Impact of the Implementation of the Chemical Weapons Convention (CWC) on Legitimate Commercial Chemical, Biotechnology, and Pharmaceutical Activities Involving “Schedule 1” Chemicals (Including “Schedule 1” Chemicals Produced as Intermediates) During Calendar Year 2022, 78924-78925 [2022-27952]
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Federal Register / Vol. 87, No. 246 / Friday, December 23, 2022 / Notices
Regulations with knowledge or reason
to know that the item will be, or is
intended to be, exported from the
United States; or
E. Engage in any transaction to service
any item subject to the Regulations that
has been or will be exported from the
United States and which is owned,
possessed or controlled by the Denied
Person, or service any item, of whatever
origin, that is owned, possessed or
controlled by the Denied Person if such
service involves the use of any item
subject to the Regulations that has been
or will be exported from the United
States. For purposes of this paragraph,
servicing means installation,
maintenance, repair, modification or
testing.
Third, pursuant to section 1760(e) of
ECRA and sections 766.23 and 766.25 of
the Regulations, any other person, firm,
corporation, or business organization
related to Cortez-Arguelles by
ownership, control, position of
responsibility, affiliation, or other
connection in the conduct of trade or
business may also be made subject to
the provisions of this Order in order to
prevent evasion of this Order.
Fourth, in accordance with part 756 of
the Regulations, Cortez-Arguelles may
file an appeal of this Order with the
Under Secretary of Commerce for
Industry and Security. The appeal must
be filed within 45 days from the date of
this Order and must comply with the
provisions of part 756 of the
Regulations.
Fifth, a copy of this Order shall be
delivered to Cortez-Arguelles and shall
be published in the Federal Register.
Sixth, this Order is effective
immediately and shall remain in effect
until November 5, 2030.
John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2022–27945 Filed 12–22–22; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 221208–0263]
TKELLEY on DSK125TN23PROD with NOTICE
RIN 0694–XC094
Impact of the Implementation of the
Chemical Weapons Convention (CWC)
on Legitimate Commercial Chemical,
Biotechnology, and Pharmaceutical
Activities Involving ‘‘Schedule 1’’
Chemicals (Including ‘‘Schedule 1’’
Chemicals Produced as Intermediates)
During Calendar Year 2022
Bureau of Industry and
Security, Commerce.
AGENCY:
VerDate Sep<11>2014
20:36 Dec 22, 2022
Jkt 259001
ACTION:
Notice of inquiry.
The Bureau of Industry and
Security is seeking public comments on
the impact that implementation of the
Chemical Weapons Convention, through
the Chemical Weapons Convention
Implementation Act of 1998 and the
Chemical Weapons Convention
Regulations, has had on commercial
activities involving ‘‘Schedule 1’’
chemicals during calendar year 2022.
The purpose of this notice of inquiry is
to collect information to assist BIS in its
preparation of the annual certification to
the Congress on whether the legitimate
commercial activities and interests of
chemical, biotechnology, and
pharmaceutical firms are harmed by
such implementation. This certification
is required under Condition 9 of Senate
Resolution 75 (April 24, 1997), in which
the Senate gave its advice and consent
to the ratification of the Chemical
Weapons Convention.
DATES: Comments must be received by
January 23, 2023.
ADDRESSES: You may submit comments,
identified by regulations.gov docket
number BIS–2022–0033 or by RIN
0694–XC094, using any of the following
methods:
• Federal rulemaking portal (https://
www.regulations.gov). You can find this
notice by searching under its
regulations.gov docket number, which is
BIS–2022–0033;
• Email: PublicComments@
bis.doc.gov. Include RIN 0694–XC094 in
the subject line of the message.
All filers using the portal or email
should use the name of the person or
entity submitting the comments as the
name of their files, in accordance with
the instructions below. Parties
submitting business confidential
information should clearly identify the
business confidential portion at the time
of submission, file a statement justifying
nondisclosure and referring to the
specific legal authority claimed, and
also provide a non-confidential version
of the submission.
