
[Federal Register: July 25, 2008 (Volume 73, Number 144)]
[Proposed Rules]               
[Page 43567-43600]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25jy08-22]                         


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Part IV





Department of Commerce





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Bureau of Industry and Security



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15 CFR Parts 781, 782, 783 et al.



Additional Protocol Regulations; Proposed Rule


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 781, 782, 783, 784, 785 and 786

[Docket No. 08021265-8693-01]
RIN 0694-AD26

 
Additional Protocol Regulations

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Proposed rule and request for comments.

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SUMMARY: This proposed rule would implement the provisions of the 
Protocol Additional to the Agreement Between the United States of 
America and the International Atomic Energy Agency (IAEA) for the 
Application of Safeguards in the United States of America (the 
``Additional Protocol''). The Additional Protocol is an agreement 
between the United States and the IAEA to allow monitoring and 
reporting of certain civil nuclear fuel cycle-related activities.
    The Department of Commerce's Bureau of Industry and Security (BIS) 
is proposing these Additional Protocol Regulations (APR) to implement 
the provisions of the Additional Protocol affecting U.S. industry and 
other U.S. persons engaged in certain civil nuclear fuel cycle-related 
activities, which are not regulated by the U.S. Nuclear Regulatory 
Commission (NRC) or its domestic Agreement States and are not located 
on certain U.S. government locations. The proposed APR describe the 
requirement to report such activities to BIS, the scope and conduct of 
IAEA complementary access to locations at which such civil nuclear fuel 
cycle-related activities take place, and the role of BIS in 
implementing the Additional Protocol in the United States. The impact 
of the APR on U.S. industry and other U.S. persons will involve the 
submission of initial reports, annual update reports, and other 
reporting requirements, as well as on-site activities in conjunction 
with complementary access. Other U.S. government agencies issuing 
regulations implementing other provisions of the Additional Protocol 
include the Nuclear Regulatory Commission, the Department of Energy, 
and the Department of Defense.

DATES: Comments must be received by August 25, 2008.

ADDRESSES: You may submit comments, identified by RIN 0694-AD26, by any 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the on-line instructions for submitting comments.
     E-mail: publiccomments@bis.doc.gov. Include ``RIN 0694-
AD26'' in the subject line of the message.
     Fax: (202) 482-3355. Please alert the Regulatory Policy 
Division, by calling (202) 482-2440, if you are faxing comments.
     Mail or Hand Delivery/Courier: Willard Fisher, U.S. 
Department of Commerce, Bureau of Industry and Security, Regulatory 
Policy Division, 14th St. & Pennsylvania Avenue, NW., Room 2705, 
Washington, DC 20230, Attn: RIN 0694-AD26.

FOR FURTHER INFORMATION CONTACT: For questions of a general or 
regulatory nature, contact the Regulatory Policy Division, telephone: 
(202) 482-2440. For program information on reports and complementary 
access, contact Jill Shepherd, Treaty Compliance Division, Office of 
Nonproliferation and Treaty Compliance, telephone: (202) 482-1001. For 
legal questions, contact Rochelle Woodard, Office of the Chief Counsel 
for Industry and Security, telephone: (202) 482-5301.

SUPPLEMENTARY INFORMATION:

Background

I. Origins and Overview of the Additional Protocol

    The requirement for a comprehensive international safeguards system 
to prevent the spread of nuclear weapons was first established by the 
Treaty on the Non-Proliferation of Nuclear Weapons (NPT). The NPT was 
signed by the United States on July 1, 1968, and entered into force on 
March 5, 1970. The treaty banned nuclear weapon states (NWS) from 
transferring nuclear weapons to non-nuclear weapon states (NNWS) or 
assisting NNWS in acquiring such weapons. It also banned NNWS from 
manufacturing or acquiring nuclear weapons and stipulated that each 
NNWS Party to the NPT would undertake to accept safeguards, as set 
forth in an agreement to be negotiated and concluded with the 
International Atomic Energy Agency (IAEA), which serves as the official 
international verification authority for the implementation of 
safeguards agreements concluded pursuant to the NPT. Although NWS, 
including the United States, are not obligated under the NPT to accept 
IAEA safeguards, all have voluntarily offered to accept safeguards on 
certain activities to encourage NNWS to meet their obligations. The 
IAEA completed formulation of detailed provisions for a model NPT 
Safeguards Agreement in 1971. The safeguards system, as embodied in the 
comprehensive safeguards agreements concluded between the IAEA and 
individual NNWS States Parties to the NPT, consists of nuclear material 
accountancy and nuclear material verification measures by which the 
IAEA independently verifies declarations made by individual States 
Parties about their nuclear material and activities to ensure that 
nuclear material inventories and flows have been accurately declared 
and are not being used to further any proscribed purpose.
    During deliberations on the NPT, several major industrialized 
nations expressed concern that the absence of requirements for IAEA 
safeguards in NWS would place NNWS at a commercial and industrial 
disadvantage in developing nuclear energy for peaceful purposes. 
Specifically, the NNWS were concerned that application of safeguards 
would interfere with the efficient operations of their commercial 
activities and would possibly compromise industrial and trade secrets 
as a result of access by IAEA inspectors to their facilities and 
records. In order to allay these concerns, the United States 
voluntarily offered in 1967 to permit the IAEA to apply safeguards to 
civil nuclear facilities in the United States. The U.S. ``Voluntary 
Offer'' is set forth in the ``Agreement Between the United States of 
America and the International Atomic Energy Agency for the Application 
of Safeguards in the United States of America'' (also known as the 
``U.S.-IAEA Safeguards Agreement''). Since then, the other four NWS 
recognized under the NPT (China, France, the Russian Federation, and 
the United Kingdom) also agreed to make all or part of their civil 
nuclear activities eligible for IAEA safeguards.
    The U.S.-IAEA Safeguards Agreement was signed on November 18, 1977, 
and entered into force on December 9, 1980. At that time, the United 
States submitted to the IAEA a list of more than 200 eligible 
facilities for which safeguards could be applied if selected by the 
IAEA. This list included facilities licensed by the U.S. Nuclear 
Regulatory Commission (NRC), as well as eligible Department of Energy 
facilities. The United States has added additional facilities to the 
eligible facilities list since that time. Under the U.S.-IAEA 
Safeguards Agreement, approximately eighteen facilities have been 
selected for safeguards inspection and/or monitoring since 1981.
    Although the U.S.-IAEA Safeguards Agreement is based on the model 
safeguards agreement developed by the

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IAEA, the terms of the U.S.-IAEA Safeguards Agreement and the 
obligations of NNWS parties to the NPT differ in several respects. 
First, the U.S.-IAEA Safeguards Agreement excludes nuclear facilities 
associated with activities of direct national security significance. 
Also, the United States decides which civil nuclear facilities are 
eligible for the full program of safeguards procedures (including 
routine inspections) and the IAEA decides which eligible facilities 
will be selected for the application of safeguards, although the IAEA 
need not select any. Furthermore, the United States has made separate 
commitments to provide to the IAEA, for safeguards purposes, 
information on exports of nuclear material and nuclear-related 
equipment and materials.
    In the aftermath of the 1991 Persian Gulf War, the IAEA determined 
that Iraq had been engaged in a clandestine nuclear weapons development 
program at locations not directly subject to routine IAEA safeguards 
inspections. The international community determined that the safeguards 
system needed to be strengthened, and negotiated a Model Additional 
Protocol to amend existing bilateral safeguards agreements (i.e., the 
``Model Protocol Additional to the Agreement(s) Between State(s) and 
the International Atomic Energy Agency for the Application of 
Safeguards,'' INFCIRC/540 (Corrected) September 1997). The Model 
Additional Protocol requires enhanced information collection and access 
to sites and other locations involved in nuclear fuel cycle-related 
activities and covers almost all of a state's nuclear fuel cycle, 
thereby providing IAEA inspectors with greater ability to detect 
clandestine nuclear activities in NNWS facilities, sites, and locations 
that are involved in nuclear fuel cycle activities. In an effort to 
encourage adoption of the Additional Protocol among NNWS, the United 
States signed the Additional Protocol on June 12, 1998. In the 
Additional Protocol, the United States accepts all of the measures of 
the Model Additional Protocol, except where their application would 
result in access by the IAEA to activities of direct national security 
significance to the United States or to locations or information 
associated with such activities. By subjecting itself to the same 
safeguards on all of its civil nuclear activities that NNWS are subject 
to (with the exception of those activities of direct national security 
significance), the United States intends to encourage widespread 
adherence to the Model Additional Protocol and demonstrate that 
adherence does not place other countries at a commercial disadvantage.
    The Additional Protocol will enter into force when the United 
States notifies the IAEA that the statutory and constitutional 
requirements for entry into force have been met. These requirements 
include: (1) Ratification, to which the Senate provided advice and 
consent with certain conditions and understandings on March 31, 2004; 
(2) enactment of implementing legislation, which was signed by the 
President on December 18, 2006 (The U.S. Additional Protocol 
Implementation Act of 2006 (Pub. L. 109-401, 120 Stat. 2726 (2006)); 
(3) issuance of an Executive Order, which was issued on February 5, 
2008; (4) issuance of agency regulations by the Departments of 
Commerce, Defense, and Energy, and by the Nuclear Regulatory Commission 
(DOC, DOD, DOE, and NRC); and (5) certification by the President that 
certain Senate conditions have been met. The United States' instrument 
of ratification may be deposited with the IAEA only after the President 
has certified that two Senate conditions, which address the application 
of the national security exclusion in Articles 1.b and 1.c of the 
Additional Protocol (i.e., managed access, security and counter-
intelligence training, and preparation at locations of direct national 
security significance) and the completion of site vulnerability 
assessments concerning activities, locations, and information of direct 
national security significance, will be met within 180 days after 
deposit of the United States' instrument of ratification.
    The Additional Protocol consists of the following articles and 
annexes:

