[Federal Register Volume 59, Number 57 (Thursday, March 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6886]
[[Page Unknown]]
[Federal Register: March 24, 1994]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
15 CFR Part 799
[Docket No. 930775-4082]
RIN 0694-AA96
Removal of National Security-Based Validated License Requirements
for Exports to Proscribed Destinations of Oil Well Perforators
AGENCY: Bureau of Export Administration, Commerce.
ACTION: Final rule.
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SUMMARY: This final rule amends ECCN 1C18A to remove national security-
based validated license requirements for exports to Country Groups Q,
W, Y, and Z and the People's Republic of China of certain oil well
perforators. This action is a result of a determination that foreign
availability exists for certain oil well perforators within the meaning
of section 5(f) of the Export Administration Act (EAA), as amended, and
part 791 of the Export Administration Regulations (EAR). The Bureau of
Export Administration (BXA) published an interim rule in the Federal
Register on November 23, 1993 (58 FR 61806), that included the foreign
availability determination and removed national security-based
validated license requirements for exports of these oil well
perforators to Country Groups T and V, except the People's Republic of
China.
A validated export license continues to be required for exports to
Iran, Syria, Country Groups S and Z, and the South African military and
police, for foreign policy reasons.
This rule will eliminate export license applications for these oil
well perforators for all but a few countries, thereby reducing the
paperwork burden on exporters.
EFFECTIVE DATE: This rule is effective March 18, 1994.
FOR FURTHER INFORMATION CONTACT: For questions of a technical nature,
contact Jeffrey Tripp, Office of Technology and Policy Analysis, Bureau
of Export Administration, Department of Commerce, Telephone: (202) 482-
1309.
For questions on the foreign availability assessment, contact
Ronald Rolfe, Foreign Industrial Analyst, Office of Foreign
Availability, Bureau of Export Administration, Department of Commerce,
Telephone: (202) 482-0074.
SUPPLEMENTARY INFORMATION:
Background
Section 5(f)(3) of the EAA and part 791 of the EAR set forth the
procedures and criteria for determining the foreign availability of
items controlled for national security reasons. The Secretary of
Commerce, or the Secretary's designee, is authorized to determine
whether foreign availability exists.
With limited exceptions, the Department of Commerce may not
maintain national security controls on exports of an item when the
Department determines that items of comparable quality are available,
in fact, to countries from foreign sources in quantities sufficient to
render the controls ineffective in achieving their purpose.
On June 21, 1993, the Office of Foreign Availability (OFA)
initiated a foreign availability assessment of oil well perforators
controlled by ECCN 1C18A in response to a claim filed pursuant to Part
791 of the EAR. The Department published a notice of the initiation of
the assessment in the Federal Register on July 28, 1993 (58 FR 40407).
On October 18, 1993, the Acting Assistant Secretary, having
considered the assessment and other relevant information provided by
OFA, determined that foreign availability of certain oil well
perforators exists within the meaning of section 5(f) of the EAA and
part 791 of the EAR. The Department provided all interested agencies an
opportunity to review and comment on the assessment and determination.
On November 8, 1993, based on discussions with other agencies, the
Acting Assistant Secretary clarified the scope of oil well perforators
covered by the foreign availability determination, as provided for in
the EAA.
On November 23, 1993, the Department published an interim rule
containing the foreign availability determination. This rule removed
validated licensing requirements for exports to most non-proscribed
destinations (i.e. Country Groups T and V, except for Iran, Syria, and
the People's Republic of China) for oil well perforators controlled by
1C18A, and made them eligible for export under General License GFW.
Effective March 18, 1994, these oil well perforators are eligible
for export under General License G-DEST to all destinations except
Cuba, North Korea, Libya, Iran, Syria, and the South African military
and police.
Exporters should also be aware that the Department of the
Treasury's Office of Foreign Assets Control maintains an embargo on
other destinations, such as Iraq, Haiti, and the Federal Republic of
Yugoslavia (Serbia and Montenegro).
In the course of the foreign availability study, the U.S.
determined that there was not unanimous agreement that these oil well
perforators were, in fact, controlled under the COCOM International
Munitions List. Consistent with the foreign availability procedures,
the United States has notified COCOM that it is removing national
security controls on these oil well perforators.
This final rule amends ECCN 1C18A by revising the GFW paragraph in
the Requirements section to remove GFW eligibility for certain oil well
perforators. General License GFW no longer applies to these oil well
perforators because they may now be exported under General License G-
DEST to most destinations.
This rule also creates a new ECCN 1C93F for shaped charges
specially designed for oil well operations, utilizing one charge
functioning along a single axis, that upon detonation produce a hole,
and: (a) Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and
(b) have only a uniformly shaped conical liner with an included angle
of 90 degrees or less; and (c) have a total explosive mass of no more
than 90 grams; and (d) have a diameter not exceeding three inches.These
changes are controlled for foreign policy reasons to Country Groups S
and Z, Iran, Syria, and the South African military and police. The
creation of ECCN 1C93F does not constitute a new control.
Rulemaking Requirements
1. This rule was not subject to review by the Office of Management
and Budget under Executive Order 12866.
2. This rule involves collections of information subject to the
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These
collections have been approved by the Office of Management and Budget
under control numbers 0694-0005, 0694-0007, and 0694-0010.
3. This rule does not contain policies with Federalism implications
sufficient to warrant preparation of a Federalism assessment under
Executive Order 12612.
4. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by section
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other
law, under section 3(a) of the Regulatory Flexibility Act (5 U.S.C.