For comments (including rebuttal
comments) submitted electronically
containing business confidential
information, the file name of the
business confidential version should
begin with the characters ‘‘BC.’’ Any
page containing business confidential
information must be clearly marked
‘‘BUSINESS CONFIDENTIAL’’ on the
top of that page. The corresponding
non-confidential version of those
comments must be clearly marked
‘‘PUBLIC.’’ The file name of the nonconfidential version should begin with
the character ‘‘P.’’ The ‘‘BC’’ or ‘‘P’’ (as
appropriate) in the file name should be
SUMMARY:
PO 00000
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Fmt 4703
Sfmt 4703
followed by the name of the person or
entity submitting the comments. Any
submissions with file names that do not
begin with a ‘‘P’’ or ‘‘BC’’ will be
assumed to be public and will be made
publicly available through https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For
questions on the Chemical Weapons
Convention requirements for ‘‘Schedule
1’’ chemicals, contact Douglas Brown,
Treaty Compliance Division, Office of
Nonproliferation and Treaty
Compliance, Bureau of Industry and
Security, U.S. Department of Commerce,
(202) 482–5808, Email: Douglas.Brown@
bis.doc.gov. For questions on the
submission of comments, contact
Willard Fisher, Regulatory Policy
Division, Office of Exporter Services,
Bureau of Industry and Security, U.S.
Department of Commerce, (202) 482–
6057, Email: RPD2@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
In providing its advice and consent to
the ratification of the Convention on the
Prohibition of the Development,
Production, Stockpiling, and Use of
Chemical Weapons and Their
Destruction, commonly called the
Chemical Weapons Convention (CWC or
‘‘the Convention’’), the Senate included,
in Senate Resolution 75 (S. Res. 75,
April 24, 1997), several conditions to its
ratification. Condition 9, titled
‘‘Protection of Advanced
Biotechnology,’’ calls for the President
to certify to Congress on an annual basis
that ‘‘the legitimate commercial
activities and interests of chemical,
biotechnology, and pharmaceutical
firms in the United States are not being
significantly harmed by the limitations
of the Convention on access to, and
production of, those chemicals and
toxins listed in Schedule 1.’’ On July 8,
2004, President George W. Bush, by
Executive Order 13346, delegated his
authority to make the annual
certification to the Secretary of
Commerce.
The CWC is an international arms
control treaty that contains certain
verification provisions. In order to
implement these verification provisions,
the CWC established the Organization
for the Prohibition of Chemical
Weapons (OPCW). In order to achieve
the object and purpose of the
Convention and the implementation of
its provisions, the CWC imposes certain
obligations on countries that have
ratified the Convention (i.e., States
Parties), among which are the enactment
of legislation to prohibit the production,
storage, and use of chemical weapons
E:\FR\FM\23DEN1.SGM
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TKELLEY on DSK125TN23PROD with NOTICE
Federal Register / Vol. 87, No. 246 / Friday, December 23, 2022 / Notices
and the establishment of a National
Authority to serve as the national focal
point for effective liaison with the
OPCW and other States Parties. The
CWC also requires each State Party to
implement a comprehensive data
declaration and inspection regime to
provide transparency and to verify that
both the public and private sectors of
the State Party are not engaged in
activities prohibited under the CWC. In
the United States, the Chemical
Weapons Convention Implementation
Act of 1998, 22 U.S.C. 6701 et seq.,
implements the provisions of the CWC.
‘‘Schedule 1’’ chemicals consist of
those toxic chemicals and precursors set
forth in the CWC ‘‘Annex on
Chemicals’’ and in ‘‘Supplement No. 1
to part 712—SCHEDULE 1
CHEMICALS’’ of the Chemical Weapons
Convention Regulations (CWCR) (15
CFR parts 710–722). The CWC
identified these toxic chemicals and
precursors as posing a high risk to the
object and purpose of the Convention.
