Simplified Network Application Processing System, On-Line Registration and Account Maintenance, 71376-71378 [2010-29482]
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71376
Federal Register / Vol. 75, No. 225 / Tuesday, November 23, 2010 / Proposed Rules
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 100826397–0346–02]
RIN 0694–AE98
Simplified Network Application
Processing System, On-Line
Registration and Account Maintenance
Bureau of Industry and
Security, Commerce.
ACTION: Proposed rule.
AGENCY:
The Bureau of Industry and
Security (BIS) is proposing to
implement an on-line registration
process for obtaining an account to
submit license applications and similar
documents electronically. The current
registration process requires paper and
facsimile submissions. This proposed
rule sets forth the information that
parties registering on-line would be
required to provide to BIS and sets forth
the duties that registered parties would
have with respect to keeping
information in their accounts current.
DATES: Comments must be received by
BIS no later than January 24, 2011.
ADDRESSES: Comments may be
submitted via to any of the following.
• The Federal e-rulemaking portal,
regulations.gov. The regulations.gov
docket number for this rule is: BIS–
2010–0037.
• Via e-mail at
publiccomments@bis.doc.gov—refer to
RIN 0694–AE98 in the subject line.
• Mail or delivery to Regulatory
Policy Division, Room 2705, Bureau of
Industry and Security, U.S. Department
of Commerce, Washington, DC 20230—
refer to RIN 0694–AE98 in the comment.
FOR FURTHER INFORMATION CONTACT:
Thomas W. Andrukonis, Director,
Export Management and Compliance
Division, Office of Exporter Services,
telephone 202.482.6393, e-mail
tandruko@bis.doc.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
erowe on DSK5CLS3C1PROD with PROPOSALS-1
Background
BIS administers an export licensing
program pursuant to the Export
Administration Regulations. In
connection with this program, BIS
requires most parties to submit license
applications, classification requests,
encryption registrations, License
Exception AGR notifications and foreign
national review requests in connection
with the License Exceptions APP and
CIV (herein ‘‘work items’’) electronically
via BIS’s Simplified Network
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Application Processing (SNAP–R)
system. Currently, parties must register
to use that system via a paper- or
facsimile-based process. BIS plans to
replace that registration process with
one that is exclusively on-line.
Organizations or individuals who
submit work items would be referred to
as ‘‘filing entities.’’ Individuals who act
on behalf of filing entities would be
known as ‘‘individual users.’’ For each
filing entity, at least one individual user
would act as an ‘‘account administrator.’’
An account administrator would be able
to submit work items on behalf of his or
her filing entity and would have
additional responsibilities within the
on-line registration system.
An account administrator would have
the ability to add and remove individual
users to or from the account of his or her
filing entity. The account administrator
would also be able to designate other
individual users who are authorized to
act on behalf of the same filing entity as
account administrators or to terminate
an individual user’s account
administrator status. The account
administrator would be able to
deactivate the account of an individual
user and reactivate the account of a
previously deactivated individual user.
The account administrator would be
able to update the filing entity’s
identifying information such as name
and address and any individual user’s
identifying information such as name
and telephone number. The account
administrator would also be able to reset
an individual user’s password.
BIS anticipates that once this system
is in place, the current processes in
which BIS employees create on-line
accounts for filing entities and add or
remove new individual users to or from
a filing entity’s account in response to
written or facsimile communications
would cease. Account administrators for
filing entities would handle routine
changes to the filing entities’ accounts
and BIS personnel would become
involved only if necessary to protect a
government interest such as preventing
misuse of the SNAP–R system or if
necessary to assist someone attempting
to register on-line or administer an
account.
BIS intends to begin operating the online registration system on the date of
publication of the final rule, but
proposes to phase in mandatory use of
on-line registration and account
management according to the following
schedule.
New Filing Entities
On the effective date of the final rule
and for 30 days thereafter, an individual
registering a filing entity that does not
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Sfmt 4702
currently have a SNAP–R account
would be able to use either the existing
paper- and facsimile-based process or
the new on-line registration process
described in the following paragraph.
