Country Group C: Destinations of Diversion Concern (Rin 0694-Ad93)
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RECORD OF COMMENTS: COUNTRY GROUP C: DESTINATIONS OF DIVERSION CONCERN (RIN 0694-AD93) Published in the Federal Register 72 FR 8315 Comments Due: March 12, 2007 COMMENT # SOURCE SIGNER OF DATE # OF LETTER/EMAIL PAGES 1 Hittite Microwave Corp Scott E. Barney 02/28/07 1 2 Extreme Networks Julie Holland 03/01/07 1 3 Dubai Chamber of Hamad Buamim 03/11/07 4 Commerce & Industry 4 Baker Hughes Bryan Schillinger 03/12/07 2 5 Endevco Corporation Russell W. Spittler 03/12/07 5 6 Wisconsin Project on Arthur Shulman 03/12/07 13 Nuclear Arms Control 7 Pacific Sky Supply, Inc Kelly Anderson 03/12/07 1 8 Telecommunications Grant Seiffert 03/12/07 2 Industry Association (TIA) 9 American Electronics Ken Montgomery 03/12/07 3 Association (AeA) Federal Register / Vol. 72, No. 37 / Monday, February 26, 2007 / Proposed Rules 8315 That airspace extending upward from 700 Background Request for Comment feet above the surface within a 6.3-mile radius of the Middlesboro—Bell County. The Department of Commerce seeks to Consideration of designating Country * * * * * address the threat to national security Group C to identify ‘‘Destinations of Issued in College Park, Georgia on caused by the illicit transshipment, Diversion Concern’’ is part of the February 13, 2007. reexport, and diversion in international Department of Commerce’s effort to Mark D. Ward, trade of items subject to the EAR. strengthen the trade compliance and Through government-to-government and Group Manager, System Support Group, export control systems of countries that Eastern Service Center. government-to-industry outreach, the are transshipment hubs. By working to [FR Doc. 07–857 Filed 2–23–07; 8:45 am] Department of Commerce encourages strengthen those systems, the transshipment countries to strengthen BILLING CODE 4910–13–M Department of Commerce seeks to their international export control enhance international security and practices. confidence in international trade flows. Country Group C would identify those DEPARTMENT OF COMMERCE This effort includes both government- to-government cooperation and U.S. countries of diversion concern, based on Bureau of Industry and Security Government cooperation and certain criteria including, but not information-sharing with the private limited to: 15 CFR Part 740 sector. To strengthen government-to- • Transit and transshipment volume; government cooperation, the • [Docket No. 0612242560–7024–01] Inadequate export/reexport Department of Commerce has worked controls; with its counterpart agencies to: (1) RIN 0694–AD93 • Develop or strengthen export control Demonstrated inability to control diversion activities in this destination; Country Group C: Destinations of regimes, (2) promote information and Diversion Concern data exchanges, and (3) strengthen • Government not directly involved cooperation and facilitate enforcement. in diversion activities; and AGENCY: Bureau of Industry and Specific initiatives to develop export • Government unwilling or unable to Security, Commerce. control capabilities have included cooperate with the U.S. in interdiction ACTION: Advance notice of proposed technical assistance in the areas of legal efforts. rulemaking. framework and licensing procedures and practices, enforcement training, and As a result of being placed into SUMMARY: The Department of industry outreach. To strengthen Country Group C, the licensing policy Commerce’s Bureau of Industry and cooperation and facilitate enforcement, would likely change for items going to Security (BIS) is considering the Department of Commerce has posted any country designated as a amendments to the Export export control attache´s to serve as ‘‘Destination of Diversion Concern.’’ Administration Regulations (EAR) to Such changes could include changes in further the national security interests of liaisons in many of these areas, and has sought agreements and other License Exception eligibility (Part 740 of the United States by designating the EAR), License Requirements and Country Group C for countries that are government-to-government cooperation in certain destinations. Licensing Policy (Part 742 of the EAR), ‘‘Destinations of Diversion Concern.’’ and End-User and End-Use Based This amendment would establish The Department of Commerce has Controls (Part 744 of the EAR). The also concentrated on outreach to key license requirements for exports and result of these changes could mean that reexports to countries that represent a companies involved in forwarding, more license applications might be concern for the diversion of items processing, and transporting goods required; more stringent license review subject to the EAR. BIS by this notice through transshipment points, i.e., policies might be implemented, which requests comments on Country Group C. freight forwarders, integrators, air cargo could result in less approvals or more DATES: carriers, and shipping lines. The Comments are due no later than conditions on licenses; authorizations close of business March 12, 2007. Department of Commerce has sought to enhance cooperation with these private may be delayed because of increased ADDRESSES: Comments should be sent to end-user checks; or authorizations may [email protected], fax (202) sector entities via informal meetings, the establishment of communication decrease because of diversion risks for 482–3355, or to Regulatory Policy such countries. Division, Bureau of Industry and channels to facilitate information Security, Room H2705, U.S. Department sharing, the establishment and sharing Rulemaking Requirements of Commerce, Washington, DC 20230. of ‘‘best practices,’’ and by working with Please refer to regulatory identification the foreign trade zone board to address This advance notice of proposed number (RIN) 0694–AD93 in all transshipment issues. rulemaking rule has been determined to comments, and in the subject line of e- The diversion of items subject to the be significant for purposes of E.O. mail comments. Comments on the EAR could augment the capabilities of 12866. collection of information should be sent terrorists and state sponsors of Christopher A. Padilla, to David Rostker, Office of Management terrorism, and significantly undermine and Budget (OMB), by e-mail to Assistant Secretary for Export international counterproliferation Administration. [email protected], or by fax efforts. The illegal diversion of such [FR Doc. E7–3252 Filed 2–23–07; 8:45 am] to (202) 395–7285. items could also compromise the BILLING CODE 3510–33–P FOR FURTHER INFORMATION CONTACT: effectiveness of U.S. export control Sharron Cook, Office of Exporter laws. In recent years, diversions have Services, Bureau of Industry and contributed to a number of major cases Security, Telephone (202) 482–2440. involving the violation of U.S. export SUPPLEMENTARY INFORMATION: control laws for dual-use goods. VerDate Aug<31>2005 16:00 Feb 23, 2007 Jkt 211001 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 E:\FR\FM\26FEP1.SGM 26FEP1 hsrobinson on PROD1PC76 with PROPOSALS From: "Scott Barney" <[email protected]> To: <[email protected]> Date: Wed, Feb 28, 2007 12:58 PM Subject: (RIN) 0694-AD93 County Group C: Destination of Diversion Concern With regards to this proposed rule. Why would BIS/Commerce submit this proposed rule without providing a preliminary list of countries that might be listed under Country Group C? We would like to comment, but we have no clue if any countries that will be listed are current countries that we export to. Regards, Scott E. Barney Import/Export Compliance Manager Hittite Microwave Corporation 20 Alpha Road Chelmsford, MA 01824 U.S.A. Phone: 978.250.3343 Ext. 1155 Fax: 978.250.3373 www.hittite.com From: Julie Holland <[email protected]> To: "'[email protected]'" <[email protected]> Date: Thu, Mar 1, 2007 2:36 PM Subject: Country Group C Proposal In regard to the Country Group C Proposal; The concept is clear - however it would be difficult to discern the impact this proposal would have on companies without a tentative list of coutnries that you are considering to be placed in this category. Can you please advise us all of the tentative countries that would be placed under Country Group C - only then can we provide pertinent feedback. thanks, Julie Holland Julie Holland, Compliance Manager Extreme Networks, 3585 Monroe St, Santa Clara, CA 95051 Ph# 408-579-3312 Cell# 408-230-7587 Fax# 408-579-2910 email: [email protected] ...................... __x . .-.---........................................................ ....... .................................................... .. i.-..,. .I...... ... e..-..$ ....... ......................................-. C' ; .. , i .... <<fi:s>>>.... ..%,. x.. L:x<.wcr"\' .....-I: Q IrrCus .... .......... ....... ... .- .- March 12, 2007 U.S. Department of Commerce Bureau of Industry and Security Regulatory Policy Division Room H2705 14th Street and Pennsylvania Avenue, NW Washington, DC 20230 Attention: RIN 0694-AD93 RE: Comments on Advance Notice of Proposed Rulemaking – Country Group C: Destinations of Diversion Concern Dear Sir or Madam, The Wisconsin Project on Nuclear Arms Control submits the following comments in response to the Bureau of Industry and Security’s February 26, 2007, Advance Notice of Proposed Rulemaking (72 Fed. Reg. 8315), which proposes to designate Country Group C in the U.S. Export Administration Regulations for countries that are "Destinations of Diversion Concern." The Project is a non-profit organization that conducts outreach and public education