Article 1: Relationship between the Additional Protocol and the 
U.S.-IAEA Safeguards Agreement
Articles 2 and 3: Provision of information
Articles 4 through 10: Complementary access
Article 11: Designation of IAEA inspectors
Article 12: Visas
Article 13: Subsidiary arrangements
Article 14: Communications systems
Article 15: Protection of confidential information
Article 16: Annexes
Article 17: Entry into force
Article 18: Definitions
Annex I: List of activities referred to in the Additional Protocol
Annex II: List of specified equipment and non-nuclear material for 
reporting of exports and imports

    The Additional Protocol requires the United States to declare to 
the IAEA a number of nuclear fuel cycle-related items, materials, and 
activities that may be used for peaceful nuclear purposes, but that 
also could be necessary elements for a nuclear weapons program. In 
order to obtain the information necessary to complete the U.S. 
declaration to the IAEA, the U.S. Government must collect reports from 
U.S. industry and other U.S. persons. U.S. declarations submitted under 
the Additional Protocol would provide the IAEA with information about 
additional aspects of the U.S. civil nuclear fuel cycle, including: 
mining and concentration of nuclear ores; nuclear-related equipment 
manufacturing, assembly, or construction; imports, exports, and other 
activities involving certain source material (i.e., source material 
that has not reached the composition and purity suitable for fuel 
fabrication or for being isotopically enriched); imports and exports of 
specified nuclear equipment and non-nuclear material; nuclear fuel 
cycle-related research and development activities not involving nuclear 
material; and other activities involving nuclear material not currently 
subject to the U.S.-IAEA Safeguards Agreement.
    Within 180 days after deposit of the United States' instrument of 
ratification of the Additional Protocol, the United States must submit 
to the IAEA a declaration containing information compiled from the 
Initial Reports submitted to BIS in accordance with the proposed 
requirements of Section 783.1(a) of the APR. Thereafter, by May 15th of 
each succeeding year, the United States must submit to the IAEA a 
declaration containing an annual update to the information contained in 
previous U.S. declarations to the IAEA. The U.S. annual declaration to 
the IAEA will contain information compiled, for the most part, from the 
Annual Update Reports submitted to BIS in accordance with the proposed 
requirements of Section 783.1(b) of the APR.
    The Additional Protocol provides that there shall be no mechanistic 
or systematic verification of information contained in the U.S. 
declaration (e.g., there is no provision for routine inspections). 
However, the United States would be required to provide the IAEA with 
access (referred to as ``complementary access'') to civil nuclear fuel 
cycle-related locations and activities, under certain circumstances, as 
defined in the Additional Protocol. Such access would be designed to 
ensure the absence of undeclared nuclear material and activities at 
declared sites where nuclear facilities or materials are located or to 
address a question about the completeness or correctness of the U.S. 
declaration or an inconsistency related to the information contained 
therein. In the latter instance, access generally would be requested 
only if a question or inconsistency in the U.S. declaration could not 
be

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resolved through consultation between the United States and the IAEA. 
The APR contain requirements administered by the Department of 
Commerce's Bureau of Industry and Security to implement the Additional 
Protocol. Additional U.S. obligations under the Additional Protocol are 
administered by other U.S. government agencies as designated by the 
President of the United States.
A. Part 781--General Information and Overview of the APR
    The Additional Protocol Regulations (15 CFR chapter VII, subchapter 
D), or APR, would implement certain obligations of the United States 
under the Additional Protocol. Part 781 contains definitions of terms 
used in the APR, describes the purpose and scope of the APR, and 
provides an overview of the activities regulated under the APR.
B. Part 782--General Information Regarding Reporting Requirements and 
Procedures
    The Additional Protocol augments the existing U.S.-IAEA Safeguards 
Agreement by requiring the United States to provide the IAEA with 
information on civil nuclear and nuclear-related items, materials, and 
activities not presently covered by the U.S.-IAEA Safeguards Agreement. 
The items, materials, and activities that must be declared include the 
following: mining and milling activities involving the production or 
processing of materials that could serve as feed material for the civil 
nuclear fuel cycle (i.e., uranium and thorium); nuclear-related 
equipment manufacturing; exports and imports of nuclear-related 
equipment and nuclear-related non-nuclear material; and civil nuclear 
fuel cycle-related research and development (R&D) activities not 
involving nuclear material. To enable the United States to collect the 
information necessary to prepare the U.S. declaration to the IAEA, BIS 
is publishing the APR to establish reporting requirements for U.S. 
industry and other U.S. persons concerning civil nuclear and nuclear-
related items, materials, and activities that must be declared under 
the Additional Protocol.
    Part 782 of the APR contains a brief overview of the reporting and 
compliance review requirements in the APR, identifies who is 
responsible for submitting the reports required under the APR, and 
provides information on how to determine which activities would be 
subject to the APR reporting requirements, including instructions on 
where and how to submit activity determination requests to BIS. Part 
782 also explains how to obtain the forms needed to submit reports 
required by the APR and where to submit the reports.
C. Part 783--Reporting Requirements for Nuclear Fuel Cycle-Related 
Activities Not Involving Nuclear Materials
    Part 783 contains a comprehensive description of the reporting 
requirements under the APR, including which activities must be 
reported, who must submit reports, the types of reports that must be 
submitted (e.g., Initial Report, Annual Update Report, Export Report, 
Import Confirmation Report, Supplemental Information Report--the latter 
would be submitted in response to BIS notification of an IAEA request 
for amplification or clarification of information), the types of 
changes that would require the submission of an Amended Report to BIS, 
when a No Changes Report may be submitted in lieu of an Annual Update 
Report, the APR forms required and the procedures that must be followed 
to prepare and submit these reports, and the deadlines for submitting 
these reports to BIS.
    Section 783.1(a) of the APR would establish initial reporting 
requirements under the APR. You must submit an Initial Report to BIS, 
no later than 30 calendar days following the date of publication of the 
rule that establishes the APR, if you are engaged in any of the civil 
nuclear fuel cycle-related activities described in Section 783.1(a) of 
the APR on the date of publication. In this instance, your Initial 
Report must describe only those activities in which you are engaged as 
of the date of publication, except that the description of activities 
involving uranium hard-rock mines must include any such mines that were 
closed down during the calendar year in which the rule establishing the 
APR was published (up to and including the date of publication) as well 
as mines that were in either operating or suspended status on the date 
of publication. The period of time covered by your Initial Report must 
include the calendar year in which the APR are promulgated (up to and 
including the date of publication).
    For any calendar year that follows the year in which the rule 
establishing the APR is published, you must submit an Initial Report to 
BIS if you commenced civil nuclear fuel cycle-related activities 
described in Section 783.1(a) of the APR at your location, during the 
previous calendar year, and have not previously reported such 
activities to BIS. You may include such activities in your Annual 
Update Report, in lieu of submitting a separate Initial Report, if you 
also have an Annual Update Report requirement for the same location 
that covers the same reporting period (Annual Update Report 
requirements are addressed in the discussion of Section 783.1(b), 
below).
    Section 783.1(a)(1) of the APR contains two separate reporting 
requirements that apply to civil nuclear fuel cycle-related research 
and development activities, as defined in Section 781.1 of the APR, 
that do not involve nuclear material. Section 783.1(a)(1)(i) of the APR 
describes the initial reporting requirement for any such civil 
activities that were funded, specifically authorized or controlled by, 
or carried out on behalf of, the United States. Section 783.1(a)(1)(ii) 
of the APR describes the initial reporting requirement for any such 
activities that were specifically related to civil enrichment, 
reprocessing of nuclear fuel, or the processing of intermediate or 
high-level waste containing plutonium, high enriched uranium or 
uranium-233 and that were not funded, specifically authorized or 
controlled by, or carried out on behalf of the United States. Reports 
on these activities must include a general activity description and 
location information. The provisions of Section 783.1(a)(1)(i) and 
(a)(1)(ii) are intended to address the information requirements 
described in Articles 2.a(i) and 2.b(i), respectively, of the 
Additional Protocol.
    Section 783.1(a)(2) of the APR describes the initial reporting 
requirement for civil nuclear-related manufacturing, assembly, and 
construction activities (e.g., the manufacture of centrifuge rotor 
tubes, diffusion barriers, zirconium tubes, nuclear grade graphite, and 
reactor control rods). The specific activities subject to this APR 
reporting requirement are listed in detail in Supplement No. 2 to Part 
783 of the APR, which corresponds to Annex I of the Additional 
Protocol. For these locations, the APR require a description of the 
scale of operations for each location engaged in any of the activities 
described in Supplement No. 2 to Part 783. This information need not be 
detailed, but should include the organization's name, location, a brief 
description of operations, and the estimated current annual production. 
The provisions of Section 783.1(a)(2) are intended to address the 
information requirements described in Article 2.a(iv) of the Additional 
Protocol.
    Section 783.1(a)(3) of the APR describes the initial reporting 
requirement for U.S. uranium hard-rock mining activities, consistent 
with information requirements described in Article 2.a(v) of the 
Additional Protocol.

