Amendments to the International Traffic in Arms Regulations: Various, 34652-34655 [05-11892]

Download as PDF 34652 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations normal business hours from our Help line at (202) 502–8222 or the Public Reference Room at (202) 502–8371 Press 0, TTY (202) 502–8659. E-Mail the Public Reference Room at public.referenceroom@ferc.gov. Effective Date 11. These regulations are effective immediately upon publication in the Federal Register. In accordance with 5 U.S.C. 553(d)(3), the Commission finds that good cause exists to make this Final Rule effective immediately. It concerns only a matter of internal operations and will not affect the rights of persons appearing before the Commission. There is therefore no reason to make it effective at a later time. 12. The provisions of 5 U.S.C. 801 regarding Congressional review of Final Rules do not apply to this Final Rule, because the rule concerns agency procedure and practice and will not substantially affect the rights of nonagency parties. 13. The Commission is issuing this as a final rule without a period for public comment. Under 5 U.S.C. 553(b), notice and comment procedures are unnecessary where a rulemaking concerns only agency procedure and practice, or where the agency finds that notice and comment is unnecessary. This rule concerns only matters of agency procedure and will not significantly affect regulated entities or the general public. List of Subjects in 18 CFR Part 375 Authority delegations (Government agencies), Seals and insignia, Sunshine Act. By the Commission. Linda Mitry, Deputy Secretary. In consideration of the foregoing, the Commission amends part 375, chapter I, title 18, Code of Federal Regulations, as follows. I PART 375—THE COMMISSION 1. The authority citation for part 375 continues to read as follows: I Authority: 5 U.S.C. 551–557; 15 U.S.C. 717–717w, 3301–3432; 16 U.S.C. 791–825r, 2601–2645; 42 U.S.C. 7101–7352. 2. Section 375.307 is amended by revising paragraphs (f)(3) and (k)(4) and by adding paragraph (f)(4) to read as follows: I § 375.307 Delegations to the Director of the Office of Markets, Tariffs and Rates. * * * * * (f) * * * (3) Advise the filing party of any actions taken under paragraph (f)(1) or VerDate jul<14>2003 16:54 Jun 14, 2005 Jkt 205001 (f)(2) of this section and designate rate schedules, rate schedule changes, and notices of changes in rates, and the effective date hereof; and (4) Refer to the Chief Administrative Law Judge (Chief ALJ), with the Chief ALJ’s concurrence, uncontested interim natural gas rate motions that would result in lower rates, pending Commission action on settlement agreements. * * * * * (k) * * * (4) Refer to the Chief Administrative Law Judge (Chief ALJ), with the Chief ALJ’s concurrence, uncontested interim electric rate motions that would result in lower rates, pending Commission action on settlement agreements. * * * * * I 3. Section 375.311 is revised to read as follows: § 375.311 Delegations to the Director, Office of External Affairs. The Commission authorizes the Director, Office of External Affairs, or the Director’s designee, to take all actions required or permitted to be taken by the Director under Secs. 388.108 through 388.110 of this chapter. [FR Doc. 05–11553 Filed 6–14–05; 8:45 am] BILLING CODE 6717–01–P and Drug Administration, 1350 Piccard Dr., Rockville, MD 20850, 301–827– 2983. SUPPLEMENTARY INFORMATION: In the Federal Register of February 28, 2005 (70 FR 9516), FDA solicited comments concerning the direct final rule for a 75day period ending May 16, 2005. FDA stated that the effective date of the direct final rule would be on July 13, 2005, 60 days after the end of the comment period, unless any significant adverse comment was submitted to FDA during the comment period. FDA received 16 comments, 3 of which supported the plain language revisions and several of which requested further revisions or substantive changes to the medical device reporting rule. The agency did not receive any significant adverse comment on the plain language revisions. Authority: Therefore, under the Federal Food, Drug, and Cosmetic Act, and under authority delegated to the Commissioner of Food and Drugs, notice is given that no objections were filed in response to the February 28, 2005, direct final rule. Accordingly, the amendments issued thereby are effective July 13, 2005. Dated: June 9, 2005. Jeffrey Shuren, Assistant Commissioner for Policy. [FR Doc. 05–11786 Filed 6–14–05; 8:45 am] BILLING CODE 4160–01–S DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration DEPARTMENT OF STATE 21 CFR Part 803 22 CFR Parts 120, 123, 124, 126, and 127 [Docket No. 2004N–0527] [Public Notice 5108] Medical Devices; Medical Device Reporting; Confirmation of Effective Date AGENCY: Food and Drug Administration, HHS. Direct final rule; confirmation of effective date. SUMMARY: The Food and Drug Administration (FDA) is confirming the effective date of July 13, 2005, for the direct final rule that appeared in the Federal Register of February 28, 2005 (70 FR 9516). The direct final rule revised the medical device reporting regulations into plain language in order to make the regulations easier to understand. This document confirms the effective date of the direct final rule. DATES: Effective date confirmed: July 13, 2005. FOR FURTHER INFORMATION CONTACT: Howard Press, Center for Devices and Radiological Health (HFZ–531), Food Frm 00026 Amendments to the International Traffic in Arms Regulations: Various Fmt 4700 Sfmt 4700 Department of State. Final rule. AGENCY: ACTION: ACTION: PO 00000 Z–RIN 1400–ZA15 SUMMARY: The Department of State is amending and/or clarifying the content of a number of provisions of the International Traffic in Arms Regulations (ITAR). The affected parts of the ITAR are: Part 120—Purpose and Definitions; Part 123—Licenses for the Export of Defense Articles; Part 124— Agreements, Off-Shore Procurement and Other Defense Services; Part 126— General Policies and Provisions; and Part 127—Violations and Penalties. See SUPPLEMENTARY INFORMATION for a description of the changes and clarifications for each respective part. DATES: Effective June 15, 2005. ADDRESSES: Interested parties are invited to submit written comments to E:\FR\FM\15JNR1.SGM 15JNR1 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations the Department of State, Directorate of Defense Trade Controls, Office of Defense Trade Controls Policy, ATTN: Regulatory Change, 12th Floor, SA–1, Washington, DC 20522–0112. E-mail comments may be sent to DDTCResponseTeam@state.gov with an appropriate subject line. Persons with access to the Internet may also view this notice by going to the regulations.gov Web site at: http://www.regulations.gov. Comments will be accepted at any time. FOR FURTHER INFORMATION CONTACT: Mr. Stephen Tomchik, Office of Defense Trade Controls Policy, Department of State, Telephone (202) 663–2799 or FAX (202) 261–8199. ATTN: Regulatory Change, USML Parts 120.1, 123.15, 124.11, 126.5 and 127.12. SUPPLEMENTARY INFORMATION: 22 CFR 120.1 describes inter alia the responsibilities of the several offices comprising the Directorate of Defense Trade Controls (DDTC). The textual changes to Sec. 120.1 reflect the transfer of responsibility for the commodity jurisdiction procedure from the Office of Defense Trade Controls Licensing to the Office of Defense Trade Controls Policy. 