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Federal Register/Vol. 64, No. 95/Tuesday, May 18, 1999/Rules 27138 Federal Register / Vol. 64, No. 95 / Tuesday, May 18, 1999 / Rules and Regulations DEPARTMENT OF COMMERCE ADDRESSES: Written comments should families of chemicals. The United States be sent to Nancy Crowe, Regulatory is a participant in the Australia Group Bureau of Export Administration Policy Division, Bureau of Export (AG), a 30-nation multilateral chemical Administration, Room 2705, 14th Street and biological weapons non- 15 CFR Parts 734, 736, 738, 740, 742, and Pennsylvania Ave., NW, proliferation regime. All AG 745, 748, 758, 772 and 774 Washington, DC 20230. participants have national export [Docket No. 990416098±9098±01] FOR FURTHER INFORMATION CONTACT: controls on 54 precursor chemicals, Nancy Crowe, Regulatory Policy some of which are listed on the CWC RIN 0694±AB67 Division, Bureau of Export Schedules, and on chemical-related Implementation of the Chemical Administration, at (202) 482±2440. production equipment. Two Schedule 1 Weapons Convention; Revisions to the SUPPLEMENTARY INFORMATION: toxins, ricin and saxitoxin, are subject to Export Administration Regulations the EAR, are listed in Export Control Background Classification Number (ECCN) 1C351 on AGENCY: Bureau of Export As a party to the Convention on the the Commerce Control List (CCL), and Administration, Commerce. Prohibition of the Development, currently require a license for chemical ACTION: Interim rule. Production, Stockpiling, and Use of and biological (CB) non-proliferation Chemical Weapons and on Their reasons for export to all destinations SUMMARY: On April 25, 1997, the United Destruction, also known as the except Canada. Three additional States ratified the Convention on the Chemical Weapons Convention (CWC or Schedule 1 chemicals, O-Ethyl-2- Prohibition of the Development, Convention), the United States must, diisopropylaminoethyl methyl Production, Stockpiling, and Use of among other obligations, subject certain phosphonite (57856±11±8), Chemical Weapons and on Their toxic chemicals and their precursors Ethylphosphonyl difluoride (753±98±0) Destruction, also known as the listed in the Convention to verification and Methylphosphonyl difluoride (676± Chemical Weapons Convention (CWC or measures and control. This rule 99±3), are controlled by ECCN 1C350, Convention). The CWC identifies implements certain export-related and currently require a license for CB Schedule 1, Schedule 2 and Schedule 3 provisions of the Convention. reasons for export to all destinations chemicals subject to certain trade Regulations to implement other except AG-member countries. As a restrictions. This interim rule provisions of the Convention related to result of this rule, all five Schedule 1 implements the provisions of the data declarations and inspections will chemicals subject to the EAR will Convention that affect exports and be published by the Department of require a license to all destinations, reexports of Schedule 1 chemicals and Commerce in the Federal Register at a including Canada. All other Schedule 1 exports of Schedule 2 and Schedule 3 later date. chemicals are considered defense chemicals to countries that are not party The CWC-related toxic chemicals and articles under U.S. law and, as such, are to the Convention (non-States Parties) their precursors are contained in three controlled by the Department of State by amending the Export Administration lists or ``schedules.'' CWC Schedule 1 under the International Traffic in Arms Regulations (EAR). Specifically, this chemicals and precursors are those that Regulations (ITAR), (22 CFR 120, 121.7). rule adds a requirement for U.S. persons have been developed, produced, This rule establishes a new reason for to obtain an End-Use Certificate for stockpiled, or used as chemical control, ``Chemical Weapons weapons in the past, or that have high exports of certain chemicals to those Convention'', or CW, in Control potential for use as chemical weapons, countries that are not party to the PolicyÐCommerce Control List Based possess lethal or incapacitating toxicity, Convention, and submit a copy of that Controls (part 742 of the EAR). New or may be used as precursors in the certificate to the Department of § 742.18, sets forth the licensing production of other Schedule 1 Commerce. This rule also adds licensing requirements and policies for this new requirements for technology for the chemicals. CWC Schedule 2 lists toxic chemicals control, and applies to Schedule 1 production of certain Schedule 2 and and precursors that are not produced in chemicals identified under ECCNs Schedule 3 chemicals subject to the large commercial quantities and that 1C350 and 1C351 and Schedule 2 and Export Administration Regulations, and possess lethal or incapacitating toxicity Schedule 3 chemicals identified under creates an advance notification and that could enable them to be used as ECCN 1C350 and new ECCN 1C355, and annual report requirement for all chemical weapons, may be used as to technology identified under new exports of Schedule 1 chemicals. To precursors in one of the