[Federal Register: March 25, 1996 (Rules and Regulations)]
[Page 12814-12864]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
 
[[pp. 12814-12864]] Export Administration Regulation; Simplification of Export 
Administration Regulations

[[Continued from page 12813]]

[[Page 12814]]

    (ii) An acknowledgement by you that any license issued under these 
emergency procedures will have a limited validity period as described 
in Sec. 750.7(g) of the EAR, and that it generally will not be 
extended.
    (2) Prompt delivery of emergency handling requests. You are 
responsible for prompt delivery of your request and license application 
to BXA. You may hand-carry your request and license application or use 
the services of an overnight courier to ensure prompt delivery. If you 
desire to hand-carry your request and license application, you may hand 
deliver it to the Exporter Counseling Division at the address stated in 
Sec. 748.2(a) of this part. If you decide to use an overnight courier, 
use the address listed in Sec. 748.2(c) of this part. The envelope 
containing your license application should be labeled ``Attn: Exporter 
Counseling Division, Emergency Handling Request Enclosed''.
    (3) Review of emergency handling requests. BXA views an emergency 
as an unforeseeable situation over which you have no control. On the 
day of receipt, BXA will evaluate your license application and decide 
whether emergency handling is warranted. Frequent emergency request 
will be given particularly close scrutiny. This procedure is not 
designed to become a substitute for timely filing of license 
applications.
    (4) Action on license applications processed under emergency 
procedures. If you have submitted an emergency request, you will be 
contacted by the Exporter Counseling Division informing you of whether 
or not your request for emergency processing has been granted. If your 
license is approved under emergency handling procedures, you will be 
notified by BXA of the approval by telephone or in person. You will be 
given the license number and verbal authorization to effect shipment 
immediately, without waiting for the actual license. Any license 
approved under these emergency handling procedures will have a limited 
validity period as described in Sec. 750.7(g) of the EAR.


Sec. 748.5  Parties to the transaction on a license application.

    (a) Applicant. (1) The ``applicant'' is defined as the person who, 
as the principal party in interest in the transaction, has the power 
and responsibility for determining and controlling the exporting or 
reexporting of the items. BXA is primarily concerned with the identity 
of the applicant and the applicant's role in the transaction, and not 
the terms of sale.
    (2) Ordinarily, a seller who delivers items in the United States to 
a foreign buyer, or to the latter's forwarder or other agent, would not 
be in a position to assume responsibility for the export and would not 
be a proper applicant. This would normally be the situation where sale 
is made f.o.b. factory, although such terms of sale may relate only to 
price and are not necessarily inconsistent with the assumption by the 
seller of full responsibility for effecting the export or reexport. The 
seller can still be liable if the seller knows that the importer or its 
agent will not obtain the required license.
    (3) If the seller intends to leave the responsibility for effecting 
an export or reexport in the hands of the foreign importer or the 
latter's forwarding or purchasing agent in the United States, the 
foreign importer should apply for the license in the foreign importer's 
own name if the foreign importer is subject to the jurisdiction of the 
United States at the time of export. Otherwise, the importer's 
forwarding or purchasing agent or other person subject to the 
jurisdiction of the U.S. must appear as applicant and exporter. In this 
situation you, as the applicant, must disclose your role as agent and 
the name of your principal.
    (b) Order party. The order party is that person in the United 
States who conducted the direct negotiations or correspondence with the 
foreign purchaser or ultimate consignee and who, as a result of these 
negotiations, received the order from the foreign purchaser or ultimate 
consignee.
    (c) Purchaser. The purchaser is that person abroad who has entered 
into the transaction with the applicant to purchase an item for 
delivery to the ultimate consignee. A bank, freight forwarder, 
forwarding agent, or other intermediary is not the purchaser. The 
purchaser and ultimate consignee may be the same entity.
    (d) Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter or reexporter, the purchaser, or 
the ultimate consignee, for the purpose of effecting delivery of the 
export or reexport to the ultimate consignee.
    (e) Ultimate consignee. The ultimate consignee is the person 
located abroad who is the true party in interest in actually receiving 
the export for the designated end-use. A bank, freight forwarder, 
forwarding agent, or other party, when acting as an intermediary, is 
not acceptable as the ultimate consignee.


Sec. 748.6  General instructions for license applications.

    (a) Form and instructions. An application for license, whether to 
export or reexport, must be submitted on Form BXA-748P, Multipurpose 
Application (revised June 15, 1996 or later), and Form BXA-748P-A, Item 
Appendix, and Form BXA-748P-B, End-User Appendix. Facsimiles or copies 
of these forms are not acceptable. Instructions for preparing Form BXA-
748P are contained in Supplement No. 1 to this part 748. See 
Sec. 748.7(a) of this part for instructions on submitting license 
applications electronically.
    (b) Application Control Number. Each application form includes a 
preprinted Application Control Number. The Application Control Number, 
consisting of a letter followed by six digits, is for use by BXA when 
processing applications, and by applicants when communicating with BXA 
concerning pending applications. This number is used for tracking 
purposes within the U.S. Government. The Application Control Number is 
not a license number.
    (c) Approval or denial in entirety. License applications may be 
approved in whole or in part, denied in whole or in part, or returned 
without action. However, you may specifically request that your license 
application be considered as a whole and either approved or denied in 
its entirety.
    (d) Combining items on license applications. Any items may be 
combined on a single application, however, if the items differ 
dramatically (e.g., computers and shotguns) the number of BXA offices 
to which a license application may be referred for review may increase 
significantly. Accordingly, it is recommended that you limit items on 
each license application to those that are similar and/or related.
    (e) Assembly and additional information. All documents or 
correspondence accompanying your license application should bear the 
Application Control Number, and be stapled together. Where necessary, 
BXA may require you to submit additional information beyond that stated 
in the EAR confirming or amplifying information contained in your 
license application.
    (f) Changes in facts. Answers to all items on the license 
application will be deemed to be continuing representations of the 
existing facts or circumstances. Any material or substantive change in 
the terms of the order, or in the facts relating to the transaction, 
must be promptly reported to BXA, whether a license has been granted or 
the license application is still

[[Page 12815]]
under consideration. If a license has been granted and such changes are 
not excepted in Sec. 750.7(c) of the EAR, they must be reported 
immediately to BXA, even though shipments against the license may be 
partially or wholly completed, during the validity period of the 
license.
    (g) Request for extended license validity period. An extended 
validity period will generally be granted if your transaction is 
related to a multi-year project, when production lead time will not 
permit export or reexport during the normal validity period or for 
other similar circumstances. A continuing requirement to supply spare 
or replacement parts will not normally justify an extended validity 
period. To request an extended validity period, include justification 
for your request in Block 24 on the application.


Sec. 748.7  Applying electronically for a license or Classification 
request.

    (a) Authorization. You may apply electronically once you have been 
authorized to do so by BXA. An authorization to submit applications 
electronically may be limited or withdrawn by BXA at any time. There 
are no prerequisites for obtaining permission to submit electronically 
or limitations in terms of country eligibility. However, BXA may direct 
for any reason that any electronic application be resubmitted in 
writing, in whole or in part
    (1) Requesting approval to submit applications electronically. To 
submit applications electronically, your company must submit a written 
request to BXA at one of the addresses identified in Sec. 748.2(c) of 
this part. Both the envelope and letter must be marked ``Attn: 
Electronic Submission Request''. Your letter must contain your 
company's name, and the address, telephone number, and name of the 
principal contact person in your company. Before approving your 
request, BXA will provide you with language for a number of required 
certifications. Once you have completed the necessary certifications, 
you may be approved by BXA to submit applications electronically.
    (2) Assignment and use of company and personal identification 
numbers. (i) Each company granted permission to submit applications 
electronically will be assigned a company identification number. Each 
person approved by BXA to submit applications electronically for the 
company will be assigned a personal identification number (``PIN'') 
telephonically by BXA. A PIN will be assigned to you only if your 
company has certified to BXA that you are authorized to act for it in 
making electronic submissions under the EAR.
    (ii) Your company may reveal the assigned company identification 
number only to the PIN holders, their supervisors, employees, or agents 
of the company with a commercial justification for knowing the company 
identification number.
    (iii) An individual PIN holder may not:
    (A) Disclose the PIN to anyone;
    (B) Record the PIN either in writing or electronically;
    (C) Authorize another person to use the PIN; or
    (D) Use the PIN following termination by BXA or your company of 
your authorization or approval for PIN use.
    (iv) To prevent misuse of the PIN:
    (A) If a PIN is lost, stolen or otherwise compromised, the company 
and the PIN holder must report the loss, theft or compromise of the PIN 
immediately by telephoning BXA at (202) 482-0436. You must confirm this 
notification in writing within two business days to BXA at the address 
provided in Sec. 748.2(c) of this part.
    (B) Your company is responsible for immediately notifying BXA 
whenever a PIN holder leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit applications 
electronically on its behalf.
    (v) No person may use, copy, steal or otherwise compromise a PIN 
assigned to another person; and no person may use, copy, steal or 
otherwise compromise the company identification number where the 
company has not authorized such person to have access to the number.
    (b) Electronic submission of applications. (1) All applications. 
Upon submission of the required certifications and approval of the 
company's request to use electronic submission, BXA will provide 
instructions both on the method to transmit applications electronically 
and the process for submitting required supporting documents and 
technical specifications. These instructions may be modified by BXA 
from time to time.
    (2) License Applications. The electronic submission of an 
application for license will constitute an export control document. 
Such submissions must provide the same information as written 
applications and are subject to the recordkeeping provisions of part 
762 of the EAR. The applicant company and PIN holder submitting the 
application will be deemed to make all representations and 
certifications as if the submission were made in writing by the company 
and signed by the submitting PIN holder. Electronic submission of a 
license application will be considered complete upon the transmittal of 
the application to BXA or to an entity under contract to receive such 
applications for BXA.
    (c) Maintenance of a log. Your company must maintain a log, either 
manually or electronically, specifying the date and time of each 
electronic submission, the ECCNs of items on each electronic 
submission, and the name of the employee or agent submitting the 
license application. This log may not be altered. Written corrections 
must be made in a manner that does not erase or cover original entries. 
If the log is maintained electronically, corrections may only be made 
as notations.
    (d) Updating. An applicant company must promptly notify BXA of any 
change in its name or address. If your company wishes to have an 
individual added as a PIN holder, your company must advise BXA and 
follow the instructions provided by BXA. Your company should conduct 
periodic reviews to ensure that PINs are held only by individuals whose 
current responsibilities make it necessary and appropriate that they 
act for the company in this capacity.


Sec. 748.8  Unique license application requirements.

    In addition to the instructions contained in Supplement No. 1 to 
this part 748, you must also ensure that the additional requirements 
for certain items or types of transactions described in this section 
are addressed in your license application. See Supplement No. 2 to this 
part 748 if your application involves:
    (a) Chemicals, medicinals, and pharmaceuticals.
    (b) Communications intercepting devices.
    (c) Digital computers, telecommunications, and related equipment.
    (d) Gift parcels; consolidated in a single shipment.
    (e) Intransit shipments through the United States.
    (f) Intransit shipments outside of the United States.
    (g) Nuclear Nonproliferation items and end-uses.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products.
    (j) Ship stores, plane stores, supplies, and equipment.
    (k) Regional stability controlled items.
    (l) Reexports.
    
[[Page 12816]]

    (m) Robots.
    (n) Short Supply controlled items.
    (o) Technology.
    (p) Temporary exports or reexports.


Sec. 748.9  Support documents for license applications.

    (a) Exemptions. If you plan to submit a license application 
involving one of the following situations, no support documentation is 
required. Simply submit the license application.
    (1) All exports and reexports involving ultimate consignees located 
in any of the following destinations:

Bahamas
Barbados
Belize
Bermuda
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
French West Indies
French Guiana
Greenland
Guatemala
Guyana
Haiti
Honduras
Jamaica
Leeward and Windward Islands
Mexico
Miquelon and St. Pierre Islands
Netherlands Antilles
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad and Tobago
Uruguay
Venezuela

    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies). To determine whether the parties to 
your transaction meet the definition of ``government agency'' refer to 
the definition contained in part 772 of the EAR. Remember, if either 
the ultimate consignee or purchaser is not a foreign government or 
foreign government agency, a statement is required from the 
nongovernmental party. However, support documents are required from 
governments of the People's Republic of China, India, Bulgaria, Czech 
Republic, Hungary, Poland, Romania, and Slovakia.
    (3) The license application is filed by, or on behalf of, a relief 
agency registered with the Advisory Committee on Voluntary Foreign Aid, 
U.S. Agency for International Development, for export to a member 
agency in the foreign country.
    (4) The license application is submitted to export or reexport 
items for temporary exhibit, demonstration, or testing purposes.
    (5) The license application is submitted for items controlled for 
short supply reasons (see part 754 of the EAR).
    (6) The license application is submitted under the Special 
Comprehensive License procedure described in part 752 of the EAR.
    (b) Support document requirements. License applications not exempt 
under paragraph (a) of this section generally must be supported by 
documents designed to elicit information concerning the disposition of 
the items intended for export or reexport. These support documents must 
be either submitted at the time the license application is filed or 
retained in the applicant's files in accordance with the recordkeeping 
provisions of part 762 of the EAR. The type of support documentation 
required is dependent on the item involved and the country of ultimate 
destination. To determine which type of support documentation is 
required, answer the following questions:
    (1) Does your transaction involve items controlled for national 
security reasons?
    (i) If yes, continue with question number 2 in paragraph (b)(2) of 
this section.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser.
    (2) Does your transaction involve items controlled for national 
security reasons destined for one of the following countries? (This 
applies only to those overseas destinations specifically listed.)

Argentina
Australia
Austria
Belgium
Bulgaria
China (PRC)
Czech Republic
Denmark
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Ireland, Republic of
Italy
Japan
Korea, Republic of
Liechtenstein
Luxembourg
Netherlands
New Zealand
Norway
Pakistan
Poland
Portugal
Romania
Singapore
Slovakia
Spain
Sweden
Switzerland
Taiwan
Turkey
United Kingdom

    (i) If yes, your transaction may require an Import or End-User 
Certificate. Note that if the destination is the People's Republic of 
China, a Statement of Ultimate Consignee and Purchaser may be 
substituted for a PRC End-User Certificate under the following 
conditions:
    (1) The item to be exported is described in an Advisory Note for 
Country Group D:1 (See Supplement No. 1 to part 740 of the EAR) on the 
CCL; or
    (2) The item to be exported (i.e., replacement parts and sub-
assemblies) is for servicing previously exported items and is valued at 
$75,000 or less; or
    (3) The End-User is not a Chinese entity.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee or Purchaser.
    (c) License applications requiring support documents. License 
applications requiring support by either a Statement by the Ultimate 
Consignee and Purchaser or an Import or End-User Certificate must 
indicate the type of support document obtained in Block 6 or 7 on your 
application with an ``X'' in the appropriate box. If the support 
document is an Import or End User Certificate, you must also identify 
the originating country and number of the Certificate in Block 13 on 
your application. If a license application is submitted without either 
the correct Block or Box marked on the application or the required 
support document, the license application will be immediately returned 
without action unless the satisfactory reasons for failing to obtain 
the document are supplied in Block 24 or in an attachment to your 
license application.
    (1) License applications supported by an Import or End User 
Certificate. If submission of the original certificate is not required 
by Sec. 748.10(g) of this part, you may submit your license application 
upon receipt of a facsimile

[[Page 12817]]
or other legible copy of the Import or End User Certificate provided 
that no shipment is made against any license issued based upon the 
Import or End User Certificate prior to receipt and retention of the 
original statement by the applicant. If Sec. 748.10(g) of this part 
requires submission of the original certificate with your license 
application, you must submit the original. Copies will not be accepted.
    (2) License applications supported by Ultimate Consignee and 
Purchaser statements. These types of license applications may be 
submitted upon receipt of a facsimile or other legible copy of the 
original statement provided that the original manually-signed statement 
is retained by the ultimate consignee, and you retain a copy of the 
statement.
    (d) Exceptions to obtaining the required support document. BXA will 
consider the granting of an exception to the requirement for supporting 
document where the requirements cannot be met due to circumstances 
beyond your control. An exception will not be granted contrary to the 
objectives of the U.S. export control laws and regulations. Refer to 
Sec. 748.12(d) of this part for specific instructions on procedures for 
requesting an exception.
    (e) Validity period. (1) When an Import or End-User Certificate or 
a Statement by Ultimate Consignee and Purchaser is required to support 
one or more license applications, you must submit the first license 
application within the validity period shown on the Certificate, or 6 
months from the date the Certificate was issued or Statement signed, 
whichever is shorter.
    (2) All subsequent license applications supported by the same 
Import or End-Use Certificate must be submitted to BXA within one year 
from the date that the first license application supported by the same 
Import or End-Use Certificate was submitted to BXA.
    (3) All subsequent license applications supported by the same 
Statement by Ultimate Consignee and Purchaser must be submitted within 
two years of the first application if the statement was completed as a 
single transaction statement. If the statement was completed as a 
multiple transaction statement, all applications must be submitted 
within two years of signature by the consignee or purchaser, whichever 
was last.
    (f) English translation requirements. All abbreviations, coded 
terms, or other expressions on support documents having special 
significance in the trade or to the parties to the transaction must be 
explained on an attachment to the document. Documents in a language 
other than English must be accompanied by an attachment giving an 
accurate English translation, either made by a translating service or 
certified by you to be correct. Explanations or translations should be 
provided on a separate piece of paper, and not entered on the support 
documents themselves.
    (g) Responsibility for full disclosure. (1) Information contained 
in a support document cannot be construed as extending or expanding or 
otherwise modifying the specific information supplied in a license 
application or license issued by BXA. The license application covering 
the transaction discloses all facts pertaining to the transaction. The 
authorizations contained in the resulting license are not extended by 
information contained in an Import Certificate, End-User Certificate or 
Statement by Ultimate Consignee and Purchaser regarding reexport from 
the country of destination or any other facts relative to the 
transaction that are not reported on the license application.
    (2) Misrepresentations, either through failure to disclose facts, 
concealing a material fact, or furnishing false information, will 
subject responsible parties to administrative action by BXA. 
Administrative action may include suspension, revocation, or denial of 
licensing privileges and denial of other participation in exports from 
the United States.
    (3) In obtaining the required support document, you as the 
applicant are not relieved of the responsibility for full disclosure of 
any other information concerning the ultimate destination and end-use, 
end-user of which you know, even if inconsistent with the 
representations made in the Import Certificate, End-User Certificate, 
or Statement by Ultimate Consignee and Purchaser. You are responsible 
for promptly notifying BXA of any change in the facts contained in the 
support document that comes to your attention.
    (h) Effect on license application review. BXA reserves the right in 
all respects to determine to what extent any license will be issued 
covering items for which an Import or End-User Certificate has been 
issued by a foreign government. BXA will not seek or undertake to give 
consideration to recommendations from the foreign government as to the 
action to be taken on a license application. A supporting document 
issued by a foreign government will be only one of the factors upon 
which BXA will base its licensing action, since end-uses and other 
considerations are important factors in the decision making process.
    (i) Request for return of support documents submitted to BXA. If an 
applicant is requested by a foreign importer to return an unused or 
partially used Import or End-User Certificate submitted to BXA in 
support of a license application, the procedure provided in this 
paragraph (i) should be followed:
    (1) The applicant must send a letter request for return of an 
Import or End-User Certificate to the address stated in Sec. 748.2(c) 
of this part, ``Attn: Import/End-User Certificate Request''.
    (2) The letter request must include the name and address of the 
importer, the Application Control Number under which the original 
Import or End-User Certificate was submitted, the Application Control 
Numbers for any subsequent license applications supported by the same 
certificate, and one of the following statements, if applicable:
    (i) If the certificate covers a quantity greater than the total 
quantity identified on the license application(s) submitted against it, 
a statement that the certificate will not be used in connection with 
another license application.
    (ii) If you do not intend to make any additional shipments under a 
license covered by the certificate, or are in possession of an expired 
license covered by the certificate, a statement to this effect, 
indicating the unshipped items.
    (j) Recordkeeping requirements for returning certificates retained 
by the applicant. (1) Though the recordkeeping provisions of the EAR 
require that all original support documents be retained for a period of 
five years, an unused or partially used certificate may be returned at 
the request of a foreign importer provided that you submit the original 
certificate, accompanied by a letter of explanation, a copy of each 
license covered by the certificate, and a list of all shipments made 
against each license to BXA at the address listed in Sec. 748.2(c). BXA 
will notify you in writing whether your request has been granted. The 
following information must be contained in your letter of explanation:
    (i) A statement citing the foreign importer's request for return of 
the certificate;
    (ii) The license number(s) that have been issued against the 
certificate (including both outstanding and expired licenses); and
    (iii) If the certificate covers a quantity greater that the total 
quantity stated on the license(s), you must include a statement that 
the certificate will not be used in connection with another license 
application.

[[Page 12818]]

    (2) If your request is granted, BXA will return the certificate to 
you. You must make a copy of the certificate before you return the 
original to the importer. This copy must show all the information 
contained on the original certificate including any notation made on 
the certificate by BXA. The copies must be retained on file along with 
your correspondence in accordance with the recordkeeping provisions in 
part 762 of the EAR.


Sec. 748.10  Import and End-User Certificates.

    (a) Scope. There are a variety of Import and End-User Certificates 
currently in use by various governments. The control exercised by the 
government issuing the Import or End-User Certificate is in addition to 
the conditions and restrictions placed on the transaction by BXA. The 
laws and regulations of the United States are in no way modified, 
changed, or superseded by the issuance of an Import or End-User 
Certificate. This section describes exceptions and relationships true 
for both Import and End-User Certificates, and applies only to 
transactions involving national security controlled items destined for 
one of the countries identified in Sec. 748.9(b)(2) of this part.
    (b) Import or End-User Certificate. An Import or End-User 
Certificate must be obtained, unless your transaction meets one of the 
exemptions stated in Sec. 748.9(a) of this part, if:
    (1) Any items on your license application are controlled for 
national security reasons (NS),
    (2) The ultimate destination is a country listed in 
Sec. 748.9(b)(2) of this part; and
    (3) Your license application involves the export of items 
classified in a single entry on the CCL, the total value of which 
exceeds $5,000.
    (i) Your license application may list several separate CCL entries. 
If any entry controlled for national security reasons exceeds $5,000, 
then an Import or End-User Certificate must be obtained covering all 
items controlled for national security reasons on your license 
application;
    (ii) If your license application involves a lesser transaction that 
is part of a larger order for items controlled for national security 
reasons in a single ECCN exceeding $5,000, an Import or End-User 
Certificate must be obtained.
    (iii) You may be specifically requested by BXA to obtain an Import 
Certificate for a transaction valued under $5,000.
    (c) How to obtain an Import or End-User Certificate. (1) Applicants 
must request that the importer (e.g., ultimate consignee or purchaser) 
obtain the Import or End-User Certificate, and that it be issued 
covering only those items that are controlled for national security 
reasons. Importers should not be requested to obtain an Import or End-
User Certificate for items that are controlled for reasons other than 
national security. Upon receipt, the importer must transmit the 
original document to the applicant.
    (2) The applicant's name must appear on the Import or End-User 
Certificate submitted to BXA as either the applicant, supplier, or 
order party. The Import Certificate may be made out to either the 
ultimate consignee or the purchaser, even though they are different 
parties, as long as both are located in the same country.

    Note to paragraph (c) of this section: You should furnish the 
consignee with the item description contained in the CCL to be used 
in applying for the Import or End-User Certificate. It is also 
advisable to furnish a manufacturer's catalog, brochure, or 
technical specifications if the item is new.

    (3) If your transaction requires support of a PRC End-User 
Certificate, you must ensure the following information is included on 
the PRC End-User Certificate signed by an official of the Department of 
Science and Technology of the Ministry of Foreign Trade and Economic 
Cooperation (MOFTEC) with MOFTEC's seal affixed to it:
    (i) Title of contract and contract number (optional);
    (ii) Names of importer and exporter;
    (iii) End-User and end-use;
    (iv) Description of the item, quantity and dollar value; and
    (v) Signature of the importer and date.
    (d) Where to obtain Import and End-User Certificates. See 
Supplement No. 4 to this part for a list of the authorities 
administering the Import Certificate/Delivery Verification and End-User 
Certificate Systems in other countries.
    (e) Triangular symbol on International Import Certificates.
    (1) In accordance with international practice, the issuing 
government may stamp a triangular symbol on the International Import 
Certificate (IIC). This symbol is notification that the importer does 
not intend to import or retain the items in the country issuing the 
certificate, but that, in any case, the items will not be delivered to 
any destination except in accordance with the export regulations of the 
issuing country'.
    (2) If you receive an IIC bearing a triangular symbol, you must 
identify all parties to the transaction on the license application, 
including those located outside the country issuing the IIC. If the 
importer declines to provide you with this information, you may advise 
the importer to provide the information directly to BXA, through a U.S. 
Foreign Commercial Service office, or in a sealed envelope to you 
marked ``To be opened by BXA only''.
    (f) Multiple license applications supported by one certificate. An 
Import or End-User Certificate may cover more than one purchase order 
and more than one item. Where the certificate includes items for which 
more than one license application will be submitted, you must include 
in Block 24 on your application, or in an attachment to each license 
application submitted against the certificate, the following 
certification:

    I (We) certify that the quantities of items shown on this 
license application, based on the Certificate identified in Block 13 
of this license application, when added to the quantities shown on 
all other license applications submitted to BXA based on the same 
Certificate, do not total more than the total quantities shown on 
the above cited Certificate.

    (g) Submission of Import and End-User Certificates. If a PRC End-
User Certificate is required for your proposed transaction, you must 
submit the original certificate with your license application. Copies 
will not be accepted. All other certificates must be retained on file 
by the applicant in accordance with the recordkeeping provisions of 
part 762 of the EAR, and not submitted with the license application.
    (h) Alterations. After an Import or End-User Certificate is issued 
by a foreign government, no corrections, additions, or alterations may 
be made on the Certificate by any person. If you desire to explain any 
information contained on the Certificate, you may attach a signed 
statement to the Certificate.
    (i) Request for Delivery Verification. BXA will, on a selective 
basis, require Delivery Verification documents for shipments supported 
by Import Certificates. You will be notified if Delivery Verification 
is required at the time of issuance of the license. Please refer to 
Sec. 748.13 of this part for detailed information on these procedures.
    (j) Retention procedures. You must retain on file the original copy 
of any certificate issued in support of a license application submitted 
to BXA, unless the original is submitted with the license application. 
All recordkeeping provisions contained in part 762 of the EAR apply to 
this requirement, except that reproductions may not be substituted for 
the officially authenticated original in this instance.

[[Page 12819]]



Sec. 748.11  Statement by Ultimate Consignee and Purchaser.

    (a) Exceptions to completing a Statement by Ultimate Consignee and 
Purchaser. A Statement by the Ultimate Consignee and/or Purchaser 
involved in a transaction must be completed unless:
    (1) An International Import Certificate, a People's Republic of 
China End-User Certificate, an Indian Import Certificate, or a 
Bulgarian, Czech, Hungarian, Polish, Romanian or Slovak Import 
Certificate is required in support of the license application;
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in Block 24 on the 
license application. This exemption does not apply where the applicant 
and consignee are separate entities, such as parent and subsidiary, or 
affiliated or associated firms;
    (3) The application is valued at $5000 or less, and is not part of 
a larger transaction; or
    (4) The transaction meets one of the exemptions stated in 
Sec. 748.9(a) of this part.
    (b) Submission of the Statement by Ultimate Consignee and 
Purchaser. A copy of the statement must be submitted with your license 
application if the country of ultimate destination is listed in either 
Country Group D:2, D:3, or D:4 (See Supplement No. 1 to part 740 of the 
EAR). The copy submitted by the applicant must be of sufficient quality 
to ensure all assertions made on the statement are legible and that the 
signatures are sufficiently legible to permit identification of the 
signature as that of the signer. The applicant must receive the 
manually-signed original within 60 days from the date the original is 
signed by the ultimate consignee. The applicant must, upon receipt, 
retain the manually-signed original, and both the ultimate consignee 
and purchaser should retain a copy of the statement in accordance with 
the recordkeeping provisions contained in part 762 of the EAR.
    (c) Form or letter. The ultimate consignee and purchaser must 
complete either a statement on company letterhead in accordance with 
paragraph (e) of this section or Form BXA-711, Statement by Ultimate 
Consignee and Purchaser. If the consignee and purchaser elect to 
complete the statement on letterhead and both the ultimate consignee 
and purchaser are the same entity, only one statement is necessary. If 
the ultimate consignee and purchaser are separate entities, separate 
statements must be prepared and signed. If the ultimate consignee and 
purchaser elects to complete Form BXA-711, only one Form BXA-711 
(containing the signatures of the ultimate consignee and purchaser) 
need be completed. Whether your ultimate consignee and purchaser sign a 
written statement or complete Form BXA-711, the following constraints 
apply:
    (1) Responsible officials representing the ultimate consignee and 
purchaser must sign the statement. ``Responsible official'' is defined 
as someone with personal knowledge of the information included in the 
statement, and authority to bind the ultimate consignee or purchaser 
for whom they sign, and who has the power and authority to control the 
use and disposition of the licensed items.
    (2) The authority to sign the statement may not be delegated to any 
person (agent, employee, or other) whose authority to sign is not 
inherent in his or her official position with the ultimate consignee or 
purchaser for whom he or she signs. The signing official may be located 
in the U.S. or in a foreign country. The official title of the person 
signing the statement must also be included.
    (3) The consignee and/or purchaser must submit information that is 
true and correct to the best of their knowledge and must promptly send 
a new statement to the applicant if changes in the facts or intentions 
contained in their statement(s) occur after the statement(s) have been 
forwarded to the applicant. Once a statement has been signed, no 
corrections, additions, or alterations may be made. If a signed 
statement is incomplete or incorrect in any respect, a new statement 
must be prepared, signed and forwarded to the applicant.
    (d) Instructions for completing Form BXA-711. Instructions on 
completing Form BXA-711 are contained in Supplement No. 3 to this part. 
The ultimate consignee and purchaser may sign a legible copy of Form 
BXA-711. It is not necessary to require your ultimate consignee and 
purchaser sign an original Form BXA-711, provided all information 
contained on the copy is legible.
    (e) Instructions for completing the statement on letterhead. 
Information in response to each of the following criteria must be 
included in the statement. If any information is unknown, that fact 
should be disclosed in the statement. Preprinted information supplied 
on the statement, including the name, address, or nature of business of 
the ultimate consignee or purchaser appearing on the letterhead or 
order form is acceptable but will not constitute evidence of either the 
signer's identity, the country of ultimate destination, or end-use of 
the items described in the license application.
    (1) Paragraph 1. One of the following certifications must be 
included depending on whether the statement is proffered in support of 
a single license application or multiple license applications:
    (i) Single. This statement is to be considered part of a license 
application submitted by [name and address of applicant].
    (ii) Multiple. This statement is to be considered a part of every 
license application submitted by [name and address of applicant] until 
one year from the date this statement is signed.
    (2) Paragraph 2. One or more of the following certifications must 
be included. Note that if any of the facts related to the following 
statements are unknown, this must be clearly stated.
    (i) The items for which a license application will be filed by 
[name of applicant] will be used by us as capital equipment in the form 
in which received in a manufacturing process in [name of country] and 
will not be reexported or incorporated into an end product.
    (ii) The items for which a license application will be filed by 
[name of applicant] will be processed or incorporated by us into the 
following product(s) [list products] to be manufactured in [name of 
country] for distribution in [list name of country or countries].
    (iii) The items for which a license application will be filed by 
[name of applicant] will be resold by us in the form in which received 
for use or consumption in [name of country].
    (iv) The items for which a license application will be filed by 
[name of applicant] will be reexported by us in the form in which 
received to [name of country or countries].
    (v) The items received from [name of applicant] will be [describe 
use of the items fully].
    (3) Paragraph 3. The following two certifications must be included:
    (i) The nature of our business is [possible choices include; 
broker, distributor, fabricator, manufacturer, wholesaler, retailer, 
value added reseller, original equipment manufacturer, etc.].
    (ii) Our business relationship with [name of applicant] is 
[possible choices include; contractual, franchise, distributor, 
wholesaler, continuing and regular individual business, etc.] and we 
have had this business relationship for [number of years].
    (4) Paragraph 4. The final paragraph must include all of the 
following certifications:
    (i) We certify that all of the facts contained in this statement 
are true and

[[Page 12820]]
correct to the best of our knowledge and we do not know of any 
additional facts that are inconsistent with the above statements. We 
shall promptly send a replacement statement to [name of the applicant] 
disclosing any material change of facts or intentions described in this 
statement that occur after this statement has been prepared and 
forwarded to [name of applicant]. We acknowledge that the making of any 
false statement or concealment of any material fact in connection with 
this statement may result in imprisonment or fine, or both, and denial, 
in whole or in part, of participation in U.S. exports or reexports.
    (ii) Except as specifically authorized by the U.S. Export 
Administration Regulations, or by written approval from the Bureau of 
Export Administration, we will not reexport, resell, or otherwise 
dispose of any items approved on a license supported by this statement:
    (1) To any country not approved for export as brought to our 
attention by the U.S. exporter; or
    (2) To any person if there is reason to believe that it will result 
directly or indirectly in disposition of the items contrary to the 
representations made in this statement or contrary to the U.S. Export 
Administration Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by BXA to reexport the 
items in the form in which received even though we may have indicated 
the intention to reexport, and that authorization to reexport is not 
granted in an export license on the basis of information provided in 
the statement, but as a result of a specific request in a license 
application.


Sec. 748.12  Special provisions for support documents.

    (a) Grace periods. Whenever the requirement for an Import or End-
User Certificate or Statement by Ultimate Consignee or Purchaser is 
imposed or extended by a change in the regulations, the license 
application need not conform to the new support documentation 
requirements for a period of 45 days after the effective date of the 
regulatory change published in the Federal Register.
    (1) Requirements are usually imposed or extended by virtue of one 
of the following:
    (i) Addition or removal of national security controls over a 
particular item; or
    (ii) Development of an Import Certificate/Delivery Verification or 
End-User Certificate program by a foreign country; or
    (iii) Removal of an item from eligibility under the Special 
Comprehensive License described in part 752 of the EAR, when you hold 
such a special license and have been exporting the item under that 
license.
    (2) License applications filed during the 45 day grace period must 
be accompanied by any evidence available to you that will support 
representations concerning the ultimate consignee, ultimate 
destination, and end use, such as copies of the order, letters of 
credit, correspondence between you and ultimate consignee, or other 
documents received from the ultimate consignee. You must also identify 
the regulatory change (including its effective date) that justifies 
exercise of the 45 day grace period. Note that an Import or End-User 
Certificate will not be accepted, after the stated grace period, for 
license applications involving items that are no longer controlled for 
national security reasons. If an item is removed from national security 
controls, you must obtain a Statement by Ultimate Consignee and 
Purchaser as described in Sec. 748.11 of this part. Likewise, any item 
newly controlled for national security purposes requires support of an 
Import or End-User Certificate as described in Sec. 748.10 of this part 
after expiration of the stated grace period.
    (b) Reexports. If a support document would be required for an 
export, the same document would be required for reexport to Country 
Group D:1 and E:2 (See Supplement No. 1 to part 740 of the EAR).
    (c) Granting of exceptions to the support documentation 
requirement. An exception to obtaining the required support 
documentation will be considered by BXA, however, an exception will not 
be granted contrary to the objectives of the U.S. export control 
program. A request for exception may involve either a single 
transaction, or where the reason necessitating the request is 
continuing in nature, multiple transactions. If satisfied by the 
evidence presented, BXA may waive the support document requirement and 
accept the license application for processing. Favorable consideration 
of a request for exception generally will be given in instances where 
the support document requirement:
    (1) Imposes an undue hardship on you and/or ultimate consignee 
(e.g., refusal by the foreign government to issue an Import or End-User 
Certificate and such refusal constitutes discrimination against you); 
or
    (2) Cannot be complied with (e.g., the items will be held in a 
foreign trade zone or bonded warehouse for subsequent distribution in 
one or more countries); or
    (3) Is not applicable to the transaction (e.g., the items will not 
be imported for consumption into the named country of destination).
    (d) Procedures for requesting an exception. (1) Requests for 
exception must be submitted with the license application to which the 
request relates. Where the request relates to more than one license 
application it should be submitted with the first license application 
and referred to in Block 24 on any subsequent license application. The 
request for exception must be submitted in writing on the applicant's 
letterhead.
    (2) In instances where you are requesting exception from obtaining 
an Import or End-User Certificate, the request must be accompanied by a 
manually-signed original Statement by Ultimate Consignee and Purchaser 
as described in Sec. 748.11 of this part.
    (3) At a minimum, the letter request must include:
    (i) Name and address of ultimate consignee;
    (ii) Name and address of purchaser, if different from ultimate 
consignee;
    (iii) Location of foreign trade zone or bonded warehouse if the 
items will be exported to a foreign trade zone or bonded warehouse;
    (iv) Type of request, i.e., whether for a single transaction or 
multiple transactions;
    (v) Full explanation of the reason(s) for requesting the exception;
    (vi) Nature and duration of the business relationship between you 
and ultimate consignee and purchaser shown on the license application;
    (vii) Whether you have previously obtained and/or submitted to BXA 
an Import or End-User Certificate issued in the name of the ultimate 
consignee and/or purchaser, and a list of the Application Control 
Number(s) to which the certificate(s) applied; and
    (viii) Any other facts to justify granting an exception.
    (4) Action by BXA. (i) Single transaction request. Where a single 
transaction is involved, BXA will act on the request for exception at 
the same time as the license application with which the request is 
submitted. In those instances where the related license application is 
approved, the issuance of the license will serve as an automatic notice 
to the applicant that the exception was approved. If any restrictions 
are placed on granting of the exception, these will appear on the 
approval. If the request for exception is not approved, BXA will advise 
you by letter.

