Chemical Weapons Convention Regulations and the Export Administration Regulations: Additions to Schedule 1(A) of the Annex on Chemicals to the Chemical Weapons Convention

As Enacted ( Federal Register)

Cited authorities 17

Cited in

Published date	07 January 2021
Citation	86 FR 936
Record Number	2020-27759
Section	Rules and Regulations
Court	Industry And Security Bureau

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Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations

List of Subjects in 12 CFR Part 747

Civil monetary penalties, Credit

unions.

Melane Conyers-Ausbrooks,

Secretary of the Board.

For the reasons stated in the

preamble, the Board amends 12 CFR

part 747 as follows:

PART 747—ADMINISTRATIVE

ACTIONS, ADJUDICATIVE HEARINGS,

RULES OF PRACTICE AND

PROCEDURE, AND INVESTIGATIONS

■1. The authority for part 747

continues to read as follows:

Authority: 12 U.S.C. 1766, 1782, 1784,

1785, 1786, 1787, 1790a, 1790d; 15 U.S.C.

1639e; 42 U.S.C. 4012a; Pub. L. 101–410;

Pub. L. 104–134; Pub. L. 109–351; Pub. L.

114–74.

■2. Revise § 747.1001 to read as

follows:

§ 747.1001 Adjustment of civil monetary

penalties by the rate of inflation.

(a) The NCUA is required by the

Federal Civil Penalties Inflation

Adjustment Act of 1990 (Pub. L. 101–

410, 104 Stat. 890, as amended (28

U.S.C. 2461 note)), to adjust the

maximum amount of each civil

monetary penalty (CMP) within its

jurisdiction by the rate of inflation. The

following chart displays those adjusted

amounts, as calculated pursuant to the

statute:

U.S. Code citation CMP description New maximum amount

(1) 12 U.S.C. 1782(a)(3) ................. Inadvertent failure to submit a report or the inadvertent submission of

a false or misleading report. $4,146.

(2) 12 U.S.C. 1782(a)(3) ................. Non-inadvertent failure to submit a report or the non-inadvertent sub-

mission of a false or misleading report. $41,463.

(3) 12 U.S.C. 1782(a)(3) ................. Failure to submit a report or the submission of a false or misleading

report done knowingly or with reckless disregard. $2,073,133 or 1 percent of the

total assets of the credit union,

whichever is less.

(4) 12 U.S.C. 1782(d)(2)(A) ............ Tier 1 CMP for inadvertent failure to submit certified statement of in-

sured shares and charges due to the National Credit Union Share

Insurance Fund (NCUSIF), or inadvertent submission of false or

misleading statement.

$3,791.

(5) 12 U.S.C. 1782(d)(2)(B) ............ Tier 2 CMP for non-inadvertent failure to submit certified statement or

submission of false or misleading statement. $37,901.

(6) 12 U.S.C. 1782(d)(2)(C) ............ Tier 3 CMP for failure to submit a certified statement or the submis-

sion of a false or misleading statement done knowingly or with

reckless disregard.

$1,895,095 or 1 percent of the

total assets of the credit union,

whichever is less.

(7) 12 U.S.C. 1785(a)(3) ................. Non-compliance with insurance logo requirements .............................. $129.

(8) 12 U.S.C. 1785(e)(3) ................. Non-compliance with NCUA security requirements .............................. $301.

(9) 12 U.S.C. 1786(k)(2)(A) ............ Tier 1 CMP for violations of law, regulation, and other orders or

agreements. $10,366.

(10) 12 U.S.C. 1786(k)(2)(B) .......... Tier 2 CMP for violations of law, regulation, and other orders or

agreements and for recklessly engaging in unsafe or unsound

practices or breaches of fiduciary duty.

$51,827.

(11) 12 U.S.C. 1786(k)(2)(C) .......... Tier 3 CMP for knowingly committing the violations under Tier 1 or 2

(natural person). $2,073,133.

(12) 12 U.S.C. 1786(k)(2)(C) .......... Tier 3 CMP for knowingly committing the violations under Tier 1 or 2

(insured credit union). $2,073,133 or 1 percent of the

total assets of the credit union,

whichever is less.

(13) 12 U.S.C. 1786(w)(5)(A)(ii) ...... Non-compliance with senior examiner post-employment restrictions ... $341,000.

(14) 15 U.S.C. 1639e(k) .................. Non-compliance with appraisal independence requirements ................ First violation: $11,906. Subse-

quent violations: $23,811.

(15) 42 U.S.C. 4012a(f)(5) .............. Non-compliance with flood insurance requirements ............................. $2,252.

(b) The adjusted amounts displayed in

paragraph (a) of this section apply to

civil monetary penalties that are

assessed after the date the increase takes

effect, including those whose associated

violation or violations pre-dated the

increase and occurred on or after

November 2, 2015.

[FR Doc. 2020–29181 Filed 1–6–21; 8:45 am]

BILLING CODE 7535–01–P

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 710, 712, and 745

[Docket No. 201211–0336]

RIN 0694–AH94

Chemical Weapons Convention

Regulations and the Export

Administration Regulations: Additions

to Schedule 1(A) of the Annex on

Chemicals to the Chemical Weapons

Convention

AGENCY

: Bureau of Industry and

Security, Commerce.

ACTION

: Final rule.

SUMMARY

: The Bureau of Industry and

Security (BIS) is publishing this final

rule to amend the Chemical Weapons

Convention Regulations (CWCR) and the

Export Administration Regulations

(EAR) to reflect recent additions to

Schedule 1(A) of the Annex on

Chemicals to the Convention on the

Prohibition of the Development,

Production, Stockpiling and Use of

Chemical Weapons and on Their

Destruction, also known as the

Chemical Weapons Convention (CWC).

