[Federal Register: November 12, 2003 (Volume 68, Number 218)]
[Proposed Rules]
[Page 64009-64023]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no03-16]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 740, 742, 748, 754, and 772
[Docket No. 030425102-3102-01]
RIN 0694-AC20
Mandatory Use of Simplified Network Application Processing System
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would amend the Export Administration
Regulations (EAR) to implement a revised version of the Bureau of
Industry and Security's (BIS) Simplified Network Application Processing
(SNAP+) system (hereinafter, the version of the Bureau of Industry and
Security's Simplified Network Application Processing system that
currently exists shall be referred to as SNAP, while the version that
is proposed in this rule shall be referred to as SNAP+). This proposed
rule also would mandate use of SNAP+ for all filings of Export License
applications (except Special Comprehensive Licenses), Reexport
Authorization requests, Classification requests, Encryption Review
requests, and License Exception AGR notifications unless BIS authorizes
paper filing for a particular user or transaction. The requirement to
use SNAP+ also would apply to any documentation required to be
submitted with applications, requests or notifications. This proposed
rule also would continue some provisions of the regulations associated
with SNAP and other electronic filing systems that BIS has used in the
past until a SNAP user's account is converted to SNAP+. Examples of
these provisions include the requirements imposed on companies and
individuals to protect the integrity of identification numbers. Other
provisions, such as the requirement to maintain a log of submissions
filed before being converted to SNAP+ would continue in effect even
after an existing user is converted to SNAP+ for the period of time
specified by Part 762 of the regulations. This proposed rule also would
amend the EAR to require that requests for advisory opinions include
the Export Control Classification Number of the item(s) at issue, to
require item Classification Requests include a recommended ECCN, to
replace some address listings in the regulations with references to BIS
forms that contain those addresses, and to correct some omissions,
misstatements and typographical errors.
DATES: Comments must be received by January 12, 2004.
ADDRESSES: Written comments should be e-mailed to: rpd@bis.doc.gov,
faxed to 202-482-3355, or mailed or delivered to Regulatory Policy
Division, Office of Exporter Services, Bureau of Industry and Security,
Department of Commerce, 14th and Pennsylvania Avenue, NW., Room 2705,
Washington, DC 20230. Reference Regulatory Identification Number 0694-
AC20 in all comments.
FOR FURTHER INFORMATION CONTACT: For information concerning SNAP+,
contact George Ipock, Office of Administration: e-mail gipock@bis.doc.gov, telephone: (202) 482-5469. For information
concerning other matters raised by this proposed rule, contact William Arvin, Office of Exporter Services: e-mail warvin@bis.doc.gov,
telephone (202) 482-2440.
SUPPLEMENTARY INFORMATION:
Background
The Bureau of Industry and Security (BIS) administers export
license, notification, and reporting requirements for a number of
export and reexport transactions based on the nature of the item being
exported or reexported, its intended destination, the end-user, and the
end-use. In addition, BIS provides advice to persons concerning the
classification of items that may be subject to the Export
Administration Regulations and advisory opinions regarding the
applicability of the Export Administration Regulations to particular
transactions. The public obtains all of these services, except advisory
opinions, by submitting a paper form or by submitting the information
electronically, either through the SNAP system or through one of
several systems maintained by private vendors. Recently, a majority of
the submissions for which an electronic vehicle is available have been
submitted electronically. Heretofore, the electronic submission
vehicles have not provided for electronic submission of supporting
documents or other documents that relate to an application, request, or
report. SNAP+ would permit submissions via the World Wide Web using a
Web browser and would have the capability to ``attach'' images (as PDF
files) of related documents to applications or requests. It would also
incorporate security features that were not available when electronic
filing of export license applications began in the mid 1980s.
Accordingly, BIS is proposing to amend the Export Administration
Regulations to require
[[Page 64010]]
that all export license applications (except Special Comprehensive
Licenses), reexport license applications, Classification Requests,
encryption review requests, and notifications prior to shipments of
food and agricultural commodities to Cuba under License Exception AGR,
along with any supporting or related documents be submitted via SNAP+.
Any supporting or related documents attached to the submission would
have to be in PDF format and, if they contain text, would have to be
text searchable. BIS would consider requests for exceptions to the
mandatory electronic filing rule and grant them in the following
circumstances:
[sbull] A filer who has made no more than three submissions to BIS
in the preceding twelve months;
[sbull] A filer who lacks access to the Internet;
[sbull] BIS has rejected the filer's request or revoked its
eligibility to file electronically;
[sbull] BIS has requested that the filer submit a paper document
for a particular transaction; or
[sbull] BIS determines that urgent circumstances or circumstances
beyond the filer's control require allowing paper filing in a
particular case.
BIS is aware of the possibility that some applicants might have to
acquire certain hardware or software to be able to comply with this
proposed rule. BIS also is aware that current electronic filers who use
systems other than SNAP would have to begin using SNAP+ (or have an
authorized agent acting on their behalf use SNAP+) in order to comply
with this proposed rule unless one of the foregoing exceptions applies.
BIS is interested in comments that address the benefits and burdens
associated with these requirements.
SNAP+ would eliminate the registration of individual users by paper
communication with BIS. Instead, a person may begin the registration
process on behalf of himself or herself or may register an entity such
as a corporation online. That person would be required to provide the
following information concerning the SNAP+ applicant:
[sbull] Name of SNAP+ applicant;
[sbull] Address of SNAP+ applicant;
[sbull] ``Organization Type,'' whether the SNAP+ applicant is an
individual or an entity other than an individual;
[sbull] Its ``Employee Identification Number'' if the SNAP+
applicant is not an individual and is located in the United States;
[sbull] The name, telephone number, and e-mail address of the SNAP+
applicant's ``designated official;'' and
[sbull] The name, telephone number, and e-mail address of the SNAP+
applicant's initial organization administrator.
The SNAP+ system would then generate a paper document called an
electronic submission certification, which explains the major
responsibilities of SNAP+ users, for the designated official to sign
and submit to BIS. BIS would notify the designated official by e-mail
of its approval or rejection of the application to use SNAP+.
BIS is also proposing to convert existing SNAP users to SNAP+
through the following process. BIS would send a letter to each existing
SNAP user informing it of the date on which it will be converted to the
new system. The letter will also inform the existing SNAP user that a
person who knows the existing user's current SNAP company
identification number must log onto the system to provide the name and
contact information of the individuals who the existing user determines
will be Organization Administrator and Designated Official in the SNAP+
system. Existing SNAP users will not be able to use SNAP on or after
the conversion date until this step is taken. In addition, the letter
will describe the roles of the Organization Administrator and
Certifiers, as set forth below. BIS anticipates that it will not
convert all of the existing SNAP users to SNAP+ at the same time and
that the conversion process may take several months starting on the day
that SNAP+ is implemented.
SNAP+ would also create some new roles with specific
responsibilities in the SNAP+ system. Those roles, which apply to both
new SNAP+ users and to existing SNAP users when they are converted to
the SNAP+ system by BIS would be:
[sbull] SNAP+ Applicant. The entity or individual that applies to
use SNAP+ to submit documents to BIS.
[sbull] SNAP+ User. The individual or entity that has been
authorized to submit documents via SNAP+.
[sbull] Designated Official. The individual who executes, on behalf
of the SNAP+ applicant, the application to use the SNAP+ system.
[sbull] Organization Administrator. An individual who can enable
other people to use the SNAP+ system on a particular SNAP+ user's
behalf and who can assign roles to, remove roles from, or eliminate all
access to SNAP+ for those people. Those roles include additional
organization administrators (who can do all of the tasks that the
initial organization administrator can do), as well as certifiers,
stagers and viewers.
[sbull] Certifier. An individual who can submit to BIS, on behalf
of a SNAP+ user, any type of submission that is available via the SNAP+
system at the time of submission, even if that type of submission was
not available at the time that he/she became a certifier, and who can
make representations to BIS, on the SNAP+ user's behalf, as to the
truth, accuracy and completeness of that submission. BIS will treat
submissions made in the SNAP+ system by any of the SNAP+ user's
certifiers as representations by the SNAP+ user to the United States
Government until the certifier's role is terminated in the SNAP+ system
by one of SNAP+ user's organization administrators or by BIS.
[sbull] Stager. An individual who can enter information and
documents into the SNAP+ system on behalf of a SNAP+ User for
submission to BIS by a certifier.
[sbull] Viewer. An individual who is able to view information and
documents in the SNAP+ system, but is unable to enter, modify or
certify any information or documents.
[sbull] Agents. An individual or entity who submits documents via
SNAP+ for another party. An agent would be required to notify BIS
immediately if his authority to do so is terminated. This provision is
needed so that BIS can terminate any access that the agent would have
in the SNAP+ system to information about a former client that is
protected from disclosure by the confidentiality provisions of the
Export Administration Act. Within the SNAP+ system, such agents are
referred to as ``third parties.''
BIS is also proposing to eliminate some obsolete, redundant or
incorrect references in Part 748 of the Export Administration
Regulations, eliminate an inconsistency, add information that had been
omitted and replace some addresses listed in the regulations with
references to BIS forms containing those addresses.
This proposed rule would make the following specific amendments to
the Export Administration Regulations.
In part 740, Sec. 740.17(d)(1) would be amended to make clear that
review requests for License Exception ENC must be filed via SNAP+
unless BIS authorizes use of the paper form BIS-748P, that documents
submitted in connection with SNAP+ submissions must be in ``PDF''
format and, if they contain text, must be text searchable. The
reference to Sec. 748.2(c) for the addresses for submitting license
applications would be replaced with a reference to the addresses
preprinted on the form. Section 740.18(c)(2) would be amended to
replace language that makes use of electronic filing optional with
[[Page 64011]]
language that makes use of SNAP+ mandatory unless BIS has approved the
applicant for paper filing, that documents submitted in connection with
SNAP+submissions must be in ``PDF'' format and, if they contain text,
must be text searchable. Language referring to block numbers on the
form would be replaced by names of blocks or fields because SNAP+ does
not use block numbers.
