[Federal Register: April 4, 1994]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 771 and 774

[Docket No. 940392-4092]
RIN 0694-AA97

 
Establishment of New General License for Shipments to Country 
Groups QWY and the People's Republic of China

AGENCY: Bureau of Export Administration, Commerce.

ACTION: Final rule.

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SUMMARY: The Coordinating Committee for Multilateral Export Controls 
(COCOM) has agreed to cease functioning on March 31, 1994. The current 
control lists will be retained by the member nations until a successor 
regime is established. To help make the transition, the United States 
is establishing a new General License GLX, which will allow certain 
shipments to civil end-users and end-uses in formerly proscribed 
destinations. This new general license will reduce paperwork and 
licensing delays for exporters, and will focus controls on exports that 
are of direct strategic concern.

EFFECTIVE DATE: This rule is effective April 4, 1994.

FOR FURTHER INFORMATION CONTACT: Patricia Muldonian, Office of 
Technology and Policy Analysis, Bureau of Export Administration, U.S. 
Department of Commerce, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    The international security environment has changed in the past few 
years. As a result, the United States and our COCOM partners are 
revamping approaches to export controls to deal with the new challenges 
of the Post-Cold War era. In this regard, the members of COCOM agreed 
to end the Cold War regime on March 31, 1994, and to work together to 
establish a new arrangement aimed at enhancing transparency and 
restraint in arms sales and transfer of sensitive technology to 
countries and regions of concern.
    As these discussions progress, the members of COCOM have agreed to 
retain the current COCOM Lists and the COCOM secretariat until a new 
successor regime with its own control list and institutional support is 
established. However, the members have also agreed to modify former 
COCOM export licensing procedures by making all licensing decisions 
subject to national discretion.
    Accordingly, the United States is establishing a new General 
License GLX for shipments to formerly COCOM proscribed destinations of 
many items that previously required an Individual Validated License. 
With certain important exceptions and additions noted in this 
regulation, the new GLX general license will be available for the items 
previously covered by Administrative Exception Notes in the Commerce 
Control List.
    Finally, General License GFW is revised to permit export to 
eligible countries of those commodities that can be shipped to QWY and 
the PRC under GLX but have not been eligible for GFW.
    The United States will continue to work with the other former COCOM 
member countries to coordinate transitional licensing policies and 
procedures and to establish the new arrangement. As these efforts 
progress, there will be additional modifications to U.S. export 
licensing requirements.

Rulemaking Requirements

    1. This final rule has been determined to be significant for 
purposes of Executive Order 12866.
    2. This rule involves a collection of information subject to the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). This 
collection has been approved by the Office of Management and Budget 
under control numbers 0694-0005, 0694-0007, and 0694-0010. Licensing 
requirements will be reduced as a result of this rule, thereby reducing 
the paperwork burden on the public.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by section 
553 of the Administrative Procedure Act (5 U.S.C. 553) or by any other 
law, under section 3(a) of the Regulatory Flexibility Act (5 U.S.C. 
603(a) and 604(a)) no initial or final Regulatory Flexibility Analysis 
has to be or will be prepared.
    5. 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 foreign and military affairs 
function of the United States. This rule does not impose a new control. 
No other law requires that a notice of proposed rulemaking and an 
opportunity for public comment be given for this rule.
    Accordingly, it is issued in final form. However, comments from the 
public are always welcome. Comments should be submitted to Patricia 
Muldonian, Office of Technology and Policy Analysis, Bureau of Export 
Administration, Department of Commerce, P.O. Box 273, Washington, DC 
20044.

List of Subjects in 15 CFR Parts 771 and 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, parts 771 and 774 of the Export Administration 
Regulations (15 CFR parts 730-799) are amended as follows:
    1. The authority citations for 15 CFR parts 771 and 774 continue to 
read as follows:

    Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et 
seq.), as amended; sec. 101, Pub. L. 93-153, 87 Stat. 576 (30 U.S.C. 
185), as amended; sec. 103, Pub. L. 94-163, 89 Stat. 877 (42 U.S.C. 
6212, as amended; secs. 210 and 201(11)(e), Pub. L. 94-258, 90 Stat. 
309 (10 U.S.C. 7420 and 7430(e)), as amended; Pub. L. 95-223, 91 
Stat. 1626 (50 U.S.C. 1701 et seq.); Pub. L. 95-242, 92 Stat. 120 
(22 U.S.C. 3201 et seq. and 42 U.S.C. 2139a); sec. 208, Pub. L. 95-
372, 92 Stat. 668 (43 U.S.C. 1354); Pub. L. 96-72, 93 Stat. 503 (50 
U.S.C. app. 2401 et seq.), as amended (extended by Pub. L. 103-10, 
107 Stat. 40); sec. 125, Pub. L. 99-64, 99 Stat. 156 (46 U.S.C. 
466c); E.O. 11912 of April 13, 1976 (41 FR 15825, April 15, 1976); 
E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended; 
E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978); E.O. 12214 
of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12735 of November 
16, 1990 (55 FR 48587, November 20, 1990) as continued by Notice of 
November 12, 1993 (58 FR 60361, November 15, 1993); E.O. 12867 of 
September 30, 1993 (58 FR 51749, October 4, 1993); and E.O. 12868 of 
September 30, 1993 (58 FR 51749, October 4, 1993).