This final rule also amends the

definition of ‘‘production’’ in the CWCR

to clarify the scope of this term as it

applies to declarations regarding the

production of ‘‘Schedule 1,’’ ‘‘Schedule

2,’’ or ‘‘Schedule 3’’ chemicals.

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Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations

DATES

: This rule is effective January 7,

2021.

FOR FURTHER INFORMATION CONTACT

: For

questions on the CWCR requirements

for ‘‘Schedule 1’’ chemicals, contact

Erica Sunyog, Treaty Compliance

Division, Office of Nonproliferation and

Treaty Compliance, Bureau of Industry

and Security, U.S. Department of

Commerce, Phone: (202) 482–6237.

SUPPLEMENTARY INFORMATION

Background

The Chemical Weapons Convention

(hereinafter, ‘‘CWC’’ or ‘‘Convention’’),

which entered into force on April 29,

1997, is an international arms control

treaty whose object and purpose is to

eliminate an entire category of weapons

of mass destruction by prohibiting the

development, production, acquisition,

stockpiling, retention, transfer or use of

chemical weapons by States Parties. The

CWC States Parties have agreed to

destroy any stockpiles of chemical

weapons they may hold and any

facilities that produced them, as well as

any chemical weapons they have

abandoned on the territory of other

States Parties. The CWC States Parties

also have agreed to implement a

comprehensive data declaration,

notification, and inspection regime for

those toxic chemicals and their

precursors listed in Schedule 1, 2 or 3

in the CWC Annex on Chemicals to

provide transparency and to verify that

their public and private sectors are not

engaged in activities prohibited under

the CWC.

In addition, each State Party has

agreed to adopt domestic legislation to

implement its obligations under the

Convention and to designate or establish

a National Authority to serve as the

national focal point for effective liaison

with the Organization for the

Prohibition of Chemical Weapons

(OPCW) and other States Parties. The

designated U.S. National Authority is

the Bureau of Arms Control, Verification

and Compliance, U.S. Department of

State. The OPCW was established by the

States Parties to achieve the object and

purpose of the Convention, to ensure

the implementation of its provisions

(including those pertaining to

international verification of

compliance), and to provide a forum for

consultation and cooperation among the

States Parties. All CWC States Parties

are members of the OPCW, which

includes the Conference of the States

Parties, the Executive Council, and the

Technical Secretariat.

The provisions of the CWC that affect

commercial activities involving

scheduled chemicals (including

‘‘Schedule 1’’ chemicals) are

implemented, pursuant to the Chemical

Weapons Convention Implementation

Act of 1998 (CWCIA) (22 U.S.C. 6701 et

seq.) and Executive Order 13128 (64 FR

34703, June 28, 1999), by the Chemical

Weapons Convention Regulations

(CWCR) (see 15 CFR parts 710–722) and

the Export Administration Regulations

(EAR) (see 15 CFR 742.18 and 15 CFR

part 745), both of which are

administered by the Bureau of Industry

and Security (BIS). Specifically, BIS

maintains the list of ‘‘Schedule 1’’

chemicals identified in the CWC Annex

on Chemicals in Supplement No. 1 to

part 712 of the CWCR and as part of

Supplement No. 1 to part 745 of the

EAR. BIS also administers the CWC

‘‘Schedule 1’’ chemical declaration,

reporting, notification, and verification

requirements that are described in part

712 of the CWCR. In addition, § 745.1 of

the EAR describes the advance

notification and annual report

requirements that apply to exports of

‘‘Schedule 1’’ chemicals.

The CWC identifies the toxic

chemicals and immediate precursors

listed under ‘‘Schedule 1’’ in the CWC

Annex on Chemicals as posing a high

risk to the object and purpose of the

Convention. Consistent with Part VI of

the CWC Verification Annex, the CWCR

restrict commercial production of

‘‘Schedule 1’’ chemicals to research,

medical, or pharmaceutical purposes

only. See 15 CFR 710.1, at definition of

Purposes not prohibited by the CWC,

and 15 CFR 710.2(b), Activities subject

to the CWCR. The CWCR prohibit

commercial production of ‘‘Schedule 1’’

chemicals for ‘‘protective purposes’’ (see

15 CFR 712.2(a)) consistent with

Presidential Decision Directive (PDD) 70

(December 17, 1999), which effectively

limits production for such purposes to

facilities operated by the Department of

Defense. These CWCR restrictions and

prohibitions apply to all persons and

facilities located in the United States,

except certain U.S. Government

facilities—see 15 CFR 710.2(a). In

addition to these general requirements

and prohibitions pertaining to

‘‘Schedule 1’’ chemicals, the CWCR:

(1) Prohibit the import of ‘‘Schedule

1’’ chemicals from States not Party to

the CWC (15 CFR 712.2(b));

(2) Require annual declarations by

facilities engaged in the production of

‘‘Schedule 1’’ chemicals in excess of 100

grams aggregate per calendar year (i.e.,

declared ‘‘Schedule 1’’ facilities) for

purposes not prohibited by the CWC (15

CFR 712.5(a)(1) and (a)(2));

(3) Provide for government approval

of declared ‘‘Schedule 1’’ facilities (15

CFR 712.5(f));

(4) Provide that declared ‘‘Schedule

1’’ facilities are subject to initial and

routine inspection by the OPCW (15

CFR 712.5(e) and 716.1(b)(1));

(5) Require 200 days advance

notification of establishment of new

‘‘Schedule 1’’ production facilities

producing greater than 100 grams

aggregate of ‘‘Schedule 1’’ chemicals per

calendar year (15 CFR 712.4);

(6) Require advance notification and

annual reporting to the Technical

Secretariat of the OPCW of all imports

and exports of ‘‘Schedule 1’’ chemicals

to, or from, other States Parties to the

CWC (15 CFR 712.6, 742.18(a)(1) and

745.1); and

(7) Prohibit the export of ‘‘Schedule

1’’ chemicals to States not Party to the

CWC (15 CFR 742.18(a)(1) and (b)(1)(ii)).