Beginning 31 days after the effective
date of the final rule, the on-line
registration process would be
mandatory for all new registrants.
Requirement To Designate an Account
Administrator at the Time of Electronic
Registration
A person registering on-line for a
filing entity that does not have a SNAP–
R account, will be required to enter all
of the identifying information for the
filing entity including a certification
that the person is authorized to register
the filing entity and to act as account
administrator for the filing entity as well
as his or her own identifying
information. That person will become
the initial account administrator for that
filing entity.
Deadlines for Designating an Account
Administrator If the Filing Entity Was
Not Registered Electronically
Filing entities that are registered to
use SNAP–R on the effective date of the
final rule and filing entities that elect to
use the paper and facsimile based
process during the first 30 days
following the effective date of the final
rule would be required to designate an
account administrator as described
below.
On the effective date of the final rule
and for 90 days thereafter, any
individual user who is authorized to
submit work items on behalf of a filing
entity would be able to continue to
access SNAP–R, submit new work items
and perform any necessary tasks in
connection with pending work items. In
addition, the first such individual user
who designates himself or herself as the
account administrator would be
required to certify that he or she is
authorized to act as account
administrator and would become the
initial account administrator. BIS would
inform via e-mail all other individual
users who are authorized to act for that
filing entity of the identity of the newly
designated account administrator.
During the period beginning 91 days
after the effective date of the final rule
and ending 180 days after the effective
date of the final rule, no individual user
from a filing entity that does not have
at least one account administrator
would be able to access the SNAP–R
system for any purpose other than to
designate himself or herself as account
administrator for that filing entity and
certify that he or she is authorized to act
as account administrator. As soon as
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Federal Register / Vol. 75, No. 225 / Tuesday, November 23, 2010 / Proposed Rules
one individual user is designated as the
account administrator, that individual
user as well as all of the other
individual users from that filing entity
will regain full SNAP–R access.
Beginning 181 days after the effective
date of the final rule, all filing entity
accounts for which no account
administrator has been designated
would become inactive. To use the
account for any purpose, an individual
would have to log on to the SNAP–R
Web site and furnish all of the
information that would be required to
register a new filing entity.
erowe on DSK5CLS3C1PROD with PROPOSALS-1
Rulemaking Requirements
1. This rule has been determined to be
not significant for purposes of E.O.
12866.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is subject to a penalty
for failure to comply with, a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This regulation
contains a collection previously
approved by OMB under control
number 0694–0096. BIS believes that
this rule will not materially affect the
burden imposed by that collection. Send
comments regarding these burden
estimates or any other aspect of these
collections of information, including
suggestions for reducing the burden, to
Jasmeet Seehra, Office of Management
and Budget (OMB), by e-mail to
jseehra@omb.eop.gov, or by fax to (202)
395–7285; and to the Regulatory Policy
Division, Bureau of Industry and
Security, Department of Commerce,
Room 2705, 14th Street, and
Pennsylvania Ave., NW., Washington,
DC 20230.
3. This rule does not contain policies
with Federalism implications as that
term is defined under E.O. 13132.
4. The Chief Counsel for Regulation of
the Department of Commerce has
certified to the Chief Counsel for
Advocacy of the Small Business
Administration that this proposed rule,
if adopted in final form, would not have
a significant economic impact on a
substantial number of small entities.
Economic Impact
BIS believes that this rule will reduce
the burden on small entities. This rule
will eliminate the current and archaic
practice of using a paper and facsimile
based process for obtaining
authorization to submit work items
electronically. It will also reduce the
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14:36 Nov 22, 2010
Jkt 223001
time between initial submission of
registration information and receipt of
authorization to use the electronic filing
system. Finally, the system will allow
registered filing entities to add or
remove individual users without
waiting for approval from BIS.