In part 742, Sec. 742.15(b)(2)(i) would be amended to make clear
that SNAP+ must be used for requests to review encryption items
exceeding 64 bit key length for mass market status and to replace the
reference to Sec. 748.2(c) for the addresses for submitting license
applications with a reference to the addresses preprinted on the form.
Supplement No. 6 to part 742 would be amended by having its
introductory paragraph revised to replace language that makes use of
electronic filing optional with language that makes use of SNAP+
mandatory unless BIS has approved the applicant for paper filing.
Provisions regarding use of couriers or fax for paper documents related
to electronic applications would also be removed because the new SNAP+
system will provide for ``attachment'' of electronic images of such
documents to filings.
In part 748, Sec. Sec. 748.1, 748.2, 748.3, 748.4, 748.5, 748.6,
748.7, 748.9, 748.10, 748.11, 748.12, 748.14, Supplement No. 1, and
Supplement No. 2 would be amended as follows.
Section 748.1, paragraph (a) would be amended to reverse the order
in which paper and electronic submissions are mentioned to emphasize
electronic submissions. It would also be amended to add encryption
review requests and license exception notifications to the listing of
submission to which part 748 applies. The last sentence of this
paragraph would also be removed because it is superfluous. Two new
paragraphs (d) and (e) would be added. Paragraph (d) would make use of
SNAP+ mandatory for all license applications (except Special
Comprehensive Licenses), Classification Requests, Encryption Review
requests, and License Exception AGR notifications unless BIS authorizes
paper filing. Paragraph (e) would establish the grounds under which BIS
would grant authorization to use paper filing, the procedures for
requesting authorization to use paper filing and the method by which
BIS would notify a party of its decision. The proposed grounds
justifying paper filing are: three or fewer filings in the preceding 12
months, lack of access to the Internet, rejection or revocation of
electronic filing authorization by BIS, request by BIS that a filing
for a particular transaction be submitted on paper, and when BIS
determines that urgent circumstances or circumstances beyond the
filer's control require paper filing in a particular instance.
Section 748.2 paragraph (c) would be amended by changing the first
word from ``All'' to ``Paper'' because it provides the mailing address
for paper applications and to replace the listing of the addresses to
which paper applications may be submitted with a reference to the
addresses listed on the paper forms.
Section 748.3 would be amended to revise paragraph (b) to make
electronic filing via SNAP+ mandatory unless BIS grants an exception
pursuant to Sec. 748.1(e) and to replace references to block numbers
on the paper application form with names or by describing the
information that must be provided when seeking a Classification. This
change is needed because SNAP+ will not contain block numbers. The
proposal would require that documents submitted in connection with a
Classification Request be submitted in ``PDF'' format and be text
searchable, if they contain text. It would also amend paragraph (b) to
replace the listing of addresses to which Classification Requests must
be sent to a reference to the addresses on the application form.
Paragraph (c)(2)(iii) would be amended to require the requestor to
provide an Export Control Classification Number or a statement that the
item is EAR99 for all Advisory Opinion requests. Classification
Requests will be clearly designated as such and evaluated separately
from Advisory Opinions. BIS will not provide both a Classification and
an Advisory Opinion in a response to a single request. This change will
allow BIS to ensure that all Classification Requests are properly
recorded and will help promote consistent results when evaluating
Classification Requests.
Section 748.4 would be amended by revising the third sentence in
paragraph (b)(1) to replace the word ``should'' with the word ``must''
in describing the responsibility to disclose all parties to a
transaction and the functions to be performed by each party. Block
numbers throughout the paragraph would be replaced with names.
Paragraph (b)(2)(ii) would be amended to implement the SNAP+
requirement that an agent who files on behalf of others and who is
required to have a power of attorney or other written authorization to
do so, register as a ``Third Party'' in SNAP+ and to replace block
numbers with names. Paragraph (g) also would be amended to replace
block numbers with names.
Section 748.5 would be amended by revising the introductory
paragraph to replace separate references to paper and electronic
applications with the single term ``applications'' and by revising
paragraph (b) to replace a block number with a name.
Section 748.6 would be amended by revising paragraph (a) to make
clear that license applications must be filed via SNAP+ unless BIS has
authorized paper filing. Paragraph (e) would be amended to provide that
references to the application control number must appear on documents
submitted in connection with license applications submitted on paper;
and that documents submitted in connection with applications filed via
SNAP+ must be in ``PDF'' format and must be text searchable if they
contain text.
Section 748.7 would be almost entirely rewritten. Provisions
relating to applying by mail to use electronic filing, registration by
BIS of each individual who is to use electronic filing, and assignment
of company identification numbers and personal identification numbers
would be removed. Requirements relating to use of company
identification numbers and personal identification numbers would
continue to apply to companies and individuals already authorized to
file electronically until their accounts are converted to SNAP+. BIS
anticipates that these requirements can be removed once all electronic
filers are converted to SNAP+, a process that may take several months
starting on the date that SNAP+ is implemented initially. The
prohibitions against copying, stealing or using another person's
personal identification number would remain in effect without
limitation as would the requirement to keep a log of electronic filings
made prior to conversion to SNAP+ (users of SNAP+ would not be required
to keep such a log). New material would be added as follows. Paragraph
(a) would reiterate that all electronic submissions must be made
through SNAP+. Paragraph (b)(1) would establish the procedures for new
applicants to use SNAP+. It would set forth the information that a
SNAP+ applicant must provide and how to provide it, how BIS would
communicate its response to the SNAP+ applicant and would establish
some specific responsibilities for users of SNAP+. This section would
require applicants to use SNAP+ to provide the name and address of the
SNAP+ applicant, and whether the SNAP+ applicant is an individual or an
entity other than an individual (referred to as ``industry'' in
[[Page 64012]]
SNAP+). If the SNAP+ applicant is not an individual and is located in
the United States, this section requires it to provide its Employer
Identification Number. All SNAP+ applicants are also required to
provide name, telephone number and e-mail address of the SNAP+
applicant's ``Designated Official'' and initial Organization
Administrator. Paragraph (b)(2) establishes a procedure for notifying
existing SNAP Users of the conversion to SNAP+ and of the information
that the existing user must provide at the time of conversion. The SNAP
User would have to provide that name and contact information of its
initial Designated Official and Organization Administrator. Paragraph
(c) would describe the roles and responsibilities of parties related to
SNAP+. Paragraph (d) would describe requirements and prohibitions of
SNAP that would continue in force after implementation of SNAP+.
Paragraph (e) would describe responsibilities of parties who use
current electronic submission systems that would continue until
conversion to SNAP+.
Section 748.9 would be amended by revising paragraph (c) to make
clear that license applicants using electronic submissions must
designate on the appropriate data entry screen the type of supporting
document they have obtained.
Sections 748.10(f), 748.11(a)(2), 748.12(d)(1), 748.14(b) would be
amended to replace block numbers with names. In addition, Sec.
748.10(g) would be amended to allow an electronic image of the PRC End
User Certificate to be submitted in support of license applications
filed via SNAP+ provided the applicant retains the original in its
files. The original certificate would continue to be required for
applications submitted on paper. Section 748.12(d) would be amended to
make clear that requests for exceptions to a support document
requirement may be submitted as electronic attachments to a license
application filed via SNAP+. Section 748.14(b) would be amended to make
clear that all of the recordkeeping requirements of part 762 and not
just Sec. 762.2 apply to firearms import certificates retained by a
license applicant and Sec. 748.14(e) would be amended to replace the
term ``BIS Form-748P'' with ``application'' because it applies to both
paper and electronic applications.
Supplement No. 1 to Part 748 would be amended to add references to
SNAP+, Export License applications, Reexport Application requests,
Classification Requests, Encryption Review requests, and License
Exception AGR notifications and to state that its requirements apply to
all of those types of submissions, unless specifically noted,
regardless of whether submitted via SNAP+ or on paper. The descriptions
of transactions that constitute reexports would be revised to make them
more completely reflect the definition of that term in part 772.
Clarifying language would be added to describe when information about
ultimate consignees must be submitted. Language that makes submission
of an item in SNAP+ the equivalent of a signature would be added. This
supplement would also be amended to place in a single paragraph, the
requirement to include the earlier application control number when
reapplying for a transaction that has been previously denied or
returned without action (RWA). The existing supplement lists this
requirement separately for denials and RWA's.
Supplement No. 2 to Part 748 would be amended throughout to replace
references to block numbers with block or field names because SNAP+
does not use block numbers. In addition, paragraph (c)(2) would be
amended to delete references to Advisory Notes 3 and 4 in Category 4 of
the Commerce Control List because those Advisory Notes no longer exist.
Paragraph (c)(2)(i) would be amended to allow submission of facsimiles
of required signed statements by the end-user or importing agency
because electronic images of such documents will have to be submitted
under SNAP+. A new paragraph (c)(3) would be created requiring that
originals be retained in accordance with the recordkeeping requirements
of the EAR. In paragraph (f), a reference to Sec. 734.2(b)(8) would be
corrected to read Sec. 736.2(b)(8). In paragraph (g)(2)(v), the words
``if possible'' would be removed from the second sentence to more
clearly reflect long-standing policy, which requires full disclosure of
how the item proposed for export will be used in the sensitive nuclear
end-uses to which this paragraph applies.
