BIS's implementation objectives are to collect all necessary information for the United States to comply with its treaty obligations while minimizing the burdens on industry and maximizing the protection of CBI to the extent permitted by the CWCIA. BIS recognizes that the U.S. chemical industry is engaged in legitimate commerce and NOT in the CW business.

BIS's role includes a range of industry liaison responsibilities, including the following:

·	implementing the CWC Amendment to the EAR that specifies industry export obligations under the Convention;
·	implementing the CWCR that specify industry's declaration, reporting, and inspection obligations in accordance with the CWCIA;
·	implementing an industry outreach program to educate industry on its obligations under the CWC, CWCIA, CWCR, and CWC Amendment to the EAR;
·	advising industry on regulatory requirements in declaration and report preparation;
·	collecting data from U.S. industry via user-friendly data declaration and report forms, and software that allows companies to submit responses electronically;
·	advising industry of its obligations regarding possible on-site inspection and, with company input, ensuring that this information is covered in site-specific facility agreements governing inspection procedures, as appropriate;
·	assisting U.S. companies during pre-inspection site assistance visits, and initial and routine inspections to minimize the disruption of legitimate company activities and to maximize the protection of CBI to the extent permitted by the CWCIA; and
·	representing U.S. industry in the interagency and international fora to ensure that companies' equities are protected.

Schedule 1 covers known CW agents and their immediate precursors. These have very limited industrial and medical applications.

Schedule 2 covers chemicals and precursors that have some industrial uses.

Schedule 3 covers chemicals and precursors with broader commercial applications.

The CWC also covers "other relevant facilities" that produce UDOCs. UDOCs are discrete organic chemicals that contain the element carbon and that are not included in the Schedules of Chemicals.

·	Schedule 1 facilities that produced during the previous calendar year or anticipate producing in the next calendar year in excess of 100 grams aggregate of Schedule 1 chemicals must submit a data declaration and are subject to initial and routine inspections. Under the CWC Amendment to the EAR, any person or company exporting any quantity of a Schedule 1 chemical must notify BIS 45 days in advance of each shipment, and submit an annual report of all exports. Similar requirements for imports are contained in the CWCR.
·	Schedule 2 plant sites that comprise one or more plants which produced, processed, or consumed a Schedule 2 chemical during any of the three previous calendar years or anticipate doing so in the next calendar year, have varying thresholds based on the chemical: BZ: declaration threshold of 1 kg; inspection threshold of 10 kgs; Amiton or PFIB: declaration threshold of 100 kgs; inspection threshold of 1 metric ton; or All other Schedule 2 chemicals: declaration threshold of 1 metric ton; inspection threshold of 10 metric tons. Schedule 2 plant sites declared for production, processing or consumption of a Schedule 2 chemical must also include in their declaration, inter alia, data on (i) domestic transfers of the declared chemical, and (ii) exports and imports of the declared chemical if the quantity of that chemical exported or imported was above the applicable declaration threshold. Plant sites or trading companies that did not produce, process, or consume a Schedule 2 chemical above the threshold, but exported or imported a Schedule 2 chemical above this threshold must submit an Annual Report on Exports and Imports to BIS.
·	Schedule 3 plant sites that comprise one or more plants which produced during the previous calendar year or anticipate producing in the next calendar year more than 30 metric tons of a Schedule 3 chemical must submit a data declaration. The inspection threshold is 200 metric tons aggregate of any Schedule 3 chemical. Declared Schedule 3 chemicals if the quantity of a chemical exported or imported was above the declaration threshold. Plant sites or trading companies that did not produce a Schedule 3 chemical above the declaration threshold, but exported or imported a Schedule 3 chemical above this threshold must submit an Annual Report on Exports and Imports to BIS.
·	Other Chemical Production Plant Sites that produced during the previous year more than 200 metric tons aggregate of UDOCs, or a plant site that comprises one or more plants that produced more than 30 metric tons of a single UDOC containing phosphorus, sulfur, or fluorine (PSF-chemical) must submit a data declaration. Plant sites producing in excess of 200 metric tons aggregate of UDOCs or plant sites consisting of one or more plants producing in excess of 200 metric tons of a PSF are subject to routine inspections.