This final rule amends part 712 of the

CWCR and part 745 of the EAR to reflect

recent additions to Schedule 1(A) of the

CWC Annex on Chemicals, as described

below. In addition, this rule amends the

definition of ‘‘production’’ in part 710 of

the CWCR to clarify the scope of this

term as it applies to declarations

regarding the production of ‘‘Schedule

1,’’ ‘‘Schedule 2,’’ or ‘‘Schedule 3’’

chemicals.

This rule amends part 712 of the

CWCR and part 745 of the EAR to add

three ‘‘Schedule 1’’ chemical families

and one individual ‘‘Schedule 1’’

chemical to both sets of regulations,

consistent with two decisions adopted

by the States Parties to the CWC during

the OPCW’s 24th Conference of the

States Parties, held in The Hague, the

Netherlands, from November 25–29,

2019. Based on two separate proposals

submitted to the Director-General of the

OPCW, one by the United States,

Canada and the Netherlands, and the

other by the Russian Federation, these

decisions added three chemical families

and one individual chemical to

‘‘Schedule 1’’ in the CWC Annex on

Chemicals. The OPCW agreements are

documented in OPCW Decisions C–24/

DEC.4 and C–24/DEC.5 and may be

obtained from the OPCW website

(http://www.opcw.org). On December

10, 2019, the Director-General notified

all States Parties and the Depositary of

the CWC (i.e., the Secretary-General of

the United Nations) of the adoption of

these decisions by the Conference of the

States Parties. Pursuant to subparagraph

5(g) of Article XV of the CWC, these

changes to the Annex on Chemicals

entered into force for all States Parties

180 days after the date of this

notification, that is, on June 7, 2020.

The additions to ‘‘Schedule 1’’ of the

CWC Annex on Chemicals are as

follows:

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Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations

Schedule 1

A. Toxic chemicals:

(1) H-alkyl (H or ≤C

, incl. cycloalkyl)

N-(1-(dialkyl(≤C

, incl.

cycloalkyl)amino))alkylidene(H or ≤C

incl. cycloalkyl) phosphonamidic

fluorides and corresponding alkylated

or protonated salts

e.g. N-(1-(di-n-decylamino)-n-

decylidene)-P-decylphosphonamidic

fluoride (CAS No. 2387495–99–8)

Methyl-(1-

(diethylamino)ethylidene)

phosphonamidofluoridate (CAS No.

2387496–12–8)

(2) O-alkyl (H or ≤C

, incl.

cycloalkyl) N-(1-(dialkyl(≤C

, incl.

cycloalkyl)amino))alkylidene(H or ≤C

incl. cycloalkyl)

phosphoramidofluoridates and

corresponding alkylated or protonated

salts

e.g. O-n-Decyl N-(1-(di-n-decylamino)-n-

decylidene)phosphoramidofluoridate

(CAS No. 2387496–00–4)

Methyl (1-

(diethylamino)ethylidene)

phosphoramidofluoridate (CAS No.

2387496–04–8)

Ethyl (1-

(diethylamino)ethylidene)

phosphoramidofluoridate (CAS No.

2387496–06–0)

(3) Methyl-

(bis(diethylamino)methylene)

phosphonamidofluoridate (CAS No.

2387496–14–0)

(4) Carbamates (quaternaries and

bisquaternaries of

dimethylcarbamoyloxypyridines)

Quaternaries of

dimethylcarbamoyloxypyridines:

1-[N,N-dialkyl(≤C

)-N-(n-(hydroxyl,

cyano, acetoxy)alkyl(≤C

)) ammonio]-

n-[N-(3-dimethylcarbamoxy-a-

picolinyl)-N,N-dialkyl(≤C

)

ammonio]decane dibromide (n=1–8)

e.g. 1-[N,N-dimethyl-N-(2-

hydroxy)ethylammonio]-10-[N-(3-

dimethylcarbamoxy-a-picolinyl)-N,N-

dimethylammonio]decane dibromide

(CAS No. 77104–62–2)

Bisquaternaries of

dimethylcarbamoyloxypyridines:

1,n-Bis[N-(3-dimethylcarbamoxy-a-

picolyl)-N,N-dialkyl(≤C

) ammonio]-

alkane-(2,(n-1)-dione) dibromide

(n=2–12)

e.g. 1,10-Bis[N-(3-dimethylcarbamoxy-

a-picolyl)-N-ethyl-N-

methylammonio]decane-2,9-dione

dibromide (CAS No. 77104–00–8).

Notice of Inquiry on the Impact of

Proposed Additions to CWC ‘‘Schedule

1’’

Pursuant to Condition 23 to Senate

Resolution 75 (S. Res. 75, April 24,

1997), and as delegated from the

President, the Secretary of State, in

coordination with other U.S.

