[Federal Register: December 30, 1999 (Volume 64, Number 250)]
[Rules and Regulations]
[Page 73743-73811]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30de99-15]

DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Parts 710 through 722

[Docket No. 990611158-9311-02]

RIN 0694-AB06

Chemical Weapons Convention Regulations

AGENCY: Bureau of Export Administration, Commerce.
ACTION: Interim rule and request for comments.

PART 714--ACTIVITIES INVOLVING SCHEDULE 3 CHEMICALS

Sec.
714.1  Declaration on past production of Schedule 3 chemicals for 
chemical weapons purposes.
714.2  Initial and annual declaration requirements for plant sites 
that produce a Schedule 3 chemical in excess of 30 metric tons.
714.3  Initial and annual reporting requirements for exports and 
imports of Schedule 3 chemicals.
714.4  Advance declaration requirements for additionally planned 
production of a Schedule 3 chemical.
714.5  Frequency and timing of declarations.
714.6  Amended declaration or report.

Supplement No. 1 to Part 714--Schedule 3 Chemicals

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.


Sec. 714.1  Declaration on past production of Schedule 3 chemicals for 

chemical weapons purposes.

    (a) See Sec. 711.6 of this subchapter for information on obtaining 
the forms you will need to declare and report activities involving 
Schedule 3 chemicals.
    (b) You must complete the Certification Form, Forms 3-1, 3-2, 3-4, 
Form A if you produced at one or more plants on your plant site any 
quantity of a Schedule 3 chemical at any time since January 1, 1946, 
for chemical weapons purposes. Form B is optional. You must declare the 
total quantity of such chemical produced, rounded to the nearest tenth 
of a metric ton (or 100 kilograms). You are not subject to routine 
inspection unless you are a declared facility pursuant to Sec. 714.2.


Sec. 714.2  Initial and annual declaration requirements for plant sites 
that produce a Schedule 3 chemical in excess of 30 metric tons.

    (a) Declaration of production of Schedule 3 chemicals for purposes 
not prohibited by the CWC. (1) Production quantities that trigger the 
declaration requirement. You must complete the appropriate forms 
specified in paragraph (b) of this section if you have

[[Page 73778]]

produced or anticipate producing a Schedule 3 chemical as follows:
    (i) Initial declaration. You produced at one or more plants on your 
plant site in excess of 30 metric tons of any single Schedule 3 

chemical during calendar year 1996.
    (ii) Annual declaration on past activities. You produced at one or 
more plants on your plant site in excess of 30 metric tons of any 
single Schedule 3 chemical during the previous calendar year, beginning 
with 1997.
    (iii) Annual declaration on anticipated activities. You anticipate 
that you will produce at one or more plants on your plant site in 
excess of 30 metric tons of any single Schedule 3 chemical in the next 
calendar year.
    (2) Mixtures containing a Schedule 3 chemical. (i) The quantity of 
a Schedule 3 chemical contained in a mixture must be counted for 
declaration purposes only if the concentration of the Schedule 3 
chemical in the mixture is 80% or more by volume or by weight, 
whichever yields the lesser percent.
    (ii) Counting the amount of the Schedule 3 chemical in a mixture. 
If your mixture contains 80% or more concentration of a Schedule 3 

chemical, you must count only the amount (weight) of the Schedule 3 
chemical in the mixture, not the total weight of the mixture.
    (b) Types of declaration forms to be used. (1) Initial declaration. 
You must complete the Certification Form and Forms 3-1, 3-2, 3-3, and 
Form A if you produced at one or more plants on your plant site in 
excess of 30 metric tons of any single Schedule 3 chemical during 
calendar year 1996. Form B is optional.
    (2) Annual declaration on past activities. You must complete the 
Certification Form and Forms 3-1, 3-2, 3-3, and Form A if one or more 
plants on your plant site produced in excess of 30 metric tons of any 
single Schedule 3 chemical during the previous calendar year, beginning 
with production during calendar year 1997. Form B is optional.
    (3) Annual declaration on anticipated activities. You must complete 
the Certification Form, and Forms 3-1 and 3-3 if you anticipate that 
you will produce at one or more plants on your plant site in excess of 
30 metric tons of any single Schedule 3 chemical in the next calendar 
year.
    (c) Quantities to be declared. (1) Production of a Schedule 3 
chemical in excess of 30 metric tons. If your plant site is subject to 
the declaration requirements of paragraph (a) of this section, you must 
declare the range within which the production at your plant site falls 
(30 to 200 metric tons, 200 to 1,000 metric tons, etc.) as specified on 
Form 3-3. When specifying the range of production for your plant site, 
you must aggregate the production quantities of all plants on the plant 
site that produced the Schedule 3 chemical in amounts greater than 30 
metric tons. You must complete a separate Form 3-3 for each Schedule 3 

