12 November 1998 Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html ----------------------------------------------------------------------- [Federal Register: November 12, 1998 (Volume 63, Number 218)] [Rules and Regulations] [Page 63141-63143] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr12no98-10] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Export Administration 15 CFR Parts 740 and 742 [Docket No. 980918239-8239-01] RIN 0694-AB78 Exports of High Performance Computers; Post-shipment Verification Reporting Procedures AGENCY: Bureau of Export Administration, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Bureau of Export Administration (BXA) is amending the Export Administration Regulations (EAR) (15 CFR parts 730-799) by revising the requirements for exports of high performance computers. This rule [[Page 63142]] revises post-shipment verification (PSV) reporting procedures originally implemented as a result of the National Defense Authorization Act (NDAA) for fiscal year 1998 (Pub L. 105-85, 111 Stat. 1629). DATES: This rule is effective November 12, 1998. FOR FURTHER INFORMATION CONTACT: William Arvin, Bureau of Export Administration, Telephone: (202) 482-5775. SUPPLEMENTARY INFORMATION: Background The National Defense Authorization Act (NDAA) for Fiscal Year 1998 contained provisions regarding exports and reexports of high performance computers. The NDAA established requirements for advance notification of exports and reexports of high performance computers and post-shipment verifications of such exports. On February 3, 1998, BXA published in the Federal Register a rule amending the EAR to implement these provisions (63 FR 5448). This rule revises the post-shipment verification reporting procedures. To address the volume of post-shipment verifications (PSVs) generated by the NDAA on high performance computer exports, BXA's Export Enforcement has created the High Performance Computer (HPC) Team. This rule directs PSV report submission to the HPC team. Rather than submit PSV reports within 30 days of export, as was previously required, exporters may now submit the reports no later than the last day of the month following the month in which the export took place. As part of the commodity description, reports must specify model number, serial number, and composite theoretical performance (CTP) in millions of theoretical operations per second (MTOPS) for each item. Exporters may no longer submit reports by facsimile. Although the Export Administration Act (EAA) expired on August 20, 1994, the President invoked the International Emergency Economic Powers Act and continued in effect, to the extent permitted by law, the provisions of the EAA and the EAR in Executive Order 12924 of August 19, 1994, as extended by the President's notices of August 15, 1995 (60 FR 42767), August 14, 1996 (61 FR 42527), August 15, 1997 (62 FR 43629), and August 13, 1998 (63 FR 44121). Rulemaking Requirements 1. This final 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 number 0694-0088, Multi-Purpose Application,'' which carries a burden hour estimate of 52.5 minutes per submission and control number 0694-0107, ``National Defense Authorization Act,'' Advance Notifications and Post-Shipment Verification reports. Reports in support of Post-Shipment Verifications require 15 minutes per submission, whether the Post-Shipment Verification is conducted on an export authorized under a license or License Exception CTP. 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 final 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. 553 or by any other law, the analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, this rule 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 sent to Hillary Hess, Director, Regulatory Policy Division, Bureau of Export Administration, Department of Commerce, P.O. Box 273, Washington, DC 20044. List of Subjects 15 CFR Part 740 Administrative practice and procedure, Exports, Foreign trade, Reporting and recordkeeping requirements. 15 CFR Part 742 Exports, Foreign trade. Accordingly, parts 740 and 742 of the Export Administration Regulations (15 CFR parts 730-799) are amended to read as follows: PART 740--[AMENDED] 1. The authority citation for part 740 is revised to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917 (1995); E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228 (1997); Notice of August 15, 1995, 3 CFR, 1995 Comp. 501 (1996); Notice of August 14, 1996, 61 FR 42527, 3 CFR, 1996 Comp., p. 298 (1997); Notice of August 13, 1997, 62 FR 43629, 3 CFR, 1997 Comp., p.306 (1998); Notice of August 13, 1998 (63 FR 44121, August 17, 1998); and P.L. 105-85, 111 Stat. 1629. 