The CWC (Part VI of the ‘‘Verification
Annex’’) restricts the production of
‘‘Schedule 1’’ chemicals for protective
purposes to two facilities per State
Party: a single small-scale facility and a
facility for production in quantities not
exceeding 10 kg per year. The CWC
Article-by-Article Analysis submitted to
the Senate in Treaty Doc. 103–21
defined the term ‘‘protective purposes’’
to mean ‘‘used for determining the
adequacy of defense equipment and
measures.’’ Consistent with this
definition and as authorized by
Presidential Decision Directive (PDD) 70
(December 17, 1999), which specifies
agency and departmental
responsibilities as part of the U.S.
implementation of the CWC, the
Department of Defense (DOD) was
assigned the responsibility to operate
these two facilities. DOD maintains
strict controls on ‘‘Schedule 1’’
chemicals produced at its facilities in
order to ensure accountability for such
chemicals, as well as their proper use,
consistent with the object and purpose
of the Convention. Although this
assignment of responsibility to DOD
under PDD–70 effectively precluded
commercial production of ‘‘Schedule 1’’
chemicals for ‘‘protective purposes’’ in
the United States, it did not establish
any limitations on ‘‘Schedule 1’’
chemical activities that are not
prohibited by the CWC.
The provisions of the CWC that affect
commercial activities involving
‘‘Schedule 1’’ chemicals are
implemented in the CWCR (see 15 CFR
part 712) and in the Export
Administration Regulations (EAR) (see
15 CFR 742.18 and 15 CFR part 745),
VerDate Sep<11>2014
20:36 Dec 22, 2022
Jkt 259001
both of which are administered by the
Bureau of Industry and Security (BIS).
Pursuant to CWC requirements, the
CWCR restrict commercial production
of ‘‘Schedule 1’’ chemicals to research,
medical, or pharmaceutical purposes.
The CWCR prohibit commercial
production of ‘‘Schedule 1’’ chemicals
for ‘‘protective purposes’’ because such
production is effectively precluded per
PDD–70, as described above. See 15 CFR
712.2(a).
The CWCR also contain other
requirements and prohibitions that
apply to ‘‘Schedule 1’’ chemicals and/or
‘‘Schedule 1’’ facilities. Specifically, the
CWCR:
(1) Prohibit the import of ‘‘Schedule
1’’ chemicals from States not Party to
the Convention (15 CFR 712.2(b));
(2) Require annual declarations by
certain facilities engaged in the
production of ‘‘Schedule 1’’ chemicals
in excess of 100 grams aggregate per
calendar year (i.e., declared ‘‘Schedule
1’’ facilities) for purposes not prohibited
by the Convention (15 CFR 712.5(a)(1)
and (a)(2));
(3) Provide for government approval
of ‘‘declared Schedule 1’’ facilities (15
CFR 712.5(f));
(4) Require 200 days advance
notification of the establishment of new
‘‘Schedule 1’’ production facilities
producing greater than 100 grams
aggregate of ‘‘Schedule 1’’ chemicals per
calendar year (15 CFR 712.4);
(5) Provide that ‘‘declared Schedule
1’’ facilities are subject to initial and
routine inspection by the OPCW (15
CFR 712.5(e) and 716.1(b)(1));
(6) Require advance notification and
annual reporting of all imports and
exports of ‘‘Schedule 1’’ chemicals to, or
from, other States Parties to the
Convention (15 CFR 712.6, 742.18(a)(1)
and 745.1); and
(7) Prohibit the export of ‘‘Schedule
1’’ chemicals to States not Party to the
Convention (15 CFR 742.18(a)(1) and
(b)(1)(ii)).
For purposes of the CWCR (see the
definition of ‘‘production’’ in 15 CFR
710.1), the phrase ‘‘production of a
Schedule 1 chemical’’ means the
formation of ‘‘Schedule 1’’ chemicals
through chemical synthesis, as well as
processing to extract and isolate
‘‘Schedule 1’’ chemicals. The phrase
also encompasses the formation of a
chemical through chemical reaction,
including by a biochemical or
biologically mediated reaction.
‘‘Production of a Schedule 1 chemical’’
is understood, for CWCR declaration
purposes, to include intermediates, byproducts, or waste products that are
produced and consumed within a
defined chemical manufacturing
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78925
sequence, where such intermediates, byproducts, or waste products are
chemically stable and therefore exist for
a sufficient time to make isolation from
the manufacturing stream possible, but
where, under normal or design
operating conditions, isolation does not
occur.
