FINAL RULES
PUBLISHED IN THE FEDERAL REGISTER DURING 1999
DEPARTMENT OF COMMERCE, BUREAU OF EXPORT ADMINISTRATION
EXPORT ADMINISTRATION REGULATIONS
(15 CFR Part 730 et seq.)
NOTE: CHANGES TO THE EXPORT ADMINISTRATION REGULATIONS LISTED BELOW ARE NUMBERED CONSECUTIVELY, BEGINNING IN JANUARY OF THE NEW YEAR.
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1. Revisions to the Export Administration Regulations (EAR); Exports and Reexports to Specially Designated Terrorists and Foreign Terrorist Organizations (64 FR 1120 on January 8, 1999)
Commentary: This interim rule amends the end-user and end-use control policy of the EAR to impose new foreign policy controls on exports and certain reexports to persons identified as Specially Designated Terrorists or Foreign Terrorist Organizations and listed in the Appendices of 31 CFR Chapter V published by the Department of the Treasury, Office of Foreign Assets Control (OFAC). Specifically, this rule creates a new §744.13 and §744.14 that set forth the license requirements for exports and certain reexports of items subject to the EAR to these persons. To avoid duplication, the BXA will not require a separate license when the Office of Foreign Assets control has authorized and export or reexport to a Specially Designated Terrorist.
2. Exports of High Performance Computers Under License Exception CTP (64 FR 2429 on January 14, 1999)
Commentary: BXA has amended the EAR by revising the requirements for exports of high performance computers to the People’s Republic of China. Exports of high performance computers, regardless of value, to the People’s Republic of China under License Exception CTP must be supported by a PRC End-User Certificate. The PRC End-User Certificate must be obtained by the exporter prior to export. In addition, this rule also removes the $5,000 PRC End-User Certification exemption for license application for exports of high performance computers to the People’s Republic of China.
3. Correction to Encryption Items (64 FR 3213 on January 21, 1999)
Commentary: BXA has published an interim regulation to amend the EAR by correcting three inadvertent typographic errors in the Encryption Items regulation which was published on December 31, 1998.
4. Revisions to the Commerce Control List: Changes in Missile Technology Controls (64 FR 5931 on February 8, 1999)
Commentary: This interim rule amends the Commerce Control List by revising a number of items subject to control for missile technology reasons as a result of the decisions taken by the Missile Technology Control Regime, in November 1997. Specifically, this rule clarifies controls on metal powder and production equipment. It adds a new control for Titanium-stabilized duplex stainless steel (ECCN 1C118). It also broadens control on certain test, calibration and alignment equipment described in Category 7B for gyroscopes, accelerometers, inertial and navigation equipment described in Category 7A, by replacing the term "specially designed" with the term "designed or modified". Finally, it further defines some specific types of equipment to be controlled, including certain balancing machines, indicator heads, motion simulators, positioning/rate tables and centrifuges that are specified in a new entry (ECCN 7B104). In addition, ECCN 7B101 was added to control other production equipment not specified in ECCN 7B104 that are "designed or modified" to be used with certain equipment described in Category 7A.
5. Aluminum Company of America Respondent; Decision and Order (64 FR 9470 on February 26, 1999)
Comments: The Bureau of Export Administration has imposed a $750,000 fine on the Aluminum Company of America (ALCOA). This represents the maximum penalty available for each of 100 unlicensed exports ($10,000 per violation) plus a fine of $5,000 for each of 100 false statements (half of the maximum penalty available for such false statements). In so doing, Under Secretary Bill Reinsch upheld the findings of fact and conclusions of law by the Honorable Parlen L. McKenna, Administrative Law Judge, rejecting ALCOA’s arguments that it had made a voluntary disclosure and received a penalty that is disproportionate to other settlements.
6. Revisions and Clarifications to the Export Administration Regulations; Commerce Control List; Final Rule (64 FR 10852 on March 5, 1999)
Commentary: This final rule amends Commerce Control List by making certain revisions and clarifications and, in some cases, inserts material inadvertently omitted from the January 15, 1998 interim rule implementing changes to the Wassenaar control lists.
