Additional Protocol Regulations, 65120-65153 [E8-25559]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security
• Industry and Security Bureau

[Federal Register Volume 73, Number 212 (Friday, October 31, 2008)]
[Rules and Regulations]
[Pages 65120-65153]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-25559]



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Part III





Department of Commerce





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Bureau of Industry and Security



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15 CFR Parts 781 Through 786



Additional Protocol Regulations; Final Rule

Federal Register / Vol. 73, No. 212 / Friday, October 31, 2008 / 
Rules and Regulations

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Chapter VII, Subchapter D, Parts 781 Through 786

[Docket No. 080212165-81300-02]
RIN 0694-AD26


Additional Protocol Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: This final rule implements the provisions of the Protocol 
Additional to the Agreement Between the United States of America and 
the International Atomic Energy Agency (IAEA) for the Application of 
Safeguards in the United States of America (the ``Additional 
Protocol''). The Additional Protocol is an agreement between the United 
States and the IAEA to allow monitoring and reporting of certain civil 
nuclear fuel cycle-related activities.
    The Department of Commerce's Bureau of Industry and Security (BIS) 
is establishing these Additional Protocol Regulations (APR) to 
implement the provisions of the Additional Protocol affecting U.S. 
industry and other U.S. persons engaged in certain civil nuclear fuel 
cycle-related activities, which are not regulated by the U.S. Nuclear 
Regulatory Commission (NRC) or its domestic Agreement States, and are 
not located on certain U.S. government locations. The APR describe the 
requirement to report such activities to BIS, the scope and conduct of 
IAEA complementary access to locations at which such civil nuclear fuel 
cycle-related activities take place, and the role of BIS in 
implementing the Additional Protocol in the United States. The impact 
of the APR on U.S. industry and other U.S. persons involves the 
submission of initial reports, annual update reports, and other 
reporting requirements, as well as on-site activities in conjunction 
with complementary access. Other U.S. Government agencies issuing 
regulations to implement other provisions of the Additional Protocol 
include the Nuclear Regulatory Commission, the Department of Energy, 
and the Department of Defense. On July 25, 2008, BIS published a 
proposed rule that requested comments on the proposed establishment of 
the APR. BIS received comments from one respondent and has reviewed 
these comments and considered them in its preparation of this final 
rule.

DATES: This rule is effective October 31, 2008. Although there is no 
formal comment period, public comments on this regulation are welcome 
on a continuing basis.

ADDRESSES: You may submit comments, identified by RIN 0694-AD26, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the on-line instructions for submitting comments.
     E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-
AD26'' in the subject line of the message.
     Fax: (202) 482-3355. Please alert the Regulatory Policy 
Division, by calling (202) 482-2440, if you are faxing comments.
     Mail or Hand Delivery/Courier: Willard Fisher, U.S. 
Department of Commerce, Bureau of Industry and Security, Regulatory 
Policy Division, 14th St. & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230, ATTN: RIN 0694-AD26.

FOR FURTHER INFORMATION CONTACT: For questions of a general or 
regulatory nature, contact the Regulatory Policy Division, telephone: 
(202) 482-2440. For program information on reports and complementary 
access, contact Jill Shepherd, Treaty Compliance Division, Office of 
Nonproliferation and Treaty Compliance, telephone: (202) 482-1001. For 
legal questions, contact Rochelle Woodard, Office of the Chief Counsel 
for Industry and Security, telephone: (202) 482-5301.

SUPPLEMENTARY INFORMATION:

Background

I. Origins and Overview of the Additional Protocol

    The requirement for a comprehensive international safeguards system 
to prevent the spread of nuclear weapons was first established by the 
Treaty on the Non-Proliferation of Nuclear Weapons (NPT). The NPT was 
signed by the United States on July 1, 1968, and entered into force on 
March 5, 1970. The treaty banned nuclear weapon states (NWS) from 
transferring nuclear weapons to non-nuclear weapon states (NNWS) or 
assisting NNWS in acquiring such weapons. It also banned NNWS from 
manufacturing or acquiring nuclear weapons and stipulated that each 
NNWS Party to the NPT would undertake to accept safeguards, as set 
forth in an agreement to be negotiated and concluded with the 
International Atomic Energy Agency (IAEA), which serves as the official 
international verification authority for the implementation of 
safeguards agreements concluded pursuant to the NPT. Although NWS, 
including the United States, are not obligated under the NPT to accept 
IAEA safeguards, all have voluntarily offered to accept safeguards on 
certain activities to encourage NNWS to meet their obligations. The 
IAEA completed formulation of detailed provisions for a model NPT 
Safeguards Agreement in 1971. The safeguards system, as embodied in the 
comprehensive safeguards agreements concluded between the IAEA and 
individual NNWS States Parties to the NPT, consists of nuclear material 
accountancy and nuclear material verification measures by which the 
IAEA independently verifies declarations made by individual States 
Parties about their nuclear material and activities to ensure that 
nuclear material inventories and flows have been accurately declared 
and are not being used to further any proscribed purpose.
    During deliberations on the NPT, several major industrialized 
nations expressed concern that the absence of requirements for IAEA 
safeguards in NWS would place NNWS at a commercial and industrial 
disadvantage in developing nuclear energy for peaceful purposes. 
Specifically, the NNWS were concerned that application of safeguards 
would interfere with the efficient operations of their commercial 
activities and would possibly compromise industrial and trade secrets 
as a result of access by IAEA inspectors to their facilities and 
records. In order to allay these concerns, the United States 
voluntarily offered in 1967 to permit the IAEA to apply safeguards to 
civil nuclear facilities in the United States. The U.S. ``Voluntary 
Offer'' is set forth in the ``Agreement Between the United States of 
America and the International Atomic Energy Agency for the Application 
of Safeguards in the United States of America'' (also known as the 
``U.S.-IAEA Safeguards Agreement''). Since then, the other four NWS 
recognized under the NPT (China, France, the Russian Federation, and 
the United Kingdom) also agreed to make all or part of their civil 
nuclear activities eligible for IAEA safeguards.
    The U.S.-IAEA Safeguards Agreement was signed on November 18, 1977, 
and entered into force on December 9, 1980. At that time, the United 
States submitted to the IAEA a list of more than 200 eligible 
facilities for which safeguards could be applied if selected by the 
IAEA. This list included facilities licensed by the U.S. Nuclear 
Regulatory Commission (NRC), as well as eligible Department of Energy 
facilities. The United States has added additional facilities to the 
eligible facilities list

