2 September 1999
Source: http://www.access.gpo.gov/su_docs/aces/fr-cont.html

-------------------------------------------------------------------------

[Federal Register: September 1, 1999 (Volume 64, Number 169)]
[Rules and Regulations]
[Page 47666-47669]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01se99-14]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 742 and 774

[Docket No. 990811214-9214-01]
RIN 0694-AB79


Exports and Reexports of Commercial Charges and Devices
Containing Energetic Materials

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Interim rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Export Administration (BXA) maintains the
Commerce Control List (CCL), which identifies those items subject to
the Department of Commerce export controls. This interim rule amends
the CCL by revising and clarifying controls on certain commercial
charges and devices containing energetic materials commonly used in
mining and oil well development as well as in air bags and fire
extinguishers and also certain pyrotechnic/explosive devices, of the
type commonly used by the U.S. motion picture and television industry.
Specifically, this rule revises Export Control Classification Numbers
(ECCNs) 1C018 and 1C992 to better distinguish the types of charges and
explosive devices controlled by these entries and to provide clear
thresholds of control. Military explosive devices or charges that
utilize United States Munitions List (USML) controlled energetic
materials are subject to the export licensing authority of the
Department of State. In addition, individual USML controlled energetic
materials, even when compounded with other materials, are subject to
the export licensing authority of the Department of State, when not
incorporated into explosive devices or charges controlled by ECCNs
1C018 or 1C992. Commercial charges and devices containing energetic
materials that are not subject to the export licensing authority of the
Department of State or are not controlled by ECCN 1C018 are controlled
by ECCN 1C992 for anti-terrorism reasons.
    This rule removes ECCN 1C998. Items previously controlled by ECCN
1C998 have been moved to ECCN 1C992.
    In addition, this rule corrects an inadvertent error to License
Exception LVS for ECCN 0A018 that was published on July 14, 1998 (63 FR
37767).

DATES: Effective Date: This rule is effective September 1, 1999.

COMMENT DATES: Comments on this rule must be received on or before
October 18, 1999.

ADDRESSES: Written comments on this rule should be sent to Hillary
Hess, Regulatory Policy Division, Bureau of Export Administration,
Department of Commerce, P.O. Box 273, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Tanya Mottley, Director, Strategic
Trade Division, Bureau of Export Administration, Telephone: (202) 482-
1837.

SUPPLEMENTARY INFORMATION:

Background

    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 Export Administration Regulations and,
to the extent permitted by law, the provisions of the EAA 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
13, 1997 (62 FR 43629), August 13, 1998 (63 FR 44121), and August 10,
1999 (64 FR 44101, August 13, 1999.

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 approved by the Office of Management and Budget under
control number 0694-0088, ``Multi-Purpose Application,'' which carries
a burden hour estimate of 45 minutes manually per submission and 40
minutes electronically, per submission. These estimates include the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collections of information. Send comments regarding these burden
estimates or any other aspect of these collections of information,
including suggestions for reducing the burden, to OMB Desk Officer, New
Executive Office Building, Washington, DC 20503; and to the Regulatory
Policy Division, Bureau of Export Administration, Department of

[[Page 47667]]

Commerce, P.O. Box 273, Washington, DC 20044 .
    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 interim 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.
    However, because of the importance of the issues raised by these
regulations, this rule is being issued in interim form and BXA will
consider comments in the development of the final regulations.
    Accordingly, the Department encourages interested persons who wish
to comment to do it at the earliest possible time to permit the fullest
consideration of their views.
    The period for submission of comments will close October 18, 1999.
The Department will consider all comments received before the close of
the comment period in developing final regulations. Comments received
after the end of the comment period will be considered if possible, but
their consideration cannot be assured. The Department will not accept
public comments accompanied by a request that a part or all of the
material be treated confidentially because of its business proprietary
nature or for any other reason. The Department will return such
comments and materials to the persons submitting the comments and will
not consider them in the development of final regulations. All public
comments on these regulations will be a matter of public record and
will be available for public inspection and copying. In the interest of
accuracy and completeness, the Department requires comments in written
form.
    Oral comments must be followed by written memoranda, which will
also be a matter of public record and will be available for public
review and copying. Communications from agencies of the United States
Government or foreign governments will not be available for public
inspection.
    The public record concerning these regulations will be maintained
in the Bureau of Export Administration Freedom of Information Records
Inspection Facility, Room 6883, Department of Commerce, 14th Street and
Pennsylvania Avenue, NW, Washington, DC 20230. Records in this
facility, including written public comments and memoranda summarizing
the substance of oral communications, may be inspected and copied in
accordance with regulations published in part 4 of Title 15 of the Code
of Federal Regulations. Information about the inspection and copying of
records at the facility may be obtained from Henry Gaston, Bureau of
Export Administration Freedom of Information Officer, at the above
address or by calling (202) 482-0500.

List of Subjects

15 CFR Part 742

    Exports, Foreign trade.

15 CFR Part 774

    Exports, Foreign trade, Reporting and recordkeeping requirements.