[[Page 12821]]

    (ii) Multiple transactions request. Where multiple transactions are 
involved, BXA will advise you by letter of the action taken on the 
exception request. The letter will contain any conditions or 
restrictions that BXA finds necessary to impose (including an exception 
termination date if appropriate). In addition, a written acceptance of 
these conditions or restrictions may be required from the parties to 
the transaction.
    (e) Availability of original. The original certificate or statement 
must be kept on file, and made available for inspection in accordance 
with the provisions of part 762 of the EAR. To ensure compliance with 
this recordkeeping requirement, BXA will require applicants, on a 
random basis, to submit specific original certificates and statements 
that have been retained on file. Applicants will be notified in writing 
of any such request.


 Sec. 748.13  Delivery Verification (DV).

    (a) Scope. (1) BXA may request applicants to obtain verifications 
of delivery on a selective basis. A Delivery Verification Certificate 
(DV) is a document issued by the government of the country of ultimate 
destination after the export has taken place and the items have either 
entered the export jurisdiction of the recipient country or are 
otherwise accounted for by the importer to the issuing government. 
Governments that issue DVs are listed in Supplement No. 4 to this part.
    (2) If BXA decides to request verification of delivery, the request 
will appear as a condition on the face of the license. If the license 
is sent directly to a party other than the applicant authorized to 
receive the license (e.g., agent, forwarder, broker, etc.), such party 
is responsible for notifying the licensee immediately in writing that a 
DV is required.
    (b) Exception to obtaining Delivery Verification. The DV 
requirement for a particular transaction is automatically canceled if, 
subsequent to the issuance of a license, the item is no longer 
controlled for national security reasons. In this instance, the 
licensee must send a letter to BXA at the address listed in 
Sec. 748.2(c) of this part, stating that the items on the license are 
no longer controlled for national security reasons, and accordingly, 
the request for DV will not be fulfilled by the licensee.
    (c) Procedure for obtaining Delivery Verification. When notified 
that a DV is required by BXA, the licensee must transmit to the 
importer a written request for a DV at the time of making each shipment 
under the license (whenever possible, this request should be submitted 
together with the related bill of lading or air waybill). The request 
must include the number of the Import or End-User Certificate for the 
transaction referred to on the license, and notify the importer that 
this same Import or End-User Certificate number should be shown on the 
DV.
    (1) The importer must obtain the DV from the appropriate government 
ministry identified in Supplement No. 4 to this part, and forward the 
completed DV to the licensee. The DV must cover the items described on 
the license that have been shipped. Note that BXA must be able to 
relate the description provided in the DV to the approved license. In 
order to ensure the same terminology is used, the licensee should 
provide the importer with the description as it appears on the license.
    (2) The original copy of the DV must be sent to BXA within 90 days 
after the last shipment has been made against the license. If 
verification of delivery is required for items covered by a license 
against which partial shipments have been made, the licensee shall 
obtain the required DV for each partial shipment, and retain these on 
file until all shipments have been made against the license. Once all 
shipments against the license have been made (or the licensee has 
determined that none will be), the licensee must forward, in one 
package, all applicable DVs to BXA at the address listed in 
Sec. 748.2(c) of this part.
    (3) The documents must be forwarded with a dated letter giving the 
license number, the name, title and signature of the authorized 
representative, and one of the following statements:
    (i) The total quantity authorized by license number ______ has been 
exported, and all delivery verification documents are attached.
    (ii) A part of the quantity authorized by license number ______ 
will not be exported. Delivery verification documents covering all 
items exported are attached.
    (iii) No shipment has been made against this license, and none is 
contemplated.
    (d) Inability to obtain Delivery Verification Certificates. If a 
licensee is unable to obtain the required DV (within the time frame 
stated above, or at all) from the importer, the licensee must promptly 
notify BXA and, upon request, make available all information and 
records, including correspondence, regarding the attempt to obtain the 
DV.

Supplement No. 1 to Part 748 BXA-748P, BXA-748P-A; Item Appendix, and 
BXA-748P-B; End-User Appendix; Multipurpose Application Instructions

    All information must be legibly typed within the lines for each 
Block or Box except where a signature is required. Where there is a 
choice of entering telephone numbers or facsimile numbers, and you 
wish to provide a facsimile number instead of a telephone number, 
identify the facsimile number with the letter ``F'' immediately 
after the number (e.g., 011-358-0-123456F).
    Block 1: Contact Person. Enter the name of the person who can 
answer questions concerning the application.
    Block 2: Telephone. Enter the telephone number of the person who 
can answer questions concerning the application.
    Block 3: Facsimile. Enter the facsimile number, if available, of 
the person who can answer questions concerning the application.
    Block 4: Date of Application. Enter the current date.
    Block 5: Type of Application. Export. If the items are located 
within the United States, and you wish to export those items, mark 
the Box labeled ``Export'' with an (X). Reexport. If the items are 
located outside the United States, mark the Box labeled ``Reexport'' 
with an (X). Classification Request. If you are requesting BXA to 
classify your item against the Commerce Control List (CCL), mark the 
Box labeled ``Classification Request'' with an (X). Special 
Comprehensive License. If you are submitting a Special Comprehensive 
License application in accordance with procedures described in part 
752 of the EAR, mark the Box labeled ``Special Comprehensive 
License'' with an (X).
    Block 6: Attachments submitted with Application. Review the 
documentation you are required to submit with your application in 
accordance with the provisions of part 748 of the EAR, and mark all 
applicable Boxes with an (X).
    Mark the Box ``Foreign Availability'' with an (X) if you are 
submitting an assertion of foreign availability with your license 
application. See part 768 of the EAR for instructions on foreign 
availability submissions.
    Mark the ``Tech. Specs.'' box with an (X) if you are submitting 
descriptive literature, brochures, technical specifications, etc. 
with your application.
    Block 7: Documents on File with Applicant. Certify that you have 
retained on file all applicable documents as required by the 
provisions of part 748 by placing an (X) in the appropriate Box(es).
    Block 8: Special Comprehensive License. Complete this Block only 
if you are submitting an application for a Special Comprehensive 
License in accordance with part 752 of the EAR.
    Block 9: Special Purpose. Complete this box for certain items or 
types of transactions only if specifically required in Supplement 
No. 2 to this part.
    Block 10: Resubmission Application Control Number. If your 
original application was returned without action, provide the 
Application Control Number for that application.

[[Page 12822]]

    Block 11: Replacement License Number. If you have received a 
license for identical items to the same ultimate consignee, but 
would like to make a change to the license as originally approved 
not excepted in Sec. 750.7(c) of the EAR, enter the license number 
here, and a statement in Block 24 regarding what changes you wish to 
make to the original license.
    Block 12: Items Previously Exported. This Block should be 
completed only if you have marked the ``Reexport'' box in Block 5. 
Enter the license number, License Exception symbol (for exports 
under General Licenses, enter the appropriate General License 
symbol), or other authorization under which the items were 
originally exported, if known.
    Block 13: Import/End-User Certificate. Enter the name of the 
country and number of the Import or End User Certificate obtained in 
accordance with provisions of this part.
    Block 14: Applicant. Enter the applicant's name, street address, 
city, state/country, and postal code. Refer to Sec. 748.5(a) of this 
part for a definition of ``applicant''. If you have marked 
``Export'' in Block 5, you must include your company's Employer 
Identification Number unless you are filing as an individual or as 
an agent on behalf of the exporter. The Employer Identification 
Number is assigned by the Internal Revenue Service for tax 
identification purposes. Accordingly, you should consult your 
company's financial officer or accounting division to obtain this 
number.
    Block 15: Other Party Authorized to Receive License. If you 
would like BXA to transmit the approved license to another party 
designated by you, complete all information in this Block, including 
name, street address, city, country, postal code and telephone 
number. Leave this space blank if the license is to be sent to the 
applicant. Designation of another party to receive the license does 
not alter the responsibilities of the applicant.
    Block 16: Purchaser. Enter the purchaser's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. Refer to Sec. 748.5(c) of this part for a definition of 
``purchaser''. If the purchaser is also the ultimate consignee, 
enter the words ``same as Block 18''.
    Block 17: Intermediate Consignee. Enter the intermediate 
consignee's complete name, street address, city, country, postal 
code and telephone or facsimile number. Provide a complete street 
address, P.O. Boxes are not acceptable. Refer to Sec. 748.5(d) of 
this part for a definition of ``intermediate consignee''. If this 
party is identical to that listed in Block 16, you may simply type 
the words ``Same as Block 16''. If your proposed transaction does 
not involve use of an intermediate consignee, enter ``None''. If 
your proposed transaction involves use of more than one intermediate 
consignee, provide the information in Block 24 for each additional 
Intermediate Consignee.
    Block 18: Ultimate Consignee. Enter the ultimate consignee's 
complete name, street address, city, country, postal code and 
telephone or facsimile number. Provide a complete street address, 
P.O. Boxes are not acceptable. The ultimate consignee is the party 
who will actually receive the material for the end-use designated in 
Block 21.
    Refer to Sec. 748.5(e) of this part for the definition of 
``ultimate consignee''. A bank, freight forwarder, forwarding agent, 
or other intermediary may not be identified as the ultimate 
consignee. Government purchasing organizations are the sole 
exception to this requirement. This type of entity may be identified 
as the government entity that is the actual ultimate consignee in 
those instances when the items are to be transferred to the 
government entity that is the actual end-user, provided the actual 
end-use and end-user is clearly identified in Block 21 or in 
additional documentation attached to the application.
    If your application is for the reexport of items previously 
exported, enter the new ultimate consignee's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. If your application involves a temporary export or reexport, 
the applicant should be shown as the ultimate consignee in care of a 
person or entity who will have control over the items abroad.
    Block 19: End-User. Complete this Block only if the ultimate 
consignee identified in Block 18 is not the actual end-user. If 
there will be more than one end-user, enter the word ``Various'' in 
this Block, and use Form BXA-748P-B to identify each of the end-
users. Enter each end user's complete name, street address, city, 
country, postal code and telephone or facsimile number. Provide a 
complete street address, P.O. Boxes are not acceptable.
    Block 20: Original Ultimate Consignee. If your application 
involves the reexport of items previously exported, enter the 
original ultimate consignee's complete name, street address, city, 
country, postal code and telephone or facsimile number. The original 
ultimate consignee is the entity identified in the original 
application for export as the ultimate consignee or the party 
currently in possession of the items. Provide a complete street 
address, P.O. Boxes are not acceptable.
    Block 21: Specific End-Use. Provide a complete and detailed 
description of the end-use intended by the ultimate consignee and/or 
end-user(s). If you are requesting approval of a reexport, provide a 
complete and detailed description of the end-use intended by the new 
ultimate consignee or end user(s) and indicate any other countries 
for which resale or reexport is requested. If additional space is 
necessary, use Block 21 on Form BXA-748P-A or B. Be specific, such 
vague descriptions as ``research,'' ``manufacturing,'' or 
``scientific uses'' are not acceptable.
    Block 22: For a license application you must complete each of 
the sub-blocks contained in this Block, If you are submitting a 
classification request, you need not complete Blocks (e), (f), (g), 
and (h). Enter ``N/A'' in these blocks. If you wish to export, 
reexport or have BXA classify more than one item, use Form BXA-748P-
A for additional items.
    (a) ECCN. Enter the Export Control Classification Number (ECCN) 
that corresponds to the item you wish to export or reexport. If you 
are asking BXA to classify your item, provide a recommended 
classification for the item in this Block.
    (b) CTP. You must complete this Block if your application 
involves a digital computer or equipment containing a digital 
computer as described in Supplement No. 2 to this part.
    Instructions on calculating the CTP are contained in a Technical 
Note at the end of Category 4 in the CCL. If your application does 
not involve these items, insert ``N/A'' in this Block.
    (c) Model Number. Enter the correct model number for each item.
    (d) CCATS Number. If you have received a classification for this 
item from BXA, provide the CCATS number shown on the classification 
issued by BXA. Otherwise, enter ``N/A'' in this Block.
    (e) Quantity. Identify the quantity to be exported or 
reexported, in terms of the ``Units'' identified for the ECCN 
entered in Block 21(a). If the ``Unit'' for an item is ``$ value,'' 
enter the quantity in units commonly used in the trade.
    (f) Units. The ``Unit'' paragraph within each ECCN will list a 
specific ``Unit'' for those items controlled by the entry. The 
``Unit'' must be entered on all license applications submitted to 
BXA. If an item is licensed in terms of ``$ value'', the unit of 
quantity commonly used in trade must also be shown on the license 
application. If the unit for your particular item is shown as ``N/
A'' in the appropriate entry on the CCL, enter ``N/A'' in this 
Block.
    (g) Unit Price. Provide the fair market value of the items you 
wish to export or reexport. Round all prices to the nearest whole 
dollar amount. Give the exact unit price only if the value is less 
than $0.50. If normal trade practices make it impractical to 
establish a firm contract price, state in Block 24 the precise terms 
upon which the price is to be ascertained and from which the 
contract price may be objectively determined.
    (h) Total Price. Provide the total price of the item(s) 
described in Block 22(j).
    (i) Manufacturer. Provide the name only of the manufacturer, if 
known, for each of the items you wish to export, reexport, or have 
BXA classify, if different from the applicant.
    (j) Technical Description. Provide a description of the item(s) 
you wish to export, reexport, or have BXA classify. Provide details 
when necessary to identify the specific item(s), include all 
characteristics or parameters shown in the applicable ECCN using 
measurements identified in the ECCN (e.g., basic ingredients, 
composition, electrical parameters, size, gauge, grade, horsepower, 
etc.). These characteristics must be identified for the items in the 
proposed transaction when they are different than the 
characteristics described in promotional brochure(s).
    Block 23: Total Application Dollar Value. Enter the total value 
of all items contained on the application in U.S. Dollars. The use 
of other currencies is not acceptable.
    Block 24: Additional Information. Enter additional data 
pertinent to the application as required in the EAR. Include special 
certifications, names of parties in interest not disclosed 
elsewhere, explanation of documents attached, etc. Do not include 
information concerning Block 22 in this space.
    If your application represents a previously denied application, 
you must provide the

[[Page 12823]]
Application Control Number for the original application.
    If you are asking BXA to classify your product, use this space 
to explain why you believe the ECCN entered in Block 22(a) is 
appropriate. This explanation must contain an analysis of the item 
in terms of the technical control parameters specified in the 
appropriate ECCN. If you do not identify a recommended 
classification in Block 22(a), you must state the reason you cannot 
determine the appropriate classification, identifying any 
ambiguities or deficiencies in the regulations that precluded you 
from determining the correct classification.
    If additional space is necessary, use Block 24 on Form BXA-748P-
A or B.
    Block 25: You, as the applicant or duly authorized agent of the 
applicant, must manually sign the application. If you are an agent 
of the applicant, in addition to providing your name and title in 
this Block you must enter your company's name in Block 24.

    Note: Rubber-stamped or electronic signatures are not 
acceptable. Type both your name and title in the spaces provided.

Supplement No. 2 to Part 748--Unique License Application 
Requirements

    In addition to the instructions contained in Supplement No. 1 to 
part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described in this supplement 
are addressed in your license application. All other blocks not 
specifically identified in this supplement must be completed in 
accordance with the instructions contained in Supplement No. 1 to 
part 748. The term ``Block'' used in this supplement relates to Form 
BXA-748P, unless otherwise noted.
    (a) Chemicals, medicinals, and pharmaceuticals. If you are 
submitting a license application for the export or reexport of 
chemicals, medicinals, and/or pharmaceuticals, the following 
information must be provided in Block 22.
    (1) Facts relating to the grade, form, concentration, 
mixture(s), or ingredients as may be necessary to identify the item 
accurately, and;
    (2) The Chemical Abstract Service Registry (C.A.S.) numbers, if 
they exist, must be identified.
    (b) Communications intercepting devices. If you are required to 
submit a license application under Sec. 742.13 of this part, you 
must enter the words ``Communications Intercepting Device(s)'' in 
Block 9. The item you are requesting to export or reexport must be 
specified by name in Block 22(j).
    (c) Digital computers, telecommunications, and related 
equipment. If your license application involves items controlled by 
both Category 4 and Category 5, your license application must be 
submitted according to the principal function of the equipment. 
License applications involving computers controlled by Category 4 
must identify a Composite Theoretical Performance (CTP) in Block 
22(b). If the principal function is telecommunications, a CTP is not 
required. Computers, related equipment, or software performing 
telecommunication or local area network functions will be evaluated 
against the telecommunications performance characteristics of 
Category 5, while cryptographic, cryptoanalytic, certifiable multi-
level security or certifiable user isolation functions, or systems 
that limit electromagnetic compatibility (EMC) will be evaluated 
against the information security performance characteristics of 
Category 5.
    (1) Requirements for license applications involving digital 
computers. If you are submitting a license application to export or 
reexport ``digital computers'' or equipment containing digital 
computers to destinations in Country Group D:1 (See Supplement No. 1 
to part 740 of the EAR), or to upgrade existing ``digital computer'' 
installations in those countries, you must include in addition to 
the CTP in Block 22(b) the following information:
    (i) A configuration diagram of the entire system must be 
submitted if the equipment exceeds the limits of the Advisory Notes 
that indicate a likelihood of approval for Country Group D:1 for the 
appropriate ECCN in the Commerce Control List (CCL); and
    (ii) Technical specifications and product brochures to 
corroborate the data supplied in your license application.
    (2) Additional requirements. License applications to export or 
reexport computers or related equipment that are described in 
Advisory Note 4 to Category 4, or that exceed any of the limits 
specified in Advisory Notes 3 or 4 to Category 4, must include:
    (i) A signed statement by a responsible representative of the 
end-user or the importing agency describing the end-use and 
certifying that the ``digital'' computers or related equipment:
    (A) Will be used only for civil applications; and
    (B) Will not be reexported or otherwise disposed of without 
prior written authorization from BXA;
    (ii) A full description of the equipment and its intended 
application and workload; and
    (iii) A complete identification of all end-users and their 
activities.
    (d) Gift parcels; consolidated in a single shipment. If you are 
submitting a license application to export multiple gift parcels for 
delivery to individuals residing in a foreign country, you must 
include the following information in your license application. Note: 
Each gift parcel must meet the terms and conditions described in 
License Exception GFT (See Sec. 740.16 of the EAR).

    (1) In Block 16, enter the word ``None'';

    (2) In Block 18, enter the word ``Various'' instead of the name 
and address of a single ultimate consignee;
    (3) In Block 21, enter the phrase ``For personal use by 
recipients''.
    (4) In Block 22(e), indicate a reasonable estimate of the number 
of parcels to be shipped during the validity of the license;
    (5) In Block 22(j), enter the phrase ``Gift Parcels'';
    (6) In Block 23, indicate a reasonable value approximation 
proportionate to the quantity of gift parcels identified in Block 
22(e); and
    (e) Intransit through the United States. If you are submitting a 
license application for items moving intransit through the United 
States that do not qualify for License Exception TUS (See Sec. 740.9 
of the EAR), you must provide the following information with your 
license application:
    (1) In Block 9, enter the phrase ``Intransit Shipment'';
    (2) In Block 24, enter the name and address of the foreign 
consignor who shipped the items to the United States and state the 
origin of the shipment;
    (3) Any available evidence showing the approval or acquiescence 
of the exporting country (or the country of which the exporter is a 
resident) for shipments to the proposed ultimate destination. Such 
evidence may be in the form of a Transit Authorization Certificate; 
and
    (4) Any support documentation required by Sec. 748.9 of this 
part for the country of ultimate destination.
    (f) Intransit outside of the United States. If you are 
submitting a license application based on General Prohibition No. 8 
stated in Sec. 734.2(b)(8) of the EAR and identification of the 
intermediate consignee in the country of unlading or transit is 
unknown at the time the license application is submitted, the 
country of unlading or transit must be shown in Block 17.
    (g) Nuclear Nonproliferation items and end-uses.--(1) Statement 
requirement. If a license is required to export or reexport items 
under Sec. 744.2 of the EAR, prior to submitting a license 
application you must obtain a signed written statement from the 
foreign importer certifying the following:
    (i) The items to be exported or replicas thereof (``replicas'' 
refers to items produced abroad based on physical examination of the 
item originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 744.2(a) of the EAR; and
    (ii) Written authorization will be obtained from the BXA prior 
to reexporting the items, unless they are destined to Canada or 
would be eligible for export from the United States to the new 
country of destination under NLR based on Country Chart NP Column 1.
    (2) License application requirements. Along with the required 
certification, you must include the following information in your 
license application:
    (i) In Block 6, place an (X) in the box titled ``Nuclear 
Certification'';
    (ii) In Block 9, enter the phrase ``NUCLEAR CONTROLS'';
    (iii) In Block 21, provide, if known, the specific geographic 
locations of any installations, establishments, or sites at which 
the items will be used;
    (iv) In Block 22(j), if applicable, include a description of any 
specific features of design or specific modifications that make the 
item capable of nuclear explosive activities, or of safeguarded or 
unsafeguarded nuclear activities as described in Sec. 744.2(a)(3) of 
the EAR; and
    (v) In Block 24, if your license application is being submitted 
because you know that your transaction involves a nuclear end-use 
described in Sec. 744.2 of the EAR, you must fully explain the basis 
for your knowledge that the items are intended for the purpose(s) 
described Sec. 744.2 of the EAR. Indicate, if possible, the specific 
end-use(s) the items will have in designing, developing,

[[Page 12824]]
fabricating, or testing nuclear weapons or nuclear explosive devices 
or in designing, constructing, fabricating, or operating the 
facilities described in Sec. 744.2(a)(3) of the EAR.
    (h) Numerical control devices, motion control boards, 
numerically controlled machine tools, dimensional inspection 
machines, direct numerical control systems, specially designed 
assemblies and specially designed software. (1) If you are 
submitting a license application to export, reexport, or request BXA 
to classify numerical control devices, motion control boards, 
numerically controlled machine tools, dimensional inspection 
machines, and specially designed software you must include the 
following information in your license application:
    (i) For numerical control devices and motion control boards:
    (A) Make and model number of the control unit;
    (B) Description and internal configuration of numerical control 
device. If the device is a computer with motion control board(s), 
then include the make and model number of the computer;
    (C) Description of the manner in which a computer will be 
connected to the CNC unit for on-line processing of CAD data. 
Specify the make and model of the computer;
    (D) Number of axes the control unit is capable of simultaneously 
controlling in a coordinated contouring mode, and type of 
interpolation (linear, circular, and other);
    (E) Minimum programmable increment;
    (F) A description and an itemized list of all software/firmware 
to be supplied with the control device or motion control board, 
including software/firmware for axis interpolation function and for 
any programmable control unit or device to be supplied with the 
control unit;
    (G) Description of capabilities related to ``real time 
processing'' and receiving computer aided-design as described in 
ECCN 2B001.a.2.a and a.2.b and ECCN 2B001.b.2 and b.3;
    (H) A description of capability to accept additional boards or 
software that would permit an upgrade of the electronic device or 
motion control board above the control levels specified in ECCN 
2B001; and
    (I) Specify if the electronic device has been downgraded, and if 
so can it be upgraded in future.
    (ii) For numerically controlled machine tools and dimensional 
inspection machines:
    (A) Name and model number of machine tool or dimensional 
inspection machine;
    (B) Type of equipment, e.g., horizontal boring machine, 
machining center, dimensional inspection machine, turning center, 
water jet, etc.;
    (C) Description of the linear and rotary axes capable of being 
simultaneously controlled in a coordinated contouring mode, 
regardless of the fact that the coordinated movement of the machine 
axis may be limited by the numerical control unit supplied by the 
machine tool;
    (D) Maximum workpiece diameter for cylindrical grinding 
machines;
    (E) Motion (camming) of the spindle axis measured in the axial 
direction in one revolution of the spindle, and a description of the 
method of measurement for turning machine tools only;
    (F) Motion (run out) of the spindle axis measured in the radial 
direction in one revolution of the spindle, and a description of the 
method of measurement;
    (G) Overall positioning accuracy in each axis, and a description 
of the method for measurement; and
    (H) Slide motion test results if required as described in ECCN 
2B001.c.1.b.6.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. BXA will consider license applications to 
export or reexport to multiple consignees or multiple countries when 
an application is required for foreign produced direct product 
containing parts and components subject to the EAR in Sec. 732.4(b) 
of the EAR and to General Prohibition Two stated in Sec. 734.2(b)(2) 
of the EAR. Such requests will not be approved for countries listed 
in Country Group E:2 (See Supplement No. 1 to part 740 of the EAR), 
and may be approved only in limited circumstances for countries 
listed in Country Group D:1.
    (1) License applications for the export of parts and components. 
If you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products 
that will then be sent to designated third countries, you must enter 
in Block 21, a description of end-use including a general 
description of the commodities to be manufactured, their typical 
end-use, and the countries where those commodities will be marketed. 
The countries may be listed specifically or may be identified by 
Country Groups, geographic areas, etc.
    (2) License applications for the reexport of incorporated parts 
and components. If you are submitting a license application for the 
reexport of parts, components, or materials incorporated abroad into 
products that will be sent to designated third countries you must 
include the following information in your license application:
    (i) In Block 9, enter the phrase ``Parts and Components'';
    (ii) In Block 18, enter the name, street address, city and 
country of the foreign party who will be receiving the foreign-made 
product. If you are requesting approval for multiple countries or 
consignees enter ``Various'' in Block 18, and list the specific 
countries, Country Groups, or geographic areas in Block 24;
    (iii) In Block 20, enter the name, street address, city, and 
country of the foreign party who will be exporting the foreign-made 
product incorporating U.S. origin parts, components or materials;
    (iv) In Block 21, describe the activity of the ultimate 
consignee identified in Block 18 and the end-use of the foreign-made 
product. Indicate the final configuration if the product is intended 
to be incorporated in a larger system. If the end-use is unknown, 
state ``unknown'' and describe the general activities of the end-
user;
    (v) In Block 22(e), specify the quantity for each foreign-made 
product. If this information is unknown, enter ``Unknown'' in Block 
22(e);
    (vi) In Block 22(h), enter the digit ``0'' for each foreign-made 
product;
    (vii) In Block 22(j), describe the foreign-made product that 
will be exported, specifying type and model or part number. Attach 
brochures or specifications, if available. Show as part of the 
description the unit value, in U.S. dollars, of the foreign-made 
product (if more than one foreign-made product is listed on the 
license application, specify the unit value for each type/model/part 
number). Also include a description of the U.S. content (including 
the applicable Export Control Classification Number(s)) and its 
value in U.S. dollars. If more than one foreign-made product is 
identified on the license application, describe the U.S. content and 
specify the U.S. content value for each foreign-made product. Also, 
provide sufficient supporting information to explain the basis for 
the stated values. To the extent possible, explain how much of the 
value of the foreign-made product represents foreign origin parts, 
components, or materials, as opposed to labor, overhead, etc. When 
the U.S. content varies and cannot be specified in advance, provide 
a range of percentage and value that would indicate the minimum and 
maximum U.S. content;
    (viii) Include separately in Block 22(j) a description of any 
U.S. origin spare parts to be reexported with the foreign-made 
product, if they exceed the amount allowed by Sec. 740.10 of the 
EAR. Enter the quantity, if appropriate, in Block 22(e). Enter the 
ECCN for the spare parts in Block 22(a) and enter the value of the 
spare parts in Block 22(h);
    (ix) In Block 23, enter the digit ``0'';
    (x) If the foreign-made product is the direct product of U.S. 
origin technology that was exported or reexported subject to written 
assurance, a request for waiver of that assurance, if necessary, may 
be made in Block 24. If U.S. origin technology will accompany a 
shipment to a country listed in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR) describe in Block 24 the 
type of technology and how it will be used.
    (j) Ship stores, plane stores, supplies, and equipment.--(1) 
Vessels under construction. If you are submitting a license 
application for the export or reexport of items, including ship 
stores, supplies, and equipment, to a vessel under construction you 
must include the following information in your license application:
    (i) In Block 18, enter the name, street address, city, and 
country of the shipyard where vessel is being constructed;
    (ii) In Block 22(j), state the length of the vessel for a vessel 
under 12 m (40 ft) in length. For a vessel 12 m (40 ft) in length or 
over, provide the following information (if this information is 
unknown, enter ``Unknown'' in this Block):
    (A) Hull number and name of vessel;
    (B) Type of vessel;
    (C) Name and business address of prospective owner, and the 
prospective owner's nationality; and
    (D) Country of registry or intended country of registry.
    (2) Aircraft under construction. If you are submitting a license 
application for the export or reexport of items, including plane 
stores, supplies, and equipment, to an aircraft under construction 
you must include the

[[Page 12825]]
following information in your license application:
    (i) In Block 18, enter the name and address of the plant where 
the aircraft is being constructed;
    (ii) In Block 22(j), enter the following information (if this 
information is unknown, enter ``Unknown'' in this Block):
    (A) Type of aircraft and model number;
    (B) Name and business address of prospective owner and his 
nationality; and
    (C) Country of registry or intended country of registry.
    (3) Operating vessels and aircraft. If you are submitting a 
license application for the export or reexport of items, including 
ship or plane stores, supplies, and equipment to an operating vessel 
or aircraft, whether in operation or being repaired, you must 
include the following information in your license application:
    (i) In Block 18, enter the name of the owner, the name of the 
vessel, if applicable, and port or point where the items will be 
taken aboard;
    (ii) In Block 18, enter the following statement if, at the time 
of filing the license application, it is uncertain where the vessel 
or aircraft will take on the items, but it is known that the items 
will not be shipped to a country listed in Country Group D:1 or E:2 
(see Supplement No. 1 to part 740 of the EAR):
    Uncertain; however, shipment(s) will not be made to Country 
Groups D:1 or E:2.
    (iii) Provide information as described in paragraph (j)(1)(ii) 
of this supplement for vessels or information contained in paragraph 
(j)(2)(ii) of this supplement for aircraft.
    (k) Regional stability controlled items. If you are submitting a 
license application for the export or reexport of items controlled 
for regional stability reasons and subject to licensing under RS 
Column 1 on the Country Chart, your license application must be 
accompanied by full technical specifications.
    (l) Reexports. If you know that an item that requires a license 
to be exported from the United States to a certain foreign 
destination will be reexported to a third destination also requiring 
approval, such a request must be included on the license 
application. The license application must specify the country to 
which the reexport will be made in Block 24. If the export does not 
require a license but the reexport does, you may apply for a license 
for the reexport, or you may export without a license and notify the 
consignee of the requirement to seek a license to reexport.
    (m) Robots. If you are submitting a license application for the 
export or reexport of items controlled by ECCNs 2B007 or 2D001 
(including robots, robot controllers, end-effectors, or related 
software) the following information must be provided in Block 24:
    (1) Specify if the robot is equipped with a vision system and 
its make, type, and model number;
    (2) Specify if the robot is specially designed to comply with 
national safety standards for explosive munitions environments;
    (3) Specify if the robot is specially designed for outdoor 
applications and if it meets military specifications for those 
applications;
    (4) Specify if the robot is specially designed for operating in 
an electro-magnetic pulse (EMP) environment;
    (5) Specify if the robot is specially designed or rated as 
radiation-hardened beyond that necessary to withstand normal 
industrial (i.e., non-nuclear industry) ionizing radiation, and its 
rating in grays (Silicon);
    (6) Describe the robot's capability of using sensors, image 
processing or scene analysis to generate or to modify robot program 
instructions or data;
    (7) Describe the manner in which the robot may be used in 
nuclear industry/manufacturing; and
    (8) Specify if the robot controllers, end-effectors, or software 
are specially designed for robots controlled by ECCN 2B007, and why.
    (n) Short Supply controlled items. If you are submitting a 
license application for the export of items controlled for short 
supply reasons, you must consult part 754 of the EAR for 
instructions on preparing your license application.
    (o) Technology--(1) License application instructions. If you are 
submitting a license application for the export or reexport of 
technology you must check the box labeled ``Letter of Explanation'' 
in Block 6, enter the word ``Technology'' in Block 9, leave Blocks 
22(e) and (i) blank, and include a general statement that specifies 
the technology (e.g., blueprints, manuals, etc.) in Block 22(j).
    (2) Letter of explanation. Each license application to export or 
reexport technology must be supported by a comprehensive letter of 
explanation. This letter must describe all the facts for a complete 
disclosure of the transaction including, if applicable, the 
following information:
    (i) The identities of all parties to the transaction;
    (ii) The exact project location where the technology will be 
used;
    (iii) The type of technology to be exported or reexported;
    (iv) The form in which the export or reexport will be made;
    (v) The uses for which the data will be employed;
    (vi) An explanation of the process, product, size, and output 
capacity of all items to be produced with the technology, if 
applicable, or other description that delineates, defines, and 
limits the data to be transmitted (the ``technical scope''); and
    (vii) The availability abroad of comparable foreign technology.
    (3) Special provisions.
    (i) Technology controlled for national security reasons. If you 
are submitting a license application to export technology controlled 
for national security reasons to a country not listed in Country 
Group D:1 or E:2 (see Supplement No. 1 to part 740 of the EAR), you 
must obtain a written letter from the ultimate consignee assuring 
that, unless prior authorization is obtained from BXA, the consignee 
will not knowingly reexport the technology to any destination, or 
export the direct product of the technology to a country listed in 
Country Group D:1 or E:2 (See Supplement No. 1 to part 740 of the 
EAR). If you are unable to obtain this letter of assurance from your 
consignee, you must state in your license application why the 
assurances could not be obtained.
    (ii) Maritime nuclear propulsion plants and related items. If 
you are submitting a license application to export or reexport 
technology relating to maritime nuclear propulsion plants and 
related items including maritime (civil) nuclear propulsion plants, 
their land prototypes, and special facilities for their 
construction, support, or maintenance, including any machinery, 
device, component, or equipment specifically developed or designed 
for use in such plants or facilities you must include the following 
information in your license application:
    (A) A description of the foreign project for which the 
technology will be furnished;
    (B) A description of the scope of the proposed services to be 
offered by the applicant, his consultant(s), and his 
subcontractor(s), including all the design data that will be 
disclosed;
    (C) The names, addresses and titles of all personnel of the 
applicant, the applicant's consultant(s) and subcontractor(s) who 
will discuss or disclose the technology or be involved in the design 
or development of the technology;
    (D) The beginning and termination dates of the period of time 
during which the technology will be discussed or disclosed and a 
proposed time schedule of the reports the applicant will submit to 
BXA, detailing the technology discussed or disclosed during the 
period of the license;
    (E) The following certification:
    I (We) certify that if this license application is approved, I 
(we) and any consultants, subcontractors, or other persons employed 
or retained by us in connection with the project licensed will not 
discuss with or disclose to others, directly or indirectly, any 
technology relating to U.S. naval nuclear propulsion plants. I (We) 
further certify that I (we) will furnish to the Bureau of Export 
Administration all reports and information it may require concerning 
specific transmittals or disclosures of technology under any license 
granted as a result of this license application.
    (F) A statement of the steps that you will take to assure that 
personnel of the applicant, the applicant's consultant(s) and 
subcontractor(s) will not discuss or disclose to others technology 
relating to U.S. naval nuclear propulsion plants; and
    (G) A written statement of assurance from the foreign importer 
as described in paragraph (o)(3)(i) of this Supplement.
    (p) Temporary exports or reexports. If you are submitting a 
license application for the temporary export or reexport of an item 
(not eligible for License Exception TMP (See Sec. 740.8 of the EAR)) 
you must include the following certification in Block 24:
    The items described on this license application are to be 
temporarily exported (or reexported) for (state the purpose e.g., 
demonstration, testing, exhibition, etc.), used solely for the 
purpose authorized, and returned to the United States (or 
originating country) as soon as the temporary purpose has ended, but 
in no case later than one year of the date of export (or reexport), 
unless other disposition has been authorized in

[[Page 12826]]
writing by the Bureau of Export Administration.

Supplement No. 3 to Part 748--BXA-711, Statement by Ultimate Consignee 
and Purchaser Instructions

    All information must be typed or legibly printed in each 
appropriate Block or Box.
    Block 1: Ultimate Consignee. The Ultimate Consignee must be the 
person abroad who is actually to receive the material for the 
disposition stated in Block 2. A bank, freight forwarder, forwarding 
agent, or other intermediary is not acceptable as the Ultimate 
Consignee.
    Block 2: Disposition or Use of Items by Ultimate Consignee named 
in Block 1. Place an (X) in ``A.,'' ``B.,'' ``C.,'' ``D.,'' and 
``E.,'' as appropriate, and fill in the required information.
    Block 3: Nature of Business of Ultimate Consignee named in Block 
1. Complete both ``A'' and ``B''.
    Possible choices for ``A'' include: broker, distributor, 
fabricator, manufacturer, wholesaler, retailer, value added 
reseller, original equipment manufacturer, etc.
    Possible choices for ``B'' include: contractual, franchise, 
distributor, wholesaler, continuing and regular individual business, 
etc.
    Block 4: Additional Information. Provide any other information 
not appearing elsewhere on the form such as other parties to the 
transaction, and any other material facts that may be of value in 
considering license applications supported by this statement.
    Block 5: Assistance in Preparing Statement. Name all persons, 
other than employees of the ultimate consignee or purchaser, who 
assisted in the preparation of this form.
    Block 6: Ultimate Consignee. Enter the requested information and 
sign the statement in ink. (For a definition of ultimate consignee, 
see Sec. 748.5(e) of this part.)
    Block 7: Purchaser. This form must be signed in ink by the 
Purchaser, if the Purchaser is not the same as the Ultimate 
Consignee identified in Block 1. (For a definition of purchaser, see 
Sec. 748.5(c) of this part.)
    Block 8: Certification for U.S. Exporter. This Block must be 
completed to certify that no correction, addition, or alteration on 
this form was made subsequent to the signing by the Ultimate 
Consignee in Block 6 and Purchaser in Block 7.