In part 754, Sec. Sec. 754.2(g)(1), 754.4(d)(1) and (3),
754.5(b)(2) and supplement No. 2, footnote number 2 would all be
revised to replace language requiring use of the paper form BXA-748P
with a requirement to use SNAP+ unless BIS approves the use of the
paper form and to replace other references to the BXA-748P with the
term ``application,'' which could apply to both electronic and paper
applications. Sec. 754.4(d) also would be amended to allow
applications for exports of unprocessed western red cedar filed through
SNAP+ to include the exporter's statement in the additional information
field of the SNAP+ application screen or as an electronic attachment to
the application and to make the electronic certification of the
application act as a signature on the statement rather than requiring a
separate signed statement as is done with paper applications.
Section 772.1 would be amended by adding a sentence to the end to
the definition of the term ``Applicant'' to make clear that the
definition does not apply to the term ``SNAP+ Applicant'' in Sec.
748.7. This change is needed to make sure that rules that apply
uniquely to applications to use SNAP+ are clearly distinguished from
the rules governing applications in general.
Rulemaking Requirements
1. This proposed rule has been determined to be not significant for
purposes of E.O. 12866.
2. This proposed rule contains revised collection-of-information
requirements subject to review and approval by the Office of Management
and Budget (OMB) under the Paperwork Reduction Act (PRA). The OMB
control number for this collection is 0694-0088. The requirement for
most exporters to register with and use Simplified Network Application
Processing (SNAP+) will be submitted to OMB for approval. The public
reporting burden for this collection of information is estimated to
average 58 minutes per application, depending on the nature of the
submission and any relevant supplemental information required to
support the submission, as well as the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information.
Send comments regarding this collection of information to Ms. Marna
Dove; Information Collection Budget Liaison, room H6622, Bureau of
Industry and Security, U.S. Department of Commerce, Washington, DC
20230 and to OMB at the Office of Information and Regulatory Affairs,
Washington, DC 20503 (Attention: BIS Desk Officer). Notwithstanding any
other provision of the law, no person is required to respond to, nor
shall any person be subject to a penalty for failure to comply with a
collection of information, subject to the requirements of the PRA,
unless that collection of information displays a currently valid OMB
control number.
3. This rule does not contain policies with Federalism implications
as this term is defined in Executive Order 13132.
4. The Chief Counsel for Regulation of the Department of Commerce
has
[[Page 64013]]
certified to the Counsel for Advocacy of the Small Business
Administration that this proposed rule would not have a significant
economic impact on a substantial number of small entities. An entity's
potential burden under this rule would vary based on four factors;
whether its submissions require additional documents; its pre-existing
hardware and software; whether its documents are already in text
searchable PDF format; and, if they are not, whether documents in such
format can be created directly from other computer files or whether
they must be scanned from paper documents.
Some entities might incur no additional burden because of this
rule. These are the entities whose submissions require no accompanying
documents, those who are already creating the documents in text
searchable PDF format and those who are already creating the documents
using software that is capable of producing the same documents in PDF
text searchable format. BIS does not have accurate data on the number
of entities that fall into this category, but based on a recent sample
from its internal database, BIS projects that as many as half of the
submissions that it receives do not require any accompanying documents.
Some entities might incur only a software acquisition burden
because of this rule. These are the entities whose accompanying
documents are already created using software that cannot produce PDF
files directly, but that can produce such files with additional
software that the entity can purchase. BIS estimates that such an
entity with a small operation would incur an initial expense of
approximately $325 to acquire that software necessary to comply with
this rule. This estimate is based on the price of Adobe Acrobat[reg]
Standard Edition ($299) as posted on the Adobe Corporation Web site on
August 13, 2003 plus any taxes or shipping charges.
Some entities might incur software and hardware acquisition costs
and labor costs associated with a submission. These are the entities
who will need to scan in paper documents and make them text searchable
and who do not presently have either hardware or software capable of
performing these functions. In some instances, the entity could utilize
software that comes bundled with a scanner to comply with this
requirement. In such instances, BIS estimates that the entity would
incur an initial cost of approximately $300 (to purchase the scanner)
to comply with this rule. In some cases, particularly if the entity has
to scan numerous complex paper documents and make them text searchable,
the costs could be higher. BIS estimates that the initial costs for an
entity facing such a situation would be approximately $1,100. This
estimate is based on a price of $300 for Adobe Acrobat[reg] Standard
Edition software, $400 for Adobe Capture[reg] software, $300 for a
scanner and $100 for taxes and shipping charges.
Entities who have to scan paper documents may also incur labor
costs to proofread and correct mistakes that may occur when a computer
converts images to text. BIS estimates that, depending on the
complexity of the document, proofreading could take from 5 minutes to
20 minutes per page. In a recent random sampling of submissions
recorded in BIS's databases, the number of supporting or explanatory
pages associated with an individual submission varied from a low of
zero to a high of 33 pages. A typical submission with attachments had
about eight pages attached. However, BIS has no way of telling which
attachments could be generated electronically and which would require
scanning and proofreading. Assuming an average of 8 pages per document
and labor costs for proofreading documents at $25 per hour, this cost
would range from $16.67 to $100 per submission. BIS believes that this
cost would not be incurred by entities that are able to produce the PDF
documents from an electronic source because of the accuracy of the
process for generating text in PDF files produced from such sources.
Electronic filing would yield some cost savings to offset part or
all of these costs. If a submission relates to attachments from an
earlier submission, the submitter could refer to the previous file
instead of supplying new attached documents. Currently, in many
instances, attachments are submitted to BIS by overnight courier.
Electronic filing would eliminate these courier costs. In addition, BIS
internally uses an electronic system to process all submissions that
are subject to this proposed rule, whether it receives the submission
on paper or electronically. However, the attachments are all on paper,
creating delays as paper documents are moved to the technical personnel
in BIS and in other government agencies. Electronic attachments are
likely to reduce evaluation time, i.e., the total time from submission
to final decision, by several days.
BIS does not collect data on the size of entities that file these
submissions. However, based on the information that it does possess,
BIS believes that fewer than 400 small entities are likely to be
affected by this rule. BIS arrived at this conclusion by identifying
all of the entities that filed four or more submissions during the
period from January 1, 2002 to May 13, 2003. A total of 591 entities
were identified. BIS determined that 120 of these are not small
businesses because they are corporations, or affiliates thereof, that
were listed in the Fortune 500 listing of April 14, 2003, or the
Fortune Global 500 listing of July 22, 2002, or because the entity's
Web site indicated sales in the most recent year in excess of $100
million. The lowest reported sales figures for 2003 Fortune 500 and the
2002 Fortune Global 500 were $2.9 billion and $10 billion,
respectively. Of the remaining 471 entities, 44 submitted export
license applications totaling more than $10 million and an additional
21 submitted license applications between $5 million and $10 million
during the period. Although BIS does not know their sales volumes or
employment levels, companies anticipating such levels of export sales
are unlikely to be small businesses.
Because many industries may be involved in exporting, BIS could not
directly relate its data to the ``Small Business Size Standards Matched
to North American Industry Classification System'' published by the
Small Business Administration (SBA). However, BIS notes that the range
of annual sales among industries in that publication that could be
involved in exporting is from $0.75 to $6 million.\1\ It is likely that
many of the 406 remaining entities would not meet the small business
standard established by the SBA. In addition, some of these entities
may either file submissions that do not require attachments or already
create text searchable PDF files of the documents that must be attached
or already create the documents using software that can create PDF
files directly. For these entities, the rule creates no new burden.
---------------------------------------------------------------------------
\1\ Several categories of construction contractors had sales
cutoff levels ranging up to $28.5 million. However, such companies
are unlikely to engage in activities that require export licenses.
---------------------------------------------------------------------------
For two industries that are included in BIS's data, the SBA
criteria is number of employees. These two industries are semiconductor
manufacturing for which the level is 500 employees and small arms
manufacturing, for which the level is 1,000 employees. BIS identified
employee levels via the Web sites for several semiconductor
manufacturers that appeared in its data. All of these had more than 500
employees. In addition, they all had more than $100
[[Page 64014]]
million in annual sales. BIS was unable to identify the employment
level for the firearms manufacturers in its data.
However, most BIS firearms export applications are for shotguns
that BIS can evaluate based on the applicant's furnishing of the
manufacturer's name and the shotgun model number. Such applications
typically require no attachments.
Overall the number of small entities affected by this proposed rule
is likely to be small. For those that are affected, the savings from
re-use of documents for multiple submissions, reduced courier fees and
faster processing times are likely to fully or partially compensate for
the cost of compliance with this rule.
Request for Comments
BIS is seeking public comments on this proposed rule. The period
for submission of comments will close January 12, 2004. BIS will
consider all comments received on or before that date in developing a
final rule. Comments received after that date will be considered if
possible, but their consideration cannot be assured. BIS will not
accept public comments accompanied by a request that a part or all of
the material be treated confidentially because of its business
proprietary nature or for any other reason. BIS will return such
comments and materials to the persons submitting the comments and will
not consider them in the development of the final rule. All public
comments on this proposed rule must be in writing (including fax or e-
mail) and will be a matter of public record, available for public
inspection and copying. The Office of Administration, Bureau of
Industry and Security, U.S. Department of Commerce, displays these
public comments on BIS's Freedom of Information Act (FOIA) Web site at
http://www.bis.doc.gov/foia. This office does not maintain a separate
public inspection facility. If you have technical difficulties
accessing this Web site, please call BIS's Office of Administration at
(202) 482-0637 for assistance.