22 CFR 123.15 describes inter alia the monetary thresholds for export of major defense equipment, and the export of defense articles and services sold under contract that may take place only after DDTC notifies an exporter through the issuance of a license or other approval that Congress has not enacted a joint resolution prohibiting the export. Similarly, 22 CFR 124.11 describes the monetary thresholds for any technical assistance agreement or manufacturing license agreement providing for the manufacture abroad of significant military equipment on the United States Munitions List (USML), for the export of major defense equipment, and the export of defense articles and services sold under contract that shall be certified to Congress. Pursuant to Public Law 107–228, the Foreign Relations Authorization Act, Fiscal Year 2003, the threshold amounts for Congressional notice were adjusted in the following manner: (1) The threshold levels for member countries of the North Atlantic Treaty Organization (NATO), Australia, Japan and New Zealand are established at $25 million for the export of major defense equipment sold under a contract and $100 million for the export of defense articles and services sold under contract; and (2) a threshold level of $1 million is established for proposed exports to all countries involving firearms controlled under Category I of the USML. 22 CFR 126.5 describes inter alia the modalities by which exporters, without VerDate jul<14>2003 16:54 Jun 14, 2005 Jkt 205001 a license issued by DDTC, may carry out permanent and temporary exports of defense articles to Canada, and temporary imports from Canada. The textual additions to 22 CFR 126.5 are designed to clarify for exporters the range of defense articles, related technical data, and defense services that will continue to require a license issued by the DDTC for export to or temporary import from Canada. The list of items excluded from the provisions of Section 126.5 are outlined in paragraph (b). That list is amended in the following ways: (1) The text of 126.5(b)(6) amended to reflect a change in the title of Category I of the USML. (2) The text of 126.5(b)(10) is amended to clarify that all types of aircraft covered by Category VIII(a) of the USML require an export license. (3) The text of 126.5(b)(13) is amended to reflect the fact that nuclear radiation measuring devices manufactured to military specifications are now controlled in Category XVI vice Category XIV of the USML. (4) The text of 126.5(b)(18) is amended to reflect a change in the title of Category XVI of the USML. (5) A new entry is made to the text of 126.5(b) to clarify that the exclusion from the exemption also embraces manportable air defense systems, and their parts and components, and technical data for such systems that are controlled in Category IV of the USML. Other Category IV items already are captured by the provisions 126.5(b)(2) which covers all Missile Technology Control Regime (MTCR) Annex Items. 22 CFR 127.12 describes inter alia procedures concerning voluntary disclosures by persons, firms, or organizations of violations of the Arms Export Control Act (AECA). The textual changes made to this section deal with the address to which such voluntary disclosures should be sent. Regulatory Analysis and Notices: This amendment involves a foreign affairs function of the United States and, therefore, is not subject to the procedures required by 5 U.S.C. 553 and 554. It is exempt from review under Executive Order 12866; but has been reviewed internally by the Department of State to ensure consistency with the purposes thereof. This rule does not require analysis under the Regulatory Flexibility Act or the Unfunded Mandates Reform Act. This amendment has been found not to be a major rule within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996. It will not have substantial direct effects on the States, the relationship between the national PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 34653 Government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, it is determined that this rule does not have sufficient federalism implications to warrant application of the consultation provisions of Executive Orders 12372 and 13132. This rule does not impose any new reporting or recordkeeping requirements subject to the Paperwork Reduction Act, 44 U.S.C. chapter 35. List of Subjects 22 CFR Part 120 Arms and munitions, Classified information, Exports. 22 CFR Part 123 Arms and munitions, Exports. 22 CFR Part 124 Arms and munitions, Exports, Technical assistance. 22 CFR Part 126 Arms and munitions, Exports. 22 CFR Part 127 Arms and munitions, Crime, Exports, Penalties, Seizures and forfeitures. I Accordingly, for the reasons set forth above, title 22, chapter I, subchapter M, parts 120, 123, 124, 126, and 127 are amended as follows: PART 120—PURPOSE AND DEFINITIONS 1. The authority citation for part 120 is revised to read as follows: I Authority: Secs. 2, 38, and 71, Pub.L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp, p. 79; 22 U.S.C. 2651a; Pub. L. 105–261, 112 Stat. 1920. 2. Section 120.1 is amended by revising paragraphs (b)(2)(i)(B) and (D) to read as follows: I § 120.1 General authorities and eligibility. * * * * * (b) * * * (2) * * * (i) * * * (B) The Office of Defense Trade Controls Licensing and the Director, Office of Defense Trade Controls Licensing, respectively, insofar as such references relate to licensing or other authorization of defense trade, including references under parts 120, 123, 124, 125, 126, 129 and 130 of this subchapter; * * * * * (D) The Office of Defense Trade Controls Policy and the Director, Office of Defense Trade Controls Policy, respectively, insofar as such references E:\FR\FM\15JNR1.SGM 15JNR1 34654 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations relate to the general policies of defense trade, including references under this part 120 and part 126 of this subchapter, and the commodity jurisdiction procedure under this part 120. * * * * * PART 123—LICENSES FOR THE EXPORT OF DEFENSE ARTICLES 3. The authority citation for part 123 is revised to read as follows: I Authority: Secs. 2, 38, and 71, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105–261, 112 Stat. 1920; Sec 1205(a), Pub. L. 107–228. 