's authorities under the DPA, and 
(3) the data requested by the survey does not duplicate adequate and 
authoritative data available to BIS from a federal or other 
authoritative source. A survey may require information that is similar 
or identical to information possessed by other federal agencies but not 
available to BIS. The section does not limit the factors that may be 
considered in deciding whether to conduct a survey nor does it modify 
or replace the requirements of the Paperwork Reduction Act. In 
addition, all surveys are reviewed by BIS and by the Office of 
Management and Budget (OMB) pursuant to the Paperwork Reduction Act 
before they are distributed. The OMB review process provides additional 
assurance that surveys are designed to collect only information deemed 
necessary to meet the scope and purpose of a study.

Section 702.3

    Section 702.3 would address the confidentiality requirements 
imposed by Sec.  705(d) of the DPA (50 U.S.C. app. 2155(d)) and, in 
accordance with that section, would provide two procedures by which the 
restrictions on disclosure in Sec.  705(d) would be invoked. First, 
consistent with its current practice, BIS would deem all information 
submitted in response to a survey to be confidential. Second, a person 
submitting a response to a survey may request confidential treatment of 
the information submitted. Although the second procedure is likely to 
be redundant of the first, the statute prohibits disclosure if either 
the government deems the information to be confidential or if the 
person furnishing the information requests confidential treatment. BIS 
concludes that both procedures should be included in the regulations to 
be consistent with the statute. Additionally, Sec.  702.3 would note 
that confidential information shall not be published or disclosed 
unless the Under Secretary for Industry and Security determines that 
withholding the information is contrary to the interest of the national 
defense. The statutory authority of the President to make this 
determination has been delegated to the Under Secretary for Industry 
and Security. This section also repeats the penalties that the statute 
authorizes for persons convicted of willfully violating the prohibition 
on disclosure.

Section 702.4

    Section 702.4 would require timely, complete and adequate responses 
to surveys. Specifically, the section would require that survey 
responses be returned to BIS within the time frame stated on the 
initial distribution letter or other request for information. The 
section would treat a response as ``inadequate'' if it provides 
information that is not responsive to the questions asked or if it 
provides aggregated information when specific information was 
requested.
    Section 702.4 would set forth the criteria by which BIS may grant 
either an exemption from complying with the survey requirement or an 
extension of time to comply. The grounds for granting an exemption or 
an extension are limited and generally result when BIS concludes that 
the survey recipient lacks information deemed relevant to the survey or 
when compliance with the requirement would be unduly burdensome.
    Section 702.4 would make clear that the deadline for complying with 
a survey is not suspended by submitting a request for an exemption or 
extension of time to comply.
    Finally, Sec.  702.4 would provide that BIS may return responses 
that are incomplete or inadequate and specify a due date for a complete 
and adequate response.

Section 702.5

    Section 702.5 would set forth the consequences of failure to comply 
with a survey or other request for information. These consequences are 
established by Sec.  705(a) and (c) of the DPA (50 U.S.C. app. 2155(a) 
and (c)). If a person does not comply with a survey, BIS may serve a 
subpoena upon that person to compel compliance. If the person still 
does not comply, the government may apply to the U.S. district court in 
any district in which the person is found, resides or transacts 
business for an order requiring such person to comply. The district 
court has authority to punish any failure to comply with the order as 
contempt of court. Persons who are convicted of willfully failing to 
comply with a survey or other request for information may be fined not 
more than $10,000 or imprisoned for not more than one year, or both.

Section 702.6

    Section 702.6 would define certain terms used in part 702.
    The word ``confidential'' would be defined in terms of Sec.  705(d) 
of the DPA, thereby distinguishing its use in this rule from its use in 
connection with the classification of information for national security 
purposes as set forth in Executive Order 13526 of December 29, 2009, 
Classified National Security Information (75 FR 707; 3 CFR, 2010 Comp., 
p. 298).
    The definition of the term ``person'' would be based on the 
definition of ``person'' in Sec.  702 of the DPA (50 U.S.C. app. 2152) 
with some additions. The DPA definition reads: ``The term `person' 
includes an individual, corporation, partnership, association, or any 
other organized group of persons, or legal successor or representative 
thereof, or any State or local government or agency thereof.'' Use of 
the word ``includes'' in the statutory definition implies that the list 
following that word is not exhaustive. BIS concludes that the use of 
``includes'' indicates that Congress recognized that the agency 
implementing the DPA would need discretion to identify the types of 
entities that would likely possess information relevant to the subject 
of each industrial base assessment to ensure a comprehensive collection 
of information.
    This proposed rule would add ``The Government of the United States, 
of the District of Columbia, of any commonwealth, territory or 
possession of the United States, or any department, agency or 
commission thereof.'' BIS has concluded that inclusion of the