List of Subjects
15 CFR Parts 740 and 748
Administrative practice and procedure, Exports, Foreign trade,
Reporting and recordkeeping requirements.
15 CFR Parts 742 and 772
Exports, Foreign Trade.
15 CFR Part 754
Exports, Foreign trade, Forests and forest products, Petroleum,
Reporting and recordkeeping requirements.
Accordingly, Parts 740, 742, 748, 754, and 772 of the Export
Administration Regulations (15 CFR Parts 730-799) are proposed to be
amended as follows:
PART 740--[AMENDED]
1. The authority citation for 15 CFR Part 740 is revised read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783;
Notice of August 7, 2003, 68 FR 47833, August 11, 2003.
2. Section 740.17 is amended by revising paragraph (d)(1) to read
as follows:
Sec. 740.17 Encryption commodities and software (ENC).
* * * * *
(d) Review requirement. (1) Review request procedures. To request
review of your encryption products under License Exception ENC, you
must submit to BIS and to the ENC Encryption Request Coordinator the
information described in paragraphs (a) through (e) of Supplement 6 to
part 742 of the EAR (Guidelines for Submitting Review Requests for
Encryption Items). Review requests must be submitted to BIS via SNAP+
or, if authorized by BIS, on the Form BIS-748P (as described in Sec.
748.3 of the EAR). Any documents related to review requests submitted
to BIS via SNAP+ must be in ``PDF'' format and, if they contain text,
must be text searchable. To ensure that your review request is properly
routed, insert the phrase ``License Exception ENC'' in the Special
Purpose block or field of the application form and select
``Classification Request'' from the work item menu in SNAP+ or place an
``X'' in the box marked ``Classification Request'' in the Type of
Application block on the BIS-748P. Failure to properly complete these
items may delay consideration of your review request. Review requests
that are not submitted electronically to BIS should be sent to one of
the addresses preprinted on the form BIS-748P. See paragraph (e)(5)(ii)
of this section for the mailing address for the ENC Encryption Request
Coordinator. BIS will notify you if there are any questions concerning
your request for review under License Exception ENC (e.g., because of
missing or incomplete support documentation). Once your review has been
completed, BIS will notify you in writing concerning the eligibility of
your products for export or reexport, under the provisions of this
license exception. BIS reserves the right to suspend your eligibility
to export and reexport under License Exception ENC and to return your
review request without action, if you have not met the review
requirements. You may not export or reexport retail encryption
commodities, software, or components under this license exception to
government end-users headquartered outside of Canada and the countries
listed in Supplement 3 to this part 740, unless you have received prior
authorization from BIS.
* * * * *
3. In Sec. 740.18, revise paragraph (c)(2) to read as follows:
Sec. 740.18 Agricultural Commodities AGR.
* * * * *
(c) * * *
(2) Procedures. You must submit your License Exception AGR
notification via SNAP+ or, if BIS authorizes you to use paper filing
pursuant to Sec. 748.1(e) of the EAR, on the BIS-748P form. In SNAP+,
AGR notifications must be designated by selecting ``Agricultural
License Exception Notice'' from the SNAP+ work item menu. Any
documentation submitted via SNAP+ in connection with the License
Exception AGR notification must be submitted as a ``PDF'' file and must
be text searchable if the documentation contains text. Paper
notifications must be designated by selecting ``Other'' in the ``Type
of Application'' block. If any of the required information is missing,
BIS will return without action notifications submitted via SNAP+ and
will not initiate registrations of paper submissions. If a paper
notification is not signed, BIS will not initiate registration. Each
notification must include:
(i) The name, telephone number, and facsimile number (if
available), of a contact person;
(ii) The name, address (including city, state, postal code and
country) of the applicant, the purchaser, any intermediate consignee,
the ultimate consignee, and the end-user;
(iii) The Employer Identification Number of the applicant if
applicable;
(iv) The specific end-use;
(v) Because only EAR99 items are eligible for this License
Exception, enter EAR99 in the ECCN field;
(vi) Quantity, units, unit price, and total price;
(vii) Date of filing if filing on paper, SNAP+ notices are
automatically dated;
(viii) A description of the items;
(ix) The total value in U.S. dollars; and
[[Page 64015]]
(x) If the item to be exported is fertilizer, Western Red Cedar or
live horses, you must include the Commodity Classification Automatic
Tracking System (CCATS) number to confirm that BIS has classified the
item as EAR99.
* * * * *
PART 742--[AMENDED]
4. The authority citation for 15 CFR Part 742 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a;
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of November 9,
2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; Notice of August 7,
2003, 68 FR 47833, August 11, 2003.
5. In Sec. 742.15, revise paragraph (b)(2)(i) to read as follows:
Sec. 742.15 Encryption items.
* * * * *
(b) * * *
(2) * * *
(i) Procedures for requesting review. To request review of your
mass market encryption products, you must submit to BIS and the ENC
Encryption Request Coordinator the information described in paragraphs
(a) through (e) of Supplement 6 to this part 742, and you must include
specific information describing how your products qualify for mass
market treatment under the criteria in the Cryptography Note (Note 3)
of Category 5, Part 2 (``Information Security''), of the Commerce
Control List (Supplement No. 1 to Part 774 of the EAR). Review requests
must be submitted via SNAP+, or if authorized by BIS, on the Form BIS-
748P, as described in Sec. 748.3 of the EAR. To ensure that your
review request is properly routed, insert the phrase ``mass market
encryption'' in the Special Purpose block or field of the application
form and select ``Classification Request'' from the SNAP+ work item
menu or place an ``X'' in the box marked ``Classification Request'' on
the form BIS-748P. Failure to properly complete these items may delay
consideration of your review request. Review requests that are not
submitted electronically to BIS should be sent to one of the addresses
preprinted on the BIS-748P. Submissions to the ENC Encryption Request
Coordinator should be directed to the mailing address indicated in
Sec. 740.17(e)(5)(ii) of the EAR. BIS will notify you if there are any
questions concerning your request for review (e.g., because of missing
or incomplete support documentation).
6. In supplement No. 6 to part 742 revise the introductory
paragraph to read as follows:
Supplement No. 6 to Part 742--Guidelines for Submitting Review Requests
for Encryption Items
Review requests for encryption items and all accompanying
documents must be submitted electronically via BIS's Simplified
Network Application Process (SNAP+) or, if authorized by BIS (see
Sec. 748.1(e) of the EAR), on Form BIS-748P (Multipurpose
Application) with accompanying paper documentation in accordance
with the procedures in Sec. 748.3 of the EAR. Requests must be
supported by the documentation described in this Supplement. To
ensure that your review request is properly routed, insert the
phrase ``mass market encryption'' or ``License Exception ENC''
(whichever is applicable) in the ``Special Purpose'' block or field
of the application. Select ``Commodity Classification'' from the
SNAP+ work item menu or, if filing a paper application, place an
``X'' in the box marked ``Classification Request'' in the ``Type of
Application'' block. That block does not provide a separate item to
check for the submission of encryption review requests. Failure to
properly complete these items may delay consideration of your review
request. Paper review requests must be sent to one of the addresses
pre-printed on the form. In addition, you must send a copy of your
review request and all support documents to: Attn: ENC Encryption
Request Coordinator, 9800 Savage Road, Suite 6131, Fort Meade, MD
20755-6000. For all review requests of encryption items, you must
provide brochures or other documentation or specifications related
to the technology, commodity or software, relevant product
descriptions, architecture specifications, and as necessary for the
review, source code. You also must indicate whether there have been
any prior reviews of the product, if such reviews are applicable to
the current submission. In addition, you must provide the following
information in a cover letter accompanying your review request:
* * * * *
PART 748--[AMENDED]
7. The authority citation for 15 CFR Part 748 is revised to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 68 FR
47833, August 11, 2003.
8. In Sec. 748.1, revise paragraph (a) and add paragraphs (d) and
(e) to read as follows:
Sec. 748.1 General provisions.
(a) Scope. In this part, references to the Export Administration
Regulations or EAR are references to 15 CFR chapter VII, subchapter C.
The provisions of this part involve requests for classifications and
advisory opinions, export license applications, encryption review
requests, reexport license applications, and license exception notices
subject to the EAR. All terms, conditions, provisions, and
instructions, including the applicant and consignee certifications,
contained in such form(s) are incorporated as part of the EAR. For the
purposes of this part, the term ``application'' refers to both
electronic applications and the Form BIS-748P: Multipurpose
Application.
* * * * *
(d) Electronic Filing Required. All export license applications,
reexport license applications, encryption review requests, license
exception AGR notifications, and Classification Requests and their
accompanying documents must be filed via BIS's Simplified Network
Application Processing (SNAP+) system unless:
(i) BIS approves the applicant for paper filing under paragraph (e)
of this section; or
(ii) The application is for a Special Comprehensive License.
(e) Paper Filing Authorization. BIS may grant approval to use the
paper forms (Form BIS-748P, Multipurpose Application (revised June 15,
1996 or later), and Form BIS-748P-A, Item Appendix, and Form BIS-748P-
B, End-User Appendix) for export license applications, reexport license
applications, encryption review requests, license exception AGR
notifications, or Classification Requests under the conditions
described in this paragraph.
(1) Reasons for authorizing paper applications. The party
submitting the application must meet one or more of the following
criteria:
(i) BIS has received no more than three applications, requests or
notices from that party in the twelve months immediately preceding its
receipt of the current application notification, or request;
Note to paragraph (e)(1)(i): The party's export license
applications, reexport license applications, encryption review
requests, license exception AGR notifications, and Classification
Requests will be added together to determine if this limit is met;
(ii) The party does not have access to the Internet;
(iii) BIS has rejected the party's request or revoked its
eligibility to file electronically;
(iv) BIS has requested that the party submit a paper copy for a
particular transaction; or
[[Page 64016]]
(v) BIS determines that urgent circumstances or circumstances
beyond the filer's control require allowing paper filing in a
particular instance.