7. Correction to Revisions and Clarifications to the Export Administration Regulations; Commerce Control List (64 FR 12744 on March 15, 1999)
Comments: This regulation amends the Commerce Control List by correcting two inadvertent typographic errors in the clarification regulation which appeared on March 5, 1999.
8. Removal of Commercial Communications Satellites and Related Items from the Department of Commerce’s Commerce Control List for Retransfer to the Department of State’s United States Munitions List (64 FR 13338 on March 18, 1999)
Commentary: The Bureau of Export Administration is amending the Export Administration Regulations by removing commercial communications satellites and related items from the Commerce Control List and retransferring these items to the United States Munitions List.
9. Entity List: Addition of Russian Entities; and Revisions to Certain Indian and Pakistani Entities (64 FR 14605 on March 26, 1999)
Commentary: The Bureau of Export Administration has added three Russian entities to the Entity List: Medeleyev University of Chemical Technology of Russia, Moscow Aviation Institute (MAI), and the Scientific Research and Design Institute of Power Technology (a.k.a. NIKIET, Research and Development Institute of Power Engineering (RDIPE), and ENTEK). Exports or reexports of all items subject to the EAR to these newly added entities now require a license, and applications will be reviewed with a presumption of denial. The Entity List is further amended by placing the Indian entity "Department of Atomic Energy (DAE) location in Mumbai (formerly Bombay) and subordinate entities specifically listed in the Supplement" in alphabetical order; revising the Pakistani entity name "Khewra Soda Ash Plant", to read "Khewra Soda Ash Plant, Soda Ash Businesses, Soda Ash Works, Khewra Distt. Jhelum, (owned by ICI Pakistan Limited)"; and revising the Russian entity name "Glavkosmos, 9 Krasnoproletarskaya st., 103030 Moscow" to read "Glavkosmos, 9 Krasnoproletarskaya St., 103030 Moscow."
10. Exports of Firearms (64 FR 17968 on April 13, 1999)
Commentary: The Bureau of Export Administration (BXA) is revising the Export Administration Regulations (EAR) to implement export control measures agreed to by members of the Organization of American States (OAS) and set forth in the OAS Model Regulations. The OAS Model Regulations were developed to assist OAS member countries in implementing the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, and Other Related Material (Firearms Convention). OAS member countries agreed to impose an import and export license requirement to effectively combat the illicit manufacturing of and trafficking in firearms, ammunition, explosives, and other related materials. Affected ECCNs are 0A984, 0A986, and 0A987.
11. Exports to Serbia (64 FR 24018 on May 4, 1999)
Commentary: In his address to the nation on March 24, 1999, President Clinton announced that the Armed Forces of the United States had joined those of our NATO allies in air strikes against Serbian forces responsible for brutal attacks on ethnic Albanians in the province of Kosovo. On April 30, he issued Executive Order 13121 (64 FR 24021 on May 5, 1999) amending the embargo of Serbia. This rule imposes a license requirement for exports and reexports to Serbia of all items subject to the Export Administration Regulations (EAR). (Note that the savings clause in the EAR is not effective, as it does not comport with the terms of the Executive Order. In addition, please refer to General License No. 3 issued by the Office of Foreign Assets Control clarifying the scope of the embargo administered by that agency.)
12. Exports to Cuba (64 FR 25807 on May 13, 1999)
Commentary: The Department of Commerce, Bureau of Export Administration is amending the Export Administration Regulations to implement a part of the January 5, 1999, Presidential initiative to enhance the United States' support of the Cuban people to promote a transition to democracy. This final rule authorizes the issuance of licenses for exports of food and certain agricultural commodities sold to individuals and independent non-governmental entities in Cuba. Agricultural commodities that may be authorized for sale under the new policy include, but are not limited to, insecticides, pesticides, herbicides, seeds and fertilizer. Agricultural equipment is not eligible for consideration under this policy.