[[Page 11352]]

additional entities is within its authority under the DPA because the 
DPA definition prefaces the list of entities with the word 
``includes,'' and because inclusion of the additional entities is 
necessary to achieve the purpose of the statute.
    Based on prior studies, BIS has observed that the U.S. Government 
makes a significant contribution to the industrial base, whether in 
research, technology development, testing, manufacturing, repair and 
overhaul, or trade development. As a result, the U.S. Government is a 
significant source of information regarding the industrial base. 
Similarly, it is plausible that the District of Columbia, commonwealths 
of the United States and other territories and agencies can be survey 
respondents, and therefore have been included to ensure the 
completeness of a survey sample and corresponding assessment.
    The regulatory definition also would make clear that the term 
``corporation, partnership, association, or any other organized group 
of persons'' is not limited to commercial, for-profit enterprises or 
publicly traded corporations.
    The definitions of the terms ``initial distribution letter'' and 
``survey'' each describe a document used in the data collection 
process. The definitions describe those documents based on the way they 
are used in current BIS practice.

Supplement No. 1 to Part 702

    Supplement No. 1 to part 702 would provide information that BIS 
believes would be helpful to persons who receive a survey. This 
information includes both a description of the survey and a glossary of 
terms.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety, and other advantages; effects, distributive impacts 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility. This rule has been designated a 
``significant regulatory action,'' although not economically 
significant, as that term is defined in of Executive Order 12866. 
Accordingly, the rule has been reviewed by the Office of Management and 
Budget (OMB).
    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 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et. seq.) unless that 
collection of information displays a currently valid OMB control 
number. This rule does not contain a collection of information that is 
subject to the Paperwork Reduction Act. This rule sets forth procedures 
related to BIS's administration of surveys pursuant to Sec.  705 of the 
DPA (50 U.S.C. app. 2155). Individual surveys that are subject to the 
Paperwork Reduction Act will display a currently valid OMB control 
number.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute. However, under Sec.  605(b) of the 
RFA, if the head of an agency certifies that a rule will not have a 
significant impact on a substantial number of small entities, the RFA 
does not require the agency to prepare a regulatory flexibility 
analysis. Pursuant to Sec.  605(b), the Chief Counsel for Regulation, 
Department of Commerce, submitted a memorandum to the Chief Counsel for 
Advocacy, Small Business Administration, certifying that this proposed 
rule, if promulgated, will not have a significant impact on a 
substantial number of small entities. The rationale for that 
certification is as follows.

Impact

    This proposed rule would set forth, in a single part of the Code of 
Federal Regulations, the Department of Commerce's authority under Sec.  
705 of the DPA ``to obtain information in order to perform industry 
studies assessing the capabilities of the United States industrial base 
to support the national defense.'' Since the mid-1980s, BIS and its 
predecessor organizations within the Department of Commerce have 
conducted such studies and required survey responses based on the 
statute. Section 705 of the DPA authorizes the collection of the 
information. The statute also authorizes the issuance of subpoenas for 
the information and authorizes the United States district courts to 
issue orders compelling compliance with such subpoenas. It also 
provides criminal penalties for failure to comply with the government's 
requests for information. This proposed rule would not require any 
person to supply information that the person would not be required to 
provide pursuant to the statute.
    This proposed rule would require that surveys issued by BIS 
pursuant to Sec.  705 be responded to by the deadline set forth in the 
survey. The rule would publicly state BIS's existing internal policies 
and standards for the granting of both an extension of time to comply 
with the requirement and exemptions from compliance. To the extent that 
publication of these policies and standards in the Code of Federal 
Regulations could be construed as a change in the burden on small 
entities or any other entities, the publication would have to be deemed 
as a reduction in burden because it facilitates access to the standards 
by all parties.
    This proposed rule also would set forth the statutory standards for 
treating information submitted in response to a survey as confidential. 
It would reiterate the statutory penalties for failure to comply with a 
survey and for unauthorized release of information that Sec.  705 
requires to be treated as confidential.
    This proposed rule would adopt the statutory definition of 
``person'' but also add ``[t]he Government of the United States, of the 
District of Columbia, of any commonwealth, territory or possession of 
the United States, or any department, agency or commission thereof'' to 
the definition. The term ``person'' is used in the statute and in this 
proposed rule to represent those to whom the requirements of the 
statute and this proposed rule apply. BIS has historically interpreted 
the statute to apply to units of the U.S. Government (including the 
District of Columbia Government and the governments of the territories 
and possessions) and does not view this as a substantive change. For 
purposes of this certification, the addition is immaterial because the 
government bodies that would be added to the statutory definition by 
this proposed rule are not small entities under the definition provided 
in the Small Business Regulatory Enforcement Fairness Act of 1996.

