83 FR 53411 - Request for Public Comments Regarding Foreign Disposition of Certain Commodities

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 205 (October 23, 2018)

Page Range		53411-53412
FR Document		2018-23044

The Bureau of Industry and Security (BIS) is seeking public comments on the effects and costs that would result if BIS were to amend its regulations to reflect new export authorization requirements regarding electronic waste, including new recordkeeping requirements, reporting requirements, and data elements in the Automated Export System, maintained by the U.S. Census Bureau, to track electronic waste that is exported. Comments from all interested persons are welcome and will help BIS determine the feasibility and cost of implementing a mechanism for tracking and controlling electronic waste exports.

Federal Register, Volume 83 Issue 205 (Tuesday, October 23, 2018)

[Federal Register Volume 83, Number 205 (Tuesday, October 23, 2018)]
[Proposed Rules]
[Pages 53411-53412]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23044]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740 and 758

[Docket No. 180831812-8812-01]
RIN 0694-XC047


Request for Public Comments Regarding Foreign Disposition of 
Certain Commodities

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Notice of inquiry; request for comments.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Industry and Security (BIS) is seeking public 
comments on the effects and costs that would result if BIS were to 
amend its regulations to reflect new export authorization requirements 
regarding electronic waste, including new recordkeeping requirements, 
reporting requirements, and data elements in the Automated Export 
System, maintained by the U.S. Census Bureau, to track electronic waste 
that is exported. Comments from all interested persons are welcome and 
will help BIS determine the feasibility and cost of implementing a 
mechanism for tracking and controlling electronic waste exports.

DATES: Comments must be received by BIS no later than December 24, 
2018.

ADDRESSES: Comments on this rule may be submitted to the Federal 
rulemaking portal (www.regulations.gov). The regulations.gov ID for 
this rule is: BIS-2018-0022. All relevant comments (including any 
personally identifying information) will be made available for public 
inspection and copying.

FOR FURTHER INFORMATION CONTACT: Eileen Albanese, Director, Office of 
National Security and Technology Transfer Controls, Bureau of Industry 
and Security, Department of Commerce, by phone at (202) 482-0092, or by 
email at eileen.albanese@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    In recent years, a number of Congressional studies and actions, 
including the ``Inquiry into Counterfeit Electronic Parts in the 
Department of Defense Supply Chain'' published by the Committee on 
Armed Services in the United States Senate (Armed Services Report), as 
well as the ``Secure E-Waste Export and Recycling Act'' (H.R. 917), 
have raised concerns regarding counterfeit goods that may enter the 
United States' military and civilian electronics supply chain. One of 
the potential sources for these counterfeit goods identified in the 
Armed Services Report is the unregulated recycling of discarded 
electronic equipment that has typically been shipped overseas from the 
United States for disposal.
    Although no specific legislation has yet been passed mandating 
export controls related to electronic waste, prior Congressional 
studies and actions have prompted the Bureau of Industry and Security 
(BIS) to seek comments on potential regulatory changes that would limit 
the export of discarded electronic equipment (electronic waste) by 
defining the term ``electronic waste'' and prohibiting its export from 
the United States unless certain conditions are met. If electronic 
waste does not meet these contemplated conditions, persons could be 
prohibited from exporting the electronic waste and would need to 
identify a means of disposal within the United States. If electronic 
waste meets the contemplated conditions, it would be exempt from the 
prohibition, potentially eligible to export under a new license 
exception or other reporting requirement, and the export of these items 
could require new recordkeeping and tracking requirements.
    BIS is seeking public comments on a contemplated new definition of 
electronic waste, on this potential prohibition on electronic waste 
exports, and on the basis for an exemption from that prohibition 
(through criteria for electronic waste exemptions). BIS is also seeking 
comments on potential regulatory changes, in the form of two reporting 
approaches identified by BIS that could be used to track the export of 
electronic waste that is exempt from the prohibition as well as new 
recordkeeping requirements. In addition, BIS is seeking comments on the 
potential cost of the regulatory and policy changes associated with a 
prohibition on the export of electronic waste and the expected 
effectiveness, if any, of a prohibition to address the issue of 
counterfeit goods. BIS is also interested in observations from members 
of the public regarding counterfeit goods and electronic waste exports 
in the electronics supply chain. Relevant comments from all interested 
persons are welcome and may help BIS assess the prevalence of 
counterfeit goods in military and civilian electronic supply chains, 
the estimated cost to industry to implement these potential regulatory 
changes, and the effectiveness of the potential strategy to reduce 
counterfeit goods that enter the military and civilian electronics 
supply chains.

