[Federal Register Volume 77, Number 174 (Friday, September 7, 2012)]
[Pages 55183-55185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-21571]



Bureau of Industry and Security

[Docket No. 120816348-2348-01]

Effects of Foreign Policy-Based Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Request for comments.


SUMMARY: In developing its report to Congress, BIS is seeking public 
comments on the effect of existing foreign policy-based export controls 
in the Export Administration Regulations. BIS is requesting public 
comments to conduct consultations with U.S. industries. Section 6 of 
the Export Administration Act (EAA) requires BIS to consult with 
industry on the effect of such controls and to report the results of 
the consultations to Congress. Comments from all interested persons are 
welcome. All comments will be made available for public inspection

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and copying and included in a report to be submitted to Congress.

DATES: Comments must be received by October 9, 2012.

ADDRESSES: Comments on this rule may be submitted to the Federal 
e[dash]Rulemaking portal (www.regulations.gov). The regulations.gov ID 
for this rule is: BIS-2012-0038. Comments may also be sent by email to 
publiccomments@bis.doc.gov or on paper to Regulatory Policy Division, 
Bureau of Industry and Security, Department of Commerce, 14th Street & 
Pennsylvania Avenue NW., Room 2099B, Washington, DC 20230. Include the 
phrase ``FPBEC Comment'' in the subject line of the email message or on 
the envelope if submitting comments on paper. All comments must be in 
writing (either submitted to regulations.gov, by email or on paper). 
All comments, including Personal Identifying Information (e.g., name, 
address) voluntarily submitted by the commenter will be a matter of 
public record and will be available for public inspection and copying. 
Do not submit Confidential Business Information or otherwise sensitive 
or protected information.

FOR FURTHER INFORMATION CONTACT: Foreign Policy Division, Office of 
Nonproliferation Controls and Treaty Compliance, Bureau of Industry and 
Security, telephone 202-482-4252. Copies of the current Annual Foreign 
Policy Report to the Congress are available at http://www.bis.doc.gov/news/2012/2012_fpreport.pdf and copies may also be requested by 
calling the Office of Nonproliferation and Treaty Compliance at the 
number listed above.



    Foreign policy-based controls in the Export Administration 
Regulations (EAR) are implemented pursuant to section 6 of the Export 
Administration Act of 1979, as amended, (50 U.S.C. app. sections 2401-
2420 (2000)) (EAA). The current foreign policy-based export controls 
maintained by the Bureau of Industry and Security (BIS) are set forth 
in the EAR (15 CFR parts 730-774), including in parts 742 (CCL Based 
Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes 
and Other Special Controls). These controls apply to a range of 
countries, items, activities and persons, including:
     Entities acting contrary to the national security or 
foreign policy interests of the United States (Sec.  744.11);
     Certain general purpose microprocessors for ``military 
end-uses'' and ``military end-users'' (Sec.  744.17);
     Significant items (SI);
     Hot section technology for the development, production, or 
overhaul of commercial aircraft engines, components, and systems (Sec.  
     Encryption items (Sec.  742.15);
     Crime control and detection items (Sec.  742.7);
     Specially designed implements of torture (Sec.  742.11);
     Certain firearms and related items based on the 
Organization of American States Model Regulations for the Control of 
the International Movement of Firearms, their Parts and Components and 
Munitions included within the Inter-American Convention Against the 
Illicit Manufacturing of and Trafficking in Firearms, Ammunition, 
Explosives, and Other Related Materials (Sec.  742.17);
     Regional stability items (Sec.  742.6);
     Equipment and related technical data used in the design, 
development, production, or use of certain rocket systems and unmanned 
air vehicles (Sec. Sec.  742.5 and 744.3);
     Chemical precursors and biological agents, associated 
equipment, technical data, and software related to the production of 
chemical and biological agents (Sec. Sec.  742.2 and 744.4) and various 
chemicals included on the list of those chemicals controlled pursuant 
to the Chemical Weapons Convention (Sec.  742.18);
     Communication intercepting devices, software and 
technology (Sec.  742.13);
     Nuclear propulsion (Sec.  744.5);
     Aircraft and vessels (Sec.  744.7);
     Restrictions on exports and reexports to certain persons 
designated as proliferators of weapons of mass destruction (Sec.  
     Certain cameras to be used by military end-users or 
incorporated into a military commodity (Sec.  744.9);
     Countries designated as Supporters of Acts of 
International Terrorism (Sec. Sec.  742.8, 742.9, 742.10, 742.19, 
746.2, 746.4, 746.7, and 746.9);
     Certain entities in Russia (Sec.  744.10);
     Individual terrorists and terrorist organizations 
(Sec. Sec.  744.12, 744.13 and 744.14);
     Certain persons designated by Executive Order 13315 
(``Blocking Property of the Former Iraqi Regime, Its Senior Officials 
and Their Family Members'') (Sec.  744.18);
     Certain sanctioned entities (Sec.  744.20); and
     Embargoed countries (Part 746).
    In addition, the EAR impose foreign policy-based export controls on 
certain nuclear-related commodities, technology, end-uses and end-users 
(Sec. Sec.  742.3 and 744.2), in part, implementing section 309(c) of 
the Nuclear Non Proliferation Act (42 U.S.C. 2139a).