Supplement No. 4 To Part 748--Authorities Administering Import 
Certificate/Delivery Verification (IC/DV) and End Use Certificate 
Systems in Foreign Countries

----------------------------------------------------------------------------------------------------------------
               Country                               IC/DV Authorities                    System administered   
----------------------------------------------------------------------------------------------------------------
Argentina...........................  Secretaria Ejecutiva de la Comision Nacional de  IC/DV.                   
                                       Control de Exportaciones Sensitivas y Material                           
                                       Belico Balcarce 362--ler. piso Capital                                   
                                       Federal--CP 1064 Buenos Aires Tel. 334-0738,                             
                                       Fax 331-1618.                                                            
Australia...........................  Director, Technology Transfer and Analysis,      IC/DV.                   
                                       Industry Policy and Operations Division,                                 
                                       Department of Defense, Russell Office,                                   
                                       Canberra, A.C.T. 2600.                                                   
Austria.............................  Bundesministerium fur Handel Gewerbe und         IC/DV.                   
                                       Industrie Landstr. Haupstr. 55-57, Vienna 1031.                          
Belgium.............................  Ministere Des Affaires Economiques Office        IC/DV.                   
                                       Central des Contingents et Licences 24-26 Rue                            
                                       De Mot, Bruxelles-1040.                                                  
Bulgaria............................  Ministry of Trade 12 Al. Batenberg 1000 Sofia..  IC/DV.                   
China, People's Republic of.........  Technology Import and Export Department MOFTEC   PRC End-User             
                                       No. 2 Dong Chang An Street Beijing, Telephone:  Certificate.             
                                       553031, Telex: 22478 MFERTCN.                                            
Czech Republic......................  Federal Ministry of Foreign Trade Head of        IC/DV.                   
                                       Licensing Politickych Veznu 20 112 49 Praha 1.                           
Denmark.............................  Handelsministeriets Licenskontor Kampmannsgade   IC/DV.                   
                                       1, DK 1604, Copenhagen V.                                                
                                      IC's also issued by Danmarks Nationalbank        DV.                      
                                       Holmens Kanal 17, Copenhagen K Custom-houses.                            
Finland.............................  Hensingin Piiritullikamari, Kanavakatu 6 (or     IC/DV.                   
                                       P.O. Box 168) 00161 Helsinki.                                            
France..............................  Ministere de l'Economie et des Finances          IC/DV.                   
                                       Direction Generale des Douanes et Droita                                 
                                       Indirects Division des Affaires Juridiques et                            
                                       Contentieuses 8, Rue de la Tour des Dames,                               
                                       Bureau D/3, 75436, Paris Codex 09.                                       
Germany.............................  Bundesamt fur gewerbliche Wirtschaft             IC/DV.                   
                                       Frankfurter Strasse 29-31 65760 Eschborn.                                
Greece..............................  Banque de Greece, Direction des Transactions     IC/DV.                   
                                       Commerciales avec l'Etranger Athens.                                     
Hong Kong...........................  Trade Department, Ocean Centre, Canton Road,     IC/DV.                   
                                       Tsimshatsui, Kowloon,.                                                   
Hungary.............................  Ministry of International Economic Relations     IC/DV.                   
                                       Export Control Office 1054 Budapest P.O. Box                             
                                       728 H-1365, Hold Str. 17.                                                
India...............................  Deputy Director General of Foreign Trade Udyog   Indian IC.               
                                       Bhawan, Maulana Azad Road New Delhi 11011.                               
                                                                                                                
  For small scale industries and entities, and those not elsewhere specified.                                   
                                                                                                                
                                      Directorate General of Technical Development,    Indian IC                
                                       Udyog Bhawan, Maulana Azad Road, New Delhi                               
                                       11011.                                                                   
                                                                                                                
  For the ``organized'' sector, except for computers and related equipment.                                     
                                                                                                                
                                      Defense Research and Development Organization    Indian IC.               
                                       Room No. 224, ``B'' Wing Sena Bhawan, New                                
                                       Delhi 110011.                                                            
                                                                                                                
  For Defense organizations.                                                                                    
                                                                                                                
                                      Department of Electronics, Lok Nayak Bhawan,     Indian IC.               
                                       New Delhi 110003.                                                        
                                                                                                                
  For computers and related electronic items.                                                                   
                                                                                                                
                                      Assistant Director, Embassy of India, Commerce   Indian IC.               
                                       Wing, 2536 Massachusetts Ave. NW, Washington                             
                                       D.C. 20008--.                                                            
                                                                                                                
  For any of the above.                                                                                         
                                                                                                                
Ireland, Republic of................  Department of Industry, Trade, Commerce and      IC/DV.                   
                                       Tourism, Frederick House, South Frederick                                
                                       Street, Dublin 2.                                                        
Italy...............................  Ministero del Commercio con l'Estero Direzione   IC/DV.                   
                                       Generale delle Importazioni e delle                                      
                                       Esportazioni, Div. III, Rome Dogana Italiana                             
                                       (of the town import where takes place).                                  

[[Page 12827]]
                                                                                                                
Japan...............................  Ministered of International Trade and Industry   IC/DV.                   
                                       in: Fukuoka, Hiroshima, Kanmon (Kitakyushu-                              
                                       shi), Kobe, Nagoya, Osaka, Sapporo, Sendai,                              
                                       Shikoku (Takamatsu-shi), Shimizu, Tokyo, and                             
                                       Yokohama Japanese Customs Offices.                                       
Korea, Republic of..................  Trade Administration Division Trade Bureau       IC.                      
                                       Ministry of Trade and Industry Jungang-Dong,                             
                                       Kyonggi-Do, Building 3 Kwachon.                                          
                                      Republic of Korea Customs House................  DV.                      
Liechtenstein.......................  Swiss Federal Office for Foreign Economic        IC/DV.                   
                                       Affairs, Import and Export Division                                      
                                       Zieglerstrasse 30, CH-3003 Bern.                                         
Luxembourg..........................  Office des Licences Avenue de la Liberte, 10...  IC/DV.                   
Netherlands.........................  Centrale Dienst voor In-en Uitvoer Engelse Kamp  IC/DV.                   
                                       2, Groningen.                                                            
New Zealand.........................  Comptroller for Customs P.O. Box 2218,           IC/DV.                   
                                       Wellington.                                                              
Norway..............................  Handelsdepartmentet Direktoratet for Eksport-og- IC/DV.                   
                                       Importregulering Fr. Nansens plass 5, Oslo.                              
Pakistan............................  Chief Controller of Imports and Exports 5,       IC.                      
                                       Civic Center Islamabad.                                                  
                                      Joint Science Advisor, Ministry of Science and   DV.                      
                                       Technology, Secretariat Block `S', Islamabad.                            
Poland..............................  Ministry of Foreign Economic Relations           IC/DV.                   
                                       Department of Commodities and Services Plac                              
                                       Trzech Krzyzy 5, Room 358 00-507 Warsaw.                                 
Portugal............................  Reparticao do Comercio Externo Direccao-Geral    IC/DV.                   
                                       do Comercio Secretaria de Estado do Comercio                             
                                       Ministerio da Economia, Lisbon.                                          
Romania.............................  National Agency for Control of Strategic         IC/DV.                   
                                       Exports and Prohibition of Chemical Weapons,                             
                                       13, Calea 13 Septembrie Casa (or P.O. Box 5-                             
                                       10) Republicii, Gate A 1, Bucharest, Sector 5,                           
                                       Phone: 401-311-2083, Fax: 401-311-1265.                                  
Singapore...........................  Controller of Imports and Exports, Trade         IC/DV.                   
                                       Development Board World Trade Centre, 1                                  
                                       Maritime Square, Telok Blangah Road,.                                    
Slovakia............................  Ministry of Foreign Affairs Licensing-           IC.                      
                                       Registration Department Spitalska 8, 813 15                              
                                       Bratislava.                                                              
Spain...............................  Secretary of State for Commerce Paseo la         IC/DV.                   
                                       Cistellana 162, Madrid 28046.                                            
Sweden..............................  The Association of Swedish Chambers of Commerce  IC/DV.                   
                                       & Industry P.O. Box 16050, S-103 22 Stockholm                            
                                       Office: Vastra Tradgardsgatan 9.                                         
Switzerland.........................  Swiss Federal Office for Foreign Economic        IC/DV.                   
                                       Affairs, Import and Export Division,                                     
                                       Zieglerstrasse 30 CH-3003 Bern.                                          
Taiwan..............................  Board of Foreign Trade Ministry of Economic      IC/DV.                   
                                       Affairs 1 Hu-Kou Street, Taipei.                                         
                                      Science-based Industrial Park Administration                              
                                       No. 2 Hsin Ann Road, Hsinchu.                                            
                                      Export Processing Zone Administration 600                                 
                                       Chiachang Road Nantz, Kaohsiung.                                         
Turkey..............................  Ministry of Commerce, Department of Foreign      IC.                      
                                       Commerce, Ankara.                                                        
                                      Head Customs Office at the point of entry......  DV.                      
United Kingdom......................  Department of Trade and Industry Export          IC.                      
                                       Licensing Branch Millbank Tower Millbank                                 
                                       London, SW1P 4QU.                                                        
                                      H.M. Customs and Excise, King's Beam House,      DV                       
                                       Mark Lane London, E.C. 3.                                                
----------------------------------------------------------------------------------------------------------------



Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery 
Verification Procedure

    The United States participates in an Import Certificate/Delivery 
Verification procedure. Under this procedure, U.S. importers are 
sometimes required to provide their foreign suppliers with an U.S. 
International Import Certificate that is validated by the U.S. 
Government. This certificate tells the government of the exporter's 
country that the items covered by the certificate will be imported 
into the U.S. Economy and will not be reexported except as 
authorized by U.S. export control regulations. In addition, in some 
cases, the exporter's government may require a delivery 
verification. Under this procedure, the U.S. Customs Service 
validates a certificate confirming that the items have entered the 
U.S. economy. The U.S. importer must return this certificate to the 
foreign exporter.
    This supplement establishes the procedures and requirements of 
BXA with respect to both of these programs. Paragraph (a) of this 
Supplement contains the requirements and procedures of the U.S. 
International Import Certificate procedure. Paragraph (b) of this 
Supplement contains the requirements and procedures of the Delivery 
Verification procedure.
    (a) U.S. International Import Certificates. If you are a U.S. 
importer, a foreign supplier may request you to obtain a U.S. import 
certificate. The reason for this request is that the exporter's 
government requires a U.S. import certificate as a condition to 
issuing an export license. To obtain such a certificate you will 
have to fill in and execute the U.S. International Import 
Certificate form (Form BXA-645P/ATF-4522/DSP-53) and submit it to 
the U.S. government agency that has jurisdiction over the items you 
are importing. In doing so, you will be making a representation to 
the United States Government that you will import the items 
described in the certificate into the United States or if not so 
imported, you will not divert, transship or reexport them to another 
destination with the explicit approval of the U.S. government agency 
that has jurisdiction over those items. (Representations that items 
will be entered into the U.S. do not preclude the temporary 
unloading of items in a foreign trade zone for subsequent entry into 
the economy of the U.S.) If the items described in the certificate 
are subject to U.S. Department of Commerce jurisdiction, the 
Department will validate the certificate and return it to you. You 
may then send the certificate to your foreign supplier. In this way 
the government of the exporting country is assured that the items 
will become subject to the export control laws of the United States.
    (1) Items for which the U.S. Department of Commerce issues U.S. 
International Import Certificates and forms to use. The Department 
of Commerce issues U.S. International Import Certificates for the 
following types of items.
    (i) Items controlled for National Security reasons. Items under 
the export licensing jurisdiction of BXA that are identified as 
controlled for national security reasons on the Commerce Control 
List (Supplement No. 1 to part 774 of the EAR). You will need to 
submit in triplicate a completed Form BXA-645P/ATF-4522/DSP-53;
    (ii) Nuclear equipment and materials. Items subject to the 
export licensing jurisdiction of the Nuclear Regulatory Commission 
for nuclear equipment and materials. (see 10 CFR part 110). You will 
need to submit in quadruplicate a completed Form BXA-645P/ATF-4522/
DSP-53; and
    (iii) Munitions Items. Items listed on the U.S. Munitions List 
(see 22 CFR part 121) that do not appear on the more limited U.S.

[[Page 12828]]
Munitions Import List (27 CFR 47.21). You will need to submit in 
triplicate a completed Form BXA-645P. For triangular transactions 
(See paragraph (a)(5) of this Supplement) involving items on the 
U.S. Munitions List, you must contact the Department of State, 
Office of Defense Trade Controls and use Form BXA-645P/ATF-4522/DSP-
53. You should contact the Treasury Department, Bureau of Alcohol, 
Tobacco and Firearms for items appearing on the U.S. Munitions 
Import List. You will need to use Form ATF-4522.
    (2) Where to submit forms. U.S. International Import 
Certificates and requests to amend certificates may be presented for 
validation either in person or by mail at the following locations.
    (i) By mail to the Bureau of Export Administration, P.O. Box 
273, Washington D.C. 20044, Attn: Import Certificate Request; or
    (ii) In person or by mail at one of the following Department of 
Commerce U.S. and Foreign Commercial Service District Offices:
Boston, MA
Buffalo, NY
Chicago, IL
Cincinnati, OH
Cleveland, OH
Dallas, TX
Detroit, MI
Houston, TX
Kansas City, MO
Los Angeles, CA
Miami, FL
New Orleans, LO
New York, NY
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
St. Louis, MO
San Francisco, CA
Savannah, GA
Seattle, WA
Trenton, NJ

    (3) U.S. International Import Certificate validity periods. The 
U.S. International Import Certificate must be submitted to the 
foreign government within six months from the date of certification 
by the U.S. Department of Commerce. The expiration of this six-month 
period in no way affects the responsibility of the importer to 
fulfill the commitments made in obtaining the certificate. If the 
certificate is not presented to the government of the exporting 
country before the expiration of its validity period, the exporter 
must apply for a new certificate. The original unused U.S. 
International Import Certificate must be returned to BXA at the 
address specified in paragraph (a)(2)(i) of this supplement.
    (4) Statements on the certificate or amendments are 
representations to the U.S. Government which continue in effect.
    (i) All statements and representations made in a U.S. 
International Import Certificate or an amendment thereto, will be 
deemed to be continuing in nature until the transaction described in 
the certificate is completed and the items are delivered into the 
economy of the importing country.
    (ii) Any change of fact or intention in regard to the 
transaction described in the certificate shall be promptly disclosed 
to BXA by the U.S. importer by presentation of an amended 
certificate. The amended certificate must describe all of the 
changes and be accompanied by the original certificate bearing the 
certification of BXA. If the original certificate has been 
transferred to the foreign exporter, you must, where possible, 
attempt to obtain the original certificate prior to applying for an 
amendment. If the original certificate is unobtainable because the 
foreign exporter has submitted it to the appropriate foreign 
government, or for any other reason, then you must submit a written 
statement with your amendment giving the reasons for your failure to 
submit the original certificate.
    (5) Certificates for Triangular transaction (items will not 
enter the U.S. or applicant is not sure that they will enter the 
United States).
    (i) In accordance with international practice, BXA will, upon 
request, stamp the certificate with a triangular symbol as 
notification to the government of the exporting country that the 
U.S. importer is uncertain whether the items will be imported into 
the U. S. or knows that the items will not be imported into the 
U.S., but that, in any case, the items will not be delivered to any 
other destination except in accordance with the EAR.
    (ii) The triangular symbol on a certificate U.S. International 
Import Certificate is not, in and of itself, an approval by BXA to 
transfer or sell items to a foreign consignee. Note that a 
triangular Certificate will not be issued covering foreign excess 
property sold abroad by the U.S. Department of Defense.
    (6) Approval to export items to a foreign consignee prior to 
delivery under a U.S. International Import Certificate. The written 
approval of BXA is required before items covered by a U.S. 
International Import Certificate (whether or not bearing a 
triangular symbol) may be shipped to a destination other than the 
U.S. or Canada or sold to a foreign purchaser, and before title to 
or possession of such items may be transferred to a foreign 
transferee. This requirement does not apply after the items have 
been delivered in accordance with the undertaking set forth in the 
Certificate or if at the time of such shipment, sale, passage of 
possession or passage of title, a License Exception or a NLR 
provision of the EAR would authorize the transaction.
    (i) If prior approval is required, a letter requesting 
authorization to release the shipment shall be submitted to BXA at 
the address listed in paragraph (a)(2)(i) of this supplement.
    (ii) The letter must contain the certificate number; date 
issued; location of the issuing office; names, addresses, and 
identities of all parties to the complete transaction; and the 
quantity, dollar value, and description of the items. The letter 
must be accompanied by the U.S. International Import Certificate, 
and all other documentation required by the EAR for the item and 
country of ultimate destination, as identified in part 748 of the 
EAR. If requirements stated in part 748 of the EAR do not apply to 
your transaction, you must identify the intended end-use of the 
items in your letter.
    (iii) Where the letter request is approved and is supported by a 
foreign import certificate, no further approval from BXA is required 
for the purchaser or transferee to resell or again transfer the 
items. However, where BXA approves a request that was not supported 
by a foreign import certificate, the person to whom approval is 
granted is required to inform the purchaser or transferee, in 
writing, that the items are to be shipped to the approved 
destination only and that no other disposition of the items is 
permitted without the approval of BXA.
    (iv) If the transaction is approved, a validated letter of 
approval will be sent to the U.S. purchaser for retention in his 
records. Where a DV or other official government confirmation of 
delivery is required, the letter will so indicate.
    (v) If the items covered by a certificate have been imported 
into a destination other than the U.S. and the foreign exporter of 
the items requests a Delivery Verification, the person who obtained 
the certificate must obtain a DV from the person to whom the items 
were delivered in the actual importing country. (If a DV is 
unobtainable, other official government confirmation of delivery 
must be obtained.) The DV or other official government confirmation 
of delivery must be submitted to BXA together with an explanatory 
letter giving the U.S. International Import Certificate number, date 
issued, and location of issuing office. BXA will then issue Form 
ITA-6008, Delivery Compliance Notice, in two copies, the original of 
which must be forwarded to the country of origin in order to serve 
as evidence to the exporting country that the requirements of the 
U.S. Government have been satisfied with respect to delivery of the 
items.
    (vi) Delivery, sale, or transfer of items to another U.S. 
purchaser.
    (A) Items covered by a U.S. International Import Certificate may 
not be sold, and title to or possession of such items may not be 
transferred, to another U.S. purchaser or transferee before the 
items are delivered to the U.S. (or to an approved foreign 
destination, as provided by paragraph (a)(5) of this Supplement), 
except in accordance with the provisions described in paragraph 
(a)(6) of this Supplement. The provisions of this paragraph do not 
apply after the items have been delivered in accordance with the 
undertaking set forth in the certificate.
    (B) Resale or transfer to another U.S. purchaser or transferee 
requires the prior approval of BXA only in cases where the buyer or 
transferee is listed in Supplement No. 1 to part 766 of the EAR. 
However, you, as the person who obtained the certificate are 
required to notify BXA of any change in facts or intentions relating 
to the transaction, and in all cases you will be held responsible 
for the delivery of the items in accordance with the EAR. You are 
required in all cases to secure, prior to sale or transfer, and to 
retain in your files in accordance with the recordkeeping provisions 
contained in part 762 of the EAR, written acceptance by the 
purchaser or transferee of:
    (1) All obligations undertaken by, and imposed under the EAR, 
upon the holder of the certificate; and

[[Page 12829]]

    (2) An undertaking that all subsequent sales or transfers will 
be made subject to the same conditions.
    (iii) The responsibility of the certificate holder for obtaining 
a DV also applies to those cases where the items are resold to a 
U.S. purchaser (See paragraph (b)(1) of this Supplement.
    (vii) Reexport or transshipment of items after delivery to U.S. 
Items imported into the U.S. under the provisions of a U.S. 
International Import Certificate may not be reexported to any 
destination under the provisions of License Exception TUS (see 
Sec. 740.4(c) of the EAR). However, all other provisions of the EAR 
applicable to items of domestic origin shall apply to the reexport 
of items of foreign origin shipped to the U.S. under a U.S. 
International Import Certificate.
    (viii) Lost or destroyed U.S. International Import Certificates. 
If a U.S. International Import Certificate is lost or destroyed, a 
duplicate copy may be obtained by the person in the U.S. who 
executed the original U.S. International Import Certificate by 
submitting to any of the offices listed in paragraph (a)(2)(i) of 
this supplement new Form BXA-645P/ATF-4522/DSP-53 in the same way as 
an original request, except that the forms shall be accompanied by a 
letter detailing the circumstances under which the original 
certificate was lost or destroyed and certifying:
    (A) That the original U.S. International Import Certificate No. 
______, dated ______, issued to (name and address of U.S. importer) 
for import from (foreign exporter's name and address) has been lost 
or destroyed; and
    (B) That if the original U.S. International Import Certificate 
is found, the applicant agrees to return the original or duplicate 
of the certificate to the Bureau of Export Administration.
    (ix) Unused U.S. International Import Certificates. If the 
transaction will not be completed and the U.S. International Import 
Certificate will not be used, return the certificate for 
cancellation to BXA at the address listed in paragraph (a)(2)(i) of 
this supplement.
    (b) Delivery Verification Certificate. U.S. importers may be 
requested by their foreign suppliers to furnish them with a 
certified Form BXA-647P, Delivery Verification Certificate, covering 
items imported into the U.S. These requests are made by foreign 
governments to assure that strategic items shipped to the U.S. are 
not diverted from their intended destination. In these instances, 
the issuance of an export license by the foreign country is 
conditioned upon the subsequent receipt of a Delivery Verification 
Certificate from the U.S. importer. Accordingly, your compliance 
with your foreign exporter's request for a Delivery Verification is 
necessary to ensure your foreign exporter fulfills its government 
obligations and is able to participate in future transactions with 
you. Failure to comply may subject your exporter to penalties that 
may prevent future trade.
    (1) The responsibility of a person or firm executing a U.S. 
International Import Certificate for providing the foreign exporter 
with confirmation of delivery of the items includes instances where 
the items are resold or transferred to another U.S. person or firm 
prior to actual delivery to the U.S. or to an approved foreign 
destination. The person who executed the U.S. International Import 
Certificate shall secure in writing from the U.S. purchaser or 
transferee, and retain in your files in accordance with the 
recordkeeping provisions stated in part 762 of the EAR:
    (i) Acceptance of the obligation to provide the purchaser or 
transferee with either the Delivery Verification (or other official 
government confirmation of delivery if a Delivery Verification is 
unobtainable) or assurance that this document was submitted to BXA; 
and
    (ii) An undertaking that each succeeding U.S. transferee or 
purchaser will assume the same obligation or assurance. In each case 
the seller or transferor must transmit to the U.S. purchaser or 
transferee the U.S. International Import Certificate number covering 
the export from the foreign country and request that they pass it on 
to any other U.S. purchasers or transferees.
    (2) Completion and certification of Delivery Verification 
Certificates. If you are requested by your foreign exporter to 
provide a Delivery Verification, you must obtain Form BXA-647P from 
a U.S. customs office or one of the offices listed in paragraph 
(a)(2) of this supplement and complete all blocks (except those 
below the line titled ``To be completed by U.S. Customs Service'') 
on the form. The language used in the block titled ``Description of 
Goods'' must describe the items in the same terms as those shown on 
the applicable U.S. International Import Certificate. Upon 
completion Form BXA-647P must be presented, in duplicate, to a U.S. 
customs office. The U.S. customs office will certify Form BXA-647P 
only where the import is made under a warehouse or consumption 
entry.
    (3) Disposition of certified Delivery Verification Certificates. 
The importer must send the original certified Delivery Verification 
Certificate to the foreign exporter or otherwise dispose of it in 
accordance with the instructions of the exporting country. The 
duplicate copy will be retained by the U.S. customs office.
    (4)(i) Issuance of a U.S. Delivery Compliance Notice in lieu of 
a Delivery Verification Certificate. If you are requested to provide 
a Delivery Verification Certificate but do not wish to disclose the 
name of your customer to the foreign exporter (e.g., in the event 
that the items are resold or transferred to another person or firm 
before the items enter the U.S.), you may submit an originally 
completed Form BXA-647P together with an explanatory letter 
requesting a Delivery Compliance Notice, to BXA at the address 
listed in (a)(2)(i) of this supplement.
    (ii) BXA will provide you with a notice signifying that the 
items were imported into the U.S. and that a satisfactory DV has 
been submitted to BXA. You must then forward the original notice to 
your foreign exporter for submission to the foreign government. A 
copy of the notice should be retained in your files in accordance 
with the recordkeeping provisions stated in part 762 of the EAR.
    (5)(i) Lost or destroyed Delivery Verification Certificate. When 
a Delivery Verification Certificate is lost or destroyed, the U.S. 
importer must submit a letter to BXA at the address listed in 
paragraph (a)(2)(i) of this supplement certifying that:
    (A) The original Delivery Verification Certificate has been lost 
or destroyed;
    (B) The circumstances under which it was lost or destroyed;
    (C) The type of customs entry (warehouse or consumption), entry 
number, and date of entry; and
    (D) The number and date of the related U.S. International Import 
Certificate.
    (ii) BXA will, in applicable cases, notify the exporting 
government that a Delivery Verification Certificate been issued.
    (c) Penalties and sanctions for violations. The enforcement 
provisions of part 764 and Supplement No. 2 to part 736 of the EAR 
apply to transactions involving imports into the U.S. covered by 
this supplement and to both foreign and U.S. parties involved in a 
violation of this supplement. Any provisions of part 764 and 
Supplement No. 2 to part 736 of the EAR which, by their terms, 
relate to ``exports'' or ``exports from the U.S.'' are also deemed 
to apply and extend to imports into the U.S., applications for U.S. 
International Import Certificates (Forms BXA-645P presented to U.S. 
Department of Commerce for certification), U.S. International Import 
Certificates, and Delivery Verification Certificates, described in 
this supplement. (Applications the documents described in this 
supplement, are included within the definition of export control 
documents provided in part 772 of the EAR.) Refer to Sec. 764.3 of 
the EAR for more information.

PART 750--APPLICATION PROCESSING, ISSUANCE OR AND DENIAL

Sec.
750.1  Scope.
750.2  Processing of Classification Requests and Advisory Opinions.
750.3  Review of license applications by BXA and other government 
agencies and departments.
750.4  Procedures for processing license applications.
750.5  Status on pending applications and other requests.
750.6  Denial of license applications.
750.7  Issuance of licenses.
750.8  Revocation or suspension of licenses.
750.9  Duplicate licenses.
750.10  Transfer of licenses for exports.
750.11  Shipping tolerances.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995); E.O. 12981, 60 FR 62981.


Sec. 750.1  Scope.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C. This part describes the Bureau of Export 
Administration's (BXA) process for reviewing your application for a 
license, including processing times, denials, revocations, issuance, 
duplicates, transfers, and

[[Page 12830]]
shipping tolerances on approved licenses. The processing times for 
Classification and Advisory Opinion requests are also provided along 
with directions on obtaining status on your pending application.


Sec. 750.2  Processing of Classification Requests and Advisory 
Opinions.

    (a) Classification requests. All classification requests submitted 
in accordance with procedures described in Sec. 748.3 (a) and (b) of 
the EAR will be answered within 14 calendar days after receipt. All 
responses will inform the person of the proper classification (e.g., 
whether or not the item is subject to the Export Administration 
Regulations (EAR) and, if applicable, the appropriate Export Control 
Classification Number [ECCN]).
    (b) Advisory Opinion requests. All advisory opinions submitted in 
accordance with procedures described in Sec. 748.3(a) and (c) of the 
EAR will be answered within 30 calendar days after receipt.


Sec. 750.3  Review of license applications by BXA and other government 
agencies and departments.

    (a) Review by BXA. In reviewing specific license applications, BXA 
will conduct a complete analysis of the license application along with 
all documentation submitted in support of the application. In addition 
to reviewing the item and end-use, BXA will consider the reliability of 
each party to the transaction and review any available intelligence 
information. To the maximum extent possible, BXA will make licensing 
decisions without referral of license applications to other agencies, 
however, BXA may consult with other U.S. departments and agencies 
regarding any license application.
    (b) Review by other departments or agencies. (1) The Departments of 
Defense, Energy, State, and the Arms Control and Disarmament Agency 
(ACDA) have the authority to review any license application submitted 
under the EAR. In addition, BXA may, where appropriate, refer license 
applications to other U.S. government departments or agencies. These 
agencies and departments will be referred to as ``agencies'' for the 
purposes of this part. Though these agencies have the authority to 
review any license application, they may determine that they do not 
need to review certain types of license applications. In these 
instances, the agency will provide BXA with a Delegation of Authority 
to process those license applications without review by that particular 
agency.
    (2) The Departments of Defense, Energy, State, and ACDA are 
generally concerned with license applications involving items 
controlled for national security, missile technology, nuclear 
nonproliferation, and chemical and biological weapons proliferation 
reasons or destined for countries and/or end uses of concern. In 
particular, these agencies are concerned with reviewing license 
applications as follows:
    (i) The Department of Defense is concerned primarily with items 
controlled for national security and regional stability reasons;
    (ii) The Department of Energy is concerned primarily with items 
controlled for nuclear nonproliferation reasons;
    (iii) The Department of State is concerned primarily with items 
controlled for regional stability, anti-terrorism, crime control 
reasons, and sanctions; and
    (iv) ACDA is concerned primarily with items controlled for national 
security, nuclear nonproliferation, regional stability, and anti-
terrorism reasons.


Sec. 750.4  Procedures for processing license applications.

    (a) Overview. (1) All license applications will be resolved or 
referred to the President no later than 90 calendar days from the date 
of BXA's registration of the license application. Processing times for 
the purposes of this section are defined in calendar days. The 
procedures and time limits described in this part apply to all license 
applications registered on or after February 4, 1996. The procedures 
and time limits in effect prior to December 6, 1995 will apply to 
license applications registered prior to February 4, 1996.
    (2) Properly completed license applications will be registered 
promptly upon receipt by BXA. Registration is defined as the point at 
which the application is entered into BXA's electronic license 
processing system. If your application contains deficiencies that 
prevent BXA from registering your application, BXA will attempt to 
contact you to correct the deficiencies, however, if BXA is unable to 
contact you, the license application will be returned without being 
registered. The specific deficiencies requiring return will be 
enumerated in a notice accompanying the returned license application. 
If a license application is registered, but BXA is unable to correct 
deficiencies crucial to processing the license application, it will be 
returned without action. The notice will identify the deficiencies and 
the action necessary to correct the deficiencies. If you decide to 
resubmit the license application, it will be treated as a new license 
application when calculating license processing time frames.
    (b) Actions not included in processing time calculations. The 
following actions will not be counted in the time period calculations 
described in paragraph (a)(1) of this section for the processing of 
license applications:
    (1) Agreement by the applicant to the delay. BXA may request 
applicants provide additional information in support of their license 
application, respond to questions arising during processing, or accept 
proposed conditions or riders on their license application. If BXA has 
provided the applicant with an intent to deny letter described in 
Sec. 750.6 of this part, processing times may be suspended in order to 
negotiate modifications to a license application and obtain agreement 
to such modifications from the foreign parties to the license 
application.
    (2) Pre-license checks. If a pre-license check, to establish the 
identity and reliability of the recipient of the controlled items, is 
conducted through government channels, provided that:
    (i) The need for such a pre-license check is established by the 
Secretary, or by another agency, if the request for a pre-license check 
is made by such agency and the request is made in accordance with the 
following time frames;
    (A) The pre-license check is requested within 5 days of the 
determination that it is necessary; and
    (B) The analysis resulting from the pre-license check is completed 
within 5 days.
    (3) Government-to-Government assurances. Requests for government-
to-government assurances of suitable end-use of items approved for 
export or reexport when failure to obtain such assurances would result 
in rejection of the license application, provided that:
    (i) The request for such assurances is sent to the Secretary of 
State within five days of the determination that the assurances are 
required;
    (ii) The Secretary of State initiates the request of the relevant 
government within 10 days of receipt of the request for such 
assurances; and
    (iii) The license is issued within 5 days of the Secretary's 
receipt of the requested assurances.
    (4) Consultations. Consultation with other governments, if such 
consultation is provided for by a relevant bilateral

[[Page 12831]]
arrangement or multilateral regime as a precondition for approving a 
license.
    (5) Multilateral reviews. Multilateral review of a license 
application if such review is required by the relevant multilateral 
regime.
    (6) Congressional notification. Under Section 6(j) of the Export 
Administration Act, as amended (EAA), the Secretaries of Commerce and 
State are required to notify appropriate Committees of the Congress 30 
days prior to issuing a license to any country designated by the 
Secretary of State as being terrorist supporting for any items that 
could make a significant contribution to the military potential of such 
countries, or could enhance the ability of such countries to support 
acts of international terrorism. Accordingly, the issuance of any 
license subject to this requirement will be delayed for 30 days.
    (i) Designated countries. The following countries have been 
designated by the Secretary of State as terrorist-supporting countries: 
Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (ii) Items subject to notification requirement. License 
applications involving the export or reexport of the following items to 
the military, police, intelligence or other sensitive end-users are 
subject to this notification requirement:
    (A) All items controlled for national security reasons, except 
digital computers with a Composite Theoretical Performance (CTP) less 
than 500 Mtops;
    (B) All items controlled for chemical and biological weapons 
proliferation reasons;
    (C) All items controlled for missile technology reasons;
    (D) All items controlled for nuclear nonproliferation reasons; and
    (E) All items controlled by the CCL where the entry heading 
identifies the items controlled as those contained in the International 
Munitions List.
    (iii) Additional notifications. The Secretaries of Commerce and 
State must also notify the appropriate Congressional committees 30 days 
before a license is issued for the export or reexport of any item 
controlled on the CCL to a designated country if the Secretary of State 
determines that the export or reexport ``could make a significant 
contribution to the military potential of such country, including its 
military logistics capability, or could enhance the ability of such 
country to support acts of international terrorism.''
    (c) Initial processing. Within 9 days of license application 
registration, BXA will, as appropriate:
    (1) Contact the applicant if additional information is required, if 
the license application is improperly completed, or required support 
documents are missing, to request additional or corrected information;
    (2) Assure the stated classification on the license application is 
correct;
    (3) Return the license application if a license is not required 
with a statement notifying the applicant that a license is not 
required;
    (4) Approve the license application or notify the applicant of the 
intent to deny the license application; or
    (5) Refer the license application electronically along with all 
necessary recommendations and analysis concurrently to all agencies 
unless the application is subject to a Delegation of Authority. Any 
relevant information not contained in the electronic file will be 
simultaneously forwarded in paper copy.
    (d) Review by other agencies and/or interagency groups.
    (1) Within 10 days of receipt of a referral the reviewing agency 
must advise BXA of any information not contained in the referral as 
described in paragraph (c)(5) of this section. BXA will promptly 
request such information from the applicant. The time that elapses 
between the date the information is requested by the reviewing agency 
and the date the information is received by the reviewing agency will 
not be counted in processing time frames.
    (2) Within 30 days of receipt of the initial referral, the 
reviewing agency will provide BXA with a recommendation either to 
approve (with or without conditions or riders) or deny the license 
application. As appropriate, such a recommendation may be made with the 
benefit of consultation and/or discussions in interagency groups 
established to provide expertise and coordinate interagency 
consultation. These interagency groups consist of:
    (i) The Missile Technology Export Control Group (MTEC). The MTEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for missile technology reasons. The MTEC 
also reviews license applications involving items not controlled for 
missile technology (MT) reasons, but destined for a country and/or end-
use/end-user of MT concern.
    (ii) The SubGroup on Nuclear Export Coordination (SNEC). The SNEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for nuclear nonproliferation reasons. The 
SNEC also reviews license applications involving items not controlled 
for nuclear nonproliferation (NP) reasons, but destined for a country 
and/or end-use/end-user of NP concern.
    (iii) The Shield. The Shield, chaired by the Department of State, 
reviews license applications involving items controlled for chemical 
and biological weapons reasons. The Shield also reviews license 
applications involving items not controlled for chemical and biological 
weapons (CBW) reasons, but destined for a country and/or end-use/end-
user of CBW concern.
    (e) Recommendations by reviewing agencies. Reviewing agencies 
recommending denial of a license application must provide a statement 
of reasons, consistent with the provisions of the EAA or EAR, and cite 
both the statutory and the regulatory basis for the recommendation to 
deny. A reviewing agency that fails to provide a recommendation within 
30 days with a statement of reasons supported by the statutory and 
regulatory basis shall be deemed to have no objection to the final 
decision of BXA.
    (f) Interagency dispute resolution and escalation procedures--(1) 
Escalation to the Operating Committee (OC). (i) In any instance where 
the reviewing agencies are not in agreement on final disposition of a 
license application, it will be escalated to the OC for resolution. The 
Chair of the OC will consider the recommendations of the reviewing 
agencies and any information provided by the applicant in person during 
an open OC session. Each agency will be informed of the Chair's 
decision on the license application within 14 days after the deadline 
for receiving agency recommendations.
    (ii) If any agency disagrees with the OC Chair's decision, the 
agency may escalate the decision by appealing to the Chair of the 
Advisory Committee on Export Policy for resolution. If such a request 
for escalation is not made within 5 days of the decision of the OC 
Chair, the Chair's decision will be final.
    (2) Escalation to the Advisory Committee on Export Policy (ACEP). 
Requests for escalation to the ACEP must be in writing from an official 
appointed by the President with the advice and consent of the Senate, 
or a person properly acting in such capacity, and cite both the 
statutory and the regulatory basis for the appeal. The ACEP will review 
all relevant information and recommendations. The Chair of the ACEP 
will inform the reviewing agencies of the majority vote decision of the 
ACEP within 11 days from the date of receipt of the escalation request. 
Within 5 days of the decision, any dissenting agency may appeal in 
writing the ACEP's decision to the

[[Page 12832]]
Secretary of Commerce in the Secretary's capacity as the Chair of the 
Export Administration Review Board. The written request must be made by 
the head of the agency requesting escalation and cite both the 
statutory and the regulatory basis for the appeal. Within the same 
period of time, the Secretary may initiate a meeting on his or her own 
initiative to consider a license application. In the absence of a 
timely appeal, the decision of the ACEP will be final.
    (3) Escalation to the Export Administration Review Board (EARB). 
The EARB will review all relevant information and recommendations, and 
such other export control matters as may be appropriate. The Secretary 
of Commerce will inform the reviewing agencies of the majority vote 
decision of the EARB within 11 days from the date of receipt of the 
appeal. Within 5 days of the decision, any agency dissenting from the 
decision of the EARB may appeal the decision to the President. The 
appeal must be in writing from the head of the dissenting agency. In 
the absence of a timely appeal, the decision of the EARB will be final.