    Accordingly, parts 742 and 774 of the Export Administration
Regulations (15 CFR parts 730-799) are amended as follows:
    1. 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; E.O. 12851, 3
CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp.,
p. 917; E.O. 12938, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 3 CFR,
1996 Comp. p. 219; E.O. 13026, 3 CFR, 1996 Comp., p. 228; Notice of
August 13, 1997 (62 FR 43629, August 15, 1997); Notice of August 13,
1998 (63 FR 44121, August 13, 1998); and Notice of August 10, 1999
(64 FR 44101, August 13, 1999).

    2. The authority citation for part 774 continues to read as
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
10 U.S.C. 720; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C.
287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s),
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C.
app. 466c; 50 U.S.C. app. 5; E.O. 12924, 59 FR 43437, 3 CFR, 1994
Comp., p. 917; Notice of August 15, 1995, 60 FR 42767, 3 CFR, 1995
Comp., p. 501; Notice of August 14, 1996, 61 FR 42527, 3 CFR, 1996
Comp., p. 298; Notice of August 13, 1997, 62 FR 43629, 3 CFR, 1997
Comp. p. 306; Notice of August 13, 1998, 63 FR 44121, 3 CFR, 1998
Comp. p. 294; and Notice of August 10, 1999 (64 FR 44101, August 13,
1999).

PART 742--[AMENDED]

    3. Section 742.9 is amended by adding a new paragraph (b)(1)(vii),
to read as follows:

Sec. 742.9  Anti-terrorism: Syria

* * * * *
    (b) * * *
    (1) * * *
    (vii) Commercial charges and devices controlled under ECCN 1C992.
* * * * *
    4. Section 742.10 is amended by adding a new paragraph (b)(1)(vii),
to read as follows:

Sec. 742.10  Anti-terrorism: Sudan

* * * * *
    (b) * * *
    (1) * * *
    (vii) Commercial charges and devices controlled under ECCN 1C992.
* * * * *

PART 774--[AMENDED]

    5. In Supplement No. 1 to part 774, the Commerce Control List,
Category 0 (Nuclear Materials, Facilities, and Equipment [and
Miscellaneous Items]), Export Control Classification Number (ECCN)
0A018 is amended by revising the License Exceptions section to read as
follows:

0A018  Items on the International Munitions List.

* * * * *

LICENSE EXCEPTIONS

LVS:
    $5000 for 0A018.a and .b
    $3000 for 0A018.c
    $1500 for 0A018.d through .f
    $0 for Rwanda and the Federal Republic of Yugoslavia (Serbia and
Montenegro)
GBS: N/A
CIV: N/A
* * * * *
    6. In Supplement No. 1 to part 774, the Commerce Control List,
Category 1 (Materials, Chemicals, Microorganisms, and Toxins), the
following Export Control Classification Numbers (ECCNs) are amended:
    a. By revising the entry heading and the List of Items Controlled
section ECCN 1C018;
    b. By revising ECCN 1C992; and
    c. By removing ECCN 1C998, to read as follows:

1C018  Commercial charges and devices containing energetic materials on
the International Munitions List.

* * * * *

List of Items Controlled

    Unit: Number.

[[Page 47668]]

    Related Controls: (1) Explosive devices or charges that utilize
USML controlled energetic materials (See 22 CFR 121.1, Category V) are
subject to the licensing authority of the U.S. Department of State,
Office of Defense Trade Controls if they have been specifically
designed, developed, configured, adapted, or modified for a military
application. (2) With the exception of slurries, cutters and severing
tools, if the USML controlled materials utilized in devices and charges
controlled by this entry can be easily extracted without destroying the
device or charge, then they are subject to the export licensing
authority of the U.S. Department of State, Office of Defense Trade
Controls. (3) Commercial prefabricated slurries and emulsions
containing greater than 35% of USML controlled energetic materials are
subject to the export licensing authority of the U.S. Department of
State, Office of Defense Trade Control. (4) The individual USML
controlled energetic materials, even when compounded with other
materials, remain subject to the export licensing authority of the
Department of State when not incorporated into explosive devices or
charges controlled by this entry or 1C992. (5) See also ECCNs 1C011,
1C111, and 1C239 for additional controlled energetic materials.
    Related Definitions: (1) For purposes of this entry, the term
``controlled materials'' means controlled energetic materials (see
ECCNs 1C011, 1C111, 1C239 and 22 CFR 121.1, Category V). (2) For
purposes of this entry, the mass of aluminum powder, potassium
perchlorate, and any of the substances listed in the note to the USML
(see 22 CFR Part 121.12) (such as ammonium pictrate, black powder,
etc.) contained in commercial explosive devices and in the charges are
omitted when determining the total mass of controlled material.
    Items:
    a. Shaped charges specially designed for oil well operations,
utilizing one charge functioning along a single axis, that upon
detonation produce a hole; and

a.1. Contain any controlled materials;
a.2. Have a uniform shaped conical liner with an included angle of 90
degrees or less;
a.3. Have more than 0.090 kg but not more that 2.0 kg of controlled
materials; and
a.4. Have a diameter not exceeding 4.5 inches.

