[Federal Register Volume 60, Number 126 (Friday, June 30, 1995)]
[Rules and Regulations]
[Pages 34143-34144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16123]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 505
Regulations Prohibiting Transactions Involving the Shipment of
Certain Merchandise Between Foreign Countries; Partial Lifting of
Restrictions
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.
-----------------------------------------------------------------------
SUMMARY: The Treasury Department is lifting prospectively prohibitions
set forth in the Transaction Control Regulations as they relate to
offshore trade in strategic goods of the types controlled for
exportation from the United States for national security reasons under
the Export Administration Act of 1979. Offshore transactions in items
of the types controlled for exportation under the Arms Export Control
Act of 1976 or the Atomic Energy Act of 1954 remain subject to the
prohibitions.
EFFECTIVE DATE: June 27, 1995.
FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing
(tel.: 202/622-2480), or William B. Hoffman, Chief Counsel (tel.: 202/
622-2410), Office of Foreign Assets Control, Department of the
Treasury, Washington, D.C. 20220.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document is available as an electronic file on The Federal
Bulletin Board the day of publication in the Federal Register. By modem
dial 202/512-1387 and type ``/GO/FAC'' or call 202/512-1530 for disks
or paper copies. This file is available for downloading in WordPerfect
5.1, ASCII, and Postscript formats. The document is also accessible for
downloading in ASCII format without charge from Treasury's Electronic
Library (``TEL'') in the ``Business, Trade and Labor Mall'' of the
FedWorld bulletin board. By modem dial 703/321-3339, and select self-
expanding file ``T11FR00.EXE'' in TEL. For Internet access, use one of
the following protocols: Telnet = fedworld.gov (192.239.93.3); World
Wide Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov
(192.239.92.205).
Background
On April 4, 1994, the Department of Commerce amended the Export
Administration Regulations, 31 CFR parts 768-799 (1994) (the ``EAR''),
to reflect the termination of the Cold War regime known as The
Coordinating Committee for Multilateral Export Controls (``COCOM'') on
March 31, 1994. The exportation of many dual-use items to civil end-
users in the former Soviet Bloc and China was authorized by a new
General License GLX. In light of these developments, the Office of
Foreign Assets Control is amending the Transaction Control Regulations,
31 CFR part 505 (the ``TCR''), that prohibit ``persons within the
United States'' (U.S. firms and residents and foreign firms owned or
controlled by them) from involvement in offshore strategic exports from
third countries to certain Communist and formerly Communist countries
listed on a schedule in Sec. 505.10.
Section 505.10 is amended by removing prohibitions pertaining to
transactions in items that, were they of U.S. origin, would be
restricted for exportation from the United States for national security
reasons, as listed on the Commodity Control List in supplement no. 1 to
part 799 of the EAR. Persons within the United States remain subject to
the prohibitions in the TCR as they relate to offshore trade in items
of the types controlled for exportation from the United States under
the Arms Export Control Act of 1976, 22 U.S.C. 2778, or the Atomic
Energy Act of 1954, 42 U.S.C. 2011-2297g-4. Any person within the
United States who sells or purchases, or arranges the purchase, sale or
financing of these items from a third country to a designated country
must be covered by a general or specific license from the Office of
Foreign Assets Control authorizing the transaction. This final rule
does not affect enforcement actions with respect to prior violations of
this part.
Because the TCR involve a foreign affairs function, Executive Order
12866 and the provisions of the Administrative Procedure Act, 5 U.S.C.
553, requiring notice of proposed rulemaking, opportunity for public
participation, and delay in effective date, are inapplicable. Because
no notice of proposed rulemaking is required for this rule, the
Regulatory Flexibility Act, 5 U.S.C. 601-612, does not apply.
List of Subjects in 31 CFR Part 505
Administrative practice and procedure, Banks, banking, COCOM,
Communist countries, Exports, Finance, Foreign trade, Penalties,
Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 31 CFR part 505 is
amended as set forth below:
[[Page 34144]]
PART 505--REGULATIONS PROHIBITING TRANSACTIONS INVOLVING THE
SHIPMENT OF CERTAIN MERCHANDISE BETWEEN FOREIGN COUNTRIES
1. The authority citation for part 505 is revised to read as
follows:
Authority: 50 U.S.C. App. 1-44; E.O. 9193, 7 FR 5205, 3 CFR,
1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948
Comp., p. 748.
2. Paragraph (b), preceding the ``Schedule,'' of Sec. 505.10 is
revised to read as follows:
Sec. 505.10 Prohibitions.
* * * * *
(b) The merchandise is of a type the unauthorized exportation of
which from the United States is prohibited by regulations issued under
the Arms Export Control Act of 1976, 22 U.S.C. 2778, or the Atomic
Energy Act of 1954, 42 U.S.C. 2011-2297g-4, or successor acts
restricting the exportation of strategic goods.
* * * * *
3. Paragraphs (a) introductory text and (a)(1) of Sec. 505.31 are
revised to read as follows:
Sec. 505.31 General license for offshore transactions from certain
countries.
(a) Except as provided in paragraph (b) of this section, all
transactions prohibited by Sec. 505.10 are hereby authorized provided:
(1) Shipment is to a country listed in the schedule to Sec. 505.10,
other than North Korea; and
* * * * *
Dated: June 14, 1995.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved: June 16, 1995.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 95-16123 Filed 6-27-95; 4:26 pm]
BILLING CODE 4810-25-F
