Industry and Security Bureau July 2006 – Federal Register Recent Federal Regulation Documents
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Revisions to the Export Administration Regulations Based on the 2005 Missile Technology Control Regime Plenary Agreements
The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the September 2005 Plenary in Madrid, Spain. The amendments set forth in this rule also reflect a change to make one additional missile technology (MT) controlled item available for certain license exceptions.
Establishment of Advisory Committee and Clarification of Deemed Export-Related Regulatory Requirements
The Bureau of Industry and Security publishes this notice to extend the recruitment period on the Deemed Export Advisory Committee (DEAC). The original solicitation for this Federal Advisory Committee was published in the Federal Register on May 22, 2006. The DEAC will review and provide recommendations to the Department of Commerce on deemed export policy. The new deadline to respond to this recruitment notice is July 28, 2006.
Technical Advisory Committees; Notice of Recruitment of Private-Sector Members
Six Technical Advisory committees (TACs) advise the Department of Commerce on the technical parameters for export controls applicable to dual-use commodities and technology and on the administration of those controls. The TACs are composed of representatives from industry and Government representing diverse points of view on the concerns of the exporting community. Industry representatives are selected from firms producing a broad range of goods, technologies, and software presently controlled for national security, non-proliferation, foreign policy, and short supply reasons or that are proposed for such controls, balanced to the extent possible among large and small firms. TAC members are appointed by the Secretary of Commerce and serve terms of not more than four consecutive years. The membership reflects the Department's commitment to attaining balance and diversity. TAC members must obtain secret-level clearances prior to appointment. These clearances are necessary so that members may be permitted access to the classified information needed to formulate recommendations to the Department of Commerce. Each TAC meets approximately 4 times per year. Members of the Committees will not be compensated for their services. The six TACs are responsible for advising the Department of Commerce on the technical parameters for export controls and the administration of those controls within the following areas: Information Systems TAC: Control List Categories 3 (electronics), 4 (computers), and 5 (telecommunications and information security); Materials TAC: Control List Category 1 (materials, chemicals, microorganisms, and toxins); Materials Processing Equipment TAC: Control List Category 2 (materials processing); Regulations (EAR) and procedures for implementing the EAR; Sensors and Instrumentation TAC: Control List Category 6 (sensors and lasers); Transportation and Related Equipment TAC: Control List Categories 7 (navigation and avionics), 8 (marine), and 9 (propulsion systems, space vehicles, and related equipment). To respond to this recruitment notice, please send a copy of your resume to Ms. Yvette Springer at Yspringer@bis.doc.gov. Deadline: This Notice of Recruitment will be open for one year from its date of publication in the Federal Register. For Further Information Contact: Ms. Yvette Springer on (202) 482- 4814.
Mandatory Use of Simplified Network Application Processing System
The Bureau of Industry and Security (BIS) is withdrawing a proposed rule that would have made use of the Simplified Network Application Process (SNAP) mandatory and that would have comprehensively revised the provisions of the Export Administration Regulations (EAR) that govern electronic filing. BIS is continuing to work on improvements to its on-line application system and will issue new rules as needed to implement those improvements.
Defense Priorities and Allocations System (DPAS): Administrative and Technical Corrections
The Bureau of Industry and Security (BIS) is amending the Defense Priorities and Allocations System (DPAS) Regulation (15 CFR part 700) to make administrative and technical corrections. These amendments do not alter the substance or effect of the DPAS regulation.
Revision to the Unverified List-Guidance as to “Red Flags”
On June 14, 2002, the Bureau of Industry and Security (``BIS'') published a notice in the Federal Register that set forth a list of persons in foreign countries who were parties to past export transactions where pre-license checks or post-shipment verifications could not be conducted for reasons outside the control of the U.S. Government (``Unverified List''). Additionally, on July 16, 2004, BIS published a notice in the Federal Register that advised exporters that the Unverified List would also include persons in foreign countries in transactions where BIS is not able to verify the existence or authenticity of the end-user, intermediate consignee, ultimate consignee, or other party to the transaction. These notices advised exporters that the involvement of a listed person as a party to a proposed transaction constitutes a ``red flag'' as described in the guidance set forth in Supplement No. 3 to 15 CFR part 732, requiring heightened scrutiny by the exporter before proceeding with such a transaction. This notice adds three entities to the Unverified List. The entities are: Sheeba Import Export, Hadda Street, Sanaa, Yemen; Aerospace Consumerist Consortium FZCO, Sheikh Zayed Road, P.O. Box 17951, Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE) and Dubai International Airport, Dubai, 3365, UAE; and Medline International LLC, P.O. Box 86343 Dubai, UAE.
Meeting With Interested Public on the Proposed Rule: Revisions and Clarification of Export and Reexport Controls for the People's Republic of China (PRC); New Authorization Validated End-User
The Bureau of Industry and Security (BIS) will hold a meeting on July 17, 2006 for those companies, organizations, and individuals that have an interest in understanding the United States' revised policy for exports and reexports of dual-use items to the People's Republic of China (PRC) as presented in the proposed rule published in the Federal Register on July 6, 2006. U.S. Government officials will explain the amendments proposed in the rule and answer questions from the public.
Antiboycott Penalty Guidance
This notice corrects a transposition error in the Regulatory Identification Number (RIN) in the preamble to a proposed rule that the Bureau of Industry and Security published on June 30, 2006 (71 FR 37571). The correct RIN is 0694-AD63. The RIN was incorrectly listed as 0694-AD36. In addition this notice corrects that same transposition error that appeared in the final sentence of the ADDRESSES paragraph of the preamble of that propose rule. As corrected, the final sentence of the ADDRESSES paragraph reads:
Revisions and Clarification of Export and Reexport Controls for the People's Republic of China (PRC); New Authorization Validated End-User
It is the policy of the United States Government to prevent exports that would make a material contribution to the military capability of the People's Republic of China (PRC), while facilitating U.S. exports to legitimate civil end-users in the PRC. Consistent with this policy, the Bureau of Industry and Security (BIS) proposes to amend the Export Administration Regulations (EAR) by revising and clarifying United States licensing requirements and licensing policy on exports and reexports of goods and technology to the PRC. The proposed amendments include a revision to the licensing review policy for items controlled on the Commerce Control List (CCL) for reasons of national security, including a new control based on knowledge of a military end-use on exports to the PRC of certain CCL items that otherwise do not require a license to the PRC. The items subject to this license requirement will be set forth in a list. This rule further proposes to revise the licensing review policy for items controlled for reasons of chemical and biological proliferation, nuclear nonproliferation, and missile technology for export to the PRC, requiring that applications involving such items be reviewed in conjunction with the revised national security licensing policy. This rule proposes the creation of a new authorization for validated end-users in certain destinations, including the PRC, to whom certain, specified items may be exported or reexported. Such validated end-users would be placed on a list in the EAR after review and approval by the United States Government. Finally, this rule proposes to require exporters to obtain an End- User Certificate, issued by the PRC Ministry of Commerce, for all items that both require a license to the PRC for any reason and exceed a total value of $5,000. The current PRC End-Use Certificate applies only to items controlled for national security reasons. This rule also proposes to eliminate the current requirement that exporters submit PRC End-User Certificates to BIS with their license applications but provides that they must retain them for five years.
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