(2) Procedure for requesting authorization to file paper
applications, notifications, or requests. Include, in the Additional
Information block on the BIS-748P Multipurpose Application Form, the
criterion(ia) listed in paragraph (e)(1) of this section upon which the
request is based. If you are relying upon paragraph (e)(1)(ii) or (v),
explain why you lack access to the Internet or why you believe that
urgent circumstances or circumstances beyond your control require
allowing paper filing in this instance. If you need additional space,
attach a plain sheet of paper with the additional explanation to the
Form BIS-748P.
(3) BIS decision. If BIS authorizes or requires you to file using
paper, it will process your application or request in accordance with
Part 750 of the EAR. If BIS rejects your request to file using paper,
it will return your Form BIS-748P and all attachments to you without
action and will state the reason for the rejection.
9. In Sec. 748.2, revise paragraph (c) to read as follows:
Sec. 748.2 Obtaining forms; mailing addresses.
* * * * *
(c) Paper applications should be mailed or submitted using an
overnight courier to one of the addresses preprinted on the application
form. BIS will not accept applications sent C.O.D.
10. In Sec. 748.3, revise paragraph (b) introductory text, add a
sentence to the end of paragraph (b)(1), and revise paragraphs (b)(2)
and (c)(2)(iii) to read as follows:
Sec. 748.3 Classification requests, advisory opinions, and encryption
review requests.
* * * * *
(b) Classification requests. You must submit your Classification
Request electronically via SNAP+ unless BIS approves your request to
use Form BIS-748P pursuant to Sec. 748.1(e) of the EAR. See the
instructions contained in supplement No. 1 to Part 748 to complete the
fields or blocks identified for this type of request. Classification
Requests submitted on Form BIS-748P must be sent to BIS at one of the
addresses preprinted on the form. Related documents submitted in
connection with these requests must be submitted as ``PDF'' files if
the request is submitted via SNAP+. If the document contains text, the
file must be text searchable.
(1) * * * Unless BIS has authorized paper filing pursuant to Sec.
748.1(e) of the EAR, the documents must be in ``PDF'' format and, if
they contain text, be text searchable.
(2) When submitting a Classification Request, you must provide the
name of a contact person, telephone number, facsimile number, if
available, and specify that you are seeking a Classification Request in
the designated fields or blocks on the electronic form or the BIS-748P.
You must provide a recommended classification in the designated field
or block and explain the basis for your recommendation based on the
technical parameters specified in the appropriate ECCN, if any, in the
``additional information'' field or block. Describe in the ``additional
information'' field or block, any ambiguities or deficiencies that
could affect the accuracy of your recommended classification.
(c) * * *
(2) * * *
(iii) The Export Control Classification Number or, if appropriate,
EAR99 for each item; and
* * * * *
11. In Sec. 748.4, revise the third and fourth sentence of
paragraph (b)(1), and revise paragraphs (b)(2)(ii) and (g) to read as
follows:
Sec. 748.4 Basic guidance related to applying for a license.
* * * * *
(b) Disclosure of parties on license applications and the power of
attorney. (1) Disclosure of parties. * * * If there is any doubt about
which persons should be named as parties to the transaction, the
applicant must disclose the names of all such persons and the functions
to be performed by each in the ``additional information'' field of the
electronic application or block of the BIS-748P Multipurpose
Application form. Note that when the foreign principal party in
interest is the ultimate consignee or end-user, the name and address
need not be repeated in the ``additional information'' field or block.
See ``Parties to the transaction'' in Sec. 748.5 of this part.
(2) * * *
(i) * * *
(ii) Application. Agents who are required to obtain a power of
attorney or other written authorization under this section must select
``Third Party'' when registering to use the SNAP+ system. When
completing applications, whether electronically or on the BIS-748P
Multipurpose Application Form, the agent must select ``other'' in the
``documents on file with applicant'' field or block and insert
``748.4(b)(2)'' in the Additional Information field or block to
indicate that the power of attorney or other written authorization is
on file with the agent. See Sec. 758.3(d) of the EAR for power of
attorney requirement, and see also part 762 of the EAR for
recordkeeping requirements.
* * * * *
(g) Resubmission. If a license application is returned without
action to you by BIS or your application represents a transaction
previously denied by BIS, and you want to resubmit the license
application, a new license application must be completed in accordance
with the instructions contained in Supplement No. 1 to part 748. Cite
the Application Control Number on your original application in the
``Resubmission Application Control Number'' field or block on the new
license application.
* * * * *
12. In Sec. 748.5, revise the introductory paragraph and paragraph
(b) to read as follows:
Sec. 748.5 Parties to the transaction.
The following parties may be entered on the export license
application or reexport license application. The definitions, which
also appear in part 772 of the EAR, are set out here for your
convenience to assist you in filling out your application correctly.
(a) * * *
(b) Other party authorized to receive license. The person
authorized by the applicant to receive the license. If a person and
address are listed in ``Other Party Authorized to Receive License''
field or block of the SNAP+ data entry screen or the BIS-748P
Multipurpose Application Form, the Bureau of Industry and Security will
send the license to that person instead of the applicant. Designation
of another party to receive the license does not alter the
responsibilities of the applicant, licensee or exporter.
* * * * *
13. In Sec. 748.6, revise paragraphs (a), (e), and the last
sentence of paragraph (g) to read as follows:
Sec. 748.6 General instructions for license applications.
(a) Form and instructions. An application for a license, whether to
export or reexport, must be submitted electronically via the SNAP+
system or, if BIS authorizes paper filing pursuant to Sec. 748.1(e) of
the EAR, on Form BIS-748P, Multipurpose Application (revised June 15,
1996 or later), and Form BIS-748P-A, Item Appendix, and Form BIS-748P-
B, End-User Appendix. Facsimiles or copies of these forms are not
acceptable. Instructions for
[[Page 64017]]
preparing the application are in supplement No. 1 to this part 748.
* * * * *
(e) Assembly and additional information. Any paper documents or
correspondence relating to your paper license applications should bear
the Application Control Number, and be stapled together. Any documents
related to an application filed in SNAP+ must be ``attached'' to the
application as a ``PDF'' file. If the document contains text, the PDF
file must be text searchable. Where necessary, BIS may require you to
submit additional information beyond that stated in the EAR confirming
or amplifying information contained in your license application.
* * * * *
(g) Request for extended license validity period. * * * To request
an extended validity period, include justification for your request in
the ``additional information'' field or block on the application.
14. Revise Sec. 748.7 to read as follows:
Sec. 748.7 Electronic submission of license applications and other
documents.
(a) Scope. This section applies to electronic submissions of export
and reexport license applications, license exception notifications,
encryption review requests, and Classification Requests. All such
electronic submissions must be made through the Simplified Network
Application Processing (SNAP+) system.
(b) Registration Procedures. (1) Procedures for parties not
authorized to use SNAP+ prior to [implementation date of SNAP+].
Parties who were not authorized to use SNAP+ on [implementation date of
SNAP+] must begin the application process electronically at [Web site
URL to be announced in the final rule] and must supply the information
listed in paragraphs (b)(1)(i) through (b)(1)(viii) of this section. To
complete the application process, the SNAP+ applicant must print the
document that is generated by the on-line registration process on the
SNAP+ applicant's letterhead, and the SNAP+ applicant's designated
official must sign it and submit it to BIS at the address printed on
the document. BIS will notify the SNAP+ applicant via e-mail at the e-
mail address of the designated official as entered on the on-line
registration form of its decision as to whether the applicant may file
applications via SNAP+. The following information must be supplied:
(i) Name of SNAP+ applicant;
(ii) Address of SNAP+ applicant;
(iii) The SNAP+ applicant's ``organization type,'' i.e., whether
the applicant is an individual or industry (industry means any entity
other than an individual);
(iv) The SNAP+ applicant's ``industry role'', i.e., whether it is
an exporter or an agent for a principal party in interest who is
required to have a power of attorney or other written authorization by
Sec. 748.4(b)(2)(i) of the EAR (such an agent is designated as a
``third party'' in SNAP+);
(v) The SNAP+ applicant's employer identification number, if the
SNAP+ applicant's organization type is ``industry'' and the SNAP+
applicant is located in the Untied States;
(vi) The name, telephone number, facsimile number (optional), and
e-mail address of the SNAP+ applicant's ``designated official;'' and
(vii) The name, telephone number, facsimile number (optional), e-
mail address, user name and initial password of the SNAP+ applicant's
initial organization administrator.
(2) Procedures for parties authorized to use SNAP prior to
[implementation date of SNAP+]. Parties authorized to use SNAP prior to
[implementation date of SNAP+] will be notified in writing by BIS of
the date on which BIS will convert their accounts to SNAP+, the
requirements regarding organization administrators and certifiers
described in paragraph (c) of this section, and of the requirement that
they log onto the SNAP+ Web site [URL to be included in the final rule]
and provide the information described in subparagraphs (b)(1)(vi) and
(b)(1)(vii) of this section.
(c) Parties to the SNAP+ system, their roles and responsibilities.
The roles and responsibilities in this section are in addition to any
other roles or responsibilities imposed elsewhere in the EAR or other
applicable law.
(1) SNAP+ applicant. The SNAP+ applicant is the entity or
individual that applies to use SNAP+ to submit documents to BIS.
