Industry and Security Bureau May 2006 – Federal Register Recent Federal Regulation Documents

The Bureau of Industry and Security (BIS) has reviewed the public comments received in response to the ``Advance Notice of Proposed Rulemaking: Revision and Clarification of Deemed Export Related Regulatory Requirements'' (ANPR) published in the Federal Register on March 28, 2005. The ANPR identified recommendations contained in the U.S. Department of Commerce Office of Inspector General (OIG) Report entitled ``Deemed Export Controls May Not Stop the Transfer of Sensitive Technology to Foreign Nationals in the U.S.'' (Final Inspection Report No. IPE-16176March 2004). This action discusses concerns raised by the OIG and summarizes public comments received in response to the ANPR. This document also states that the current BIS licensing policy related to deemed exports is appropriate and confirms that the existing definition of ``use'' adequately reflects the underlying export controls policy rationale in the Export Administration Regulations (EAR). As such, BIS is withdrawing the ANPR. In addition, this action addresses comments on the scope of the fundamental research provisions in the EAR.

The Bureau of Industry and Security (BIS) is announcing the creation of a Federal Advisory Committee that will review and provide recommendations to the Department of Commerce on deemed export policy. The Deemed Export Advisory Committee (DEAC) will help ensure that the deemed export licensing policy most effectively protects national security while ensuring the U.S. continues to be at the leading edge of technological innovation. This notice also provides an overview of steps that BIS has taken to improve understanding of deemed export policy within academia and industry, including outreach activities conducted by BIS.

This rule revises Section 766.23(c) of the Export Administration Regulations (EAR) to make the appeal procedure for any person named as a related person to the respondent in an order denying export privileges identical to the appeal procedure for the respondent in that order.