Sec. 750.5  Status of pending applications and other requests.

    (a) Information available. You may contact BXA for status of your 
pending Classification Request, Advisory Opinion, or license 
application. For Advisory Opinion requests, telephone (202) 482-4905 or 
send a fax to (202) 219-9179. For license applications and 
Classification requests, telephone BXA's System for Tracking Export 
License Applications (``STELA'') at (202) 482-2752. STELA is an 
automated voice response system, that upon request via any standard 
touch-tone telephone, will provide you with up to the minute status on 
any license application pending at BXA. Requests for status may be made 
only by the applicant or the applicant's agent.
    (b) STELA's hours. STELA is operational Monday through Friday from 
7:15am to 11:15pm and on Saturday from 8:00am to 4:00pm, Eastern Time. 
If you have any difficulty accessing STELA, contact during normal 
business hours, one of BXA's offices listed in Sec. 748.2(a) of the 
EAR.
    (c) Procedures to access information on STELA. Once you dial STELA 
you will be instructed to enter your Application Control Number using 
your push button telephone keys. After you enter the Application 
Control Number, STELA will provide you with the current status of your 
license application or Classification request.


Sec. 750.6  Denial of license applications.

    (a) Intent to deny notification. If BXA intends to deny your 
license application, BXA will notify you in writing within 5 days of 
the decision. The notification will include:
    (1) The intent to deny decision;
    (2) The statutory and regulatory basis for the denial;
    (3) To the extent consistent with the national security and foreign 
policy of the United States, the specific considerations that led to 
the decision to deny the license application;
    (4) What, if any, modifications or restrictions to the license 
application would allow BXA to reconsider the license application;
    (5) The name of the BXA representative in a position to discuss the 
issues with the applicant; and
    (6) The availability of appeal procedures.
    (b) Response to intent to deny notification. You will be allowed 20 
days from the date of the notification to respond to the decision 
before the license application is denied. If you respond to the 
notification, BXA will advise you if, as a result of your response, the 
decision to deny has been changed. Unless you are so advised by the 
45th day after the date of the notification, the denial will become 
final, without further notice. You will then have 45 days from the date 
of final denial to exercise the right to appeal under part 756 of the 
EAR.


Sec. 750.7  Issuance of licenses.

    (a) Scope. A license authorizes only a specific transaction, or 
series of transactions, as described in the license application and any 
supporting documents. A license application may be approved in whole or 
in part or further limited by conditions or other restrictions 
appearing on the license itself or in the EAR. When a license 
application is approved by the BXA, a license is issued as described in 
paragraph (b) of this section.
    (b) Issuance of a license. After a license application is approved, 
a computer generated license is issued by the Department of Commerce 
bearing the license number and a validation date. Where appropriate, 
the license will also show an expiration date. Where necessary, 
attachments to a license will also be validated with the Department of 
Commerce seal and the date of validation. Exporters must use the 
complete license number when preparing a Shipper's Export Declaration 
(SED) and other export control documents, and in communicating with the 
Department of Commerce concerning the license.
    (c) Changes to the license. The following non-material changes do 
not require submission of a ``Replacement'' license or any other 
notification to BXA. (If you wish to make any change not identified in 
this paragraph, you will need to submit a ``Replacement'' license in 
accordance with the instructions contained in Supplement No. 1 to part 
748 of the EAR, Block 11):
    (1) Decrease in unit price or total value;
    (2) Increase in price or quantity if permitted under the shipping 
tolerances in Sec. 750.11 of this part;
    (3) Increase in price that can be justified on the basis of changes 
in point of delivery, port of export, or as a result of transportation 
cost, drayage, port charges, warehousing, currency fluctuations, etc.;
    (4) Establishment of unit or total price in conformance with a 
``price statement'' on a license that permits price to be based on the 
market price at a specified date plus an exporter's mark-up, or like 
basis;
    (5) Change in intermediate consignee if the new intermediate 
consignee is located in the country of ultimate destination as shown on 
the license, except a change in, or addition of, an intermediate 
consignee involving a consolidated shipment;
    (6) Change in continuity of shipment by unloading from carrier at a 
country listed in Country Group B (see Supplement No. 1 to part 740 of 
the EAR) port not in the country of ultimate destination, without the 
designation of an intermediate consignee on the shipping documents and 
license, provided:
    (i) The purpose is to transfer the shipment to another vessel, 
barge, or vehicle, solely for onforwarding to the country of 
destination shown on the shipping documents and the license;
    (ii) The shipment is moving on a through bill of lading;
    (iii) The carrier is not registered in, owned or controlled by, or 
under charter or lease to a country in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR), or a national of any of these 
countries;
    (iv) The carrier retains custody of the shipment until it is 
delivered to the ultimate consignee; and
    (v) The original bill of lading or air waybill first issued at the 
port of export is delivered with the shipment to the ultimate 
consignee;
    (7) Change in address of purchaser or ultimate consignee if the new 
address is located within the same country shown on the license; or
    (8) Change in ECCN, unit of quantity, unit price, or wording of the 
item

[[Page 12833]]
description (where necessary only for the purpose of conforming to an 
official revision in the CCL). This does not cover an actual change in 
the item to be shipped, or an increase in the price or quantity.
    (d) Responsibility of the licensee. If a license is issued to you, 
you become the licensee. The licensee will be held accountable for use 
of the license, whether as a principal (exporting for your own account) 
or as an agent (including an agent acting for the account of a foreign 
principal who is not subject to the jurisdiction of the United States). 
You, as the licensee, assume responsibility for effecting the export or 
reexport, for proper use of the license, and for due performance of all 
of the license's terms and conditions. The obligations arising under 
the provisions of the EAA and the EAR are the same whether the license 
application is submitted and issued in writing or electronically.
    (e) Prohibited use of a license. No person convicted of a violation 
of any statute specified in section 11(h) of the EAA, at the discretion 
of the Secretary of Commerce, may apply for any license for a period up 
to 10 years from the date of the conviction. See Sec. 766.25 of the 
EAR.
    (f) Quantity of commodities authorized. Unlike software and 
technology, commodities will be approved with a quantity or dollar 
value limit. The ``Unit'' paragraph within each CCL commodity entry 
will list a specific ``Unit'' for those commodities controlled by that 
entry. Any license resulting from a license application to export or 
reexport commodities will be licensed in terms of the specified 
``Unit''. If a commodity is licensed in terms of ``$ value'', the unit 
of quantity commonly used in trade may also be shown on the license. 
Though this unit may be shown on the approved license, the quantity of 
commodities authorized is limited entirely by the total dollar value 
shown on the approved license.
    (g) License validity period. Licenses involving the export or 
reexport of items will generally have a 24-month validity period, 
unless a different validity period has been requested and specifically 
approved by BXA. Exceptions from the 24-month validity period include, 
license applications reviewed and approved as an ``emergency'' (See 
Sec. 748.5 (g) of the EAR), license applications for items controlled 
for short supply reasons, and Special Comprehensive Licenses.
    Emergency licenses will expire no later than the last day of the 
calendar month following the month in which the emergency license is 
issued. Licenses for items controlled for short supply reasons will be 
limited to a 12-month validity period. The expiration date will be 
clearly stated on the face of the license. If the expiration date falls 
on a legal holiday (Federal or State), the validity period is 
automatically extended to midnight of the first day of business 
following the expiration date. (See part 752 of the EAR for validity 
periods for Special Comprehensive Licenses.)
    (1) Extended validity period. Validity periods in excess of 24 
months generally will not be granted. BXA will consider granting a 
validity period exceeding 24 months when extenuating circumstances 
warrant such an extension, however, no changes will be approved related 
to any other particular on the license (e.g., parties to the 
transaction, countries of ultimate destination, etc.). For example, an 
extended validity period will generally be granted where the 
transaction is related to a multi-year project, when production lead 
time will not permit an export or reexport during the original validity 
period of the license, when an unforeseen emergency prevents shipment 
within the 24-month validity of the license, or for other similar 
circumstances. A continuing requirement to supply spare or replacement 
parts will not normally justify an extended validity period. Licenses 
issued in accordance with the emergency clearance provisions contained 
in Sec. 748.5(g) of the EAR will not be extended. See Sec. 752.9 of the 
EAR for information relating to the extension of a Special 
Comprehensive License.
    (2) Request for extension. (i) The applicant must submit a letter 
in writing to request an extension in the validity period of a 
previously approved license. The subject of the letter must be titled: 
``Request for Validity Period Extension'' and contain the following 
information:
    (A) The name, address, and telephone number of the requestor;
    (B) A copy of the original license, with the license number, 
validation date, and current expiration date legible; and
    (C) Justification for the extension;
    (ii) It is the responsibility of the applicant to ensure that all 
applicable support documents remain valid and are in the possession of 
the applicant. If the request for extension is approved, BXA will 
provide the applicant with a written response.
    (h) Specific types of licenses--(1) Licenses for temporary exports 
or reexports. If you have been granted a license for the temporary 
export or reexport of items and you decide not to return the items to 
the United States, you must submit a license application requesting 
authorization to dispose of the items. Except when the items are to be 
used on a temporary basis at a new destination (and returned to the 
United States after such use), you must ensure that your license 
application is accompanied by all documents that would be required if 
you had requested a license to export or reexport the same item 
directly to the new destination.
    (2) Intransit within the United States. If you have been issued a 
license authorizing an intransit shipment (that does not qualify for 
License Exception TUS) through the United States, your license will be 
valid only for the export of the intransit shipment wholly of foreign 
origin and for which a Transportation and Exportation customs entry or 
an Immediate Exportation customs entry is outstanding.
    (3) Intransit outside the United States. If you have been issued a 
license authorizing unlading or transit through a country listed in the 
General Prohibition Eight contained in Sec. 736.2(b)(8) of the EAR, and 
you did not know the identity of the intermediate consignee at the time 
of the original license application, you must notify BXA in writing 
once you have ascertained the identity of the intermediate consignee. 
Your notification must contain the original license number, and the 
complete name, address, and telephone number of the intermediate 
consignee. The written request must be submitted to BXA at the address 
listed in Sec. 748.2(c) of the EAR.
    (4) Replacement license. If you have been issued a ``replacement'' 
license (for changes to your original license that were not covered in 
paragraph (c) of this section), you must attach the ``replacement'' 
license to the original, and retain both.
    (i) Records. If you have been issued a license you must retain the 
license, and maintain complete records in accordance with part 762 of 
the EAR including any licenses (whether used or unused, valid or 
expired) and all supporting documents and shipping records.


Sec. 750.8  Revocation or suspension of licenses.

    (a) Revocation. All licenses for exports or reexports are subject 
to revision, suspension, or revocation, in whole or in part, without 
notice whenever it is known that the EAR have been violated or that a 
violation is about to occur. BXA's Office of Exporter Services may 
revoke any license in which a person who has been convicted of one of 
the statutes specified in section 11(h) of the EAA, at the

[[Page 12834]]
discretion of the Secretary of Commerce, has an interest in the license 
at the time of the conviction. It may be necessary for BXA to stop a 
shipment or an export or reexport transaction at any stage in the 
process (e.g., in order to prevent an unauthorized export or reexport). 
If a shipment is already en route, it may be further necessary for BXA 
to order the return or unloading of such shipment at any port of call 
in accordance with the provisions of the EAA.
    (b) Return of revoked or suspended licenses. If BXA revokes or 
suspends a license, the licensee shall return the license immediately 
upon notification that the license has been suspended or revoked. The 
license must be returned to BXA at the address listed in Sec. 748.2(c) 
of the EAR, Attn:'' Return of Revoked/Suspended License''. All 
applicable supporting documents and records of shipments must be 
retained by the licensee in accordance with the recordkeeping 
provisions of part 762 of the EAR. If the licensee fails to return a 
license immediately upon notification that it has been suspended or 
revoked, BXA may impose sanctions provided for in part 764 of the EAR.


Sec. 750.9  Duplicate licenses.

    (a) Lost, stolen or destroyed. If a license is lost, stolen or 
destroyed, you, as the licensee, may obtain a duplicate of the license 
by submitting a letter to the BXA at the address listed in 
Sec. 748.2(c) of the EAR, Attention: Duplicate License Request''. You 
must certify in your letter:
    (1) That the original license ([number] issued to [name and address 
of licensee]) has been lost, stolen or destroyed;
    (2) The circumstances under which it was lost, stolen or destroyed; 
and
    (3) If the original license is found, the licensee will return 
either the original or duplicate license to the BXA. Note that if 
shipment was made against the original license, those shipments must be 
counted against the duplicate license. If you are issued a duplicate 
license you must retain the duplicate license in accordance with the 
recordkeeping provisions of part 762 of the EAR.
    (b) Hong Kong Trade Department. BXA will automatically issue a 
duplicate license whenever the license lists a party in Hong Kong as 
the intermediate consignee, or when Hong Kong is identified as the 
country from which the reexport will take place. The duplicate license 
will be labeled ``Duplicate for Hong Kong Trade Department''. This 
duplicate must be forwarded to the reexporter or intermediate consignee 
for submission to the Hong Kong Trade Department. The original license 
must be retained on file by the licensee in accordance with the 
recordkeeping provisions contained in part 762 of the EAR.


Sec. 750.10  Transfers of licenses for exports.

    (a) Authorization. As the licensee, you may not transfer a license 
issued for the export of items from the United States to any other 
party, except with the prior written approval of BXA. BXA may authorize 
a transfer of a license for export to a transferee who is subject to 
the jurisdiction of the United States, is a principal party in 
interest, and will assume all powers and responsibilities under the 
license for the control of the shipment of the items out of the United 
States. BXA will approve only one transfer of the same license and only 
transfers of licenses to export items.
    (b) How to request the transfer of licenses--(1) Letter from 
licensee. You, as the licensee, must submit a letter in writing to 
request a transfer of a license or licenses. The letter must contain 
the following information:
    (i) The reasons for the requested transfer;
    (ii) Either a list of the outstanding license numbers or a 
statement that all outstanding licenses in the name of the licensee are 
to be transferred, and the total number of such outstanding licenses;
    (iii) A list of all license applications for export to be 
transferred that are pending with BXA, identifying the Application 
Control Number for each, or other information that will assist in 
identifying the pending license applications;
    (iv) Name and address of the person you intend to transfer the 
licenses and license applications to;
    (v) The facts necessitating transfer;
    (vi) A statement as to whether or not any consideration has been, 
or will be, paid for the transfer; and
    (vii) Identification by name of the legal document (certificate, 
agreement, etc.) or other authority by which the new firm name is 
legally established, the new corporation or firm created, or the assets 
transferred and showing the effective date of such document and the 
state where filed or recorded.
    (2) Information from transferee. The person to whom you wish to 
transfer your license(s) must provide you a signed letter, that must be 
submitted with your request, containing the following:
    (i) That the transferee is a principal party in interest in the 
transaction covered by the license, or is acting as agent for a 
principal party in interest;
    (ii) That the transferee is subject to the jurisdiction of the 
United States;
    (iii) That the transferee assumes all powers and responsibilities 
under the license for the control of the shipment of the items out of 
the United States;
    (iv) Whether any consideration has been, has not been, or will be 
paid for the transfer;
    (v) The name and address of the foreign principal in instances 
where the transferee will make the export as an agent on behalf of a 
foreign principal; and
    (vi) If the license is to be transferred to a subsidiary or firm, 
or if you transfer to the transferee all, or a substantial portion, of 
your assets or business, the transferee must certify that the legal 
authority changing the exporter imposes on the transferee the 
responsibility to accept and fulfill the obligations of the transferor 
under the transactions covered by the license; and
    (vii) The following certification:
    The undersigned hereby certifies that, if license number(s) 
____________ is (are) transferred in accordance with my (our) request, 
any and all documents evidencing the order covered by this (these) 
license(s) will be retained and made available upon request in 
compliance with the recordkeeping provisions contained in Part 762 of 
the Export Administration Regulations. The undersigned further 
certifies compliance with all requirements of the Export Administration 
Regulations regarding these licenses.
    (c) Notification of transfer and recordkeeping. Unless instructed 
otherwise by BXA, you must retain the license(s) pending notification 
by the BXA of the action taken. If the request is approved, you must 
forward the license(s) to the transferee and the validated letter 
received from BXA authorizing the transfer. If the transfer request is 
not approved, the license(s) must either be returned to BXA or used by 
you if you so choose and have retained the legal and operational 
capacity fully to meet the responsibilities imposed by the license(s). 
If your initial request is returned by BXA for additional information, 
after obtaining the necessary information you may resubmit your 
request.


Sec. 750.11  Shipping tolerances.

    (a) Applicability and use of shipping tolerances. Under some 
circumstances, you may use a license issued for the export of items 
from the United States to export more than the quantity or value shown 
on that license. This additional amount is called a shipping tolerance. 
This section tells you, as the licensee, when you may take advantage of 
a shipping tolerance and the amount

[[Page 12835]]
of shipping tolerance you are permitted to use.
    (1) If you have already shipped the full amount approved on your 
license, you may not use this shipping tolerance provision. No further 
shipment may be made under the license.
    (2) The amount of shipping tolerance you are permitted is based on 
the ``Unit'' specified for the item you want to export in the 
applicable ECCN on the CCL (see Supplement No. 1 to part 774 of the 
EAR). You must calculate shipping tolerance based on the applicable 
``Unit'' whether that be Number, Dollar Value, or Area, Weight, or 
other Measure. You may not use any other unit that may appear on your 
license.
    (b) Calculating shipping tolerances. There are three basic rules, 
one for items licensed by ``Dollar Value'', one for items licensed by 
``Number'', and another for items licensed by ``Area, Weight or other 
Measure''.
    (1) Items licensed by ``Dollar Value''. If the ``Unit'' paragraph 
in the ECCN applicable to your item reads ``Sec. value'' or ``in 
Sec. value'', there is no shipping tolerance. You may not ship more 
than the total dollar value stated on your license.
    (2) Items licensed by ``Number''. If the ``Unit'' paragraph in the 
ECCN applicable to your item reads ``Number'' or ``in Number'', there 
is no shipping tolerance with respect to the number of units. However, 
the value of all of your shipments under one license may exceed the 
total dollar value stated on that license by up to 25%.
    (3) Items licensed by ``Area, Weight or Measure''. If the ``Unit'' 
paragraph in the ECCN applicable to your item reads ``kilograms'' or 
``square meters'' or some other unit of area, weight or measure, your 
shipment may exceed the unshipped balance of the area, weight or other 
measure listed on your license by up to 10% and the total dollar value 
shown on your license by up to 25%, unless;
    (i) Your license stipulates a specific shipping tolerance; or
    (ii) Your item is controlled for short supply reasons and a smaller 
tolerance has been established. (See part 754 of the EAR).
    (c) Examples of shipping tolerances.--(1) A license authorizes the 
export of 100,000 kilograms of an item controlled by an ECCN where the 
``Unit'' is stated as ``kilograms'', the total cost of which is 
$1,000,000:
    (i) One shipment. If one shipment is made, the quantity that may be 
exported may not exceed 110,000 kg (10% tolerance on the unshipped 
Area, Weight, or Measure balance), and the total cost of that one 
shipment may not exceed $1,250,000:

$1,000,000..  (the total value shown on the license)                    
+250,000....  (25% of the total value shown on the license)             
-------------                                                           
$1,250,000..                                                            
                                                                        

    (ii) Two shipments. If the first shipment is for 40,000 kg (valued 
at $400,000), the second shipment may not exceed 66,000 kg (10% of the 
unshipped balance of 60,000 kg (6,000 kg) plus the unshipped balance), 
and the total cost of the second shipment shall not exceed $850,000:

$600,000....  (the value of the unshipped balance of 60,000 kg)         
+250,000....  (25% of the original total value shown on the license)    
-------------                                                           
$850,000....                                                            
                                                                        

    (iii) Three shipments. If the first shipment is for 40,000 kg 
(valued at $400,000) the second shipment is for 20,000 kg (valued at 
$200,000), the third shipment may not exceed 44,000 kg (10% of the 
unshipped balance of 40,000 kg (4,000 kg) plus the unshipped balance), 
and the total cost of the third shipment can not exceed $650,000:

$400,000....  (the value of the unshipped balance of 40,000 kg)         
+250,000....  (25% of the original total value on the license)          
-------------                                                           
$650,000....                                                            
                                                                        

    (2) A license authorizes the export of an item controlled by an 
ECCN where the ``Unit'' is stated as ``$ value'', the total cost of 
which is $5,000,000. There is no shipping tolerance on this license 
because the items are controlled by an ECCN where ``$ value'' is the 
stated ``Unit''.
    (3) A license authorizes the export of 10 pieces of equipment 
controlled by an ECCN where the ``Unit'' is stated as ``Number'', with 
a total value of $10,000,000 and the export of parts and accessories 
covered by that same entry valued at $1,000,000:
    (i)(A) If one shipment is made, the quantity of equipment that may 
be exported may not exceed 10 pieces of equipment because there is no 
shipping tolerance on the ``number'' of units. That one shipment of 
equipment may not exceed $12,500,000:

$10,000,000.  (the total value shown on the license)                    
+2,500,000..  (25% of the total value shown on the license)             
-------------                                                           
$12,500,000.                                                            
                                                                        

    (B) If the one shipment includes parts and accessories, those parts 
and accessories may not exceed $1,000,000 because there is no shipping 
tolerance on any commodity licensed in terms of dollar value.
    (ii)(A) If the first shipment is for 4 pieces of equipment valued 
at $4,000,000, the second shipment may not exceed 6 pieces of equipment 
(no tolerance on ``number'') valued at no more than $8,500,000:

$6,000,000..  (the value of the unshipped 6 pieces).                    
+2,500,000..  (25% of the original total value shown on the license).   
-------------                                                           
$8,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and 
accessories, the second shipment may not exceed $700,000 of parts and 
accessories because there is no shipping tolerance on any commodity 
licensed in terms of dollar value.
    (iii)(A) If the first shipment is for 4 pieces of equipment valued 
at $4,000,000 and the second shipment is for 3 pieces of equipment 
valued at $3,000,000, the third shipment may not exceed 3 pieces of 
equipment (no tolerance on ``number'') valued at no more than 
$5,500,000:

$3,000,000..  (the value of the unshipped 3 pieces).                    
+2,500,000..  (25% of the original value shown on the license),         
-------------                                                           
$5,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and 
accessories and the second shipment includes another $300,000, the 
third shipment may not exceed $400,000 because there is no shipping 
tolerance on commodities licensed in terms of dollar value.

PART 752--SPECIAL COMPREHENSIVE LICENSE

Sec.
752.1  Scope.
752.2  Eligible activities.
752.3  Eligible items.
752.4  Eligible countries.
752.5  Steps you must follow to apply for an SCL.
752.6  Reexports.
752.7  Direct shipment to customers.
752.8  SCL application review process.
752.9  Action on SCL applications.
752.10  Changes to the SCL.
752.11  Internal Control Programs.
752.12  Recordkeeping requirements.
752.13  Inspection of records.
752.14  System reviews.
752.15  Export clearance.
752.16  Administrative actions.
752.17  BXA mailing addresses.

[[Page 12836]]


Supplement No. 1 to Part 752: Instructions for Completing Form BXA-
748P, Multipurpose Application, for Requests for Special Comprehensive 
Licenses

Supplement No. 2 to Part 752: Instructions for Completing Form BXA-
748P-A, Item Annex

Supplement No. 3 to Part 752: Instructions for Completing Form BXA-752, 
Statement by Consignee in Support of Special Comprehensive License

Supplement No. 4 to Part 752: Instructions for Completing Form BXA-752-
A, Reexport Territories

Supplement No. 5 to Part 752: Instructions for Completing Form BXA-
748P-B End-User Appendix

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 752.1  Scope.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part describes the 
provisions of the Special Comprehensive License (SCL). You may apply 
for an SCL, when appropriate, in lieu of a license described in part 
748 of the EAR, or a License Exception described in part 740 of the 
EAR, for multiple exports and reexports of items subject to the EAR. 
The SCL provides authorization to make specified exports and reexports 
that are otherwise prohibited by General Prohibitions One, Two, and 
Three described in part 734 of the EAR. The existence of an SCL does 
not supersede an exporter's obligation to request a separate license as 
may be required by part 744 of the EAR. Because the Bureau of Export 
Administration (BXA) does not review each individual transaction 
authorized by an SCL, parties to the SCL must have the mechanisms in 
place to ensure that each export and reexport made under an SCL meets 
all the terms and conditions of the license and are in accordance with 
all applicable provisions of the EAR. It is through the design and 
effective implementation of an Internal Control Program (ICP) that the 
SCL holder and the SCL consignee (referred to as ``consignee'' for 
purposes of this part) assure that exports and reexports are not made 
contrary to the EAR.
    (2) Definitions. (i) SCL holder. As used in this part, ``SCL 
holder'' is that party approved on an SCL to perform activities 
approved under the SCL.
    (ii) SCL consignee. As used in this part, ``SCL consignee'' or 
``consignee'' means any party authorized to receive items under the SCL 
and named as a consignee on an approved Form BXA-752, Statement by 
Consignee in Support of Special Comprehensive License.
    (b) ICP requirement. To qualify for an SCL, you must develop an 
ICP. Section 752.11 of this part includes a general description of the 
elements of the ICP, and guidance on which elements your company must 
implement before making shipments under the SCL. The elements of the 
ICP your company will develop reflect the complexity of the activities 
authorized under the SCL, the countries and items involved, and the 
relationship between the SCL holder and the approved consignees. BXA 
may require you to include in your ICP any combination of elements, 
depending upon the nature of your SCL application. During your pre-
application consultation required by Sec. 752.5(a)(1), BXA will provide 
you guidance on which elements you must implement.


Sec. 752.2  Eligible activities.

    (a) Possible authorizations. Under the SCL, BXA may authorize you 
to perform any number of activities, which can be grouped under the 
general categories of ``service'', ``end-user'', ``distribution'' and 
``other'' activities. Examples of the general categories include:
    (1) Service activities. Exporting items subject to the EAR as spare 
and replacement parts for servicing or stocking.
    (2) End-user activities. Exporting and reexporting items subject to 
the EAR for use as capital equipment.
    (3) Distribution activities. Exporting and reexporting items 
subject to the EAR for the purpose of resale and reexport by 
consignees.
    (4) Other activities. Other activities not included in paragraphs 
(a)(1) through (a)(3) of this section may be authorized by BXA under 
the SCL on a case-by-case basis.
    (b) Prohibited activities. The general prohibitions described in 
Sec. 736.2(b)(4) through (10) of the EAR apply to all exports and 
reexports by, and conduct of, all parties approved on your SCL, unless 
you are specifically authorized under the SCL to perform such 
activities, or the particular activity otherwise qualifies for a 
License Exception described in part 740 of the EAR.


Sec. 752.3  Eligible items.

    (a) All items subject to the EAR, including items eligible for 
License Exceptions described in part 740 of the EAR, are eligible for 
export and reexport under the SCL, except:
    (1) Items controlled for missile technology reasons that are 
identified by the letters MT in the applicable ``Reason for Control'' 
paragraph on the Commerce Control List (CCL) (see Supplement No. 1 to 
part 774 of the EAR);
    (2) Items controlled by ECCNs 1C351, 1C352, 1C353, 1C354, 1E001, 
1E351, 1E391, 2B352, and 2E301 on the CCL that can be used in the 
production of biological weapons;
    (3) Items controlled by ECCNs 1C350, 1D390, 1E001, 1E350, 1E391, 
2B350, and 2B351 on the CCL that can be used in the production of 
chemical weapons precursors and chemical warfare agents, to 
destinations listed in Country Group D:3 (see Supplement No. 1 to part 
740 of the EAR);
    (4) Items controlled for short supply reasons that are identified 
by the letters ``SS'' in the applicable ``Reason for Control'' 
paragraph on the CCL;
    (5) Maritime (civil) nuclear propulsion systems or associated 
design or production software and technology identified in Sec. 744.5 
of the EAR;
    (6) Communications intercepting devices controlled by ECCN 5A980 on 
the CCL;
    (7) Items specifically identified as ineligible by BXA on your 
approved SCL; and
    (8) Additional items consistent with international commitments.
    (b) Items controlled for nuclear nonproliferation reasons that are 
identified by the letters NP in the applicable ``Reason for Control'' 
paragraph on the CCL may be authorized on a case-by-case basis provided 
controls are in place to screen for proscribed end-users or end-uses.


Sec. 752.4  Eligible countries.

    (a) General provisions. All countries are eligible under the SCL 
except:
    (1) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (2) Other countries that BXA may designate on a case-by-case basis 
as ineligible to receive items under the SCL.
    (b) Servicing prohibitions. Under the SCL, you may not service any 
item when you know that the item is owned or controlled by, or under 
the lease or charter of, entities in countries identified in paragraphs 
(a)(1) and (a)(2) of this section or any national of such countries.


Sec. 752.5  Steps you must follow to apply for an SCL.

    (a) Step One: Establish applicant reliability--(1) Pre-application 
consultation. To apply for an SCL, BXA must determine your reliability 
as a potential SCL holder. BXA usually does this through consultation 
with company officials and a review of the criteria identified in 
paragraph (a)(2) of this

[[Page 12837]]
section. To determine whether your company requires a consultation 
before you apply for an SCL, contact BXA at the address, phone, or 
telefacsimile numbers included in Sec. 752.17 of this part.
    (2) Criteria for determining eligibility. BXA will review the 
following criteria to help determine SCL holder eligibility:
    (i) Evidence of past licensing history and projected, continuous 
large volume exports;
    (ii) Reliability of all parties relative to their compliance with 
the EAR;
    (iii) Commitment of all parties of the necessary resources to 
implement and maintain an adequate ICP; and
    (iv) Evidence of all parties knowledge of all provisions of the 
EAR.
    (b) Step Two: Establish consignee reliability--(1) Requirements. 
You must make an initial determination of the reliability of all 
consignees that are listed on your application for an SCL, based upon 
the criteria described in paragraph (b)(2) of this section.
    (2) Determining reliability. The criteria that you should take into 
consideration include, but are not limited to, the following:
    (i) Criteria. (A) The proposed consignee has a satisfactory record 
established through BXA pre-license checks, or extensive experience as 
a consignee under any license issued by BXA;
    (B) The proposed consignee is a wholly-owned subsidiary or a 
controlled-in-fact affiliate of the applicant or of a consignee that is 
already approved on an SCL. See part 772 of the EAR for a definition of 
controlled-in-fact; or
    (C) You have evidence of an established, on-going business 
relationship with the proposed consignee.
    (ii) Exception. The provisions of paragraph (b)(2)(i) of this 
section do not preclude the authority of BXA to determine the 
reliability and eligibility of a proposed consignee. BXA may, based 
upon any negative information on the proposed consignees, deny a 
proposed consignee.
    (c) Step Three: Prepare your documentation. Complete Form BXA-748P, 
Multipurpose Application, Form BXA-748P-A, Item Appendix, Form BXA-
748P-B, End-User Appendix, an ICP, a comprehensive narrative statement, 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License, Form BXA-752-A, Reexport Territories, and all 
applicable certifications. Submit this documentation to BXA at one of 
the addresses included in Sec. 752.17 of this part.
    (1) Form BXA-748P, Multipurpose Application, and Form BXA-748P-A, 
Item Appendix. You must complete Form BXA-748P and Form 748P-A 
according to the instructions found in Supplement Nos. 1 and 2 of this 
part.
    (2) Form BXA-748P-B, End-User Appendix. You must identify end-users 
on Form BXA-748P-B if you are requesting approval to export or reexport 
items controlled for nuclear nonproliferation or chemical and 
biological control reasons.
    (3) ICP. You must provide a copy of your proposed ICP as required 
by Sec. 752.11 of this part. You must indicate whether any of the 
elements of the ICP will not be implemented and explain why these 
elements were deemed inapplicable. Existence of a properly constructed 
ICP will not relieve you of your responsibility to comply with 
requirements of all applicable regulations pertaining to your SCL;
    (4) Comprehensive narrative statement. Prepare a comprehensive 
narrative statement on your company letterhead that includes the 
following information:
    (i) An overview of the total business activity that will be 
performed by you and all other parties who will receive items under the 
authority of your SCL, including consignees, subcontractors, and 
vessels;
    (ii) A description of the nature and anticipated volume of regular 
and repetitive transactions proposed by consignees under the license;
    (iii) An explanation of the relationship between the parties to the 
application, such as affiliate, subsidiary, or parent, etc;
    (iv) A certification that you will implement, upon approval of the 
application by BXA, an ICP that incorporates all applicable elements 
listed in Sec. 752.11 of this part and any additional elements as 
required by BXA upon approval of the SCL; and
    (v) Information on whether proposed consignees are end-users or 
will reexport the items received under your SCL. You must describe the 
proposed consignee's activities completely to determine the appropriate 
ICP elements that you and your consignees must implement.
    (5) Form BXA-752, Statement of Consignee in Support of Special 
Comprehensive License. This Form is completed by each consignee. You 
must submit one completed, signed, original Form BXA-752 for each 
proposed consignee on your SCL application. See Supplement No. 3 to 
this part for instructions on completing Form BXA-752. Form BXA-752 is 
not required if the proposed consignee is both an end-user and a 
``foreign government agency'' as defined in part 772 of the EAR.
    (6) Form BXA-752-A, Reexport Territories. You must complete Form 
BXA-752-A, and attach it to the appropriate Form BXA-752, whenever 
Blocks 8B, 8C, 8E, and/or 8F are selected on Form BXA-752. See the 
instruction found in Supplement No. 3 to this part. Form BXA-752-A is 
not required if the proposed consignee is both an end-user and a 
foreign government agency (see part 772 of the EAR for a definition of 
foreign government agency).
    (7) Consignee certifications. Each consignee must provide certain 
certifications on company letterhead that is signed by the consignee. 
Attach certifications to the appropriate Form BXA-752. Each consignee 
must certify that:
    (i) They will implement, upon approval of the SCL by BXA, an ICP 
that incorporates all applicable elements listed in Sec. 752.11 of this 
part and any additional elements as required by BXA upon approval of 
your SCL. If certain elements of an ICP will not be included, state the 
reasons for that determination;
    (ii) They will comply with all provisions of the EAR, including the 
recordkeeping provisions of part 762 of the EAR, all applicable system 
review requirements of Sec. 752.14 of this part, and the reexport 
restrictions of Sec. 752.6 of this part; and
    (iii) They will make available for inspection, upon request by BXA, 
all records required by Sec. 752.12 of this part and part 762 of the 
EAR.
    (8) Additional certifications. (i) Temporary exports. Proposed 
consignees that plan to exhibit or demonstrate items in countries other 
than those in which they are located or are authorized under an SCL, an 
approved Form BXA-752, or a License Exception described in 
Sec. 740.4(a)(2)(iii) of the EAR may obtain permission to do so by 
including the following additional certification on company letterhead, 
and attaching it to Form BXA-752.

    I (We) request authorization to reexport temporarily, for 
exhibit or demonstration in countries eligible to receive items 
under the Special Comprehensive License. The items exported will be 
retained under my (our) ownership and control, and will be returned 
by me (us) to (name destination) promptly after their exhibit or 
demonstration abroad, and in no case later than one year after the 
date of reexport, unless other disposition is authorized in writing 
by the Bureau of Export Administration.

    (ii) Chemicals and chemical and biological equipment certification. 
If you are requesting authority to export chemicals or chemical and 
biological

[[Page 12838]]
equipment eligible for the SCL (items controlled by ECCNs 1C351, 1C352, 
1C353, 1C354, 1D390, 1E001, 1E350, 1E351, 1E391, 2B350, 2B351, 2B352, 
and 2E301 (see Supplement No. 1 to part 774 of the EAR), all consignees 
not located in country group A:3 (see Supplement No. 1 to part 740 of 
the EAR) must include the following certification on company 
letterhead:

    No chemicals or chemical or biological equipment received under 
this Special Comprehensive License will be transferred, resold, or 
reexported to a destination that requires a license, unless the new 
end-user has been approved by the Bureau of Export Administration, 
and in no case will the items be transferred, resold, or reexported 
to a party who is not the end-user.

    (iii) Nuclear proliferation certification. If you are requesting 
the export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec. 744.2 of the EAR, prior to 
submitting an SCL application, you must obtain a signed written 
statement from the proposed consignee(s) and end-users certifying the 
following:
    (A) The items to be exported or replicas thereof (``replicas'' 
refer to items produced abroad based on physical examination of the 
items originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 744.2 of the EAR; and
    (B) Written authorization will be obtained from BXA prior to 
transferring or reexporting the items, unless they are destined to 
Canada or would not require a license to the new country of 
destination.


Sec. 752.6  Reexports.

    (a) Authorized reexports. All consignees may reexport items without 
approval from BXA under any one of the following circumstances, unless 
otherwise specifically excluded by the provisions of the EAR or by a 
condition placed on your SCL.
    (1) Reexports that qualify for a License Exception authorized by 
part 740 of the EAR;
    (2) Reexports to destinations approved by BXA through validation of 
Form BXA-752 and/or Form BXA-752-A according to the terms stated on the 
Form BXA-752 or BXA-752-A; or
    (3) Reexports of items approved under an SCL to and among other 
consignees approved on the same SCL, provided that the items are 
eligible to the new destination in accordance with your approved SCL 
and Sec. 752.3 of this part.
    (b) Prohibitions. You are prohibited from the following activities 
without specific authorization from BXA:
    (1) Transferring, reselling, or reexporting under your SCL any 
chemicals or chemical and biological equipment (ECCNs identified with 
the letters CB in the applicable ``Reason for Control'' paragraph on 
the CCL (see Supplement No. 1 to part 774 of the EAR); and
    (2) Reexporting under your SCL items identified by the letters NP 
in the applicable ``Reason for Control'' paragraph on the CCL to 
destinations not listed in country group A:4 (see Supplement No. 1 to 
part 740).
    (c) Sourcing. Consignees who obtain U.S.-origin items abroad that 
are eligible for the SCL but that are subject to General Prohibitions 
One, Two, or Three (see part 734 of the EAR) may reexport them under 
the authority of your SCL, provided that they are reexported in 
accordance with the ICP required by Sec. 752.11 of this part, and any 
other applicable conditions or reexport restriction placed on your SCL 
by BXA. Either the SCL holder or the consignee through the SCL holder 
must submit the sourcing request for reexport of items on Form BXA-752.


