80 FR 29554 - Additional Improvements and Harmonization of Export Clearance Provisions

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 80, Issue 99 (May 22, 2015)

The Bureau of Industry and Security (BIS) in this advanced notice of proposed rulemaking (ANPR) requests comments for how the export clearance requirements under the Export Administration Regulations (EAR) can be improved, including how the EAR export clearance provisions can be better harmonized with the export clearance requirements under the International Traffic in Arms Regulations (ITAR). This ANPR is part of Commerce's retrospective regulatory review and ongoing harmonization efforts being undertaken by Commerce and State as part of Export Control Reform (ECR) implementation. This ANPR is also part of Commerce's retrospective regulatory review plan under Executive Order (EO) 13563 (see the SUPPLEMENTARY INFORMATION for availability of the plan).

[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Proposed Rules]
[Pages 29554-29555]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12296]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 758

[Docket No. 150220163-5163-01]
RIN 0694-AG51


Additional Improvements and Harmonization of Export Clearance 
Provisions

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Advanced notice of proposed rulemaking.

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SUMMARY: The Bureau of Industry and Security (BIS) in this advanced 
notice of proposed rulemaking (ANPR) requests comments for how the 
export clearance requirements under the Export Administration 
Regulations (EAR) can be improved, including how the EAR export 
clearance provisions can be better harmonized with the export clearance 
requirements under the International Traffic in Arms Regulations 
(ITAR). This ANPR is part of Commerce's retrospective regulatory review 
and ongoing harmonization efforts being undertaken by Commerce and 
State as part of Export Control Reform (ECR) implementation. This ANPR 
is also part of Commerce's retrospective regulatory review plan under 
Executive Order (EO) 13563 (see the SUPPLEMENTARY INFORMATION for 
availability of the plan).

DATES: The Bureau of Industry and Security will accept comments on this 
advanced notice of proposed rulemaking until July 6, 2015.

ADDRESSES: You may submit comments by any of the following methods:
     By the Federal eRulemaking Portal: http://www.regulations.gov. The identification number for this rulemaking is 
BIS-2015-0012.
     By email directly to [email protected]. Include 
RIN 0694-AG51 in the subject line.
     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. Refer to RIN 
0694-AG51.

FOR FURTHER INFORMATION CONTACT: For questions about this ANPR, contact 
Timothy Mooney, Regulatory Policy Division, Office of Exporter 
Services, Bureau of Industry and Security, at 202-482-2440 or email: 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) in this advanced notice 
of proposed rulemaking (ANPR) requests comments for how the 
requirements under part 758 (Export clearance) of the Export 
Administration Regulations (EAR) (15 CFR parts 730-774) can be 
improved, including how the EAR export clearance provisions can be 
better harmonized with the export clearance requirements under the 
International Traffic in Arms Regulations (ITAR) (22 CFR parts 120-
130). This ANPR is part of Commerce's retrospective regulatory review 
and ongoing harmonization efforts being undertaken by Commerce and 
State as part of Export Control Reform (ECR) implementation. Commerce's 
full retrospective regulatory review plan is available at: http://open.commerce.gov/news/2011/08/23/commerce-plan-analysis-existing-rules.

Harmonization of Export Clearance Provisions

    The President's Export Control Reform (ECR) Initiative has 
transferred thousands of formerly ITAR controlled defense article parts 
and components, along with other items, to the Commerce Control List in 
the EAR under the jurisdiction of the Department of Commerce. The EAR 
includes part 758, which specifies requirements for export clearance 
under the EAR. As part of ECR implementation, BIS has made certain 
changes to part 758 to address the addition of the 9x515 and ``600 
series'' ECCNs to the CCL (see the EAR final rules published on April 
16, 2013 (78 FR 22660), May 13, 2014 (79 FR 27418) and November 12, 
2014 (79 FR 67055)), along with other changes to the EAR to account for 
the 9x515 and ``600 series'' ECCNs being added to the EAR.
    As a general principle, under the ECR implementation that is 
currently underway, wherever the ITAR and EAR have provisions that are 
intended to achieve the same purpose the U.S. Government is making an 
effort to harmonize those provisions, except when there is a reason why 
those provisions should remain different. The export clearance 
requirements under the

[[Page 29555]]

ITAR and the EAR are an example of requirements that may for certain 
provisions be harmonized to reduce the burden on exporters, improve 
compliance with the export clearance requirements, and ensure the 
export clearance requirements are achieving their intended purpose for 
use under the U.S. export control system, specifically under the 
transactions ``subject to the ITAR'' and ``subject to the EAR.''