13. Implementation of the Chemical Weapons Convention; Revisions to the Export Administration Regulations; Final Rule (64 FR 27138 on May 18, 1999)
Commentary: On April 25, 1997, the United States ratified the Convention on the Prohibition of the Development, Production, Stockpiling, and Use of Chemical Weapons and on Their Destruction, also known as the Chemical Weapons Convention (CWC or Convention). The CWC identifies Schedule 1, Schedule 2 and Schedule 3 chemicals subject to certain trade restrictions. This interim rule implements the provisions of the Convention that affect exports and reexports of Schedule 1 chemicals and exports of Schedule 2 and Schedule 3 chemicals to countries that are not party to the Convention by amending the Export Administration Regulations (EAR). Specifically, this rule adds a requirement for U.S. persons to obtain an End-Use Certificate for exports of certain chemicals to those countries that are not party to the Convention, and submit a copy of that certificate to the Department of Commerce. This rule also adds licensing requirements for technology for the production of certain Schedule 2 and Schedule 3 chemicals subject to the Export Administration Regulations, and creates an advance notification and annual report requirement for all exports of Schedule 1 chemicals.
14. Implementation of the Chemical Weapons Convention; Revisions to the Export Administration Regulations (64 FR 27854 on May 21, 1999)
Commentary: The Department of Commerce, Bureau of Export Administration published corrections to typographical errors in the rule published on May 18, 1999 (64 FR 27138).
15. Addition of Macau to the Export Administration Regulations (64 FR 28907 on May 28, 1999)
Commentary: The Bureau of Export Administration (BXA) is amending the Export Administration Regulations (EAR) in preparation of the return of the Portuguese Colony of Macau (Macau) to the sovereignty of the People's Republic of China (PRC) on December 20, 1999. This final rule adds Macau as a separate destination on the Commerce Country Chart for export licensing purposes. This rule is effective May 28, 1999.
16. Corrections to Revisions to the Export Administration Regulations (64 FR 28908 on May 28, 1999)
Commentary: On May 18, 1999, the Bureau of Export Administration published an interim rule (64 FR 27138 ) implementing the export control provisions of the Chemical Weapons Convention. This rule corrects inadvertent errors that appeared in the May 18 rule.
17. Entity List: Addition of Entities located in the People's Republic of China; and Correction to Spelling of One Indian Entity (64 FR 28909 on May 28, 1999)
Commentary: This rule adds six entities located in the People's Republic of China to the Entity List. The six entities are: Beijing Aerospace Institute, 51 Yong Ding Road, Beijing; Beijing Institute Structure and Environmental Engineering, a.k.a., Beijing Institute of Strength and Environmental Engineering, No. 36 Wanyuan Road, Beijing; China Aerodynamics Research and Development Center (CARDC), Sichuan Province; Northwest Institute of Nuclear Technology in the Science Research, Xi'an, Shaanxi; Shanghai Academy of Spaceflight Technology, Shanghai, Spaceflight Tower 222 Cao Xi Road, Shanghai 20023; Shanghai Institute of Space Power-Sources, Shanghai, 388 Cang Wu Rd, Shanghai. A license will be required for the export or reexport of all items subject to the EAR having a classification other than EAR99 to five of these entities. A license will be required for the export or reexport of all items subject to the EAR to the Northwest Institute of Nuclear Technology, in the Science Research, Xi'an, Shaanxi. License applications to export or reexport these items will be reviewed on a case-by-case basis to determine whether the export or reexport would make a material contribution to the proliferation of missiles. This rule also makes a correction to one Indian entity name which was inadvertently misspelled.
18.
Correction to
the Implementation of
the Chemical
Weapons Convention;
Revisions to the Export Administration Regulations
(64 FR 30103 on June 4, 1999)
Commentary: This revision corrects two typographic errors in the C.A.S. numbers that appeared in the Export Administration Regulations on May 18, 1999.
19.