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since that time. Under the U.S.-IAEA Safeguards Agreement, 
approximately eighteen facilities have been selected for safeguards 
inspection and/or monitoring since 1981.
    Although the U.S.-IAEA Safeguards Agreement is based on the model 
safeguards agreement developed by the IAEA, the terms of the U.S.-IAEA 
Safeguards Agreement and the obligations of NNWS parties to the NPT 
differ in several respects. First, the U.S.-IAEA Safeguards Agreement 
excludes nuclear facilities associated with activities of direct 
national security significance. Second, the United States decides which 
civil nuclear facilities are eligible for the full program of 
safeguards procedures (including routine inspections) and the IAEA 
decides which eligible facilities will be selected for the application 
of safeguards, although the IAEA need not select any. Finally, the 
United States has made separate commitments to provide to the IAEA, for 
safeguards purposes, information on exports of nuclear material and 
nuclear-related equipment and materials.
    In the aftermath of the 1991 Persian Gulf War, the IAEA determined 
that Iraq had been engaged in a clandestine nuclear weapons development 
program at locations not directly subject to routine IAEA safeguards 
inspections. The international community determined that the safeguards 
system needed to be strengthened, and negotiated a Model Additional 
Protocol to amend existing bilateral safeguards agreements (i.e., the 
``Model Protocol Additional to the Agreement(s) Between State(s) and 
the International Atomic Energy Agency for the Application of 
Safeguards,'' INFCIRC/540 (Corrected) September 1997). The Model 
Additional Protocol requires enhanced information collection and access 
to sites and other locations involved in nuclear fuel-cycle related 
activities and covers almost all of a state's nuclear fuel cycle, 
thereby providing IAEA inspectors with greater ability to detect 
clandestine nuclear activities in NNWS facilities, sites, and locations 
that are involved in nuclear fuel cycle activities. In an effort to 
encourage adoption of the Additional Protocol among NNWS, the United 
States signed the Additional Protocol on June 12, 1998. In the 
Additional Protocol, the United States accepts all of the measures of 
the Model Additional Protocol, except where their application would 
result in access by the IAEA to activities of direct national security 
significance to the United States or to locations or information 
associated with such activities. By subjecting itself to the same 
safeguards on all of its civil nuclear activities that NNWS are subject 
to (with the exception of those activities of direct national security 
significance), the United States intends to encourage widespread 
adherence to the Model Additional Protocol and demonstrate that 
adherence does not place other countries at a commercial disadvantage.
    The Additional Protocol will enter into force when the United 
States notifies the IAEA that the statutory and constitutional 
requirements for entry into force have been met. These requirements 
include: (1) Ratification, to which the Senate provided advice and 
consent with certain conditions and understandings on March 31, 2004; 
(2) enactment of implementing legislation, which was signed by the 
President on December 18, 2006 (The U.S. Additional Protocol 
Implementation Act of 2006 (Pub. L. 109-401, 120 Stat. 2726 (2006)); 
(3) issuance of an Executive Order, which was issued as Executive Order 
13458 of February 4, 2008 (73 FR 7181, February 6, 2008); (4) issuance 
of agency regulations by the Departments of Commerce, Defense, and 
Energy, and by the Nuclear Regulatory Commission (DOC, DOD, DOE, and 
NRC); and (5) certification by the President that certain Senate 
conditions have been met. The United States' instrument of ratification 
may be deposited with the IAEA only after the President has certified 
that two Senate conditions, which address the application of the 
national security exclusion in Articles 1.b and 1.c of the Additional 
Protocol (i.e., managed access, security and counter-intelligence 
training, and preparation at locations of direct national security 
significance) and the completion of site vulnerability assessments 
concerning activities, locations, and information of direct national 
security significance, will be met within 180 days after deposit of the 
United States' instrument of ratification.
    The Additional Protocol consists of the following articles and 
annexes:

Article 1: Relationship between the Additional Protocol and the 
U.S.-IAEA Safeguards Agreement
Articles 2 and 3: Provision of information
Articles 4 through 10: Complementary access
Article 11: Designation of IAEA inspectors
Article 12: Visas
Article 13: Subsidiary arrangements
Article 14: Communications systems
Article 15: Protection of confidential information
Article 16: Annexes
Article 17: Entry into force
Article 18: Definitions
Annex I: List of activities referred to in the Additional Protocol
Annex II: List of specified equipment and non-nuclear material for 
reporting of exports and imports.

    The Additional Protocol requires the United States to declare to 
the IAEA a number of nuclear fuel cycle-related items, materials, and 
activities that may be used for peaceful nuclear purposes, but that 
also could be necessary elements for a nuclear weapons program. In 
order to obtain the information necessary to complete the U.S. 
declaration to the IAEA, the U.S. Government must collect reports from 
U.S. industry and other U.S. persons. U.S. declarations submitted under 
the Additional Protocol will provide the IAEA with information about 
additional aspects of the U.S. civil nuclear fuel cycle, including: 
mining and concentration of nuclear ores; nuclear-related equipment 
manufacturing, assembly, or construction; imports, exports, and other 
activities involving certain source material (i.e., source material 
that has not reached the composition and purity suitable for fuel 
fabrication or for being isotopically enriched); imports and exports of 
specified nuclear equipment and non-nuclear material; nuclear fuel 
cycle-related research and development activities not involving nuclear 
material; and other activities involving nuclear material not currently 
subject to the U.S.-IAEA Safeguards Agreement.
    Within 180 days after deposit of the United States' instrument of 
ratification of the Additional Protocol, the United States must submit 
to the IAEA a declaration containing information compiled from the 
Initial Reports submitted to BIS in accordance with the requirements of 
section 783.1(a) of the APR. Thereafter, by May 15th of each succeeding 
year, the United States must submit to the IAEA a declaration 
containing an annual update to the information contained in previous 
U.S. declarations to the IAEA. The U.S. annual declaration to the IAEA 
will contain information compiled, for the most part, from the Annual 
Update Reports submitted to BIS in accordance with the requirements of 
section 783.1(b) of the APR.
    The Additional Protocol provides that there shall be no mechanistic 
or systematic verification of information contained in the U.S. 
declaration (e.g., there is no provision for routine inspections). 
However, the United States is required to provide the IAEA with access 
(referred to as ``complementary access'') to civil nuclear fuel cycle-
related locations and activities, under certain circumstances, as 
defined in the Additional Protocol. Such access is designed to ensure 
the absence of undeclared nuclear material and activities at declared 
sites where nuclear facilities or materials are located