Request for Comments on Additional Improvement and Harmonization of 
Export Clearance Provisions

    BIS is considering further revisions to part 758 of the EAR as part 
of Commerce's retrospective regulatory review and ongoing harmonization 
efforts being undertaken by Commerce and State as part of ECR 
implementation. As part of this review effort for how part 758 can be 
improved to make these provisions more effective and to assist BIS in 
developing regulatory changes to improve these provisions of the EAR, 
BIS requests comments on these potential future changes described under 
paragraphs (A) through (E). Export control documents in paragraphs (A) 
through (C) include the commercial invoice and contractual 
documentation.
    A. Require ECCNs on export control documents. The ECCN for all 
9x515 and ``600 series'' items is currently required to be identified 
on the export control documents, along with the destination control 
statement. BIS is considering requiring that the ECCN be identified for 
all items on the Commerce Control List. This would not include items 
that are designated EAR99.
    B. Require identification of country of ultimate destination on 
export control documents. BIS is considering requiring that the country 
of ultimate destination be identified on the export control documents. 
This requirement would mirror the requirement in the ITAR and BIS 
believes that this would only impact a small number of exports where 
additional actions would be needed by exporters, because in most cases, 
the export control documents already identify the country of ultimate 
destination.
    C. Require license number or export authorization symbol on export 
control documents. BIS is also considering requiring that the license 
number or export authorization symbol be identified on export control 
documents. This proposed revision would require that the license 
number, license exception code, or no license required designation be 
entered on the export control documents. BIS specifically requests 
comments on the application of this requirement to mixed authorization 
and mixed jurisdiction shipments.
    D. Require AES filing for exports to Canada for items controlled 
for NS, MT, NP and CB. BIS seeks comments on the potential impact and 
feasibility of changing section 758.1 under paragraph (b) to require 
EEI filing in the AES for all exports to Canada of items controlled for 
National Security (NS), Missile Technology (MT), Nuclear 
Nonproliferation (NP), and Chemical & Biological Weapons (CB) reasons, 
regardless of license requirements (meaning regardless of whether the 
export was authorized under a license, license exception, or designated 
as no license required). Because of the AES filing exemption for non-
licensed items to Canada, BIS currently has little visibility into the 
movement of these items into Canada, except for exports to Canada that 
involve a licensed item (see paragraph (b)(2) of section 758.1), a 
9x515 or ``600 series'' item (see paragraph (b)(3) of section 758.1) or 
are to be transhipped to a third country (see paragraph (b)(6) of 
section 758.1) which do require EEI filing in the AES. Therefore, BIS 
is seeking information that would help us determine:

--The volume of trade that would be impacted by this filing 
requirement;
--if this filing requirement would be beneficial and practical or 
detrimental and burdensome for industry;
--if this filing requirement would have a commercial impact on 
exporters; and
--if there are alternative methods to collecting or accessing this 
data.

    E. Other suggestions for improving and harmonizing export clearance 
requirements. Any other suggestions for improving the EAR export 
clearance requirements, including suggestions where additional 
harmonization should be considered for the export clearance 
requirements under the EAR and ITAR to ease the regulatory burden on 
exporters and make the provisions more effective would be helpful to 
receive in response to this ANPR. These suggestions can apply to any 
export clearance provision under part 758 of the EAR or any other EAR 
provisions that relate to export clearance requirements.
    Comments should be submitted to BIS as described in the ADDRESSES 
section of this ANPR by July 6, 2015. BIS will consider all comments 
submitted in response to this ANPR that are 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. BIS will not accept public 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. BIS 
will return such comments and materials to the persons submitting the 
comments and will not consider them. All public comments in response to 
this ANPR must be in writing and will be a matter of public record, and 
will be available for public inspection and copying on the BIS Freedom 
of Information Act (FOIA) Reading Room at http://efoia.bis.doc.gov/index.php/electronic-foia/index-of-documents.

    Dated: May 13, 2015.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2015-12296 Filed 5-21-15; 8:45 am]
 BILLING CODE 3510-33-P