(2) SNAP+ user. The SNAP+ user is the entity or individual that has
been authorized to submit documents to BIS via SNAP+. SNAP+ users who
are registered as ``Third Parties'' to submit on behalf of other
entities and SNAP+ users who wish to submit on behalf of their
subsidiaries must register the name and address information of those
other entities or subsidiaries on the designated entry screens in SNAP+
prior to submitting any documents on their behalf.
(3) Designated official. The designated official is the individual
who makes, on behalf of the SNAP+ applicant, the application to use the
SNAP+ system.
(4) Organization administrator. Organization administrator(s) are
individuals who can enable other individuals to use the SNAP+ system,
terminate an individual's access to the SNAP+ system, and who can
assign or change the roles of those individuals, all on the SNAP+
user's behalf. The roles which an organization administrator may assign
to an individual are organization administrator (who has all of the
authorities in the SNAP+ system that the initial organization
administrator has), certifier, stager and viewer.
(5) Certifier. Certifiers are individuals who can submit to BIS, on
behalf of the SNAP+ user, any type of application, form, report,
document or other information that may be submitted via the SNAP+
system at the time of the submission, even if it was not available at
the time that he/she became a certifier, and make representations to
BIS on the SNAP+ user's behalf as to the truth, accuracy and
completeness of the application, form, report, document or other
information submitted.
(i) BIS will treat submissions made in the SNAP+ system by any of
the SNAP+ user's certifiers as representations by the SNAP+ user to the
United States Government until the certifier's role is terminated in
the SNAP+ system by one of the SNAP+ user's organization administrators
or by BIS.
(ii) Although BIS reserves the right to remove any individual or
SNAP+ user from the SNAP+ system at its sole discretion, it is the
responsibility of the SNAP+ user's organization administrator, and not
BIS, to remove a certifier from SNAP+ or remove the role of certifier
from an individual who ceases to be authorized by the SNAP+ user to
certify submissions to BIS on the SNAP+ user's behalf.
(6) Stager. A stager can enter information and documents into the
SNAP+ system on behalf of the SNAP+ user for submission to BIS by a
certifier.
(7) Viewer. A viewer can view information and documents in the
SNAP+ system, but may not enter any information or attach any documents
to a submission.
(8) Agents. An agent (regardless of whether it is required to have
a power of attorney or other written authorization or whether its
authority derives from a relationship described in Sec. 748.4(b)(2)(i)
of the EAR) who submits via SNAP+ for another party must notify BIS
immediately if his authority to do so is terminated. Such notification
must be in writing and sent to:
Office of Exporter Services, P.O. Box 273, Washington, DC 20044,
Attention: SNAP+.
[[Page 64018]]
(d) Continuing requirements. The requirements of this paragraph
relate to electronic filing authorizations issued prior to
[implementation date of SNAP+] and continue in effect after that date.
(i) 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.
(ii) Companies authorized to file electronically prior to [insert
effective date of SNAP+] must maintain a log of submissions made under
SNAP prior to that party being converted to SNAP+. The log may be
maintained either manually or electronically, specifying the date and
time of each electronic submission, the ECCNs of items included in 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. This log must be maintained in
accordance with the requirements of part 762 of the EAR.
(e) Continuation of requirements for existing electronic filers
prior to conversion to SNAP+. Entities and individuals authorized to
file electronically prior to [implementation date of SNAP+] must
continue to comply with procedures described in this paragraph until
their accounts are converted to SNAP+.
(i) Use of company identification numbers. The company may reveal
the company identification number assigned to it by BIS only to the
personal identification number (PIN) holders, their supervisors,
employees, or agents of the company with a commercial justification for
knowing the company identification number.
(ii) Use of personal identification numbers. An individual who has
been assigned a personal identification number (PIN) system 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 BIS or the SNAP user
company of his or her authorization to do so.
(iii) Other continuing requirements. (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 BIS
at (202) 482-0436. You must confirm this notification in writing within
two business days to BIS at the address provided in paragraph (c)(8) of
this section.
(B) A company authorized to file electronically must immediately
notify BIS 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.
(C) A company authorized to file electronically must notify BIS of
any change in its name or address.
15. In Sec. 748.9, revise paragraph (c) introductory text to read
as follows:
Sec. 748.9 Support documents for license applications.
* * * * *
(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 by placing an ``X'' in
the appropriate box either in the designated field on the electronic
form or, if filing a paper application, in the ``Documents Submitted
with Application'' or the ``Documents on File with Applicant'' block.
If the support document is an Import or End-User Certificate, you must
also identify the originating country and number of the certificate in
the designated block or field on your application. License applications
submitted without so designating the document type, country, and
document number will be returned without action unless satisfactory
reasons for failing to obtain the document are supplied in the
additional information block or field or in an attachment.
* * * * *
16. In Sec. 748.10, revise paragraphs (f) and (g) to read as
follows:
Sec. 748.10 Import and End-user Certificates.
* * * * *
(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 the Additional Information field or block 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 the
Import/End-User Certificate Country and Number fields or blocks of
this license application, when added to the quantities shown on all
other license applications submitted to BIS 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. Applications
for which a PRC End-User Certificate is required that are filed via
SNAP+ must have a complete, accurate image of the original certificate
attached electronically with the SNAP+ submission and the applicant
must retain the original certificate for the time period specified in
Sec. 762.6 of the EAR. Applications for which a PRC End-User
Certificate is required that are filed on paper must be accompanied by
the original certificate. All other certificates must be retained on
file in accordance with the recordkeeping provisions of the part 762 of
the EAR and not submitted with the license application.
* * * * *
17. In Sec. 748.11 revise the first sentence of paragraph (a)(2)
to read as follows:
Sec. 748.11 Statement by Ultimate Consignee and Purchaser.
(a) * * *
(2) The applicant is the same person as the ultimate consignee,
provided the required statements are contained in the ``Additional
Information'' field or block on the license application. * * *
* * * * *
18. In Sec. 748.12, revise paragraph (d)(1) to read as follows:
Sec. 748.12 Special provisions for support documents.
* * * * *
(d) Procedures for requesting an exception. (1) Requests for an
exception must be submitted with the license application to which the
request relates. Requests relating to more than one license application
should be submitted with the first license application and referred to
in the ``Additional Information'' field or block on any subsequent
license application. The request for an exception must be on the
applicant's letterhead and may be attached electronically to an
application filed via SNAP+ or submitted as a paper attachment to an
application filed on paper.
* * * * *
19. In Sec. 748.14 revise the section heading, the third, fourth
and fifth sentences of paragraph (b) introductory text, and revise
paragraph (e) to read as follows:
[[Page 64019]]
Sec. 748.14 Import Certificate for firearms destined for Organization
of American States (OAS) member countries.
(b) Import Certificate Procedure. * * * All the recordkeeping
provisions of part 762 of the EAR apply to this requirement. The
applicant must clearly note the number and date of the Import
Certificate or equivalent official document on all export license
applications supported by that Certificate or equivalent official
document. The applicant must also indicate in the ``Documents on File
with Applicant'' field or block of the application that the Certificate
or equivalent official document has been received and will be retained
on file. * * *
* * * * *
(e) Use of Import Certificate. An Import Certificate or equivalent
official document may be used to support only one license application.
The application must include the same items as those listed on the
Import Certificate or equivalent official document.
* * * * *
20. Revise supplement No. 1 to part 748 to read as follows:
Supplement No. 1 to Part 748--SNAP+, BIS-748p, BIS-748p-a: Item
Appendix, and BIS-748p-b: End-User Appendix; Information Requirements
All information must be entered in the designated fields in
SNAP+ or, if you are submitting a paper application, legibly typed
within the lines for each block or box, on the BIS-748P, BIS-748P-A,
or BIS-748P-B forms except where a signature is required on the
paper forms. On the paper forms, enter only one typed line of text
per block or line. Except as noted below, you must supply the
following information with export and reexport license applications,
classification requests, License Exception AGR notices, and
encryption review requests.
Contact Person. This should be a person who can answer questions
concerning the application, request or notice. In SNAP+, the contact
person must be a person who has been authorized access to the SNAP+
system on behalf of the applicant as a viewer, stager, certifier or
organization administrator. On paper applications, enter the name of
the contact person.
Telephone. In SNAP+, this information was entered when the
contact person was given access to the system and need not be
reentered with each application. For paper submissions, enter the
telephone number of the contact person.
Facsimile. In SNAP+, this information was entered when the
contact person was given access to the system and need not be
reentered with each application. For paper submissions, enter the
facsimile number, if available, of the person who can answer
questions concerning the application.
Date of Application. In SNAP+, the computer automatically
records the date of submission. For paper applications enter the
current date.
Type of Submission. If you are filing via SNAP+, select the type
of submission from the work item menu as follows:
For items in the United States that you wish to export or for
technology or software (source code) that you wish to reveal to
foreign nationals in the United States, select ``Export.'' See Sec.
734.2(b)(9) for the definition of ``export'' that applies to
encryption source code and object code software subject to the EAR.
For items located outside the United States that you wish to
move from one foreign country to another foreign country, or for
technology or software (source code) that you wish to reveal to
foreign nationals in a foreign country, select ``Reexport.''
If you are requesting BIS to classify your item against the
Commerce Control List (CCL), select ``Commodity Classification.''
For License Exception AGR notifications, select ``License
Exception AGR.''
For Encryption Review requests select ``Commodity
Classification'' and then select the check box labeled ``Encryption
Item.''
Note: You may not use SNAP+ to file Special Comprehensive
License applications.
If you are filing a paper form BIS-748P, place an ``X'' in the
appropriate box in the ``Type of Application'' block as follows:
For items located within the United States that you wish to
export or for technology or software (source code) that you wish to
reveal to foreign nationals in the United States mark the box
labeled ``Export'' with an ``X.''