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or to address a question about the completeness or correctness of the 
U.S. declaration or an inconsistency related to the information 
contained therein. In the latter instance, access generally will be 
requested only if a question or inconsistency in the U.S. declaration 
cannot be resolved through consultation between the United States and 
the IAEA. The APR contain requirements administered by the Department 
of Commerce's Bureau of Industry and Security to implement the 
Additional Protocol. Additional U.S. obligations under the Additional 
Protocol are administered by other U.S. government agencies as 
designated by the President of the United States.
A. Part 781--General Information and Overview of the APR
    The Additional Protocol Regulations (15 CFR chapter VII, subchapter 
D), or APR, implement certain obligations of the United States under 
the Additional Protocol. Part 781 contains definitions of terms used in 
the APR, describes the purpose and scope of the APR, and provides an 
overview of the activities regulated under the APR.
B. Part 782--General Information Regarding Reporting Requirements and 
Procedures
    The Additional Protocol augments the existing U.S.-IAEA Safeguards 
Agreement by requiring the United States to provide the IAEA with 
information on civil nuclear and nuclear-related items, materials, and 
activities not presently covered by the U.S.-IAEA Safeguards Agreement. 
The items, materials, and activities that must be declared include the 
following: Mining and milling activities involving the production or 
processing of materials that could serve as feed material for the civil 
nuclear fuel cycle (i.e., uranium and thorium); nuclear-related 
equipment manufacturing; exports and imports of nuclear-related 
equipment and nuclear-related non-nuclear material; and civil nuclear 
fuel cycle-related research and development (R&D) activities not 
involving nuclear material. To enable the United States to collect the 
information necessary to prepare the U.S. declaration to the IAEA, BIS 
is publishing the APR to establish reporting requirements for U.S. 
industry and other U.S. persons concerning civil nuclear and nuclear-
related items, materials, and activities that must be declared under 
the Additional Protocol.
    Part 782 of the APR contains a brief overview of the reporting and 
compliance review requirements in the APR, identifies who is 
responsible for submitting the reports required under the APR, and 
provides information on how to determine which activities are subject 
to the APR reporting requirements, including instructions on where and 
how to submit activity determination requests to BIS. Part 782 also 
explains how to obtain the forms needed to submit reports required by 
the APR and where to submit the reports.
C. Part 783--Reporting Requirements for Nuclear Fuel Cycle-Related 
Activities Not Involving Nuclear Materials
    Part 783 contains a comprehensive description of the reporting 
requirements under the APR, including which activities must be 
reported, who must submit reports, the types of reports that must be 
submitted (e.g., Initial Report, Annual Update Report, Import 
Confirmation Report, Supplemental Information Report--the latter will 
be submitted in response to BIS notification of an IAEA request for 
amplification or clarification of information), the types of changes 
that will require the submission of an Amended Report to BIS, when a No 
Changes Report may be submitted in lieu of an Annual Update Report, the 
APR forms required and the procedures that must be followed to prepare 
and submit these reports, and the deadlines for submitting these 
reports to BIS.
    Section 783.1(a) of the APR establishes initial reporting 
requirements under the APR. You must submit an Initial Report to BIS, 
no later than December 1, 2008, if you are engaged in any of the civil 
nuclear fuel cycle-related activities described in section 783.1(a) of 
the APR on October 31, 2008. In this instance, your Initial Report must 
describe only those activities in which you are engaged as of October 
31, 2008, except that the description of activities involving uranium 
hard-rock mines must include any such mines that were closed down 
during calendar year 2008 (up to and including October 31, 2008 as well 
as mines that were in either operating or suspended status on October 
31, 2008. The period of time covered by your Initial Report must 
include calendar year 2008 (up to and including October 31, 2008).
    For any calendar year that follows calendar year 2008, you must 
submit an Initial Report to BIS if you commenced civil nuclear fuel 
cycle-related activities described in section 783.1(a) of the APR at 
your location, during the previous calendar year, and have not 
previously reported such activities to BIS. You may include such 
activities in your Annual Update Report, in lieu of submitting a 
separate Initial Report, if you also have an Annual Update Report 
requirement for the same location that covers the same reporting period 
(Annual Update Report requirements are addressed in the discussion of 
section 783.1(b), below).
    Section 783.1(a)(1) of the APR contains two separate reporting 
requirements that apply to civil nuclear fuel cycle-related research 
and development activities, as defined in section 781.1 of the APR, 
that do not involve nuclear material. Section 783.1(a)(1)(i) of the APR 
describes the initial reporting requirement for any such civil 
activities that were funded, specifically authorized or controlled by, 
or carried out on behalf of, the United States. Section 783.1(a)(1)(ii) 
of the APR describes the initial reporting requirement for any such 
activities that were specifically related to civil enrichment, 
reprocessing of nuclear fuel, or the processing of intermediate or 
high-level waste containing plutonium, high enriched uranium or 
uranium-233 and that were not funded, specifically authorized or 
controlled by, or carried out on behalf of the United States. Reports 
on these activities must include a general activity description and 
location information. The provisions of section 783.1(a)(1)(i) and 
(a)(1)(ii) are intended to address the information requirements 
described in Articles 2.a(i) and 2.b(i), respectively, of the 
Additional Protocol.
    Section 783.1(a)(2) of the APR describes the initial reporting 
requirement for civil nuclear-related manufacturing, assembly, and 
construction activities (e.g., the manufacture of centrifuge rotor 
tubes, diffusion barriers, zirconium tubes, nuclear grade graphite, and 
reactor control rods). The specific activities subject to this APR 
reporting requirement are listed in detail in Supplement No. 2 to Part 
783 of the APR, which corresponds to Annex I of the Additional 
Protocol. For these locations, the APR require a description of the 
scale of operations for each location engaged in any of the activities 
described in Supplement No. 2 to Part 783. This information need not be 
detailed, but should include the organization's name, location, a brief 
description of operations, and the estimated current annual production. 
The provisions of section 783.1(a)(2) are intended to address the 
information requirements described in Article 2.a(iv) of the Additional 
Protocol.
    Section 783.1(a)(3) of the APR describes the initial reporting 
requirement for U.S. uranium hard-rock mining activities, consistent 
with