Request for Comments
In order to assist in determining
whether the legitimate commercial
activities and interests of chemical,
biotechnology, and pharmaceutical
firms in the United States are
significantly harmed by the limitations
of the Convention on access to, and
production of, ‘‘Schedule 1’’ chemicals
as described in this notice, BIS is
seeking public comments on any effects
that implementation of the CWC,
through the Chemical Weapons
Convention Implementation Act of 1998
and the CWCR, has had on commercial
activities involving ‘‘Schedule 1’’
chemicals during calendar year 2022.
Such information will assist BIS in its
preparation of the annual certification to
Congress described above. To allow BIS
to properly evaluate the significance of
any harm to commercial activities
involving ‘‘Schedule 1’’ chemicals,
public comments submitted in response
to this notice of inquiry should include
both a quantitative and qualitative
assessment of the impact of the CWC on
such activities.
Submission of Comments
All comments must be submitted to
one of the addresses indicated in this
notice and in accordance with the
instructions provided herein. BIS will
consider all comments received on or
before January 23, 2023.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. 2022–27952 Filed 12–22–22; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Order Renewing Temporary Denial of
Export Privileges; Pobeda Airlines,
108811, Russian Federation, Moscow,
p. Moskovskiy, Kievskoe shosse, 22nd
km, 4⁄1. Moscow, Russia
Pursuant to section 766.24 of the
Export Administration Regulations, 15
CFR parts 730–774 (2021) (‘‘EAR’’ or
‘‘the Regulations’’),1 I hereby grant the
1 On August 13, 2018, the President signed into
law the John S. McCain National Defense
E:\FR\FM\23DEN1.SGM
Continued
23DEN1
]]>Agencies
[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Notices]
[Pages 78924-78925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27952]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 221208-0263]
RIN 0694-XC094
Impact of the Implementation of the Chemical Weapons Convention
(CWC) on Legitimate Commercial Chemical, Biotechnology, and
Pharmaceutical Activities Involving ``Schedule 1'' Chemicals (Including
``Schedule 1'' Chemicals Produced as Intermediates) During Calendar
Year 2022
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Notice of inquiry.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security is seeking public comments
on the impact that implementation of the Chemical Weapons Convention,
through the Chemical Weapons Convention Implementation Act of 1998 and
the Chemical Weapons Convention Regulations, has had on commercial
activities involving ``Schedule 1'' chemicals during calendar year
2022. The purpose of this notice of inquiry is to collect information
to assist BIS in its preparation of the annual certification to the
Congress on whether the legitimate commercial activities and interests
of chemical, biotechnology, and pharmaceutical firms are harmed by such
implementation. This certification is required under Condition 9 of
Senate Resolution 75 (April 24, 1997), in which the Senate gave its
advice and consent to the ratification of the Chemical Weapons
Convention.
DATES: Comments must be received by January 23, 2023.
ADDRESSES: You may submit comments, identified by regulations.gov
docket number BIS-2022-0033 or by RIN 0694-XC094, using any of the
following methods:
Federal rulemaking portal (https://www.regulations.gov).
You can find this notice by searching under its regulations.gov docket
number, which is BIS-2022-0033;
Email: [email protected]. Include RIN 0694-XC094
in the subject line of the message.
All filers using the portal or email should use the name of the
person or entity submitting the comments as the name of their files, in
accordance with the instructions below. Parties submitting business
confidential information should clearly identify the business
confidential portion at the time of submission, file a statement
justifying nondisclosure and referring to the specific legal authority
claimed, and also provide a non-confidential version of the submission.
For comments (including rebuttal comments) submitted electronically
containing business confidential information, the file name of the
business confidential version should begin with the characters ``BC.''