Request for Comments

    Under the provisions of section 6 of the EAA, export controls 
maintained for foreign policy purposes require annual extension. 
Section 6 of the EAA requires a report to Congress when foreign policy-
based export controls are extended. The EAA expired on August 20, 2001. 
Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp., p. 783 
(2002)), which has been extended by successive Presidential Notices, 
the most recent being that of August 15, 2012 (77 FR 49699 (Aug. 16, 
2012)), continues the EAR and, to the extent permitted by law, the 
provisions of the EAA, in effect under the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706 (2000)). The Department of 
Commerce, as appropriate, follows the provisions of section 6 of the 
EAA by reviewing its foreign policy-based export controls, conducting 
consultations with industry through public comments on such controls, 
and preparing a report to be submitted to Congress. In January 2012, 
the Secretary of Commerce, on the recommendation of the Secretary of 
State, extended for one year all foreign policy-based export controls 
then in effect. BIS is now soliciting public comment on the effects of 
extending the existing foreign policy-based export controls from 
January 2013 to January 2014. Among the criteria considered in 
determining whether to extend U.S. foreign policy-based export controls 
are the following:
    1. The likelihood that such controls will achieve their intended 
foreign policy purposes, in light of other factors, including the 
availability from other countries of the goods, software or technology 
proposed for such controls;
    2. Whether the foreign policy objective of such controls can be 
achieved through negotiations or other alternative means;
    3. The compatibility of the controls with the foreign policy 
objectives of the United States and with overall U.S. policy toward the 
country subject to the controls;
    4. Whether the reaction of other countries to the extension of such 
controls is not likely to render the controls ineffective in achieving 
the intended foreign policy objective or be counterproductive to U.S. 
foreign policy interests;
    5. The comparative benefits to U.S. foreign policy objectives 
versus the effect of the controls on the export performance of the 
United States, the competitive position of the United

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States in the international economy, the international reputation of 
the United States as a supplier of goods and technology; and
    6. The ability of the United States to effectively enforce the 
    BIS is particularly interested in receiving comments on the 
economic impact of proliferation controls. BIS is also interested in 
industry information relating to the following:
    1. Information on the effect of foreign policy-based export 
controls on sales of U.S. products to third countries (i.e., those 
countries not targeted by sanctions), including the views of foreign 
purchasers or prospective customers regarding U.S. foreign policy-based 
export controls.
    2. Information on controls maintained by U.S. trade partners. For 
example, to what extent do U.S. trade partners have similar controls on 
goods and technology on a worldwide basis or to specific destinations?
    3. Information on licensing policies or practices by our foreign 
trade partners that are similar to U.S. foreign policy based export 
controls, including license review criteria, use of conditions, and 
requirements for pre- and post-shipment verifications (preferably 
supported by examples of approvals, denials and foreign regulations).
    4. Suggestions for bringing foreign policy-based export controls 
more into line with multilateral practice.
    5. Comments or suggestions to make multilateral controls more 
    6. Information that illustrates the effect of foreign policy-based 
export controls on trade or acquisitions by intended targets of the 
    7. Data or other information on the effect of foreign policy-based 
export controls on overall trade at the level of individual industrial 
    8. Suggestions for measuring the effect of foreign policy-based 
export controls on trade.
    9. Information on the use of foreign policy-based export controls 
on targeted countries, entities, or individuals. BIS is also interested 
in comments relating generally to the extension or revision of existing 
foreign policy-based export controls.
    Parties submitting comments are asked to be as specific as 
possible. All comments received before the close of the comment period 
will be considered by BIS in reviewing the controls and in developing 
the report to Congress. All comments received in response to this 
notice will be displayed on BIS's Freedom of Information Act (FOIA) Web 
site at http://www.bis.doc.gov/foia and on the Federal e-Rulemaking 
portal at www.Regulations.gov. All comments will also be included in a 
report to Congress, as required by section 6 of the EAA, which directs 
that BIS report to Congress the results of its consultations with 
industry on the effects of foreign policy-based controls.

    Dated: August 27, 2012.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2012-21571 Filed 9-6-12; 8:45 am]