Request for Public Comments on the Utilization Rate of Export Licenses Issued by the Bureau of Industry and Security, 11908 [E9-6164]

Agencies

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

[Federal Register Volume 74, Number 53 (Friday, March 20, 2009)]
[Notices]
[Page 11908]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-6164]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

[Docket No. 090129078-9079-01]


Request for Public Comments on the Utilization Rate of Export 
Licenses Issued by the Bureau of Industry and Security

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice of inquiry.

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SUMMARY: A significant percentage of the export licenses issued by the 
Bureau of Industry and Security (BIS) appear to be unused or used for 
less than the quantity or value limits authorized by the license. BIS 
seeks public comment to help it ascertain the reasons for such lack of 
use or under use. BIS is particularly interested in whether 
characteristics of the export license application review process induce 
applicants to apply for greater authorizations than they need and, if 
such is the case, any costs associated with such applications.

DATES: Comments must be received no later than May 4, 2009.

ADDRESSES: Comments may be submitted via e-mail to 
publiccomments@bis.doc.gov. Please refer to ``Utilization Rate of 
Export Licenses Issued'' in the subject line. Comments may also be sent 
to Utilization Rate Study, Office of Technology Evaluation, Room 2705, 
U.S. Department of Commerce, 14th Street and Pennsylvania Avenue, NW., 
Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Jennifer Watts, Office of Technology 
Evaluation, Bureau of Industry and Security, telephone: 202-482-8343; 
fax: 202-482-5361; e-mail jwatts@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    BIS, among its other activities, issues licenses for export of 
items that are subject to the Export Administration Regulations. Most 
such licenses are valid for two years. A recent BIS review of export 
data from the Automated Export System (AES), which is used to record 
actual exports from the United States, indicated that by the end of 
calendar year 2007, forty-eight percent of the licenses issued in 
calendar year 2005 for the export of commodities had not been used at 
all. In addition, some licenses may have been used for less than the 
full quantity or value authorized. Finally, BIS has no basis for 
estimating whether similar lack of use or under utilization exists with 
respect to licenses for the export of software or technology because 
such exports are often intangible and, therefore, not reported in AES. 
BIS is seeking information that would help it determine:
     Whether software and technology export licenses also are 
not used or are underused;
     The reasons that export licenses sometimes are not used or 
are underused; and
     Whether characteristics of the export licensing process 
(e.g., ease or difficulty of use, processing times, degree of 
communication between the government and the applicant, license 
conditions, etc.) contribute to the practice of not using or under-
using export licenses.
    The scope of this inquiry is limited to export licenses. It does 
not encompass reexports, deemed exports or deemed reexports.
    The following kinds of information would be useful to BIS's 
assessment:
     Whether exporters seek an export license prior to receipt 
of a purchase order or letter of intent, and examples of typical 
business cases for seeking a license absent such documentation;
     Detailed information concerning instances when exporters 
have obtained an export license from BIS but then did not use it or 
used it for less than the quantity or value authorized, including 
information on whether the export licensing process impacted the 
transaction, whether sales were lost due to the licensing process and 
the dollar amount of any such lost sales that are directly attributable 
to the licensing process;
     Specific information about whether licenses for the export 
of software or technology are not used or are under used;
     Whether an extension of the validity period of export 
licenses issued by BIS would increase the probability of the 
utilization of licenses; and
     Process improvements that BIS could make to enhance the 
utilization of export licenses (e.g., expedited treatment for 
applications under specific circumstances).
    In the future BIS may seek a more systematic approach (e.g., 
surveys) to contact exporters and document the reasons impacting 
licensing utilization rates to further facilitate the utilization of 
export licenses.

How To Comment

    All comments must be in writing and submitted to one of the 
addresses indicated above. Comments must be received by BIS no later 
than May 4, 2009. BIS may consider comments received after that date if 
feasible to do so, but such consideration can not be assured. All 
comments submitted in response to this notice will be made a matter of 
public record, and will be available for public inspection and copying. 
Anyone submitting business confidential information should clearly 
identify the business confidential portion of the submission and also 
provide a non-confidential submission that can be placed in the public 
record. BIS will seek to protect business confidential information from 
public disclosure to the extent permitted by law.

    Dated: March 16, 2009.
Matthew S. Borman,
Acting Assistant Secretary for Export Administration.
[FR Doc. E9-6164 Filed 3-19-09; 8:45 am]
BILLING CODE 3510-JT-P