Expansion of License Exception CIV Eligibility for
“Micro-Processors” Controlled by ECCN 3A001 (64 FR 36779 on July 8, 1999)
Commentary: The Bureau of Export Administration (BXA)
maintains the Commerce Control List (CCL), which identifies those items subject
to Department of Commerce export licensing requirement. Consistent with
technological changes, this interim rule adjusts the License Exception CIV
eligibility level for microprocessors controlled by Export Control
Classification Number (ECCN) 3A001 from a composite theoretical performance (CTP)
of equal to or less than 1200 million theoretical operations per second (MTOPS)
to a CTP of equal to or less than 1900 MTOPS. License Exception CIV is available
for exports and reexports to civil end-users for civil end-uses in Country D:1.
BXA will continue review of the technical levels for microprocessors and will
adjust levels in the future, as needed, to account for changes in technology.
20.
Regulations Implementing Provisions of the Chemical Weapons Convention
and the Chemical Weapons Convention Implementation Act of 1998 on the Taking of
Samples and on Enforcement of Requirements Concerning Record Keeping and
Inspections; Proposed Rules (64 FR 39194 on July 21, 1999)
Commentary: The Bureau of
Export Administration is proposing to establish the Chemical Weapons Convention
Regulations (CWCR) to implement provisions of the Convention on the Prohibition
of the Development, Production, Stockpiling and Use of Chemical Weapons and on
Their Destruction, also known as the Chemical Weapons Convention (CWC or
Convention) affecting U.S. industry and other U.S. persons. The proposed CWCR
includes requirements to report certain activities involving Scheduled chemicals
and Unscheduled Discrete Organic Chemicals, and to provide access for on-site
verification by international inspectors of certain facilities and locations in
the United States.
21.
Revisions to the
Export Administration
Regulations; Commerce Control List: Revision to Categories 1, 2, 3, 4, 5,
6, 7, and 9 Based on Wassenaar Arrangement Review; Final Rule (64 FR 40106 on July 23, 1999)
Commentary: The Bureau of Export Administration (BXA) maintains the Commerce Control List (CCL), which identifies those items subject to Department of Commerce export controls. This final rule revises certain entries controlled for national security reasons in Categories 1, 2, 3, 4, 5, 6, 7, and 9 to conform with changes in the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement’s List of Dual-Use Goods and Technologies (Wassenaar Arrangement). The Wassenaar Arrangement controls strategic items with the objective of improving regional and international security and stability.
22. Revision of High Performance Computer Licensing Policy (64 FR 42009 on August 3, 1999)Commentary: The Bureau of Export Administration (BXA) is amending the Export Administration Regulations (EAR) by raising the performance parameters for those computers that can be exported and reexported under License Exception CTP. The upper threshold of the Composite Theoretical Performance (CTP) parameter for Computer Tier 2 countries is raised from 10,000 millions of theoretical operations per second (MTOPS) to 20,000 MTOPS. The upper threshold for Computer Tier 3 countries is raised from 7,000 MTOPS to 12,300 MTOPS for civilian end-users and end-uses. For military end-users and end-uses in Computer Tier 3 destinations the CTP parameter remains at 2,000 MTOPS. The upper parameter for military end-users and end-uses to Computer Tier 3 countries will be raised from 2,000 MTOPS to 6,500 MTOPS on the same date the threshold for advance notification for high performance computers (HPC) exports to Tier 3 countries is raised from 2,000 MTOPS to 6,500 MTOPS. The threshold for advance notification for exports of HPCs to Tier 3 countries is raised to 6,500 MTOPS, effective approximately 180 days following the submission of a statutorily mandated report to Congress. The President sent this report to Congress on July 26, 1999. In addition, the following countries are moved from Computer Tier 2 to Computer Tier 1: Brazil, the Czech Republic, Hungary, and Poland.
23. Aluminum Company of America (64 FR 42641 on August 5, 1999)Comments: The Decision and Order issued by the Under Secretary for Export Administration, Bureau of Export Administration, United States Department of Commerce published in the Federal Register on Friday, February 26, 1999, (64 FR 9471), inadvertently did not contain the Recommended Decision and Order of the Administration Law Judge (ALJ). This notice publishes the Recommended and Decision Order of the ALJ issued on December 21, 1998.