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Uranium hard-rock mines are required to report to BIS their location, 
operational status, estimated annual production capacity, and current 
annual production. For Initial Reports submitted during the calendar 
year in which the APR are promulgated, this reporting requirement 
applies to any mines that were closed down during that calendar year 
(up to and including the date of publication of the APR), as well as 
mines in either operating or suspended status on the date that the rule 
establishing the APR is published. Mines that were closed down prior to 
the calendar year in which the APR are promulgated do not have a 
reporting obligation.
    Section 783.1(b) of the APR would establish annual reporting 
requirements under the APR. If you submit an Initial Report to BIS, in 
accordance with Section 783.1(a) of the APR, and your Initial Report 
does not indicate that all civil nuclear fuel cycle-related activities 
described therein have ceased at your location, Section 783.1(b) of the 
APR would require that you submit an Annual Update Report to BIS for 
each calendar year that follows the year covered by your Initial 
Report. This Annual Update Report requirement will continue to apply 
for as long as you engage in activities subject to the APR reporting 
requirements. If your location subsequently ceases to engage in 
activities subject to the APR reporting requirements, you would still 
be required to submit an Annual Update Report covering the calendar 
year in which you ceased to engage in such activities. Section 
783.1(b)(2) of the APR provides that a No Changes Report may be 
submitted, in lieu of an Annual Update Report, when there are no 
changes with respect to your location and civil nuclear fuel cycle-
related activities during the previous calendar year. If your Initial 
Report or most recent Annual Update Report indicates that all civil 
nuclear fuel cycle-related activities described therein have ceased at 
your location, and no other reportable activities have occurred during 
the previous calendar year, then you would not have a reporting 
requirement under Section 783.1(a) or (b) of the APR.
    Initial Reports describing reportable civil nuclear fuel cycle-
related activities identified in Section 783.1(a) of the APR would need 
to be submitted to BIS no later than 30 calendar days following the 
date of publication of the rule establishing the APR, if you are 
engaged in any such civil nuclear fuel cycle-related activities on the 
date of publication. Any such activities that commence after the date 
of publication of the rule establishing the APR must be reported to BIS 
no later than January 31 of the year following the calendar year in 
which the activities took place. If you are subject to an Annual Update 
Report requirement for the same location and covering the same 
reporting period, you may include these additional activities in your 
Annual Update Report, in lieu of submitting a separate Initial Report. 
Annual Update Reports must be submitted to BIS by January 31st of the 
year following any calendar year in which reportable fuel cycle-related 
activities took place. No Changes Reports must be submitted to BIS by 
January 31st of the year following any calendar year in which 
reportable nuclear fuel cycle-related activities took place.
    Section 783.1(c) and (d), respectively, of the APR describe the 
reporting requirements that would apply to exports and imports of 
equipment or non-nuclear material identified in Supplement No. 3 to 
Part 783 of the APR. The equipment and non-nuclear material in 
Supplement No. 3 are derived from the Zangger Committee Trigger List 
(IAEA INFCIRC/254/Rev.8/Part 1, Annex B)--the Trigger List defines 
goods specially designed for nuclear use that, along with nuclear-
related dual-use materials, equipment, software and related technology, 
are subject to export controls administered by member states of the 
Nuclear Suppliers Group (NSG). If you export any of the items listed in 
Supplement No. 3 to Part 783, you must submit an Export Report to BIS 
no later than 15 days following the end of the calendar quarter in 
which the items were exported--therefore, Export Reports must be 
submitted to BIS no later than January 15th, April 15th, July 15th, 
and/or October 15th each year. You will be notified by BIS if an Import 
Confirmation Report is required under the APR. BIS will provide such 
notification only upon receipt of a request from the IAEA for 
information to verify imports. For each import of equipment or non-
nuclear material listed in Supplement No. 3 to Part 783, you must 
submit an Import Confirmation Report to BIS no later than 30 calendar 
days following the date that you receive notification of this 
requirement. The provisions of Section 783.1(c) and (d) are intended to 
address the information requirements described in Article 2.a(ix)(b) of 
the Additional Protocol.
    Section 783.1(e) of the APR describes the requirements that would 
apply to a Supplemental Information Report. If the IAEA specifically 
requests amplification or clarification concerning any information 
provided in the U.S. declaration that is based on your report(s), BIS 
will send you written notification requiring that you report to BIS 
additional information concerning the activities that you previously 
reported and any other activities conducted at your location or 
building that would be relevant for the purpose of addressing the 
IAEA's request for amplification or clarification of information.
    Section 783.2 of the APR describes the circumstances under which an 
Amended Report would need to be submitted to BIS. Section 783.2(a) of 
the APR would require that an Amended Report be submitted to BIS no 
later than 30 calendar days following the date that you discover an 
error or omission in your most recent report that involves information 
concerning an activity subject to the reporting requirements in Section 
783.1(a) or (b) of the APR. Section 783.2(b) of the APR would require 
that an Amended Report be submitted to BIS no later than 30 calendar 
days after any changes to company and location information, such as the 
company's designated contact person (for reporting and complementary 
access purposes), the name or mailing address of the company, the 
owner/operator of the location, or the owner of the company. Section 
783.2(d) of the APR would require that an Amended Report be submitted 
to BIS no later than 30 calendar days following the date that you 
received written notification from BIS to provide information requested 
by the IAEA following complementary access to the location.
D. Part 784--Complementary Access
    Part 784 of the APR describes the purpose of complementary access 
by the IAEA and identifies the types of locations that may be subject 
to complementary access under the APR. Any location that would be 
required to submit an Initial Report, Annual Update Report, or No 
Changes Report to BIS, pursuant to Part 783 of the APR, is a reportable 
location and may be subject to complementary access by the IAEA. The 
fact that a location would be required to submit a report to BIS does 
not automatically trigger complementary access by the IAEA, although it 
may provide the basis for complementary access. Information that has 
been reported to BIS and included in the U.S. declaration will be 
analyzed by the IAEA before the IAEA makes a decision on whether or not 
to request complementary access to a particular location. In addition 
to providing the IAEA with complementary access to reportable 
locations, Part 784 of the APR

