Billing Code: 3510-33-P

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 758

[Docket No. 980730200-8200-01]

RIN 0694-AB71

Revisions to the Export Administration Regulations; Shipper's Export Declaration requirements for exports valued less than $2,500

AGENCY: Bureau of Export Administration, Commerce

ACTION: Final rule.

SUMMARY: To further the Bureau of Export Administration's efforts in harmonizing the Export Administration Regulations (EAR) with the Bureau of the Census Foreign Trade Statistics Regulations, this final rule amends the EAR by revising the Shipper's Export Declaration (SED) provisions to expand the country scope of the $2,500 exemption for filing an SED with the Bureau of the Census. This final rule also clarifies that the Harmonized Tariff Schedule number may be used in lieu of the Schedule B number on the Shipper's Export Declaration. This final rule will not significantly affect the paperwork burden on U.S. industry.

DATES: This rule is effective (DATE OF PUBLICATION).

FOR FURTHER INFORMATION CONTACT: Nancy Crowe, Regulatory Policy Division, Bureau of Export Administration, at (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

The Bureau of Export Administration (BXA) is amending the Export Administration Regulations (EAR) to further its efforts in harmonizing the EAR with the Bureau of the Census Foreign Trade Statistics Regulations (FTSR). Specifically, this rule amends §758.1(e)(1)(i)(A) of the EAR by revising the Shipper's Export Declaration (SED) requirements for exports of items valued at $2,500 or less. With this change, no SED is required for any shipment, other than a shipment made under a license issued by BXA or shipments to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, if the shipment is valued at $2,500 or less per Schedule B Number. Conforming amendments to the FTSR will be published in the Federal Register by the Bureau of the Census.

This rule also amends §§758.1 and 758.3 of the EAR by replacing the phrase "or other number acceptable to the Foreign Trade Division, Bureau of the Census" with the phrase "or Harmonized Tariff Schedule number." This will clarify an existing policy of the Bureau of the Census to allow exporters to use either the Schedule B number or the Harmonized Tariff Schedule number when preparing the SED.

Although the Export Administration Act ( EAA ) expired on August 20, 1994, the President invoked the International Emergency Economic Powers Act and continued in effect the EAR, and, to the extent permitted by law, the provisions of the EAA in Executive Order 12924 of August 19, 1994, extended by Presidential notice of August 13, 1998 (63 FR 44121, August 17, 1998).

Rulemaking Requirements

1. This interim rule has been determined to be not significant for purposes of E.O. 12866.

2. Notwithstanding any other provision of law, no person is required to, nor shall any person be subject to a penalty for failure to comply with a collection of information, subject to the Paperwork Reduction Act (PRA), unless that collection of information displays a currently valid OMB Control Number. This rule involves a collection of information subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). This collection has been approved by the Office of Management and Budget under control number 0607-0152.

3. This rule does not contain policies with Federalism implications sufficient to warrant preparation of a Federalism assessment under Executive Order 12612.

4. 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 effective date, are inapplicable because this regulation involves a military and foreign affairs function of the United States (Sec. 5 U.S.C. 553(a)(1)). Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 5 U.S.C. or by any other law, the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq. ) are not applicable.

List of Subjects

15 CFR Part 758

Administrative practice and procedure, Exports, Foreign trade, Reporting and Record keeping requirements.

Accordingly, part 758 of the Export Administration Regulations (15 CFR Parts 730-799) are amended as follows:

1. The authority citation for 15 CFR part 758 continues to read as follows:

Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 13, 1997 (62 FR 43629, August 15, 1997).

PART 758 - [AMENDED]

2. Section 758.1 is amended by revising the paragraph (e)(1(i)(A) to read as follows:

§758.1 Export clearance requirements

* * * * *

(e) * * *

(1) * * *

(i) * * *

(A) Any shipment, other than a shipment made under a license issued by BXA or shipments to Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria if the shipment is valued at $2,500 or less per Schedule B Number. The Schedule B number of an item is shown in the current edition of the Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. As used in this paragraph (e), "shipment" means all items classified under a single Schedule B number (or Harmonized Tariff Schedule number if the Schedule B number is not available), shipped on the same carrier, from one exporter to one importer. The Foreign Trade Statistics Regulations of the Bureau of the Census (15 CFR part 30) shall govern the valuation of items when determining whether a shipment meets the $2,500 threshold of this paragraph.

* * * * *

3. Section 758.3 is amended by revising the parenthetical phrase "(or other number acceptable to the Foreign Trade Division, Bureau of the Census)" to read "(or Harmonized Tariff Schedule number)" in the following places:

§758.3(f)(1)

§758.3(g)(1)

§758.3(g)(2)(i)

§758.3(g)(2)(ii) - 2 references

§758.3(g)(3)

§758.3(h)(1)

Dated:

R. Roger Majak

Assistant Secretary

for Export Administration