24. Editorial Clarifications and Revisions to the Export Administration Regulations (64 FR 47104 on August 30, 1999)Commentary: The Bureau of Export Administration (BXA) has amended the Export Administration Regulations by making certain editorial revisions and clarifications to simplify portions of the EAR and correct typographical errors.
25. Exports and Reexports of Commercial Charges and Devices Containing Energetic Materials (64 FR 47666 on September 1, 1999)
Commentary: The
Bureau of Export Administration (BXA) has amended the Commerce Control List (CCL),
by revising and clarifying controls on certain commercial charges and devices
containing energetic materials commonly used in mining and oil well development
as well as in air bags and fire extinguishers and also certain
pyrotechnic/explosive devices, of the type commonly used by the U.S. motion
picture and television industry. Specifically,
the rule revises Export Control Classification Numbers (ECCNs) 1C018 and 1C992
to better distinguish the types of charges and explosive devices controlled by
these entries and to provide clear thresholds of control. This rule also removes ECCN 1C998. Items previously controlled by ECCN 1C998 have been moved to
ECCN 1C992. In addition, this rule corrects an inadvertent error to License
Exception LVS for ECCN 0A018 that was published on July 14, 1998 (63 FR 37767).
26.
Correction
to Editorial Clarifications and Revisions to the Export Administration
Regulations (64 FR 48956 on September 9, 1999)
Comments: On August 30, 1999, the Bureau of Export Administration
published an interim rule revising the Export Administration Regulations (EAR)
by making certain editorial revisions and clarifications. Instruction No. 16 of that regulation inadvertently removed
Firearms controls from ECCN 0A984. This
regulation amends the Commerce Control List (CCL) by revising ECCN 0A984 to
include Firearms controls for the entire entry. This rule is effective August 30, 1999.
27.
Chemical
Weapons Conventions; Revisions to the Export Administration Regulations; State
Parties;
Licensing Policy Clarification (64 FR 49380 on
September 13, 1999)
28.
Reexports
to Libya of Foreign Registered Aircraft Subject to the Export Administration
Regulations (64 FR 49382 on September 13, 1999)
Comments: The Bureau of Export Administration (BXA) is amending the
Export Administration Regulations (EAR) by reinstating provisions of License
Exception AVS for temporary reexports to Libya of foreign registered aircraft
subject to the EAR. This limited
action is taken in response to suspended United Nations sanctions. This rule is effective April 5, 1999.
29. Exports and Reexports for Syrian Civilian Passenger Aircraft Safety of Flight (64 FR 50247 on September 16, 1999)
Commentary:
The Bureau of Export Administration (BXA) has amended the Export Administration
Regulations by revising the license review policy for the export and reexport of
certain aircraft parts and components to ensure safety of flight for civil
passenger aircraft. License
applications for the export and reexport of aircraft parts and components for
Syrian civil passenger aircraft will be reviewed on a case-by-case basis with a
presumption of approval. The rule
is effective September 16, 1999.
30.
Parties
to a Transaction and Their Responsibilities, Routed Export Transactions,
Shipper’s Export Declarations, and Export Clearance (64 FR 53853 on
October 4, 1999)
Commentary: The
Bureau of Export Administration (BXA) proposes to revise the Export
Administration Regulations (EAR) to clarify the responsibilities of parties to
an export transaction, the filing and use of Shipper’s Export Declarations,
Destination Control Statement requirements, and other export clearance issues.
Comments on the proposed rule must be received before December 3, 1999.
31.
Revisions
to the Commerce Control List (ECCNs 1C351, 1C991, and 2B351):
Medical Products Containing Biological Toxins; and Toxic Gas Monitoring
Systems and Dedicated Detectors
(64 FR 54520 on October 7, 1999)
Comments: This final rule amends the Commerce Control List (CCL) of the
Export Administration Regulations (EAR) to implement an October 1998 Australia
Group agreement to amend controls on toxic gas monitoring systems and dedicated
detectors. This final rule also
amends the CCL to authorize, without a license, exports of medical products
containing controlled biological toxins (except saxitoxin and ricin) that are
developed, packaged and sold for medical treatment.
This rule will result in a decreased licensing burden on U.S. industry.