Sec. 752.7  Direct shipment to customers.

    (a) General authorization. (1) Upon request by a consignee, an SCL 
holder or another consignee approved under the same SCL is authorized 
to deliver products directly to the requesting consignee's customer in 
either:
    (i) The requesting consignee's country; or
    (ii) Another country authorized to receive items under the 
requesting consignee's validated Form BXA-752-A.
    (2) The SCL holder or consignee making direct shipments authorized 
by this section must implement an ICP containing procedures governing 
such shipments.
    (3) SCL holders and consignees using the direct shipment provision 
may invoice the shipments directly to the requesting consignee's 
customers if copies of applicable invoices are maintained by both the 
shipping party and requesting consignee.
    (b) Procedures--(1) Exports by an SCL holder. The SCL holder may 
make a direct shipment by entering on the Shipper's Export Declaration 
the name and address of the customer as ultimate consignee and adding 
the notation ``by order of (name and address of consignee requesting 
the direct shipment)''. The notation must appear below the item 
description and must cite the SCL number followed by the three digit 
number of the consignee requesting the ``by order of'' shipment.
    (2) Reexports by a consignee. An approved consignee may make a 
direct reexport shipment to a customer of another approved consignee on 
the same SCL by showing on the commercial invoice the name and address 
of the customer as ultimate consignee and adding the notation ``by 
order of (name and address of consignee requesting the direct 
shipment).''


Sec. 752.8  SCL application review process.

    (a) Scope. Under an SCL, you are authorized to make multiple 
exports and reexports without review and approval of each individual 
transaction by BXA. To approve an SCL, BXA must be satisfied that the 
persons benefiting from this license will adhere to the conditions of 
the license and the EAR, and that approval of the application will not 
be detrimental to U.S. national security, nonproliferation, or foreign 
policy interests. In reviewing and approving a specific SCL request, 
BXA retains the right to limit the eligibility of items or to prohibit 
the export, reexport, or transfer of items under the SCL to specific 
firms, individuals, or countries.
    (b) Elements of review. To permit BXA to make such judgments, BXA 
will thoroughly analyze your past export and reexport transactions, 
inspect your export and reexport documents, and interview company 
officials of both the applicant and the consignees, as necessary. If 
BXA cannot verify that an appropriate ICP will be implemented upon 
approval of the SCL by BXA, or establish the reliability of the 
proposed parties to the application, it may deny the application, or 
modify it by eliminating certain consignees, items, countries, or 
activities.
    (c) Order requirement. You do not need to have in your possession 
an order from the proposed consignee at the time you apply for an SCL. 
However, evidence of a consignee's firm intention to place orders on a 
continuing basis is required.
    (d) Criteria for review. BXA will consider the following factors 
during the processing of your SCL application:
    (1) The specific nature of proposed end-use and end-uses;
    (2) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of nuclear or 
chemical or biological weapons, or missiles;
    (3) The types of assurances against design, development, 
production, stockpiling, or use of nuclear or chemical and biological 
weapons, or missiles that are included in the ICP;

[[Page 12839]]

    (4) The nonproliferation credentials of the importing country;
    (5) Corporate commitment of the resources necessary to implement 
and maintain an adequate ICP;
    (6) Evidence of past licensing history of the applicant and 
consignees, and projected, continuous large volume exports and/or 
reexports;
    (7) Reliability of all parties;
    (8) Information on all parties' compliance with the provisions of 
the EAR; and
    (9) All parties' knowledge of the EAR.
    (e) Application processing time-frames. Upon receiving an SCL 
application, BXA may review the application for up to two weeks to 
determine whether the SCL application is complete. When all 
documentation requirements are met, BXA will register the application. 
After the date of registration, the SCL application will be processed 
according to the procedures described in part 750 of the EAR.


Sec. 752.9  Action on SCL applications.

    (a) Approval of SCL applications.--(1) Validity period. SCLs are 
valid for four years from the date of approval.
    (2) Extension of validity period. You may request an extension of 
your valid SCL for an additional four years, but such requests must be 
received by BXA at least 30 days prior to the expiration of your SCL. 
If approved, Form BXA-748P and your letter requesting an extension will 
be validated and returned to you, extending the validity period for 
four years. No further extensions will be approved. A new application 
and support documentation is required at the end of that eight-year 
period. To apply for an extension, complete Form BXA-748P by completing 
Blocks 1, 2, 3 and 4. Mark ``Special Comprehensive License'' in Block 5 
and ``change'' in Block 6. Include your SCL number in Block 9, and 
indicate in Block 24 that you are requesting an extension to your SCL. 
Submit the completed Form BXA-748P and a statement on company 
letterhead indicating:
    (i) That you continue to abide by the provisions and conditions of 
the SCL; and
    (ii) Any changes to the original SCL that you are requesting (see 
Sec. 752.10 of this part for procedures on changed circumstances).
    (3) Support documentation. (i) General information. BXA will 
validate all approved support documentation with the Department of 
Commerce seal and date of validation.
    (ii) Form BXA-752, Form BXA-752-A, and Form BXA-748P-B. With the 
approved SCL, you will receive two validated copies of each approved 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License and, if applicable, Form BXA-752-A, Reexport 
Territories, and Form BXA-748P-B, End-User Appendix. You must retain 
one copy, and send one copy to the approved consignee. You must also 
attach a letter to each approved Form BXA-752 that includes each of the 
following elements:
    (A) A description of all recordkeeping requirements of the EAR 
applicable to the activities of the consignee;
    (B) Information on any applicable reexport restrictions on items 
received by the consignee under the SCL;
    (C) A description or copy of Sec. 752.16 of this part, listing 
administrative actions that may be taken for improper use of, or 
failure to comply with, the SCL and its required procedures;
    (D) A description of any special conditions or restrictions on the 
license applicable to the consignee, including approved lists of 
customers, countries, and items, when required;
    (E) A description of the elements of the SCL holder's ICP relevant 
to the SCL consignee;
    (F) A copy of the high risk customer profile contained in 
Sec. 752.11(c)(13)(i) of this part, when required;
    (G) A copy of the Denied Persons List currently in effect and 
notification that you will send the consignee regular updates to this 
list;
    (H) A notice that the consignee, in addition to other requirements, 
may not sell or otherwise dispose of any U.S. origin items when it 
knows that the items will be used in the activities prohibited by part 
744 of the EAR;
    (I) A requirement that the consignee acknowledge, in writing, 
receipt of this letter of transmittal outlining their obligations under 
the SCL, and certify that it will comply with all of the requirements, 
including implementation of an ICP if required by Sec. 752.11 of this 
part; and
    (J) A description of any special documentation requirements for 
consignees reexporting items to destinations having such requirements.
    (4) Special license conditions. BXA may place special conditions on 
your SCL, such as restrictions on eligible items, countries, end-uses, 
end-users or activities, or a requirement that certain sales or 
transfers of items under the SCL are subject to prior reporting to BXA. 
Such special conditions will be listed on your SCL or in a letter from 
BXA to the SCL holder. You must inform all relevant consignees of all 
license conditions prior to making any shipments under the SCL.
    (b) Denial of SCL applications. (1) If BXA intends to deny your SCL 
application, you will be notified and have opportunity to respond 
according to the procedures in Sec. 750.6 of the EAR.
    (2) BXA may at any time prohibit the sale or transfer of items 
under the SCL to specified individuals, companies, or countries. In 
such cases, the SCL holder must inform all consignees, and apply for a 
license described in part 748 of the EAR for subsequent transactions 
with such excluded parties.
    (3) If a consignee is not approved, Form BXA-752 will be returned 
to the SCL holder with a letter explaining the reason for denial.
    (4) If a particular destination is not approved, it will be removed 
from the appropriate Form BXA-752-A.
    (c) Return without action. BXA may determine to return the SCL 
application without action. Under such circumstances, the application 
and all related documents will be returned to you along with a letter 
stating the reason for return of the license application, explaining 
the deficiencies or additional information required for 
reconsideration, or advising you to apply for a license described in 
part 748 of the EAR. BXA may return your entire application or merely 
documents pertaining to a specific consignee request.


Sec. 752.10  Changes to the SCL.

    (a) General information. Certain changed circumstances regarding 
the SCL require prior approval from BXA before you make such changes, 
while others require only notification to BXA.
    (b) Changes requiring prior written approval from BXA. The 
following circumstances require prior written approval by BXA. Such 
requests must be submitted by the SCL holder, and changes are not 
effective until BXA approves the request. Upon approval of a change 
described in this paragraph, BXA will return to the SCL holder a 
validated copy of the request, indicating any changes that may have 
been made to your request, or any special conditions that may have been 
imposed.
    (1) Change of SCL holder company name. You must submit to BXA Form 
BXA-748P, Multipurpose Application, for any change in the name of the 
SCL holder company. Complete Blocks 1, 2, 3, and 4. Mark ``Special 
Comprehensive License'' in Block 5, and ``change'' in Block 8. In Block 
9, include your SCL number, and briefly indicate the purpose of the 
change. Enter the new information in the relevant Blocks, and complete 
Block 25. The SCL holder must send a copy of the validated Form BXA-
748P to each approved consignee, and advise them to attach the copy of

[[Page 12840]]
the validated form to their validated Form BXA-752.
    (2) Change in consignee name or address. You must submit to BXA 
Form BXA-752, Statement by Consignee in Support of Special 
Comprehensive License, when requesting a change in consignee name, or 
if the consignee moves out of the country. The consignee must complete 
Block 2, mark ``change an existing consignee'' in Block 3, and provide 
the new consignee information in Block 4. Also complete Blocks 10 and 
11.
    (3) Addition of new consignees. You must submit to BXA Form BXA-752 
for requests to add consignees to an SCL. Complete Form BXA-752 in 
accordance with the instructions in Supplement No. 1 to this part, 
marking ``Add a New Consignee'' in Block 3. Use Block 9 to describe the 
proposed consignee's role in the activities authorized by the SCL. Form 
BXA-752 is not required if the proposed new consignee is a foreign 
government agency and the items will not be reexported. If Form BXA-752 
is not required, the SCL holder may submit the request to add the 
foreign government agency to the SCL on company letterhead. You must 
include the proposed consignee's complete street address.
    (4) Change in reexport territories. You must submit to BXA Form 
BXA-752 and Form BXA-752-A to add a country to a consignee's approved 
reexport territory. Upon approval of change in reexport territory, BXA 
will return to the SCL holder two validated copies of Form BXA-752 and 
Form BXA-752-A, Reexport Territories, along with any special conditions 
that may have been imposed.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number. 
In Block 5, enter the SCL number. In Block 9, enter ``to add a country 
to the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752-A. Complete Blocks 2 and 3. Mark each country 
that you are adding to your reexport territory.
    (5) Adding items to your SCL. The following procedures apply to 
requests to add items to your SCL. Upon approval, BXA will send you a 
validated Form BXA-752 and, if applicable, Form BXA-748P-A. The SCL 
holder must send a copy of each validated form to all applicable 
consignees and attach a copy to their Form BXA-752.
    (i) Adding one item. You must submit to BXA Form BXA-748P to 
request the addition of a single item to your SCL. Complete Blocks 1, 
2, 3 and 4. Mark ``Special Comprehensive License'' in Block 5, and 
``change'' in Block 8. Include your SCL number in Block 9 and state 
either ``add ECCN'' or ``delete ECCN''. Complete items (a) and (j) in 
Block 22, and Block 25.
    (ii) More than one item. You must submit to BXA Form BXA-748P and 
Form BXA-748P-A to request to add more than one item to your SCL. 
Complete Form BXA-748P according to the instructions in paragraph 
(b)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1. 
Complete Block 21 and Block 24, if needed, to describe any special 
circumstances (i.e. the new item will only be exported to specific 
consignees and will not be reexported).
    (6) Changes to end-users. You must submit to BXA Form BXA-752 and 
Form BXA-748P-B to add end-users to consignee authorizations. Upon 
approval by BXA, BXA will return to the SCL holder two validated copies 
of Form BXA-752 and Form BXA-748P-B, which will include any special 
conditions that may have been imposed. You must send one copy of Forms 
BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL number in Block 5. In Block 9, type ``To add an End-User''. 
Complete Blocks 10 and 11.
    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19. Cite the end-user requirement or 
condition (i.e. ``This end-user is requested in compliance with 
Sec. 752.5(c)(8)(ii) of the EAR, which requires prior authorization to 
reexport chemicals under the SCL''. Also list the items (by ECCN and 
description) that the end-user will receive and for what purpose, if 
approved by BXA.
    (c) Changes that do not require prior approval from BXA. The 
following changes regarding your SCL do not require prior approval from 
BXA, however, such changes must be submitted on the appropriate forms 
no later than 30 days after the change has occurred. BXA will validate 
the forms, and return one copy to you for your records.
    (1) Change of SCL holder address, export contact information, or 
total value of license. You must submit to BXA Form BXA-748P, 
Multipurpose Application, for any change in the SCL holder's address, 
export contact information, or total value of the license. Complete 
Blocks 1, 2, 3, and 4. Mark ``Special Comprehensive License'' in Block 
5, and ``change'' in Block 8. In Block 9, include your SCL number, and 
briefly indicate the purpose of the change. Enter the new information 
in the relevant Blocks. Complete Block 25. The SCL holder must send a 
copy of the validated Form BXA-748P to each approved consignee, and 
advise them to attach the copy of the validated form to their validated 
Form BXA-752.
    (2) Deletion, suspension or revocation of consignees. You must 
submit to BXA Form BXA-748P if you remove a consignee from your SCL. 
Complete Blocks 1, 2, 3 and 4, mark ``Special Comprehensive License'' 
in Block 5, and ``change'' in Block 8. Indicate your SCL number in 
Block 9, and complete Block 14. In Block 24, indicate that you are 
removing a consignee(s) from your SCL, and indicate the name and 
address of the consignee as it appears on the original Form BXA-752. 
Also include the consignee number that was assigned when your SCL was 
approved by BXA. You must notify all remaining consignees if any 
consignee is no longer eligible to receive items under the SCL.
    (3) Changes in ownership or control of the SCL holder or consignee. 
(i) SCL holder. You must notify BXA of changes in ownership or control 
by submitting to BXA Form BXA-748P. Complete Blocks 1, 2, 3 and 4, mark 
``Special Comprehensive License'' in Block 5, and indicate the SCL 
number in Block 9. Include the SCL holder information in Block 14, and 
describe the change in Block 24, indicating the circumstances 
necessitating the change (i.e., mergers), and changes in persons who 
have official signing authority. Also complete Block 25.
    (ii) Consignee. You must notify BXA of changes in ownership or 
control of the consignee company by submitting to BXA Form BXA-752. 
Complete Block 2, mark ``change an existing consignee'' in Block 3.B., 
and complete Blocks 4 and 5. In Block 9, describe the change, 
indicating the circumstances necessitating the change (i.e. mergers), 
and changes in persons who have official signing authority. Complete 
Blocks 10 and 11.
    (4) Remove reexport territories. If you remove a country from a 
consignee's approved reexport territory, you must submit to BXA Form 
BXA-752 and Form BXA-752-A. Upon review of the change in reexport 
territory, BXA will return to the SCL holder two validated copies of 
Form BXA-752 and Form BXA-752-A.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number.

[[Page 12841]]
In Block 5, enter the SCL number. In Block 9, enter ``to remove a 
country from the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752A. Complete Blocks 2 and 3. Mark each country that 
you are removing from the reexport territory.
    (5) Remove items from your SCL. The following procedures apply if 
you remove an item from your SCL. After review of the change by BXA, 
BXA will send you a validated Form BXA-752 and BXA-748P-A, if 
applicable. The SCL holder must send a copy of the each validated form 
to all applicable consignees and attach a copy to their BXA-752P.
    (i) Removing one item. You must submit to BXA Form BXA-748P if you 
remove a single item from your SCL. Complete Blocks 1, 2, 3 and 4. Mark 
``Special Comprehensive License'' in Block 5, and ``change'' in Block 
8. Include your SCL number in Block 9 and state ``delete ECCN''. 
Complete item (a) and (j) in Block 22, and Block 25.
    (ii) Removing more than one item. You must submit to BXA Form BXA-
748P and Form BXA-748P-A if you remove more than one item from your 
SCL. Complete Form BXA-748P according to the instructions in paragraph 
(a)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1, and 
completing items (a) and (j) in Block 22 for each item you are removing 
from your SCL.
    (6) Remove end-users from your SCL. You must submit to BXA Form 
BXA-752 and Form BXA-748P-B if you remove end-users from consignee 
authorizations. After review by BXA, BXA will return to the SCL holder 
two validated copies of Form BXA-752 and Form BXA-748P-B, which will 
include any special conditions that may have been imposed. You must 
send one copy of Forms BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL case number in Block 5. In Block 9, type ``To remove an end-
user''. Complete Blocks 10 and 11.
    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19.
    (d) Changes made by BXA. If BXA revises or adds an ECCN to the CCL, 
or a country's eligibility already covered by the SCL changes, BXA will 
publish the change in the Federal Register. The SCL holder is 
responsible for immediately complying with any changes to the scope of 
the SCL.


Sec. 752.11  Internal Control Programs.

    (a) Scope--(1) Introduction. It is through Internal Control 
Programs (ICPs) that the SCL holder and the consignee assure that 
exports and reexports are not made contrary to the EAR. The elements of 
your ICP will reflect the complexity of the activities authorized under 
the SCL, the countries and items involved, and the relationship between 
the SCL holder and the approved consignees.
    (2) General requirements. Prior to making any exports and reexports 
under an SCL, you and your consignees, when required, must implement an 
ICP that is designed to ensure compliance with the SCL and the EAR. 
This section provides an overview of the elements that comprise an ICP. 
You may obtain from BXA at the address found in Sec. 752.17 of this 
part guidelines to assist you in developing an adequate ICP. You must 
submit with your application for an SCL a copy of your proposed ICP, 
along with any consignee ICPs, when required, incorporating the 
elements described in this section, as appropriate. BXA may require you 
to modify your ICP depending upon the activities, items, and 
destinations requested on your application for an SCL.
    (b) Requirements. You may not make any shipments under an SCL until 
you and your consignees, when appropriate, implement all the elements 
of the required ICP. If there are elements that you consider 
inapplicable, you must explain the reasons for this determination at 
the time of application for an SCL. Existence of a properly constructed 
ICP will not relieve the SCL holder of liability for improper use or 
failure to comply with the requirements of the EAR.
    (c) Elements of an ICP. Following is a list of ICP elements. The 
specific elements that should be included in your ICP depend upon the 
complexity of the activities authorized under your SCL, the countries 
and items involved, and the relationship between the SCL holder and the 
approved consignees.
    (1) A clear statement of corporate policy communicated to all 
levels of the firm involved in exports and reexports, traffic, and 
related functions, emphasizing the importance of SCL compliance;
    (2) Identification of positions (and maintenance of current list of 
individuals occupying the positions) in the SCL holder firm and 
consignee firms responsible for compliance with the requirements of the 
SCL procedure;
    (3) A system for timely distribution to consignees and verification 
of receipt by consignees of the Denied Persons List (Supplement No. 2 
to part 764 of the EAR) and other regulatory materials necessary to 
ensure compliance;
    (4) A system for screening items, training and servicing 
transactions against Denied Persons List (Supplement No. 2 to part 764 
of the EAR) and any relevant updates to the Denied Persons List;
    (5) A system for assuring compliance with items and destination 
restrictions, including controls over reexports by consignees and 
direct exports to consignee customers;
    (6) A compliance review program covering the SCL holder and 
extending to all consignees;
    (7) A system for assuring compliance with controls on exports and 
reexports of nuclear items and to nuclear end-uses described in 
Secs. 742.3 and 744.2 of the EAR;
    (8) An on-going program for informing and educating employees 
responsible for processing transactions involving items received under 
the SCL about applicable regulations, limits, and restrictions of the 
SCL;
    (9) A program for recordkeeping as required by the EAR;
    (10) An order processing system that documents employee clearance 
of transactions in accordance with applicable elements of the company 
ICP;
    (11) A system for monitoring in-transit shipments and shipments to 
bonded warehouses and free trade zones;
    (12) A system for notifying BXA promptly if the SCL holder knows 
that a consignee is not in compliance with terms of the SCL;
    (13) A system to screen against customers who are known to have, or 
are suspected of having, unauthorized dealings with specially 
designated regions and countries for which nonproliferation controls 
apply;
    (i) The signs of potential diversion that you should take into 
consideration include, but are not limited to, the following:
    (A) Your customer is little known (financial information 
unavailable from normal commercial sources and corporate principals 
unknown by trade sources);
    (B) Your customer does not wish to use commonly available 
installation and maintenance services;
    (C) Your customer is reluctant to provide end-use and end-user 
information;
    (D) Your customer requests atypical payment terms or currencies;
    
[[Page 12842]]

    (E) Customer order amounts, packaging, or delivery routing 
requirements do not correspond with normal industry practice.
    (F) The performance/design characteristics of the items ordered are 
incompatible with customer's line of business or stated end-use;
    (G) Your customer provides only a ``P.O. Box'' address or has 
facilities that appear inappropriate for the items ordered;
    (H) Your customer's order is for parts known to be inappropriate, 
or for which the customer appears to have no legitimate need (e.g., 
there is no indication of prior authorized shipment of system for which 
the parts are sought); and
    (I) Your customer is known to have, or is suspected of having, 
unauthorized dealings with parties and/or destinations in ineligible 
countries.
    (ii) When any of the above characteristics have been identified, 
but through follow-up inquiries or investigation have not been 
satisfactorily resolved, the consignee should not transact any business 
with the customer under the SCL. Apply for a license according to part 
748 of the EAR. You should explain the basis for the concern regarding 
the proposed customer, and state that you are an SCL consignee. Also, 
cite the SCL number, and your consignee number;
    (14) A system for assuring compliance with controls over exports 
and reexports for missile-related end-uses and end-users described in 
Sec. 744.3 of the EAR;
    (15) A system for assuring compliance with control over exports and 
reexports of chemical precursors and biological agents and related 
items and end-uses described in Secs. 742.2 and 744.4 of the EAR;


Sec. 752.12  Recordkeeping requirements.

    (a) SCL holder and consignees. In addition to the recordkeeping 
requirements of part 762 of the EAR, the SCL holder and each consignee 
must maintain copies of manuals, guidelines, policy statements, 
internal audit procedures, reports, and other documents making up the 
ICP of each party included under an SCL. Also, all parties must 
maintain copies of the most current Denied Persons List (see Supplement 
No. 2 to part 764 of the EAR) as well as all updates, and all other 
regulatory materials necessary to ensure compliance with the SCL, such 
as relevant changes to the EAR, product classification, additions, 
deletions, or other administrative changes to the SCL, transmittal 
letters and consignee's confirmations of receipt of these materials.
    (b) Consignees. All consignees must retain all records of the types 
of activities identified in Sec. 752.2(a)(3) of this part. Records on 
such sales or reexports must include the following:
    (1) Full name and address of individual or firm to whom sale or 
reexport was made;
    (2) Full description of each item sold or reexported;
    (3) Units of quantity and value of each item sold or reexported; 
and
    (4) Date of sale or reexport.


Sec. 752.13  Inspection of records.

    (a) Availability of records. You and all consignees must make 
available all of the records required by Sec. 752.12 of this part and 
Sec. 762.2 of the EAR for inspection, upon request, by BXA or by any 
other representative of the U.S. Government, in accordance with part 
762 of the EAR.
    (b) Relationship of foreign laws. Foreign law may prohibit 
inspection of records by a U.S. Government representative in the 
foreign country where the records are located. In that event, the 
consignee must submit with the required copies of Form BXA-752 an 
alternative arrangement for BXA to review consignee activities and 
determine whether or not the consignee has complied with U.S. export 
control laws and regulations, which must be approved by BXA.
    (c) Failure to comply. Parties failing to comply with requests to 
inspect documents may be subject to orders denying export privileges 
described in part 764 of the EAR or to the administrative actions 
described in part 766 of the EAR.


Sec. 752.14  System reviews.

    (a) Post-license system reviews. BXA may conduct system reviews of 
the SCL holder as well as any consignee. Generally, BXA will give 
reasonable notice to SCL holders and consignees in advance of a system 
review. The review will involve interviews with company officials, the 
inspection of records, and the review of ICPs. BXA may conduct special 
unannounced system reviews if BXA has reason to believe an SCL holder 
or consignee has improperly used or has failed to comply with the SCL.
    (b) Other reviews. BXA may require an SCL holder or consignee to 
submit to its office a list of all sales made under the SCL during a 
specified time-frame. Also, BXA may request from any consignee a list 
of transactions during a specified period involving direct shipments of 
items received under SCLs to customers of other consignees and sales to 
customers in reexport territories authorized by BXA on the consignee's 
validated Form BXA-752.


Sec. 752.15  Export clearance.

    (a) Shipper's Export Declaration (SED). The SED covering an export 
made under an SCL must be prepared in accordance with standard 
instructions described in Sec. 758.3 of the EAR. If the SCL holder has 
implemented the Bureau of Census Monthly Reporting System, the SCL 
holder must comply with the Census requirements.
    (1) Item descriptions. Item descriptions on the SED must indicate 
specifically the ECCN and item description conforming to the applicable 
CCL description and incorporating any additional information where 
required by Schedule B; (e.g., type, size, name of specific item, 
etc.).
    (2) Value of shipments. There is no value limitation on shipments 
under the SCL; however, you must indicate the value of each shipment on 
the SED.
    (3) SCL number. The SED must include the SCL number followed by a 
blank space, and then the consignee number identifying the SCL's 
approved consignee to whom the shipment is authorized.
    (b) Destination control statement. The SCL holder must enter a 
destination control statement on all copies of the bill of lading or 
air way-bill, and the commercial invoice covering exports under the 
SCL, in accordance with the provisions of Sec. 758.6 of the EAR. Use of 
a destination control statement does not preclude the consignee from 
reexporting to any of the SCL holder's other approved consignees or to 
other countries for which specific prior approval has been received 
from BXA. In such instances, reexport is not contrary to U.S. law and, 
therefore, is not prohibited. Another destination control statement may 
be required or approved by BXA on a case-by-case basis.


Sec. 752.16  Administrative actions.

    (a)(1) If BXA is not satisfied that you or other parties to the SCL 
are complying with all conditions and requirements of the SCL, or that 
ICPs employed by parties to such licenses are not adequate, BXA may, in 
addition to any enforcement action pursuant to part 764 of the EAR, 
take any licensing action it deems appropriate, including the 
following:
    (i) Suspend the privileges under the SCL in whole or in part, or 
impose other restrictions;
    (ii) Revoke the SCL in whole or in part;
    
[[Page 12843]]

    (iii) Prohibit consignees from receiving items authorized under the 
SCL, or otherwise restrict their activities under the SCL;
    (iv) Restrict items that may be shipped under the SCL;
    (v) Require that certain exports, transfers or reexports be 
individually authorized by BXA;
    (vi) Restrict parties to whom consignees may sell under the SCL; 
and
    (vii) Require that an SCL holder provide an audit report to BXA of 
selected consignees or overseas operations.
    (2) Whenever necessary to protect the national interest of the 
U.S., BXA may take any licensing action it deems appropriate, without 
regard to contracts or agreements entered into before such 
administrative action, including those described in paragraphs (a)(1) 
(i) through (vii) of this section.
    (b) Appeals. Actions taken pursuant to paragraph (a) of this 
section may be appealed under the provisions of part 756 of the EAR.


Sec. 752.17  BXA mailing addresses.

    You should use the following addresses when submitting to BXA 
applications, reports, documentation, or other requests required in 
this part 752: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20044, ``Attn: Special 
Licensing and Compliance Division''. If you wish to send the required 
material via overnight courier, use the following address: Bureau of 
Export Administration, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., Room 2705, Washington D.C. 20230 ``Attn: 
Special Licensing and Compliance Division''. You may also reach the 
Special Licensing and Compliance Division by phone (202)482-0062, or 
telefacsmile on (202)501-6750.

Supplement No. 1 to Part 752--Instructions for Completing Form BXA-748P 
Multipurpose Application for Requests for Special Comprehensive 
Licenses

    All information must be legibly typed within the lines for each 
Block or box, except where a signature is required. Where there is a 
choice of entering a telephone or telefacsimile number, and you 
choose a telefacsimile number, identify the number with the letter 
``F'' immediately following the number.
    Complete Blocks 1, 2, 3, and 4 according to the instructions in 
Supplement No. 1 to part 748.
    Block 5: Type of Application. Enter an ``X'' in the Special 
Comprehensive License box.
    Block 6: Documents Submitted with Application. Leave blank.
    Block 7: Documents on File with Applicant. Leave blank.
    Block 8: Special Comprehensive License. Complete by entering an 
``X'' in the appropriate boxes to indicate which forms are attached.
    Block 9: Special Purpose. This block should only be completed by 
previous special license holders. If you have had a special license 
in the past, enter that license number. A new SCL number will be 
assigned upon approval of your SCL application.
    Blocks 10, 11, 12, and 13: Leave blank.
    Block 14: Applicant. Complete according to the instructions in 
Supplement No. 1 to part 748.
    Block 15: Other Party Authorized to Receive License. Complete, 
if applicable, according to the instructions in Supplement no. 1 to 
part 748.
    Blocks 16 and 17: Leave blank.
    Block 18: Ultimate Consignee. Leave blank.
    Blocks 19, 20, and 21: Leave blank.
    Block 22: Leave (a)-(j) blank.
    Block 23: Total Application Dollar Value. Enter the projected 
total dollar value of all transactions you anticipate making 
throughout the entire validity period of the SCL.
    Block 24: Additional Information. Enter additional data 
pertinent to the transaction as required by part 752. Do not include 
information concerning block 22 in this space.
    Block 25: Signature. Complete according to the instructions in 
Supplement No. 1 to part 748.

Supplement No. 2 to Part 752--Instructions for Completing Form BXA-
748P-A, ``Item Annex''

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Enter the application control 
number found on Form BXA-748P.
    Block 2: Subtotal. Leave blank.
    Block 21: Continuation of Specific End-Use Information. Leave 
blank. Block 22:
    (a) ECCN. Enter the Export Control Classification Number that 
corresponds to the item you wish to export or reexport under the 
SCL.
    (b) CTP. You must complete this block if you intend to export or 
reexport a digital computer. Instructions on calculating the CTP are 
contained in a Technical Note at the end of Category 4 in the CCL.
    (c)-(i): Leave blank.
    (j) Manufacturer's Description. Enter a detailed description of 
the item proposed for export or reexport. Brochures or product 
literature may be supplied at the option of the applicant. However, 
such information may expedite review and processing of your 
application.
    Block 24: Continuation of Additional Information. Enter any 
identifying information that defines the scope of items you are 
requesting to export or reexport under the SCL. For example, ``4A004 
except items controlled for MT reasons''.

Supplement No. 3 to Part 752--Instructions for Completing Form BXA-752 
``Statement by Consignee in Support of Special Comprehensive License''

    All information must be legibly typed within the lines for each 
block or box, except where a signature is required.
    Block 1: Application Control No. Enter the ``Control No.'' that 
is pre-printed on the Form BXA-748P, Multipurpose Application. You 
may obtain this information from the applicant.
    Block 2: Consignee ID Number. Leave blank.
    Block 3: Type of Request. For new applications, leave blank.
    Block 4: Consignee Information. Enter the complete address where 
the consignee is located. A P.O. Box alone is NOT acceptable but may 
be included in Block 4 for mailing purposes, along with a complete 
address. If records required by Sec. 752.12 of this part and part 
762 of the EAR are maintained/stored at a separate address, indicate 
the address in Block 9. In the absence of a complete address, Form 
BXA-752 will be returned without action.
    Block 5: U.S. Exporter Information. Enter the complete address 
of the U.S. exporter. Leave the SCL Case No. box blank.
    Block 6: Description of Items. Provide a summary description of 
the items proposed for import and reexport under the SCL. Firms that 
will not receive the entire range of items under a particular ECCN 
identified on Form BXA-748P-A should describe only the items they 
will receive under the SCL. In some instances, consignee approval 
will be contingent on the nature of the item requested.
    Block 7: Consignee's Business and Relationship.
    (a) Identify the nature of your company's principal business as 
it affects the disposition of items to be imported and reexported 
under this license (e.g., manufacturer, manufacturer/ distributor, 
assembler/reseller, distributor, sales agent, warehouse, service 
facility).
    (b) Indicate the relationship between your company and the 
applicant company (e.g., wholly owned subsidiary, independent 
company, joint venture company, controlled-in-fact affiliate of 
another consignee that is approved on an SCL).
    (c) Enter number of years of relationship between your company 
and the applicant company.
    (d) Enter the estimated dollar volume of sales or other 
transactions with the SCL holder during the last twelve months 
period before submission of the application for SCL.
    (e) Enter an estimated dollar volume proposed under this 
application for the validity period of the SCL.
    Block 8: Disposition or Use of Items. 
    (a) Complete this Block if your company is requesting 
involvement in end-user activities that involve importing items for 
the company's own use (e.g., as capital equipment).
    (b) Complete this Block if your company is requesting 
involvement in end-user activities that incorporate items received 
under the

[[Page 12844]]
SCL into a new end-product that result in a change of identity of 
the U.S.-item (e.g., U.S.-origin semiconductor devices are included 
in a foreign origin test instrument). Under Block 9, Additional 
Information, describe the new end-product more specifically and 
state how and to what extent the U.S.-origin items will be used. 
Complete and attach Form BXA-752-A, Reexport Territories.
    (c) Complete this Block if your company is requesting 
authorization to reexport items for service and/or repair. Complete 
and attach Form BXA-752-A. If you plan to reexport to end-users that 
require prior approval by BXA, also complete and attach Form BXA-
748P-B, End-User Appendix.
    (d) Complete this Block if your company plans to retransfer/
resell within the country of import. State the end-use of your 
customers. If you plan to retransfer to end-users that require prior 
approval by BXA, complete and attach Form BXA-748P-B, End-User 
Appendix.
    (e) Complete this Block if your company plans to reexport. 
Complete and attach Form BXA-752-A. If you plan to reexport to end-
users that require prior approval by BXA, also complete and attach 
Form BXA-748P-B, End-User Appendix.
    (f) This item should be completed for ``other'' activities that 
are not defined in Blocks 8(a) through (e). Describe the proposed 
activities fully in a letter attached to this Form, and complete and 
attach Form BXA-752-A, indicating countries to which the products 
derived from these activities are proposed export.
    Block 9: Additional Information. In addition to any information 
that supports other Blocks, indicate whether your company is an 
active consignee under any other license issued by BXA. Indicate the 
license and consignee numbers.
    Block 10: Signature of Official of Ultimate Consignee. Include 
an original signature. The authority to sign form BXA-752 may not be 
delegated to any person whose authority to sign is not inherent in 
his/her official position with the company. The signing official 
must include their official title with the signature. All copies 
must be co-signed by the applicant in Block 11 and submitted with 
the application to BXA.

Supplement No. 4 to Part 752--Instructions for Completing Form BXA-752-
A Reexport Territories

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant form BXA-748P.
    Block 2: SCL License No. Leave blank for new SCL applications. 
For changes to existing SCLs, include the original SCL number.
    Block 3: Consignee No. Leave blank for new SCL applications. For 
changes to existing SCLs, include the consignee number that was 
provided on the original license.
    Block 4: Continuation of BXA-752 Question No. Mark an ``X'' in 
the box next to each country you want to select. Countries that are 
not eligible for the SCL are not included on this form. If the 
country that is not listed on this form becomes eligible to receive 
items under the SCL, you may request that country by marking an 
``X'' in the ``other'' box and including the country name.

Supplement No. 5 to Part 752--Instructions for Completing Form BXA-
748P-B End-User Appendix

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant Form BXA-748P.
    Block 19: End-user. Enter each end-user's complete name, street 
address, city, country, postal code and telephone or facsimile 
number. P.O. Boxes are not acceptable.
    Block 21: Continuation of Specific End-Use Information. Include 
any additional information that may help BXA in reviewing and making 
a determination on your application, such as the special safeguards 
that will be implemented to prevent diversion.
    Block 24: Continuation of Additional Information. Enter 
additional data pertinent to the transaction as required by part 752 
of the EAR.

PART 754--SHORT SUPPLY CONTROLS

Sec.
754.1  Introduction.
754.2  Crude oil.
754.3  Petroleum products not including crude oil.
754.4  Unprocessed western red cedar.
754.5  Horses for export by sea.
754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.
754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products

Supplement No. 2 to Part 754--Unprocessed Western Red Cedar

Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
of Crude Oil

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); Sec. 201, Pub. L. 104-58, 109 
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 6212; 43 
U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 12924, 3 CFR, 1994 Comp., p. 
917; Notice of August 15, 1995 (60 FR 42767, August 17, 1995).


Sec. 754.1  Introduction.