BIS implemented a revised version of
its Simplified Network Applications
Processing System (SNAP–R) in October
2006. The SNAP–R system provides a
Web based mechanism for parties to
submit license applications,
classification requests, encryption
registrations, License Exception AGR
notifications and foreign national
review requests in connection with
License Exceptions APP and CIV
electronically and for BIS to respond
electronically to each matter. In October
2008, BIS made use of the SNAP–R
system mandatory except in five
specified circumstances. SNAP–R is the
vehicle through which BIS receives
most of the submissions for which
SNAP–R is available. In calendar year
2009, BIS received 27,245 submissions
via SNAP–R and 55 submissions via
paper. On-line processing provides
advantages to the government and to the
parties submitting work items through
reduced processing times.
Despite these advantages, BIS still
requires parties registering to use the
SNAP–R on-line system and those who
need to make changes to their accounts
to use paper or facsimile transmissions
to do so. A party wishing to register now
obtains a description of the identifying
information that the party must submit
and the text of a certification that the
party must make from the BIS Web site.
The party copies the information onto
its letterhead and sends or faxes the
paper document to BIS. BIS personnel
then assign a company identification
number to the filing entity and a
personal identification number to each
individual user identified on the
submission and communicate those
numbers to the appropriate
representative of the filing entity and to
each individual user. A separate letter
must be sent or faxed to BIS each time
a new individual user needs to be
authorized to file on behalf of the filing
entity and BIS personnel issue a new
personal identification number to that
person via telephone or e-mail. Finally,
a letter must be sent to BIS when an
individual user no longer is authorized
to submit work items on behalf of the
filing entity. BIS personnel then
deactivate that individual user’s
account.
Under the procedure envisioned by
this proposed rule, a potential
individual user, representing a filing
entity would access a Web page where
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he or she would enter the necessary
identifying information about himself or
herself and about the filing entity which
that person represents. That individual
would also certify on-line that he or she
is authorized to register the filing entity
and to act as account administrator for
the filing entity. That individual would
receive both the company identification
number and his or her personal
identification number via e-mail. Upon
receipt of those numbers, that
individual user could submit work
items on behalf of the filing entity. He
or she could also register new
individual users for the filing entity.
Once registered, each such new
individual user could log on and begin
submitting work items.
The process will be entirely Web
based and will not require users to
purchase hardware or software. Parties
who do not have access to the Internet
would not be affected by this rule
because they are exempt from the
requirement to submit work items
electronically and thus would not need
to register to use SNAP–R.
Number of Small Entities
BIS does not collect information about
the size of the entities that submit
license applications, classification
requests, and related submissions via
the SNAP–R system. In 2007, BIS made
an attempt to estimate the number of
small entities that would be affected by
the rule requiring electronic
submissions by the following method.
BIS determined that 1,592 entities
sent in two or more submissions in 2006
(entities that make no more than one
submission per year are exempt from
the electronic filing requirement). By
reviewing public information BIS
determined that 252 of these entities
could not possibly be small entities
because they had more than $100
million in annual sales, had more than
5,000 employees or because they were
United States government agencies. BIS
did not have a basis for determining
whether the remaining 1340 entities
were small entities.
Because many industries may be
involved in exporting, BIS could not
directly relate its data to the ‘‘Small
Business Size Standards Matched to
North American Industry Classification
System’’ (the Standards Table)
published by the Small Business
Administration (SBA). However, BIS
notes that the November 5, 2010,
Standards Table designates business as
small based on either sales or number of
employees, depending on the industry.
The maximum annual sales and
maximum number of employees listed
in that document are $35.5 million and
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Federal Register / Vol. 75, No. 225 / Tuesday, November 23, 2010 / Proposed Rules
erowe on DSK5CLS3C1PROD with PROPOSALS-1
1,500, respectively. Both numbers are
far below the threshold selected by BIS
for screening entries as to size. A few
entries in the Standards Table are based
on having no more than million in
assets, but these entries are financial
institutions that are unlikely to be
exporting the kinds of items that require
a specific authorization from BIS.
Moreover, most of the categories in
the Standards Table for which the sales
limit is relatively high are unlikely to be
affected by this rule because they are
unlikely to engage in export or reexport
transactions that require specific
authorization from BIS. Examples of
small entities at the higher end of the
sales range of the Standards Table
include: Family Clothing Stores, Food
Service Contractors and Home Centers—
$35.5 million each, Forest Fire
Suppression—$17.5 million, New
Single-Family Housing Construction
Contractors—$33.5 million and
Gasoline Stations with Convenience
Stores—$27.0 million.