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provides that other locations specified by the IAEA may be subject to 
complementary access.
    The specific purpose of complementary access will be location 
dependent. In the case of uranium hard-rock mine locations, the purpose 
of complementary access is limited to enabling the IAEA to verify, on a 
selective basis, the absence of undeclared nuclear material and nuclear 
related activities. For all other locations subject to the APR (e.g., 
locations involved in reportable civil nuclear fuel cycle-related 
research and development or manufacturing activities, other locations 
specified by the IAEA), the purpose of complementary access is limited 
to allowing the IAEA to resolve questions relating to the correctness 
and completeness of the information provided in the U.S. declaration or 
to resolve inconsistencies relating to that information. Complementary 
access normally will not be scheduled for the latter type of location 
until after the IAEA has provided the United States with an opportunity 
to clarify or resolve the question or inconsistency in the U.S. 
declaration.
    Part 784 of the APR defines the role of BIS in notifying locations 
that will be subject to complementary access and acting as host to the 
IAEA Team during complementary access. A BIS Host team (augmented by 
other agency representatives, as appropriate) will accompany the IAEA 
inspectors during their activities at the location. In addition, a BIS 
Advance Team, upon receiving advance notice from the IAEA of 
complementary access, may deploy to the location to assist in preparing 
personnel and implementing appropriate measures to protect confidential 
business and other critical information.
    Part 784 also provides specific information on the scope and 
conduct of complementary access, such as the kinds of activities that 
may be carried out by the IAEA Team (e.g., the circumstances under 
which the IAEA Team will be granted physical access to records and 
visual access to facilities). In addition, Part 784 describes the 
circumstances under which the Host Team will implement managed access 
measures during IAEA complementary access. Managed access will protect 
activities of direct national security significance to the United 
States, as well as locations or information associated with such 
activities. It is also designed to prevent the dissemination of 
proliferation sensitive information, to meet safety or physical 
protection requirements, and to protect proprietary or commercially 
sensitive information.
E. Part 785--Enforcement
    Part 785 contains definitions of enforcement-related terms and 
describes the scope of the enforcement activities that would be 
authorized under the APR, including the types of violations subject to 
the APR, administrative and criminal proceedings, hearings, 
representation, paperwork, summary decisions, discovery, subpoenas, 
matters protected against disclosure, procedural stipulations, 
extensions, post-hearing submissions, decisions, settlements, payment 
of assessments, and how to report a violation.
F. Part 786--Records and Recordkeeping
    Part 786 describes the APR recordkeeping requirements, including 
the types of records that would need to be retained, required retention 
periods, acceptable media for record storage, records inspection 
procedures, accessibility of records, and disposal of records.
G. Part 787--Interpretations
    Part 787 is reserved for future interpretations of parts 781 
through 786 of the APR and also for Subsidiary Arrangements to the 
Additional Protocol.

Rulemaking Requirements

    1. This proposed rule has been determined to be significant for 
purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information, subject to the Paperwork 
Reduction Act (PRA), unless that collection of information displays a 
currently valid OMB Control Number. This rule proposes a collection of 
information subject to the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.). The information collection contained 
in this proposed rule is part of a joint information collection by the 
Bureau of Industry and Security (BIS) of the Department of Commerce 
(DOC), in accordance with the proposed Additional Protocol Regulations 
(APR) (15 CFR parts 781-799), and the Nuclear Regulatory Commission 
(NRC), in accordance with amendments to its regulations in 10 CFR part 
75 and 10 CFR part 110. BIS has submitted this proposed collection to 
the Office of Management and Budget for approval. A total of 
approximately 129 respondents are expected to be subject to the 
information collection requirements set forth in these BIS and NRC 
rules. These information collection requirements are expected to 
involve an estimated 3,357 total burden hours per annum at a total 
estimated cost of $139,142 per annum. The estimated total burden hours 
per annum include the time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Public comment is sought regarding: Whether this proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; the accuracy of the burden estimate; ways to 
enhance the quality, utility, and clarity of the information to be 
collected; and ways to minimize the burden of the collection of 
information, including through the use of automated collection 
techniques or other forms of information technology. Send comments 
regarding this burden estimate or any other aspects of this collection 
of information, including suggestions for reducing the burden, to David 
Rostker, Office of Management and Budget (OMB), by e-mail to David_
Rostker@omb.eop.gov or by fax to (202) 395-7285, and to Willard Fisher, 
Regulatory Policy Division, Bureau of Industry and Security, Department 
of Commerce, as indicated in the ADDRESSES section of this rule.
    The DOC's Office of Strategic Industries and Economic Security 
(SIES) conducted a study in order to obtain an estimate of the number 
of U.S. companies, organizations, and other U.S. persons that would be 
subject to reporting requirements under the BIS and NRC rules. This 
study, along with reviews conducted by the NRC on activities conducted 
by its licensees, indicated that potentially 119 locations and 10 sites 
at International Atomic Energy Agency (IAEA) Selected Facilities from 
the U.S. Eligible Facilities List licensed by the NRC (an estimated 
total of 129 respondents) would have reporting requirements pursuant to 
DOC and NRC regulations under the Additional Protocol.
    The information collection requirements in the BIS and/or NRC rules 
consist of the following activities: (1) Additional Protocol (AP)-
related reporting activities (e.g., activities involving the completion 
and submission of AP-related reports using forms contained in handbooks 
described below), (2) complementary access activities (e.g., activities 
involving IAEA inspection team access to locations and sites subject to 
AP-related reporting requirements), and (3) compliance review 
activities (e.g., activities involving BIS requests for information

[[Page 43573]]

from persons and locations subject to the APR to determine compliance 
with APR reporting and recordkeeping requirements).
    The estimated information collection burden associated with the 
proposed AP-related reporting activities is expected to total 2,161 
burden hours per year, at a total cost to respondents of $96,467 per 
annum, as follows: 2,161 burden hours x $37.20/hour (employee salaries) 
x 1.2 (20% overhead) = $96,467 estimated annual cost.
    The estimated information collection burden associated with the 
proposed complementary access activities is expected to total 1,153 
burden hours per year, at a total cost to respondents of $32,070 per 
annum, as follows: First, 576.33 (burden hours per complementary 
access) x 2 (locations per calendar year) = 1,153 total burden hours 
and, second, $16,035 (estimated cost per complementary access) x 2 
(locations per calendar year) = $32,070 estimated annual cost.
    The estimated information collection burden associated with the 
proposed compliance review activities is expected to total 43 burden 
hours per year, at a total cost to respondents of $1,897 per annum, as 
follows: 42.5 burden hours x $37.20/hour (employee salaries) x 1.2 (20% 
overhead) = $1,897.20 annual estimated cost.
    In addition, this proposed rule contains a recordkeeping 
requirement of 3 years, which would involve a total estimated 
recordkeeping cost of $8,707.50 per annum, as follows: 1.5 square feet 
(average office space occupied by storage cabinet containing AP-related 
records) x $45/square foot (average cost of office space utilized for 
storage) x 129 reports (estimated number of locations required to 
submit AP-related reports) = $8,707.50 annual estimated cost.
    Based on the estimates provided above, the annual burden hours of 
this information collection are expected to total 3,357 burden hours, 
as follows: 2,161 (estimated annual burden hours for AP-related 
reporting activities) + 1,153 (estimated annual burden hours for 
complementary access activities) + 43 (estimated annual burden hours 
for compliance review activities) = 3,357 total estimated annual burden 
hours for all AP-related information collection activities. (Note: The 
AP-related recordkeeping burden estimate is based upon cost of storage 
space rather than burden hours.)
    Based on the estimates provided above, the annual cost of this 
information collection is expected to total $139,142, as follows: 
$96,467 (estimated annual cost for AP-related reporting activities) + 
$32,070 (estimated annual cost for complementary access activities) + 
$1,897.20 (estimated annual cost for compliance review activities) + 
$8,707.50 (estimated annual cost of AP-related recordkeeping 
requirements) = $139,142 total estimated annual cost for all AP-related 
information collection activities.
    The AP requires the United States to declare to the IAEA a number 
of commercial nuclear and nuclear-related items, materials, and 
activities that may be used for peaceful nuclear purposes, but that 
also would be necessary elements for a nuclear weapons program. 
Executive Order (E.O.) 13458 of February 5, 2008, designates the DOC as 
the lead agency responsible for collecting data required under the AP 
from the commercial nuclear industry and other U.S. persons, except for 
data involving activities or locations subject to the licensing 
jurisdiction of the NRC. The E.O. designates the NRC as the lead agency 
responsible for collecting data required under the AP from those 
persons, locations, and sites subject to its licensing jurisdiction. In 
addition, National Security Policy Directive 57 (February 4, 2008) 
designated DOC as the lead agency responsible for managing the 
collection and aggregation of all data reported to the U.S. Government 
for the purpose of preparing the U.S. AP declaration for submission to 
the IAEA.
    BIS has developed two separate handbooks (one for locations and the 
other for sites of IAEA-selected facilities) that will provide guidance 
on how to complete and submit the forms required under the APR. These 
handbooks identify the specific forms that must be included in each 
type of report package that must be submitted to BIS or the NRC. The 
specific forms in each handbook are identified below.

