[Federal Register Volume 77, Number 244 (Wednesday, December 19, 2012)]
[Notices]
[Pages 75145-75147]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30480]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Docket No. 121114631-2631-01]
Impact of the Implementation of the Chemical Weapons Convention
(CWC) on Commercial Activities Involving ``Schedule 1'' Chemicals
(Including Schedule 1 Chemicals Produced as Intermediates) Through
Calendar Year 2012
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Notice of inquiry.
-----------------------------------------------------------------------
SUMMARY: The Bureau of Industry and Security (BIS) is seeking public
comments on the impact that implementation of the Chemical Weapons
Convention (CWC), through the Chemical Weapons Convention
Implementation Act (CWCIA) and the Chemical Weapons Convention
Regulations (CWCR), has had on commercial activities involving
``Schedule 1'' chemicals during calendar year 2012. The purpose of this
notice of inquiry is to collect information to assist BIS in its
preparation of the annual certification to the Congress, which 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
CWC.
DATES: Comments must be received by January 18, 2013.
ADDRESSES: You may submit comments by any of the following methods:
Email: willard.fisher@bis.doc.gov. Include the phrase
``Schedule 1 Notice of Inquiry'' in the subject line;
Fax: (202) 482-3355 (Attn: Willard Fisher);
By mail or delivery to Regulatory Policy Division, Bureau
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th
Street and Pennsylvania Avenue NW., Washington, DC 20230.
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, Phone: (202) 482-1001. 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, Phone: (202) 482-2440.
SUPPLEMENTARY INFORMATION:
[[Page 75146]]
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 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). 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, 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.
``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 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 (SSSF) 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, thereby precluding
commercial production of ``Schedule 1'' chemicals for protective
purposes in the United States. The assignment of responsibility to DOD
did not establish any limitations on ``Schedule 1'' chemical activities
that are not prohibited by the CWC. However, the Department of Defense
maintains strict controls on ``Schedule 1'' chemicals produced at its
facilities in order to ensure the accountability and proper use of such
chemicals, consistent with the object and purpose of the Convention.
The provisions of the CWC that affect commercial activities
involving ``Schedule 1'' chemicals are implemented in the CWCR (see 15
CFR 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 (commercial production
for ``protective purposes'' is precluded, as described above). 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) Require government approval of ``declared Schedule 1''
facilities (15 CFR 712.5(f));
(4) Provide that ``declared Schedule 1'' facilities are subject to
initial and routine inspection by the Organization for the Prohibition
of Chemical Weapons (15 CFR 712.5(e) and 716.1(b)(1));
(5) Require 200 days advance notification of establishment of new
``Schedule 1'' production facilities producing greater than 100 grams
aggregate of ``Schedule 1'' chemicals per calendar year (15 CFR 712.4);
(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 15 CFR 710.1), ``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. Such production 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 Chemical Weapons Convention,
through the Chemical Weapons Convention Implementation Act and the
Chemical Weapons Convention Regulations, has had on commercial
activities involving ``Schedule 1'' chemicals during calendar year
2012. 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
[[Page 75147]]
notice. The Department requires that all comments be submitted in
written form.
The Department encourages interested persons who wish to comment to
do so at the earliest possible time. The period for submission of
comments will close on January 18, 2013. The Department will consider
all comments received before the close of the comment period. Comments
received after the end of the comment period will be considered if
possible, but their consideration cannot be assured. The Department
will not accept comments accompanied by a request that a part or all of
the material be treated confidentially because of its business
proprietary nature or for any other reason. The Department will return
such comments and materials to the persons submitting the comments and
will not consider them. All comments submitted in response to this
notice will be a matter of public record and will be available for
public inspection and copying.
The Office of Administration, Bureau of Industry and Security, U.S.
Department of Commerce, displays public comments on the BIS Freedom of
Information Act (FOIA) Web site at http://www.bis.doc.gov/foia. This
office does not maintain a separate public inspection facility. If you
have technical difficulties accessing this Web site, please call BIS's
Office of Administration, at (202) 482-1093, for assistance.
Dated: December 12, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-30480 Filed 12-18-12; 8:45 am]
BILLING CODE 3510-33-P