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information requirements described in Article 2.a(v) of the Additional 
Protocol. Uranium hard-rock mines are required to report to BIS their 
location, operational status, estimated annual production capacity, and 
current annual production. For Initial Reports submitted during 
calendar year 2008, this reporting requirement applies to any mines 
that were closed down during that calendar year (up to and including 
October 31, 2008), as well as mines in either operating or suspended 
status on October 31, 2008. Mines that were closed down prior to 
calendar year 2008 do not have a reporting obligation.
    Section 783.1(b) of the APR establishes annual reporting 
requirements under the APR. If you submit an Initial Report to BIS, in 
accordance with Section 783.1(a) of the APR, and your Initial Report 
does not indicate that all civil nuclear fuel cycle-related activities 
described therein have ceased at your location, section 783.1(b) of the 
APR requires that you submit an Annual Update Report to BIS for each 
calendar year that follows the year covered by your Initial Report. 
This Annual Update Report requirement will continue to apply for as 
long as you engage in activities subject to the APR reporting 
requirements. If your location subsequently ceases to engage in 
activities subject to the APR reporting requirements, you will still be 
required to submit an Annual Update Report covering the calendar year 
in which you ceased to engage in such activities. Section 783.1(b)(2) 
of the APR provides that a No Changes Report may be submitted, in lieu 
of an Annual Update Report, when there are no changes with respect to 
your location and civil nuclear fuel cycle-related activities during 
the previous calendar year. If your Initial Report or most recent 
Annual Update Report indicates that all civil nuclear fuel cycle-
related activities described therein have ceased at your location, and 
no other reportable activities have occurred during the previous 
calendar year, then you will not have a reporting requirement under 
Section 783.1(a) or (b) of the APR.
    Initial Reports describing reportable civil nuclear fuel cycle-
related activities identified in Section 783.1(a) of the APR must be 
submitted to BIS no later than December 1, 2008, if you are engaged in 
any such civil nuclear fuel cycle-related activities on October 31, 
2008. Any such activities that commence after October 31, 2008 must be 
reported to BIS no later than January 31 of the year following the 
calendar year in which the activities took place. If you are subject to 
an Annual Update Report requirement for the same location and covering 
the same reporting period, you may include these additional activities 
in your Annual Update Report, in lieu of submitting a separate Initial 
Report. Annual Update Reports must be submitted to BIS by January 31st 
of the year following any calendar year in which reportable fuel cycle-
related activities took place. No Changes Reports must be submitted to 
BIS by January 31st of the year following any calendar year in which 
reportable nuclear fuel cycle-related activities took place.
    Section 783.1(c) of the APR describes the reporting requirements 
that apply to imports of equipment or non-nuclear material identified 
in Supplement No. 3 to Part 783 of the APR. The equipment and non-
nuclear material in Supplement No. 3 are derived from the Nuclear 
Suppliers Group (NSG) Trigger List (IAEA INFCIRC/254/Rev.8/Part 1, 
Annex B). This List is included in Annex II of the Additional Protocol 
and consists of material, equipment, and technology that is specially 
designed or prepared for the processing, use, or production of special 
nuclear material. You will be notified by BIS if an Import Confirmation 
Report is required under the APR. BIS will provide such notification 
only upon receipt of a request from the IAEA for information to verify 
imports. For each import of equipment or non-nuclear material listed in 
Supplement No. 3 to Part 783, you must submit an Import Confirmation 
Report to BIS no later than 30 calendar days following the date that 
you receive notification of this requirement. The provisions of section 
783.1(c) are intended to address the information requirements described 
in Article 2.a(ix)(b) of the Additional Protocol.
    Section 783.1(d) of the APR describes the requirements that apply 
to a Supplemental Information Report. If the IAEA specifically requests 
amplification or clarification concerning any information provided in 
the U.S. declaration that is based on your report(s), BIS will send you 
written notification requiring that you report to BIS additional 
information concerning the activities that you previously reported and 
any other activities conducted at your location or building that would 
be relevant for the purpose of addressing the IAEA's request for 
amplification or clarification of information.
    Section 783.2 of the APR describes the circumstances under which an 
Amended Report must be submitted to BIS. Section 783.2(a) of the APR 
requires that an Amended Report be submitted to BIS no later than 30 
calendar days following the date that you discover an error or omission 
in your most recent report that involves information concerning an 
activity subject to the reporting requirements in section 783.1(a) or 
(b) of the APR. Section 783.2(b) of the APR requires that an Amended 
Report be submitted to BIS no later than 30 calendar days after any 
changes to company and location information, such as the company's 
designated contact person (for reporting and complementary access 
purposes), the name or mailing address of the company, the owner/
operator of the location, or the owner of the company. Section 783.2(d) 
of the APR requires that an Amended Report be submitted to BIS no later 
than 30 calendar days following the date that you received written 
notification from BIS to provide information requested by the IAEA 
following complementary access to the location.
D. Part 784--Complementary Access
    Part 784 of the APR describes the purpose of complementary access 
by the IAEA and identifies the types of locations that may be subject 
to complementary access under the APR. Any location that is required to 
submit an Initial Report, Annual Update Report, or No Changes Report to 
BIS, pursuant to Part 783 of the APR, is a reportable location and may 
be subject to complementary access by the IAEA. The fact that a 
location is required to submit a report to BIS does not automatically 
trigger complementary access by the IAEA, although it may provide the 
basis for complementary access. Information that has been reported to 
BIS and included in the U.S. declaration will be analyzed by the IAEA 
before the IAEA makes a decision on whether or not to request 
complementary access to a particular location. In addition to providing 
the IAEA with complementary access to reportable locations, Part 784 of 
the APR provides that other locations specified by the IAEA may be 
subject to complementary access.
    The specific purpose of complementary access is location dependent. 
In the case of uranium hard-rock mine locations, the purpose of 
complementary access is limited to enabling the IAEA to verify, on a 
selective basis, the absence of undeclared nuclear material and nuclear 
related activities. For all other locations subject to the APR (e.g., 
locations involved in reportable civil nuclear fuel cycle-related 
research and development or manufacturing activities, other locations 
specified by the IAEA), the purpose of complementary access is