chemical for which production at your plant site exceeds 30 metric 
tons.
    (2) Rounding. To determine the production range into which your 
plant site falls, add all the production of the declared Schedule 3 
chemical during the calendar year from all plants on your plant site 
that produced the Schedule 3 chemical in amounts exceeding 30 metric 
tons, and round to the nearest ten metric tons.
    (d) ``Declared'' Schedule 3 plant sites. A plant site that 
comprises at least one plant that produced in excess of 30 metric tons 
of a Schedule 3 chemical during the previous calendar year, or that you 
anticipate will produce more than 30 metric tons of a Schedule 3 
chemical in the next calendar year, is a ``declared'' Schedule 3 plant 
site. A plant site that submitted an initial declaration for 1996 and/
or annual declaration on past activities for 1997 or 1998 is a 
``declared'' Schedule 3 plant site for the years declared.
    (e) Routine inspections of declared Schedule 3 plant sites. A 
``declared'' Schedule 3 plant site is subject to routine inspection by 
the Organization for the Prohibition of Chemical Weapons (see part 716 
of this subchapter) if the declared plants on your plant site produced 
during the previous calendar year or you anticipate they will produce 
during the next calendar year in excess of 200 metric tons aggregate of 
any Schedule 3 chemical. A plant site that submitted an initial 
declaration for 1996 and/or an annual declaration on past activities 
for 1997 or 1998, and exceeded the inspection threshold, is also 
subject to a routine inspection.


Sec. 714.3  Initial and annual report requirements for exports and 
imports of Schedule 3 chemicals.

    (a) Any person subject to the CWCR that exported from or imported 
to the United States a Schedule 3 chemical in excess of 30 metric tons 
in any calendar year, beginning with calendar year 1996, has a 
reporting requirement under this section.
    (1) Initial report on exports and imports. Declared plant sites, 
undeclared plant sites, trading companies, and any other person subject 
to the CWCR that exported from or imported to the United States in 
excess of 30 metric tons of a Schedule 3 chemical in calendar year 1996 
must submit an initial report on exports and imports.
    (2) Annual report on exports and imports. Declared plant sites, 
undeclared plant sites, trading companies, and any other person subject 
to the CWCR that exported from or imported to the United States in 
excess of 30 metric tons of a Schedule 3 chemical in a previous 
calendar year, beginning with calendar year 1997, must submit an annual 
report on exports and imports.

    Note 1 to paragraphs (a)(1) and (a)(2). Declared and undeclared 
plant sites must count, for report purposes, all exports from and 
imports to the entire plant site, not only from or to individual 
plants on the plant site.

    Note 2 to paragraphs (a)(1) and (a)(2): The U.S. Government will 
not submit to the OPCW company-specific information relating to the 
export or import of Schedule 3 chemicals contained in reports. The 
U.S. Government will add all export and import information contained 
in reports to establish the U.S. national aggregate declaration on 
exports and imports.

    (3) Mixtures containing a Schedule 3 chemical. The quantity of a 
Schedule 3 chemical contained in a mixture must be counted for 
reporting an export or import only if the concentration of the Schedule 
3 chemical in the mixture is 80% or more by volume or by weight, 
whichever yields the lesser percent. For reporting purposes, only count 
the weight of the Schedule 3 chemical in the mixture, not the entire 
weight of the mixture.

    Note to paragraph (a)(3). The ``80% and above'' mixtures rule 
applies only for report purposes. This rule does not apply for 
purposes of determining whether the export of your mixture to a non-
State Party requires an End-Use Certificate or for determining 
whether you need an export license from the Department of Commerce 
(see Secs. 742.2, 742.18 and 745.2 of the Export Administration 

Regulations) or from the Department of State (see the International 
Traffic in Arms Regulations (22 C.F.R. 120 through 130)).