Potential Criteria Regarding Prohibition and Exemption of Electronic 
Waste Exports

(1) Definition of ``Electronic Waste''

    The definition for electronic waste being considered by BIS would 
include any of the following used items containing electronic 
components or fragments thereof, including parts or subcomponents of 
such items:
    (i) Computers and related equipment;
    (ii) Data center equipment (including servers, network equipment, 
firewalls, battery backup systems, and power distribution units);
    (iii) Mobile computers (including notebooks, netbooks, tablets, and 
e-book readers);
    (iv) Televisions (including portable televisions and portable DVD 
players);
    (v) Video display devices (including monitors, digital picture 
frames, and portable video devices);
    (vi) Digital imaging devices (including printers, copiers, 
facsimile machines, image scanners, and multifunction machines);
    (vii) Consumer electronics, including digital cameras, projectors, 
digital audio

[[Page 53412]]

players, cellular phones and wireless internet communication devices, 
audio equipment, video cassette recorders, DVD players, video game 
systems (including portable systems), video game controllers, signal 
converter boxes, and cable and satellite receivers; and
    (viii) Portable global positioning system navigation.
BIS welcomes comments from the public on the definition, or any 
alternative construct for a definition of electronic waste.

2) Electronic Waste Exemptions

    Electronic waste that would be exempted from the prohibition on 
export could include consumer appliances that have electronic features, 
electronic parts of a motor vehicle, tested working used electronics, 
and recalled electronics. Tested working used electronics would be 
determined, through testing methodologies, to be fully functional for 
the purpose for which they were designed or, in the case of 
multifunction devices, fully functional for at least one of the primary 
purposes for which the items were designed. This exemption from the 
potential export prohibition would include refurbished items or items 
exported for reuse for the purpose for which they were designed. 
Recalled electronics include items that have been recalled by the 
manufacturer or are subject to a recall notice issued by the U.S. 
Consumer Product Safety Commission or other pertinent Federal 
authority.
    Also exempt from the prohibition would be items that are unusable 
that are exported as feedstock, with no additional mechanical or hand 
separation required, in a reclamation process to render the electronic 
components or items recycled consistent with the laws of the foreign 
country performing the reclamation process. Feedstock means any raw 
material constituting the principal input for an industrial process.
    BIS welcomes comments from the public on criteria regarding 
exempted electronic waste items. Items that do not meet the criteria 
for exemption could be subject to a prohibition on export. Persons 
would need to determine a means of disposal or destruction of non-
exempted electronic waste within the United States.
    BIS recognizes that other organizations and government agencies may 
have different criteria or definitions for electronic waste and other 
relevant terms. BIS seeks comment from the public regarding these terms 
and any discrepancies and uncertainties that may arise from the 
definition used in this notice of inquiry.

Potential Changes to the Regulations

(1) Reporting Requirements for the Export of Exempted Electronic Waste

    BIS is seeking public comments on two approaches that could be used 
to track the export of electronic waste that is exempt from the 
prohibition. The first approach would be to allow electronic waste that 
is exempt from the prohibition to be exported under a potential new 
license exception in the Export Administration Regulations (EAR) (15 
CFR, subchapter C, parts 730-774). A second approach would be to track 
and record exempted electronic waste exports through a new data element 
in the Automated Export System (AES), maintained by the U.S. Census 
Bureau (Census). BIS recognizes that Census proposed the introduction 
of a similar data element in the Federal Register on March 9, 2016 (81 
FR 12423), and ultimately removed the proposed requirement in their 
final rule published on April 19, 2017 (82 FR 18385), because of public 
comments and concerns. BIS is nevertheless considering re-introducing 
an electronic waste indicator in AES as an alternate means to track the 
export of electronic waste that qualifies for an exemption from the 
prohibition. BIS welcomes comments and suggestions on other possible 
approaches and mechanisms that would help the public comply with 
requirements for the export of electronic waste.

(2) New Recordkeeping Requirements

    BIS is seeking comments on new recordkeeping requirements that 
would apply to exports of exempted electronic waste under a potential 
new license exception and exports of electronic waste tracked under a 
potential new AES data element. Exporters would be required to keep 
documentation on all electronic waste that is exported, including how 
the electronic waste met the criteria for exemption, and including but 
not limited to the methodology used to test the items and the test 
results for each item.