[[Page 65124]]

limited to allowing the IAEA to resolve questions relating to the 
correctness and completeness of the information provided in the U.S. 
declaration or to resolve inconsistencies relating to that information. 
Complementary access normally will not be scheduled for the latter type 
of location until after the IAEA has provided the United States with an 
opportunity to clarify or resolve the question or inconsistency in the 
U.S. declaration.
    Part 784 of the APR defines the role of BIS in notifying locations 
that will be subject to complementary access and acting as host to the 
IAEA Team during complementary access. A BIS Host team (augmented by 
other agency representatives, as appropriate) will accompany the IAEA 
inspectors during their activities at the location. In addition, a BIS 
Advance Team, upon receiving advance notice from the IAEA of 
complementary access, may deploy to the location to assist in preparing 
personnel and implementing appropriate measures to protect confidential 
business and other critical information.
    Part 784 also provides specific information on the scope and 
conduct of complementary access, such as the kinds of activities that 
may be carried out by the IAEA Team (e.g., the circumstances under 
which the IAEA Team will be granted physical access to records and 
visual access to facilities). In addition, Part 784 describes the 
circumstances under which the Host Team will implement managed access 
measures during IAEA complementary access. Managed access will protect 
activities of direct national security significance to the United 
States, as well as locations or information associated with such 
activities. It is also designed to prevent the dissemination of 
proliferation sensitive information, to meet safety or physical 
protection requirements, and to protect proprietary or commercially 
sensitive information.
E. Part 785--Enforcement
    Part 785 contains definitions of enforcement-related terms and 
describes the scope of the enforcement activities that are authorized 
under the APR, including the types of violations subject to the APR, 
administrative and criminal proceedings, hearings, representation, 
paperwork, summary decisions, discovery, subpoenas, matters protected 
against disclosure, procedural stipulations, extensions, post-hearing 
submissions, decisions, settlements, payment of assessments, and how to 
report a violation.
F. Part 786--Records and Recordkeeping
    Part 786 describes the APR recordkeeping requirements, including 
the types of records that must be retained, required retention periods, 
acceptable media for record storage, records inspection procedures, 
accessibility of records, and disposal of records.
G. Part 787--Interpretations
    Part 787 is reserved for future interpretations of Parts 781 
through 786 of the APR and also for Subsidiary Arrangements to the 
Additional Protocol.

II. Summary of Public Comments on the July 25, 2008, APR Proposed Rule

    One respondent submitted comments in response to the APR proposed 
rule that the Bureau of Industry and Security (BIS) published in the 
Federal Register July 25, 2008. Following is a summary of these 
comments, along with BIS's responses.
A. Section 783.1--Export Report and Import Confirmation Report
    Comment: The respondent is concerned that the reporting requirement 
in the APR proposed rule that applies to exports and certain imports of 
items listed in Supplement No. 3 to Part 783 of the APR would result in 
the disclosure of sensitive information (e.g., such reports may require 
that the internal components of enrichment equipment be disclosed).
    Response: The reporting of exports of items that are listed in 
Supplement No. 3 to Part 783 of the APR is subject to the regulatory 
authority of the Nuclear Regulatory Commission (NRC). Such items must 
be reported in accordance with the requirements specified by the NRC in 
a final rule that will address AP-related requirements involving the 
NRC's licensees. The NRC rule will provide a list of categories under 
which these items must be reported (i.e., a list of categories that 
will conform with those specified in Supplement No. 3 to Part 783 of 
the APR). The NRC should be contacted if assistance is needed to 
determine which (if any) of these categories would be appropriate for a 
specific item.
    Furthermore, to avoid possible confusion concerning which agency 
(i.e., BIS or the NRC) has regulatory authority over exports that must 
be declared under the AP, section 783.1 of the APR final rule, as 
promulgated by BIS, has excluded export reporting requirements for 
items identified under Supplement No. 3 to Part 783--these reporting 
requirements were described under section 783.1(c) of the APR proposed 
rule. Instead, all exports of these items will be reported in 
accordance with the requirements to be specified in the NRC's final 
rule. Although this export reporting requirement will be administered 
by the NRC, rather than BIS, the NRC final rule is expected to require 
that all such reports be submitted to BIS for processing purposes only. 
BIS will conduct no substantive review of those reports.
    Finally, information on imports of items listed in Supplement No. 3 
to Part 783 of the APR must be provided to BIS only upon receipt of a 
specific request from the IAEA. Specifically, section 783.1(c) of the 
APR final rule (previously, section 783.1(d) in the APR proposed rule) 
provides that an Import Confirmation Report must be submitted to BIS 
only if BIS provides prior written notification to the owner/operator 
of a location. BIS will provide such notification when it receives a 
request from the IAEA for information concerning imports of items 
specified in Supplement No. 3.
B. Part 784--Complementary Access
    Comment: The respondent is concerned that the APR proposed rule 
does not provide a clear standard for determining what constitutes 
confidential business and other critical information, for purposes of 
complementary access, and does not indicate who should make this 
determination. As a remedy, the respondent recommends that the APR 
provide the operator of a location or site with the opportunity to 
identify such information.
    Response: The determination of what information constitutes 
proprietary or confidential business information for the purpose of 
complementary access to a location in accordance with the requirements 
of the APR is, in the first instance, the responsibility of the owner/
operator of the location. The complementary access provisions in Part 
784 of the APR describe a number of measures that give the owner/
operator of the location an opportunity to provide input on this 
question.
    First, section 784.1(d)(4) of the APR provides for the dispatch of 
an advance team, if time and circumstances permit, to provide 
administrative and logistical support for complementary access and to 
assist with the preparation for such access--this service will provide 
an opportunity for the advance team and the owner/operator of the 
location to discuss various means to ensure the protection of 
proprietary or confidential