Conclusion
Based on the information that it does
know, BIS believes that most categories
of small entities identified by the Small
Business Administration are unlikely to
be engaged in the kinds of transactions
that require specific authorization from
BIS and thus would be unlikely to use
BIS’s SNAP–R system. The exemption
from the electronic filing requirement
that BIS’s rules provide for parties
making no more than one submission
per year and parties that lack access to
the Internet tend to further exclude
small entities from the impact of this
rule.
Significantly, the effect of this rule on
all affected entities is likely to be a
reduction in burden because this rule
allows implementation of an electronic
registration procedure for an existing
electronic document filing system. In
doing so, it replaces an existing paper
based registration system, allowing
parties who need to submit documents
to BIS to register to do so in less time.
Existing provisions of the Export
Administration Regulations require
most parties to submit work items
electronically. This rule would not
change that requirement nor would it
change any exceptions to that
requirement. Parties who qualify and
who wish to submit work items on
paper would not be subject to the
registration requirement of this rule.
However, those who either are required
or choose to submit their work items
electronically would no longer be
subjected to a paper based registration
process before they can begin electronic
submissions. In addition, once
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registered with an account
administration in place, filing entities
would no longer have to submit
information to BIS via paper or
facsimile and wait for a response from
BIS in order to add or remove
individual users or to update identifying
information.
List of Subjects in 15 CFR Part 748
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, the Export
Administration Regulations (15 CFR
Parts 730–774) are proposed to be
amended as follows:
1. The authority citation for part 748
continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767,
3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice
of August 12, 2010, 75 FR 50681 (August 16,
2010).
2. Section 748.7 is revised to read as
follows:
§ 748.7 Registering for electronic
submission of license applications and
related documents.
(a) Scope. This section describes the
procedures for registering to submit
electronic documents to BIS. The
procedures in this section apply to
submission of export and reexport
license applications (other than Special
Comprehensive Licenses and Special
Iraq Reconstruction Licenses),
classification requests, encryption
registrations, License Exception AGR
notifications and foreign national
review requests under License
Exceptions APP or CIV.
(b) Registration and Use of BIS’s
Simplified Network Applications
System—Redesign (SNAP–R). Parties
wishing to submit electronically must
log on to [URL to be determined] to
register. Upon initial registration, the
party (the filing entity) will have to
supply the name of the entity that will
be submitting documents electronically
and its address and the name, telephone
number, facsimile number and e-mail
address of the person who will act as
account administrator. The person will
be required to certify that the
information so supplied is correct and
complete, that the person has authority
to register the entity that will be making
electronic submissions and that the
person has authority to act as an
account administrator for that entity.
(c) Role of account administrator. The
account administrator is able to add and
remove individual users to and from the
account of the filing entity for which it
is the account administrator. The
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Sfmt 9990
account administrator can also make
individual users account administrators
and can terminate an individual user’s
administrator status. The account
administrator can deactivate the account
of an individual user and reactivate the
account of a previously deactivated
individual user. The account
administrator can update the filing
entity’s identifying information such as
name and address and any individual
user’s identifying information such as
name, telephone number, facsimile
number and e-mail address. The
account administrator can reset
individual users’ passwords.
(d) Role of individual users. An
individual user may submit to BIS
export and reexport license applications
(other than Special Comprehensive
Licenses and Special Iraq
Reconstruction Licenses), classification
requests, encryption registrations,
License Exception AGR notifications
and foreign national review requests
under License Exceptions APP or CIV.
(e) Effect of submission to BIS. BIS
may refuse to accept an electronic
submission if it has reason to believe
that the individual user making the
submission lacks authority to do so.