        List of Forms Contained in Report Handbook for Locations
------------------------------------------------------------------------
                                    Description of information collected
               Form                                on form
------------------------------------------------------------------------
AP-1..............................  Certification.
AP-2..............................  Contact Information.
AP-3..............................  Research and Development with U.S.
                                     Government (USG) Involvement.
AP-4..............................  Research and Development without
                                     U.S. Government Involvement.
AP-5..............................  Nuclear-related manufacturing,
                                     assembly and construction
                                     activities.
AP-6..............................  Information on uranium hard rock
                                     mines.
AP-7..............................  Information on concentration plants.
AP-8..............................  Holdings of impure source materials.
AP-9..............................  Imports and exports of impure source
                                     materials.
AP-10.............................  Holdings of safeguards-exempted
                                     materials.
AP-11.............................  Location of safeguards-terminated
                                     materials.
AP-12.............................  Processing of safeguards-terminated
                                     waste materials.
AP-13.............................  Exports of specified equipment and
                                     non-nuclear material.
AP-14.............................  Imports of specified equipment and
                                     non-nuclear material.
AP-15.............................  Supplemental information report.
AP-16.............................  Continuation.
AP-17.............................  No Changes Report.
------------------------------------------------------------------------


          List of Forms Contained in Report Handbook for Sites
------------------------------------------------------------------------
                                             Description of information
                   Form                           collected on form
------------------------------------------------------------------------
AP-A......................................  Certification.
AP-B......................................  Contact Information.
AP-C......................................  Building information.
AP-D......................................  Research and Development
                                             with U.S. Government
                                             Involvement.
AP-E......................................  Research and Development
                                             without U.S. Government
                                             Involvement.
AP-F......................................  Nuclear-related
                                             manufacturing, assembly and
                                             construction activities.
AP-G......................................  Information on concentration
                                             plants.
AP-H......................................  Holdings of impure source
                                             materials.
AP-I......................................  Imports and exports of
                                             impure source materials.
AP-J......................................  Holdings of safeguards-
                                             exempted materials.
AP-K......................................  Location of safeguards-
                                             terminated materials.
AP-L......................................  Processing of safeguards-
                                             terminated waste materials.
AP-M......................................  Exports of specified
                                             equipment and non-nuclear
                                             material.
AP-N......................................  Imports of specified
                                             equipment and non-nuclear
                                             material.
AP-O......................................  Supplemental information
                                             report.
AP-P......................................  Continuation.
AP-Q......................................  No Changes Report.
------------------------------------------------------------------------

    3. This rule does not contain policies with Federalism implications 
as that

[[Page 43574]]

term is defined in Executive Order 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute, unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Under section 605(b) of the RFA, however, if 
the head of an agency certifies that a rule will not have a significant 
economic impact on a substantial number of small entities, the statute 
does not require the agency to prepare a regulatory flexibility 
analysis. Pursuant to section 605(b), the Chief Counsel for 
Regulations, Department of Commerce, certified to the Chief Counsel for 
Advocacy, Small Business Administration, that this proposed rule, if 
promulgated, will not have a significant economic impact on a 
substantial number of small entities for the reasons explained below. 
Consequently, BIS has not prepared a regulatory flexibility analysis.
    Small entities include small businesses, small organizations and 
small governmental jurisdictions. For purposes of assessing the impacts 
of this proposed rule on small entities, small entity is defined as: 
(1) A small business according to RFA default definitions for small 
business (based on SBA size standards), (2) a small governmental 
jurisdiction that is a government of a city, county, town, school 
district or special district with a population of less than 50,000, and 
(3) a small organization that is any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field. BIS 
has determined that this final rule would affect only the first and 
third categories of small entities (i.e., small businesses and small 
organizations).
    The DOC's Office of Strategic Industries and Economic Security 
(SIES) conducted a study to obtain an estimate of the number of U.S. 
businesses, organizations, and other U.S. persons that would be subject 
to the information collection and recordkeeping requirements that BIS 
and the NRC would have to establish in order to meet U.S. obligations 
under the AP. This study, along with reviews conducted by the NRC on 
activities conducted by its licensees, indicated that potentially 119 
locations and 10 sites at IAEA-Selected Facilities from the U.S. 
Eligible Facilities List licensed by the NRC (an estimated total of 129 
respondents) would have reporting requirements pursuant to DOC and NRC 
regulations under the AP. The study indicated that the majority of the 
businesses or organizations most likely to be impacted by the entry-
into-force of the AP would fall into the following categories: (1) 
Colleges and universities, (2) nuclear fuel manufacturers and utility 
companies, (3) mining and milling companies, and (4) corporate entities 
and contractors involved in research and development, manufacturing, 
assembly and construction activities. Although BIS estimates that the 
majority of these businesses and organizations are substantially sized 
entities, having more than 500 employees, BIS does not have sufficient 
information on these businesses and organizations to definitively 
characterize them as large entities.
    The Small Business Administration (SBA) has established standards 
for what constitutes a small business, with respect to each of the 
Standard Industrial Classification (SIC) code categories. For example, 
a business in the uranium mining industry (NAICS Code: 212291, SIC 
Code: 1094) is considered by SBA to be a small business if it is 
independently owned and operated and not dominant in its field of 
operation and it employs 500 or fewer persons on a full-time basis, 
part-time, temporary, or other basis. The Mine Safety and Health 
Administration (MSHA) estimates that approximately 99.8% of the metal/
non-metal mining industry would qualify as small businesses. However, 
many of the uranium mining and milling entities in the United States 
appear to be subsidiaries of large companies and BIS estimates that 
most of the small entities likely to be impacted by the entry-into-
force of the AP will fall within the other categories of businesses and 
organizations identified in the SIES survey. In addition, BIS is not 
able to determine which SIC code categories apply to the other 
categories of businesses or organizations that are likely to be 
impacted by the entry-into-force of the AP. Therefore, for the purpose 
of assessing the impact of this proposed rule, BIS assumes that all of 
the 129 businesses and organizations likely to be affected are small 
entities.
    Although this proposed rule, if promulgated, would affect a 
substantial number of small entities (i.e., 129 businesses and 
organizations), the reporting, on-site verification (i.e., 
complementary access), compliance review, and recordkeeping 
requirements that would be imposed by this rule would not have a 
significant economic impact on these entities.
    First, this rule proposes to establish reporting requirements in 
Part 783 of the APR that would require U.S. industry and U.S. persons 
to submit data needed to prepare U.S. declarations to the IAEA in 
accordance with U.S. obligations under the AP. The U.S. declarations 
submitted under the AP would provide the IAEA with information about 
additional aspects of the U.S. civil nuclear fuel cycle, including the 
following: mining and concentration of nuclear ores; nuclear-related 
equipment manufacturing, assembly, or construction; imports, exports, 
and other activities involving certain source material (i.e., source 
material that has not reached the composition and purity suitable for 
fuel fabrication or for being isotopically enriched); imports and 
exports of specified nuclear equipment and non-nuclear material; 
nuclear fuel cycle-related research and development activities not 
involving nuclear material; and other activities involving nuclear 
material not currently subject to the U.S.-IAEA Safeguards Agreement. 
The total estimated annual burden hours for these proposed reporting 
requirements would be 2,161 hours and the total estimated annual cost 
would be $96,467, or $747.81 per respondent.
    Second, this rule proposes to establish on-site verification (i.e., 
complementary access) requirements in Part 784 of the APR. Any location 
that would be required to submit an Initial Report, Annual Update 
Report, or No Changes Report to BIS, pursuant to Part 783 of the APR, 
would be treated as a reportable location under the APR and, as such, 
might be subject to complementary access by the IAEA. The fact that a 
location would be required to submit a report to BIS would not 
automatically trigger complementary access by the IAEA, although it 
might provide the basis for complementary access. Information reported 
to BIS and included in the U.S. declaration would be analyzed by the 
IAEA before the IAEA would decide whether or not to request 
complementary access to a particular location. In addition to providing 
the IAEA with complementary access to reportable locations, Part 784 of 
the APR would provide that other locations specified by the IAEA might 
be subject to complementary access. The specific purpose of 
complementary access would be location dependent. Complementary access 
to uranium hard-rock mine locations would be limited to enabling the 
IAEA to verify, on a selective basis, the absence of

[[Page 43575]]