For items located outside the United States that you wish to
move from one foreign country to another foreign country, or for
technology or software (source code) that you wish to reveal to
foreign nationals in a foreign country, mark the box labeled
``Reexport'' with an ``X.''
If you are requesting BIS to classify your item against the
Commerce Control List (CCL), place an ``X'' in the box labeled
``Classification Request.''
If you are submitting a Special Comprehensive License
application in accordance with the procedures described in part 752
of the EAR, place an ``X'' in the box labeled ``Special
Comprehensive License.''
If you are submitting a License Exception AGR notification,
place an ``X'' in the box labeled ``Other.''
If you are submitting an encryption review request place an
``X'' in the box labeled ``Commodity Classification.''
Documents 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 labeled ``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 box labeled ``Tech. Specs'' with an ``X'' if you are
submitting descriptive literature, brochures, technical
specifications, etc. with your application.
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).
Special Comprehensive License. You may not use SNAP+ if you are
applying for a Special Comprehensive License. On the BIS-748P,
complete this block only if you are submitting an application for a
Special Comprehensive License in accordance with part 752 of the
EAR.
Special Purpose. If Supplement No. 2 to this part requires that
you enter certain information about your items or transaction in
this field or block, enter that information. If you are submitting
an encryption review request for License Exception ENC (Sec. 740.17
of the EAR) enter ``License Exception ENC.'' If you are submitting
an encryption review request under the mass market provisions (Sec.
742.15(b)(2) of the EAR), enter ``mass market encryption.'' If you
are submitting an encryption review request for any other reason,
enter ``encryption--other.''
Resubmission Application Control Number. If your original
application or License Exception AGR notice was denied or returned
without action (RWA), provide the Application Control Number of the
original application. This requirement does not apply to paper
applications that were returned to you without being registered. You
do not need to supply this information for Classification Requests
or Encryption Review Requests.
Replacement License Number. If you have received a license for
identical items to the same ultimate consignee, but would like to
make a modification that is not excepted in Sec. 750.7(c) of the
EAR to the license as originally approved, enter the original
license number. Include a statement in the additional information
field or block regarding what changes you wish to make to the
original license. You do not need to supply this information for
Classification Requests or encryption review requests.
Items Previously Exported. This information need be completed
only for reexport license applications. 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, in the
``Items Previously Exported'' field or block on the BIS-748P form.
Import/End-User Certificate. Enter the name of the country and
number of the Import or End User Certificate obtained in accordance
with the provisions of this part. You do not need to supply this
information for Classification Requests or Encryption Review
Requests.
Applicant. In SNAP+, the following information about the
applicant must be entered at the time of registration. On BIS-748P
forms, it must be entered with each submission. Enter the
applicant's name, street address, city, state/country, postal code,
and, on applications for export licenses, the applicant's Employer
Identification Number unless the applicant is an individual or is an
agent who is required to obtain written authorization under
[[Page 64020]]
Sec. 748.4(b)(2) of the EAR to file on behalf of the applicant.
Regardless of the method of filing, provide a complete street
address. P.O. boxes are not acceptable. Refer to Sec. 748.5(a) of
this part for a definition of ``applicant.'' 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.
Other Party Authorized to Receive License. If you would like BIS
to transmit the approved license to another party designated by you,
select ``Other Party Authorized to Receive License'' from the
parties menu in SNAP+, or if filing on paper, fill in all
information in the corresponding block. Complete all information,
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.
Purchaser. If the purchaser is not also the ultimate consignee,
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.'' You must
provide this information even if the purchaser is also the ultimate
consignee. You do not need to supply this information for
Classification Requests or Encryption Review Requests.
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 your proposed
transaction does not involve use of an intermediate consignee, enter
``None''. If your proposed transaction involves more than one
intermediate consignee, provide the same information in the
additional information field or block for each additional
intermediate consignee. You must provide this information even if
the intermediate consignee is the purchaser. You do not need to
supply this information for Classification Requests or Encryption
Review Requests.
Ultimate Consignee. This information must be supplied if you are
submitting an export license application. 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 principal party in interest who receives the exported or
reexported items. Refer to Sec. 748.5(e) of this part for a
definition of ``ultimate consignee.'' A bank, freight forwarder,
forwarding agent, or other intermediary may not be identified as the
ultimate consignee unless it will receive the item for its own use.
Government purchasing organizations are the sole exception to this
requirement. A government purchasing organization may be identified
as the ultimate consignee if the actual end user(s) is (are) an
entity(ies) of the same government and the actual end-user and end-
use are clearly identified in the ``specific end use'' field or
block or in the 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. Provide a complete street address, P.O. boxes are not
acceptable. 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.
You do not need to supply this information for Classification
Requests or Encryption Review Requests.
End-User. Enter this information only if the ultimate consignee
you have identified is not the actual end-user. If there will be
more than one end-user, select ``end-user'' from the parties menu in
SNAP+, or if filing a paper application, use Form BIS-748P-B to
identify each additional end-user. 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. You do not need to supply this information for
Classification Requests or Encryption Review Requests.
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. Provide a complete street
address; P.O. boxes are not acceptable. 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. You do not need to supply this information
for Classification Requests or Encryption Review Requests.
Specific End-Use. This information must be completed if you are
submitting a license application. 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 the ``additional information'' block on Form BIS-
748P-A or B. Be specific. Such general descriptions such as
``research'', ``manufacturing'', or ``scientific uses'' are not
acceptable. You do not need to supply this information for
Classification Requests or Encryption Review Requests.
ECCN or EAR99. Enter the Export Control Classification Number
(ECCN) that corresponds to the item you wish to export or reexport
or, if appropriate, EAR99. If you are submitting a Classification
Request, provide a recommended classification for the item.
CTP. You must furnish this information only 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.
Model Number. Enter the correct model number for the item.
CCATS Number. If you have received a classification for this
item from BIS, provide the CCATS number shown on the classification
issued by BIS.
Quantity. Identify the quantity to be exported or reexported, in
terms of the ``Unit'' described in the ``Units'' paragraph of the
ECCN entry. If the ``Unit'' for an item is ``$ value'', enter the
quantity in units commonly used in the trade. You do not need to
supply this information for Classification Requests or Encryption
Review Requests.
Units. The ``Unit'' paragraph within each ECCN will list a
specific ``Unit'' for those items controlled by the entry. If an
item is licensed in terms of ``$ value'', the unit of quantity
commonly used in trade must also be shown. On license applications
for items on the CCL, the unit must be supplied unless the ``Unit''
for the applicable ECCN reads ``N/A'' on the CCL. For License
Exception AGR notifications use the unit of quantity commonly used
in the trade. You do not need to supply this information for
Classification Requests or Encryption Review Requests.
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 the ``Additional Information'' field
or block, the precise terms upon which the price is to be
ascertained and from which the contract price may be objectively
determined. You do not need to supply this information for
Classification Requests or Encryption Review Requests.
Total Price. Provide the total price of the item(s) listed on
the application or notification. You do not need to supply this
information for Classification Requests or Encryption Review
Requests.
Manufacturer. Provide the name only of the manufacturer, if
known, for each of the items you wish to export, reexport, or have
BIS classify, if different from the applicant.
Technical Description. Provide a description of the item(s) you
wish to export, reexport, or have BIS classify. Provide details when
necessary to identify the specific item(s); include all
characteristics or parameters shown in any 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 from the
characteristics described in promotional brochure(s).
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.
Additional Information. Enter additional data pertinent to the
application as required in the EAR. Include special certifications,
names of parties of interest not disclosed elsewhere, explanation of
documents attached, or any other additional information that you
want BIS to consider in the
[[Page 64021]]
submission. Before entering information in this field or block, make
sure that it is not required to be entered in one of the specific
fields or blocks listed in this supplement.
If you are submitting a Classification Request, use this field
or block to explain why you believe the recommended ECCN that you
entered in the ECCN field or block is appropriate. This explanation
must contain an analysis of the item in terms of the technical
control parameters specified in the appropriate ECCN, if any.
Describe any ambiguities or deficiencies that could affect the
accuracy of your recommended classification.
If additional space is necessary, submit an ``attachment'' to
your SNAP+ submission or, if filing on paper, use the ``Additional
Information'' block on the Form BIS-748P-A or B.
Signature. In SNAP+, electronically submitting an application,
request, or notification operates as a signature. Paper forms must
be manually signed in the designated block by the applicant or its
duly authorized agent. The name and title of the person signing must
be entered in the designated blocks. Rubber-stamped or electronic
signatures are not acceptable. If the person signing is acting on
behalf of an agent who is required under Sec. 748.4(b)(2) of the
EAR to have written authorization from the applicant, enter the
agent's name in the ``additional information'' block.
21. In supplement No. 2 to part 748:
a. Revise the introductory text;
b. Revise paragraphs (a) introductory text and (b);
c. Revise the second sentence of paragraph (c);
d. Add paragraph (c)(3);
e. Revise paragraphs (c)(1) and (2) introductory text and (2)(i);
f. Revise paragraphs (d)(1) through (6);
g. Revise paragraphs (e)(1) and (2);
h. Revise paragraph (f);
i. Revise paragraph (g)(2);
j. Revise paragraphs (i)(1) and (2);
k. Revise paragraphs (j)(1)(i) and (ii), (2)(i) and (ii), and
(3)(i) and (ii);
l. Revise the second sentence of paragraph (l);
m. Revise paragraphs (m) introductory text, (o)(1), and (p); and
n. Revise the first sentence of paragraph (r).