However, BIS is not obligated to
conduct any checks to determine
whether an individual user has the
necessary authority and will generally
treat users as acting within their
authority. Acting through their account
administrators, parties have the ability
to remove an individual user when that
individual user is no longer authorized
to make submissions on behalf of that
party to BIS and should do so promptly.
(f) Requirement to keep identifying
information accurate and current—(1)
Filing entities. Filing entities must,
through their account administrators,
update their identifying information
such as name, address and telephone
number in their SNAP–R account as
necessary to keep that information
accurate and current.
(2) Individual users. Individual users
must, through their account
administrators, update their identifying
information such as name, telephone
number, facsimile number and e-mail
address in their SNAP–R accounts as
necessary to keep that information
accurate and current.
Dated: November 15, 2010.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2010–29482 Filed 11–22–10; 8:45 am]
BILLING CODE 3510–33–P
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Agencies
[Federal Register Volume 75, Number 225 (Tuesday, November 23, 2010)]
[Proposed Rules]
[Pages 71376-71378]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-29482]
[[Page 71376]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 748
[Docket No. 100826397-0346-02]
RIN 0694-AE98
Simplified Network Application Processing System, On-Line
Registration and Account Maintenance
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security (BIS) is proposing to
implement an on-line registration process for obtaining an account to
submit license applications and similar documents electronically. The
current registration process requires paper and facsimile submissions.
This proposed rule sets forth the information that parties registering
on-line would be required to provide to BIS and sets forth the duties
that registered parties would have with respect to keeping information
in their accounts current.
DATES: Comments must be received by BIS no later than January 24, 2011.
ADDRESSES: Comments may be submitted via to any of the following.
The Federal e-rulemaking portal, regulations.gov. The
regulations.gov docket number for this rule is: BIS-2010-0037.
Via e-mail at publiccomments@bis.doc.gov--refer to RIN
0694-AE98 in the subject line.
Mail or delivery to Regulatory Policy Division, Room 2705,
Bureau of Industry and Security, U.S. Department of Commerce,
Washington, DC 20230--refer to RIN 0694-AE98 in the comment.
FOR FURTHER INFORMATION CONTACT: Thomas W. Andrukonis, Director, Export
Management and Compliance Division, Office of Exporter Services,
telephone 202.482.6393, e-mail tandruko@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
BIS administers an export licensing program pursuant to the Export
Administration Regulations. In connection with this program, BIS
requires most parties to submit license applications, classification
requests, encryption registrations, License Exception AGR notifications
and foreign national review requests in connection with the License
Exceptions APP and CIV (herein ``work items'') electronically via BIS's
Simplified Network Application Processing (SNAP-R) system. Currently,
parties must register to use that system via a paper- or facsimile-
based process. BIS plans to replace that registration process with one
that is exclusively on-line.
Organizations or individuals who submit work items would be
referred to as ``filing entities.'' Individuals who act on behalf of
filing entities would be known as ``individual users.'' For each filing
entity, at least one individual user would act as an ``account
administrator.'' An account administrator would be able to submit work
items on behalf of his or her filing entity and would have additional
responsibilities within the on-line registration system.
An account administrator would have the ability to add and remove
individual users to or from the account of his or her filing entity.
The account administrator would also be able to designate other
individual users who are authorized to act on behalf of the same filing
entity as account administrators or to terminate an individual user's
account administrator status. The account administrator would be able
to deactivate the account of an individual user and reactivate the
account of a previously deactivated individual user. The account
administrator would be able to update the filing entity's identifying
information such as name and address and any individual user's
identifying information such as name and telephone number. The account
administrator would also be able to reset an individual user's
password.
BIS anticipates that once this system is in place, the current
processes in which BIS employees create on-line accounts for filing
entities and add or remove new individual users to or from a filing
entity's account in response to written or facsimile communications
would cease. Account administrators for filing entities would handle
routine changes to the filing entities' accounts and BIS personnel
would become involved only if necessary to protect a government
interest such as preventing misuse of the SNAP-R system or if necessary
to assist someone attempting to register on-line or administer an
account.
BIS intends to begin operating the on-line registration system on
the date of publication of the final rule, but proposes to phase in
mandatory use of on-line registration and account management according
to the following schedule.