undeclared nuclear material and nuclear related activities. For all 
other locations subject to the APR, the purpose of complementary access 
would be limited to allowing the IAEA to resolve questions relating to 
the correctness and completeness of the information provided in the 
U.S. declaration or to resolve inconsistencies relating to that 
information. The total estimated annual burden hours for these proposed 
complementary access requirements would be 1,153 hours and the total 
estimated annual cost would be $32,070, or $248 per respondent.
    Third, this rule proposes to establish compliance review 
requirements in Section 782.3 of the APR that would authorize BIS to 
request information, periodically, from persons and locations subject 
to the APR to determine compliance with the APR reporting and 
recordkeeping requirements. Information requested may relate to nuclear 
fuel cycle research and development activities not involving nuclear 
material, nuclear-related manufacturing, assembly or construction 
activities, or uranium hard-rock mining activities as described in Part 
783 of the APR. Any person or location subject to the APR and receiving 
such a request for information would be required to submit a response 
to BIS within 30 calendar days of receipt of the request. The total 
estimated annual burden hours for these proposed compliance review 
requirements would be 43 hours and the total estimated annual cost 
would be $1,897.20, or $14.70 per respondent.
    Fourth, this rule proposes to establish recordkeeping provisions in 
Part 786 of the APR in accordance with which each person or location 
required to submit a report or correspondence under Parts 782 through 
784 of the APR would have to retain all supporting materials and 
documentation used to prepare the report or correspondence. All such 
supporting materials and documentation would have to be retained by the 
person or location for three years from the due date of the applicable 
report or for three years from the date of submission of the applicable 
report, whichever would be later. Upon request by BIS, the person or 
location also would be required to permit access to and copying of any 
records related to compliance with the requirements of the APR. The 
total estimated annual cost for these proposed APR recordkeeping 
requirements would be $8,707.50. (Note: Since the AP-related 
recordkeeping burden estimate is based upon the cost of storage space 
rather than the number of burden hours, this estimate does not include 
the total annual burden hours associated with the APR recordkeeping 
requirements.)
    The total estimated annual burden hours required to implement the 
reporting, complementary access, compliance review, and recordkeeping 
requirements described above would be 3,357 burden hours and the total 
estimated annual cost would be $139,142. Although the primary impact of 
these new requirements would affect a substantial number of small 
entities (i.e., 129 businesses and organizations), the total economic 
impact on the affected entities (i.e., $139,142, per annum, for all of 
the affected entities) would not be significant. The average impact per 
entity would be $1,079 (i.e., $139,142 / 129) per annum, which 
represents a small percentage of the net annual revenue of a typical 
small business. Since the requirements that this rule proposes to 
establish would not impose a significant economic impact on a 
substantial number of small entities, BIS did not prepare a regulatory 
flexibility analysis for this rule.
    Finally, the changes proposed by this rule should be viewed in 
light of the fact that BIS's discretion in formulating the reporting, 
complementary access, compliance review, and recordkeeping requirements 
of the APR is limited by the necessity of meeting U.S. obligations 
under the AP. The AP specifies the information that the United States 
must declare to the IAEA. In drafting the requirements and the forms 
for U.S. locations and U.S. persons to use, BIS has attempted to 
minimize the recordkeeping and reporting burden to ensure that only 
information that the United States must declare to the IAEA would have 
to be submitted to BIS.

List of Subjects

15 CFR Part 781

    Nuclear fuel cycle-related activities, Imports, Treaties.

15 CFR Part 782

    Nuclear fuel cycle-related activities, Reporting and recordkeeping 
requirements.

15 CFR Part 783

    Nuclear fuel cycle-related activities, Exports, Imports, Reporting 
and recordkeeping requirements.

15 CFR Part 784

    Nuclear fuel cycle-related activities, Imports, Reporting and 
recordkeeping requirements.

15 CFR Part 785

    Enforcement.

15 CFR Part 786

    Reporting and recordkeeping requirements.

    Accordingly, in 15 CFR Chapter VII, new Subchapter D, titled 
``Additional Protocol Regulations'' and consisting of Parts 781 through 
799, is proposed to be added to read as follows:

Subchapter D--Additional Protocol Regulations

PART 781--GENERAL INFORMATION AND OVERVIEW OF THE ADDITIONAL 
PROTOCOL REGULATIONS (APR)

Sec.
781.1 Definitions of terms used in the Additional Protocol 
Regulations (APR).
781.2 Purposes of the Additional Protocol and APR.
781.3 Scope of the APR.
781.4 U.S. Government requests for information needed to satisfy the 
requirements of the APR or the Act.
781.5 Authority.

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  781.1  Definitions of terms used in the Additional Protocol 
Regulations (APR).

    The following are definitions of terms used in parts 781 through 
799 of this subchapter (collectively known as the APR), unless 
otherwise noted:
    Access Point of Contact (A-POC). The individual at a location who 
will be notified by BIS immediately upon receipt of an IAEA request for 
complementary access to a location. BIS must be able to contact either 
the A-POC or alternate A-POC on a 24-hour basis. All interactions with 
the location for permitting and planning an IAEA complementary access 
will be conducted through the A-POC or the alternate A-POC, if the A-
POC is unavailable.
    Act (The). The United States Additional Protocol Implementation Act 
of 2006 (Pub. L. 109-401).
    Additional Protocol. The Protocol Additional to the Agreement 
between the United States of America and the International Atomic 
Energy Agency for the Application of Safeguards in the United States of 
America, with Annexes, signed at Vienna on June 12, 1998 (T. Doc. 107-
097), known as the Additional Protocol.
    Additional Protocol Regulations (APR). Those regulations contained 
in 15 CFR parts 781 to 799 that were promulgated by the Department of 
Commerce to implement and enforce the Additional Protocol.
    Agreement State. Any State of the United States with which the U.S. 
Nuclear Regulatory Commission (NRC)

[[Page 43576]]

has entered into an effective agreement under Subsection 274b of the 
Atomic Energy Act of 1954, as amended (42 U.S.C. 2011 et seq.).
    Beneficiation. The concentration of nuclear ores through physical 
or any other non-chemical methods.
    Bureau of Industry and Security (BIS). The Bureau of Industry and 
Security of the United States Department of Commerce, including Export 
Administration and Export Enforcement.
    Complementary Access. The exercise of the IAEA's access rights as 
set forth in Articles 4 to 6 of the Additional Protocol (see part 784 
of the APR for requirements concerning the scope and conduct of 
complementary access).
    Complementary Access Notification. A written announcement issued by 
BIS to a person who is subject to the APR (e.g., the owner, operator, 
occupant, or agent in charge of a location that is subject to the APR 
as specified in Sec.  781.3(a) of the APR) that informs this person 
about an impending complementary access in accordance with the 
requirements of Part 784 of the APR.
    Host Team. The U.S. Government team that accompanies the 
International Atomic Energy Agency (IAEA) inspectors during 
complementary access, as provided for in the Additional Protocol and 
conducted in accordance with the provisions of the APR.
    Host Team Leader. The representative from the Department of 
Commerce who leads the Host Team during complementary access.
    International Atomic Energy Agency (IAEA). The United Nations 
organization, headquartered in Vienna, Austria, that serves as the 
official international verification authority for the implementation of 
safeguards agreements concluded pursuant to the Treaty on the Non-
Proliferation of Nuclear Weapons (NPT).
    ITAR. The International Traffic in Arms Regulations (22 CFR parts 
120-130), which are administered by the Directorate of Defense Trade 
Controls, U.S. Department of State.
    Location. Any geographical point or area declared or identified by 
the United States or specified by the IAEA (see ``location specified by 
the IAEA,'' as defined in this section).
    Location-specific environmental sampling. The collection of 
environmental samples (e.g., air, water, vegetation, soil, smears) at, 
and in the immediate vicinity of, a location specified by the IAEA for 
the purpose of assisting the IAEA to draw conclusions about the absence 
of undeclared nuclear material or nuclear activities at the specified 
location.
    Location-specific subsidiary arrangement. An agreement that sets 
forth procedures, which have been mutually agreed upon by the United 
States and the IAEA, for conducting complementary access at a specific 
reportable location. (Also see definition of ``subsidiary arrangement'' 
in this section.)
    Location specified by the IAEA. A location that is selected by the 
IAEA to:
    (1) Verify the absence of undeclared nuclear material or nuclear 
activities; or
    (2) Obtain information that the IAEA needs to amplify or clarify 
information contained in the U.S. declaration.
    Managed access. Procedures implemented by the Host Team during 
complementary access to prevent the dissemination of proliferation 
sensitive information, to meet safety or physical protection 
requirements, to protect proprietary or commercially sensitive 
information, or to protect activities of direct national security 
significance to the United States, including information associated 
with such activities, in accordance with the Additional Protocol.
    National Security Exclusion (NSE). The right of the United States, 
as specified under Article 1.b of the Additional Protocol, to exclude 
the application of the Additional Protocol when the United States 
Government determines that its application would result in access by 
the IAEA to activities of direct national security significance to the 
United States or to locations or information associated with such 
activities.
    NRC. The U.S. Nuclear Regulatory Commission.
    Nuclear fuel cycle-related research and development. Those 
activities that are specifically related to any process or system 
development aspect of any of the following:
    (1) Conversion of nuclear material;
    (2) Enrichment of nuclear material;
    (3) Nuclear fuel fabrication;
    (4) Reactors;
    (5) Critical facilities;
    (6) Reprocessing of nuclear fuel; or
    (7) Processing (not including repackaging or conditioning not 
involving the separation of elements, for storage or disposal) of 
intermediate or high-level waste containing plutonium, high enriched 
uranium or uranium-233.
    Nuclear Material. Any source material or special fissionable 
material, as follows.
    (1) Source material means uranium containing the mixture of 
isotopes occurring in nature; uranium depleted in the isotope 235; 
thorium; any of the foregoing in the form of metal, alloy, chemical, or 
concentrate. The term source material shall not be interpreted as 
applying to ore or ore residue.
    (2) Special fissionable material means plutonium 239; uranium 233; 
uranium enriched in the isotopes 235 or 233; any material containing 
one or more of the foregoing, but the term special fissionable material 
does not include source material.
    Person. Any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, any State or 
any political subdivision thereof, or any political entity within a 
State, any foreign government or nation or any agency, instrumentality 
or political subdivision of any such government or nation, or other 
entity located in the United States.
    Report Point of Contact (R-POC). A person whom BIS may contact for 
the purposes of clarification of information provided in report(s) and 
for general information. The R-POC need not be the person who prepares 
the forms or certifies the report(s) for submission to BIS, but should 
be familiar with the content of the reports.
    Reportable Location. A location that must submit an Initial Report, 
Annual Update Report, or No Changes Report to BIS, in accordance with 
the provisions of the APR, is considered to be a ``reportable 
location'' with reportable activities (see Sec.  783.1(a) and (b) of 
the APR for nuclear fuel cycle-related activities subject to these 
reporting requirements).
    Reporting Code. A unique identification used for identifying a 
location where one or more nuclear fuel cycle-related activities 
subject to the reporting requirements of the APR are located.
    Subsidiary Arrangement (or General Subsidiary Arrangement). An 
agreement that sets forth procedures, which have been mutually agreed 
upon by the United States and the IAEA, for implementing the Additional 
Protocol, irrespective of the location. (Also see the definition of 
``location-specific subsidiary arrangement'' in this section.)
    United States. Means the several States of the United States, the 
District of Columbia, and the commonwealths, territories, and 
possessions of the United States, and includes all places under the 
jurisdiction or control of the United States, including any of the 
places within the provisions of paragraph (41) of section 40102 of 
Title 49 of the United States Code, any civil aircraft of the United 
States or public aircraft, as such terms are defined in paragraphs (1) 
and (37), respectively, of