The additions and revisions read as follows:
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 fields or
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 field relates to a data entry
field on the SNAP+ entry screens, unless otherwise noted. The term
``block'' used in this supplement relates to Forms BIS-748P, BIS-
748-A, and BIS-748-B.
(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 the Technical Description field or
block.
* * * * *
(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
the ``Special Purpose'' field or block. The item you are requesting
to export or reexport must be specified by name in the ``Technical
Description'' field or block.
(c) Digital computers, telecommunications, and related
equipment. * * * License applications involving computers controlled
by Category 4 must identify a Composite Theoretical Performance
(CTP) in the ``CTP'' field or block. * * *
(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 the ``CTP'' field or block the following
information:
(i) * * *
(ii) * * *
(2) Additional requirements. License applications to export or
reexport computers or related equipment must include:
(i) A signed statement or, when filing via SNAP+, a facsimile
thereof 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) * * *
(B) * * *
(ii) * * *
(iii) * * *
(3) Recordkeeping. Applicants who submit facsimile statements to
meet the requirements of paragraph (c)(2)(i) of this Supplement 2,
must maintain the signed original for the period specified in Sec.
762.6 of the EAR.
(d) Gift parcels; consolidated in a single shipment. * * *
(1) In the ``Purchaser'' field or block, enter the word
``None'';
(2) In the ``Ultimate Consignee'' field or block, enter the word
``Various'' instead of the name and address of a single ultimate
consignee;
(3) In ``Specific End-Use'' field or block, enter the phrase
``For personal use by recipients'';
(4) In the ``Quantity'' field or block, indicate a reasonable
estimate of the number of parcels to be shipped during the validity
of the license;
(5) In ``Technical Description'' field or block, enter the
phrase ``Gift Parcels''; and
(6) In ``Total Application Value'' field or block, indicate a
reasonable value approximation proportionate to the quantity of gift
parcels identified in the ``Quantity'' field or block.
(e) Intransit through the United States. * * *
(1) In the ``Special Purpose'' field or block, enter the phrase
``Intransit Shipment'';
(2) In the ``Additional Information'' field or block, enter the
name and address of the foreign consignor who shipped the items to
the United States and state the origin of the shipment;
* * * * *
(f) Intransit outside of the United States. If you are
submitting a license application based on General Prohibition No. 8
stated in Sec. 736.2(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 the ``Intermediate
Consignee'' field or block.
(g) Nuclear Nonproliferation items and end-uses.
* * * * *
(2) License application requirements. Along with the required
certification, you must include the following information in your
license application:
(i) In the ``Documents on File with Applicant'' field or block,
place an ``X'' in the box titled ``Nuclear Certification'';
(ii) In the ``Special Purpose'' field or block, enter the phrase
``NUCLEAR CONTROLS'';
(iii) In ``Specific End-Use'' field or block, provide, if known,
the specific geographic locations of any installations,
establishments, or sites at which the items will be used;
(iv) In the ``Technical Description'' field or block, 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 the ``Additional Information'' field or block, 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 in Sec. 744.2
of the EAR. Indicate the specific end-use(s) the items will have in
designing, developing, 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.
* * * * *
(i) Parts, components, and materials incorporated abroad into
foreign-made products. * * *
(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 the ``Specific End-Use'' field or block, 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
[[Page 64022]]
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 the ``Special Purpose'' field or block, enter the phrase
``Parts and Components'';
(ii) In the ``Ultimate Consignee'' field or block, 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
the ``Ultimate Consignee'' field or block and list the specific
countries, Country Groups, or geographic areas in the ``Additional
Information'' field or block;
(iii) In the ``Original Ultimate Consignee'' field or block,
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 the ``Specific End-Use'' field or block, describe the
activity of the end-user identified in the ``End-User'' field or
block or, if the ultimate consignee is also the end user, of the
ultimate consignee identified in the ``Ultimate Consignee'' field or
block, 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 the ``Quantity'' field or block, specify the quantity for
each foreign-made product. If this information is unknown, enter
``Unknown'' in the Quantity field or block;
(vi) In the ``Total Price'' field or block, enter the digit
``0'' for each foreign-made product;
(vii) In the ``Technical Description'' field or block, 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 support 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 the ``Technical Description'' field
or block 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 the ``Quantity'' field or block. Enter the ECCN for
the spare parts in the ``ECCN'' field or block and enter the value
of the spare parts in the ``Total Price'' field or block;
(ix) In the ``Total Application Dollar Value'' field or block,
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 the ``Additional Information'' field or block. 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 Additional Information field or block the type of
technology and how it will be used.
(j) Ship stores, plane stores, supplies, and equipment.
(1) * * *
(i) In the ``Ultimate Consignee'' field or block, enter the
name, street address, city, and country of the shipyard where the
vessel is being constructed;
(ii) In ``Technical Description'' field or block, 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 field or block): * * *
(2) * * *
(i) In the ``Ultimate Consignee'' field or block, enter the name
and address of the plant where the aircraft is being constructed;
(ii) In the ``Technical Description'' field or block, enter the
following information (if this information is unknown, enter
``unknown'' in this field or block): * * *
(3) * * *
(i) In the ``Ultimate Consignee'' field or block, 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 the ``Ultimate Consignee'' field or block 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):
* * * * *
(l) Reexports. * * * The license application must specify the
country to which the reexport will be made in the ``Additional
Information'' field or block. * * *
(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 the
``Additional Information'' field or block:
* * * * *
(o) Technology--(1) License application instruction. If you are
submitting a license application for the export or reexport of
technology you must check the box labeled ``Letter of Explanation''
in the ``Documents Submitted with the Application'' block on the
BIS-748P or select ``Letter of Explanation'' from the pull down menu
in the ``Document Type'' field when attaching an electronic copy of
a document to the SNAP+ form, enter the word ``Technology'' in the
``Special Purpose'' field or block, leave the ``Quantity'' and
``Manufacturer'' fields or blocks blank, and include a general
statement that specifies the technology (e.g., blueprints, manuals,
etc.) in the ``Technical Description'' field or block.
* * * * *
(p) Temporary exports or reexports. If you are submitting a
license application for the temporary export or reexport of an item
(not eligible for the temporary exports and reexports provisions of
License Exception TMP (see Sec. 740.9(a) of the EAR) you must
include the following certification in the Additional Information
field or block:
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 writing by the
Bureau of Industry and Security.
* * * * *
(r) Encryption review requests. Enter in the Special Purpose
field or block, ``License Exception ENC'' if you are submitting an
encryption review request for license exception ENC (Sec. 740.17 of
the EAR) or ``mass market encryption'' of you are submitting an
encryption review request under the mass market encryption
provisions (Sec. 742.15(b)(2) of the EAR). * * *
PART 754--[AMENDED]
22. The authority citation for 15 CFR part 754 is revised to read
as follows:
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); 30 U.S.C. 185(s), 185(u); 42
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 11912, 41 FR
15825, 3 CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783; Notice of August 7, 2003, 68 FR 47833, August
11, 2003.
23. In Sec. 754.2, revise paragraph (g)(1) to read as follows:
Sec. 754.2 Crude Oil.
* * * * *
(g) Exports of certain California crude oil.
* * * * *
(1) Applicants must submit their applications electronically via
BIS's Simplified Network Application Process (SNAP+) system unless BIS
has authorized the applicant to use the paper Form BIS-748P (See Sec.
748.1(e) of the EAR). Paper applications must be
[[Page 64023]]
sent to: Office of Exporter Services, ATTN: Short Supply Program--
Petroleum, Bureau of Industry and Security, U.S. Department of
Commerce, P.O. Box 273, Washington, DC 20044.
* * * * *
24. In Sec. 754.4, revise paragraphs (d)(1), (d)(2), and (d)(3) to
read as follows:
Sec. 754.4 Unprocessed Western Red Cedar.
* * * * *
(d) License Applications. (1) Applicants requesting to export
unprocessed western red cedar must submit a properly completed
application electronically via SNAP+ unless BIS has authorized the
applicant to use the paper form BIS-748P, Multipurpose Application Form
(see Sec. 748.1(e) of the EAR). An application to export unprocessed
western red cedar must include such other documents as may be required
by BIS, and the following statement, either in the ``Additional
Information'' field or block of the application or as a separate signed
statement from an authorized representative of the exporter (if
submitted in the ``Additional Information'' field of the application, a
separate signature is not required):
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) ``Various'' may be entered in the ``Purchaser'' and ``Ultimate
Consignee'' fields or blocks on the applications when there is more
than one purchaser or ultimate consignee.
(3) For each application 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) * * *
(ii) * * *
* * * * *
25. In Sec. 754.5, revise paragraph (b)(2) to read as follows:
Sec. 754.5 Horses for Export by Sea
* * * * *
b License policy. (1) * * *
(2) Other license applications will be approved if BIS, 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'' field or block of the license
application, certifying that no horse under consignment is being
exported for the purpose of slaughter.
26. In supplement No. 2 to part 754, revise footnote number 2 to
read as follows:
\2\ For export licensing purposes, report commodities on export
license applications in units of quantity indicated.
PART 772--[AMENDED]
27. The authority citation for 15 CFR part 772 is revised to read
as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2003, 68 FR 47833, August 11, 2003.
28. Revise Sec. 772.1 by adding a sentence at the end of the
definition of ``applicant'' as follows:
Sec. 772.1 Definitions.
* * * * *
Applicant * * *
This definition does not apply to the term ``SNAP+ applicant'' used
in Sec. 748.7 of the EAR.
* * * * *
Dated: November 3, 2003.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 03-28133 Filed 11-10-03; 8:45 am]
BILLING CODE 3510-33-P