Government departments and agencies,

including the Department of Commerce,

must submit a report to the Senate

Committee on Foreign Relations

detailing, inter alia, the likely impact on

United States industry of the proposed

addition of a chemical or biological

substance to a schedule in the CWC

Annex on Chemicals. Consistent with

Condition 23, on August 14, 2019, BIS

published a notice of inquiry (84 FR

40389) that requested public comments

as to whether the legitimate commercial

activities and interests of chemical,

biotechnology, and pharmaceutical

firms in the United States would be

significantly harmed by the limitations

that would be imposed on access to, and

production of, the compounds included

in certain chemical families that had

been proposed for addition to

‘‘Schedule 1’’ in the CWC Annex on

Chemicals.

BIS did not receive any public

comments in response to this notice of

inquiry. Of the chemical families at

issue, three families of chemicals and

one individual chemical from a fourth

family, as described above, were added

to ‘‘Schedule 1’’ by the decisions

adopted at the Conference of the States

Parties in November 2019. These

additions to ‘‘Schedule 1’’ are reflected

in the amendments to the CWCR and

the EAR described below.

Amendments to Supplement No. 1 to

Part 712 of the CWCR (Schedule 1

Chemicals)

Supplement No. 1 to part 712 of the

CWCR identifies ‘‘Schedule 1’’

chemicals listed in the CWC Annex on

Chemicals. This rule amends

Supplement No. 1 to: (1) Include the

three chemical families and one

individual chemical that were added to

‘‘Schedule 1;’’ and (2) add a Note 3

following the list of chemicals to

explain that the numerical sequence of

the ‘‘Schedule 1’’ Toxic Chemicals and

Precursors specified therein is not

consecutive so as to align with the

December 23, 2019, consolidated textual

changes to the Annex on Chemicals,

which reflect the decisions adopted by

the CWC Conference of the States

Parties in November 2019. Specifically,

the chemicals listed in ‘‘Schedule 1(A),’’

Toxic Chemicals, are numbered 1–8 and

13–16 (the latter includes 16.1 and

16.2), while the chemicals listed in

‘‘Schedule 1(B),’’ Precursors, are

numbered 9–12.

This rule does not amend any of the

declaration, advance notification,

reporting or verification requirements in

part 712 of the CWCR that apply to

‘‘Schedule 1’’ chemicals or facilities

involved in the production of such

chemicals. Although the newly added

‘‘Schedule 1’’ chemicals are now subject

to these requirements, BIS estimates that

the amendments made by this rule will

not significantly affect the public

burden imposed by these requirements

because very few (if any) commercial

facilities in the United States produce

these chemicals. Consistent with this

estimate, BIS did not receive any

responses to its August 2019 notice of

inquiry requesting public comments on

the impact on U.S. industry of the

proposed addition of the families of

chemicals at issue to ‘‘Schedule 1’’ of

the CWC Annex on Chemicals. As

further evidence of the limited scope of

any potential commercial applications,

these chemicals are defense articles

subject to the export licensing

jurisdiction of the U.S. Department of

State (as described below).

Amendments to Supplement No. 1 to

Part 745 of the EAR (Schedules of

Chemicals)

Supplement No. 1 to part 745 of the

EAR includes the three schedules of

Chemicals (Schedules 1, 2 and 3)

contained in the CWC Annex on

Chemicals. This rule amends ‘‘Schedule

1’’ in Supplement No. 1 to reflect the

decisions adopted at the November 2019

CWC Conference of the States Parties to

add three chemical families and one

individual chemical to ‘‘Schedule 1’’ in

the CWC Annex on Chemicals. In

addition, this rule revises the formats of

‘‘Schedule 2 and ‘‘Schedule 3’’ for

consistency with the format of

‘‘Schedule 1,’’ as amended by this rule.

This rule also adds a Note following the

list of chemicals in Supplement No. 1 to

explain that the numerical sequence of

the ‘‘Schedule 1’’ Toxic Chemicals and

Precursors specified therein is not

consecutive so as to align with the

December 23, 2019, consolidated textual

changes to the Annex on Chemicals,

which reflect the decisions adopted by

the CWC Conference of the States

Parties in November 2019. Specifically,

the chemicals listed in ‘‘Schedule 1(A),’’

Toxic Chemicals, are numbered 1–8 and

13–16 (the latter includes 16.1 and

16.2), while the chemicals listed in

‘‘Schedule 1(B),’’ Precursors, are

numbered 9–12.

This rule does not amend the advance

notification and reporting requirements

for exports of ‘‘Schedule 1’’ chemicals

described in § 745.1 of the EAR, which

are, for all practical purposes, a cross-

reference to (or general restatement of)

the requirements in § 712.6 of the CWCR

(except that the CWCR requirements

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also apply to imports of ‘‘Schedule 1’’

chemicals). Furthermore, these newly

added ‘‘Schedule 1’’ chemicals are not

subject to the export licensing

jurisdiction of BIS under the EAR. All

‘‘Schedule 1’’ chemicals, except ricin

and saxitoxin (which are controlled

under Export Control Classification

Number 1C351 on the Commerce

Control List in Supplement No. 1 to part

774 of the EAR), are subject to the

export licensing jurisdiction of the

Directorate of Defense Trade Controls,

Department of State, under the

International Traffic in Arms

Regulations (ITAR) (22 CFR parts 120–

130). Consequently, the conforming

amendments made by this rule will not

affect the burden imposed on the public

by the ‘‘Schedule 1’’ chemical advance

notification and reporting requirements

described in § 745.1 of the EAR.

Clarification of the Definition of

‘‘Production’’ in Part 710 of the CWCR

This final rule amends the definition

of ‘‘production’’ in § 710.1 of the CWCR

to clarify its application to the CWCR’s

declaration requirements concerning the

production of ‘‘Schedule 1,’’ ‘‘Schedule

2,’’ or ‘‘Schedule 3’’ chemicals.