New Filing Entities
On the effective date of the final rule and for 30 days thereafter,
an individual registering a filing entity that does not currently have
a SNAP-R account would be able to use either the existing paper- and
facsimile-based process or the new on-line registration process
described in the following paragraph. Beginning 31 days after the
effective date of the final rule, the on-line registration process
would be mandatory for all new registrants.
Requirement To Designate an Account Administrator at the Time of
Electronic Registration
A person registering on-line for a filing entity that does not have
a SNAP-R account, will be required to enter all of the identifying
information for the filing entity including a certification that the
person is authorized to register the filing entity and to act as
account administrator for the filing entity as well as his or her own
identifying information. That person will become the initial account
administrator for that filing entity.
Deadlines for Designating an Account Administrator If the Filing Entity
Was Not Registered Electronically
Filing entities that are registered to use SNAP-R on the effective
date of the final rule and filing entities that elect to use the paper
and facsimile based process during the first 30 days following the
effective date of the final rule would be required to designate an
account administrator as described below.
On the effective date of the final rule and for 90 days thereafter,
any individual user who is authorized to submit work items on behalf of
a filing entity would be able to continue to access SNAP-R, submit new
work items and perform any necessary tasks in connection with pending
work items. In addition, the first such individual user who designates
himself or herself as the account administrator would be required to
certify that he or she is authorized to act as account administrator
and would become the initial account administrator. BIS would inform
via e-mail all other individual users who are authorized to act for
that filing entity of the identity of the newly designated account
administrator.
During the period beginning 91 days after the effective date of the
final rule and ending 180 days after the effective date of the final
rule, no individual user from a filing entity that does not have at
least one account administrator would be able to access the SNAP-R
system for any purpose other than to designate himself or herself as
account administrator for that filing entity and certify that he or she
is authorized to act as account administrator. As soon as
[[Page 71377]]
one individual user is designated as the account administrator, that
individual user as well as all of the other individual users from that
filing entity will regain full SNAP-R access.
Beginning 181 days after the effective date of the final rule, all
filing entity accounts for which no account administrator has been
designated would become inactive. To use the account for any purpose,
an individual would have to log on to the SNAP-R Web site and furnish
all of the information that would be required to register a new filing
entity.
Rulemaking Requirements
1. This rule has been determined to be not significant for purposes
of E.O. 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor is subject to a penalty for failure to
comply with, a collection of information, subject to the requirements
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA),
unless that collection of information displays a currently valid Office
of Management and Budget (OMB) Control Number. This regulation contains
a collection previously approved by OMB under control number 0694-0096.
BIS believes that this rule will not materially affect the burden
imposed by that collection. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to Jasmeet Seehra,
Office of Management and Budget (OMB), by e-mail to
jseehra@omb.eop.gov, or by fax to (202) 395-7285; and to the Regulatory
Policy Division, Bureau of Industry and Security, Department of
Commerce, Room 2705, 14th Street, and Pennsylvania Ave., NW.,
Washington, DC 20230.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. The Chief Counsel for Regulation of the Department of Commerce
has certified to the Chief Counsel for Advocacy of the Small Business
Administration that this proposed rule, if adopted in final form, would
not have a significant economic impact on a substantial number of small
entities.
Economic Impact
BIS believes that this rule will reduce the burden on small
entities. This rule will eliminate the current and archaic practice of
using a paper and facsimile based process for obtaining authorization
to submit work items electronically. It will also reduce the time
between initial submission of registration information and receipt of
authorization to use the electronic filing system. Finally, the system
will allow registered filing entities to add or remove individual users
without waiting for approval from BIS.
BIS implemented a revised version of its Simplified Network
Applications Processing System (SNAP-R) in October 2006. The SNAP-R
system provides a Web based mechanism for parties to submit license
applications, classification requests, encryption registrations,
License Exception AGR notifications and foreign national review
requests in connection with License Exceptions APP and CIV
electronically and for BIS to respond electronically to each matter. In
October 2008, BIS made use of the SNAP-R system mandatory except in
five specified circumstances. SNAP-R is the vehicle through which BIS
receives most of the submissions for which SNAP-R is available. In
calendar year 2009, BIS received 27,245 submissions via SNAP-R and 55
submissions via paper. On-line processing provides advantages to the
government and to the parties submitting work items through reduced
processing times.
