Billing Code: 3510-33-P

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 742 and 745

Docket No.990416098-9237-02

RIN 0694-AB67

Chemical Weapons Conventions; Revisions to the Export Administration Regulations; States

Parties; Licensing Policy Clarification

AGENCY: Bureau of Export Administration, Commerce

ACTION: Interim rule.

SUMMARY: On May 18, 1999, the Bureau of Export Administration published an interim rule (64 FR 27138 ) implementing the export control and reporting provisions of the Chemical Weapons Convention. This rule adds Estonia, Holy See, Micronesia, Nigeria and Sudan to the list of States Parties to the Convention, and makes clarifications in the licensing policy for exports and reexports of Schedule 2 and Schedule 3 chemicals. Finally, this rule also adds the addresses of the authorized agencies in Taiwan responsible for issuing End-Use Certificates, and removes the previously listed office.

DATES: This rule is effective September 13, 1999.

FOR FURTHER INFORMATION CONTACT: Nancy Crowe or Sharron Cook, Regulatory

Policy Division, Bureau of Export Administration, at (202) 482-2440.

SUPPLEMENTARY INFORMATION:

On May 18, 1999, the Bureau of Export Administration published an interim rule (64 FR 27138 ) implementing the export control and certain reporting provisions of the Convention on the Prohibition of the Development, Production, Stockpiling, and Use of Chemical Weapons and on Their Destruction (Convention or CWC). This rule amends Supplement No. 2 to Part 745 of the Export Administration Regulations (EAR) to add Estonia, Holy See, Micronesia, Nigeria and Sudan to the list of States Parties to the Convention. This rule also clarifies that for CWC States Parties status only, Hong Kong is treated like the People's Republic of China. This does not change the export licensing policy for Hong Kong.

This rule also amends §742.18(b) of the EAR to clarify the licensing policy for exports and reexports of Schedule 2 and Schedule 3 chemicals to non-States Parties. Specifically, §742.18(b) is amended by removing the presumption of approval language with regard to exports and reexports of Schedule 2 and Schedule 3 chemicals to CWC States Parties as well as non-States Parties. This language is being removed because no license is required for exports and reexports of Schedule 2 and Schedule 3 chemicals to States Parties for the Chemical Weapons ("CW") reason for control. Further, no license is required for exports of Schedule 2 chemicals to non- States Parties prior to April 29, 2000, for the CW reason for control unless the exporter is not able to obtain an End-Use Certificate prior to the export. Finally, no license is required for exports of Schedule 3 chemicals to non-States Parties for the CW reason for control unless the exporter is not able to obtain an End-Use Certificate prior to the export. Applications for exports of Schedule 2 and Schedule 3 chemicals to non-States Parties when no End-Use Certificate is obtained will generally be denied. Note that the revisions to §742.18(b) do not change currentlicensing policy.

Finally, this rule also amends Supplement No. 3 to Part 745 to add the addresses of the authorized agencies in Taiwan responsible for issuing End-Use Certificates and remove the Taiwan office previously listed. Three offices in Taiwan have the responsibility for issuing End- Use Certificates. Two of the three offices (Export Processing Zone Administration and the Science-Based Industrial Park Administration) are in special economic zones and are responsible for the activity in their respective zones only.

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 55121, 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 collections of information subject to the

Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). These collections have been

approved by the Office of Management and Budget under control numbers 0694-0088 and 0694-

0117.

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 by 5 U.S.C. 553, or by any other law, the analytical requirements of the Regulatory

Flexibility Act, 5 U.S.C. 601 et seq., are inapplicable.

List of Subjects

15 CFR Parts 742

Exports, Foreign trade.

15 CFR Part 745

Administrative practice and procedure, Exports, Foreign trade, Reporting and

recordkeeping requirements.

Accordingly, parts 742 and 745 of the Export Administration Regulations (15 CFR Parts

730-799) are amended to read as follows

1. The authority citation for 15 CFR part 742 is revised to read as follows:

Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 18 U.S.C. 2510 et seq.; 22

U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;

E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994

Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR

58767, 3 CFR, 1996 Comp., p. 228; Notice of November 12, 1998, 63 FR 63589, 3 CFR, 1998

Comp., p. 305; Notice of August 10, 1999, 64 FR 44101 (August 13, 1999).

2. The authority citation for 15 CFR part 745 is revised to read as follows:

Authority: 50 U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.

950; Notice of November 12, 1998, 63 FR 63589, 3 CFR, 1998 Comp., p. 305; Notice of August

10, 1999, 64 FR 44101 (August 13, 1999).

