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Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations
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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 CWCRs declaration requirements concerning the production of Schedule 1, Schedule 2, or Schedule 3 chemicals.
Specifically, this rule clarifies the definition consistent with 712.5d, 713.2a2ii and 714.1a2ii 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: C10/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 C9/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
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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 06940091 Chemical Weapons Convention Declaration and Report Handbook and Forms &
Chemical Weapons Convention Regulations CWCR and 06940117
Chemical Weapons Convention Provisions of the Export Administration Regulations EAR. The approved information collection under OMB
control number 06940091 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 06940117
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.

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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 710.2a 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 ReviewOpen 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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