Number of Small Entities

    Surveys are one-time exercises used to assess the state and/or 
capabilities of a particular industry sector or technology. Entities 
are selected for participation based on their role in, or relationship 
to, the industry sector or

[[Page 11353]]

technology being assessed. Information obtained during the course of 
any one assessment may be relevant to determining whether the current 
entity supplying that information is a small entity. However, the 
composition of survey respondents varies dramatically between industry 
studies due to the complexity of each industry sector or technology 
being assessed. Consequently, BIS is unable to draw from existing data 
to estimate the number of small businesses participating in future 
collections. Accordingly, BIS is unable to determine the number of 
small entities that would be affected by this proposed rule.

Conclusion

    Although BIS cannot predict the exact number of small entities that 
will be participating in any one survey, this rule would not impose a 
significant burden on any such small entities because it would not 
require any impacted entity to perform any action that it is not 
already required to perform pursuant to Sec.  705 of the DPA.

List of Subjects in Part 702

    Business and industry, Confidential business information, 
Employment, Penalties, National defense, Research, Science and 
technology.

    Accordingly, the National Security Industrial Base Regulations (15 
CFR Chapter VII, Subchapter A) is proposed to be amended as follows.

0
1. Add Part 702 to read as follows:

Subchapter A--National Security Industrial Base Regulations

Part 702--INDUSTRIAL BASE SURVEYS--DATA COLLECTIONS

Sec.
702.1 Introduction.
702.2 Scope and purpose of surveys--avoiding duplicative requests 
for information.
702.3 Confidential information.
702.4 Requirement to comply with surveys or other requests for 
information.
702.5 Consequences of failure to comply.
702.6 Definitions.
Supplement No. 1 to Part 702--General Survey Information.

    Authority: 50 U.S.C. app. 2061 et seq., E.O. 13603, 77 FR 16651, 
3 CFR, 2012 Comp., p. 225.

Sec.  702.1  Introduction.

    In accordance with 50 U.S.C. app. 2155, the Bureau of Industry and 
Security (BIS) may obtain such information from, require such reports 
and the keeping of such records by, make an inspection of the books, 
records, and other writings, premises or property of, take the sworn 
testimony of and administer oaths and affirmations to, any person as 
may be necessary or appropriate, in its discretion, to the enforcement 
or the administration of its authorities and responsibilities under the 
Defense Production Act of 1950 as amended (DPA) and any regulations or 
orders issued thereunder. BIS's authorities under the DPA (50 U.S.C. 
app. 2061 et seq.) include authority to collect data via surveys to 
perform industry studies assessing the capabilities of the United 
States industrial base to support the national defense and develop 
policy recommendations to improve both the international 
competitiveness of specific domestic industries and their ability to 
meet national defense program needs.

Sec.  702.2  Scope and purpose of surveys--avoiding duplicative 
requests for information.

    (a) BIS will not send any survey to any person for completion 
unless the scope and purpose of the survey have been established, that 
scope and purpose are consistent with BIS's authorities under the DPA, 
and the data requested by the survey does not duplicate adequate and 
authoritative data already available to BIS from a Federal or other 
authoritative source.
    (b) BIS personnel of appropriate competence and authority will 
ensure that the requirements of paragraph (a) are met.
    (c) This section shall not be construed as limiting the criteria 
that BIS may consider in determining whether to proceed with a survey. 
This paragraph shall not be construed as replacing or in any way 
modifying the requirements of the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.).

Sec.  702.3  Confidential information.

    This section implements Sec.  705(d) of the DPA.
    (a) BIS deems all information submitted in response to a survey 
issued pursuant to this part to be confidential.
    (b) Any person submitting information in response to a survey 
issued pursuant to this part may request confidential treatment of that 
information.
    (c) The President's authority under the DPA to protect confidential 
information has been delegated to the Under Secretary for Industry and 
Security. The information described in paragraphs (a) and (b) shall not 
be published or disclosed unless the Under Secretary for Industry and 
Security determines that the withholding thereof is contrary to the 
interest of the national defense.
    (d) Any person convicted of willfully violating the prohibition in 
paragraph (c) may be fined not more than $10,000 or imprisoned for not 
more than one year, or both.

Sec.  702.4  Requirement to comply with surveys or other requests for 
information.