4. Section 123.15 is revised to read as follows: I § 123.15 Congressional certification pursuant to Section 36(c) of the Arms Export Control Act. (a) The Arms Export Control Act requires that a certification be provided to the Congress prior to the granting of any license or other approval for transactions, in the amounts described below, involving exports of any defense articles and defense services and for exports of major defense equipment, as defined in §120.8 of this subchapter. Approvals may not be granted when the Congress has enacted a joint resolution prohibiting the export. Certification is required for any transaction involving: (1) A license for the export of major defense equipment sold under a contract in the amount of $14,000,000 or more, or for defense articles and defense services sold under a contract in the amount of $50,000,000 or more to any country that is not a member country of the North Atlantic Treaty Organization (NATO), or Australia, Japan or New Zealand that does not authorize a new sales territory; or (2) A license for export to a country that is a member country of the North Atlantic Treaty Organization (NATO), or Australia, Japan or New Zealand of major defense equipment sold under a contract in the amount of $25,000,000 or more, or for defense articles and defense services sold under a contract in the amount of $100,000,000 or more and provided the transfer does not include any other countries; or (3) A license for export of a firearm controlled under Category I of the United States Munitions List, of this subchapter, in an amount of $1,000,000 or more. (b) Unless an emergency exists which requires the proposed export in the national security interests of the United States, approval may not be granted for VerDate jul<14>2003 16:54 Jun 14, 2005 Jkt 205001 any transaction until at least 15 calendar days have elapsed after receipt by the Congress of the certification required by 22 U.S.C. 2776(c)(1) involving the North Atlantic Treaty Organization, any member country of the Organization, or Australia, Japan or New Zealand or at least 30 calendar days have elapsed for any other country; in the case of a license for an export of a commercial communications satellite for launch from, and by nationals of, the Russian Federation, Ukraine, or Kazakhstan, until at least 15 calendar days after the Congress receives such certification. (c) Persons who intend to export defense articles and defense services pursuant to any exemption in this subchapter under the circumstances described in this section must provide written notification to the Directorate of Defense Trade Controls and include a signed contract and a DSP–83 signed by the applicant, the foreign consignee and the end-user. PART 124—AGREEMENTS, OFFSHORE PROCUREMENT AND OTHER DEFENSE SERVICES 5. The authority citation for part 124 is revised to read as follows: I by the Congress of the certification required by 22 U.S.C. 2776(d)(1) involving the North Atlantic Treaty Organization, any member country of that Organization, or Australia, Japan or New Zealand or at least 30 calendar days have elapsed for any other country. Approvals may not be granted when the Congress has enacted a joint resolution prohibiting the export. (c) Persons who intend to export defense articles and defense services pursuant to any exemption in this subchapter under the circumstances described in this section and section 123.15 must provide written notification to the Directorate of Defense Trade Controls and include a signed contract and a DSP–83 signed by the applicant, the foreign consignee and the end-user. PART 126—GENERAL POLICIES AND PROVISIONS 7. The authority citation for part 126 is revised to read as follows: I Authority: Secs. 2, 38, 40, 42, and 71, Pub.L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 287c; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp. p. 899. 8. Section 126.5 is amended by revising paragraphs (b) introductory text, (6), (10), (13), and (18), (c)(1), and note 2, and by adding paragraph (b)(21) to read as follows: Authority: Sec. 2, 38, and 71, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105–261. I 6. Section 124.11 is revised to read as follows: § 126.5 I § 124.11 Congressional certification pursuant to Section 36(d) of the Arms Export Control Act. (a) The Arms Export Control Act requires that a certification be provided to the Congress prior to the granting of any approval of a manufacturing license agreement or technical assistance agreement as defined in Sections 120.21 and 120.22 respectively for the manufacturing abroad of any item of significant military equipment (see § 120.7 of this subchapter) that is entered into with any country regardless of dollar value. Additionally, any manufacturing license agreement or technical assistance agreement providing for the export of major defense equipment, as defined in §120.8 of this subchapter shall also require a certification when meeting the requirements of § 123.15 of this subchapter. (b) Unless an emergency exists which requires the immediate approval of the agreement in the national security interests of the United States, approval may not be granted until at least 15 calendar days have elapsed after receipt PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 Canadian exemptions. * * * * * (b) Permanent and temporary export of defense articles. Except as provided below, District Director of Customs and postmasters shall permit, when for enduse in Canada by Canadian Federal or Provincial governmental authorities acting in an official capacity or by a Canadian-registered person or for return to the United States, the permanent and temporary export to Canada without a license of defense articles and related technical data identified in 22 CFR 121.1. The above exemption is subject to the following limitations: Defense articles and related technical data, and defense services identified in paragraphs (b)(1) through (b)(21) of this