[[Page 43577]]

section 40102 of Title 49 of the United States Code, and any vessel of 
the United States, as such term is defined in section 3(b) of the 
Maritime Drug Enforcement Act, as amended (section 1903(b) of Title 46 
App. of the United States Code).
    Uranium Hard-Rock Mine. Means any of the following:
    (1) An area of land from which uranium is extracted in non-liquid 
form;
    (2) Private ways and roads appurtenant to such an area; and
    (3) Lands, excavations, underground passageways, shafts, slopes, 
tunnels and workings, structures, facilities, equipment, machines, 
tools, or other property including impoundments, retention dams, and 
tailings ponds, on the surface or underground, used in, or to be used 
in, or resulting from, the work of extracting such uranium ore from its 
natural deposits in non-liquid form, or if in liquid form, with workers 
underground, or used in, or to be used in, the concentration of such 
uranium ore, or the work of the uranium ore.
    Uranium Hard-Rock Mine (Closed-down). A uranium hard-rock mine 
where ore production has ceased and the mine or its infrastructure is 
not capable of further operation.
    Uranium Hard-Rock Mine (Operating). A uranium hard-rock mine where 
ore is produced on a routine basis.
    Uranium Hard-Rock Mine (Suspended). A uranium hard-rock mine where 
ore production has ceased, but the mine and its infrastructure are 
capable of further operation.
    U.S. declaration. The information submitted by the United States to 
the IAEA in fulfillment of U.S. obligations under the Additional 
Protocol.
    United States Government locations. Those locations owned and 
operated by a U.S. Government agency (including those operated by 
contractors to the agency), and those locations leased to and operated 
by a U.S. Government agency (including those operated by contractors to 
the agency). United States Government locations do not include 
locations owned by a U.S. Government agency and leased to a private 
organization or other entity such that the private organization or 
entity may independently decide the purposes for which the locations 
will be used.
    Wide-area environmental sampling. The collection of environmental 
samples (e.g., air, water, vegetation, soil, smears) at a set of 
locations specified by the IAEA for the purpose of assisting the IAEA 
to draw conclusions about the absence of undeclared nuclear material or 
nuclear activities over a wide area.
    You. The term ``you'' or ``your'' means any person. With regard to 
the reporting requirements of the APR, ``you'' refers to persons that 
have an obligation to report certain activities under the provisions of 
the APR. (Also see the definition of ``person'' in this section.)


Sec.  781.2  Purposes of the Additional Protocol and APR.

    (a) General. The Additional Protocol is a supplement to the 
existing U.S.-IAEA Safeguards Agreement, which entered into force in 
1980. It provides the IAEA with access to additional information about 
civil nuclear and nuclear-related items, materials, and activities and 
with physical access to reportable locations where nuclear facilities, 
materials, or ores are located (to ensure the absence of undeclared 
nuclear material and activities) and to other reportable locations and 
locations specified by the IAEA (to resolve questions or 
inconsistencies related to the U.S. Declaration). The Additional 
Protocol is based upon and is virtually identical to the IAEA Model 
Additional Protocol (see IAEA Information Circular, INFCIRC/540, at 
www.iaea.org/Publications/Documents/Infcircs/index.html), except that 
it excludes IAEA access to activities with direct national security 
significance to the United States, or to locations or information 
associated with such activities, and provides for managed access in 
connection with those same activities and to locations or information 
associated with those activities.
    (b) Purposes of the Additional Protocol. The Additional Protocol is 
designed to enhance the effectiveness of the U.S.-IAEA Safeguards 
Agreement by providing the IAEA with information about aspects of the 
U.S. civil nuclear fuel cycle, including: mining and concentration of 
nuclear ores; nuclear-related equipment manufacturing, assembly, or 
construction; imports, exports, and other activities involving certain 
source material (i.e., source material that has not reached the 
composition and purity suitable for fuel fabrication or for being 
isotopically enriched); imports and exports of specified nuclear 
equipment and non-nuclear material; nuclear fuel cycle-related research 
and development activities not involving nuclear material; and other 
activities involving nuclear material not currently subject to the 
U.S.-IAEA Safeguards Agreement (e.g., nuclear material that has been 
exempted from safeguards pursuant to paragraph 37 of INFCIRC/153 
(Corrected) June 1972).
    (c) Purposes of the Additional Protocol Regulations. To fulfill 
certain obligations of the United States under the Additional Protocol, 
BIS has established the APR, which require the reporting of information 
to BIS (as described in Parts 783 and 784 of the APR) from all persons 
and locations in the United States (as described in Sec.  781.3(a) of 
the APR) with reportable activities. This information, together with 
information reported to other U.S. Government agencies and less any 
information to which the U. S. Government applies the national security 
exclusion, is aggregated into a U.S. declaration, which is submitted 
annually to the IAEA. The APR also provide for complementary access at 
such locations in accordance with the provisions in Part 784 of the 
APR.


Sec.  781.3  Scope of the APR.

    The Additional Protocol Regulations or APR implement certain 
obligations of the United States under the Protocol Additional to the 
Agreement Between the United States of America and the International 
Atomic Energy Agency Concerning the Application of Safeguards in the 
United States of America, known as the Additional Protocol.
    (a) Persons and locations subject to the APR. The APR, promulgated 
by the Department of Commerce, shall apply to all persons and locations 
in the United States, except:
    (1) Locations that are subject to the regulatory authority of the 
Nuclear Regulatory Commission (NRC), pursuant to the NRC's regulatory 
jurisdiction under the Atomic Energy Act of 1954, as amended (42 U.S.C. 
2011 et seq.); and
    (2) The following United States Government locations (see 
definition in Sec.  781.1 of the APR):
    (i) Department of Energy locations;
    (ii) Department of Defense locations;
    (iii) Central Intelligence Agency locations; and
    (iv) Department of State locations.
    (b) Activities subject to the APR. The activities that are subject 
to the recordkeeping and reporting requirements described in the APR 
are found in Parts 783 and 784 of this subchapter (APR).


Sec.  781.4  U.S. Government requests for information needed to satisfy 
the requirements of the APR or the Act.

    From time to time, one or more U.S. Government agencies (i.e., the 
Department of Defense, the Department of Energy, the NRC, or BIS) may 
contact a location to request information that the U.S. Government has 
determined to be necessary to satisfy certain

[[Page 43578]]

requirements of the APR or the Act (e.g., clarification requests or 
vulnerability assessments). If the manner of providing such information 
is not specified in the APR, the agency in question will provide the 
location with appropriate instructions.


Sec.  781.5  Authority.

    The APR implement certain provisions of the Additional Protocol 
under the authority of the Additional Protocol Implementation Act of 
2006 (Pub. L. 109-401, 120 Stat. 2726 (December 18, 2006)). In 
Executive Order 13458 of February 4, 2008, the President delegated 
authority to the Department of Commerce to promulgate regulations to 
implement the Act, and consistent with the Act, to carry out 
appropriate functions not otherwise assigned in the Act, but necessary 
to implement certain declaration and complementary access requirements 
of the Additional Protocol and the Act.