Any page containing business confidential information must be clearly
marked ``BUSINESS CONFIDENTIAL'' on the top of that page. The
corresponding non-confidential version of those comments must be
clearly marked ``PUBLIC.'' The file name of the non-confidential
version should begin with the character ``P.'' The ``BC'' or ``P'' (as
appropriate) in the file name should be followed by the name of the
person or entity submitting the comments. Any submissions with file
names that do not begin with a ``P'' or ``BC'' will be assumed to be
public and will be made publicly available through https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For questions on the Chemical Weapons
Convention requirements for ``Schedule 1'' chemicals, contact Douglas
Brown, Treaty Compliance Division, Office of Nonproliferation and
Treaty Compliance, Bureau of Industry and Security, U.S. Department of
Commerce, (202) 482-5808, Email: [email protected]. For
questions on the submission of comments, contact Willard Fisher,
Regulatory Policy Division, Office of Exporter Services, Bureau of
Industry and Security, U.S. Department of Commerce, (202) 482-6057,
Email: [email protected].
SUPPLEMENTARY INFORMATION:
Background
In providing its advice and consent to the ratification of the
Convention on the Prohibition of the Development, Production,
Stockpiling, and Use of Chemical Weapons and Their Destruction,
commonly called the Chemical Weapons Convention (CWC or ``the
Convention''), the Senate included, in Senate Resolution 75 (S. Res.
75, April 24, 1997), several conditions to its ratification. Condition
9, titled ``Protection of Advanced Biotechnology,'' calls for the
President to certify to Congress on an annual basis that ``the
legitimate commercial activities and interests of chemical,
biotechnology, and pharmaceutical firms in the United States are not
being significantly harmed by the limitations of the Convention on
access to, and production of, those chemicals and toxins listed in
Schedule 1.'' On July 8, 2004, President George W. Bush, by Executive
Order 13346, delegated his authority to make the annual certification
to the Secretary of Commerce.
The CWC is an international arms control treaty that contains
certain verification provisions. In order to implement these
verification provisions, the CWC established the Organization for the
Prohibition of Chemical Weapons (OPCW). In order to achieve the object
and purpose of the Convention and the implementation of its provisions,
the CWC imposes certain obligations on countries that have ratified the
Convention (i.e., States Parties), among which are the enactment of
legislation to prohibit the production, storage, and use of chemical
weapons
[[Page 78925]]
and the establishment of a National Authority to serve as the national
focal point for effective liaison with the OPCW and other States
Parties. The CWC also requires each State Party to implement a
comprehensive data declaration and inspection regime to provide
transparency and to verify that both the public and private sectors of
the State Party are not engaged in activities prohibited under the CWC.
In the United States, the Chemical Weapons Convention Implementation
Act of 1998, 22 U.S.C. 6701 et seq., implements the provisions of the
CWC.
``Schedule 1'' chemicals consist of those toxic chemicals and
precursors set forth in the CWC ``Annex on Chemicals'' and in
``Supplement No. 1 to part 712--SCHEDULE 1 CHEMICALS'' of the Chemical
Weapons Convention Regulations (CWCR) (15 CFR parts 710-722). The CWC
identified these toxic chemicals and precursors as posing a high risk
to the object and purpose of the Convention.
The CWC (Part VI of the ``Verification Annex'') restricts the
production of ``Schedule 1'' chemicals for protective purposes to two
facilities per State Party: a single small-scale facility and a
facility for production in quantities not exceeding 10 kg per year. The
CWC Article-by-Article Analysis submitted to the Senate in Treaty Doc.
103-21 defined the term ``protective purposes'' to mean ``used for
determining the adequacy of defense equipment and measures.''
Consistent with this definition and as authorized by Presidential
Decision Directive (PDD) 70 (December 17, 1999), which specifies agency
and departmental responsibilities as part of the U.S. implementation of
the CWC, the Department of Defense (DOD) was assigned the
responsibility to operate these two facilities. DOD maintains strict
controls on ``Schedule 1'' chemicals produced at its facilities in
order to ensure accountability for such chemicals, as well as their
proper use, consistent with the object and purpose of the Convention.
Although this assignment of responsibility to DOD under PDD-70
effectively precluded commercial production of ``Schedule 1'' chemicals
for ``protective purposes'' in the United States, it did not establish
any limitations on ``Schedule 1'' chemical activities that are not
prohibited by the CWC.