[[Page 65125]]

business information, as well as ITAR-controlled technology.
    Second, section 784.3(b)(iv) of the APR specifically protects 
personal, proprietary, and business confidential records from 
disclosure, except where the Host Team leader, after receiving input 
from the representatives of the location and consulting with other 
members of the Host Team, determines that access to certain of these 
records is both ``appropriate and necessary to achieve the relevant 
purposes of complementary access,'' as described in section 784.1(b)(1) 
or (b)(2) of the APR.
    Third, section 784.3(d) of the APR provides that visual access by 
the IAEA Team to areas or parts of the location will be allowed, as 
agreed by the Host Team Leader, after the Host Team Leader has 
consulted with the organization's representative (e.g., the owner/
operator of the location).
    Additional measures to protect proprietary or business confidential 
information from disclosure are provided in section 784.3(f) of the 
APR, which describes the implementation of managed access measures 
(more details on the latter are provided in response to the following 
comment).
C. Section 781.1--Definitions of Terms Used in the Additional Protocol 
Regulations (APR)
    Comment: The respondent is concerned that, while the APR proposed 
rule defines ``managed access,'' it does not provide guidance on how 
managed access will be implemented, which may have the unintended 
consequence of compromising proprietary or commercially sensitive 
information during complementary access at a location or site.
    Response: The BIS Host Team will be responsible for implementing 
managed access procedures (e.g., the removal of sensitive papers from 
office spaces and the shrouding of sensitive displays, stores, and 
equipment) at those locations where it has lead agency authority in the 
event of complementary access. These procedures can and will vary, 
based upon the specific circumstances that exist at each location. The 
expectation is that in instances where BIS has lead agency authority 
during complementary access, BIS will work with each location to 
identify what needs to be protected and to devise a plan appropriate to 
the circumstances on the ground at that location. The APR do not 
require locations to develop a managed access plan in advance of 
notification of complementary access. In contrast to locations that are 
subject to the APR, sites that have been selected for IAEA safeguards 
(e.g., DOE or NRC licensed facilities) are required to have a managed 
access or security plan in place at all times. Such sites are much more 
likely to have long-term, standardized managed access procedures in 
place, than are locations subject to the APR. Since the respondent 
indicates that their site falls under the jurisdiction of the NRC, 
rather than BIS, they should seek guidance from the NRC regarding the 
use of managed access at their facility.

Rulemaking Requirements

    1. This final 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, nor shall any person be subject to a penalty for failure 
to comply with a collection of information, subject to the Paperwork 
Reduction Act (PRA), unless that collection of information displays a 
currently valid OMB Control Number. This rule revises an existing 
collection of information subject to the requirements of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This collection has 
been approved by OMB under Control Number 0694-0135 (October 2008). The 
information collection contained in this final rule is part of a joint 
information collection by the Bureau of Industry and Security (BIS) of 
the Department of Commerce (DOC), in accordance with the Additional 
Protocol Regulations (APR) (15 CFR Parts 781-786), and the Nuclear 
Regulatory Commission (NRC), in accordance with amendments to its 
regulations in 10 CFR Part 75 and 10 CFR Part 110. A total of 
approximately 156 respondents are subject to the information collection 
requirements set forth in these BIS and NRC rules. These information 
collection requirements involve an estimated 3,357 total burden hours 
per annum at a total estimated cost of $139,142 per annum. The 
estimated total burden hours per annum include the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information.
    Public comment is sought regarding: whether this collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; the accuracy of the burden estimate; ways to enhance the 
quality, utility, and clarity of the information to be collected; and 
ways to minimize the burden of the collection of information, including 
through the use of automated collection techniques or other forms of 
information technology. Send comments regarding this burden estimate or 
any other aspects of this collection of information, including 
suggestions for reducing the burden, to Jasmeet Seehra, Office of 
Management and Budget (OMB), by e-mail to Jasmeet_K._
Seehra@omb.eop.gov or by fax to (202) 395-7285, and to Willard Fisher, 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, as indicated in the ADDRESSES section of this rule.
    The DOC's Office of Strategic Industries and Economic Security 
(SIES) conducted a study in order to obtain an estimate of the number 
of U.S. companies, organizations, and other U.S. persons that would be 
subject to reporting requirements under the BIS and NRC rules. This 
study, along with reviews conducted by the NRC on activities conducted 
by its licensees, indicated that potentially 119 locations and 10 sites 
at International Atomic Energy Agency (IAEA) Selected Facilities from 
the U.S. Eligible Facilities List licensed by the NRC (an estimated 
total of 129 respondents) will have reporting requirements pursuant to 
DOC and NRC regulations under the Additional Protocol.
    The information collection requirements in the BIS and/or NRC rules 
consist of the following activities: (1) Additional Protocol (AP)-
related reporting activities (e.g., activities involving the completion 
and submission of AP-related reports using forms contained in handbooks 
described below), (2) complementary access activities (e.g., activities 
involving IAEA inspection team access to locations and sites subject to 
AP-related reporting requirements), and (3) compliance review 
activities (e.g., activities involving BIS requests for information 
from persons and locations subject to the APR to determine compliance 
with APR reporting and recordkeeping requirements).
    The estimated information collection burden associated with the AP-
related reporting activities is expected to total 2,161 burden hours 
per year, at a total cost to respondents of $96,467 per annum, as 
follows: 2,161 burden hours x $37.20/hour (employee salaries) x 1.2 
(20% overhead) = $96,467 estimated annual cost.
    The estimated information collection burden associated with the 
complementary access activities is expected to total 1,153 burden hours 
per year, at a total cost to respondents of $32,070 per annum, as 
follows: First, 576.33 (burden hours per complementary access) x 2 
(locations per calendar year) = 1,153 total burden

[[Page 65126]]