    (a) Requirement to comply. Every person who receives a survey or 
other request for information issued pursuant to this part must submit 
a complete and adequate response to BIS within the time frame stated on 
the initial distribution letter or other request for information. 
Survey response information that does not adhere to the survey question 
criteria or that contains only aggregate information in place of 
specified information will be treated as inadequate and therefore 
noncompliant. BIS may exempt persons from this requirement for the 
reasons in paragraph (b) of this section, or grant extensions of time 
to comply as set forth in paragraph (c) of this section. Submitting a 
request to BIS for an exemption or an extension of time for completion 
does not suspend the initial deadline required by BIS (or any extended 
deadline subsequently granted by BIS). Thus, persons who request an 
exemption or extension of time are advised to proceed as if the 
response is required by the deadline until advised otherwise by BIS.
    (b) Grounds for exemption. (1) An exemption from the requirements 
of this section may be granted if the person receiving the survey or 
other request for information:
    (i) Has no physical presence in the United States of any kind;
    (ii) Does not provide, produce, distribute, utilize, procure, 
research, develop, consult or advise on, or have any other direct or 
indirect association with the materials, products, services or 
technology that are within the scope of the survey;
    (iii) Has ceased business operations more than 12 months prior to 
receipt of the survey;
    (iv) Has been in business for less than one year; or
    (v) BIS determines that extenuating circumstances exist that make 
responding impractical.
    (2) BIS may also grant an exemption if, based on the totality of 
the circumstances, it concludes that compliance would be impractical 
and/or that requiring compliance would be unduly time intensive.
    (3) Existence of a pre-existing private non-disclosure agreement or 
information sharing agreement between a person and another party (e.g., 
customers, suppliers, etc.), does not

[[Page 11354]]

exempt a person from the obligation to comply with and complete a 
survey. The authority to conduct the survey and comply with the survey 
is derived from the DPA, and that statutory obligation to comply 
supersedes any private agreement.
    (c) Extensions of time to complete. A person who receives a survey 
or other request for information may request an extension of time to 
submit the complete response to BIS. BIS may grant such an extension of 
time, if, in its judgment, circumstances are such that additional time 
reasonably is needed, the extension would not jeopardize timely 
completion of BIS's overall analysis, and the person is making 
reasonable progress towards completing the survey or response to the 
other request for information. Generally, extensions will be for no 
more than two weeks. A person who receives a survey or other request 
for information may request successive extensions if the person 
believes that it continues to have a legitimate need for additional 
time to complete the survey. BIS will not grant extensions that would 
jeopardize the performance and timely completion of its industrial base 
assessments.
    (d) Procedure for requesting exemptions or extensions of time. 
Requests for exemptions or extensions of time must be made to BIS at 
the telephone number, email address or BIS physical address provided in 
the initial distribution letter for a survey or in the other request 
for information. A request for an exemption must provide factual 
information and documentation that are adequate for BIS to determine 
that one or more of the criteria stated in paragraph (b) or (c) are 
met.
    (e) Responses that are incomplete or inadequate. BIS may return 
responses that are incomplete or inadequate to the person for prompt 
completion. BIS will specify the required period of time permitted for 
completion and submission of the revised survey.

Sec.  702.5  Consequences of failure to comply.

    (a) Civil. If any person fails to comply with the requirements of 
Sec.  702.4, BIS may issue a subpoena requiring that person to submit 
the information called for in the survey. In the case of contumacy or 
refusal to obey such a subpoena, the U.S. Government may apply for an 
order by the United States district court in a district where that 
person resides or transacts business that would compel the person to 
submit the completed survey.
    (b) Criminal. In accordance with 50 U.S.C. app. 2155, any person 
who willfully fails to comply with Sec.  702.4, may, upon conviction, 
be fined not more than $10,000 or imprisoned not more than one year, or 
both.

Sec.  702.6  Definitions.

    The definitions in this section apply throughout this part.
    Confidential. A description of information that is subject to the 
disclosure prohibitions of the DPA (50 U.S.C. app. 2155(d)).
    Initial distribution letter. A letter that BIS sends to a person 
that has been identified by the U.S. Government as a supplier or 
customer of materials, products or services used for activities of the 
industry that is the focus of a survey. The letter describes the 
survey's primary objectives, how survey results will assist the U.S. 
Government, and the confidential treatment of the information 
submitted. The letter also provides BIS contact information.
    Person. The term ``person'' includes: (a) An individual, 
corporation, partnership, association, or any other organized group of 
persons, or legal successor or representative thereof;
    (b) Any State or local government or agency thereof;
    (c) The Government of the United States, of the District of 
Columbia, of any commonwealth, territory or possession of the United 
States, or any department, agency or commission thereof.
    Note to the definition of ``person''. Paragraph (a) of this 
definition is not limited to commercial or for-profit organizations. 
For example, the term ``any other organized group of persons'' may 
encompass labor unions, academic institutions, charitable organizations 
or any group of persons who are organized in some manner. The term 
corporation is not limited to publicly traded corporations or 
corporations that exist for the purpose of making a profit.
    Survey. A questionnaire or other request for information that 
collects detailed information and data to support both the assessment 
of a particular industrial sector or technology and the development of 
a corresponding study.