    (a) Scope. In this part, references to the Export Administration 
Regulations (EAR) are references to 15 CFR chapter VII, subchapter C. 
This part implements the provisions of section 7, ``Short Supply 
Controls,'' of the Export Administration Act (EAA) and similar 
provisions in other laws that are not based on national security and 
foreign policy grounds.
    (b) Contents. Specifically, this part deals with the following:
    (1) It sets forth the license requirements and licensing policies 
for commodities that contain the symbol ``SS'' in the ``Reason for 
Control'' part of ``License Requirements'' section of the applicable 
Export Control Classification Number (ECCN) identified on the Commerce 
Control List (Supplement No. 1 to part 774 of the EAR). In appropriate 
cases, it also provides for License Exceptions from the short supply 
licensing requirements described in this part. The license requirements 
and policies that are described in this part cover the following:
    (i) Crude oil described by ECCN 1C981 (Crude petroleum, including 
reconstituted crude petroleum, tar sands, and crude shale oil listed in 
Supplement No. 1 to this part). For specific licensing requirements for 
these items, see Sec. 754.2 of this part.
    (ii) Petroleum products other than crude oil listed in Supplement 
No. 1 to this part, that were produced or derived from the Naval 
Petroleum Reserves (NPR) or became available for export as a result of 
an exchange of any NPR-produced or -derived commodities described by 
the following ECCNs. For specific licensing requirements for these 
items, see Sec. 754.3 of this part.
    (A) ECCN 1C980 (Inorganic chemicals);
    (B) ECCN 1C982 (Other petroleum products);
    (C) ECCN 1C983 (Natural gas liquids and other natural gas 
derivatives); and
    (D) ECCN 1C984 (Manufactured gas and synthetic natural gas (except 
when commingled with natural gas and thus subject to export 
authorization from the Department of Energy).
    (iii) Unprocessed western red cedar described by ECCN 1C988 
(Western red cedar (thuja plicata) logs and timber, and rough, dressed 
and worked lumber containing wane listed in Supplement No. 2 to this 
part). For specific licensing requirements for these items, see 
Sec. 754.4 of this part.
    (iv) Horses exported by sea for slaughter covered by ECCN 0A980 
(Horses for export by sea). For specific licensing requirements, see 
Sec. 754.5 of this part.
    (2) It incorporates statutory provisions for the registration of 
U.S. agricultural commodities for exemption from short supply 
limitations on export (see Sec. 754.6 of this part); and
    (3) It incorporates statutory provisions for the filing and review 
of petitions seeking the imposition of monitoring or controls on 
recyclable metallic materials and procedures for related public 
hearings (see Sec. 754.7 of this part).

[[Page 12845]]

    (c) Reexports. Reexports of items controlled by this part require a 
license only if such a requirement is specifically set forth in this 
part or is set forth on the license authorizing the export from the 
United States.
    (d) Additional requirements for embargoed destinations. For exports 
involving embargoed destinations, you must satisfy the requirements of 
this part and also of part 746 of the EAR (Embargoes and Other Special 
Controls).


Sec. 754.2  Crude oil.

    (a) License requirement. As indicated by the SS notation in the 
``License Requirements'' section of ECCN 1C981 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required for the export of 
crude oil to all destinations, including Canada. See paragraph (h) of 
this section for a License Exception permitting the export of certain 
oil from the Strategic Petroleum Reserves and paragraph (i) of this 
section for a License Exception for certain shipments of samples. 
``Crude oil'' is defined as a mixture of hydrocarbons that existed in 
liquid phase in underground reservoirs and remains liquid at 
atmospheric pressure after passing through surface separating 
facilities and which has not been processed through a crude oil 
distillation tower. Included are reconstituted crude petroleum, and 
lease condensate and liquid hydrocarbons produced from tar sands, 
gilsonite, and oil shale. Drip gases are also included, but topped 
crude oil, residual oil, and other finished and unfinished oils are 
excluded.
    (b) License policy. (1) BXA will approve applications to export 
crude oil for the following kinds of transactions if BXA determines 
that the export is consistent with the specific requirements pertinent 
to that export:
    (i) Exports from Alaska's Cook Inlet (see paragraph (d) of this 
section);
    (ii) Exports to Canada for consumption or use therein (see 
paragraph (e) of this section);
    (iii) Exports in connection with refining or exchange of strategic 
petroleum reserve oil (see paragraph (f) of this section);
    (iv) Exports of heavy California crude oil up to an average volume 
not to exceed 25 MB/D (see paragraph (g) of this section);
    (v) Exports that are consistent with international agreements as 
described in the statutes listed in paragraph (c) of this section;
    (vi) Exports that are consistent with findings made by the 
President under an applicable statute, including the statutes described 
in paragraph (c) of this section; and
    (vii) Exports of foreign origin crude oil where, based on written 
documentation satisfactory to BXA, the exporter can demonstrate that 
the oil is not of U.S. origin and has not been commingled with oil of 
U.S. origin. See paragraph (h) of this section for the provisions of 
License Exception SPR permitting exports of certain crude oil from the 
Strategic Petroleum Reserve.
    (2) BXA will review other applications to export crude oil on a 
case-by-case basis and, except as provided in paragraph (c) of this 
section, generally will approve such applications if BXA determines 
that the proposed export is consistent with the national interest and 
the purposes of the Energy Policy and Conservation Act (EPCA). Although 
BXA will consider all applications for approval, generally, the 
following kinds of transactions will be among those that BXA will 
determine to be in the national interest and consistent with the 
purposes of EPCA.
    (i) The export is part of an overall transaction:
    (A) That will result directly in the importation into the United 
States of an equal or greater quantity and an equal or better quality 
of crude oil or of a quantity and quality of petroleum products listed 
in Supplement No. 1 to this part that is not less than the quantity and 
quality of commodities that would be derived from the refining of the 
crude oil for which an export license is sought;
    (B) That will take place only under contracts that may be 
terminated if the petroleum supplies of the United States are 
interrupted or seriously threatened; and
    (C) In which the applicant can demonstrate that, for compelling 
economic or technological reasons that are beyond the control of the 
applicant, the crude oil cannot reasonably be marketed in the United 
States.
    (ii) Exports involving temporary exports or exchanges that are 
consistent with the exceptions from the restrictions of the statutes 
listed in paragraph (c) of this section.
    (c) Additional statutory controls. (1) The following statutes 
provide controls on the export of domestically produced crude oil based 
on its place of origin or mode of transport. If such other statutory 
controls apply, an export may only be approved if the President makes 
the findings required by the applicable law.
    (i) Section 201 of Public Law 104-58, entitled ``Exports of Alaskan 
North Slope Oil,'' provides for exports of domestically produced crude 
oil transported by pipeline over rights-of-way granted pursuant to 
section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 
1652) (``TAPS crude oil'').
    (ii) The Mineral Leasing Act of 1920 restricts exports of 
domestically produced crude oil transported by pipeline over rights-of-
way granted pursuant to section 28(u) of that Act (30 U.S.C. 185(u)) 
(``MLA'').
    (iii) The Outer Continental Shelf Lands Act restricts exports of 
crude oil produced from the outer Continental Shelf (29 U.S.C. 1354) 
(``OCSLA'').
    (iv) The Naval Petroleum Reserves Production Act restricts the 
export of crude oil produced from the naval petroleum reserves (10 
U.S.C. 7430) (``NPRPA'').
    (2) Supplement No. 3 to this part describes the relevant statutory 
provisions. In cases where a particular statute applies, a Presidential 
finding is necessary before the export can be authorized. You should 
note that in certain cases it is possible that more than one statute 
could apply to a particular export of crude oil.
    (d) Exports from Alaska's Cook Inlet. The licensing policy is to 
approve applications for exports of crude oil that was derived from the 
state-owned submerged lands of Alaska's Cook Inlet and has not been, or 
will not be, transported by a pipeline over a federal right-of-way 
subject to the MLA or the Trans-Alaska Pipeline Authorization 
Act.<SUP>1

    \1\ On November 6, 1985, the Secretary of Commerce determined 
that the export of crude oil derived from State waters in Alaska's 
Cook Inlet is consistent with the national interest and the purposes 
of the Energy Policy and Conservation Act.
---------------------------------------------------------------------------

    (e) Exports to Canada for consumption or use therein. (1) Except 
for TAPS crude oil, the licensing policy is to approve applications for 
exports of crude oil to Canada for consumption or use therein.
    (2) The licensing policy for TAPS crude oil is to approve 
applications for an average of no more than 50,000 barrels of oil per 
day for consumption or use in Canada, subject to the following 
procedures and conditions:
    (i) Any ocean transportation of the commodity will be made by 
vessels documented for United States coastwise trade under 46 U.S.C. 
12106. Only barge voyages between the State of Washington and 
Vancouver, British Columbia, and comparable barge movements across 
waters between the U.S. and Canada may be excluded from this 
requirement. The Bureau of Export Administration will determine, in 
consultation with the Maritime

[[Page 12846]]
Administration, whether such transportation is ``ocean'' 
transportation; and
    (ii) Authorization to export TAPS crude oil will be granted on a 
quarterly basis. Applications will be accepted by BXA no earlier than 
two months prior to the beginning of the calendar quarter in question, 
but must be received no later than the 25th day of the second month 
preceding the calendar quarter. For example, for the calendar quarter 
beginning April 1 and ending June 30, applications will be accepted 
beginning February 1, but must be received no later than February 25.
    (iii) The quantity stated on each application must be the total 
number of barrels for the quarter, not a per-day rate. This quantity 
must not exceed 50,000 barrels times the number of calendar days in the 
quarter.
    (iv) Each application must include support documents providing 
evidence that the applicant has either:
    (A) Title to the quantity of barrels stated in the application; or
    (B) A contract to purchase the quantity of barrels stated in the 
application.
    (v) The quantity of barrels authorized on each license for export 
during the calendar quarter will be determined by the BXA as a prorated 
amount based on:
    (A) The quantity requested on each license application; and
    (B) The total number of barrels that may be exported by all license 
holders during the quarter (50,000 barrels per day multiplied by the 
number of calendar days during the quarter).
    (vi) Applicants may combine their licensed quantities for as many 
as four consecutive calendar quarters into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (vii) BXA will carry forward any portion of the 50,000 barrels per 
day quota that has not been allocated during a calendar quarter, except 
that no un-allocated portions will be carried over to a new calendar 
year. The un-allocated volume for a calendar quarter will be added, 
until expended, to the quotas available for each quarter through the 
end of the calendar year.
    (f) Refining or exchange of Strategic Petroleum Reserve Oil. (1) 
Exports of crude oil withdrawn from the Strategic Petroleum Reserve 
(SPR) will be approved if BXA, in consultation with the Department of 
Energy, determines that such exports will directly result in the 
importation into the United States of refined petroleum products that 
are needed in the United States and that otherwise would not be 
available for importation without the export of the crude oil from the 
SPR.
    (2) Licenses may be granted to export, for refining or exchange 
outside of the United States, SPR crude oil that will be sold and 
delivered, pursuant to a drawdown and distribution of the SPR, in 
connection with an arrangement for importing refined petroleum products 
into the United States.
    (3) BXA will approve license applications subject to the following 
conditions:
    (i) You must provide BXA evidence of the following:
    (A) A title to the quantity of barrels of SPR crude stated in the 
application; or
    (B) A contract to purchase, for importation, into the United States 
the quantity of barrels of SPR crude stated in the application.
    (ii) The following documentation must be submitted to BXA no later 
than fourteen days following the date that the refined petroleum 
products are imported in the U.S. in exchange for the export of SPR 
crude:
    (A) Evidence that the exporter of the SPR crude has title to or a 
contract to purchase refined petroleum product;
    (B) A copy of the shipping manifest that identifies the refined 
petroleum products; and
    (C) A copy of the entry documentation required by the U.S. Customs 
Service that show the refined petroleum products were imported into the 
United States, or a copy of the delivery receipt when the refined 
petroleum products are for delivery to the U.S. military outside of the 
United States.
    (4) You must complete both the export of the SPR crude and the 
import of the refined petroleum products no later than 30 days 
following the issuance of the export license, except in the case of 
delivery to the U.S. military outside of the United States, in which 
case the delivery of the refined petroleum products must be completed 
no later than the end of the term of the contract with the Department 
of Defense.
    (g) Exports of certain California crude oil. The export of 
California heavy crude oil having a gravity of 20.0 degrees API or 
lower, at an average volume not to exceed 25 MB/D, will be authorized 
as follows.
    (1) Applicants must submit their applications on Form BXA-748 to 
the following address: Office of Exporter Services, ATTN: Short Supply 
Program--Petroleum, Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
    (2) The quantity stated on each application must be the total 
number of barrels proposed to be exported under the license--not a per-
day rate. This quantity must not exceed 25 percent of the annual 
authorized export quota. Potential applicants may inquire of BXA as to 
the amount of the annual authorized export quota available.
    (3) Each application shall be accompanied by a certification by the 
applicant that the California heavy crude oil:
    (i) Has a gravity of 20.0 degrees API or lower;
    (ii) Was produced within the state of California, including its 
submerged state lands;
    (iii) Was not produced or derived from a U.S. Naval Petroleum 
Reserve; and
    (iv) Was not produced from submerged lands of the U.S. Outer 
Continental Shelf.
    (4) Each license application must be based on an order, and be 
accompanied by documentary evidence of such an order (e.g., a letter of 
intent).
    (5) BXA will adhere to the following procedures for licensing 
exports of California heavy crude oil:
    (i) BXA will issue licenses for approved applications in the order 
in which the applications are received (date-time stamped upon receipt 
by BXA), with the total quantity authorized for any one license not to 
exceed 25 percent of the annual authorized volume of California heavy 
crude oil.
    (ii) BXA will approve only one application per month for each 
company and its affiliates.
    (iii) BXA will consider the following factors (among others) when 
determining what action should be taken on individual license 
applications:
    (A) The number of licenses to export California heavy crude oil 
that have been issued to the applicant or its affiliates during the 
then-current calendar year;
    (B) The number of applications pending in BXA that have been 
submitted by applicants who have not previously been issued licenses 
under this section to export California heavy crude oil during the 
then-current calendar year; and
    (C) The percentage of the total amount of California heavy crude 
oil authorized under other export licenses previously issued to the 
applicant pursuant to this section that has actually been exported by 
the applicant.
    (iv) BXA will approve applications contingent upon the licensee 
providing documentation meeting the requirements of both 
paragraphs(g)(5)(iv)(A) and (B) of this

[[Page 12847]]
section prior to any export under the license:
    (A) Documentation showing that the applicant has or will acquire 
title to the quantity of barrels stated in the application. Such 
documentation shall be either:
    (1) An accepted contract or bill of sale for the quantity of 
barrels stated in the application; or
    (2) A contract to purchase the quantity of barrels stated in the 
application, which may be contingent upon issuance of an export license 
to the applicant.
    (B) Documentation showing that the applicant has a contract to 
export the quantity of barrels stated in the application. The contract 
may be contingent upon issuance of the export license to the applicant.
    (v) BXA will carry forward any portion of the 25 MB/D quota that 
has not been licensed, except that no unallocated portions will be 
carried forward more than 90 days into a new calendar year. 
Applications to export against any carry-forward must be filed with BXA 
by January 15 of the carry-forward year.
    (vi) BXA will return to the available authorized export quota any 
portion of the 25 MB/D per day quota that has been licensed, but not 
shipped, during the 90-day validity period of the license.
    (vii) BXA will not carry over to the next calendar year pending 
applications from the previous year.
    (6) License holders:
    (i) Have 90 calendar days from the date the license was issued to 
export the quantity of California heavy crude oil authorized on the 
license. Within 30 days of any export under the license, the exporter 
must provide BXA with a certified statement confirming the date and 
quantity of California heavy crude oil exported.
    (ii) Must submit to BXA, prior to any export under the license, the 
documentation required by paragraph (g)(5)(iv) of this section.
    (iii) May combine authorized quantities into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (iv) Are prohibited from transferring the license to another party 
without prior written authorization from BXA.
    (7) BXA will allow a 10 percent tolerance on the unshipped balance 
based upon the volume of barrels it has authorized. BXA will allow a 25 
percent shipping tolerance on the total dollar value of the license. 
See Sec. 750.11 of the EAR for an explanation of shipping tolerances.
    (h) License Exception for certain shipments from the Strategic 
Petroleum Reserves (SPR). Subject to the requirements set forth in this 
paragraph, License Exception SPR may be used to export without a 
license foreign origin crude oil imported and owned by a foreign 
government or its representative which is imported for storage in, and 
stored in, the United States Strategic Petroleum Reserves pursuant to 
an appropriate agreement with the U.S. Government or an agency thereof. 
If such foreign origin oil is commingled with other oil in the SPR, 
such export is authorized under License Exception SPR only if the crude 
oil being exported is of the same quantity and of comparable quality as 
the foreign origin crude oil that was imported for storage in the SPR 
and the Department of Energy certifies this fact to BXA.
    (1) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (2) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-SPR.''
    (i) License Exception for certain sample shipments. Subject to the 
requirements set forth in this paragraph, License Exception SS-SAMPLE 
may be used to export crude oil for analytic and testing purposes.
    (1) An exporter may ship up to 10 barrels of crude oil to any one 
end-user annually, up to an annual cumulative limit of 100 barrels per 
exporter.
    (2) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (3) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-SAMPLE''.


Sec. 754.3  Petroleum products not including crude oil.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCNs 1C980, 1C982, 1C983, and 1C984 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required to all 
destinations, including Canada, for the export of petroleum products, 
excluding crude oil, listed in Supplement No. 1 to this part, that were 
produced or derived from the Naval Petroleum Reserves (NPR) or became 
available for export as a result of an exchange of any NPR produced or 
derived commodities.
    (b) License policy. (1) Applications for the export of petroleum 
products listed in Supplement No. 1 to this part that were produced or 
derived from the Naval Petroleum Reserves, or that became available for 
export as a result of an exchange for a Naval Petroleum Reserves 
produced or derived commodity, other than crude oil, will be denied, 
unless the President makes a finding required by the Naval Petroleum 
Reserves Production Act (10 U.S.C. 7430).
    (2) Applications that involve temporary exports or exchanges 
excepted from that Act will be approved.


Sec. 754.4  Unprocessed western red cedar.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' 
section of ECCN 1C988 on the CCL (Supplement No. 1 to part 774 of the 
EAR), a license is required to all destinations, including Canada, for 
the export of unprocessed western red cedar covered by ECCN 1C988 
(Western red cedar (thuja plicata) logs and timber, and rough, dressed 
and worked lumber containing wane listed in Supplement No. 2 to this 
part). See paragraph (c) of this section for License Exceptions for 
timber harvested from public lands in the State of Alaska, private 
lands, or Indian lands, and see paragraph (d) of this section for 
relevant definitions.
    (b) Licensing policy. (1) BXA will generally deny applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into after September 30, 
1979.
    (2) BXA will consider, on a case-by-case basis, applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into prior to October 1, 
1979.
    (3) BXA will approve license applications for unprocessed western 
red cedar timber harvested from public lands in Alaska, private lands, 
and Indian lands. Applications must be submitted in accordance with the 
procedures set forth in paragraph (a) of this section. See paragraph 
(c) of this section for the availability of a License Exception.
    (c) License Exception for western red cedar (WRC). (1) Subject to 
the requirements described in paragraph (c) of this section, License 
Exception WRC may be used to export without a license unprocessed 
western red cedar timber harvested from Federal, State and other public 
lands in Alaska, all private lands,

[[Page 12848]]
and, lands held in trust for recognized Indian tribes by Federal or 
State agencies.
    (2) Exporters who use License Exception WRC must obtain and retain 
on file the following documents:
    (i) A statement by the exporter (or other appropriate 
documentation) indicating that the unprocessed western red cedar timber 
exported under this License Exception was not harvested from State or 
Federal lands outside the State of Alaska, and did not become available 
for export through substitution of commodities so harvested or 
produced. If the exporter did not harvest or produce the timber, the 
records or statement must identify the harvester or producer and must 
be accompanied by an identical statement from the harvester or 
producer. If any intermediate party or parties held title to the timber 
between harvesting and purchase, the exporter must also obtain such a 
statement, or equivalent documentation, from the intermediate party or 
parties and retain it on file.
    (ii) A certificate of inspection issued by a third party log 
scaling and grading organization, approved by the United States Forest 
Service, that:
    (A) Specifies the quantity in cubic meters or board feet, scribner 
rule, of unprocessed western red cedar timber to be exported; and
    (B) Lists each type of brand, tag, and/or paint marking that 
appears on any log or unprocessed lumber in the export shipment or, 
alternatively, on the logs from which the unprocessed timber was 
produced.
    (3) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception WRC.
    (4) A person exporting any item pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the 
letter code ``SS-WRC''.
    (d) License Applications. (1) Applicants requesting to export 
unprocessed western red cedar must submit a properly completed Form 
BXA-748P, Multipurpose License Form, other documents as may be required 
by BXA, and a signed statement from an authorized representative of the 
exporter, reading as follows:
    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best 
of my knowledge and belief the (Quantity) (cubic meters or board 
feed scribner) of unprocessed western red cedar timber that 
(Exporter) proposes to export was not harvested from State or 
Federal lands under contracts entered into after October 1, 1979,
----------------------------------------------------------------------
(Signature)
----------------------------------------------------------------------
(Date)

    (2) For Items [16] and [18] on Form BXA-748P, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each Form BXA-748P submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period described in part 762 of the EAR, and produce or make available 
for inspection, the following:
    (i) A signed statement(s) by the harvester or producer, and each 
subsequent party having held title to the commodities, that the 
commodities in question were harvested under a contract to harvest 
unprocessed western red cedar from State or Federal lands, entered into 
before October 1, 1979; and
    (ii) A copy of the Shipper's Export Declaration.
    (4) A shipping tolerance of 5 percent in cubic feet or board feet 
scribner is allowed on the un-shipped balance of a commodity listed on 
a license. This tolerance applies only to the final quantity remaining 
un-shipped on a license against which more than one shipment is made 
and not to the original quantity authorized by such license. See 
Sec. 750.11 of the EAR for an explanation of shipping tolerances.
    (e) Definitions. When used in this section, the following terms 
have the meaning indicated:
    (1) Unprocessed western red cedar means western red cedar (thuja 
plicata) timber, logs, cants, flitches, and processed lumber containing 
wane on one or more sides, as defined in ECCN 1C988, that has not been 
processed into:
    (i) Lumber of American Lumber Standards Grades of Number 3 
dimension or better, or Pacific Lumber Inspection Bureau Export R-List 
Grades of Number 3 common or better grades, with a maximum cross 
section of 2,000 square centimeters (310 square inches) for any 
individual piece of processed western red cedar (WRC) being exported, 
regardless of grade;
    (ii) Chips, pulp, and pulp products;
    (iii) Veneer and plywood;
    (iv) Poles, posts, or pilings cut or treated with preservative for 
use as such and not intended to be further processed; and
    (v) Shakes and shingles.
    (2) Federal and State lands means Federal and State lands, 
excluding lands in the State of Alaska and lands held in trust by any 
Federal or State official or agency for a recognized Indian tribe or 
for any member of such tribe.
    (3) Contract harvester means any person who, on October 1, 1979, 
had an outstanding contractual commitment to harvest western red cedar 
timber from State and Federal lands and who can show by previous 
business practice or other means that the contractual commitment was 
made with the intent of exporting or selling for export in unprocessed 
form all or part of the commodities to be harvested.
    (4) Producer means any person engaged in a process that transforms 
an unprocessed western red cedar commodity (e.g., western red cedar 
timber) into another unprocessed western red cedar commodity (e.g., 
cants) primarily through a saw mill.


Sec. 754.5  Horses for export by sea.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph of the ``License Requirements'' 
section of ECCN 0A980 on the CCL (Supplement No. 1 to part 774 of the 
EAR) a license is required for the export of horses exported by sea to 
all destinations, including Canada.
    (b) License policy. (1) License applications for the export of 
horses by sea for the purposes of slaughter will be denied.
    (2) Other license applications will be approved if BXA, in 
consultation with the Department of Agriculture, determines that the 
horses are not intended for slaughter. You must provide a statement in 
the additional information section of the Form BXA-748P, certifying 
that no horse under consignment is being exported for the purpose of 
slaughter.
    (3) Each application for export may cover only one consignment of 
horses.


Sec. 754.6  Registration of U.S. agricultural commodities for exemption 
from short supply limitations on export.

    (a) Scope. Under the provisions of section 7(g) of the Export 
Administration Act of 1979 (EAA), agricultural commodities of U.S. 
origin purchased by or for use in a foreign country and stored in the 
United States for export at a later date may be registered with BXA for 
exemption from any quantitative limitations on export that may 
subsequently be imposed under section 7 of the EAA for reasons of short 
supply.
    (b) Applications for registration. Applications to register 
agricultural commodities must be submitted by a person or firm subject 
to the jurisdiction of the United States who is acting as a duly 
authorized agent for the foreign purchaser.
    (c) Mailing address. Submit applications pursuant to the provisions 
of section 7(g) of the EAA to: Bureau of Export Administration, U.S. 
Department

[[Page 12849]]

of Commerce, P.O. Box 273, Washington, D.C. 20230.


Sec. 754.7  Petitions for the imposition of monitoring or controls on 
recyclable metallic materials; Public hearings.

    (a) Scope. Section 7(c) of the Export Administration Act of 1979 
(EAA) provides for the filing and review of petitions seeking the 
imposition of monitoring or controls on recyclable metallic materials.
    (b) Eligibility for filing petitions. Any entity, including a trade 
association, firm or certified or recognized union or group of workers, 
which is representative of an industry or a substantial segment of an 
industry which processes metallic materials capable of being recycled 
with respect to which an increase in domestic prices or a domestic 
shortage, either of which results from increased exports, has or may 
have a significant adverse effect on the national economy or any sector 
thereof, may submit a written petition to BXA requesting the monitoring 
of exports, or the imposition of export controls, or both, with respect 
to such materials.
    (c) Public hearings. The petitioner may also request a public 
hearing. Public hearings may also be requested by an entity, including 
a trade association, firm, or certified or recognized union or group of 
workers, which is representative of an industry or a substantial 
segment of an industry which processes, produces or exports the 
metallic materials which are the subject of a petition.
    (d) Mailing address. Submit petitions pursuant to section 7(c) of 
the EAA to: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20230.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCNs 1C980, 1C981, 
1C982, 1C983, and 1C984.

------------------------------------------------------------------------
        Schedule B No.                  Commodity description <SUP>1         
------------------------------------------------------------------------
                                Crude Oil                               
                                                                        
------------------------------------------------------------------------
2709.0710....................  Crude petroleum (including reconstituted 
                                crude petroleum), tar sands and crude   
                                shale oil.                              
2710.0710....................  Petroleum, partly refined for further    
                                refining.                               
                                                                        
------------------------------------------------------------------------
                            Petroleum Products                          
                                                                        
------------------------------------------------------------------------
2804.29.0010.................  Helium.                                  
2804.10.0000.................  Hydrogen.                                
2814.20.0000.................  Ammonia, aqueous.                        
2811.21.0000.................  Carbon dioxide and carbon monoxide.      
2710.00.0550.................  Distillate fuel oils, having a Saybolt   
                                Universal viscosity at 100  deg.F. of   
                                less than 45 seconds.                   
2710.00.1007.................  Distillate fuel oils (No. 4 type) having 
                                a Saybolt Universal viscosity at 100    
                                deg.F. of 45 seconds or more, but not   
                                more than 125 seconds.                  
2710.00.1050.................  Fuel oils, having a Saybolt Universal    
                                viscosity at 100  deg.F. of more than   
                                125 seconds.                            
2711.11.0000.................  Natural gas, methane and mixtures thereof
                                (including liquefied natural gas and    
                                synthetic or substitute natural gas).<SUP>2  
2711.14.0000.................  Ethane with a minimum purity of 95 liquid
                                volume percent.                         
2711.12.0000.................  Propane with a minimum purity of 90      
                                liquid volume percent.                  
2711.13.0000.................  Butane with a minimum purity of 90 liquid
                                volume percent.                         
2711.19.0000.................  Other natural gases (including mixtures),
                                n.s.p.f. and manufactured gas.          
2710.00.1510.................  Gasoline, motor fuel (including          
                                aviation).                              
2710.00.1520.................  Jet fuel, naphtha-type.                  
2710.00.1530.................  Jet fuel, kerosene-type.                 
2710.00.1550.................  Other motor fuel (including tractor fuel 
                                and stationary turbine fuel).           
2710.00.2000.................  Kerosene derived from petroleum, shale   
                                oil, natural gas, or combinations       
                                thereof (except motor fuel).            
2710.00.2500.................  Naphthas derived from petroleum, shale   
                                oil, natural gas, or combinations       
                                thereof (except motor fuel).            
2710.00.5030.................  Mineral oil of medicinal grade derived   
                                from petroleum, shale oil or both.      
3819.00.0000.................  Hydraulic fluids, including automatic    
                                transmission fluids.                    
2710.00.3010.................  Aviation engine lubricating oil, except  
                                jet engine lubricating oil.             
2710.00.3020.................  Jet engine lubricating oil 475.4520      
                                Automotive, diesel, and marine engine   
                                lubricating oil.                        
2710.00.3030.................  Turbine lubricating oil, including       
                                marine.                                 
2710.00.3040.................  Automotive gear oils.                    
2710.00.3050.................  Steam cylinder oils.                     
2710.00.5045.................  Insulating or transformer oils.          
2710.00.3070.................  Quenching or cutting oils.               
2710.00.3080.................  Lubricating oils, n.s.p.f., except white 
                                mineral oil.                            
2710.00.3700.................  Greases.                                 
2710.00......................  Carbon black feedstock oil.              
2712.10.0000.................  Petroleum jelly and petrolatum, all      
                                grades.                                 
2710.00.5040.................  White mineral oil, except medicinal      
                                grade.                                  
2710.00.5060.................  Other non-lubricating and non-fuel       
                                petroleum oils, n.s.p.f.                
2814.10.0000.................  Ammonia, anhydrous.                      
2712.20.0000.................  Paraffin wax, crystalline, fully refined.
2712.90.0000.................  Paraffin wax, crystalline, except fully  
                                refined.                                
2712.90.0000.................  Paraffin wax, all others (including      
                                microcrystalline wax).                  
2517.30.0000.................  Paving mixtures, bituminous, based on    
                                asphalt and petroleum.                  
2713.12.0000.................  Petroleum coke, calcined.                
2714.........................  Petroleum asphalt.                       

[[Page 12850]]
                                                                        
2713.11.0000.................  Petroleum coke, except calcined.         
------------------------------------------------------------------------
<SUP>1 The commodity descriptions provided in this Supplement for the most   
  part reflect those found in the U.S. Department of Commerce, Bureau of
  the Census, (1990 Edition) Statistical Classification of Domestic and 
  Foreign Commodities Exported from the United States (1990 Ed., as     
  revised through Jan. 1994). In some instances the descriptions are    
  expanded or modified to ensure proper identification of products      
  subject to export restriction. The descriptions in this Supplement,   
  rather than Schedule B Number, determine the commodity included in the
  definition of ``Petroleum'' under the Naval Petroleum Reserves        
  Production Act.                                                       
<SUP>2 Natural gas and liquefied natural gas (LNG), and synthetic natural gas
  commingled with natural gas (Schedule B Nos. 2711.11.0000,            
  2711.14.0000, and 2711.19.0000) require export authorization from the 
  U.S. Department of Energy.                                            



Supplement No. 2 to Part 754--Unprocessed Western Red Cedar

    This Supplement provides relevant Schedule B numbers and a 
commodity description of the items controlled by ECCN 1C988. The

----------------------------------------------------------------------------------------------------------------
            Schedule B No. 1 <SUP>1                          Commodity description                Unit of quantity <SUP>2 
----------------------------------------------------------------------------------------------------------------
200.3516.................................  Western red cedar (Thuja plicata) logs and       MBF                 
                                            timber.                                                             
202.2820.................................  Western red cedar lumber; rough, containing      MBF                 
                                            wane.                                                               
202.2840.................................  Western red cedar lumber; dressed or worked,     MBF                 
                                            containing wane.                                                    
----------------------------------------------------------------------------------------------------------------
<SUP>1 Schedule B Numbers are provided only as a guide to proper completion of the Shipper's Export Declaration, Form
  No. 7525 V.                                                                                                   
<SUP>2 For export licensing purposes, report commodities on Form BXA-748P in units of quantity indicated.            

Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
of Crude Oil

[The statutory material published in this Supplement is for the 
information of the reader only. See the U.S. Code for the official 
text of this material.]

Public Law 104-58

SEC. 201. EXPORTS OF ALASKAN NORTH SLOPE OIL.

    Section 28 of the Mineral Leasing Act (30 U.S.C. 185(s)) is 
amended by amending subsection(s) to read as follows:

``EXPORTS OF ALASKAN NORTH SLOPE OIL

    (1) Subject to paragraphs (2) through (6) of this subsection and 
notwithstanding any other provision of this Act or any other 
provision of laws (including any regulation) applicable to the 
export of oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization 
Act (43 U.S.C. 1652), such oil may be exported unless the President 
finds that exportation of this oil is not in the national interest. 
The President shall make his national interest determination within 
five months of the date of enactment of this subsection. In 
evaluating whether exports of this oil are in the national interest, 
the President shall at a minimum consider--
    (A) whether exports of this oil would diminish the total 
quantity or quality of petroleum available to the United States;
    (B) the results of an appropriate environmental review, 
including consideration of appropriate measures to mitigate any 
potential adverse effects of exports of this oil on the environment, 
which shall be completed within four months of the date of the 
enactment of this subsection; and
    (C) whether exports of this oil are likely to cause sustained 
material oil supply shortages or sustained oil prices significantly 
above world market levels that would cause sustained material 
adverse employment effects in the United States or that would cause 
substantial harm to consumers, including noncontiguous States and 
Pacific territories.
    If the President determines that exports of this oil are in the 
national interest, he may impose such terms and conditions (other 
than a volume limitation) as are necessary or appropriate to ensure 
that such exports are consistent with the national interest.
    (2) Except in the case of oil exported to a country with which 
the United States entered into a bilateral international oil supply 
agreement before November 26, 1979, or to a country pursuant to the 
International Emergency Oil Sharing Plan of the International Energy 
Agency, any oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization 
Act (43 U.S.C. 1652) shall, when exported, be transported by a 
vessel documented under the laws of the United States and owned by a 
citizen of the United States (as determined in accordance with 
section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802)).
    (3) Nothing in this subsection shall restrict the authority of 
the President under the Constitution, the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), the National 
Emergencies Act ( ) U.S.C. 1601 et seq.), or Part B of title II of 
the Energy Policy and Conservation Act (42 U.S.C. 6271-76) to 
prohibit exports.
    (4) The Secretary of Commerce shall issue any rules necessary 
for implementation of the President's national interest 
determination, including any licensing requirements and conditions, 
within 30 days of the date of such determination by the President. 
The Secretary of Commerce shall consult with the Secretary of Energy 
in administering the provisions of this subsection.
    (5) If the Secretary of Commerce finds that exporting oil under 
authority of this subsection has caused sustained material oil 
supply shortage or sustained oil prices significantly above world 
market levels and further finds that these supply shortages or price 
increases have caused or are likely to cause sustained material 
adverse employment effects in the United States, the Secretary of 
Commerce, in consultation with the Secretary of Energy, shall 
recommend, and the President may take, appropriate action concerning 
exports of this oil, which may include modifying or revoking 
authority to export such oil.
    (6) Administrative action under this subsection is not subject 
to sections 551 and 553 through 559 of title 5, United States Code.

MINERAL LANDS LEASING ACT

30 U.S.C. 185(u)

Limitations on Export

    Any domestically produced crude oil transported by pipeline over 
rights-of-way granted pursuant to this section, except such crude 
oil which is either exchanged in similar quantity for convenience or 
increased efficiency of transportation with persons or the 
government of an adjacent foreign state, or which is temporarily 
exported for convenience or increased efficiency of transportation 
across parts of an adjacent foreign state and reenters the United 
States, shall be subject to all of the limitations and licensing 
requirements of the Export Administration Act of 1979 (50 U.S.C. 
App. 2401 and following) and, in addition, before any crude oil 
subject this section may be exported under the limitations and 
licensing requirements and penalty and enforcement provisions of the 
Export Administration Act of 1979 the President must make and 
publish an express finding that such exports will not diminish the 
total quantity or quality of petroleum available to the United 
States, and are in the national interest and are in accord with the 
provisions of the Export Administration Act of 1979: Provided, That 
the President shall submit reports to the Congress containing 
findings made under

[[Page 12851]]
this section, and after the date of receipt of such report Congress 
shall have a period of sixty calendar days, thirty days of which 
Congress must have been in session, to consider whether exports 
under the terms of this section are in the national interest. If the 
Congress within this time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding 
concerning the national interest, further exports made pursuant to 
the aforementioned Presidential finding shall cease.

NAVAL PETROLEUM RESERVES PRODUCTION ACT

10 Sec. 7430(e)

    Any petroleum produced from the naval petroleum reserves, except 
such petroleum which is either exchanged in similar quantities for 
convenience or increased efficiency of transportation with persons 
or the government of an adjacent foreign state, or which is 
temporarily exported for convenience or increased efficiency of 
transportation across parts of an adjacent foreign state and 
reenters the United States, shall be subject to all of the 
limitations and licensing requirements of the Export Administration 
Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in addition, before 
any petroleum subject to this section may be exported under the 
limitations and licensing requirement and penalty and enforcement 
provisions of the Export Administration Act of 1979, the President 
must make and publish an express finding that such exports will not 
diminish the total quality or quantity of petroleum available to the 
United States and that such exports are in the national interest and 
are in accord with the Export Administration Act of 1979.

