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FORFURTHERINFORMATIONCONTACT:KirstenMortimer,OfficeofExporterServicesBureauofExportAdministration,Telephone:(202)4822440.SUPPLEMENTARYINFORMATION:In1985,theExportAdministrationAct(EAA)wasamendedtoaddsubsection11(h),whichprovidedthat,atthediscretionoftheSecretaryofCommerce,nopersonwhohasbeenconvictedofaviolationofcertaindesignatedstatutesshallbeeligibletoapplyfororuseanyexportlicenseforaperiodofupto10yearsfromthedateoftheconviction.ThedesignatedstatutesincludetheEAAoranyregulation,license,authorizationororderissuedthereunder;anyregulation,licenseororderissuedundertheInternationalEmergencyEconomicPowersAct;section4(b)ofthe ,`'* InternalSecurityActof1950;18U.S.C.sections793,794or798,andsection38oftheArmsExportControlAct.TheSecretarymayalsorevokeanyexportlicenseunderthisActinwhichsuchpersonhasaninterestatthetimeoftheconviction.BXAusesthisdenialauthoritytoprotectU.S.nationalsecurityandforeignpolicyinterests.Section766.25(a)providesthat theDirectoroftheOfficeofExporterServices,inconsultationwiththeDirectoroftheOfficeofExportEnforcement,maydenypermissiontoapplyfororuseanylicense,includinganyLicenseException,toanypersonwhohasbeenconvictedofaviolationoftheaforementioneddesignatedstatutes.Thisruleamendssection766.25(b)oftheEARbyprovidingthat,unlessexceptionalcircumstancesexist,BXAwillnotifyapersonconvictedofoneofthedesignatedstatutesthatBXAisgoingtoissueanorderdenyingthatpersonsexportprivilegesandgivingthatpersonanopportunitytomakeawrittensubmissiontoBXAregardingBXAsproposeddenial.Thisrulefurtherclarifiesthattheexportprivilegesthatmaybedeniedinanysuchorder,include,butarenotlimited,toapplyingfor,obtaining,orusinganylicense,LicenseException,orexportcontroldocument;orparticipatinginorbenefittinginanywayfromanyexportorexportrelatedtransactionsubjecttotheEAR.Section756.1(a)states,inpertinentpart,thatactionstakenunderpart766oftheEARarenotsubjecttotheappealsproceduresdescribedinpart756.Thisruleamendssection756.1(a)(2)toprovidethatanappealfromanactiontakenundersection766.25shallbesubjecttotheappealsproceduresinpart756. ,`'* AlthoughtheExportAdministrationAct(EAA)expiredonAugust20,1994,thePresidentinvokedtheInternationalEmergencyEconomicPowersActandcontinuedineffecttheEAR,andtotheextentpermittedbylaw,theprovisionsoftheEAA,asamended,inExecutiveOrder12924ofAugust19,1994,asextendedbythePresident'snoticesofAugust15,1995(60FR42767),August14,1996(61FR42527),August13,1997(62FR43629),August13,1998(63FR44121)andAugust13,1999(64FR44101).   ` RuleMakingRequirements  1.ThisfinalrulehasbeendeterminedtobenotsignificantforpurposesofE.O.12866.  2.Notwithstandinganyotherprovisionoflaw,nopersonisrequiredtorespondto,norshallanypersonbesubjecttoapenaltyforfailuretocomplywithacollectionofinformation,subjecttotherequirementsofthePaperworkReductionAct,unlessthatcollectionofinformationdisplaysacurrentvalidOMBControlNumber.Thisregulationdoesnotinvolveanypaperworkcollections.  3.ThisruledoesnotcontainpolicieswithFederalismimplicationssufficienttowarrantpreparationofaFederalismassessmentunderExecutiveOrder13132.  0*%(   4.TheprovisionsoftheAdministrativeProcedureAct(5U.S.C.553)requiringnoticeof proposedrulemaking,theopportunityforpublicparticipation,andadelayineffectivedate,areinapplicablebecausethisregulationinvolvesamilitaryandforeignaffairsfunctionoftheUnitedStates(5U.S.C.553(a)(1)).Further,nootherlawrequiresthatanoticeofproposedrulemakingandanopportunityforpubliccommentbegivenforthisinterimrule.BecauseanoticeofproposedrulemakingandanopportunityforpubliccommentarenotrequiredtobegivenforthisruleundertheAdministrativeProcedureActorbyanyotherlaw,theanalyticalrequirementsoftheRegulatoryFlexibilityAct(5U.S.C.601etseq.)arenotapplicable.Therefore,this   