section and exports that transit third countries. Such limitations also are subject to meeting the requirements of this subchapter, (to include 22 CFR 120.1(c) and (d), parts 122 and 123 (except insofar as exemption from licensing requirements is herein authorized) and Section 126.1, and the requirement to obtain non-transfer and use assurances for all significant military equipment. For purposes of this section, ‘‘Canadian-registered person’’ is E:\FR\FM\15JNR1.SGM 15JNR1 Federal Register / Vol. 70, No. 114 / Wednesday, June 15, 2005 / Rules and Regulations any Canadian national (including Canadian business entities organized under the laws of Canada), dual citizen of Canada and a third country (subject to section 126.1), and permanent resident registered in Canada in accordance with the Canadian Defense Production Act, and such other Canadian Crown Corporations identified by the Department of State in a list of such persons publicly available through the Internet Web site of the Directorate of Defense Trade Controls and by other means. The defense articles, related technical data, and defense services identified in 22 CFR 121.1 continuing to require a license are: * * * * * (6) Firearms, close assault weapons and combat shotguns listed in Category I. * * * * * (10) All Category VIII(a) items, and developmental aircraft, engines and components identified in Category VIII(f). * * * * * (13) Nuclear radiation measuring devices manufactured to military specifications listed in Category XVI(c). * * * * * (18) Nuclear weapons, design and testing equipment listed in Category XVI. * * * * * (21) Man-portable air defense systems, and their parts and components, and technical data for such systems covered by Category IV. (c) Defense service exemption. A defense service is exempt from the licensing requirements of part 124 of this subchapter, when the following criteria can be met. (1) The item, technical data, defense service and transaction is not identified in paragraphs (b)(1) through (21) of this section; and * * * * * Notes to Sec. 126.5 * * * * * 2. Additional exemptions exist in other sections of this subchapter that are applicable to Canada, for example Secs. 123.9, 125.4 and 124.2, which allows for the performance of defense services related to training in basic operations and maintenance, without a license, for defense articles lawfully exported, including those identified in paragraphs (b)(1) through (21) of this section. PART 127—VIOLATIONS AND PENALTIES 9. The authority citation for part 127 is amended to read as follows: I VerDate jul<14>2003 16:54 Jun 14, 2005 Jkt 205001 Authority: Secs. 2, 38, and 42, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2791); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Com. p. 79; 22 U.S.C. 401; 22 U.S.C. 2651a; 22 U.S.C. 2779a; 22 U.S.C. 2780. 10. Section 127.12 is amended by revising paragraph (g) as follows: I § 127.12 Voluntary disclosures. * * * * * (g) Voluntary disclosures should be sent to the Office of Defense Trade Controls Compliance, Directorate of Defense Trade Controls. Exporters should consult the Directorate of Defense Trade Controls Web site at http://www.pmdtc.org for the appropriate street address. * * * * * Dated: May 10, 2005. John R. Bolton, Under Secretary, Arms Control and International Security, Department of State. [FR Doc. 05–11892 Filed 6–14–05; 8:45 am] BILLING CODE 4710–25–P PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets in Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: SUMMARY: The Pension Benefit Guaranty Corporation’s regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans prescribe interest assumptions for valuing and paying benefits under terminating singleemployer plans. This final rule amends the regulations to adopt interest assumptions for plans with valuation dates in July 2005. Interest assumptions are also published on the PBGC’s Web site (http://www.pbgc.gov). DATES: Effective July 1, 2005. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion, Attorney, Legislative and Regulatory Department, Pension Benefit Guaranty Corporation, 1200 K Street, NW., Washington, DC 20005, 202–326–4024. (TTY/TDD users may call the Federal relay service toll-free at 1–800–877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: The PBGC’s regulations prescribe actuarial assumptions—including interest PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 34655 assumptions—for valuing and paying plan benefits of terminating singleemployer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Three sets of interest assumptions are prescribed: (1) A set for the valuation of benefits for allocation purposes under section 4044 (found in Appendix B to part 4044), (2) a set for the PBGC to use to determine whether a benefit is payable as a lump sum and to determine lump-sum amounts to be paid by the PBGC (found in Appendix B to part 4022), and (3) a set for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using the PBGC’s historical methodology (found in Appendix C to part 4022). Accordingly, this amendment (1) adds to Appendix B to part 4044 the interest assumptions for valuing benefits for allocation purposes in plans with valuation dates during July 2005, (2) adds to Appendix B to part 4022 the interest assumptions for the PBGC to use for its own lump-sum payments in plans with valuation dates during July 2005, and (3) adds to Appendix C to part 4022 the interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using the PBGC’s historical methodology for valuation dates during July 2005. For valuation of benefits for allocation purposes, the interest assumptions that the PBGC will use (set forth in Appendix B to part 4044) will be 3.60 percent for the first 20 years following the valuation date and 4.75 percent thereafter. These interest assumptions represent a decrease (from those in effect for June 2005) of 0.10 percent for the first 20 years following the valuation date and are otherwise unchanged. The interest assumptions that the PBGC will use for its own lump-sum payments (set forth in Appendix B to part 4022) will be 2.50 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay status. These interest assumptions are unchanged from those in effect for June 2005. For private-sector payments, the interest assumptions (set forth in Appendix C to part 4022) will be the same as those used by the PBGC for determining and paying lump sums (set forth in Appendix B to part 4022). The PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the E:\FR\FM\15JNR1.SGM 15JNR1

