BIS Proposes Rule to Make SNAP-R Mandatory for Most Export/Reexport Applications, Requests, and Notifications

A number of conforming changes to the regulations are also proposed. Comments on the proposed rule are due by December 18, 2007.

(SNAP-R enables exporters to submit export license applications, re-export applications, commodity classification requests, agriculture license exception notices, and associated supporting documents to BIS via the Internet.)

BIS Proposes to End ELAIN, Require SNAP-R Unless Paper Filing Authorized

BIS proposes to amend 15 CFR Parts 740, 742, 744, 748, 754, 764, and 772 to require that all export and reexport license applications (other than Special Comprehensive License applications), classification requests, encryption review requests, License Exception AGR notifications, and their accompanying documents be submitted to BIS via SNAP-R unless BIS authorizes paper submissions. This proposed rule would also set the criteria by which BIS would authorize paper submissions and would terminate use of the Electronic License Application Information Network (ELAIN).

(Currently, members of the public submit these applications, requests and notifications to BIS in one of three ways: via SNAP-R, ELAIN, or the paper BIS Multipurpose Application Form BIS 748-P and its two appendices, the BIS 748-P A (item appendix) and the BIS 748-P B (end user appendix).)

SNAP-R would be mandatory, unless paper filing authorized. 15 CFR 748.1 would be amended to set forth the basic requirement that the subject applications, requests, notifications, and any accompanying documents, must be submitted via SNAP-R unless BIS authorizes submission via original paper forms BIS 748-P, BIS 748-P A, and BIS 748-P B.

(15 CFR 748.6 would also be revised to remove the statement that application control numbers are preprinted on the paper forms. The paper forms would continue to bear a preprinted application control number, but for electronic submissions, application control numbers would be communicated to the submitter electronically once BIS accepts the submission.)

Proposed criteria for authorizing paper filings. 15 CFR 748.1 would also be amended to set forth the criteria under which BIS would authorize paper submissions. Those criteria are: (1) BIS has received no more than one submission from the party in the 12 months immediately preceding the current submission (i.e., the combined total of the party's applications, notifications, and requests could not exceed one); (2) the party does not have access to the Internet; (3) BIS has rejected the party's electronic filing registration or revoked its eligibility to file electronically; (4) BIS has requested that the party submit on paper for a particular transaction; or (5) BIS has determined that urgency, a need to implement government policy or a circumstance outside the submitting party's control justify allowing paper submissions on a particular instance.

In addition to the information relevant to the substance of the submission itself, the submitter would be required to include, either on the form or as an attachment, a statement explaining which of the five foregoing criteria justify a paper submission and supporting information.

A decision by BIS to reject the request to a paper filing is subject to appeal under 15 CFR Part 756.

Support documents would be PDF files. 15 CFR 748.6 would be revised to require that any documents submitted in support of any license application submitted via SNAP-R be submitted as PDF (portable document format) files.

(BIS notes that this proposed rule would make no changes to the procedures by which the public requests advisory opinions because such requests are neither processed via either the paper form 748-P nor either of BIS's existing electronic systems.)

(See ITT's Online Archives or 08/24/07 and 09/05/07 news, 07082415 and 07090515, for BP summaries of the implementation of Version 1.2 of SNAP-R beginning August 25, 2007, and the availability of an updated SNAP-R user manual for Version 1.2, respectively.

See ITT's Online Archives or 01/12/07 news, 07011215, for BP summary of the replacement of SNAP with SNAP-R beginning January 16, 2007.)

- written comments due by December 18, 2007

BIS contact - William Arvin (202) 482-2440

BIS proposed rule (D/N 0612242559-7061-01, FR Pub 10/19/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-20655.pdf

SNAP-R V 1.2 Exporter User Manual (Version 2.4, dated 08/27/07) available at http://www.bis.doc.gov/snapr/SNAPR_Exporter_User_Manual.pdf