Specifically, this rule clarifies the

definition consistent with §§ 712.5(d),

713.2(a)(2)(ii) and 714.1(a)(2)(ii) of the

CWCR (as amended by the April 27,

2006, CWCR final rule (81 FR 24918)),

whereby ‘‘Schedule 1,’’ ‘‘Schedule 2,’’

or ‘‘Schedule 3’’ chemicals that are

intermediates, but not transient

intermediates, must be considered when

determining if a chemical is subject to

the declaration requirements in the

CWCR. (See the OPCW Conference of

the States Parties Decisions that form

the basis of this treatment of such

intermediates: C–10/DEC.12, November

10, 2005, ‘‘Understanding Relating to

the Concept of ‘Captive Use’ in

Connection with Declarations of

Production and Consumption Under

Part VI of the Verification Annex to the

Convention;’’ and C–9/DEC.6,

November 30, 2004, ‘‘Understanding of

the Concept of ‘Captive Use’ in

Connection with Declarations of

Production and Consumption Under

Parts VII and VIII of the Verification

Annex to the Chemical Weapons

Convention.’’)

As amended by this rule, the

definition of ‘‘production’’ in § 710.1 of

the CWCR is understood (for purposes

of the ‘‘Schedule 1,’’ ‘‘Schedule 2,’’ and

‘‘Schedule 3’’ chemical declaration

requirements in the CWCR) to include

intermediates, by-products, or waste

products that are produced and

consumed within a defined chemical

manufacturing sequence, where such

intermediates, by-products, or waste

products are chemically stable and

therefore exist for a sufficient time to

make isolation from the manufacturing

stream possible, but where, under

normal or design operating conditions,

isolation does not occur.

Rulemaking Requirements

1. Executive Orders 13563 and 12866

direct agencies to assess all costs and

benefits of available regulatory

alternatives and, if regulation is

necessary, to select regulatory

approaches that maximize net benefits

(including: Potential economic,

environmental, public health and safety

effects; distributive impacts; and

equity). Executive Order 13563

emphasizes the importance of

quantifying both costs and benefits and

of reducing costs, harmonizing rules,

and promoting flexibility. This final rule

has been determined to be not

significant for purposes of Executive

Order 12866. This rule is not an

Executive Order 13771 regulatory action

because this rule is not significant under

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.) (PRA), unless that collection of

information displays a currently valid

Office of Management and Budget

(OMB) Control Number. This rule

contains the following collections of

information subject to the requirements

of the PRA. These collections have been

approved by OMB under control

numbers 0694–0091 (Chemical

Weapons Convention Declaration and

Report Handbook and Forms &

Chemical Weapons Convention

Regulations (CWCR)) and 0694–0117

(Chemical Weapons Convention

Provisions of the Export Administration

Regulations (EAR)). The approved

information collection under OMB

control number 0694–0091 includes

CWCR declarations, reports,

notifications, and on-site inspections of

chemical facilities and carries a total

burden estimate of 14,813 hours. The

approved information collection under

OMB control number 0694–0117

includes Schedule 1 chemical advance

notifications and annual reports,

Schedule 3 chemical End-Use

Certificates, and exports of

‘‘technology’’ to produce certain

Schedule 2 and Schedule 3 chemicals

and carries a total burden estimate of 42

burden hours.

BIS estimates that the overall increase

in costs and burdens due to the

implementation of the changes made by

this final rule will be minimal, based on

the fact that there are very few, if any,

commercial applications for the

‘‘Schedule 1’’ chemicals added by this

rule to Supplement No. 1 to part 712 of

the CWCR and Supplement No. 1 to part

745 of the EAR. Consistent with this

estimate, BIS did not receive any

responses to its August 2019 notice of

inquiry described herein. Additional

evidence of the limited scope of

potential commercial applications is

that the chemicals at issue are defense

articles subject to the export licensing

jurisdiction of the Department of State.

Also, pursuant to § 710.2(a) of the

CWCR, certain U.S. Government

facilities (e.g., Department of Defense

and Department of Energy facilities) are

not subject to the CWCR and,

consequently, the costs and burdens of

the requirements described therein do

not apply to such facilities.

In addition, although the newly added

‘‘Schedule 1’’ chemicals are subject to

the declaration, advance notification,

reporting or verification requirements in

part 712 of the CWCR, the fact that these

chemicals have few potential

commercial applications will, as a

practical matter, limit the impact of

these requirements. Consequently, the

amendments made by this rule will not

significantly alter the costs and burdens

imposed on the public by such CWCR

requirements. Furthermore, because

these newly added ‘‘Schedule 1’’

chemicals are defense articles subject to

the export licensing jurisdiction of the

Department of State under the ITAR, the

conforming amendments made by this

rule do not add to, or otherwise affect,

any export licensing requirements in the

EAR; nor, as a practical matter, will they

significantly alter the costs and burdens

imposed on the public by the reporting

and advance notification requirements

described in § 745.1 of the EAR.

Written comments and

recommendations for the information

collections referenced above should be

sent within 30 days of the publication

of this final rule to: www.reginfo.gov/

public/do/PRAMain. The public may

locate these particular information

collections by selecting ‘‘Currently

under 30-day Review—Open for Public

Comments’’ or by using the search

function.

3. This rule does not contain policies

with Federalism implications as that

term is defined in Executive Order

13132.

4. The provisions of the

Administrative Procedure Act (5 U.S.C.