hours and, second, $16,035 (estimated cost per complementary access) x 
2 (locations per calendar year) = $32,070 estimated annual cost.
    The estimated information collection burden associated with the 
compliance review activities is expected to total 43 burden hours per 
year, at a total cost to respondents of $1,897 per annum, as follows: 
25 requests x 1.7 hours = 42.5 burden hours x $37.20/hour (employee 
salaries) = $1,581 x 1.2 (20% overhead) = $1,897.20 annual estimated 
cost.
    In addition, this final rule contains a recordkeeping requirement 
of 3 years, which involves a total estimated recordkeeping cost of 
$8,707.50 per annum, as follows: 1.5 square feet (average office space 
occupied by storage cabinet containing AP-related records) x $45/square 
foot (average cost of office space utilized for storage) x 129 reports 
(estimated number of locations required to submit AP-related reports) = 
$8,707.50 annual estimated cost.
    Based on the estimates provided above, the annual burden hours for 
this information collection are expected to total 3,357 burden hours, 
as follows: 2,161 (estimated annual burden hours for AP-related 
reporting activities) + 1,153 (estimated annual burden hours for 
complementary access activities) + 43 (estimated annual burden hours 
for compliance review activities) = 3,357 total estimated annual burden 
hours for all AP-related information collection activities. (Note: The 
AP-related recordkeeping burden estimate is based upon cost of storage 
space rather than burden hours.)
    Based on the estimates provided above, the annual cost of this 
information collection is expected to total $139,142, as follows: 
$96,467 (estimated annual cost for AP-related reporting activities) + 
$32,070 (estimated annual cost for complementary access activities) + 
$1,897.20 (estimated annual cost for compliance review activities) + 
$8,707.50 (estimated annual cost of AP-related recordkeeping 
requirements) = $139,142 total estimated annual cost for all AP-related 
information collection activities.
    The AP requires the United States to declare to the IAEA a number 
of commercial nuclear and nuclear-related items, materials, and 
activities that may be used for peaceful nuclear purposes, but that 
also would be necessary elements for a nuclear weapons program. 
Executive Order (E.O.) 13458 of February 5, 2008, designates the DOC as 
the lead agency responsible for collecting data required under the AP 
from the commercial nuclear industry and other U.S. persons, except for 
data involving activities or locations subject to the licensing 
jurisdiction of the NRC. The E.O. designates the NRC as the lead agency 
responsible for collecting data required under the AP from those 
persons, locations, and sites subject to its licensing jurisdiction. In 
addition, National Security Policy Directive 57 (February 4, 2008) 
designated the DOC as the lead agency responsible for managing the 
collection and aggregation of all data reported to the U.S. Government 
for the purpose of preparing the U.S. AP declaration for submission to 
the IAEA.
    BIS has developed two separate handbooks (one for locations and the 
other for sites of IAEA-selected facilities) that provide guidance on 
how to complete and submit the forms required under the APR. These 
handbooks identify the specific forms that must be included in each 
type of report package that must be submitted to BIS or the NRC. The 
specific forms in each handbook are identified below.

                                                List of Forms Contained in Report Handbook for Locations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Form                                                     Description of information collected on form
--------------------------------------------------------------------------------------------------------------------------------------------------------
AP-1........................................  Certification.
AP-2........................................  Contact Information.
AP-3........................................  Research and Development with U.S. Government (USG) Involvement.
AP-4........................................  Research and Development without U.S. Government Involvement.
AP-5........................................  Nuclear-related manufacturing, assembly and construction activities.
AP-6........................................  Information on uranium hard rock mines.
AP-7........................................  Information on concentration plants.
AP-8........................................  Holdings of impure source materials.
AP-9........................................  Imports and exports of impure source materials.
AP-10.......................................  Holdings of safeguards-exempted materials.
AP-11.......................................  Location of safeguards-terminated materials.
AP-12.......................................  Processing of safeguards-terminated waste materials.
AP-13.......................................  Exports of specified equipment and non-nuclear material.
AP-14.......................................  Imports of specified equipment and non-nuclear material.
AP-15.......................................  Supplemental information report.
AP-16.......................................  Continuation.
AP-17.......................................  No Changes Report.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                                  List of Forms Contained in Report Handbook for Sites
--------------------------------------------------------------------------------------------------------------------------------------------------------
                    Form                                                     Description of information collected on form
--------------------------------------------------------------------------------------------------------------------------------------------------------
AP-A........................................  Certification.
AP-B........................................  Contact Information.
AP-C........................................  Building information.
AP-D........................................  Research and Development with U.S. Government Involvement.
AP-E........................................  Research and Development without U.S. Government Involvement
AP-F........................................  Nuclear-related manufacturing, assembly and construction activities.
AP-G........................................  Information on concentration plants.
AP-H........................................  Holdings of impure source materials.
AP-I........................................  Imports and exports of impure source materials.
AP-J........................................  Holdings of safeguards-exempted materials.
AP-K........................................  Location of safeguards-terminated materials.
AP-L........................................  Processing of safeguards-terminated waste materials.
AP-M........................................  Exports of specified equipment and non-nuclear material.

[[Page 65127]]

 
AP-N........................................  Imports of specified equipment and non-nuclear material.
AP-O........................................  Supplemental information report.
AP-P........................................  Continuation.
AP-Q........................................  No Changes Report.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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, unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Under section 605(b) of the RFA, however, if 
the head of an agency certifies that a rule will not have a significant 
economic impact on a substantial number of small entities, the statute 
does not require the agency to prepare a regulatory flexibility 
analysis. Pursuant to section 605(b), the Chief Counsel for 
Regulations, Department of Commerce, certified to the Chief Counsel for 
Advocacy, Small Business Administration, that this final rule will not 
have a significant economic impact on a substantial number of small 
entities for the reasons explained below. Consequently, BIS has not 
prepared a regulatory flexibility analysis.
    Small entities include small businesses, small organizations and 
small governmental jurisdictions. For purposes of assessing the impacts 
of this final rule on small entities, small entity is defined as: (1) A 
small business according to RFA default definitions for small business 
(based on SBA size standards), (2) a small governmental jurisdiction 
that is a government of a city, county, town, school district or 
special district with a population of less than 50,000, and (3) a small 
organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field. BIS 
has determined that this final rule will affect only the first and 
third categories of small entities (i.e., small businesses and small 
organizations).
    The DOC's Office of Strategic Industries and Economic Security 
(SIES) conducted a study to obtain an estimate of the number of U.S. 
businesses, organizations, and other U.S. persons that would be subject 
to the information collection and recordkeeping requirements that BIS 
and the NRC would have to establish in order to meet U.S. obligations 
under the AP. This study, along with reviews conducted by the NRC on 
activities conducted by its licensees, indicated that potentially 119 
locations and 10 sites at IAEA-Selected Facilities from the U.S. 
Eligible Facilities List licensed by the NRC (an estimated total of 129 
respondents) would have reporting requirements pursuant to DOC and NRC 
regulations under the AP. The study indicated that the majority of the 
businesses or organizations most likely to be impacted by the entry-
into-force of the AP would fall into the following categories: (1) 
Colleges and universities, (2) nuclear fuel manufacturers and utility 
companies, (3) mining and milling companies, and (4) corporate entities 
and contractors involved in research and development, manufacturing, 
assembly and construction activities. Although BIS estimates that the 
majority of these businesses and organizations are substantially sized 
entities, having more than 500 employees, BIS does not have sufficient 
information on these businesses and organizations to definitively 
characterize them as large entities.
    The Small Business Administration (SBA) has established standards 
for what constitutes a small business, with respect to each of the 
Standard Industrial Classification (SIC) code categories. For example, 
a business in the uranium mining industry (NAICS Code: 212291, SIC 
Code: 1094), is considered by SBA to be a small business if it is 
independently owned and operated and not dominant in its field of 
operation and it employs 500 or fewer persons on a full-time basis, 
part-time, temporary, or other basis. The Mine Safety and Health 
Administration (MSHA) estimates that approximately 99.8% of the metal/
non-metal mining industry would qualify as small businesses. However, 
many of the uranium mining and milling entities in the United States 
appear to be subsidiaries of large companies and BIS estimates that 
most of the small entities likely to be impacted by the entry-into-
force of the AP will fall within the other categories of businesses and 
organizations identified in the SIES survey. In addition, BIS is not 
able to determine which SIC code categories apply to the other 
categories of businesses or organizations that are likely to be 
impacted by the entry-into-force of the AP. Therefore, for the purpose 
of assessing the impact of this final rule, BIS assumes that all of the 
129 businesses and organizations likely to be affected are small 
entities.
    Although this final rule will affect a substantial number of small 
entities (i.e., 129 businesses and organizations), the reporting, on-
site verification (i.e., complementary access), compliance review, and 
recordkeeping requirements imposed by this rule will not have a 
significant economic impact on these entities.
    First, this rule establishes reporting requirements in Part 783 of 
the APR that require U.S. industry and U.S. persons to submit data 
needed to prepare U.S. declarations to the IAEA in accordance with U.S. 
obligations under the AP. The U.S. declarations submitted under the AP 
will provide the IAEA with information about additional aspects of the 
U.S. civil nuclear fuel cycle, including the following: Mining and 
concentration of nuclear ores; nuclear-related equipment manufacturing, 
assembly, or construction; imports, exports, and other activities 
involving certain source material (i.e., source material that has not 
reached the composition and purity suitable for fuel fabrication or for 
being isotopically enriched); imports and exports of specified nuclear 
equipment and non-nuclear material; nuclear fuel cycle-related research 
and development activities not involving nuclear material; and other 
activities involving nuclear material not currently subject to the 
U.S.-IAEA Safeguards Agreement. The total estimated annual burden hours 
for these reporting requirements will be 2,161 hours and the total 
estimated annual cost will be $96,467, or $747.81 per respondent.
    Second, this rule establishes on-site verification (i.e., 
complementary access) requirements in Part 784 of the APR. Any location 
required to submit an Initial Report, Annual Update Report, or