The provisions of the CWC that affect commercial activities
involving ``Schedule 1'' chemicals are implemented in the CWCR (see 15
CFR part 712) and in the Export Administration Regulations (EAR) (see
15 CFR 742.18 and 15 CFR part 745), both of which are administered by
the Bureau of Industry and Security (BIS). Pursuant to CWC
requirements, the CWCR restrict commercial production of ``Schedule 1''
chemicals to research, medical, or pharmaceutical purposes. The CWCR
prohibit commercial production of ``Schedule 1'' chemicals for
``protective purposes'' because such production is effectively
precluded per PDD-70, as described above. See 15 CFR 712.2(a).
The CWCR also contain other requirements and prohibitions that
apply to ``Schedule 1'' chemicals and/or ``Schedule 1'' facilities.
Specifically, the CWCR:
(1) Prohibit the import of ``Schedule 1'' chemicals from States not
Party to the Convention (15 CFR 712.2(b));
(2) Require annual declarations by certain facilities engaged in
the production of ``Schedule 1'' chemicals in excess of 100 grams
aggregate per calendar year (i.e., declared ``Schedule 1'' facilities)
for purposes not prohibited by the Convention (15 CFR 712.5(a)(1) and
(a)(2));
(3) Provide for government approval of ``declared Schedule 1''
facilities (15 CFR 712.5(f));
(4) Require 200 days advance notification of the establishment of
new ``Schedule 1'' production facilities producing greater than 100
grams aggregate of ``Schedule 1'' chemicals per calendar year (15 CFR
712.4);
(5) Provide that ``declared Schedule 1'' facilities are subject to
initial and routine inspection by the OPCW (15 CFR 712.5(e) and
716.1(b)(1));
(6) Require advance notification and annual reporting of all
imports and exports of ``Schedule 1'' chemicals to, or from, other
States Parties to the Convention (15 CFR 712.6, 742.18(a)(1) and
745.1); and
(7) Prohibit the export of ``Schedule 1'' chemicals to States not
Party to the Convention (15 CFR 742.18(a)(1) and (b)(1)(ii)).
For purposes of the CWCR (see the definition of ``production'' in
15 CFR 710.1), the phrase ``production of a Schedule 1 chemical'' means
the formation of ``Schedule 1'' chemicals through chemical synthesis,
as well as processing to extract and isolate ``Schedule 1'' chemicals.
The phrase also encompasses the formation of a chemical through
chemical reaction, including by a biochemical or biologically mediated
reaction. ``Production of a Schedule 1 chemical'' is understood, for
CWCR declaration purposes, to include intermediates, by-products, or
waste products that are produced and consumed within a defined chemical
manufacturing sequence, where such intermediates, by-products, or waste
products are chemically stable and therefore exist for a sufficient
time to make isolation from the manufacturing stream possible, but
where, under normal or design operating conditions, isolation does not
occur.
Request for Comments
In order to assist in determining whether the legitimate commercial
activities and interests of chemical, biotechnology, and pharmaceutical
firms in the United States are significantly harmed by the limitations
of the Convention on access to, and production of, ``Schedule 1''
chemicals as described in this notice, BIS is seeking public comments
on any effects that implementation of the CWC, through the Chemical
Weapons Convention Implementation Act of 1998 and the CWCR, has had on
commercial activities involving ``Schedule 1'' chemicals during
calendar year 2022. Such information will assist BIS in its preparation
of the annual certification to Congress described above. To allow BIS
to properly evaluate the significance of any harm to commercial
activities involving ``Schedule 1'' chemicals, public comments
submitted in response to this notice of inquiry should include both a
quantitative and qualitative assessment of the impact of the CWC on
such activities.
Submission of Comments
All comments must be submitted to one of the addresses indicated in
this notice and in accordance with the instructions provided herein.
BIS will consider all comments received on or before January 23, 2023.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-27952 Filed 12-22-22; 8:45 am]
BILLING CODE 3510-33-P