OUTER CONTINENTAL SHELF LANDS ACT

43 U.S.C. 1354

    (a) Application of Export Administration provisions.
    Except as provided in subsection (d) of this section, any oil or 
gas produced from the outer Continental Shelf shall be subject to 
the requirements and provisions of the Export Administration Act of 
1969. Note that the Export Administration Act of 1969, referred to 
in paragraphs (a) and (b) of the Supplement, terminated on September 
30, 1979, pursuant to the terms of that Act.
    (b) Condition precedent to exportation; express finding by 
President of no increase in reliance on imported oil or gas.
    Before any oil or gas subject to this section may be exported 
under the requirements and provisions of the Export Administration 
Act of 1969, the President shall make and publish an express finding 
that such exports will not increase reliance on imported oil or gas, 
are in the national interest, and are in accord with the provisions 
of the Export Administration Act of 1969.
    (c) Report of findings by President to Congress; joint 
resolution of disagreement with findings of President.
    The President shall submit reports to Congress containing 
findings made under this section, and after the date of receipt of 
such reports Congress shall have a period of sixty calendar days, 
thirty days of which Congress must have been in session, to consider 
whether export under the terms of this section are in the national 
interest. If the Congress within such time period passes a 
concurrent resolution of disapproval stating disagreement with the 
President's finding concerning the national interest, further 
exports made pursuant to such Presidential findings shall cease.
    (d) Exchange or temporary exportation of oil and gas for 
convenience or efficiency of transportation.
    The provisions of this section shall not apply to any oil or gas 
which is either exchanged in similar quantity for convenience or 
increase efficiency of transportation with persons or the government 
of a foreign state, or which is temporarily exported for convenience 
or increased efficiency of transportation across parts of an 
adjacent foreign state and reenters the United States, or which is 
exchanged or exported pursuant to an existing international 
agreement.

PART 756--APPEALS

Sec.
756.1  Introduction.
756.2  Appeal from an administrative action.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 756.1  Introduction.

    (a) Scope. This part 756 describes the procedures applicable to 
appeals from administrative actions taken under the Export 
Administration Act (EAA) or the Export Administration Regulations 
(EAR). (In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C). Any person directly and adversely affected 
by an administrative action taken by the Bureau of Export 
Administration (BXA) may appeal to the Under Secretary for 
reconsideration of that administration action. The following types of 
administrative actions are not subject to the appeals procedures 
described in this part 756:
    (1) Issuance, amendment, revocation, or appeal of a regulation. 
(These requests may be submitted to BXA at any time.)
    (2) Denial or probation orders, civil penalties, sanctions, or 
other actions under parts 764 and 766 of the EAR.
    (b) Definitions. Reserved.


Sec. 756.2  Appeal from an administrative action.

    (a) Review and appeal officials. The Under Secretary may delegate 
to the Deputy Under Secretary for Export Administration or to another 
BXA official the authority to review and decide the appeal. In 
addition, the Under Secretary may designate any BXA official to be an 
appeals coordinator to assist in the review and processing of an appeal 
under this part. The responsibilities of an appeals coordinator may 
include presiding over informal hearings.
    (b) Appeal procedures--(1) Filing. An appeal under this part must 
be received by the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3886C, 14th 
Street and Pennsylvania Avenue, N.W., Washington, DC 20230, not later 
than 45 days after the date appearing on the written notice of 
administrative action.
    (2) Content of appeal. The appeal must include a full written 
statement in support of appellant's position. The appeal must include a 
precise statement of why the appellant believes the administrative 
action has a direct and adverse effect and should be reversed or 
modified. The Under Secretary may request additional information that 
would be helpful in resolving the appeal, and may accept additional 
submissions. The Under Secretary will not ordinarily accept any 
submission filed more than 30 days after the filing of the appeal or of 
any requested submission.
    (3) Request for informal hearing. In addition to the written 
statement submitted in support of an appeal, an appellant may request, 
in writing, at the time an appeal is filed, an opportunity for an 
informal hearing. The Under Secretary may grant or deny a request for 
an informal hearing. Any hearings will be held in the District of 
Columbia unless the Under Secretary determines, based upon good cause 
shown, that another location would be better.
    (4) Informal hearing procedures. (i) Presentations. The Under 
Secretary shall provide an opportunity for the appellant to make an 
oral presentation based on the materials previously submitted by the 
appellant or made available by the Department in connection with the 
administrative action. The Under Secretary may require that any facts 
in controversy be covered by an affidavit or testimony given under oath 
or affirmation.
    (ii) Evidence. The rules of evidence prevailing in courts of law do 
not apply, and all evidentiary material deemed by the Under Secretary 
to be relevant and material to the proceeding, and not unduly 
repetitious, will be received and given appropriate weight.
    (iii) Procedural questions. The Under Secretary has the authority 
to limit the number of people attending the hearing, to impose any time 
or other limitations deemed reasonable, and to determine all procedural 
questions.
    (iv) Transcript. A transcript of an informal hearing shall not be 
made,

[[Page 12852]]
unless the Under Secretary determines that the national interest or 
other good cause warrants it, or the appellant requests a transcript. 
If the appellant requests a transcript, the appellant will be 
responsible for paying all expenses related to production of the 
transcript.
    (v) Report. When the Under Secretary designates another BXA 
official to conduct an informal hearing, that official will submit a 
written report containing a summary of the hearing and recommended 
action to the Under Secretary.
    (c) DecisionsT1(1)--Determination of appeals. In addition to the 
documents specifically submitted in connection with the appeal, the 
Under Secretary shall consider any recommendations, reports, or 
relevant documents available to BXA in determining the appeal, but 
shall not be bound by any such recommendation, nor prevented from 
considering any other information, or consulting with any other person 
or groups, in making a determination. The Under Secretary may adopt any 
other procedures deemed necessary and reasonable for considering an 
appeal. The Under Secretary shall decide an appeal within a reasonable 
time after receipt of the appeal. The decision shall be issued to the 
appellant in writing and contain a statement of the reasons for the 
action.
    (2) Effect of the determination. The decision of the Under 
Secretary shall be final.
    (d) Effect of appeal. Acceptance and consideration of an appeal 
shall not affect any administrative action, pending or in effect, 
unless the Under Secretary, upon request by the appellant and with 
opportunity for response, grants a stay.

PART 758--EXPORT CLEARANCE REQUIREMENTS

Sec.
758.1  Export clearance requirements.
758.2  Use of export license.
758.3  Shipper's Export Declaration (SED).
758.4  Conformity of documents for shipments under export licenses.
758.5  General destination control requirements.
758.6  Destination control statement.
758.7  Authority of the Office of Export Enforcement, the Bureau of 
Export Administration, Customs offices and Postmasters in clearing 
shipments.
758.8  Return or unloading of cargo at direction of BXA, the Office 
of Export Enforcement or Customs Service.
758.9  Other applicable laws and regulations.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 758.1  Export clearance requirements.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Responsibility of licensee, exporter and agent. (1) If you are 
issued a BXA license, or you rely on a License Exception described in 
part 740 of the EAR, you are responsible for the proper use of that 
license or License Exception and for the performance of all of its 
terms and conditions.
    (2) If you export without either a license issued by BXA or a 
License Exception, you are responsible for determining that the 
transaction is outside the scope of the EAR or the export is designated 
as ``No License Required'' as described in paragraph (a)(3) of this 
section.
    (3)(i) ``No License Required''. Items that are listed on the 
Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) 
but that do not require a license by reason of the Country Chart 
contained in Supplement 1 to part 738 of the EAR, and items designated 
EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope of the EAR'') must 
be designated as ``NLR'', or ``no license required'', on your shipping 
documents in accordance with the provisions of this part.
    (ii) NLR notation. Entering the symbol NLR is a representation to 
the U.S. Government that the items being exported are listed on the CCL 
but do not require a license by reason of the Country Chart or that 
they are within the scope of EAR99 (See Sec. 734.3(c) of the EAR 
entitled ``Scope of the EAR''); that they do not require a license 
under General Prohibitions One (Exports and Reexports), Two (Parts and 
Components Reexports), or Three (Foreign-produced Direct Product 
Reexports); that General Prohibitions Four through Ten do not apply to 
the given export, reexport, or other activity; and that the items are 
subject to the EAR.
    (4) License Exception symbol. Entering a License Exception symbol 
on an export control document is a representation to the U.S. 
Government that the transaction meets all of the terms and conditions 
of the License Exception cited. (See part 740 of the EAR for details 
regarding License Exceptions.)
    (5) Software and technology not subject to the EAR. If you are 
exporting software or technology that is outside the scope of the EAR 
as described in Secs. 734.7 through 734.11 of the EAR, you may use the 
symbol TSPA. Use of this symbol is optional; however, if you enter it 
on an export control document, you are making a representation to the 
U.S. Government that the technology or software is outside the scope of 
the EAR.
    (b) Forwarding agent.--(1) Authorizing a forwarding agent. A 
forwarding agent is a person the exporter authorizes to perform 
services that facilitate the export described on the Shipper's Export 
Declaration (SED). The agent must be authorized to act on behalf of the 
exporter either for the specific transaction for which the agent is 
submitting the SED or under a general power of attorney. The Foreign 
Trade Statistics Regulations of the Bureau of the Census (15 CFR part 
30) provide the specific requirements for obtaining authorization as a 
forwarding agent.
    (2) Forwarding agent as licensee. If the forwarding agent is 
appointed at the suggestion of a foreign buyer, the seller may insist 
that the agent apply for the export license. See Sec. 748.4(a)(1) of 
the EAR which defines parties to a transaction.
    (3) Record and proof of agent's authority. The power-of-attorney or 
other authorization from the exporter must be retained on file in the 
forwarding agent's office while the authorization is in force and for a 
period of five years after the last action taken by the forwarding 
agent under the authority. During this retention period, the forwarding 
agent must make its delegation of authority from the exporter available 
for inspection on demand, in accordance with the provisions of 
Sec. 762.6 of the EAR. This recordkeeping and inspection requirement 
also applies to any redelegation of the forwarding agent's authority 
and to any person to whom the forwarding agent redelegates its 
authority. (For further recordkeeping requirements see part 762 of the 
EAR).
    (c) Responsibility for compliance. Acting through a forwarding 
agent, or other agent or delegation or redelegation of authority, does 
not relieve anyone of responsibility for compliance with the EAR. 
Forwarding agents, carriers and others who participate in transactions 
that are subject to the EAR are also responsible for complying with the 
EAR.
    (d) Exports by U.S. Mail.--(1) Exports made under a license issued 
by BXA. Before making an export by U.S. Mail that is authorized by a 
license issued by BXA, you must enter the license number on the address 
side of the parcel and submit a properly executed SED to the post 
office at the place of mailing, when required by the regulations in 
this part and/or the Foreign Trade Statistics

[[Page 12853]]
Regulations of the U.S. Bureau of the Census. <SUP>1

    \1\ The Shipper's Export Declaration (U.S. Department of 
Commerce form 7525-V) may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, DC 20402, or 
it may be privately printed. Form 7525-V-Alt (Intermodal), must be 
privately printed. Privately printed forms must strictly conform to 
the official form in all respects. Samples of these forms may be 
obtained from the Bureau of the Census, Washington, DC 20233, local 
Customs offices, and the U.S. Department of Commerce District 
Offices.
---------------------------------------------------------------------------

    (2) Shipments without a license. The requirements of this paragraph 
apply whenever you export items that do not require a license under the 
EAR. These requirements apply regardless of whether your transaction 
does not require a license because the item you are going to ship is 
encompassed with EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope 
of the EAR''), because the item, although on the list, does not require 
a license to be exported to the destination to which you intend to ship 
or because the transaction qualifies for a License Exception as 
described in part 740 of the EAR.
    (i) Shipments to Canada for consumption therein. An SED is not 
required for exports of items to Canada if the items are for 
consumption in Canada and the export transaction does not require a 
license from BXA. Note that if the item you are exporting to Canada is 
controlled by another government agency, the regulations of that agency 
may require you to file a SED.
    (ii) Shipments to Puerto Rico or U.S. territories or possessions. 
Exports of items to Puerto Rico or the U.S. territories or possessions 
do not require a license issued by BXA. However, the regulations of the 
Census Bureau (15 CFR part 30) may still require you to file a SED.
    (iii) Shipments valued over $500. When mailing an item from one 
business concern to another where the total value of the items being 
shipped exceeds $500, you must present an executed SED to the post 
office at the place of mailing unless the EAR or the Bureau of the 
Census Foreign Trade Statistics Regulations specifically provide an 
exception to this requirement. If either the exporter or recipient is 
not a business concern, no SED is required.
    (iv) Designation on SED and/or parcel. If you are exporting an item 
that is encompassed within EAR99 (See Sec. 734.3(c) of the EAR entitled 
``Scope of the EAR''), or one that is listed on the CCL but no license 
is required to the destination to which you are shipping, or you are 
exporting pursuant to a License Exception, as described in part 740 of 
the EAR, you must enter the appropriate symbol indicating the absence 
of a license requirement either NLR, meaning ``No License Required'' or 
the applicable License Exception symbol, on the SED and on the address 
side of the parcel along with the phrase ``Export License Not 
Required.'' If your transaction is one for which you are not required 
to file a SED, you must enter the appropriate symbol NLR, meaning no 
license required or of the applicable License Exception on the address 
side of the parcel along with the phrase ``Export License Not 
Required.'' If you are exporting technology or software that is outside 
the scope of the EAR as described in Sec. 734.7 through 734.11 you may 
enter the symbol TSPA.
    (A) By entering the symbol NLR you are representing to the U.S. 
Government that the items you are exporting are listed on the CCL (See 
Supplement No. 1 to part 774 of the EAR) but do not require a license 
by reason of the Country Chart (Supplement No. 1 to part 738 of the 
EAR) or because they are encompassed within the EAR99 (See 
Sec. 734.3(c) of the EAR entitled ``Scope of the EAR''); that they do 
not require a license under General Prohibitions One (Exports and 
reexports of controlled items to listed countries), Two (Parts and 
Components Reexports), or Three (Foreign Produced Direct Product 
Reexports); that General Prohibitions Four through Ten do not apply to 
the given export, reexport, or other activity; and that the item is 
subject to the EAR.
    (B) By entering a License Exception symbol, you are representing to 
the U.S. Government that your transaction meets all of the terms and 
conditions of the License Exception you are using. (See part 740 of the 
EAR for details regarding License Exceptions).
    (C) By entering the symbol TSPA you are representing to the U.S. 
Government that the technology or software you are exporting is outside 
the scope of the EAR.
    (v) Gift parcels. If you are sending a gift parcel pursuant to the 
requirements of Sec. 746.16 of the EAR, you must enter the phrase 
``Gift--export license not required'' on any customs declaration 
documents and on the address side of the parcel.
    (vi) Software and technology. If you are exporting software or 
technology, the export of which is authorized under the License 
Exceptions in Sec. 740.17 through Sec. 740.21 of the EAR, you do not 
need to make any notation on the package. If you are exporting software 
or technology that is outside the scope of the EAR, check to see if any 
other agency's regulations require specific markings on the package.
    (3) When you enter any of the symbols or phrases referred to in 
paragraph (d) of this section on the documents or packages, you are 
certifying to the post office and to BXA that you are exporting the 
package in compliance with all of the terms and provisions of an 
applicable License Exception or other authority to export.
    (e) Exports by means other than U.S. Mail. (1) When SEDs are 
required to be submitted, the exporter or the exporter's agent must 
present a duly executed SED to the exporting carrier before the vessel, 
aircraft, or overland transport depart.
    (i) Exemptions to SED. A SED is not required for:
    (A) Any shipment, other than a shipment made under a license issued 
by BXA, to any country in Country Group B (See Supplement No. 1 to part 
740 of the EAR) or to the People's Republic of China if the shipment is 
valued at $2,500 or less per Schedule B Number. The schedule B number 
of an item is that shown in the current edition of Schedule B, 
Statistical Classification of Domestic and Foreign Commodities Exported 
from the United States. In this Sec. 758.1(e), ``shipment'' means all 
items classified under a single Schedule B Number, shipped on the same 
carrier, from one exporter to one importer. The Foreign Trade 
Statistics Regulations of the Bureau of the Census (15 CFR part 30) 
shall govern the valuation of items when determining whether a shipment 
meets the $2,500 threshold of this Sec. 758.1(e)(1)(i)(A).
    (B) Any shipment reported under the provisions of the Monthly 
Reporting Procedure (Sec. 758.3(o) of this part); or
    (C) Any shipment made under any other exception to the SED 
requirements found in Subpart D of the Bureau of the Census' Foreign 
Trade Statistics Regulations. See Supplement No. 1 to this part 758.)
    (ii) Exceptions from SED requirements. (A) Statement on shipping 
documents. If you are exempt by paragraph (e)(1) of this section from 
the requirement of filing a SED, the Bureau of the Census Foreign Trade 
Statistics Regulations (FTSR) (15 CFR 30.50), require you to make a 
statement on the bill of lading, air waybill, or other loading document 
describing the basis for the exemption and referencing the specific 
section of the FTSR where the exemption is provided, unless the 
exemption is based on value and destination. If the exemption is based 
on the value and destination of your shipment, you must state the basis 
for the exemption, but you do not have to cite a reference to the 
specific section of the FTSR containing the exemption.

[[Page 12854]]

    (B) Monthly reporting procedures. (1) All forwarders or brokers who 
use the monthly reporting procedures described in FTSR Sec. 30.39 (15 
CFR 30.39) on behalf of exporters who are not themselves exempt from 
the individual filing requirement must also include on the bill of 
lading, air waybill (including house air waybill), or other loading 
document either the number of and expiration date of an export license 
issued by BXA, or the appropriate symbol indicating the inapplicability 
of an export license requirement (either NLR, meaning ``No License 
Required'' or of the applicable License Exception, from part 740 of the 
EAR).
    (2) The notation required by paragraph (e)(1)(ii)(B)(1) of this 
section applies to any bill of lading or other loading document, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, this requirement does not 
apply to a ``master'' bill of lading or other loading document issued 
by a carrier to cover a consolidated shipment. The bill of lading or 
other loading document must be available for inspection along with the 
goods or data prior to lading on the carrier.
    (2) Export carrier SED information. The exporting carrier, or if 
none is utilized, the exporter or agent is responsible for the accuracy 
of the following items of information (where required) on the SED:
    (i) Name of carrier (including flag of vessel),
    (ii) U.S. Customs port of export,
    (iii) Method of transportation,
    (iv) Foreign port of unloading,
    (v) Bill of lading or air waybill number, and
    (vi) Whether or not containerized.
    (3) Exports not requiring a license. Even if your shipment does not 
require a license from BXA, it may still require a SED. Before 
shipping, check the Bureau of the Census Foreign Trade Statistics 
Regulations for the complete SED requirements.
    (f) Shipments transiting Canada en route to other countries--(1) 
Shipments moving under individual SED. When an export to a foreign 
country is made in transit through Canada, and the shipment is one for 
which an individual SED is required by this part 758, the U.S. exporter 
must submit to the Canadian Customs authorities at the Canadian port of 
entry a copy of the U.S. SED, Form 7525-V, certified by the exporter as 
``A True Copy'' of the original SED.
    (2) Shipments for which individual SED are not required. When an 
export to a foreign country is made in transit through Canada, and the 
shipment is one for which an individual SED is not required because:
    (i) The forwarder or broker is authorized to report export 
information to Census by means other than an individual SED; or
    (ii) The shipment qualifies for a specific exemption (listed in 
Subpart D of the Census Bureau Foreign Trade Statistics Regulations), 
the forwarder or broker must include the number of and expiration date 
of the license issued by BXA, or the appropriate symbol indicating the 
inapplicability of an export license requirement (either NLR, meaning 
``No License Required'' of the applicable License Exception from part 
740 of the EAR on the bill of lading or other loading document as 
directed in paragraph (e)(2) of this section). The bill of lading or 
other loading document properly annotated with respect to the FTSR SED 
exemption or exception, along with the license authorization, when 
required, must be displayed to the Canadian Customs authorities at the 
Canadian port of entry and a copy provided, if requested by the 
Canadian authorities.


Sec. 758.2  Use of export license.

    (a) License valid for shipment from any port. A license issued by 
BXA authorizes exports from the United States from any U.S. port of 
export unless the license notes otherwise. Items that leave the United 
States at one port, cross adjacent foreign territory, and reenter the 
United States at another port before final export to a foreign country 
will be treated as an export from the last U.S. port of export.
    (b) Shipments against expiring license. (1) Any item that has not 
departed from the last U.S. port of export by midnight of the 
expiration date of the license may not be exported under that license 
unless the shipment meets the requirements of paragraph (b)(1)(i) or 
(ii) of this section.
    (i) BXA grants an extension; or
    (ii) Prior to midnight of the expiration date of the license, the 
items:
    (A) Were laden aboard the vessel; or
    (B) Were located on a pier ready for loading and not for storage, 
and were booked for a vessel that was at the pier ready for loading; or
    (2) When the vessel is expected to be available at the pier for 
loading before the license expires, but exceptional and unforeseen 
circumstances delay it, the items may be exported without an extension 
of the license, if in the judgment of the U.S. Customs Service or BXA, 
undue hardship would otherwise result.
    (c) Reshipment of undelivered items. If the consignee does not 
receive an export made under a license because the carrier failed to 
deliver it, the exporter may reship the same or an identical item 
subject to the same limitations as to quantity or value as described on 
the license to the same consignee and destination under the same 
license. Before reshipping, the exporter must submit to the OEXS 
satisfactory evidence of the original export and of the delivery 
failure, together with a satisfactory explanation of the delivery 
failure. If an item is to be reshipped to any person other than the 
original consignee, the shipment is deemed to be a new export and is 
subject to all current EAR regarding the specific item and destination.


Sec. 758.3  Shipper's Export Declaration (SED).

    (a) SED presentation requirement. Both the Foreign Trade Statistics 
Regulations of the Census Bureau (15 CFR part 30) and these Export 
Administration Regulations require that SED's be submitted to the U.S. 
Government. There are a few exceptions to this rule, but if you are 
required to submit a SED you must prepare it in accordance with the 
rules of the Foreign Trade Statistics Regulations (FTSR) and present 
the number of copies specified in the FTSR at the port of export.
    (b) SED is a statement to the U.S. Government. Your SED is a 
statement to the U.S. Government in which you assert that all of the 
information shown on the SED is true. You may execute and submit the 
SED only if you are the exporter or the duly authorized forwarding 
agent of an exporter.
    (c) Limitation on time when SED may be used. No one may use a SED 
to export, or facilitate or effect an export, after the expiration of 
the applicable license or after the termination of the applicable 
License Exception or provisions of the EAR that authorize export 
without a license, except as provided in Sec. 750.7(f) (License 
validity period) of the EAR and Sec. 758.2(b) (Shipments against 
expiring license) of this part.
    (d) Additional copies of the SED. You are required to submit 
additional copes of the SED when:
    (1) BXA or one of its component offices asks you to send it copies 
of the SED for exports:
    (i) Authorized by a license (see paragraph (l) of this section);
    (ii) Authorized by a Special Comprehensive License (see 
Sec. 752.16(a)(5) of the EAR; or
    (iii) The items are controlled for short supply reasons (see part 
754 of the EAR); or

[[Page 12855]]

    (iv) Required by Sec. 758.1(f) (shipments transiting Canada) of 
this part.
    (2) [Reserved]
    (e) Statements on SED. Whenever a SED is presented to a carrier, a 
customs office, or a postmaster, the exporter represents that:
    (1) All statements and information on the SED have been furnished 
by the exporter or on the exporter's behalf to effect an export under 
the provisions of the EAR;
    (2) Export of the items described on the SED is authorized under 
the ``No License Required'' provisions of the EAR as described in 
Sec. 758.1(a) of this part, a License Exception described in part 740 
of the EAR or the license identified on the SED;
    (3) Statements contained on the SED are consistent with the 
contents of the license or the terms, provisions, and conditions of the 
applicable License Exception or of the applicable ``No License 
Required'' provisions of the EAR as described in Sec. 758.1(a) of this 
part; and
    (4) All other terms, provisions, and conditions of the EAR 
applicable to the export have been met.
    (f) Items that may be listed on the same SED. (1) General. Except 
as described in paragraph (f)(2) of this section, more than one item 
may be listed on the same SED provided they are contained in one 
shipment on board a single carrier and are going from the same exporter 
to the same consignee. Even if some of the items are being shipped 
under authority of a license and others under a License Exception or 
the ``No License Required'' provisions of the EAR (as described in 
Sec. 758.1(a) of this part), they may still be shown on one SED. For 
the second and subsequent authorizations used, the applicable license 
number and expiration date, License Exception symbol, or the ``No 
License Required'' symbol (NLR) must be shown along with the 
descriptions (including quantity, if required, Schedule B Number, and 
value) to which each authorization applies, in the designated spaces on 
a separate SED Continuation Sheet. The following apply for notations 
made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is 
authorized by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of 
the applicable provisions of paragraph (a)(3) of Sec. 758.1 of this 
part.
    (2) Exception. Separate SED's must be prepared and presented for 
each vehicle when more than one vehicle is used to make the shipment. 
Customs Directors may waive this requirement if a shipment is made 
under a single bill of lading or other loading document and all the 
items listed on the SED are cleared simultaneously.
    (g) Schedule B number and item description--(1) Schedule B number. 
You must enter the Schedule B number, as shown in the current edition 
of Schedule B, Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States, in the designated column 
of the SED regardless of whether the shipment is being exported under 
authority of a license issued by BXA, a License Exception described in 
part 740 of the EAR, or the ``No License Required'' provisions of the 
EAR as described in Sec. 758.1(a) of this part.
    (2) Item description for exports under a license. (i) General. If 
your export is being made under the authority of a license issued by 
BXA, you must enter the item description shown on the license on the 
SED. However, if part of the description on the license is underlined, 
you need place only the underlined portions on the SED. The item 
description on the license will be stated in CCL terms, which may be 
inadequate to meet Census Bureau requirements. In this event, the item 
description you place on the SED must give enough additional detail to 
permit verification of the Schedule B number (e.g., size, material, or 
degree of fabrication).
    (ii) Distinguishing characteristics or specifications. If a 
commodity classification in Schedule B has instructions such as 
``specify by name,'' ``state species,'' etc., you must furnish that 
information in the column of the SED provided for the commodity 
description. When a single SED covers more than one item classifiable 
under a single classification carrying the ``specify by name'' or 
similar requirement, you must enter each item separately in this 
column. However, if more than five items are involved, all classifiable 
under one Schedule B number, only the five items of greatest value in 
the classification need be shown separately. Separate quantities, 
values, and shipping weights for individual items are not required in 
either case.
    (3) Item description for License Exception shipments or shipments 
for which no license is required. For items that may be exported under 
the authority of a License Exception, or under the ``No License 
Required'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part), you must enter a description in sufficient detail to permit 
review by the U.S. Government and verification of the Schedule B number 
entered on the SED.
    (h) License number or other authorization designation. (1) Exports 
under authority of a license issued by BXA. You must show the license 
number and expiration date, the Export Control Classification Number 
(ECCN) and the item description, in the designated spaces of a SED 
covering an export under a license issued by BXA (The space for the 
item description on the SED form may be headed ``commodity 
description''). If you intend to include other items on the SED that 
may be exported under a License Exception, or under the ``No License 
Required'' provisions of the EAR, (as described in Sec. 758.1(a) of 
this part) you must show the License Exception or ``NLR'' symbol, along 
with the specific description (quantity, Schedule B, value) of the 
item(s) to which the authorization applies in the designated spaces on 
a separate SED continuation sheet.
    (2) Exports not needing a license. In addition to the item 
description, the appropriate License Exception symbol, or the ``No 
License Required'' symbol (NLR) must be shown in the appropriate column 
of each SED or SED continuation sheet covering a shipment under 
authority of a License Exception (see part 740 of the EAR), or ``No 
License Required'' provisions of the EAR (as described in Sec. 758.1(a) 
of this part). If several authorizations are to be listed on one SED, 
the SED and continuation sheets must be completed as described in 
paragraph (f)(1) of this section. If the item(s) will be exported under 
the provisions of LST (License Exceptions GBS, CIV, LVS) or under the 
``NLR'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part) and the item(s) are covered by entries on the Commerce Control 
List that have the column identifier ``NS Column 2'' controlled for 
``NS'' reasons, the ECCN must also be shown in the designated space on 
the SED or SED continuation sheet. The following apply for notations 
made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is 
authorized by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of 
the applicable provisions of paragraphs (a)(3) through (a)(4) of 
Sec. 758.1 of this part.
    (3) If you are exporting technology or software that is outside the 
scope of the EAR as described in Secs. 734.7 through 734.11 of the EAR, 
you may enter the symbol TSPA on the SED. Use of this

[[Page 12856]]
symbol is optional, however, if you enter it, you are representing to 
the U.S. Government that the software or technology you are exporting 
is outside the scope of the EAR.
    (i) Optional ports of unlading. (1) Applicability. If, prior to the 
departure of the exporting carrier, the exporter does not know at what 
port the shipment will be unloaded, the exporter may designate optional 
ports of unlading on the SED and bill of lading or air waybill in 
accordance with the provisions of this paragraph. There are 
restrictions on the countries in which these optional ports may be 
located. The restrictions depend on whether the export is authorized 
under the ``No license Required'' provisions of the EAR (as described 
in Sec. 758.1(a) of this part), the License Exceptions described in 
part 740 of the EAR, or a license (See paragraph (j)(3) of this 
section).
    (2) Exemptions. You may never designate an optional port of 
unlading for a shipment destined directly or indirectly to Country 
Group D:1 in Supplement No. 1 to part 740 of the EAR (except for the 
People's Republic of China), Libya, Cuba, or North Korea.
    (3) Shipments for which no license is required or which are 
authorized by a License Exception. (i) For exports under the authority 
of the ``No License Required'' provisions of the EAR (as described in 
Sec. 758.1(a) of this part), if the exporter does not know which of 
several countries in Country Group B or the People's Republic of China 
is the country of ultimate destination, the exporter may name optional 
ports of unlading in one or more of these countries.
    (ii) When an export under any License Exception is shipped in 
transit through a country other than the country of ultimate 
destination, the exporter may designate optional ports of unlading in 
one or more countries, together with the name and address of the 
intermediate consignee in each country designated.
    (4) Restrictions on optional ports of unlading. The optional ports 
of unlading, which the exporter designates on the SED pursuant to 
paragraph (i)(3)(i) of this section, must be in a country to which the 
item being unloaded may be exported directly from the United States 
under the same or another applicable ``No License Required'' provision 
of the EAR (described in Sec. 758.1(a) of this part), or License 
Exception contained in the EAR.
    (5) Shipments under a license issued by BXA. For exports under a 
license, optional ports of unlading are restricted to the country of 
ultimate destination, unless either the transaction complies with the 
provisions of Sec. 750.7 of the EAR dealing with continuity of 
shipments, or the license designates intermediate consignees in other 
countries. In the latter case, the optional ports of unlading must be 
designated as optional intransit points on the SED, or if there is no 
SED, on the Shipper's Letter of Instructions, or, if there is neither, 
the optional port of unlading must appear on another document 
containing instructions that the exporter conveys (either directly or 
through an agent) to the carrier, and on the bill of lading or air 
waybill.
    (6) Correcting the SED. As soon as the exporter, or the exporter's 
forwarding agent or carrier determines at which port the shipment is to 
be unloaded (whether in the country of ultimate destination or in a 
country of transit), that person must correct the SED to show the 
specific port of unloading and the name and address of the intermediate 
consignee to whom delivery is to be made. An intermediate consignee 
must be shown if the port of unloading is located in a country other 
than the country of destination. If the export is unloaded at more than 
one port, the quantity and value unloaded at each port and the name and 
address of each intermediate consignee must be given. The procedures 
for correcting and filing SEDs may be found in paragraph (n) of this 
section.
    (j) Signature on SED. The exporter or the exporter's authorized 
forwarding agent, or an authorized employee of either, may sign the 
SED. In general, the requisite authority rests with employees who, by 
their official titles, are apparently vested with power to deal with 
exports, such as export managers or such corporate officers as the 
president, vice president, treasurer, and secretary of a corporation, 
any partner of a partnership, and any responsible head of any other 
form of private or quasi-governmental organization, and assistant 
officers. The signature of such person, whether that of the exporter or 
authorized agent or employee, constitutes a representation by the 
exporter that all statements and information in the SED are true and 
correct. In addition, if the signature is that of the forwarding agent, 
or the forwarding agent's duly authorized officer or employee, such 
signature constitutes a like representation by the forwarding agent.
    (k) Attachment to SED. (1) If you need additional space for any 
information on the SED, you may use additional copies of the SED or 
copies of the continuation sheet. In such cases, only one SED need be 
signed. You must number the additional sheets in sequence and securely 
attach them to the executed SED. You must insert the following 
statement on the last line of the description line of the SED form 
itself:

    This SED consists of this sheet and ________ continuation 
sheets.

    (2) No portion of any form attached as a continuation sheet may be 
torn off or removed.
    (l) Special requirements for additional information and documents. 
(1) A license may bear on its face a requirement to submit a SED or 
other documents (or information) to the Office of Export Enforcement in 
addition to that furnished when the application was filed. The exporter 
and the person submitting the documents represent that the documents 
are complete, truthful and accurate. The Export Administration 
Regulations prohibit the making of false representations to the U.S. 
Government in any export control matter (see Sec. 764.2(g) of the EAR). 
The licensee must furnish the documents to: Office of Export 
Enforcement, Room H-4520, U.S. Department of Commerce, 14th Street and 
Constitution Ave., NW., Washington, DC 20230.
    (2) When required, the licensee must:
    (i) Prepare one copy of the SED in addition to the number of copies 
otherwise required;
    (ii) Enter the additional information called for by the license in 
the space between the column provided for marks and numbers of the 
shipment and the column provided for its value on all copies of the 
SED; and
    (iii) Unless otherwise specified on the license, attach the 
required documents (either original or certified copy) to the extra 
copy of the SED.
    (m) SED for shipments moving in- transit. (1) Applicability. Use 
the SED for In-transit Goods, Commerce Form 7513,<SUP>2 for the 
following types of transactions:

    \2\  Form 7513 may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, D.C. 20402, 
the local customs offices, or may be privately printed.
---------------------------------------------------------------------------

    (i) Items departing the United States by vessel, which transited 
through, or transshipped in, ports of the United States, destined from 
one foreign country or area to another.
    (ii) Foreign merchandise exported from a General Order Warehouse 
and the export of foreign-origin merchandise that was rejected after 
government inspection or examination. Shipments in bond transiting the 
United States being exported by means of any carrier other than a 
vessel may be cleared for export without presenting a Form 7513, unless 
a license is required for the export.

[[Page 12857]]

    (2) Exports from Foreign Trade Zones. You may not use Form 7513 for 
any exports from Foreign Trade Zones. Such shipments require the filing 
of the SED (Form 7525-V), unless otherwise exempted, with the 
applicable zone number reported on the Document.
    (3) Additional information. The following additional information 
must be entered on a SED for In-transit Goods:
    (i) The name and address of the intermediate consignee in a foreign 
destination, if any, must be shown below the description of the items.
    (ii) Underneath the name and address of the intermediate consignee, 
one of the following statements, whichever is appropriate, must be 
entered:
    (A) For intransit shipments of foreign-origin merchandise (see part 
772 of the EAR for a definition of ``foreign-origin,''), enter the 
following statement:
    The merchandise described herein is of foreign-origin.
    (B) For intransit shipments of domestic (U.S.) merchandise, enter 
the following statement:
    The merchandise described herein is of the growth, production, or 
manufacture of the United States.
    (C) For intransit shipments of items of U.S.-origin eligible for 
License Exception TUS (See Sec. 740.9 of the EAR), enter the following 
statement:
    The merchandise described herein is of the growth, production, or 
manufacture of the United States, but has been so altered by further 
processing, manufacture, or assembly in a foreign country that it has 
either been substantially enhanced in value, or has lost its original 
identity with respect to form.
    (iii) The items must be described in terms of Schedule B, including 
the appropriate Schedule B number.
    (4) See Sec. 30.8 of the Foreign Trade Statistics Regulations (15 
CFR 30.8) for additional requirements concerning the information that 
must be placed on a SED for In-transit Goods.
    (n) Correction, change, alteration, or amendment of SED. (1) 
Methods of changing SED's. The exporter or the exporter's agent must 
report corrections, cancellations, additions or amendments to 
information reported on SEDs to the Customs Director at the port of 
exportation (or, in the case of mail shipments, to the Postmaster at 
the post office where the shipment was mailed) as soon as the need for 
such changes is determined. See the Foreign Trade Statistics 
Regulations (15 CFR part 30) for additional information about how to 
correct SEDs and file the corrections. If you are required by paragraph 
(l) of this section to file a copy of the original SED with the Office 
of Export Enforcement (OEE), a copy of the changed SED should be sent 
to OEE at the address shown in paragraph (l) of this section with the 
words ``Correction Copy'' conspicuously shown in the upper right 
portion of the form.
    (2) Responsibility. Nothing in this section relieves you or any 
person or firm making changes on the SED from responsibility for any 
such changes. Acceptance of a changed SED by the Customs office does 
not imply approval of any act involved in the shipment or acceptance of 
the truth or accuracy of the information provided.
    (o) Summary monthly reports in lieu of individual SED's. (1) Scope. 
This paragraph contains only basic information about the monthly filing 
procedures for the SED. Details of the procedure may be found in 
Sec. 30.39 of the Foreign Trade Statistics Regulations (FTSR) of the 
Bureau of the Census (15 CFR 30.39). Exporters interested in the 
procedure should consult Sec. 30.39 of the FTSR to ascertain 
qualifications, how to apply for the privilege of participating, how to 
file electronically after approval is given, and other pertinent facts.
    (2) Applicability. Approved parties may file monthly SEDs with the 
Bureau of the Census for export to destinations in Country Groups B and 
D:1 (see Supplement No. 1 to part 740 of the EAR).
    (3) How to request monthly reporting privileges. (i) Addresses. (A) 
A request for the privilege of participating in monthly reporting 
procedures should be forwarded to: Foreign Trade Division, Bureau of 
the Census, Washington, D.C. 20233.
    (B) A copy of all requests must be sent to: Office of Export 
Enforcement, Room H-4616, U.S. Department of Commerce, 14th St. and 
Constitution Ave., NW., Washington, DC 20230.
    (ii) Certification requirements. The request must include the 
following certification by the applicant:

    I (We) certify that I (we) have established adequate internal 
procedures and safeguards to assure compliance with the requirements 
set forth in the U.S. Department of Commerce Export Administration 
Regulations and Foreign Trade Statistics Regulations. Among other 
things, these procedures and safeguards assure:

    (1) A proper determination as to whether a license is required 
for a particular export;
    (2) Actual receipt of the export license, if required, before 
the shipment is exported;
    (3) Compliance with all the terms of the license, License 
Exception, or NLR provisions of the EAR as applicable;
    (4) Return of licenses to BXA in accordance with Sec. 750.8(b) 
of the Export Administration Regulations, if requested;
    (5) Compliance with the destination control statement provisions 
of Secs. 758.5 and 758.6 of the Export Administration Regulations;
    (6) Compliance with the prohibition against export transactions 
that involve persons who have been denied U.S. export privileges; 
and
    (7) Compliance with the recordkeeping requirements of part 762 
of the EAR and, in addition, I (we) agree that my (our) office 
records will be made available for inspection by the Bureau of the 
Census, BXA or the U.S. Customs Service, upon request, to verify 
that a given shipment was properly included in a particular monthly 
report.