PART 771--[AMENDED]

    2. Section 771.20, formerly reserved, is revised to read as 
follows:


Sec. 771.20  General License GLX; exports to Country Groups QWY and the 
People's Republic of China.

    (a) Scope. A general license designated GLX is established, 
authorizing exports to civil end-users in Country Group QWY and the 
People's Republic of China (PRC) of certain specified items.
    (b) Eligible exports. The items eligible for this general license 
are those described in the Advisory Notes in the CCL that indicate 
likelihood of approval for ``Country Groups QWY and the PRC,'' except 
items described in the notes to ECCNs 1C18A and 2B18A. Likelihood of 
approval notes that apply only to the PRC, or to specified destinations 
in Country Group Y, also qualify for this general license to all 
eligible destinations (however, those notes indicating Country Group Q 
or W, but not Y, or individual countries in Q or W, are specifically 
not eligible). In addition, those entries and sub-entries listed in 
Supplement No. 1 to this Part 771 are eligible for export under this 
general license. However, this general license is not available for 
items that are also subject to missile technology (MT), nuclear 
nonproliferation (NP), or foreign policy (FP) controls to the recipient 
country.
    (c) Eligible consignees. This general license is available only for 
exports to civil end-users for civil end-uses. Exports under this 
general license may not be made to military end-users or to known 
military uses. Such exports will continue to require an individual 
validated license and be considered on a case-by-case basis. In 
addition to conventional military activities, military uses include any 
proliferation activities described in Part 778 of this subchapter. 
Retransfers to military end-users or end-uses in eligible countries are 
strictly prohibited without prior authorization.
    3. Sec. 771.23 is amended by adding a new sentence after the fifth 
sentence to paragraph (c) to read as follows:


Sec. 771.23  General License GFW.

* * * * *
    (c) * * * In addition, GFW may be used to export to eligible 
countries any commodities (but not software or technology) listed in 
Supplement No. 1 to this part 771 as eligible for General License GLX. 
* * *
* * * * *

Supplement No. 1 to Part 771 [Amended]

    4. Supplement No. 1 to part 771, formerly reserved, is revised to 
read as follows:

Supplement No. 1--Additional Items Eligible for General License GLX

    Note: Portions of some items listed in this Supplement are 
controlled for missile technology (MT), nuclear proliferation (NP), 
or foreign policy (FP) reasons. Exporters are reminded that such 
portions are not eligible for General License GLX. Refer to the 
specific ECCNs to identify those portions of entries subject to MT, 
NP, or FP controls.

CATEGORY 1
    1D01A
    1D02A
CATEGORY 2
    2A01A
    2A02A
    2A03A
    2A04A
    2A06A
    2B03A.a
CATEGORY 3
    3A02A.h
CATEGORY 4
    4A03A.c (having a CTP of 1,000 MTOPS or less)
    4A03A.h (having a 3-D vector rate less than 3M vectors/sec.)
    4A03A.k
    4B01A
    4B02A
    4B03A
    4C01A
CATEGORY 5
    5A02A (except .h and .i)
    5A03A
    5A04A
    5A05A
    5A06A
    5B01A
    5B02A
    5C01A
    5D01A
    5D02A
    5D03A
CATEGORY 6
    6A01A.b
    6A02A.a.4
    6A03A.a.1
    6A04A.f
    6A05A.c.2.a
    6A05A.d
    6A05A.e
    6B05A
    6A08A.b
    6A08A.c
    6A08A.l.1
    6C02A.c
    6C04A.h
    6D03A.d
CATEGORY 8
    8A02A.e.2
CATEGORY 9
    9B01A.a
    9B01A.b
    9B01A.f
    9B01A.h
    9B05A
    9B06A

PART 774--[AMENDED]

    5. Section 774.2 is amended by adding a new paragraph (o) to read 
as follows:


Sec. 774.2  Permissive reexports.\2\
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    \2\See Sec. 774.9 for effect on foreign laws.
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* * * * *
    (o) Reexports to or among destinations in Country Groups QWY and 
the People's Republic of China of items that may be exported directly 
from the United States to those destinations under General License GLX. 
Reexporters are specifically cautioned that GLX does not permit export 
or retransfer to military end-users or military end-uses.

    Dated: March 30, 1994.
Iain S. Baird,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 94-7936 Filed 3-30-94; 1:02 pm]
BILLING CODE 3510-DT-P