BIS Withdraws Proposed Rule on Mandatory SNAP
The Bureau of Industry and Security (BIS) has issued a notice, effective July 13, 2006, that withdraws its November 2003 proposed rule to amend the Export Administration Regulations (EAR) in 15 CFR Parts 740, 742, 748, 754, and 772 to implement a revised version of its Simplified Network Application Processing (SNAP) system, called SNAP, and to mandate the use of SNAP for most filings and related documents.
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(The withdrawn rulemaking had proposed that export license applications, reexport license applications, encryption review requests, license exception AGR (Agricultural Commodities) notifications, and classification requests and their related documents be filed electronically via SNAP unless the application was for a Special Comprehensive License (SCL) or BIS approved the applicant for paper filing under 15 CFR 748.1(e). See ITT's Online Archives or 11/17/03 and 01/13/04 news, 03111715 and 04011315, for BP summary of the proposed rule and a notice extending the comment period.)
BIS Received Many Comments Expressing Opposition to Mandatory SNAP
BIS states that although a number of commenters generally favored expanded electronic filing in principle, many were opposed to the requirement that attachments be in text searchable pdf format, generally citing the cost of producing such documents, particularly if the source documents had to be scanned from poor quality, oversized, or bound originals.
Other commenters opposed making electronic filing mandatory, and still others, although not opposed to mandatory electronic filing in principle, stated that no mandatory filing rule should be imposed until after the improved system had been deployed and was operating reliably.
BIS No Longer Plans to Issue Single Rule Rewriting Electronic Filing Provisions
BIS states that it has also concluded that a single rule comprehensively rewriting the EAR provisions relating to electronic filing as it proposed in the November 2003 proposed rule no longer is consistent with the manner in which it plans to modernize its electronic filing process.
BIS further agrees with commenters to the November 2003 proposed rule who stated that any revised electronic system should be put into place and be operating reliably before any rule making its use mandatory is published.
BIS states that it is continuing to work on improvements to its on-line application system and will issue new rules as needed to implement those improvements.
BIS Contact - William Arvin (202) 482-2440
BIS Withdrawal of Proposed Rule (D/N 030425102-6179-03, FR Pub 07/13/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-11056.pdf