    (b) Types of forms to be used. (1) Declared Schedule 3 plant sites. 
(i) If your plant site is declared for production of a Schedule 3 
chemical (and has completed questions 3-3.1 and 3-3.2 on Form 3-3) and 
you also exported or imported that same Schedule 3 chemical in excess 
of 30 metric tons, you may report the export or import by:
    (A) Completing question 3-3.3 on Form 3-3 on your declaration for 
that same Schedule 3 chemical to be reported; or
    (B) Submitting, separately from your declaration, a Certification 
Form, Form 3-1, and a Form 3-3 for each Schedule

[[Page 73779]]

3 chemical to be reported, completing only question 3-3.3. Attach Form 
A, as appropriate; Form B is optional.
    (ii) If your plant site declared production of a Schedule 3 

chemical and exported or imported a different Schedule 3 chemical in 
excess of 30 metric tons, you may report the export or import by:
    (A) Submitting, along with your declaration, a Form 3-3 for each 
Schedule 3 chemical to be reported, completing only question 3-3.3. 
Attach Form A, as appropriate; Form B is optional; or
    (B) Submitting, separately from your declaration, a Certification 
Form, Form 3-1 and a Form 3.3 for each Schedule 3 chemical to be 
reported, completing only question 3-3.3. Attach Form A, as 
appropriate; Form B is optional.
    (2) If you are an undeclared plant site or trading company, or any 
other person subject to the CWCR, you must submit a Certification Form, 
Form 3-1, and a Form 3-3 for each Schedule 3 chemical to be reported, 
completing only question 3-3.3. Attach Form A, as appropriate; Form B 
is optional.
    (c) Quantities to be reported. (1) Calculations. If you exported 
from or imported to your plant site or trading company more than 30 
metric tons of a Schedule 3 chemical in the previous calendar year, you 
must report all exports and imports of that chemical by destination, 
and indicate the total amount exported to or imported from each 
destination. Only indicate the total annual quantity exported to or 
imported from a specific destination if the total annual quantity to or 
from that destination is more than 1% of the applicable threshold 
(i.e., more than 0.3 metric tons). However, in determining whether your 
total exports and imports worldwide for the year in question trigger a 
report requirement, you must include all exports and imports, including 
exports and imports falling within the 1% exemption in your 
calculation.
    (2) Rounding. For purposes of reporting exports and imports of a 
Schedule 3 chemical, you must total all exports and imports per 
calendar year per recipient or source destination and then round to the 
nearest 0.1 metric tons.

    Note to Sec. 714.3: Under the Convention, the United States is 
obligated to provide the OPCW a national aggregate annual 
declaration of the quantities of each Schedule 3 chemical exported 
and imported. The U.S. Government will not submit your company-
specific information relating to the export or import of a Schedule 
3 chemical reported under this Sec. 714.3. The U.S. Government will 
add all export and import information submitted by various 
facilities under this section to produce a national aggregate annual 
declaration of destination-by-destination trade for each Schedule 3 

chemical.


Sec. 714.4  Advance declaration requirements for additionally planned 
production of Schedule 3 chemicals.

    (a) Declaration requirements. (1) You must declare additionally 
planned production of Schedule 3 chemicals after the annual declaration 
on anticipated activities for the next calendar year has been delivered 
to BXA if:
    (i) You plan that a previously undeclared plant on your plant site 
under Sec. 714.2(a)(1)(iii) will produce a Schedule 3 chemical above 
the declaration threshold;
    (ii) You plan to produce at a plant declared under 
Sec. 714.2(a)(1)(iii) an additional Schedule 3 chemical above the 
declaration threshold;
    (iii) You plan to increase the production of a Schedule 3 chemical 
by declared plants on your plant site from the amount exceeding the 
applicable declaration threshold to an amount exceeding the applicable 
inspection threshold (see Sec. 716.1(b)(3)); or
    (iv) You plan to increase the aggregate production of a Schedule 3 
chemical at a declared plant site to an amount above the upper limit of 
the range previously declared under Sec. 714.2(a)(1)(iii).
    (2) If you must submit a declaration on additionally planned 
activities because you plan to engage in any of the activities listed 
in paragraphs (a)(1)(i) through (iv) of this section, you should also 
declare any changes to the anticipated purposes of production or 
product group codes. You do not have to submit a declaration on 
additionally planned activities if you are only changing your purposes 
of production or product group codes.
    (b) Declaration forms to be used. If you are required to declare 
additionally planned activities pursuant to paragraph (a) of this 
section, you must complete the Certification Form and Forms 3-1, 3-2, 
and 3-3 as appropriate. Such forms are due to BXA at least 15 days in 
advance of the beginning of the additional or new activity.