553) requiring notice of proposed

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rulemaking, the opportunity for public

participation, and a delay in effective

date, are inapplicable because this

regulation involves a military and

foreign affairs function of the United

States (see 5 U.S.C. 553(a)(1)).

Immediate implementation of these

amendments is non-discretionary and

fulfills the United States’ international

obligations under the CWC. The CWC is

an international arms control treaty

prohibiting the development,

production, acquisition, stockpiling,

retention, transfer or use of chemical

weapons by States Parties in order to

eliminate an entire category of weapons

of mass destruction. The 193 CWC

States Parties have agreed to, among

other things, implement a

comprehensive data declaration,

notification, and inspection regime for

those toxic chemicals and their

precursors listed in Schedules 1, 2 or 3

in the CWC Annex on Chemicals (the

Annex). The amendments set forth in

this rule implement two decisions

adopted by the States Parties during the

OPCW’s 24th Conference of the States

Parties, held in The Hague, the

Netherlands, from November 25–29,

2019, and clarify a definition in the

CWCR to ensure consistency with the

CWCR’s declaration requirements

regarding the production of ‘‘Schedule

1,’’ ‘‘Schedule 2,’’ or ‘‘Schedule 3’’

chemicals.

These provisions of the

Administrative Procedure Act also are

waived for good cause, as unnecessary

and contrary to the public interest (see

5 U.S.C. 553(b)(B)). This rule brings the

CWCR and the EAR into conformity

with recent updates to ‘‘Schedule 1’’ in

the Annex by amending Supplement

No. 1 to part 712 of the CWCR and

Supplement No. 1 to part 745 of the

EAR. These changes to the Annex

entered into force, with respect to all

States Parties to the CWC, on June 7,

2020. As a State Party, the United States

became obligated to apply the

declaration, advance notification,

reporting and verification requirements

in part 712 of the CWCR to these newly

added ‘‘Schedule 1’’ chemicals as of that

date.

Because these obligations will have

already come into effect by the time this

rule is published, a delay of this

rulemaking to allow for notice and

opportunity for public comment would

be unnecessary. As indicated above, the

U.S. has no discretion in this matter—

it must implement these changes as a

State Party.

Even if these changes were

discretionary, a delay of this rulemaking

to allow for notice and opportunity for

public comment would be unnecessary.

Based on the lack of any responses to

BIS’s August 14, 2019, notice of inquiry

requesting public comments on the

impact of the addition of these

chemicals (together with others) to the

Annex, it does not appear that there any

many (if any) chemical, biotechnology,

or pharmaceutical firms in the U.S. that

would be adversely affected by the

substance of this rule. Moreover, these

chemicals are defense articles subject to

the export licensing jurisdiction of the

Department of State under the ITAR

and, consequently, have few potential

commercial applications.

Similarly, a delay of this rulemaking

to provide notice and opportunity for

public comment would be contrary to

the public interest, as would a 30-day

delay in effective date, given the fact

that the restrictions associated with the

addition of these chemicals to the

Annex have already come into force for

CWC States Parties as of June 7, 2020.

Providing notice and opportunity for

public comment and a 30-day delay in

effectiveness would not only impair the

ability of the United States to fulfill its

obligations as a State Party in a timely

manner, it also might lead the public to

mistakenly assume that these changes

are discretionary. Such measures might

also have a significant adverse impact

upon the ability of U.S. companies to

comply in a timely fashion with the

declaration, advance notification,

reporting, and other requirements that

apply to these newly added ‘‘Schedule

1’’ chemicals, as they would have to

wait until the amendments adding these

chemicals to the CWCR and the EAR

have taken effect. Consequently, any

further delay in implementation would

adversely impact the ability of the

United States to meet its ‘‘Schedule 1’’

chemical declaration, notification, and

reporting obligations to the OPCW with

respect to these newly added ‘‘Schedule

1’’ chemicals. Conversely, timely

publication of these regulatory changes,

with immediate effectiveness, would

provide U.S. companies with adequate

time to adjust their recordkeeping and

other activities in advance of any

deadlines that would apply to the

submission of declarations, advance

notifications, or reports associated with

the newly added ‘‘Schedule 1’’

chemicals, thereby making it possible

for the U.S. to meet its CWC obligations

in this regard.

For similar reasons, application of the

APA’s notice and comment and 30-day

delay in effectiveness requirements to

the clarification to the definition of

‘‘production’’ set forth in § 710.1 of the

CWCIA made as part of this rule would

be unnecessary and contrary to the

public interest. The clarification merely

conforms the definition to language

already set forth in the CWCIA’s

declaration requirements that apply to

‘‘Schedule 1,’’ ‘‘Schedule 2,’’ and

‘‘Schedule 3’’ chemicals.

Because a notice of proposed

rulemaking and an opportunity for

public comment are not required to be

given for this rule by the APA or any

other law, the analytical requirements of

the Regulatory Flexibility Act (5 U.S.C.

601 et seq.) are not applicable.

Accordingly, no regulatory flexibility

analysis is required, and none has been

prepared.

List of Subjects

15 CFR Part 710

Chemicals, Exports, Foreign trade,

Imports, Treaties.

15 CFR Part 712

Chemicals, Exports, Foreign trade,

Imports, Reporting and recordkeeping

requirements.

15 CFR Part 745

Administrative practice and

procedure, Chemicals, Exports, Foreign

trade, Reporting and recordkeeping

requirements.