Supplement No. 1 to Part 702--General Survey Information

    This supplement provides general information about surveys and 
the content of the typical survey. The content of this supplement is 
purely in example of a typical survey, and in no way limits the 
content that may appear in a specific Bureau of Industry and 
Security (BIS)-issued survey. Procedures and content vary from 
survey to survey, and as such, there is no set template to follow. 
Nonetheless, BIS is offering this information as a basic guide to 
some elements of a survey.

Survey Structure

    Most surveys include the following sections: Cover Page; Table 
of Contents; General Instructions; Glossary of Terms; Organizational 
Information, and sector-specific sections.

--The cover page typically includes the title of the survey, its 
scope, an explanation of the legal requirement to comply, the burden 
estimate for compliance with the survey, the Office of Management 
and Budget (OMB) control number, and the survey date of expiration.
--The General Instructions section normally includes process steps 
necessary for a person's survey submittal. These include but are not 
limited to instructions for survey completion, survey support staff 
point-of-contact information, the name and address of the presiding 
BIS official, and instructions for both survey certification and 
submittal.
--The Glossary of Terms section explains terms contained in the 
survey. Terms contained in the survey may be unique to the subject 
matter of the industry assessment, and therefore may change in 
meaning from survey to survey. Therefore, it is important to follow 
the specific instructions and defined terms contained in the 
specific survey you receive, regardless of any previous survey you 
might have completed.
--The Organization Information section requests information related 
to the person in receipt of the survey, including address 
information, the source level of response (e.g., facility, business 
unit, division, corporate consolidated, etc.), point of contact 
details, and other pertinent contact information.

The survey is generally organized in a question and answer format 
and is presented on an electronic survey system. Each survey is 
specially tailored to collect the specific information requested. 
Therefore, specific detailed information is what should be submitted 
in response to a survey requesting such information.

--For example, if we ask for a listing of your customers that order 
widget A, your response should not be a listing of your entire 
customer base. Only the information pertaining to customers' 
ordering widget A is responsive to that kind of question.

Also note that your reply to a survey request is compulsory, unless 
you meet the criteria for exemption set forth in the body of the 
regulation. Therefore, any non-disclosure agreements or similar 
agreements you may have with your customers or clients are not 
applicable to a survey's request for information. Compliance with 
the survey is required by the DPA. Accordingly, compliance with that 
statutory requirement is paramount to any private agreement you have 
with your customers or other parties.
    In addition to the aforementioned sections, each survey contains 
sections tailored to the specific scope of the study, including but 
not limited to Facility Locations, Products and Services, 
Inventories, Suppliers and Customers, Challenges and Organizational 
Outlook, Employment, Operations, Financial Statements, Sales, 
Research and Development, and Capital Expenditures.

[[Page 11355]]

Examples of Survey Terms

    Certification: A section of the survey in which a person (an 
authorizing official) certifies that the information supplied in 
response to the survey is complete and correct, to the best of the 
person's knowledge.
    Facility: A building or the minimum complex of buildings or 
parts of buildings in which a person operates to serve a particular 
function, producing revenue and incurring costs for the person. A 
facility may produce an item of tangible or intangible property or 
may perform a service. It may encompass a floor or group of floors 
within a building, a single building, or a group of buildings or 
structures. Often, a facility is a group of related locations at 
which employees work, together constituting a profit-and-loss center 
for the person, and it may be identified by a unique Dun and 
Bradstreet number.
    Sole source: An organization that is the only source for the 
supply of parts, components, materials, or services. No alternative 
U.S. or non-U.S. based supplier exists other than the current 
supplier.
    Survey template: The data collection instrument supplied by BIS 
to persons by which survey information is recorded and submitted to 
BIS. The survey is generally organized in a question and answer 
format and is presented on an electronic survey system.
    Supplier: An entity from which your organization obtains inputs. 
A supplier may be another firm with which you have a contractual 
relationship, or it may be another facility owned by the same parent 
organization. The inputs may be materials, products or services.

    Dated: February 24, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-04299 Filed 3-2-15; 8:45 am]
BILLING CODE 3510-01-P