Agencies

[Federal Register Volume 70, Number 114 (Wednesday, June 15, 2005)]
[Rules and Regulations]
[Pages 34652-34655]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-11892]


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DEPARTMENT OF STATE

22 CFR Parts 120, 123, 124, 126, and 127

[Public Notice 5108]
Z-RIN 1400-ZA15


Amendments to the International Traffic in Arms Regulations: 
Various

AGENCY: Department of State.

ACTION: Final rule.

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

SUMMARY: The Department of State is amending and/or clarifying the 
content of a number of provisions of the International Traffic in Arms 
Regulations (ITAR). The affected parts of the ITAR are: Part 120--
Purpose and Definitions; Part 123--Licenses for the Export of Defense 
Articles; Part 124--Agreements, Off-Shore Procurement and Other Defense 
Services; Part 126--General Policies and Provisions; and Part 127--
Violations and Penalties. See SUPPLEMENTARY INFORMATION for a 
description of the changes and clarifications for each respective part.

DATES: Effective June 15, 2005.

ADDRESSES: Interested parties are invited to submit written comments to

[[Page 34653]]

the Department of State, Directorate of Defense Trade Controls, Office 
of Defense Trade Controls Policy, ATTN: Regulatory Change, 12th Floor, 
SA-1, Washington, DC 20522-0112. E-mail comments may be sent to 
DDTCResponseTeam@state.gov with an appropriate subject line. Persons 
with access to the Internet may also view this notice by going to the 
regulations.gov Web site at: http://www.regulations.gov. Comments will 
be accepted at any time.