For the reasons stated in the

preamble, parts 710 and 712 of the

Chemical Weapons Convention

Regulations (15 CFR parts 710–722) and

part 745 of the Export Administration

Regulations (15 CFR parts 730–774) are

amended as follows:

PART 710—GENERAL INFORMATION

AND OVERVIEW OF THE CHEMICAL

WEAPONS CONVENTION

REGULATIONS (CWCR)

■1. The authority citation for 15 CFR

part 710 continues to read as follows:

Authority: 22 U.S.C. 6701 et seq.; E.O.

13128, 64 FR 36703, 3 CFR 1999 Comp., p.

199.

■2. In § 710.1, the definition of

‘‘Production’’ is revised to read as

follows:

§ 710.1 Definitions of terms used in the

Chemical Weapons Convention Regulations

(CWCR).

* * * * *

Production. Means the formation of a

chemical through chemical reaction,

including biochemical or biologically

mediated reaction (see supplement no. 2

to this part).

(1) Production of Schedule 1

chemicals means formation through

chemical synthesis as well as processing

to extract and isolate Schedule 1

chemicals.

(2) Production of a Schedule 2 or

Schedule 3 chemical means all steps in

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the production of a chemical in any

units within the same plant through

chemical reaction, including any

associated processes (e.g., purification,

separation, extraction, distillation, or

refining) in which the chemical is not

converted into another chemical. The

exact nature of any associated process

(e.g., purification, etc.) is not required to

be declared.

(3) Production of a Schedule 1,

Schedule 2 or Schedule 3 chemical is

understood, for declaration purposes, to

include intermediates, by-products, or

waste products that are produced and

consumed within a defined chemical

manufacturing sequence, where such

intermediates, by-products, or waste

products are chemically stable and

therefore exist for a sufficient time to

make isolation from the manufacturing

stream possible, but where, under

normal or design operating conditions,

isolation does not occur.

* * * * *

PART 712—ACTIVITIES INVOLVING

SCHEDULE 1 CHEMICALS

■3. The authority citation for 15 CFR

part 712 continues to read as follows:

Authority: 22 U.S.C. 6701 et seq.; 50 U.S.C.

1601 et seq.; 50 U.S.C. 1701 et seq.; E.O.

12938, 59 FR 59099, 3 CFR, 1994 Comp., p.

950, as amended by E.O. 13094, 63 FR 40803,

3 CFR, 1998 Comp., p. 200; E.O. 13128, 64

FR 36703, 3 CFR 1999 Comp., p. 199.

■4. Supplement No. 1 to part 712 is

amended by revising the table and

adding a Note 3 to the Notes to

Supplement No. 1 to read as follows:

UPPLEMENT

. 1

ART

712—S

CHEDULE

1 C

HEMICALS

CAS

registry No.

A. Toxic Chemicals:

1. Family: O-Alkyl(≤C

, incl. cycloalkyl) alkyl (Me, Et, n-Pr or i-Pr)- phosphonofluoridates

Not limited to the following examples:

Sarin: O-Isopropyl methylphosphonofluoridate .............................................................................................................. 107–44–8

Soman: O-Pinacolyl methylphosphonofluoridate ........................................................................................................... 96–64–0

2. Family: O-Alkyl (≤C

, incl. cycloalkyl) N,N-dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidocyanidates

Not limited to the following example:

Tabun: O-Ethyl N,N-dimethyl phosphoramidocyanidate 77–81–6

3. Family: O-Alkyl (H or ≤C

, incl. cycloalkyl) S-2-dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl (Me, Et, n-Pr or i-Pr)

phosphonothiolates and corresponding alkylated or protonated salts

Not limited to the following example:

VX: O-Ethyl S-2-diisopropylaminoethyl methyl phosphonothiolate 50782–69–9

4. Sulfur mustards:

2-Chloroethylchloromethylsulfide .......................................................................................................................................... 2625–76–5

Mustard gas: Bis(2-chloroethyl)sulfide .................................................................................................................................. 505–60–2

Bis(2-chloroethylthio)methane ............................................................................................................................................... 63869–13–6

Sesquimustard: 1,2-Bis(2-chloroethylthio)ethane ................................................................................................................. 3563–36–8

1,3-Bis(2-chloroethylthio)-n-propane ..................................................................................................................................... 63905–10–2

1,4-Bis(2-chloroethylthio)-n-butane ....................................................................................................................................... 142868–93–7

1,5-Bis(2-chloroethylthio)-n-pentane ..................................................................................................................................... 142868–94–8

Bis(2-chloroethylthiomethyl)ether .......................................................................................................................................... 63918–90–1

O-Mustard: Bis(2-chloroethylthioethyl)ether .......................................................................................................................... 63918–89–8

5. Lewisites:

Lewisite 1: 2-Chlorovinyldichloroarsine ................................................................................................................................. 541–25–3

Lewisite 2: Bis(2-chlorovinyl)chloroarsine ............................................................................................................................. 40334–69–8

Lewisite 3: Tris(2-chlorovinyl)arsine ...................................................................................................................................... 40334–70–1

6. Nitrogen mustards:

HN1: Bis(2-chloroethyl)ethylamine ........................................................................................................................................ 538–07–8

HN2: Bis(2-chloroethyl)methylamine ..................................................................................................................................... 51–75–2

HN3: Tris(2-chloroethyl)amine .............................................................................................................................................. 555–77–1

7. Saxitoxin ................................................................................................................................................................................... 35523–89–8

8. Ricin .......................................................................................................................................................................................... 9009–86–3

13. Family: H-alkyl (H or ≤C

, incl. cycloalkyl) N-(1-(dialkyl(≤C

, incl. cycloalkyl)amino))alkylidene(H or ≤C

, incl.