Despite these advantages, BIS still requires parties registering to
use the SNAP-R on-line system and those who need to make changes to
their accounts to use paper or facsimile transmissions to do so. A
party wishing to register now obtains a description of the identifying
information that the party must submit and the text of a certification
that the party must make from the BIS Web site. The party copies the
information onto its letterhead and sends or faxes the paper document
to BIS. BIS personnel then assign a company identification number to
the filing entity and a personal identification number to each
individual user identified on the submission and communicate those
numbers to the appropriate representative of the filing entity and to
each individual user. A separate letter must be sent or faxed to BIS
each time a new individual user needs to be authorized to file on
behalf of the filing entity and BIS personnel issue a new personal
identification number to that person via telephone or e-mail. Finally,
a letter must be sent to BIS when an individual user no longer is
authorized to submit work items on behalf of the filing entity. BIS
personnel then deactivate that individual user's account.
Under the procedure envisioned by this proposed rule, a potential
individual user, representing a filing entity would access a Web page
where he or she would enter the necessary identifying information about
himself or herself and about the filing entity which that person
represents. That individual would also certify on-line that he or she
is authorized to register the filing entity and to act as account
administrator for the filing entity. That individual would receive both
the company identification number and his or her personal
identification number via e-mail. Upon receipt of those numbers, that
individual user could submit work items on behalf of the filing entity.
He or she could also register new individual users for the filing
entity. Once registered, each such new individual user could log on and
begin submitting work items.
The process will be entirely Web based and will not require users
to purchase hardware or software. Parties who do not have access to the
Internet would not be affected by this rule because they are exempt
from the requirement to submit work items electronically and thus would
not need to register to use SNAP-R.
Number of Small Entities
BIS does not collect information about the size of the entities
that submit license applications, classification requests, and related
submissions via the SNAP-R system. In 2007, BIS made an attempt to
estimate the number of small entities that would be affected by the
rule requiring electronic submissions by the following method.
BIS determined that 1,592 entities sent in two or more submissions
in 2006 (entities that make no more than one submission per year are
exempt from the electronic filing requirement). By reviewing public
information BIS determined that 252 of these entities could not
possibly be small entities because they had more than $100 million in
annual sales, had more than 5,000 employees or because they were United
States government agencies. BIS did not have a basis for determining
whether the remaining 1340 entities were small entities.
Because many industries may be involved in exporting, BIS could not
directly relate its data to the ``Small Business Size Standards Matched
to North American Industry Classification System'' (the Standards
Table) published by the Small Business Administration (SBA). However,
BIS notes that the November 5, 2010, Standards Table designates
business as small based on either sales or number of employees,
depending on the industry. The maximum annual sales and maximum number
of employees listed in that document are $35.5 million and
[[Page 71378]]
1,500, respectively. Both numbers are far below the threshold selected
by BIS for screening entries as to size. A few entries in the Standards
Table are based on having no more than million in assets, but these
entries are financial institutions that are unlikely to be exporting
the kinds of items that require a specific authorization from BIS.
Moreover, most of the categories in the Standards Table for which
the sales limit is relatively high are unlikely to be affected by this
rule because they are unlikely to engage in export or reexport
transactions that require specific authorization from BIS. Examples of
small entities at the higher end of the sales range of the Standards
Table include: Family Clothing Stores, Food Service Contractors and
Home Centers--$35.5 million each, Forest Fire Suppression--$17.5
million, New Single-Family Housing Construction Contractors--$33.5
million and Gasoline Stations with Convenience Stores--$27.0 million.
