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20 September 2006
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[Federal Register: September 20, 2006 (Volume 71, Number 182)]
[Rules and Regulations]
[Page 54902-54904]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20se06-6]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 700
[Docket No. 060831232-6232-01]
RIN 0694-AD90
Defense Priorities and Allocations System (DPAS): Assistance
Programs With Canada and Other Nations
AGENCY: Bureau of Industry and Security, U.S. Department of Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Industry and Security (BIS) is amending the
Defense Priorities and Allocations System (DPAS) Regulation (15 CFR
part 700) to provide additional guidance on how persons in Canada and
other foreign nations may apply for priority rating authority and
special priorities assistance to obtain items in the United States, and
to provide information on
[[Page 54903]]
how persons in the United States may obtain informal assistance in
Italy, the Netherlands, Sweden, and the United Kingdom to obtain items
in support of approved programs. These amendments do not alter the
substance or effect of the DPAS regulation.
DATES: This rule is effective September 20, 2006.
FOR FURTHER INFORMATION CONTACT: Liam McMenamin, Office of Strategic
Industries and Economic Security, Bureau of Industry and Security, U.S.
Department of Commerce, Telephone: (202) 482-2233.
SUPPLEMENTARY INFORMATION:
Background
Under Title I of the Defense Production Act (DPA) of 1950, as
amended, (50 U.S.C. App. 2061, et seq.), the President is authorized to
require preferential acceptance and performance of contracts or orders
supporting certain approved national defense and energy programs, and
to allocate materials, services, and facilities in such a manner as to
promote these approved programs. Additional priorities authority is
found in section 18 of the Selective Service Act of 1948 (50 U.S.C.
App. 468), 10 U.S.C. 2538, and 50 U.S.C. 82. The President delegated
the priorities and allocations authorities of the DPA in Executive
Order 12919 (June 3, 1994; amended by Executive Order 13286, February
28, 2003). As part of that delegation, the President designated the
Secretary of Commerce to administer the Defense Priorities and
Allocations System. DPAS authority has also been extended to support
emergency preparedness activities under Title VI of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, as amended (42
U.S.C. 5195, et seq.). The DPAS regulation is found at 15 CFR part 700.
Amendments to the DPAS Regulation
The Defense Production Act's definition of ``national defense''
includes ``military assistance to any foreign nation.'' Section 700.55
of the DPAS regulation currently provides guidance on how persons in
Canada and in other foreign nations can apply for authority to place
priority rated orders and special priorities assistance to obtain items
in the United States. Persons in the United States receiving a priority
rated order must give the rated order preference over all unrated
orders as necessary to meet required delivery dates. Special priorities
assistance is provided by the Department of Commerce and the DPAS
Delegate Agencies as appropriate to expedite deliveries, resolve
delivery conflicts, place rated orders, locate suppliers, or to verify
information provided by customers and vendors. Special priorities
assistance may also be used to request authority to place rated orders.
The Department of Commerce and the Government of Canada have
provided mutual assistance to the defense industries located in both
countries since 1950. The Department of Commerce has determined that it
would be useful to provide additional guidance on how persons in Canada
producing items to support U.S. and Canadian approved programs may
request priority rating authority and special priorities assistance to
obtain items in the United States through the Canadian Public Works and
Government Services Canada. This rule provides additional point of
contact information in section 700.55(b) for Public Works and
Government Services Canada, including branch and directorate names,
mailing address, telephone, and fax numbers. These changes do not alter
the substance or effect of the DPAS regulation.
The DPAS regulation provides that persons in foreign nations other
than Canada may apply to the Department of Defense for priority rating
authority and special priorities assistance to obtain items in the
United States. Requests endorsed by the Department of Defense are
forwarded to the Department of Commerce for appropriate action. The
Department of Commerce has determined that it would be useful to
provide additional guidance on how persons in foreign nations other
than Canada may request priority rating authority and special
priorities assistance through the Department of Defense. This rule
provides additional point of contact information in section 700.55(c)
for the Department of Defense, including office name, mailing address,
telephone, and fax numbers. This rule also clarifies that if the end
product is being acquired by a foreign nation, the request must be
sponsored prior to its submission to the Department of Defense by the
government of the foreign nation that will use the end product. This
rule clarifies that if the end product is being acquired by a U.S.
government agency, the request should be submitted to the Department of
Defense through the U.S. contract administration representative. These
changes do not alter the substance or effect of the DPAS regulation.
The Department of Defense has entered into bilateral security of
supply arrangements with Italy, the Netherlands, Sweden, and the United
Kingdom that allow the Department of Defense to request the priority
delivery for Department of Defense contracts, subcontracts, and orders
from companies in these countries. The Department of Commerce has
determined that it would be useful to provide information on the
bilateral security of supply arrangements in sections 700.55(a) and in
a new section 700.55(d), and to provide guidance on how persons in the
United States may request assistance through the Department of Defense
in obtaining items from Italy, the Netherlands, Sweden, and the United
Kingdom to support approved programs. Although these supply
arrangements are new enterprises within the Department of Defense, the
creation of these arrangements does not impact the existing authorities
of the DPAS regulation. The new paragraph (d) in section 700.55 is only
intended to provide persons in the U.S. with information on how to
contact the Department of Defense to facilitate requests for priorities
assistance in these countries. Persons in Italy, The Netherlands,
Sweden, and the United Kingdom would continue to request assistance in
accordance with section 700.55(c). These changes do not alter the
existing authorities or requirements of the DPAS regulation.
Rulemaking Requirements
1. This rule has been determined to be not significant for purposes
of Executive Order 12866.