cycloalkyl) phosphonamidic fluorides and corresponding alkylated or protonated salts

Not limited to the following examples:

N-(1-(di-n-decylamino)-n-decylidene)-P-decylphosphonamidic fluoride ........................................................................ 2387495–99–8

Methyl-(1-(diethylamino)ethylidene)phosphonamidofluoridate ....................................................................................... 2387496–12–8

14. Family: O-alkyl (H or ≤C

, incl. cycloalkyl) N-(1-(dialkyl(≤C

, incl. cycloalkyl)amino))alkylidene(H or ≤C

, incl.

cycloalkyl) phosphoramidofluoridates and corresponding alkylated or protonated salts

Not limited to the following examples:

O-n-Decyl N-(1-(di-n-decylamino)-n decylidene)phosphoramidofluoridate .................................................................... 2387496–00–4

Methyl (1-(diethylamino)ethylidene)phosphoramidofluoridate ....................................................................................... 2387496–04–8

Ethyl (1-(diethylamino)ethylidene)phosphoramidofluoridate .......................................................................................... 2387496–06–0

15. Methyl-(bis(diethylamino)methylene)phosphonamidofluoridate ............................................................................................. 2387496–14–0

16. Carbamates (quaternaries and bisquaternaries of dimethylcarbamoyloxypyridines)

16.1. Family: Quaternaries of dimethylcarbamoyloxypyridines: 1-[N,N-dialkyl(≤C

)-N-(n-(hydroxyl, cyano,

acetoxy)alkyl(≤C

)) ammonio]-n-[N-(3-dimethylcarbamoxy-a-picolinyl)-N,N-dialkyl(≤C

) ammonio]decane dibromide (n=1-

Not limited to the following example:

1-[N,N-dimethyl-N-(2-hydroxy)ethylammonio]-10-[N-(3-dimethylcarbamoxy-a-picolinyl)-N,N-

dimethylammonio]decane dibromide .......................................................................................................................... 77104–62–2

16.2. Family: Bisquaternaries of dimethylcarbamoyloxypyridines:1,n-Bis[N-(3-dimethylcarbamoxy-a-picolyl)-N,N-dialkyl(≤C

)

ammonio]-alkane-(2,(n-1)-dione) dibromide (n=2-12)

Not limited to the following example:

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UPPLEMENT

. 1

ART

712—S

CHEDULE

1 C

HEMICALS

—Continued

CAS

registry No.

1,10-Bis[N-(3-dimethylcarbamoxy-a-picolyl)-N-ethyl-N- methylammonio]decane-2,9-dione dibromide ........................ 77104–00–8

B. Precursors:

9. Family: Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides

Not limited to the following example:

DF: Methylphosphonyldifluoride ..................................................................................................................................... 676–99–3

10. Family: O-Alkyl (H or ≤C

, incl. cycloalkyl) O-2-dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl (Me, Et, n-Pr or i-Pr)

phosphonites and corresponding alkylated or protonated salts

Not limited to the following example:

QL: O-Ethyl O-2-diisopropylaminoethyl methylphosphonite .......................................................................................... 57856–11–8

11. Chlorosarin: O-Isopropyl methylphosphonochloridate ........................................................................................................... 1445–76–7

12. Chlorosoman: O-Pinacolyl methylphosphonochloridate ........................................................................................................ 7040–57–5

Notes to Supplement No. 1

* * * * *

NOTE 3

: The numerical sequence of the

‘‘Schedule 1’’ Toxic Chemicals and

Precursors is not consecutive so as to align

with the December 23, 2019, consolidated

textual changes to ‘‘Schedule 1’’ of the Annex

on Chemicals to the Chemical Weapons

Convention (CWC), which reflect the

decisions adopted by the CWC Conference of

the States Parties in November 2019.

PART 745—CHEMICAL WEAPONS

CONVENTION REQUIREMENTS

■5. The authority citation for 15 CFR

part 745 is revised to read as follows:

Authority: 50 U.S.C. 1701 et seq.; E.O.

12938, 59 FR 59099, 3 CFR, 1994 Comp., p.

950); 22 U.S.C. 6701 et seq.; E.O. 13128, 64

FR 36703, 3 CFR 1999 Comp., p. 199; 50

U.S.C. 4801–4852; Notice of November 12,

2019, 84 FR 61817 (November 13, 2019).

■6. Supplement No. 1 to part 745 is

revised to read as follows:

UPPLEMENT

. 1

ART

745—S

CHEDULES OF

HEMICALS

CAS

registry No.

Schedule 1

A. Toxic Chemicals:

1. Family: O-Alkyl(≤C

, incl. cycloalkyl) alkyl (Me, Et, n-Pr or i-Pr)- phosphonofluoridates

Not limited to the following examples:

Sarin: O-Isopropyl methylphosphonofluoridate .............................................................................................................. 107–44–8

Soman: O-Pinacolyl methylphosphonofluoridate ........................................................................................................... 96–64–0

2. Family: O-Alkyl (≤C

, incl. cycloalkyl) N,N-dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidocyanidates

Not limited to the following example:

Tabun: O-Ethyl N,N-dimethyl phosphoramidocyanidate ................................................................................................ 77–81–6

3. Family: O-Alkyl (H or ≤C

, incl. cycloalkyl) S-2-dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl (Me, Et, n-Pr or i-Pr)

phosphonothiolates and corresponding alkylated or protonated salts

Not limited to the following example:

VX: O-Ethyl S-2-diisopropylaminoethyl methyl phosphonothiolate ............................................................................... 50782–69–9