2. Section 740.7 is amended by revising paragraph (d)(4)(v) to read as follows: Sec. 740.7 Computers (CTP). * * * * * (d) * * * (4) NDAA notification. * * * (v) Post-shipment verification. * * * (A) Information that must be included in each post-shipment report. No later than the last day of the month following the month in which the export takes place, the exporter must submit the following information to BXA at the address listed in paragraph (d)(4)(v)(B) of this section: (1) Exporter name, address, and telephone number; (2) NDAA notification number; (3) Date of export; (4) End-user name, point of contact, address, telephone number; (5) Carrier; (6) Air waybill or bill of lading number; (7) Commodity description, quantities--listed by model numbers, serial numbers, and CTP level in MTOPS; and (8) Certification line for exporters to sign and date. The exporter must certify that the information contained in the report is accurate to the best of his or her knowledge. (B) Mailing address. A copy of the post-shipment report[s] required under paragraph (d)(4)(v)(A) of this section shall be delivered to one of the following addresses. Note that BXA will not accept reports sent C.O.D. [[Page 63143]] (1) For deliveries by U.S. postal service: Bureau of Export Administration, U.S. Department of Commerce, P.O. Box 273, Washington, D.C. 20044, Attn: HPC Team. (2) For courier deliveries: U.S. Department of Commerce, Office of the Assistant Secretary, For Export Enforcement, Room H3721, 14th Street and Constitution Ave. NW, Washington, DC 20230, Attn: HPC Team * * * * * PART 742--[AMENDED] 3. The authority citation for 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 (1979); E.O. 12851, 58 FR 33181, 3 CFR 1993 Comp., p. 608 (1994); E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917 (1995); E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950 (1995); E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228 (1997); Notice of August 15, 1995, 3 CFR, 1995 Comp. 501 (1996); Notice of August 14, 1996, 61 FR 42527, 3 CFR 1996 Comp., p. 298 (1997); Notice of August 13, 1997 62 FR 43629, 3 CFR, 1997 Comp., p. 306 (1998); Notice of August 13, 1998 (63 FR 44121, August 17, 1998); and P.L. 105-85, 111 Stat. 1629. 4. Section 742.12 is amended by revising paragraph (b)(3)(iv) to read as follows: Sec. 742.12 High performance computers. * * * * * (b) * * * (3) * * * (iv) Post-shipment verification. * * * (A) Information that must be included in each post-shipment report. No later than the last day of the month following the month in which the export takes place, the exporter must submit the following information to BXA at the address listed in paragraph (b)(3)(iv)(B) of this section: (1) Exporter name, address, and telephone number; (2) License number; (3) Date of export; (4) End-user name, point of contact, address, telephone number; (5) Carrier; (6) Air waybill or bill of lading number; (7) Commodity description, quantities--listed by model numbers, serial numbers, and CTP level in MTOPS; and (8) Certification line for exporters to sign and date. The exporter must certify that the information contained in the report is accurate to the best of his or her knowledge. (B) Mailing address. A copy of the post-shipment report[s] required under paragraph (b)(3)(vi)(A) of this section shall be delivered to one of the following addresses. Note that BXA will not accept reports sent C.O.D. (1) For deliveries by U.S. postal service: Bureau of Export Administration, U.S. Department of Commerce, P.O. Box 273, Washington, D.C. 20044, Attn: HPC Team. (2) For courier deliveries: U.S. Department of Commerce, Office of the Assistant Secretary For Export Enforcement, Room H3721, 14th Street and Constitution Ave. NW, Washington, DC 20230, Attn: HPC Team. * * * * * Dated: November 4, 1998. R. Roger Majak, Assistant Secretary for Export Administration. [FR Doc. 98-30250 Filed 11-10-98; 8:45 am] BILLING CODE 3510-33-P ----------------------------------------------------------------------- [Federal Register: November 12, 1998 (Volume 63, Number 218)] [Notices] [Page 63286-63287] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr12no98-37] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Export Administration National Defense Stockpile Market Impact Committee Request for Public Comments AGENCY: Office of Strategic Industries and Economic Security, Bureau of Export Administration, U.S. Department of Commerce. ACTION: Notice of request for public comment on the potential market impact of proposed disposals of excess commodities from the National Defense Stockpile. The Department of Defense plans to further revise certain material quantities included in the proposed Fiscal Year (FY) 1999 and the FY 2000 Annual Materials Plans (AMP). Defense has requested that the Committee consider the proposed revisions to the AMP disposal levels. ----------------------------------------------------------------------- SUMMARY: This notice is to advise the public that the National Defense Stockpile Market Impact Committee seeks comments concerning the potential market impact of disposals of excess materials from the Stockpile. The Departments of Commerce and State co-chair the Committee. The FY 1999 and proposed FY 2000 AMP materials under review are Bauxite (refractory), Tungsten (Ferro), Columbium Metal Ingots, Platinum-Iridium, and Tantalum Metal Ingots. DATE: The Commerce Department must receive comments by December 14, 1998. ADDRESSES: Please send all written comments to Richard V. Meyers, Co- Chair, Stockpile Market Impact Committee, Office of Strategic Industries and Economic Security, Room 3876, U.S. Department of Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 20230; FAX (202) 501-0657. FOR FURTHER INFORMATION CONTACT: Richard V. Meyers, Office of Strategic Industries and Economic Security, U.S. Department of Commerce, (202) 482-3634; or Stephen H. Muller, Office of International Energy and Commodity Policy, U.S. Department of State, (202) 647-2871; co-chairs of the National Defense Stockpile Market Impact Committee. SUPPLEMENTARY INFORMATION: The Department of Defense, as National Defense Stockpile Manager, maintains a stockpile of strategic and critical materials to supply the military, industrial, and essential civilian needs of the United States for national defense. The stockpile was established under the authority of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.). Defense is required by law to refrain from causing undue market disruption, while at the same time protecting the U.S. Government against avoidable loss, when disposing and acquiring materials. The President appointed an Interagency Market Impact Committee (the Committee) under the FY 1993 National Defense Authorization Act (NDAA) (50 U.S.C. 98h-1) to ``advise the National Defense Stockpile Manager on the projected domestic and foreign economic effects of all acquisitions and disposals of materials from the stockpile. * * *'' The Committee must also balance market impact concerns with the statutory requirement to protect the Government against avoidable loss. The Committee is comprised of representatives from the Departments of Commerce, State, Agriculture, Defense, Energy, Interior, Treasury and the Federal Emergency Management Agency and is co-chaired by the Departments of Commerce and State. The FY 1993 NDAA directs the Committee to ``consult from time to time with representatives of producers, processors and consumers of the types of materials stored in the stockpile.'' The Committee requests that interested parties provide comment on the potential market impact of the proposed revised disposals of these commodities. This information will enhance the quality of advice that the Committee offers to Defense. The AMP listing below includes the proposed maximum disposal quantity for each material. These quantities are not sales target disposal quantities. They are only a statement of the proposed maximum disposal quantity of each material that may be sold in a particular fiscal year. The quantity of each material that will actually be offered for sale will depend on the market for the material at the time as well as on the quantity of material approved for disposal by Congress. Proposed Revision to FY 1999 AMP and to Proposed FY 2000 AMP ------------------------------------------------------------------------ Current Revised Revised Material Units FY 1999 FY 1999 FY 2000 quantity quantity quantity ------------------------------------------------------------------------ Bauxite (Refractory)......... LCT..... 0 29,000 29,000 Columbium Metal Ingots....... Lb Cb... 0 20,000 20,000 Tantalum Metal Ingots........ Lb Ta... 0 40,000 40,000 Tungsten (Ferro)............. Lb W.... 100,000 400,000 400,000 Platinum-Iridium............. Tr Oz... 0 4,450 4,450 ------------------------------------------------------------------------ The Committee requests that interested parties provide written comments, supporting data and documentation, and any other relevant information on the potential market impact of the sale of these commodities. Public comments in response to this Notice must be received by December 14, 1998 to ensure the Committee's full consideration. Interested parties are encouraged to submit additional comments and supporting information at any time thereafter to keep the Committee informed of any market impact resulting from the sale of these commodities. Public comment is an important element of the Committee's market impact review process. Public comments received will be made available at the Department of Commerce for public inspection and copying. Material that is national security classified or business confidential will be exempted from public disclosure. Anyone submitting business confidential information should clearly identify the business confidential portion of the submission and also provide a non-confidential submission that can be placed in the [[Page 63287]] public file. Communications from agencies of the United States Government will not be made available for public inspection. The public record concerning this notice will be maintained in the Bureau of Export Administration's Records Inspection Facility, Room 4525, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230, telephone (202) 482-5653. The records in this facility may be inspected and copied in accordance with the regulations published in Part 4 of Title 15 of the Code of Federal Regulations (15 CFR 4.1 et seq.). Information about the inspection and copying of records at the facility may be obtained from Mr. Henry Gaston, the Bureau of Export Administration's Freedom of Information Officer, at the above address and telephone number. Dated: November 4, 1998. R. Roger Majak, Assistant Secretary for Export Administration. [FR Doc. 98-30157 Filed 11-10-98; 8:45 am] BILLING CODE 3510-33-P