32. Exports to Kosovo (64 FR 60339 on November 5, 1999)
Commentary: The Bureau of Export Administration (BXA) is amending the Export Administration Regulations (EAR) to exempt the Serbian province of Kosovo ("Kosovo") from certain license requirements for exports and reexport to Serbia of items subject to the EAR. For purposes of the EAR, this rule eliminates the term "Federal Republic of Yugoslavia" and establishes Serbia, Kosovo, and Montenegro as distinct destinations under the EAR. This distinction clarifies the applicability of export controls under the EAR to different destinations. Although comprehensive sanctions on Serbia (excluding Kosovo) remain in place, both Kosovo and Montenegro retain, for License Exception eligibility purposes, membership in "Country Group B" and "Computer Tier 3". Serbia, Kosovo, and Montenegro are now listed separately in the Commerce Country Chart (see Supplement No. 1 to part 738).
33. Expansion of License Exception CIV Eligibility for "Microprocessors" Controlled by ECCN 3A001 and Graphics Accelerators Controlled by ECCN 4A003 (64 FR 66372 on November 26, 1999)
Commentary: The Bureau of Export Administration (BXA) published an interim rule with request for comments on adjustments to the License Exception CIV eligibility level for microprocessors controlled by Export Control Classification Number (ECCN) 3A001 from a composite theoretical performance (CTP) of equal to or less than 1900 million theoretical operations per second (MTOPS) to a CTP of equal to or less than 3500 MTOPS. This rule also adjusts the License Exception CIV eligibility level for graphics accelerators controlled by Export Control Classification Number (ECCN) 4A003 from 10 million vectors per second to 75 million vectors per second. License Exception CIV is available for exports and reexports to civil end-users for civil end-uses in Country Group D:1.
34. Foreign Policy-based Export Controls (64 FR 66821 on November 30, 1999)Commentary: The Bureau of Export Administration (BXA) is reviewing the foreign policy-based export controls in the Export Administration Regulations to determine whether they should be modified, rescinded or extended. Under the provisions of section 6 of the Export Administration Act of 1979, as amended (EAA), a report is required to Congress whenever foreign policy-based export controls are extended. (Foreign policy controls expire one year after imposition unless they are extended). Therefore, the Department of Commerce is following the provisions of section 6 in reviewing foreign policy-based export controls. To help make these determinations, BXA is seeking comments on how existing foreign policy-based export controls have affected exporters and the general public. Foreign Policy controls need to be extended in January 2000. Comments must be received by December 30, 1999.
35.
Chemical Weapons Convention Regulations
(64 FR 73743 on December 30, 1999)
Commentary:
On April 25, 1997, the United States ratified the Convention on the Prohibition
of the Development, Production, Stockpiling and Use of Chemical Weapons and on
Their Destruction, also known as the Chemical Weapons Convention (CWC or
Convention). This interim rule establishes the Chemical Weapons Convention
Regulations (CWCR) to implement provisions of the Convention affecting U.S.
industry and other U.S. persons. The CWCR include requirements to report certain
activities involving Scheduled chemicals and Unscheduled Discrete Organic
Chemicals, and to provide access for on-site verification by international
inspectors of certain facilities and locations in the United States.
The Chemical Weapons Convention Implementation Act of 1998
(“Act”) (22 U.S.C. 6701 et seq.), enacted on October 21, 1998, authorizes
the United States to require the U.S. chemical industry and other private
entities to submit declarations, notifications and other reports and also to
provide access for on-site inspections. Executive Order (E.O.) 13128 delegates
authority to the Department of Commerce to promulgate regulations, obtain and
execute warrants, provide assistance to certain facilities, and carry out
appropriate functions to implement the Convention, consistent with the Act. The
Department of Commerce will carry out CWC import restrictions under the
authority of the International Emergency Economic Powers Act, the National
Emergencies Act and E.O. 12938, as revised by E.O. 13128. The Departments of
State and Commerce are implementing CWC export restrictions under their
respective export control authorities. E.O. 13128 designates the Department of
State as the United States National Authority (USNA) for purposes of the
Convention and the Act.