chemical ECCN 1E355. facilitate verification measures by the reactions at the final stage of formation New § 742.18 reflects the Organization for the Prohibition on of a chemical listed in Schedule 1 or requirements of the Convention. Under Chemical Weapons (OPCW), this rule Schedule 2, or are important in the the Convention, Schedule 1 chemicals modifies an existing License Exception production of Schedule 1 or Schedule 2 may only be exported to other States to permit the release of technology to chemicals. Parties. States Parties exporting the OPCW during inspections of CWC Schedule 3 lists toxic chemicals Schedule 1 chemicals must provide chemical facilities in the United States that may be produced in large advance notification of exports of any and to permit the export or reexport of commercial quantities for purposes not quantity of a Schedule 1 chemical, and equipment for use in inspections in prohibited under the Convention and must submit annual reports of exports of countries party to the Convention. that have been produced, stockpiled, or such chemicals during the previous DATES: This rule is effective May 18, used as chemical weapons, possess calendar year. The Convention also 1999. Comments on this rule must be lethal or incapacitating toxicity that requires that prior to the export of a received on or before June 17, 1999. could enable them to be used as Schedule 2 or Schedule 3 chemical to a Annual reports for exports of Schedule chemical weapons, or are important in non-State Party, the exporter obtain an 1 chemicals during calendar years 1997 the production of one or more chemicals End-Use Certificate issued by the and 1998 must be received by the listed in Schedule 1 or Schedule 2. government of the importing country. Department of Commerce by August 16, The Convention mandates trade No Schedule 2 chemical may be 1999. restrictions on individual chemicals and exported to a non-State Party after April VerDate 06-MAY-99 14:28 May 17, 1999 Jkt 183247 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\A18MY0.203 pfrm07 PsN: 18MYR3 Federal Register / Vol. 64, No. 95 / Tuesday, May 18, 1999 / Rules and Regulations 27139 29, 2000. Specifically, this rule amends obtain an End-Use Certificate from the destined to non-States Parties, except the EAR in the following ways: government of the importing country for Israel and Taiwan. Applications for and submit a copy of the End-Use such exports and reexports will be Schedule 1 Chemical Requirements Certificate to the Department of considered on a case-by-case basis. Note Export license requirements for Commerce within 7 days of the date of that once countries become State Schedule 1 chemicals. This rule export. This Certificate must be issued Parties, they will be eligible to receive imposes a license requirement for CW by the foreign government's agency production technology controlled under reasons for exports of CWC Schedule 1 responsible for foreign affairs or any 1E355 without a license. chemicals controlled under ECCN other agency or department designated This interim rule also imposes anti- 1C350.a.20, a.24, and a.31 and ECCN by the importing government for this terrorism controls on technology 1C351.d.5 and d.6. to all countries, purpose, and may be issued to cover controlled under ECCN 1E355 for Iran, including Canada. Reexports of aggregate quantities against which Sudan and Syria, consistent with the Schedule 1 chemicals are prohibited. multiple shipments may be made to a provisions of the Export Administration Note that since exports of Schedule 1 single consignee. An End-Use Certificate Act after consultation with the Secretary chemicals are controlled for more than covering multiple shipments may be of State. one reason, licenses for such chemicals used until the aggregate quantity is Exports and reexports of equipment will be reviewed under the license shipped. New Supplement No. 1 to part for use in inspections conducted by the review policy for all applicable reasons 745 includes a list of Schedule 2 and OPCW and for the release of technology for control, including the license review Schedule 3 chemicals subject to the to the OPCW during inspections. This policy set forth in § 742.2 and new End-Use Certificate requirement, and rule also revises License Exception GOV § 742.18 of the EAR. new Supplement No. 2 to part 745 to permit the export and reexport of Advance notification and annual includes a list of States Parties. New equipment for use in inspections in reporting of exports of Schedule 1 Supplement No. 3 to part 745 of the countries party to the Convention, and chemicals. This rule adds a new part EAR includes foreign government to permit the release of technology to 745 for CWC advance notification and agencies responsible for issuing End- the Organization for the Prohibition of certain other reporting requirements. Use Certificates. Additional foreign Chemical Weapons (OPCW) during Section 745.1 sets forth the notification government entities will be added to inspections of chemical facilities in the and reporting requirements for exports Supplement No.
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