PART 742 -AMENDED

3. Section 742.18 is amended by removing paragraph (b)(2)(i), redesignating paragraphs

(b)(2)(ii) and (iii) as (b)(2)(i) and (ii), and revising newly redesignated paragraph (b)(2)(i)(A) to

read as follows:

§742.18 Chemical Weapons Convention (CWC or Convention).

* * * * *

(b) * * *

(1) * * *

(2) Schedule 2 and Schedule 3 chemicals. (i)(A) ECCN 1C350. Applications to export

Schedule 2 chemicals prior to April 29, 2000, and Schedule 3 chemicals controlled under ECCN

1C350 to CWC non-States parties will generally be denied.

* * * * *

PART 745 - AMENDED

4. Section 745.2 is amended by revising the third and fourth sentences in paragraph (a)(1),

to read as follows:

§745.2 End-use certificate reporting requirements under the Chemical Weapons Convention

*	*	*	*	*

(a)	*	*	*

(1)	*	*	*	Supplement No. 3 to this part includes foreign authorized agencies responsible for issuing End-Use Certificates pursuant to this section. Additional foreign authorized agencies responsible for issuing End-Use Certificates will be included in Supplement No. 3 to this part when known.	*	*	*

*	*	*	*	*

5. Supplement No. 2 to part 745 is revised to read as follows:

SUPPLEMENT NO. 2 TO PART 745 - STATES PARTIES TO THE

CONVENTION ON THE PROHIBITION OF THE DEVELOPMENT, PRODUCTION, STOCKPILING, AND USE OF CHEMICAL WEAPONS AND ON THEIR DESTRUCTION

List of States Parties as of [insert date of publication]

Albania

Algeria

Argentina

Armenia

Australia

Austria

Bahrain

Bangladesh

Belarus

Belgium

Benin

Bolivia

Bosnia-Herzegovina

Botswana

Brazil

Brunei Darussalam

Bulgaria

Burkina Faso

Burundi

Cameroon

Canada

Chile

China*

Cook Islands

Costa Rica

Cote d'Ivoire (Ivory Coast)

Croatia

Cuba

Cyprus

Czech Republic

Denmark

Ecuador

El Salvador

Equatorial Guinea

Estonia

Ethiopia

Fiji

Finland

France

Gambia

Georgia

Germany

Ghana

Greece

Guinea

Guyana

Holy See

Hungary

Iceland

India

Indonesia

Iran

Ireland

Italy

Japan

Jordan

Kenya

Korea (Republic of)

Kuwait

Laos (P.D.R.)

Latvia

Lesotho

Lithuania

Luxembourg

Macedonia

Malawi

Maldives

Mali

Malta

Mauritius

Mauritania

Mexico

Micronesia

Moldova (Republic of)

Monaco

Mongolia

Morocco

Namibia

Nepal

Netherlands

New Zealand

Niger

Nigeria

Norway

Oman

Pakistan

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Qatar

Romania

Russian Federation

Saint Lucia

Saudi Arabia

Senegal

Seychelles

Singapore

Slovak Republic

Slovenia

South Africa

Spain

Sri Lanka

Sudan

Suriname

Swaziland

Sweden

Switzerland

Tajikistan

Tanzania

Togo

Trinidad and Tobago

Tunisia

Turkey

Turkmenistan

United Kingdom

Ukraine

United States

Uruguay

Uzbekistan

Venezuela

Vietnam

Zimbabwe

* For CWC purposes only, China includes Hong Kong

6. Supplement No. 3 to part 745 is amended by revising the title to the supplement,

and revising the entry for Taiwan, to read as follows:

SUPPLEMENT NO. 3 TO PART 745 - FOREIGN AUTHORIZED AGENCIES RESPONSIBLE FOR ISSUING END-USE CERTIFICATES PURSUANT TO §745.2

* * * * *

Taiwan1	Board of Foreign Trade,

Ministry of Economic Affairs

1 Hukou St., Taipei

Tel:	(02) 2351-0271

Fax:	(02) 2351-3603

Export Processing Zone Administration,

Ministry of Economic Affairs

600 Chiachang Rd., Nantze, Kaohsiung

Tel:	(07) 361-1212

Fax:	(07) 361-4348

Science-Based Industrial Park Administration

National Science Council

Executive Yuan

2 Hsin-an Rd., Hsinchu

Tel:	(03) 577-3311

Fax:	(03) 577-6222

Dated:

R. Roger Majak

Assistant Secretary

for Export Administration