FOR FURTHER INFORMATION CONTACT: Mr. Stephen Tomchik, Office of Defense 
Trade Controls Policy, Department of State, Telephone (202) 663-2799 or 
FAX (202) 261-8199. ATTN: Regulatory Change, USML Parts 120.1, 123.15, 
124.11, 126.5 and 127.12.

SUPPLEMENTARY INFORMATION: 22 CFR 120.1 describes inter alia the 
responsibilities of the several offices comprising the Directorate of 
Defense Trade Controls (DDTC). The textual changes to Sec. 120.1 
reflect the transfer of responsibility for the commodity jurisdiction 
procedure from the Office of Defense Trade Controls Licensing to the 
Office of Defense Trade Controls Policy.
    22 CFR 123.15 describes inter alia the monetary thresholds for 
export of major defense equipment, and the export of defense articles 
and services sold under contract that may take place only after DDTC 
notifies an exporter through the issuance of a license or other 
approval that Congress has not enacted a joint resolution prohibiting 
the export. Similarly, 22 CFR 124.11 describes the monetary thresholds 
for any technical assistance agreement or manufacturing license 
agreement providing for the manufacture abroad of significant military 
equipment on the United States Munitions List (USML), for the export of 
major defense equipment, and the export of defense articles and 
services sold under contract that shall be certified to Congress. 
Pursuant to Public Law 107-228, the Foreign Relations Authorization 
Act, Fiscal Year 2003, the threshold amounts for Congressional notice 
were adjusted in the following manner: (1) The threshold levels for 
member countries of the North Atlantic Treaty Organization (NATO), 
Australia, Japan and New Zealand are established at $25 million for the 
export of major defense equipment sold under a contract and $100 
million for the export of defense articles and services sold under 
contract; and (2) a threshold level of $1 million is established for 
proposed exports to all countries involving firearms controlled under 
Category I of the USML.
    22 CFR 126.5 describes inter alia the modalities by which 
exporters, without a license issued by DDTC, may carry out permanent 
and temporary exports of defense articles to Canada, and temporary 
imports from Canada. The textual additions to 22 CFR 126.5 are designed 
to clarify for exporters the range of defense articles, related 
technical data, and defense services that will continue to require a 
license issued by the DDTC for export to or temporary import from 
Canada.
    The list of items excluded from the provisions of Section 126.5 are 
outlined in paragraph (b). That list is amended in the following ways:
    (1) The text of 126.5(b)(6) amended to reflect a change in the 
title of Category I of the USML.
    (2) The text of 126.5(b)(10) is amended to clarify that all types 
of aircraft covered by Category VIII(a) of the USML require an export 
license.
    (3) The text of 126.5(b)(13) is amended to reflect the fact that 
nuclear radiation measuring devices manufactured to military 
specifications are now controlled in Category XVI vice Category XIV of 
the USML.
    (4) The text of 126.5(b)(18) is amended to reflect a change in the 
title of Category XVI of the USML.
    (5) A new entry is made to the text of 126.5(b) to clarify that the 
exclusion from the exemption also embraces man-portable air defense 
systems, and their parts and components, and technical data for such 
systems that are controlled in Category IV of the USML. Other Category 
IV items already are captured by the provisions 126.5(b)(2) which 
covers all Missile Technology Control Regime (MTCR) Annex Items.
    22 CFR 127.12 describes inter alia procedures concerning voluntary 
disclosures by persons, firms, or organizations of violations of the 
Arms Export Control Act (AECA). The textual changes made to this 
section deal with the address to which such voluntary disclosures 
should be sent.
    Regulatory Analysis and Notices: This amendment involves a foreign 
affairs function of the United States and, therefore, is not subject to 
the procedures required by 5 U.S.C. 553 and 554. It is exempt from 
review under Executive Order 12866; but has been reviewed internally by 
the Department of State to ensure consistency with the purposes 
thereof. This rule does not require analysis under the Regulatory 
Flexibility Act or the Unfunded Mandates Reform Act. This amendment has 
been found not to be a major rule within the meaning of the Small 
Business Regulatory Enforcement Fairness Act of 1996. It will not have 
substantial direct effects on the States, the relationship between the 
national Government and the States, or on the distribution of power and 
responsibilities among the various levels of government. Therefore, it 
is determined that this rule does not have sufficient federalism 
implications to warrant application of the consultation provisions of 
Executive Orders 12372 and 13132. This rule does not impose any new 
reporting or recordkeeping requirements subject to the Paperwork 
Reduction Act, 44 U.S.C. chapter 35.

List of Subjects

22 CFR Part 120

    Arms and munitions, Classified information, Exports.

22 CFR Part 123

    Arms and munitions, Exports.

22 CFR Part 124

    Arms and munitions, Exports, Technical assistance.

22 CFR Part 126

    Arms and munitions, Exports.

22 CFR Part 127

    Arms and munitions, Crime, Exports, Penalties, Seizures and 
forfeitures.