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis
has to be or will be prepared.
5. The provisions of the Administrative Procedure Act, 5 U.S.C.
553, requiring notice of proposed rulemaking, the opportunity for
public participation, and a delay in the effective date, are
inapplicable because this regulation involves a military or foreign
affairs function of the United States. Section 13(b) of the EAA does
not require that this rule be published in proposed form because this
rule does not impose a new control. Further, no other law requires that
a notice of proposed rulemaking and an opportunity for public comment
be given for this rule.
Therefore, this regulation is issued in final form. Although there
is no formal comment period, public comments on this regulation are
welcome on a continuing basis. Comments should be submitted to Patricia
Muldonian, Office of Technology and Policy Analysis, Bureau of Export
Administration, Department of Commerce, P.O. Box 273, Washington, DC
20044.
List of Subjects in 15 CFR Part 799
Exports, Reporting and recordkeeping requirements.
Accordingly, part 799 of the Export Administration Regulations (15
CFR parts 730-799) is amended as follows:
1. The authority citation for 15 CFR part 799 continues to read as
follows:
Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et
seq.), as amended; sec. 101, Pub. L. 93-153, 87 Stat. 576 (30 U.S.C.
185), as amended; sec. 103, Pub. L. 94-163, 89 Stat. 877 (42 U.S.C.
6212), as amended; secs. 201 and 201(11)(e), Pub. L. 94-258, 90
Stat. 309 (10 U.S.C. 7420 and 7430(e)), as amended; Pub. L. 95-223,
91 Stat. 1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 92 Stat. 120
(22 U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, Pub. L. 95-
372, 92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 Stat. 503 (50
U.S.C. App. 2401 et seq.), as amended (extended by Pub. L. 103-10,
107 Stat. 40); sec. 125, Pub. L. 99-64, 99 Stat. 156 (46 U.S.C.
466c); E.O. 11912 of April 13, 1976 (41 FR 15825, April 15, 1976);
E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended;
E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978; E.O. 12214 of
May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12735 of November 16,
1990 (55 FR 48587, November 20, 1990), as continued by Notice of
November 12, 1993 (58 FR 60361, November 15, 1993); E.O. 12867 of
September 30, 1993 (58 FR 51743, October 7, 1993; and E.O. 12868 of
September 30, 1993 (58 FR 51749, October 7, 1993).
PART 799--[AMENDED]
Supplement No. 1 to Sec. 799.1--[Amended]
2. In Supplement No. 1 to Sec. 799.1 (the Commerce Control List),
Category 1 (Materials), ECCN 1C18A is revised and a new ECCN 1C93F is
added, as follows:
1C18A Items on the International Munitions List
Requirements
Validated License Required: QSTVWYZ
Unit: Kilograms
Reason for Control: NS
GLV: $3,000
GCT: No
GFW: Yes (Advisory Note Only).
List of Items Controlled
a. Ethyl and Methyl centralites.
b. NN-Diphenylurea (unsymmetrical diphenylurea).
c. Methyl-NN-diphenylurea (methyl unsymmetrical diphenylurea).
d. Ethyl-NN-diphenylurea (ethyl unsymmetrical diphenylurea).
e. Ethyl phenyl urethane.
f. Diphenyl urethane.
g. Diortho tolyl-urethane.
h. 2-Nitrodiphenylamine.
i. p-Nitromethylaniline.
j. 2,2' Dinitropropanol.
k. Bis(2,2' dinitropropyl) formal and acetal.
l. 3-Nitraza-1,5 pentane diisocyanate.
m. Guanidine nitrate.
n. Hydrogen peroxide in concentrations of 85%.
o. Charges specially designed for civilian applications, containing
military explosives, except those items described in 1C93.
TECHNICAL NOTE: Military high explosives are solid, liquid or
gaseous substances or mixtures of substances that, in their
application as primary, booster, or main charges in warheads,
demolition and other military applications, are required to
detonate.
ADVISORY NOTE: Licenses are likely to be approved for export to
satisfactory end-users in Country Groups QWY and the PRC of certain
explosive substances and mixtures in reasonable quantities for
civilian or industrial purposes when made into cartridges or charges
of an exclusively civilian or industrial nature, such as propellants
for sporting purposes or shooting gallery practice; cartridges for
riveting guns; and explosive charges for agricultural purposes,
public works, mines, quarries or oil-well drilling. The following
are the substances or mixtures to which this procedure applies:
a. Nitrate-based (40 percent or more) and provided they do not
contain more than 40 percent nitroglycol/nitroglycerin or no more
than 16 percent TNT;
b. Nitrocellulose with a nitrogen content of over 12.2 percent;
c. Nitroglycerin;
d. Single base nitrocellulose; and
e. Sodium azide and other inorganic azides.
* * * * *
1C93F Oil Well Perforators
Requirements
Validated License Required: SZ, Iran, Syria, South African military and
police
Unit: Number
Reason for Control: FP
GLV: No
GCT: No
GFW: No
List of Items Controlled
a. Shaped charges specially designed for oil well operations,
utilizing one charge functioning along a single axis, that upon
detonation produce a hole, and:
a.1. Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and
a.2. Have only a uniformly shaped conical liner with an included
angle of 90 degrees or less; and
a.3. Have a total explosive mass of no more than 90 grams; and
a.4. Have a diameter not exceeding three inches.
b. [Reserved]
Dated: March 17, 1994.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 94-6886 Filed 3-23-94; 8:45 am]
BILLING CODE 3510-DT-P