Cost to Industry for Potential Changes to the Regulations and the 
Prevalence of Counterfeit Items in Electronic Supply Chains

    BIS seeks public comments on the costs to exporters of determining 
eligibility for exemption of items that fall under the definition of 
electronic waste (including the workability of the testing of used 
electronics), new recordkeeping requirements for exempted electronic 
waste, updates to filing systems to reflect regulatory changes (either 
in the form of a new license exception or an electronic waste indicator 
in AES), and costs or effects that may arise from the potential changes 
described in this notice. In addition, BIS seeks comments on the 
prevalence of counterfeit commodities in the electronic supply chains 
and whether the changes contemplated in this notice of inquiry would 
alleviate this problem.

    Dated: October 17, 2018.
Richard E. Ashooh,
Assistant Secretary for Export Administration.
[FR Doc. 2018-23044 Filed 10-22-18; 8:45 am]
 BILLING CODE 3510-33-P

Federal Register / Vol. 83, No. 205 / Tuesday, October 23, 2018 / Proposed Rules 53411

airplane to which the AMOC applies, notify determine the feasibility and cost of recordkeeping and tracking
your appropriate principal inspector (PI) in implementing a mechanism for tracking requirements.
the FAA Flight Standards District Office and controlling electronic waste BIS is seeking public comments on a
(FSDO), or lacking a PI, your local FSDO. exports. contemplated new definition of
(2) Contacting the Manufacturer: For any
electronic waste, on this potential
requirement in this AD to obtain corrective DATES: Comments must be received by
actions from a manufacturer, the action must prohibition on electronic waste exports,
BIS no later than December 24, 2018.
instead be accomplished using a method and on the basis for an exemption from
ADDRESSES: Comments on this rule may that prohibition (through criteria for
approved by the Manager, Small Airplane
Standards Branch, FAA; or the Civil Aviation be submitted to the Federal rulemaking electronic waste exemptions). BIS is
Authority of New Zealand (CAA). portal (www.regulations.gov). The also seeking comments on potential
regulations.gov ID for this rule is: BIS– regulatory changes, in the form of two
(i) Related Information 2018–0022. All relevant comments reporting approaches identified by BIS
Refer to CAA MCAI AD No. DCA/750XL/ (including any personally identifying
19A, dated April 26, 2018, for related
that could be used to track the export of
information) will be made available for electronic waste that is exempt from the
information. You may examine the MCAI on public inspection and copying.
the internet at http://www.regulations.gov by prohibition as well as new
searching for and locating Docket No. FAA– FOR FURTHER INFORMATION CONTACT: recordkeeping requirements. In
2018–0842. Pacific Aerospace Limited, Eileen Albanese, Director, Office of addition, BIS is seeking comments on
Airport Road, Hamilton, Private Bag 3027, National Security and Technology the potential cost of the regulatory and
Hamilton 3240, New Zealand; telephone: +64 Transfer Controls, Bureau of Industry policy changes associated with a
7 843 6144; facsimile: +64 7 843 6134; email: and Security, Department of Commerce, prohibition on the export of electronic
pacific@aerospace.co.nz; internet: by phone at (202) 482–0092, or by email waste and the expected effectiveness, if
www.aerospace.co.nz. You may review
at eileen.albanese@bis.doc.gov. any, of a prohibition to address the issue
copies of the referenced service information
at the FAA, Policy and Innovation Division, SUPPLEMENTARY INFORMATION: of counterfeit goods. BIS is also
901 Locust, Kansas City, Missouri 64106. For interested in observations from
information on the availability of this Background members of the public regarding
material at the FAA, call (816) 329–4148. In recent years, a number of counterfeit goods and electronic waste
Congressional studies and actions, exports in the electronics supply chain.
Issued in Kansas City, Missouri, on Relevant comments from all interested
including the ‘‘Inquiry into Counterfeit
October 5, 2018. persons are welcome and may help BIS
Electronic Parts in the Department of
Melvin J. Johnson, assess the prevalence of counterfeit
Defense Supply Chain’’ published by
Aircraft Certification Service, Deputy the Committee on Armed Services in the goods in military and civilian electronic
Director, Policy and Innovation Division, supply chains, the estimated cost to
United States Senate (Armed Services
AIR–601. industry to implement these potential
Report), as well as the ‘‘Secure E-Waste
[FR Doc. 2018–22467 Filed 10–22–18; 8:45 am] regulatory changes, and the
Export and Recycling Act’’ (H.R. 917),
BILLING CODE 4910–13–P
have raised concerns regarding effectiveness of the potential strategy to
counterfeit goods that may enter the reduce counterfeit goods that enter the
United States’ military and civilian military and civilian electronics supply
DEPARTMENT OF COMMERCE electronics supply chain. One of the chains.
potential sources for these counterfeit Potential Criteria Regarding Prohibition
Bureau of Industry and Security goods identified in the Armed Services and Exemption of Electronic Waste
Report is the unregulated recycling of Exports
15 CFR Parts 740 and 758 discarded electronic equipment that has
typically been shipped overseas from (1) Definition of ‘‘Electronic Waste’’
[Docket No. 180831812–8812–01]
the United States for disposal. The definition for electronic waste
RIN 0694–XC047 Although no specific legislation has being considered by BIS would include
yet been passed mandating export any of the following used items
Request for Public Comments
controls related to electronic waste, containing electronic components or
Regarding Foreign Disposition of
prior Congressional studies and actions fragments thereof, including parts or
Certain Commodities
have prompted the Bureau of Industry subcomponents of such items:
AGENCY: Bureau of Industry and and Security (BIS) to seek comments on (i) Computers and related equipment;
Security, Commerce. potential regulatory changes that would (ii) Data center equipment (including
ACTION: Notice of inquiry; request for limit the export of discarded electronic servers, network equipment, firewalls,
comments. equipment (electronic waste) by battery backup systems, and power
defining the term ‘‘electronic waste’’ distribution units);
SUMMARY: The Bureau of Industry and and prohibiting its export from the (iii) Mobile computers (including
Security (BIS) is seeking public United States unless certain conditions notebooks, netbooks, tablets, and e-book
comments on the effects and costs that are met. If electronic waste does not readers);
would result if BIS were to amend its meet these contemplated conditions, (iv) Televisions (including portable
regulations to reflect new export persons could be prohibited from televisions and portable DVD players);
authorization requirements regarding exporting the electronic waste and (v) Video display devices (including
khammond on DSK30JT082PROD with PROPOSAL