[[Page 65128]]

No Changes Report to BIS, pursuant to Part 783 of the APR, will be 
treated as a reportable location under the APR and, as such, may be 
subject to complementary access by the IAEA. The fact that a location 
is required to submit a report to BIS will not automatically trigger 
complementary access by the IAEA, although it may provide the basis for 
complementary access. Information reported to BIS and included in the 
U.S. declaration will be analyzed by the IAEA before the IAEA decides 
whether or not to request complementary access to a particular 
location. In addition to providing the IAEA with complementary access 
to reportable locations, Part 784 of the APR provides that other 
locations specified by the IAEA may be subject to complementary access. 
The specific purpose of complementary access will be location 
dependent. Complementary access to uranium hard-rock mine locations 
will be limited to enabling the IAEA to verify, on a selective basis, 
the absence of undeclared nuclear material and nuclear related 
activities. For all other locations subject to the APR, the purpose of 
complementary access will be limited to allowing the IAEA to resolve 
questions relating to the correctness and completeness of the 
information provided in the U.S. declaration or to resolve 
inconsistencies relating to that information. The total estimated 
annual burden hours for these complementary access requirements will be 
1,153 hours and the total estimated annual cost will be $32,070, or 
$248 per respondent.
    Third, this rule establishes compliance review requirements in 
section 782.3 of the APR that authorize BIS to request information, 
periodically, from persons and locations subject to the APR to 
determine compliance with the APR reporting and recordkeeping 
requirements. Information requested may relate to nuclear fuel cycle 
research and development activities not involving nuclear material, 
nuclear-related manufacturing, assembly or construction activities, or 
uranium hard-rock mining activities as described in Part 783 of the 
APR. Any person or location subject to the APR and receiving such a 
request for information will be required to submit a response to BIS 
within 30 calendar days of receipt of the request. The total estimated 
annual burden hours for these compliance review requirements will be 43 
hours and the total estimated annual cost will be $1,897.20, or $14.70 
per respondent.
    Fourth, this rule establishes recordkeeping provisions in Part 786 
of the APR in accordance with which each person or location required to 
submit a report or correspondence under Parts 782 through 784 of the 
APR must retain all supporting materials and documentation used to 
prepare the report or correspondence. All such supporting materials and 
documentation must be retained by the person or location for three 
years from the due date of the applicable report or for three years 
from the date of submission of the applicable report, whichever will be 
later. Upon request by BIS, the person or location also will be 
required to permit access to and copying of any records related to 
compliance with the requirements of the APR. The total estimated annual 
cost for these APR recordkeeping requirements will be $8,707.50. (Note: 
Since the AP-related recordkeeping burden estimate is based upon the 
cost of storage space rather than the number of burden hours, this 
estimate does not include the total annual burden hours associated with 
the APR recordkeeping requirements.)
    The total estimated annual burden hours required to implement the 
reporting, complementary access, compliance review, and recordkeeping 
requirements described above will be 3,357 burden hours and the total 
estimated annual cost will be $139,142. Although the primary impact of 
these new requirements will affect a substantial number of small 
entities (i.e., 129 businesses and organizations), the total economic 
impact on the affected entities (i.e., $139,142, per annum, for all of 
the affected entities) will not be significant. The average impact per 
entity will be $1,079 (i.e., $139,142 / 129) per annum, which 
represents a small percentage of the net annual revenue of a typical 
small business. Since the requirements that this rule establishes will 
not impose a significant economic impact on a substantial number of 
small entities, BIS did not prepare a regulatory flexibility analysis 
for this rule.
    Finally, the changes made by this rule should be viewed in light of 
the fact that BIS's discretion in formulating the reporting, 
complementary access, compliance review, and recordkeeping requirements 
of the APR is limited by the necessity of meeting U.S. obligations 
under the AP. The AP specifies the information that the United States 
must declare to the IAEA. In drafting the requirements and the forms 
for U.S. locations and U.S. persons to use, BIS has attempted to 
minimize the recordkeeping and reporting burden to ensure that only 
information that the United States must declare to the IAEA will have 
to be