·	the aggregate amount of production of all UDOC chemicals (including all PSF chemicals) in excess of 200 metric tons;
·	the number of plants (including all PSF plants) on the plant site involved in the production of all UDOCs;
·	the number of plants that produced an individual PSF chemical in excess of 30 metric tons on the plant site; and
·	the aggregate amount of production of PSF chemicals by each plant that produced an individual PSF chemical in excess of 30 metric tons.

UDOC plant sites are exempt from declaration requirements if they:

·	produce hydrocarbons exclusively;
·	produce explosives exclusively;
·	produce oligomers and polymers exclusively, whether or not containing PSF chemicals;
·	produce inorganic chemicals such as carbon oxides, carbon sulfides, metal carbonates, and metal carbides;
·	produce UDOCs via a biological or biomediated process;
·	produce UDOCs only as coincidental byproducts of a manufacturing or production process that are not isolated or captured for use or sale during the process and are routed to, or escape, from the waste stream of a stack, incinerator, or wastewater treatment system or any other waste stream;

Certain mixtures containing Schedule 2 and 3 chemicals are exempt from declaration and reporting requirements if they contain less than (the lesser of volume or total weight):

·	30 percent concentration of a Schedule 2 chemical
·	80 percent concentration of a Schedule 3 chemical

Schedule 2: annual declarations on past activities and annual reports on exports and imports for the previous calendar year by February 28; annual declarations on anticipated activities for the next calendar year by September 3.

Schedule 3: annual declarations on past activities and annual reports on exports and imports for the previous calendar year by February 28; annual declarations on anticipated activities for the next calendar year by September 3.

UDOCs: annual declarations on past activities (1997, 1998) for the previous year by February 28.

Transfers of Schedule 2 chemicals to and from non-CWC members are prohibited. Exports of Schedule 3 chemicals are permitted to CWC non-States Parties provided that an end-use certificate is obtained from the government of the importing country.

CWC restrictions on exports are in addition to any other EAR requirements.

In addition, initial and routine inspections are conducted to verify:

·	the consistency of the levels of production, processing, or consumption with the declaration;
·	the absence of undeclared Schedule 1 chemicals; and
·	the non-diversion of scheduled chemicals for activities prohibited by the CWC.

·	contain the OPCW notification;
·	ask whether the site will grant voluntary consent; and
·	include information on the availability of a BIS advance team to help prepare the site for inspection.

The Department of State will provide a written notification and inspection authorization to the owner and operator, occupant, or agent in charge of the facility to be inspected within six hours, or as soon as possible thereafter, of receiving an inspection notification from the OPCW. If the United States is unable to provide actual written notice, BIS, or the Federal Bureau of Investigation, if BIS is unable, will post notice at the facility.

The CWCR contain model facility agreements for Schedule 1 facilities and Schedule 2 plant sites.

Moreover, the CWC includes comprehensive provisions in the Confidentiality Annex, developed in consultation with international chemical trade associations from the United States, Western Europe and Japan, that enable industry to protect CBI unrelated to CWC.

·	First, the CWC limits the aims of an inspection to verifying treaty compliance and allows the inspected State Party to control access for reasons of safety, security, or confidentiality. To this end, a company may provide input into its facility agreement which will specify in advance the areas of the facility subject to inspection, the records that may be reviewed, points where samples can be taken, etc.
·	Second, a company can use techniques to protect CBI not related to CW through such measures as shrouding or covering control panels and other sensitive equipment, or logging off computers.
·	Finally, information provided to the OPCW that is identified as CBI will be subject to strict classification and handling procedures, and may be exempt from public disclosure under the CWCIA.

Treaty Compliance Division
Office of Nonproliferation Controls and Treaty Compliance
Bureau of Industry and Security
U.S. Department of Commerce
1555 Wilson Boulevard, Suite 700
Arlington, VA 22209

Tel: 202-482-1001
Fax: 703-605-4424

Production > 30 metric tons for each PSF chemical.

Production > 200 metric tons of a PSF-chemical.