electronic waste, including new would need to identify a means of monitors, digital picture frames, and
recordkeeping requirements, reporting disposal within the United States. If portable video devices);
requirements, and data elements in the electronic waste meets the contemplated (vi) Digital imaging devices (including
Automated Export System, maintained conditions, it would be exempt from the printers, copiers, facsimile machines,
by the U.S. Census Bureau, to track prohibition, potentially eligible to image scanners, and multifunction
electronic waste that is exported. export under a new license exception or machines);
Comments from all interested persons other reporting requirement, and the (vii) Consumer electronics, including
are welcome and will help BIS export of these items could require new digital cameras, projectors, digital audio

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53412 Federal Register / Vol. 83, No. 205 / Tuesday, October 23, 2018 / Proposed Rules

players, cellular phones and wireless may arise from the definition used in filing systems to reflect regulatory
internet communication devices, audio this notice of inquiry. changes (either in the form of a new
equipment, video cassette recorders, license exception or an electronic waste
Potential Changes to the Regulations
DVD players, video game systems indicator in AES), and costs or effects
(including portable systems), video (1) Reporting Requirements for the that may arise from the potential
game controllers, signal converter boxes, Export of Exempted Electronic Waste changes described in this notice. In
and cable and satellite receivers; and BIS is seeking public comments on addition, BIS seeks comments on the
(viii) Portable global positioning two approaches that could be used to prevalence of counterfeit commodities
system navigation. track the export of electronic waste that in the electronic supply chains and
BIS welcomes comments from the is exempt from the prohibition. The first whether the changes contemplated in
public on the definition, or any approach would be to allow electronic this notice of inquiry would alleviate
alternative construct for a definition of waste that is exempt from the this problem.
electronic waste. prohibition to be exported under a Dated: October 17, 2018.
potential new license exception in the Richard E. Ashooh,
2) Electronic Waste Exemptions
Export Administration Regulations Assistant Secretary for Export
Electronic waste that would be (EAR) (15 CFR, subchapter C, parts 730– Administration.
exempted from the prohibition on 774). A second approach would be to [FR Doc. 2018–23044 Filed 10–22–18; 8:45 am]
export could include consumer track and record exempted electronic
BILLING CODE 3510–33–P
appliances that have electronic features, waste exports through a new data
electronic parts of a motor vehicle, element in the Automated Export
tested working used electronics, and System (AES), maintained by the U.S.
recalled electronics. Tested working Census Bureau (Census). BIS recognizes DEPARTMENT OF DEFENSE
used electronics would be determined, that Census proposed the introduction
Department of the Army
through testing methodologies, to be of a similar data element in the Federal
fully functional for the purpose for Register on March 9, 2016 (81 FR
32 CFR Part 553
which they were designed or, in the 12423), and ultimately removed the
case of multifunction devices, fully proposed requirement in their final rule [Docket No. USA–2018–HQ–0001]
functional for at least one of the primary published on April 19, 2017 (82 FR RIN 0702–AA80
purposes for which the items were 18385), because of public comments and
designed. This exemption from the concerns. BIS is nevertheless Army Cemeteries
potential export prohibition would considering re-introducing an electronic
include refurbished items or items waste indicator in AES as an alternate AGENCY: Department of the Army, DoD.
exported for reuse for the purpose for means to track the export of electronic ACTION: Proposed rule.
which they were designed. Recalled waste that qualifies for an exemption
from the prohibition. BIS welcomes SUMMARY: The Department of the Army