    b. Detonating cord or shock tubes containing greater than 0.064 kg
per meter (300 grains per foot), but not more than 0.1 kg per meter
(470 grains per foot) of controlled materials;
    c. Cartridge power devices containing greater than 0.70 kg, but not
more than 1.0 kg of controlled materials;
    d. Detonators (electric or nonelectric) and assemblies thereof
containing greater than 0.01 kg, but not more than 0.1 kg of controlled
materials;
    e. Igniters containing greater than 0.01 kg, but not more than 0.1
kg of controlled materials;
    f. Oil well cartridges containing greater than 0.015 kg, but not
more than 0.1 kg of controlled materials;
    g. Commercial cast or pressed boosters containing greater than 1.0
kg, but not more than 5.0 kg of controlled materials;
    h. Commercial prefabricated slurries and emulsions containing
greater than 10 kg and less than or equal to thirty-five percent by
weight of USML controlled materials;
    i. Cutters and severing tools containing greater than 3.5 kg, but
not more than 10 kg of controlled materials;
    j. Pyrotechnic devices when designed exclusively for commercial
purposes (e.g., theatrical stages, motion picture special effects, and
fireworks displays), and containing greater than 3.0 kg, but not more
than 5.0 kg of controlled materials; or
    k. Other commercial explosive devices and charges, not controlled
by 1C018.a through g above, when used for commercial applications and
containing greater than 1.0 kg but not more than 5.0 kg of controlled
materials.

1C992  Commercial charges and devices containing energetic materials,
n.e.s.

License Requirements

    Reason for Control: AT, UN.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
AT applies to entire entry.............  AT Column 1
UN applies to 1C992. b through k.......  Federal Republic of Yugoslavia
                                          (Serbia and Montenegro)
------------------------------------------------------------------------

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

    Unit: $ value.
    Related Controls: Commercial charges and devices containing USML
controlled energetic materials that exceed the quantities noted or that
are not covered by this entry are controlled under 1C018.
    Related Definitions: (1) Items controlled by this entry 1C992 are
those materials not subject to the licensing authority of the U.S.
Department of State, Office of Defense Trade Controls (see 22 CFR part
121) or controlled by ECCN 1C018. (2) For purposes of this entry, the
term ``controlled materials'' means controlled energetic materials (see
ECCNs 1C011, 1C111, 1C239 and 22 CFR 121.1, Category V). (3) The
individual USML controlled energetic materials, even when compounded
with other materials, remain subject to the export licensing authority
of the Department of State when not incorporated into explosive devices
or charges controlled by this entry. (4) Commercial prefabricated
slurries and emulsions containing greater than 35% of USML controlled
energetic materials are subject to the export licensing authority of
the U.S. Department of State, Office of Defense Trade Control. (5) For
purposes of this entry, the mass of aluminum powder, potassium
perchlorate, and any of the substances listed in the note to the USML
(see 22 CFR 121.12) (such as ammonium pictrate, black powder, etc.)
contained in commercial explosive devices and in the charges are
omitted when determining the total mass of controlled material.
    Items:
    a. Shaped charges specially designed for oil well operations,
utilizing one charge functioning along a single axis, that upon
detonation produce a hole, and

 a.1. Contain any formulation of controlled materials;
a.2. Have only a uniform shaped conical liner with an included angle of
90 degrees or less;
a.3. Contain more than 0.010 kg but less than or equal to 0.090 kg of
controlled materials; and
a.4. Have a diameter not exceeding 4.5 inches;

    b. Shaped charges specially designed for oil well operations
containing less than or equal to 0.010 kg of controlled materials;
    c. Detonation cord or shock tubes containing less than or equal to
0.064 kg per meter (300 grains per foot) of controlled materials;
    d. Cartridge power devices, that contain less than or equal to 0.70
kg of controlled materials in the deflagration material;
    e. Detonators (electric or nonelectric) and assemblies thereof,
that contain less than or equal to 0.01 kg of controlled materials;
    f. Igniters, that contain less than or equal to 0.01 kg of
controlled materials;
    g. Oil well cartridges, that contain less than or equal to 0.015 kg
of controlled energetic materials;

[[Page 47669]]

    h. Commercial cast or pressed boosters containing less than or
equal to 1.0 kg of controlled materials;
    i. Commercial prefabricated slurries and emulsions containing less
than or equal to 10.0 kg and less than or equal to thirty-five percent
by weight of USML controlled materials;
    j. Cutters and severing tools containing less than or equal to 3.5
kg of controlled materials;
    k. Pyrotechnic devices when designed exclusively for commercial
purposes (e.g., theatrical stages, motion picture special effects, and
fireworks displays) and containing less than or equal to 3.0 kg of
controlled materials; or
    l. Other commercial explosive devices and charges not controlled by
1C992.a through .k containing less than or equal to 1.0 kg of
controlled materials.

    Note: 1C992.l includes automotive safety devices; extinguishing
systems; cartridges for riveting guns; explosive charges for
agricultural, oil and gas operations, sporting goods, commercial
mining, or public works purposes; and delay tubes used in the
assembly of commercial explosive devices.

    Dated: August 27, 1999.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 99-22768 Filed 8-31-99; 8:45 am]
BILLING CODE 3510-33-P