2. Notwithstanding any other provision of 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 Paperwork Reduction Act of 1995 (44 U.S.C. 3501, et
seq.) unless the collection of information displays a currently valid
Office of Management and Budget control number. This rule does not
involve any collections of information that are subject to the
Paperwork Reduction Act.
3. This rule does not contain policies with federalism implications
as this term is defined in Executive Order 13132.
4. The Department finds that there is good cause under 5 U.S.C.
553(b)(B) to waive the provisions of the Administrative Procedure Act
(APA) requiring prior notice and the opportunity for public comment.
Because these revisions consist of minor technical changes which
involve no exercise of agency discretion, it is unnecessary to provide
notice and opportunity for public comment. In addition, the 30-day
delay in
[[Page 54904]]
effectiveness required by 5 U.S.C. 553(d) is not applicable because
this rule is not a substantive rule. It is purely administrative in
nature and does not affect the existing rights of the public. No other
law requires that a notice of proposed rulemaking and an opportunity
for public comment be given for this rule.
The analytical requirements of the Regulatory Flexibility Act (5
U.S.C. 601, et seq.) are not applicable because notice of proposed
rulemaking and opportunity for public comment are not required to be
given for this rule under the Administrative Procedure Act or by any
other law.
List of Subjects in 15 CFR Part 700
Administrative practice and procedure, Business and industry,
Government contracts, National defense, Reporting and recordkeeping
requirements, Strategic and critical materials.
0
For the reasons discussed in the preamble, the Department of Commerce
amends 15 CFR part 700 as follows:
PART 700--DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM
0
1. The authority citation for part 700 continues to read as follows:
Authority: Titles I and VII of the Defense Production Act of
1950, as amended (50 U.S.C. App. 2061, et seq.), Title VI of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5195, et seq.), Executive Order 12919, 59 FR 29525, 3 CFR,
1994 Comp. 901, and Executive Order 13286, 68 FR 10619, 3 CFR, 2003
Comp. 166; section 18 of the Selective Service Act of 1948 (50
U.S.C. App. 468), 10 U.S.C. 2538, 50 U.S.C. 82, and Executive Order
12742, 56 FR 1079, 3 CFR, 1991 Comp. 309; and Executive Order 12656,
53 FR 226, 3 CFR, 1988 Comp. 585.
0
2. In Sec. 700.55, revise the second sentence in paragraph (a), revise
paragraphs (b)(3), (4) and (5) and (c)(1), and add paragraph (d) to
read as follows:
Sec. 700.55 Assistance Programs with Canada and other nations.
(a) * * * Although priority ratings have no legal authority outside
of the United States, this section also provides information on how
persons in the United States may obtain informal assistance in Canada,
Italy, The Netherlands, Sweden, and the United Kingdom in support of
approved programs.
(b) * * *
(3) Any person in the United States ordering defense items in
Canada in support of an approved program should inform the Canadian
supplier that the items being ordered are to be used to fill a rated
order. The Canadian supplier should be informed that if production
materials are needed from the United States by the supplier or the
supplier's vendor to fill the order, the supplier or vendor should
contact the Canadian Public Works and Government Services Canada, for
authority to place rated orders in the United States: Public Works and
Government Services Canada, Acquisitions Branch, Business Management
Directorate, Phase 3, Place du Portage, Level 0A1, 11 Laurier Street,
Gatineau, Quebec, K1A 0S5, Canada; telephone: (819) 956-6825; Fax:
(819) 956-7827.
(4) Any person in Canada producing defense items for the Canadian
government may also obtain priority rating authority for items to be
purchased in the United States by applying to the Canadian Public Works
and Government Services Canada, Acquisitions Branch, Business
Management Directorate, in accordance with its procedures.
(5) Persons in Canada needing special priorities assistance in
obtaining defense items in the United States may apply to the Canadian
Public Works and Government Services Canada, Acquisitions Branch,
Business Management Directorate, for such assistance. Public Works and
Government Services Canada will forward appropriate requests to the
U.S. Department of Commerce.
* * * * *
(c) Foreign nations.
(1) Any person in a foreign nation other than Canada requiring
assistance in obtaining defense items in the United States or priority
rating authority for defense items to be purchased in the United
States, should submit a request for such assistance or rating authority
to the Office of the Deputy Under Secretary of Defense (Industrial
Policy): Office of the Deputy Under Secretary of Defense (Industrial
Policy), 3330 Defense Pentagon, Washington, DC 20301; telephone: (703)
697-0051; Fax: (703) 695-4277.
(i) If the end product is being acquired by a U.S. government
agency, the request should be submitted to the Office of the Deputy
Under Secretary of Defense (Industrial Policy) through the U.S.
contract administration representative.
(ii) If the end product is being acquired by a foreign nation, the
request must be sponsored prior to its submission to the Office of the
Deputy Under Secretary of Defense (Industrial Policy) by the government
of the foreign nation that will use the end product.
* * * * *
(d) Requesting assistance in Italy, The Netherlands, Sweden, and
the United Kingdom.
(1) The U.S. Department of Defense has entered into bilateral
security of supply arrangements with Italy, The Netherlands, Sweden,
and the United Kingdom that allow the U.S. Department of Defense to
request the priority delivery for U.S. Department of Defense contracts,
subcontracts, and orders from companies in these countries.
(2) Any person in the United States requiring assistance in
obtaining the priority delivery of a contract, subcontract, or order in
Italy, The Netherlands, Sweden, or the United Kingdom to support an
approved program should contact the Office of the Deputy Under
Secretary of Defense (Industrial Policy) for assistance. Persons in
Italy, The Netherlands, Sweden, and the United Kingdom should request
assistance in accordance with Sec. 700.55(c)(1).
Dated: September 8, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. E6-15447 Filed 9-19-06; 8:45 am]
BILLING CODE 3510-33-P