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Accordingly, for the reasons set forth above, title 22, chapter I, 
subchapter M, parts 120, 123, 124, 126, and 127 are amended as follows:

PART 120--PURPOSE AND DEFINITIONS

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1. The authority citation for part 120 is revised to read as follows:

    Authority: Secs. 2, 38, and 71, Pub.L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; E.O. 11958, 42 FR 4311; 3 
CFR, 1977 Comp, p. 79; 22 U.S.C. 2651a; Pub. L. 105-261, 112 Stat. 
1920.


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2. Section 120.1 is amended by revising paragraphs (b)(2)(i)(B) and (D) 
to read as follows:


Sec.  120.1  General authorities and eligibility.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * *
    (B) The Office of Defense Trade Controls Licensing and the 
Director, Office of Defense Trade Controls Licensing, respectively, 
insofar as such references relate to licensing or other authorization 
of defense trade, including references under parts 120, 123, 124, 125, 
126, 129 and 130 of this subchapter;
* * * * *
    (D) The Office of Defense Trade Controls Policy and the Director, 
Office of Defense Trade Controls Policy, respectively, insofar as such 
references

[[Page 34654]]

relate to the general policies of defense trade, including references 
under this part 120 and part 126 of this subchapter, and the commodity 
jurisdiction procedure under this part 120.
* * * * *

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

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3. The authority citation for part 123 is revised to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; E.O. 11958, 42 FR 4311; 3 
CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-
261, 112 Stat. 1920; Sec 1205(a), Pub. L. 107-228.


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4. Section 123.15 is revised to read as follows:


Sec.  123.15  Congressional certification pursuant to Section 36(c) of 
the Arms Export Control Act.

    (a) The Arms Export Control Act requires that a certification be 
provided to the Congress prior to the granting of any license or other 
approval for transactions, in the amounts described below, involving 
exports of any defense articles and defense services and for exports of 
major defense equipment, as defined in Sec. 120.8 of this subchapter. 
Approvals may not be granted when the Congress has enacted a joint 
resolution prohibiting the export. Certification is required for any 
transaction involving:
    (1) A license for the export of major defense equipment sold under 
a contract in the amount of $14,000,000 or more, or for defense 
articles and defense services sold under a contract in the amount of 
$50,000,000 or more to any country that is not a member country of the 
North Atlantic Treaty Organization (NATO), or Australia, Japan or New 
Zealand that does not authorize a new sales territory; or
    (2) A license for export to a country that is a member country of 
the North Atlantic Treaty Organization (NATO), or Australia, Japan or 
New Zealand of major defense equipment sold under a contract in the 
amount of $25,000,000 or more, or for defense articles and defense 
services sold under a contract in the amount of $100,000,000 or more 
and provided the transfer does not include any other countries; or
    (3) A license for export of a firearm controlled under Category I 
of the United States Munitions List, of this subchapter, in an amount 
of $1,000,000 or more.
    (b) Unless an emergency exists which requires the proposed export 
in the national security interests of the United States, approval may 
not be granted for any transaction until at least 15 calendar days have 
elapsed after receipt by the Congress of the certification required by 
22 U.S.C. 2776(c)(1) involving the North Atlantic Treaty Organization, 
any member country of the Organization, or Australia, Japan or New 
Zealand or at least 30 calendar days have elapsed for any other 
country; in the case of a license for an export of a commercial 
communications satellite for launch from, and by nationals of, the 
Russian Federation, Ukraine, or Kazakhstan, until at least 15 calendar 
days after the Congress receives such certification.
    (c) Persons who intend to export defense articles and defense 
services pursuant to any exemption in this subchapter under the 
circumstances described in this section must provide written 
notification to the Directorate of Defense Trade Controls and include a 
signed contract and a DSP-83 signed by the applicant, the foreign 
consignee and the end-user.

PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT AND OTHER DEFENSE 
SERVICES

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5. The authority citation for part 124 is revised to read as follows:

    Authority: Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR 1977 Comp. 
p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-261.


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6. Section 124.11 is revised to read as follows:


Sec.  124.11  Congressional certification pursuant to Section 36(d) of 
the Arms Export Control Act.