Sec. 714.5  Frequency and timing of declarations.

    Declarations and reports required under this part must be 
postmarked by the appropriate date identified in Table 1 of this 
section. Required declarations and reports include:
    (a) Declaration on past production of any amount of Schedule 3 
chemicals for chemical weapons (CW) purposes since January 1, 1946;
    (b) Initial declaration (production of Schedule 3 chemicals during 
calendar year 1996);
    (c) Initial report on exports and imports from trading companies, 
plant sites and other persons (during calendar year 1996);
    (d) Annual declaration on past activities (production of Schedule 3 
chemicals during the previous calendar year, beginning with 1997);
    (e) Annual report on exports and imports from trading companies, 
plant sites and other persons (during the previous calendar year, 
beginning with 1997); and
    (f) Annual declaration on anticipated activities (production during 
the next calendar year, beginning in calendar year 2000 for activities 
anticipated for calendar year 2001).

    Table 1 to Sec.  714.5 — Deadlines for Submission 
of Schedule 3 Declarations
[this wide document opens in a separate window]

Sec. 714.6  Amended declaration or report.

    (a) You must submit an amended declaration or report for changes to 
previously submitted information on chemicals, activities and end-use 
purposes or the addition of new chemicals, activities and end-use 
purposes.
    (b) For declared plant sites subject to inspection, changes that 
may affect verification activities, such as changes of owner or 
operator, company name, address, or inspection point of contact, 
require an amended declaration.
    (c) For declared plant sites not subject to inspection, undeclared 
plant sites, trading companies, and other persons, changes that do not 
directly affect the purpose of the Convention, such as changes to a 
company name, address, declaration point of contact, or non-substantive 
typographical errors, do not require submission of an amended 
declaration or report and may be corrected in subsequent declarations 
or reports.
    (d) If you are required to submit an amended declaration or report 
pursuant to paragraph (a) or (b) of this section, you must complete and 
submit a new Certification Form and the specific form(s) being amended 
(e.g., annual declaration on past activities). Only complete that 
portion of each form that corrects the previously submitted 
information.

           Supplement No. 1 to Part 714--Schedule 3 Chemicals
------------------------------------------------------------------------

------------------------------------------------------------------------
A. Toxic chemicals:
    (1) Phosgene: Carbonyl dichloride.................         (75-44-5)
    (2) Cyanogen chloride.............................        (506-77-4)
    (3) Hydrogen cyanide..............................         (74-90-8)
    (4) Chloropicrin: Trichloronitromethane...........         (76-06-2)
B. Precursors:
    (5) Phosphorus oxychloride........................      (10025-87-3)
    (6) Phosphorus trichloride........................       (7719-12-2)
    (7) Phosphorus pentachloride......................      (10026-13-8)
    (8) Trimethyl phosphite...........................        (121-45-9)
    (9) Triethyl phosphite............................        (122-52-1)
    (10) Dimethyl phosphite...........................        (868-85-9)
    (11) Diethyl phosphite............................        (762-04-9)
    (12) Sulfur monochloride..........................      (10025-67-9)
    (13) Sulfur dichloride............................      (10545-99-0)
    (14) Thionyl chloride.............................       (7719-09-7)
    (15) Ethyldiethanolamine..........................        (139-87-7)
    (16) Methyldiethanolamine.........................        (105-59-9)
    (17) Triethanolamine..............................        (102-71-6)
------------------------------------------------------------------------
Note to Supplement No. 1: Refer to Supplement No. 1 to part 774 of the
  Export Administration Regulations (the Commerce Control List), ECCN
  1C355, Related Controls for chemicals controlled under the
  International Traffic in Arms Regulations (22 CFR parts 120 through
  130).

[ CONTINUE TO PART 715 ]

Dated: December 16, 1999.

R. Roger Majak,
Assistant Secretary for Export Administration.

[FR Doc. 99-33149 Filed 12-30-99; 8:45 am]

Billing Code: 3510-33-P