[Federal Register Volume 71, Number 134 (Thursday, July 13, 2006)]
[Proposed Rules]
[Page 39603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11056]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 742, 748, 754, and 772

[Docket No. 030425102-6179-03]
RIN 0694-AC20


Mandatory Use of Simplified Network Application Processing System

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule--withdrawal.

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SUMMARY: 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.

DATES: The proposed rule is withdrawn as of July 13, 2006.

FOR FURTHER INFORMATION CONTACT: William Arvin, Office of Exporter 
Services, Regulatory Policy Division: e-mail [email protected], 
telephone (202) 482-2440.

SUPPLEMENTARY INFORMATION: 

Background

    On November 12, 2003 (68 FR 64009), the Bureau of Industry and 
Security published a proposed rule that would have required that all 
applications for export licenses, reexport licenses, license exception 
AGR submissions, classification requests and encryption review requests 
be submitted via a to-be-instituted revised Simplified Network 
Application Process unless certain enumerated exceptions applied, and 
that would have extensively revised the requirements for electronic 
filing of certain applications (the November 2003 proposed rule). The 
November 2003 proposed rule would also have allowed organizations that 
use the system, once registered, to add, remove and adjust the 
authority level of individual users authorized to file applications and 
notices on behalf of that organization. The November 2003 proposed rule 
would have permitted the electronic filing of attachments, and required 
that all attachments to applications and notices be in text searchable 
pdf format.
    The original comment period expired on January 12, 2004, but was 
extended to February 12, 2004 (69 FR 1685, January 12, 2004). BIS 
received 16 comments on the proposed rule. Although a number of 
commenters generally favored expanded electronic filing in principle, 
many were opposed to the requirement that attachments be in text 
searchable pdf format, generally citing the cost of producing such 
documents, particularly if the source documents had to be scanned from 
poor quality, oversized or bound originals. Other commenters opposed 
making electronic filing mandatory, and still others, although not 
opposed to mandatory electronic filing in principle, stated that no 
mandatory filing rule should be imposed until after the improved system 
had been deployed and was operating reliably.
    Since the publication of the November 2003 proposed rule, BIS has 
reassessed its efforts to improve electronic filing of license 
applications and as a result of that reassessment, determined to 
release improvements and modifications to its electronic filing system 
in small installments rather than in the single complete restructuring 
that the November 2003 proposed rule contemplated. BIS may at times 
find it necessary to amend the Export Administration Regulations to 
conform with some of those installments. However, BIS has concluded 
that a single rule comprehensively rewriting the EAR provisions 
relating to electronic filing as it proposed in the November 2003 
proposed rule no longer is consistent with the manner in which it plans 
to modernize its electronic filling process. In addition, BIS agrees 
with the commenters to the November 2003 proposed rule who stated that 
any revised electronic system should be put into place and be operating 
reliably before any rule making its use mandatory is published.
    Accordingly, BIS is withdrawing the November 2003 proposed rule. 
BIS is continuing to work on improvements to its on-line application 
system and will issue new rules as needed to implement those 
improvements.

    Dated: June 30, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
 [FR Doc. E6-11056 Filed 7-12-06; 8:45 am]
BILLING CODE 3510-33-P