    (a) The Arms Export Control Act requires that a certification be 
provided to the Congress prior to the granting of any approval of a 
manufacturing license agreement or technical assistance agreement as 
defined in Sections 120.21 and 120.22 respectively for the 
manufacturing abroad of any item of significant military equipment (see 
Sec.  120.7 of this subchapter) that is entered into with any country 
regardless of dollar value. Additionally, any manufacturing license 
agreement or technical assistance agreement providing for the export of 
major defense equipment, as defined in Sec. 120.8 of this subchapter 
shall also require a certification when meeting the requirements of 
Sec.  123.15 of this subchapter.
    (b) Unless an emergency exists which requires the immediate 
approval of the agreement in the national security interests of the 
United States, approval may not be granted until at least 15 calendar 
days have elapsed after receipt by the Congress of the certification 
required by 22 U.S.C. 2776(d)(1) involving the North Atlantic Treaty 
Organization, any member country of that Organization, or Australia, 
Japan or New Zealand or at least 30 calendar days have elapsed for any 
other country. Approvals may not be granted when the Congress has 
enacted a joint resolution prohibiting the export.
    (c) Persons who intend to export defense articles and defense 
services pursuant to any exemption in this subchapter under the 
circumstances described in this section and section 123.15 must provide 
written notification to the Directorate of Defense Trade Controls and 
include a signed contract and a DSP-83 signed by the applicant, the 
foreign consignee and the end-user.

PART 126--GENERAL POLICIES AND PROVISIONS

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7. The authority citation for part 126 is revised to read as follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Pub.L. 90-629, 90 Stat. 
744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); E.O. 11958, 42 FR 
4311; 3 CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 287c; E.O. 
12918, 59 FR 28205, 3 CFR, 1994 Comp. p. 899.


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8. Section 126.5 is amended by revising paragraphs (b) introductory 
text, (6), (10), (13), and (18), (c)(1), and note 2, and by adding 
paragraph (b)(21) to read as follows:


Sec.  126.5  Canadian exemptions.

* * * * *
    (b) Permanent and temporary export of defense articles. Except as 
provided below, District Director of Customs and postmasters shall 
permit, when for end-use in Canada by Canadian Federal or Provincial 
governmental authorities acting in an official capacity or by a 
Canadian-registered person or for return to the United States, the 
permanent and temporary export to Canada without a license of defense 
articles and related technical data identified in 22 CFR 121.1. The 
above exemption is subject to the following limitations: Defense 
articles and related technical data, and defense services identified in 
paragraphs (b)(1) through (b)(21) of this section and exports that 
transit third countries. Such limitations also are subject to meeting 
the requirements of this subchapter, (to include 22 CFR 120.1(c) and 
(d), parts 122 and 123 (except insofar as exemption from licensing 
requirements is herein authorized) and Section 126.1, and the 
requirement to obtain non-transfer and use assurances for all 
significant military equipment. For purposes of this section, 
``Canadian-registered person'' is

[[Page 34655]]

any Canadian national (including Canadian business entities organized 
under the laws of Canada), dual citizen of Canada and a third country 
(subject to section 126.1), and permanent resident registered in Canada 
in accordance with the Canadian Defense Production Act, and such other 
Canadian Crown Corporations identified by the Department of State in a 
list of such persons publicly available through the Internet Web site 
of the Directorate of Defense Trade Controls and by other means. The 
defense articles, related technical data, and defense services 
identified in 22 CFR 121.1 continuing to require a license are:
* * * * *
    (6) Firearms, close assault weapons and combat shotguns listed in 
Category I.
* * * * *
    (10) All Category VIII(a) items, and developmental aircraft, 
engines and components identified in Category VIII(f).
* * * * *
    (13) Nuclear radiation measuring devices manufactured to military 
specifications listed in Category XVI(c).
* * * * *
    (18) Nuclear weapons, design and testing equipment listed in 
Category XVI.
* * * * *
    (21) Man-portable air defense systems, and their parts and 
components, and technical data for such systems covered by Category IV.
    (c) Defense service exemption. A defense service is exempt from the 
licensing requirements of part 124 of this subchapter, when the 
following criteria can be met.
    (1) The item, technical data, defense service and transaction is 
not identified in paragraphs (b)(1) through (21) of this section; and
* * * * *

Notes to Sec. 126.5

* * * * *
    2. Additional exemptions exist in other sections of this subchapter 
that are applicable to Canada, for example Secs. 123.9, 125.4 and 
124.2, which allows for the performance of defense services related to 
training in basic operations and maintenance, without a license, for 
defense articles lawfully exported, including those identified in 
paragraphs (b)(1) through (21) of this section.

PART 127--VIOLATIONS AND PENALTIES

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9. The authority citation for part 127 is amended to read as follows:

    Authority: Secs. 2, 38, and 42, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2791); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Com. 
p. 79; 22 U.S.C. 401; 22 U.S.C. 2651a; 22 U.S.C. 2779a; 22 U.S.C. 
2780.

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10. Section 127.12 is amended by revising paragraph (g) as follows:


Sec.  127.12  Voluntary disclosures.

* * * * *
    (g) Voluntary disclosures should be sent to the Office of Defense 
Trade Controls Compliance, Directorate of Defense Trade Controls. 
Exporters should consult the Directorate of Defense Trade Controls Web 
site at http://www.pmdtc.org for the appropriate street address.
* * * * *

    Dated: May 10, 2005.
John R. Bolton,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 05-11892 Filed 6-14-05; 8:45 am]
BILLING CODE 4710-25-P