regulationisissuedinfinalform.Althoughthereisnoformalcommentperiod,publiccommentsonthisregulationarewelcomeonacontinuingbasis.CommentsshouldbesubmittedtoKirstenMortimer,OfficeofExporterServices,BureauofExportAdministration,DepartmentofCommerce,P.O.Box273,Washington,D.C.20044.ListofSubjects15CFRPart756  Administrativepracticeandprocedures,Exports,Foreigntrade,Penalties.15CFRPart766  Administrativepracticeandprocedures,Businessandindustry,Confidentialbusinessinformation,Exports,Foreigntrade,Reportingandrecordkeepingrequirements. ,`'*   Accordingly,parts756and766oftheExportAdministrationRegulations(15CFRparts730774)areamendedasfollows:  2e  1  .3  ԀTheauthoritycitationforparts756and766arerevisedtoreadasfollows:  Authority:50U.S.C.app.2401etseq.;50U.S.C.1701etseq.;E.O.12924,59FR43437, `  3_CFR_,1994Comp.,p.917;X!XXX!NoticeofAugust10,1999,64FR44101(August13,1999).#X!XXX!u# @   PART756[AMENDED]     2e  2  .3  Section756.1isamendedbyrevisingparagraph(a)(2)toreadasfollows:̀756.1Introduction(a)***  (2)Denialorprobationorders,civilpenalties,sanctions,orotheractionsunderparts764and766oftheEAR,exceptthat,anappealfromanactiontakenunder2222766.252222shallbesubjecttotheappealsproceduresdescribedinthispart756.***** PART766[AMENDED]  0*%(  ,`'*   2e  3  .3  ԀSection766.25isamendedbyrevisingthesectionheadingandparagraphs(a),(b),(d),(e)and(f)toreadasfollows:766.25AdministrativeActionDenyingExportPrivileges*****(a)General   TheDirectoroftheOfficeofExporterServices,inconsultationwiththeDirectoroftheOfficeofExportEnforcement,maydenytheexportprivilegesofanypersonwhohasbeenconvictedofaviolationoftheEAA,theEAR,oranyorder,license,orauthorizationissuedthereunder;anyregulation,licenseororderissuedundertheInternationalEmergencyEconomicPowersAct(50U.S.C.17011706);18U.S.C.793,794or798;section4(b)oftheInternalSecurityActof1950(50U.S.C.783(b)),orsection38oftheArmsExportControlAct(22U.S.C.2778).(b)Procedure󀀀 "  Uponnotificationthatapersonhasbeenconvictedofaviolationofoneormoreoftheprovisionsspecifiedinparagraph(a)ofthissection,theDirectoroftheOfficeofExporterServices,inconsultationwiththeDirectoroftheOfficeofExportEnforcement,willdeterminewhethertodenysuchpersonexportprivileges,includingbutnotlimitedtoapplyingfor,obtaining,orusinganylicense,LicenseException,orexportcontroldocument;orparticipatinginorbenefittingin ,`'* anywayfromanyexportorexportrelatedtransactionsubjecttotheEAR.Beforetakingactiontodenyapersonexportprivilegesunderthissection,theDirectoroftheOfficeofExporterServiceswillprovidethepersonwrittennoticeoftheproposedactionandanopportunitytocommentthroughawrittensubmission,unlessexceptionalcircumstancesexist.Inreviewingtheresponse,theDirectoroftheOfficeofExporterServiceswillconsideranyrelevantormitigatingevidencewhytheseprivilegesshouldnotbedenied.Uponfinaldetermination,theDirectoroftheOfficeofExporterServiceswillnotifybylettereachpersondeniedexportprivilegesunderthissection.*****(d)Duration P Anydenialofexportprivilegesunderthissectionshallnotexceed10yearsfromthedateofthe 0 convictionofthepersonwhoissubjecttothedenial.(e)Effect   Anypersondeniedexportprivilegesunderthissectionwillbeconsidereda persondeniedexportprivilegesforpurposesof736.2(b)(4)(GeneralProhibition4Engageinactionsprohibitedbyadenialorder)and764.2(k)oftheEAR. (f)Publication 0*%( Thenameandaddress(es)ofanypersondeniedexportprivilegesunderthissectionwillbe publishedasdescribedinSupplementNo.2topart764oftheEAR,notingthatsuchactionwastakenpursuanttothissectionandsection11(h)oftheEAA.22222222*2222񀀀****22DATED:2222R.RogerMajakAssistantSecretaryforExportAdministration