BIS Proposes to Eliminate Most Paper Documents for Export Licenses, Applications, Etc.
The Bureau of Industry and Security has issued a proposed rule to eliminate the use of most paper documents for export and reexport licenses, notices of denial of license applications, notices of return of a license application without action, classification results, License Exception AGR notification results, and encryption review request results. The proposed rule would also revise the recordkeeping requirements associated with the elimination of paper documents.
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Comments on the proposed rule are due by February 2, 2010.
(Currently, BIS issues these license related documents in two ways: electronically in BIS' Simplified Network Application Processing Redesign system (SNAP-R) and on paper. Most license related documents are issued in both electronic and paper form.)
Proposed Regulatory Changes Eliminate Certain Paper Documentation
Specifically, BIS proposes the following changes to the Export Administration Regulations (partial list):
Amendment of document storage requirements for SNAP-R. The proposed rule would state that parties who receive documents issued by BIS in SNAP-R may store the documents in one of two ways and that either way would meet the requirement of 15 CFR 762.5 that original documents be retained: (1) storage of complete documents issued by BIS in SNAP-R electronically in a format readable by software possessed by the recipient party; or (2) printing out and storing a complete paper copy of the document.
Exemption for those who submit documents via SNAP-R. The proposed rule would exempt parties who submit documents to BIS via SNAP-R from requirements to retain copies of documents so submitted even though those documents are "export control documents" as defined in 15 CFR Part 772. This proposed change would not preclude parties from storing copies of these documents.
Addition of certain notifications to recordkeeping requirements. The proposed rule would add the following BIS notifications to the list of documents required to be kept under 15 CFR 762.2(a)(10):
- Return of application without action;
- Denial of application;
- Commodity classification or encryption review request.
Removal of requirement to attach replacement license to original. The proposed rule would revise 15 CFR 750.7(h)(4) to remove a requirement that the license holder attach a replacement license issued by BIS to the original license.
BIS states that the requirement dates to an era in which electronic licenses did not exist and is impractical with electronic licenses issued in SNAP-R. The proposed rule would retain the requirement that the license holder keep both the original license and the replacement license.
Electronic notification for License Exception AGR requests. BIS' proposed rule would revise 15 CFR 740.18(c)(5) to state that BIS will issue confirmation in SNAP-R or by other written notification of the decision that no agency has objected to a party's proposed use of License Exception AGR. (Currently, that section merely states that BIS will issue written confirmation.)
Removal of requirement to maintain electronic log. The proposed rule would remove the requirement currently found in 15 CFR 748.7(c) that companies maintain a log of electronic submissions, as it is redundant of information available in SNAP-R.
Removal of seal and attachment requirements, etc. The proposed rule would remove existing language in 15 CFR 750.7(b) regarding "computer generated" licenses, the Department of Commerce seal and attachments to license, and an explicit requirement that exporters use the license number when communicating with BIS about the license. Proposed 15 CFR 750.7(b) would merely state that BIS may issue export and reexport licenses either electronically or on paper, and that each license will bear a license number.
BIS states that the proposed language would allow it to exercise discretion in deciding whether to issue a license electronically in SNAP-R or on paper. However, BIS expects to issue nearly all licenses electronically. Unless some exceptional circumstances exist, only licenses for which the applicant was authorized to file on paper and licenses that BIS cannot issue electronically (currently, only reopened licenses) would be issued on paper.
BIS Would Continue Paper License-Related Documents in Certain Situations
BIS is not proposing to stop issuing paper license related documents in situations in which BIS authorized a paper submission and in situations in which BIS must reissue the license related documents because it reopened a matter previously considered to be completed. BIS also is not proposing to change its practices regarding issuance of Special Comprehensive Licenses or Special Iraq Reconstruction Licenses.
BIS notes that it is proposing to discontinue issuing paper documents only in the situations where it currently issues both paper and electronic versions of the license related documents.
BIS contact - Thomas Andrukonis (202) 482-6393
BIS proposed rule (D/N 0907201151-91153-01, FR Pub 12/04/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-28982.pdf