Conclusion
Based on the information that it does know, BIS believes that most
categories of small entities identified by the Small Business
Administration are unlikely to be engaged in the kinds of transactions
that require specific authorization from BIS and thus would be unlikely
to use BIS's SNAP-R system. The exemption from the electronic filing
requirement that BIS's rules provide for parties making no more than
one submission per year and parties that lack access to the Internet
tend to further exclude small entities from the impact of this rule.
Significantly, the effect of this rule on all affected entities is
likely to be a reduction in burden because this rule allows
implementation of an electronic registration procedure for an existing
electronic document filing system. In doing so, it replaces an existing
paper based registration system, allowing parties who need to submit
documents to BIS to register to do so in less time. Existing provisions
of the Export Administration Regulations require most parties to submit
work items electronically. This rule would not change that requirement
nor would it change any exceptions to that requirement. Parties who
qualify and who wish to submit work items on paper would not be subject
to the registration requirement of this rule. However, those who either
are required or choose to submit their work items electronically would
no longer be subjected to a paper based registration process before
they can begin electronic submissions. In addition, once registered
with an account administration in place, filing entities would no
longer have to submit information to BIS via paper or facsimile and
wait for a response from BIS in order to add or remove individual users
or to update identifying information.
List of Subjects in 15 CFR Part 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
Accordingly, the Export Administration Regulations (15 CFR Parts
730-774) are proposed to be amended as follows:
1. The authority citation for part 748 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 12, 2010, 75
FR 50681 (August 16, 2010).
2. Section 748.7 is revised to read as follows:
Sec. 748.7 Registering for electronic submission of license
applications and related documents.
(a) Scope. This section describes the procedures for registering to
submit electronic documents to BIS. The procedures in this section
apply to submission of export and reexport license applications (other
than Special Comprehensive Licenses and Special Iraq Reconstruction
Licenses), classification requests, encryption registrations, License
Exception AGR notifications and foreign national review requests under
License Exceptions APP or CIV.
(b) Registration and Use of BIS's Simplified Network Applications
System--Redesign (SNAP-R). Parties wishing to submit electronically
must log on to [URL to be determined] to register. Upon initial
registration, the party (the filing entity) will have to supply the
name of the entity that will be submitting documents electronically and
its address and the name, telephone number, facsimile number and e-mail
address of the person who will act as account administrator. The person
will be required to certify that the information so supplied is correct
and complete, that the person has authority to register the entity that
will be making electronic submissions and that the person has authority
to act as an account administrator for that entity.
(c) Role of account administrator. The account administrator is
able to add and remove individual users to and from the account of the
filing entity for which it is the account administrator. The account
administrator can also make individual users account administrators and
can terminate an individual user's administrator status. The account
administrator can deactivate the account of an individual user and
reactivate the account of a previously deactivated individual user. The
account administrator can update the filing entity's identifying
information such as name and address and any individual user's
identifying information such as name, telephone number, facsimile
number and e-mail address. The account administrator can reset
individual users' passwords.
(d) Role of individual users. An individual user may submit to BIS
export and reexport license applications (other than Special
Comprehensive Licenses and Special Iraq Reconstruction Licenses),
classification requests, encryption registrations, License Exception
AGR notifications and foreign national review requests under License
Exceptions APP or CIV.
(e) Effect of submission to BIS. BIS may refuse to accept an
electronic submission if it has reason to believe that the individual
user making the submission lacks authority to do so. However, BIS is
not obligated to conduct any checks to determine whether an individual
user has the necessary authority and will generally treat users as
acting within their authority. Acting through their account
administrators, parties have the ability to remove an individual user
when that individual user is no longer authorized to make submissions
on behalf of that party to BIS and should do so promptly.
(f) Requirement to keep identifying information accurate and
current--(1) Filing entities. Filing entities must, through their
account administrators, update their identifying information such as
name, address and telephone number in their SNAP-R account as necessary
to keep that information accurate and current.
(2) Individual users. Individual users must, through their account
administrators, update their identifying information such as name,
telephone number, facsimile number and e-mail address in their SNAP-R
accounts as necessary to keep that information accurate and current.
Dated: November 15, 2010.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2010-29482 Filed 11-22-10; 8:45 am]
BILLING CODE 3510-33-P