    (4) Exporter's agent. If the exporter intends to authorize a 
forwarding agent to file electronically on the exporter's behalf, the 
exporter's request must include the name and address of each such 
forwarding agent.
    (5) Authorization by Census to use monthly reporting procedure. Any 
authorization to file summary monthly reports in lieu of individual 
SEDs may be granted only by the Bureau of the Census with the 
concurrence of BXA.
    (6) Export clearance. (i) Destination control statement. In 
addition to the exporter's responsibility for assuring that the proper 
destination control statement is placed on the commercial invoice as 
required by Sec. 758.6 of this part, the exporter or the exporter's 
forwarding agent is responsible for assuring that the carrier places 
the proper destination control statement on the related bill of lading 
or air waybill.
    (ii) Detention and examination. Shipments being reported under the 
summary filing procedure described in this paragraph are subject to 
inspection, examination and detention, as provided in Sec. 758.7 of 
this part, whenever an official of BXA, a customs officer, or a 
postmaster deems such action necessary to assure compliance with the 
EAR.
    (7) Revocation of authorization. An authorization to file summary 
monthly reports in lieu of individual SED's, granted under the 
provisions of Sec. 30.39 of the Foreign Trade Statistics Regulations 
(15 CFR 30.39) and this paragraph, may be revoked, suspended, or 
revised at any time.
    (8) Effect of other provisions. Insofar as consistent with the 
provisions of this paragraph that relate specifically to filing 
electronically in lieu of individual SED's, the other provisions of 
this part 758 apply to exports reported under this procedure.


Sec. 758.4  Conformity of documents for shipments under export licenses

    (a) Applicability. The rules of conformity in this section apply to 
shipping documents used in connection with any shipment under the 
authority

[[Page 12858]]
of a license issued by BXA except ``master'' air waybills issued by 
consolidators. These rules apply to any individual air waybill issued 
by a consolidator (indirect carrier) for an export included in a 
consolidated shipment and to any air waybill issued by anyone in 
connection with an export not included in a consolidated shipment.
    (b) Compliance. You may not issue, prepare, or procure a bill of 
lading that is contrary to the provisions of this section. Officials of 
BXA and the U.S. Customs Service are authorized to require any document 
or to use any other appropriate methods to ensure compliance with the 
rules of conformity in this section.
    (c) Rules of conformity. (1) General. The following documents must 
be consistent with each other:
    (i) The license issued by BXA;
    (ii) One of the following applicable documents:
    (A) The SED;
    (B) If there is no SED, the Shipper's Letter of Instructions; or
    (C) If there is neither, another document containing instructions 
that the exporter conveys (either directly or through an agent) to the 
carrier; and
    (iii) The outbound bill of lading (including a railroad through 
bill of lading) covering a particular export shipment must be 
consistent with one another.
    (2) Signs of inconsistent documents. The bill of lading, whether in 
negotiable or nonnegotiable form, is not consistent with those other 
documents if:
    (i) It does not provide for delivery of the shipment (cargo) at a 
port located in the country of either the ultimate or intermediate 
consignee named in the documents described in paragraph (c)(1)(ii) of 
this section;
    (ii) It contains any indication that the shipment is intransit to a 
country of ultimate destination different from that named in the 
appropriate one of the documents described in paragraph (c)(1)(ii) of 
this section, or that the shipment is not for consumption in such 
country of ultimate destination. For example, it would be inconsistent 
to consign a shipment to the ultimate destination with a qualifying 
phrase indicating the shipment is ``in transit'' at that destination, 
or to consign the shipment to a free zone or free port;
    (iii) It names as shipper any person other than the licensee (the 
person to whom a license is issued) or the licensee's duly authorized 
forwarding agent. Where shipments from more than one licensee are 
consolidated on a single bill of lading, the shipper named on the bill 
of lading must also appear as the authorized forwarding agent for each 
exporter on each document described in paragraph (c)(1)(ii) of this 
section.
    (iv) The name and address of the ultimate consignee are not shown 
either in the space provided for ``consignee'' or in the body of the 
bill of lading under the caption ``ultimate consignee and notify 
party'' or, in the case of the air waybill, under the caption ``also 
notify.'' However, where shipments to more than one ultimate consignee 
are consolidated on one bill of lading and not all are shown in the 
body of the bill of lading, the name of the intermediate consignee 
(customs broker or consolidator's agent in the foreign country) who 
will receive and distribute the items to the ultimate consignees must 
appear on the bill of lading, the export license(s), and documents 
listed in paragraph (c)(1)(ii) of this section.
    (3) Additional rules for negotiable bills of lading. A negotiable 
bill of lading (an ``order'' bill of lading) is deemed consistent with 
the appropriate one of the documents described in paragraph (c)(1)(ii) 
of this section only if the consignee or order party named on the bill 
of lading is also named in the SED, the Shipper's Letter of 
Instructions or the other document.
    (i) Sometimes ``order'' bills of lading consign the items they 
cover to the order of the shipper, to the order of an intermediate 
consignee such as a bank, foreign freight forwarder, or other 
intermediary, or to the order of a purchaser who is not the same person 
as the ultimate consignee. An ``order'' bill of lading issued in any of 
these forms constitutes a representation by the shipper that:
    (A) The items covered by the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section and bill of lading 
are ultimately destined to the ultimate consignee stated on the 
license;
    (B) The ``order'' bill of lading has not been used for the purpose 
of evading the terms and conditions of the license; and
    (C) Pursuant to the contract of carriage, the items will be 
delivered at a port located in the country of the ultimate consignee or 
of the intermediate consignee named on the appropriate one of the 
documents described in paragraph (c)(1)(ii) of this section.
    (ii) [Reserved]
    (4) Item description. On the bill of lading the items may be 
described in terms of the freight tariff classification or other type 
of classification, but may not be inconsistent with the description 
shown on the appropriate one of the documents described in paragraph 
(c)(1)(ii). These documents must include the same item description as 
shown on the related license, and, in addition, it must include more 
detailed information where required by the Bureau of the Census.
    (5) Carrier's manifest. If the carrier's outward foreign manifest 
filed with the U.S. customs office contains the names of shippers or 
consignees, these names must not be inconsistent with the names shown 
on the bill of lading and the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section.


Sec. 758.5  General destination control requirements

    (a) Scope. This section sets forth some actions the parties to a 
transaction authorized by a license issued by BXA are prohibited from 
taking. The purpose of these prohibitions is to prevent items licensed 
for export from being diverted while in transit or thereafter. It also 
sets forth the duties of the parties when the goods are unloaded in a 
country other than that of the ultimate consignee or intermediate 
consignee as stated on the export license.
    (b) Destination on bill of lading or air waybill--(1) Requirements 
to prevent diversions. (i) Statements on bill of lading or air waybill. 
(A) A carrier (or any other person on behalf of any carrier) may not 
issue a bill of lading or air waybill providing for delivery of cargo 
at any foreign port located outside the country of the ultimate 
consignee, or the intermediate consignee, named on the appropriate one 
of the documents described in Sec. 758.4(c)(1)(ii) of this part.
    (B) Optional ports on bill of lading or air waybill. No carrier may 
issue a bill of lading or air waybill providing for delivery of cargo 
at optional ports to the ultimate consignee named on one of the 
appropriate documents described in Sec. 758.4(c)(1) (i) and (ii) of 
this part where one of such optional ports is not in the country of 
ultimate destination named on the license or SED, or if there is no 
SED, the Shipper's Letter of Instructions, or if there is neither, 
another document containing instructions that the exporter conveys 
(either directly or through an agent) to the carrier, without prior 
written authorization from BXA. However, where the appropriate document 
described in Sec. 758.4(c)(1) (i) and (ii) of this part provide for 
delivery of cargo to optional intermediate consignees located in ports 
in different countries, the carrier may issue a bill of lading or air 
waybill providing for delivery at such optional ports.
    (ii) [Reserved]
    (2) Delivery of cargo. No carrier may deliver cargo to any country 
other than

[[Page 12859]]
the country of the ultimate consignee, or the intermediate consignee, 
named on the appropriate one of the documents described in 
Sec. 758.4(c)(1)(ii) of this part at the request or option of the 
shipper, consignor, exporter, purchaser, or ultimate consignee, or 
their agents, or any other person having custody or control of the 
shipment, without prior written authorization from BXA to the carrier 
or its agent.
    (c) Duties when items are unloaded in a unauthorized country. If 
the items are unloaded in a country other than that of the intermediate 
or ultimate consignee as stated on the appropriate one of the documents 
described in Sec. 758.4(c)(1)(ii) of this part, the procedures 
described in this paragraph must be followed.
    (1) Reasons beyond carrier's control. Nothing contained in the EAR 
shall be deemed to prohibit a carrier from unloading cargo at a port 
outside the country of intermediate or ultimate destination shown on 
the appropriate one of the documents described in Sec. 758.4(c)(1)(ii) 
of this part, where for reasons beyond the control of the carrier (as 
set forth in the standard provisions of the carrier's bill of lading or 
air waybill, such as acts of God, perils of the sea, damage to the 
carrier, strikes, war, political disturbances, or insurrections), it is 
not feasible to deliver the cargo at the licensed port of destination.
    (2) Required actions for unscheduled unloading. (i) If the item is 
unloaded in a country to which that item may be exported without a 
license issued by BXA, no one is required to notify BXA of the 
unloading. The exporter may dispose of the items in that country 
without approval of BXA. When making such a disposition you must still 
comply with any conditions or requirements of the License Exception or 
other provisions of the EAR that would authorize the export of the item 
being unloaded to the country in which you are disposing of it, and any 
regulations of other government agencies that apply to the transaction. 
This paragraph does not authorize anyone to take any action with 
knowledge that a violation of the Export Administration Act, the EAR, 
or any order, license or authorization issued thereunder, has occurred, 
is about to occur or is intended to occur, or to deliver to a denied 
party or to take any other action prohibited by the EAR.
    (ii) If a license issued by BXA would be required to export the 
item to the country in which it is unloaded:
    (A) No person may take any steps to effect delivery or entry of the 
items into the commerce of the country where unloaded without prior 
approval of BXA;
    (B) The carrier must take steps to assure that the items are placed 
in custody under bond or other guaranty not to enter the commerce of 
such country or any country other than the countries of the ultimate 
and intermediate consignees shown on the appropriate one of the 
documents described in Sec. 758.4(c)(1)(ii) of this part, without prior 
approval of BXA;
    (iii) The carrier, the carrier's agent located in the United 
States, and the exporter each have specific responsibilities to notify 
BXA regarding any unscheduled unloading. The specific responsibilities 
of each party are as follows:
    (A) The carrier must, within 10 days after date of unloading, 
report the facts to the nearest American Consulate and to the agent of 
the carrier located in the United States. Within 10 days after receipt 
of such report, the agent must send a copy of the report to BXA. The 
report must include:
    (1) A copy of the manifest of such diverted cargo;
    (2) A statement of the place of unloading; and;
    (3) The name and address of the person in whose custody the items 
were delivered.
    (B) BXA will inform the exporter of the unloading. Within 10 days 
following receipt of this notice, the exporter must inform BXA of the 
proposed disposition of the items. The exporter may not dispose of the 
items without approval of BXA.


Sec. 758.6  Destination control statement

    (a) Requirement for destination control statement. (1) The 
destination control statement shown in paragraph (b) of this section 
must be entered on all copies of the bill of lading, the air waybill 
and the commercial invoice covering any export from the United States 
if:
    (i) The export is made under authority of a license, including the 
Special Comprehensive License;
    (ii) The export is made under the authority of the following 
License Exceptions: LST (GBS, CIV, LVS), RPL (PTS, SNR), and TMP (TMP, 
TUS); or
    (iii) The export is made under the ``No License Required'' 
provisions of the EAR (as described in Sec. 758.1(a) of this part) if 
the reason for control of the item as stated in the entry on the CCL is 
NS or NP.
    (2) An exporter or the exporter's agent may enter a destination 
control statement on the shipping documents for exports for which no 
destination control statement is required.
    (b) Text of destination control statement.

    These commodities, technology or software were exported from the 
United States in accordance with the Export Administration 
Regulations. Diversion contrary to U.S. law prohibited.

    (c) Additional destination information. In addition to the 
destination control statement, an exporter or exporter's agent may 
supply additional information on the shipping documents, including the 
country(ies) to which export or reexport is authorized.
    (d) Permissive reexports. If reexport or diversion from the 
original transaction is contemplated and the change from the original 
transaction is consistent with the license, License Exception, the NLR 
provisions of the EAR or other authorization and with all other 
requirements of the EAR, the exporter may so advise its foreign 
importer without obtaining further authorization from BXA.
    (e) Responsibility for assuring that the destination control 
statement is used--(1) Exporters. The exporter is responsible for 
assuring entry of the destination control statement on the commercial 
invoice, regardless of whether the exporter actually prepares this 
document. The exporter has this responsibility even if the invoice is 
prepared by an order party or the exporter acts through an agent.
    (2) Agents of exporters (forwarding agents). Agents of exporters 
are also responsible for assuring entry of the destination control 
statement on the commercial invoice.
    (i) If the agent receives from the exporter a copy of a commercial 
invoice without the correct destination control statement, the agent 
must:
    (A) Notify the exporter in writing;
    (B) Request written assurance from the exporter that:
    (1) The destination control statement has been properly entered on 
all other copies of the commercial invoice; and
    (2) Any person who received an invoice without the statement has 
been informed in writing of the restrictions in the statement;
    (ii) And either:
    (A) Enter the appropriate statement on the agent's copy of the 
invoice; or
    (B) Return it to the exporter for completion; and
    (iii) Keep and make available for inspection, in accordance with 
part 762 of the EAR, a copy of that person's notification to the 
exporter and the original of the exporter's assurance required by 
paragraph (e)(2)(i) of this section. (For further recordkeeping 
requirements, see part 762 of the EAR.)

[[Page 12860]]

    (iv) If the agent prepares the invoice, the agent's 
responsibilities are governed by paragraph (e)(3) of this section.
    (3) Forwarders, carriers and other parties who prepare invoices. If 
a forwarder, a carrier acting as a forwarder, or any other party 
prepares, presents, and/or executes the invoice, the forwarder, 
carrier, or other party is also responsible for assuring that an 
appropriate statement is entered on the invoice.
    (4) Carriers and other parties who issue bills of lading or air 
waybills. The carrier, or any other party that issues the bill of 
lading or air waybill, is responsible for assuring that the destination 
control statement appearing on the corresponding invoice also appears 
on the bill of lading or air waybill.
    (f) Responsibility for distributing copies of the invoice. The 
exporter or other person issuing any invoice containing a destination 
control statement must send copies in a manner which assures their 
arrival either with or prior to arrival of the items being exported to:
    (1) The ultimate consignee and the purchaser named in the SED;
    (2) The intermediate consignee; and
    (3) Any other persons named in the invoice who are located in a 
foreign country. Nothing contained in this part shall be construed to 
limit the persons or classes of persons to whom such invoices, bills of 
lading or air waybills are usually and customarily sent in the course 
of export trade. The shipper or other person issuing the commercial 
invoice may comply with the requirements of this section even if the 
copy of the invoice sent to any of the persons listed in paragraphs 
(f)(1) or (2) this section omits all reference to price or sales 
commission provided such invoice otherwise adequately identifies the 
shipment. As an alternative in lieu of a copy of the commercial 
invoice, such person may send a copy of the bill of lading or air 
waybill containing the destination control statement.
    (g) Requirements for bill of lading or air waybill. (1) General. No 
carrier may issue (and no one may prepare or procure) a bill of lading 
or air waybill covering an export for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of such bill of lading or air waybill 
(including all non-negotiable and office copies) contain the 
destination control statement in clearly legible form.
    (2) Exception for ``master'' air waybills. In the case of shipments 
by air (other than airmail or air parcel post), the requirement of 
paragraph (e)(2)(i) of this section applies to any air waybill, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, the provisions of 
paragraph (f) of this section do not apply to a ``master'' air waybill 
issued by a carrier to cover a consolidated shipment.
    (h) Requirements for the commercial invoice. No licensee, shipper, 
consignor, exporter, agent, or any other person may prepare or issue a 
commercial invoice for a shipment for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of the invoice(s) contain the statement in 
clearly legible form.
    (i) Carrier's responsibility before releasing cargo. No carrier may 
release custody of a shipment covered by the provisions of this section 
to any party without surrender by that party, to the carrier, of a copy 
of the bill of lading or air waybill bearing on its face the applicable 
destination control statement, unless either:
    (1) Simultaneously with the release, the carrier delivers to such 
party a written copy of the destination control statement, contained in 
the carrier's copy of the bill of lading or air waybill for the 
shipment. The written copy must identify the shipment by bill of lading 
or air waybill number, name of carrier, voyage or flight number, date, 
and port of arrival. The carrier must also secure either a signed 
receipted copy of the written statement or other equivalent written 
evidence that the statement has been delivered by the carrier; or,
    (2) The regulations of the importing country require the carrier to 
deliver the items directly into the physical possession and control of 
customs or other government agency for delivery to the consignee or the 
consignee's agent. In this case, the carrier need not give to, or 
receive from, the customs or other government agency, or the consignee 
or the consignee's agent, any document bearing the destination control 
statement.


Sec. 758.7  Authority of the Office of Export Enforcement, the Bureau 
of Export Administration, Customs offices and Postmasters in clearing 
shipments

    (a) Actions to assure compliance with the EAR. Officials of BXA, 
the Office of Export Enforcement, the U.S. Customs Service and 
postmasters, including post office officials, are authorized and 
directed to take appropriate action to assure compliance with the EAR. 
This includes assuring that:
    (1) Exports without a license issued by BXA are either outside the 
scope of the license requirements of the Export Administration 
Regulations or authorized by a License Exception; and
    (2) Exports purporting to be authorized by licenses issued by BXA 
are, in fact, so authorized and the transaction complies with the terms 
of the license.
    (b) Types of actions. The officials designated in paragraph (a) of 
this section are authorized to take the following types of actions:
    (1) Inspection of items. (i) Purpose of inspection. All items 
declared for export are subject to inspection for the purpose of 
verifying the items specified in the SED, or if there is no SED, the 
bill of lading or other loading document covering the items about to be 
exported, and the value and quantity thereof, and to assure observance 
of the other provisions of the Export Administration Regulations. This 
authority applies to all exports within the scope of the Export 
Administration Act or Export Administration Regulations whether or not 
such exports require a license issued by BXA. The inspection may 
include, but is not limited to, item identification, technical 
appraisal (analysis), or both.
    (ii) Place of inspection. Inspection shall be made at the place of 
lading or where officials authorized to make those inspections are 
stationed for that purpose.
    (iii) Technical identification. Where, in the judgment of the 
official making the inspection, the item cannot be properly identified, 
a sample may be taken for more detailed examination or for laboratory 
analysis.
    (A) Obtaining samples. The sample will be obtained by the official 
making the inspection in accordance with the provisions for sampling 
imported merchandise. The size of the sample will be the minimum 
representative amount necessary for identification or analysis. This 
will depend on such factors as the physical condition of the material 
(whether solid, liquid, or gas) and the size and shape of the 
container.
    (B) Notification to exporter and consignee. When a sample is taken, 
the exporter (or the exporter's agent) and the ultimate consignee will 
be notified by letter from one of the official designated in paragraph 
(a) of this section, showing the port of export, date of sampling, 
export license number (if any) or other authorization, invoice number 
quantity of sample taken, description of item, marks and packing case 
numbers, and manufacturer's number for the item. The original letter 
will be sent to the exporter or the exporter's agent, the duplicate 
will be placed in the container that had been opened, and the 
triplicate will be retained by the inspecting office.

[[Page 12861]]

    (C) Disposal of samples. Samples will be disposed of in accordance 
with the U.S. Customs Service procedure for imported commodities.
    (2) Inspection of documents. (i) General. Officials designated in 
paragraph (a) of this section are authorized to require exporters or 
their agents, and owners and operators of exporting carriers or their 
agents, to produce for inspection or copying: invoices, orders, letters 
of credit, inspection reports, packing lists, shipping documents and 
instructions, correspondence, and any other relevant documents, as well 
as furnish other information bearing upon a particular shipment being 
exported or intended to be exported.
    (ii) Cartridge and shell case scrap. When cartridge or shell cases 
are being exported as scrap (whether or not they have been heated, 
flame-treated, mangled, crushed, or cut) from the United States, the 
U.S. Customs Service is authorized to require the exporter to furnish 
information bearing on the identity and relationships of all parties to 
the transaction and produce a copy of the bid offer by the armed 
services in order to assure that the terms of the Export Administration 
Regulations are being met and that the material being shipped is scrap.
    (3) Questioning of individuals. Officials designated in paragraph 
(a) of this section are authorized to question the owner or operator of 
an exporting carrier and the carrier's agent(s), as well as the 
exporter and the exporter's agent(s), concerning a particular shipment 
exported or intended to be exported.
    (4) Prohibiting lading. Officials designated in paragraph (a) of 
this section are authorized to prevent the lading of items on an 
exporting carrier whenever those officials have reasonable cause to 
believe that the export or removal from the United States is contrary 
to the Export Administration Regulations.
    (5) Inspection of exporting carrier. The U.S. Customs Service is 
authorized to inspect and search any exporting carrier at any time to 
determine whether items are intended to be, or are being, exported or 
removed from the United States contrary to the Export Administration 
Regulations. Officials of the Office of Export Enforcement may conduct 
such inspections with the concurrence of the U.S. Customs Service.
    (6) Seizure and detention. Customs officers are authorized, under 
Title 22 of the United States Code, section 401, et seq., to seize and 
detain any items whenever an attempt is made to export such items in 
violation of the Export Administration Regulations, or whenever they 
know or have probable cause to believe that the items are intended to 
be, are being, or have been exported in violation of the EAR. Seized 
items are subject to forfeiture. In addition to the authority of 
Customs officers to seize and detain items, both customs officials and 
officials of the Office of Export Enforcement are authorized to detain 
any shipment held for review of the SED, or if there is no SED, the 
bill of lading or other loading document covering the items about to be 
exported, or for physical inspection of the items, whenever such action 
is deemed to be necessary to assure compliance with the EAR.
    (7) Preventing departure of carrier. The U.S. Customs Service is 
authorized under Title 22 of the U. S. Code, section 401, et seq., to 
seize and detain, either before or after clearance, any vessel or 
vehicle or air carrier that has been or is being used in exporting or 
attempting to export any item intended to be, being, or having been 
exported in violation of the EAR.
    (8) Ordering the unloading. The U.S. Customs Service is authorized 
to unload, or to order the unloading of, items from any exporting 
carrier, whenever the U.S. Customs Service has reasonable cause to 
believe such items are intended to be, or are being, exported or 
removed from the United States contrary to the EAR.
    (9) Ordering the return of items. If, after notice that an 
inspection of a shipment is to be made, a carrier departs without 
affording the U.S. Customs Service, Office of Export Enforcement, or 
BXA personnel an adequate opportunity to examine the shipment, the 
owner or operator of the exporting carrier and the exporting carrier's 
agent(s) may be ordered to return items exported on such exporting 
carrier and make them available for inspection.
    (10) Designating time and place for clearance. The U.S. Customs 
Service is authorized to designate times and places at which U.S. 
exports may move by land transportation to countries contiguous to the 
United States.


Sec. 758.8  Return or unloading of cargo at direction of BXA, the 
Office of Export Enforcement or Customs Service.

    (a) Exporting carrier. As used in this section, the term 
``exporting carrier'' includes a connecting or on-forwarding carrier, 
as well as the owner, charterer, agent, master, or any other person in 
charge of the vessel, aircraft, or other kind of carrier, whether such 
person is located in the United States or in a foreign country.
    (b) Ordering return or unloading of shipment. Where there are 
reasonable grounds to believe that a violation of the Export 
Administration Regulations has occurred, or will occur, with respect to 
a particular export from the United States, BXA, the Office of Export 
Enforcement, or the U.S. Customs Service may order any person in 
possession or control of such shipment, including the exporting 
carrier, to return or unload the shipment. Such person must, as 
ordered, either:
    (1) Return the shipment to the United States or cause it to be 
returned or;
    (2) Unload the shipment at a port of call and take steps to assure 
that it is placed in custody under bond or other guaranty not to enter 
the commerce of any foreign country without prior approval of BXA. For 
the purpose of this section, the furnishing of a copy of the order to 
any person included within the definition of exporting carrier will be 
sufficient notice of the order to the exporting carrier.
    (c) Requirements regarding shipment to be unloaded. The provisions 
of Sec. 758.5(b) and (c) of this part, relating to reporting, 
notification to BXA, and the prohibition against unauthorized delivery 
or entry of the item into a foreign country, shall apply also when 
items are unloaded at a port of call, as provided in paragraph (b)(2) 
of this section.
    (d) Notification. Upon discovery by any person included within the 
term ``exporting carrier,'' as defined in paragraph (a) of this 
section, that a violation of the EAR has occurred or will occur with 
respect to a shipment on board, or otherwise in the possession or 
control of the carrier, such person must immediately notify both:
    (1) The Office of Export Enforcement at the following address: Room 
H-4520, U.S. Department of Commerce, 14th Street and Constitution Ave., 
N.W., Washington D.C. 20230, Telephone: (202) 482 1208, Facsimile: 
(202) 482-0964; and
    (2) The person in actual possession or control of the shipment.


Sec. 758.9  Other applicable laws and regulations.

    The provisions of this part 758 apply only to exports regulated by 
BXA. Nothing contained in this part 758 shall relieve any person from 
complying with any other law of the United States or rules and 
regulations issued thereunder, including those governing SEDs and 
manifests, or any applicable rules and regulations of the U.S. Customs 
Service.

[[Page 12862]]


PART 760--RESTRICTIVE TRADE PRACTICES OR BOYCOTTS

Sec.
760.1 Definitions.
760.2 Prohibitions.
760.3 Exceptions to prohibitions.
760.4 Evasion.
760.5 Reporting requirements.

Supplement No. 1 To Part 760--Interpretations

Supplement No. 2 To Part 760--Interpretation

Supplement No. 3 To Part 760--Interpretation

Supplement No. 4 To Part 760--Interpretation

Supplement No. 5 To Part 760--Interpretation

Supplement No. 6 To Part 760--Interpretation

Supplement No. 7 To Part 760--Interpretation

Supplement No. 8 To Part 760--Interpretation

Supplement No. 9 To Part 760--Interpretation

Supplement No. 10 To Part 760--Interpretation

Supplement No. 11 To Part 760--Interpretation

Supplement No. 12 To Part 760--Interpretation

Supplement No. 13 To Part 760--Interpretation

Supplement No. 14 To Part 760--Interpretation

Supplement No. 15 To Part 760--Interpretation

Supplement No. 16 To Part 760--Interpretation

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 
FR 42767, August 17, 1995).


Sec. 760.1  Definitions.

    In this part, references to the EAR are references to 15 CFR 
chapter VII, subchapter C.
    (a) Definition of Person. For purposes of this part, the term 
``person'' means any individual, or any association or organization, 
public or private, which is organized, permanently established, 
resident, or registered to do business, in the United States or any 
foreign country. This definition of person includes both the singular 
and plural and, in addition, includes:
    (1) Any partnership, corporation, company, branch, or other form of 
association or organization, whether organized for profit or non-profit 
purposes;
    (2) Any government, or any department, agency, or commission of any 
government;
    (3) Any trade association, chamber of commerce, or labor union;
    (4) Any charitable or fraternal organization; and
    (5) Any other association or organization not specifically listed 
in paragraphs (a)(1) through (4) of this section.
    (b) Definition of ``United States Person''.  (1) This part applies 
to United States persons. For purposes of this part, the term United 
States person means any person who is a United States resident or 
national, including individuals, domestic concerns, and ``controlled in 
fact'' foreign subsidiaries, affiliates, or other permanent foreign 
establishments of domestic concerns. This definition of United States 
person includes both the singular and plural and, in addition, 
includes:
    (i) The government of the United States or any department, agency, 
or commission thereof;
    (ii) The government of any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any subdivision, department, 
agency, or commission of any such government;
    (iii) Any partnership, corporation, company, association, or other 
entity organized under the laws of paragraph (b)(1)(i) or (ii) of this 
section;
    (iv) Any foreign concern's subsidiary, partnership, affiliate, 
branch, office, or other permanent establishment in any state of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any territory or possession of the United States; and
    (v) Any domestic concern's foreign subsidiary, partnership, 
affiliate, branch, office, or other permanent foreign establishment 
which is controlled in fact by such domestic concern. (See paragraph 
(c) of this section on ``Definition of 'Controlled in Fact'.'')
    (2) The term domestic concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction named in paragraph (b)(1) (i) or (ii) of this 
section, or any permanent domestic establishment of a foreign concern.
    (3) The term foreign concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction other than those named in paragraph (b)(1)(i) or 
(ii) of this section.
    (4) The term United States person does not include an individual 
United States national who is resident outside the United States and 
who is either employed permanently or temporarily by a non-United 
States person or assigned to work as an employee for, and under the 
direction and control of, a non-United States person.

Examples of ``United States Person''

    The following examples are intended to give guidance in 
determining whether a person is a ``United States person.'' They are 
illustrative, not comprehensive.
    (i) U.S. bank A has a branch office in foreign country P. Such 
branch office is a United States person, because it is a permanent 
foreign establishment of a domestic concern.
    (ii) Ten foreign nationals establish a manufacturing plant, A, 
in the United States, incorporating the plant under New York law.
    A is a United States person, because it is a corporation 
organized under the laws of one of the states of the United States.
    (iii) A, a foreign corporation, opens an office in the United 
States for purposes of soliciting U.S. orders. The office is not 
separately incorporated.
    A's U.S. office is a United States person, because it is a 
permanent establishment, in the United States, of a foreign concern.
    (iv) A, a U.S. individual, owns stock in foreign corporation B.
    A is a United States person. However, A is not a ``domestic 
concern,'' because the term ``domestic concern'' does not include 
individuals.
    (v) A, a foreign national resident in the United States, is 
employed by B, a foreign corporation.
    A is a United States person, because he is resident in the 
United States.
    (vi) A, a foreign national, who is resident in a foreign country 
and is employed by a foreign corporation, makes occasional visits to 
the United States, for purposes of exploring business opportunities.
    A is not a United States person, because he is not a United 
States resident or national.
    (vii) A is an association of U.S. firms organized under the laws 
of Pennsylvania for the purpose of expanding trade.
    A is a United States person, because it is an association 
organized under the laws of one of the states of the United States.
    (viii) At the request of country Y, A, an individual employed by 
U.S. company B, is transferred to company C as an employee. C is a 
foreign company owned and controlled by country Y. A, a U.S. 
national who will reside in Y, has agreed to the transfer provided 
he is able to retain his insurance, pension, and other benefits. 
Accordingly, company B has agreed to keep A as an employee in order 
to protect his employee benefits, and company C has agreed to pay 
for A's salary. At all times while he works for C, A will be under 
C's direction and control.
    A is not a United States person while under C's direction and 
control, because he will be resident outside the United States and 
assigned as an employee to a non-United States person. The 
arrangement designed to protect A's insurance, pension, and other 
benefits does not destroy his status as an

[[Page 12863]]
employee of C so long as he is under the direction and control of C.
    (ix) A, a U.S. citizen, has resided in Europe for three years, 
where he is a self-employed consultant for United States and foreign 
companies in the communications industry.
    A is a United States person, because he is a U.S. national and 
because he is not a resident outside the United States who is 
employed by other than a United States person.

    (c) Definition of ``Controlled in Fact''. (1) This part applies to 
any domestic concern's foreign subsidiary, partnership, affiliate, 
branch, office, or other permanent foreign establishment which is 
controlled in fact by such domestic concern. Control in fact consists 
of the authority or ability of a domestic concern to establish the 
general policies or to control day-to-day operations of its foreign 
subsidiary, partnership, affiliate, branch, office, or other permanent 
foreign establishment.
    (2) A foreign subsidiary or affiliate of a domestic concern will be 
presumed to be controlled in fact by that domestic concern, subject to 
rebuttal by competent evidence, when:
    (i) The domestic concern beneficially owns or controls (whether 
directly or indirectly) more than 50 percent of the outstanding voting 
securities of the foreign subsidiary or affiliate;
    (ii) The domestic concern beneficially owns or controls (whether 
directly or indirectly) 25 percent or more of the voting securities of 
the foreign subsidiary or affiliate, if no other person owns or 
controls (whether directly or indirectly) an equal or larger 
percentage;
    (iii) The foreign subsidiary or affiliate is operated by the 
domestic concern pursuant to the provisions of an exclusive management 
contract;
    (iv) A majority of the members of the board of directors of the 
foreign subsidiary or affiliate are also members of the comparable 
governing body of the domestic concern;
    (v) The domestic concern has authority to appoint the majority of 
the members of the board of directors of the foreign subsidiary or 
affiliate; or
    (vi) The domestic concern has authority to appoint the chief 
operating officer of the foreign subsidiary or affiliate.
    (3) A brokerage firm or other person which holds simple record 
ownership of securities for the convenience of clients will not be 
deemed to control the securities.
    (4) A domestic concern which owns, directly or indirectly, 
securities that are immediately convertible at the option of the holder 
or owner into voting securities is presumed to own or control those 
voting securities.
    (5) A domestic concern's foreign branch office or other 
unincorporated permanent foreign establishment is deemed to be 
controlled in fact by such domestic concern under all circumstances.

Examples of ``Controlled in Fact''

    The following examples are intended to give guidance in 
determining the circumstances in which a foreign subsidiary, 
affiliate, or other permanent foreign establishment of a domestic 
concern is ``controlled in fact.'' They are illustrative, not 
comprehensive.
    (i) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by U.S. company B.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (ii) Company A is incorporated in a foreign country. Ten percent 
of the voting stock of A is owned by U.S. company B. A has an 
exclusive management contract with B pursuant to which A is operated 
by B.
    As long as such contract is in effect, A is presumed to be 
controlled in fact by B. This presumption may be rebutted by 
competent evidence showing that control does not, in fact, lie with 
B.
    (iii) Company A is incorporated in a foreign country. Ten 
percent of the voting stock of A is owned by U.S. company B. A has 
10 persons on its board of directors. Six of those persons are also 
members of the board of directors of U.S. company B.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (iv) Company A is incorporated in a foreign country. Thirty 
percent of the voting securities of A is owned by U.S. company B and 
no other person owns or controls an equal or larger share.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (v) Company A is incorporated in a foreign country. In A's 
articles of incorporation, U.S. company B has been given authority 
to appoint A's board of directors.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (vi) Company A is a joint venture established in a foreign 
country, with equal participation by U.S. company B and foreign 
company C. U.S. Company B has authority to appoint A's chief 
operating officer.
    A is presumed to be controlled in fact by B. This presumption 
may be rebutted by competent evidence showing that control does not, 
in fact, lie with B.
    (vii) Same as (vi), except that B has no authority to appoint 
A's chief operating officer.
    B is not presumed to control A, absent other facts giving rise 
to a presumption of control.
    (viii) Company A is incorporated in a foreign country. U.S. 
companies B, C, and D each own 20 percent of A's voting securities 
and regularly cast their votes in concert.
    A is presumed to be controlled in fact by B, C, and D, because 
these companies are acting in concert to control A.
    (ix) U.S. bank B located in the United States has a branch 
office, A, in a foreign country. A is not separately incorporated.
    A is deemed to be controlled in fact by B, because A is a branch 
office of a domestic concern.
    (x) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by company B, which is 
incorporated in another foreign country. Fifty-one percent of the 
voting stock of B is owned by C, a U.S. company.
    Both A and B are presumed to be controlled in fact by C. The 
presumption of C's control over B may be rebutted by competent 
evidence showing that control over B does not, in fact, lie with C. 
The presumption of B's control over A (and thus C's control over A) 
may be rebutted by competent evidence showing that control over A 
does not, in fact, lie with B.
    (xi) B, a U.S. individual, owns 51 percent of the voting 
securities of A, a manufacturing company incorporated and located in 
a foreign country.
    A is not ``controlled in fact'' under this part, because it is 
not controlled by a ``domestic concern.''

    (d) Definition of ``Activities in the Interstate or Foreign 
Commerce of the United States''.

Activities Involving United States Persons Located in the United 
States

    (1) For purposes of this part, the activities of a United States 
person located in the United States are in the interstate or foreign 
commerce of the United States if they involve the sale, purchase, or 
transfer of goods or services (including information) between:
    (i) Two or more of the several States (including the District of 
Columbia);
    (ii) Any State (including the District of Columbia) and any 
territory or possession of the United States;
    (iii) Two or more of the territories or possessions of the United 
States; or
    (iv) A State (including the District of Columbia), territory or 
possession of the United States and any foreign country.
    (2) For purposes of this part, the export of goods or services from 
the United States and the import of goods or services into the United 
States are activities in United States commerce. In addition, the 
action of a domestic concern in specifically directing the activities 
of its controlled in fact foreign subsidiary, affiliate, or other 
permanent foreign establishment is an activity in United States 
commerce.
    (3) Activities of a United States person located in the United 
States may be in United States commerce even if they are part of or 
ancillary to activities


[[Continued on page 12864]]