12 November 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[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]

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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.

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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

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[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]

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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.

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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
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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