electronics include items that have been
comments and suggestions on other is proposing revisions regarding the
recalled by the manufacturer or are
possible approaches and mechanisms development, operation, maintenance,
subject to a recall notice issued by the
that would help the public comply with and administration of the Army
U.S. Consumer Product Safety
requirements for the export of electronic Cemeteries. The revisions include
Commission or other pertinent Federal
waste. changes in management and a name
authority.
change to the Army National Military
Also exempt from the prohibition (2) New Recordkeeping Requirements Cemeteries. The rule also adopts
would be items that are unusable that
BIS is seeking comments on new modifications suggested by the
are exported as feedstock, with no
recordkeeping requirements that would Department of the Army Inspector
additional mechanical or hand
apply to exports of exempted electronic General and approved by the Secretary
separation required, in a reclamation
waste under a potential new license of the Army, as well as implementing
process to render the electronic
exception and exports of electronic changes in interment eligibility due to
components or items recycled
waste tracked under a potential new statute.
consistent with the laws of the foreign
AES data element. Exporters would be DATES:Consideration will be given to all
country performing the reclamation
required to keep documentation on all comments received by December 24,
process. Feedstock means any raw electronic waste that is exported,
material constituting the principal input 2018.
including how the electronic waste met
for an industrial process. the criteria for exemption, and ADDRESSES: You may submit comments,
BIS welcomes comments from the including but not limited to the identified by 32 CFR part 553, Docket
public on criteria regarding exempted methodology used to test the items and No. USA–2018–HQ–0001 and/or by
electronic waste items. Items that do not the test results for each item. Regulatory Information Number (RIN)
meet the criteria for exemption could be 0702–AA80 or by any of the following
subject to a prohibition on export. Cost to Industry for Potential Changes to methods:
Persons would need to determine a the Regulations and the Prevalence of • Federal eRulemaking Portal: http://
means of disposal or destruction of non- Counterfeit Items in Electronic Supply www.regulations.gov. Follow the
exempted electronic waste within the Chains instructions for submitting comments.
khammond on DSK30JT082PROD with PROPOSAL

United States. BIS seeks public comments on the • Mail: Department of Defense, Office
BIS recognizes that other costs to exporters of determining of the Chief Management Officer,
organizations and government agencies eligibility for exemption of items that Directorate for Oversight and
may have different criteria or definitions fall under the definition of electronic Compliance, 4800 Mark Center Drive,
for electronic waste and other relevant waste (including the workability of the Mailbox #24, Suite 08D09, Alexandria,
terms. BIS seeks comment from the testing of used electronics), new VA 22350–1700.
public regarding these terms and any recordkeeping requirements for Instructions: All submissions received
discrepancies and uncertainties that exempted electronic waste, updates to must include the agency name and

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Document Created: 2018-10-23 04:14:44
Document Modified: 2018-10-23 04:14:44

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of inquiry; request for comments.
Dates		Comments must be received by BIS no later than December 24, 2018.
Contact		Eileen Albanese, Director, Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, Department of Commerce, by phone at (202) 482-0092, or by email at [email protected]
FR Citation		83 FR 53411
RIN Number		0694-XC04
CFR Citation		15 CFR 740 15 CFR 758

83 FR 53411 - Request for Public Comments Regarding Foreign Disposition of Certain Commodities

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 205 (October 23, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security