PART 782--GENERAL INFORMATION REGARDING REPORTING REQUIREMENTS AND 
PROCEDURES

Sec.
782.1 Overview of reporting requirements under the APR.
782.2 Persons responsible for submitting reports required under the 
APR.
782.3 Compliance review.
782.4 Assistance in determining your obligations.
782.5 Where to obtain APR report forms.
782.6 Where to submit reports.

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  782.1  Overview of reporting requirements under the APR.

    Part 783 of the APR describes the reporting requirements for 
certain activities specified in the APR. For each activity specified in 
Part 783, BIS may require that an Initial Report, an Annual Update 
Report, a No Changes Report, an Export Report, an Import Confirmation 
Report, a Supplemental Information Report, or an Amended Report be 
submitted to BIS. In addition, persons subject to the APR may be 
required to provide BIS with information needed to assist the IAEA in 
clarifying or verifying information specified in the U.S. declaration 
or in clarifying or amplifying information concerning the nature of the 
activities conducted at a location (see Sec. Sec.  783.1(d) and 
784.1(b)(2) of the APR for requirements concerning a Supplementary 
Information Report). If, after reviewing Part 783 of the APR, you 
determine that you are subject to one or more APR reporting 
requirements, you may obtain the appropriate forms by contacting BIS 
(see Sec.  782.5 of the APR). In addition, forms may be downloaded from 
the Internet at www.ap.gov.


Sec.  782.2  Persons responsible for submitting reports required under 
the APR.

    The owner, operator, or senior management official of a location 
subject to the reporting requirements in Part 783 of the APR is 
responsible for the submission of all required reports and documents in 
accordance with all applicable provisions of the APR.


Sec.  782.3  Compliance review.

    Periodically, BIS will request information from persons and 
locations subject to the APR to determine compliance with the reporting 
and recordkeeping requirements set forth herein. Information requested 
may relate to nuclear fuel cycle research and development activities 
not involving nuclear material, nuclear-related manufacturing, assembly 
or construction activities, or uranium hard-rock mining activities as 
described in Part 783 of the APR. Any person or location subject to the 
APR and receiving such a request for information must submit a response 
to BIS within 30 calendar days of receipt of the request. If the 
requested information cannot be provided to BIS, the response must 
fully explain the reason why such information cannot be provided. If 
additional time is needed to collect the requested information, the 
person or location should request an extension of the submission 
deadline, before the expiration of the 30-day time period set by BIS, 
and include an explanation for why an extension is needed. BIS will 
grant only one extension of the submission deadline. The maximum period 
of time for which BIS will grant an extension will be 30 days. Failure 
to respond to this request could lead to an investigation of the 
person's or location's reporting and recordkeeping procedures under the 
APR.


Sec.  782.4  Assistance in determining your obligations.

    (a) Determining if your activity is subject to reporting 
requirements.
    (1) If you need assistance in determining whether or not your 
activity is subject to the APR's reporting requirements, submit your 
written request for an activity determination to BIS. Such requests may 
be sent via facsimile to (202) 482-1731, e-mailed to apdr@ap.gov, or 
hand delivered or submitted by courier to the Treaty Compliance 
Division, Bureau of Industry and Security, U.S. Department of Commerce, 
Attn: AP Activity Determination, 14th Street and Pennsylvania Avenue, 
NW., Room 4515, Washington, DC 20230. Your activity determination 
request should include the information indicated in paragraph (a)(2) of 
this section to ensure an accurate determination. Also include any 
additional information that would be relevant to the activity described 
in your request. If you are unable to provide all of the information 
required in paragraph (a)(2) of this section, you should include an 
explanation identifying the reasons or deficiencies that preclude you 
from supplying the information. If BIS cannot make a determination 
based upon the information submitted, BIS will return the request to 
you and identify the additional information that is necessary to 
complete an activity determination. BIS will provide a written response 
to your activity determination request within 10 business days of 
receipt of the request.
    (2) You must include the following information when submitting an 
activity determination request to BIS:
    (i) Date of your request;
    (ii) Name of your organization and complete street address;
    (iii) Point of contact for your organization;
    (iv) Phone and facsimile number for your point of contact;
    (v) E-mail address for your point of contact, if you want BIS to 
provide an acknowledgment of receipt via e-mail; and
    (vi) Description of your activity in sufficient detail as to allow 
BIS to make an accurate determination.
    (b) Other inquiries. If you need assistance in interpreting the 
provisions of the APR or need assistance with APR report forms or 
complementary access issues, contact BIS's Treaty Compliance Division 
by phone at (202) 482-1001. If you require a written response from BIS, 
submit a detailed request to BIS that explains your question, issue, or 
request. Send the request to the address or facsimile included in 
paragraph (a) of this section, or e-mail the request to apqa@ap.gov. To 
ensure that your request is properly routed, include the notation, 
``Attention: APR Advisory Request,'' on your submission to BIS.


Sec.  782.5  Where to obtain APR report forms.

    Report forms required by the APR may be downloaded from the 
Internet at www.ap.gov. You also may obtain these forms by contacting: 
Treaty Compliance Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Attn: Forms Request, 14th Street and 
Pennsylvania Avenue, NW., Room 4515, Washington, DC 20230, Telephone: 
(202) 482-1001.

[[Page 43579]]

Sec.  782.6  Where to submit reports.

    Reports required by the APR must be sent via facsimile to (202) 
482-1731, e-mailed to aprp@ap.gov, or hand delivered or submitted by 
courier to BIS, in hard copy, to the following address: Treaty 
Compliance Division, Bureau of Industry and Security, U.S. Department 
of Commerce, Attn: AP Reports, 14th Street and Pennsylvania Avenue, 
NW., Room 4515, Washington, DC 20230, Telephone: (202) 482-1001. 
Specific types of reports and due dates are outlined in Supplement No. 
1 to Part 783 of the APR.

PART 783--CIVIL NUCLEAR FUEL CYCLE-RELATED ACTIVITIES NOT INVOLVING 
NUCLEAR MATERIALS

Sec.
783.1 Reporting requirements.
783.2 Amended reports.
783.3 Reports containing information determined by BIS not to be 
required by the APR.
783.4 Deadlines for submission of reports and amendments.

Supplement No. 1 to Part 783--Deadlines for Submission of Reports and 
Amendments

Supplement No. 2 to Part 783--Manufacturing Activities

Supplement No. 3 to Part 783--List of Specified Equipment and Non-
Nuclear Material for the Reporting of Exports and Imports

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  783.1  Reporting requirements.

    (a) Initial report. You must submit an Initial Report to BIS, no 
later than [30 calendar days following the date of publication of the 
final rule that establishes the APR] (see Supplement No. 1 to this 
Part), if you are engaged in any of the civil nuclear fuel cycle-
related activities described in this paragraph (a) on [the date of 
publication of the final rule that establishes the APR]. The Initial 
Report must include any activities involving uranium hard-rock mines 
that were closed down during the calendar year in which the APR were 
promulgated (up to and including the date of publication). For any year 
that follows the year in which the APR were promulgated, you must 
submit an Initial Report to BIS if you commenced any of the civil 
nuclear fuel cycle-related activities described in this paragraph (a) 
during the previous calendar year and have not reported such activities 
to BIS. Reportable nuclear fuel-cycle activities that commence after 
the date of publication of the rule establishing the APR must be 
reported to BIS no later than January 31 of the year following the 
calendar year in which the activities took place (see Supplement No. 1 
to this Part). You may report these activities as part of your Annual 
Update Report, in lieu of submitting a separate Initial Report, if you 
also have an Annual Update Report requirement that applies to the same 
location and covers the same reporting period (see paragraph (b) of 
this section). In order to satisfy the Initial Report requirements 
under this paragraph (a), you must complete and submit to BIS Form AP-
1, Form AP-2, and other appropriate forms, as provided in this 
paragraph (a).
    (1) Research and development activities not involving nuclear 
material. You must report to BIS any of the civil nuclear fuel cycle-
related research and development activities identified in paragraphs 
(a)(1)(i) and (a)(1)(ii) of this section. Activities subject to these 
APR reporting requirements include research and development activities 
related to safe equipment operations for a nuclear fuel cycle-related 
activity, but do not include activities related to theoretical or basic 
scientific research or to research and development on industrial 
radioisotope applications, medical, hydrological and agricultural 
applications, health and environmental effects and improved 
maintenance.
    (i) You must complete Form AP-3 and submit it to BIS, as provided 
in Sec.  782.6 of the APR, if you conducted any civil nuclear fuel 
cycle-related research and development activities defined in Sec.  
781.1 of the APR that:
    (A) Did not involve nuclear material; and
    (B) Were funded, specifically authorized or controlled by, or 
conducted on behalf of, the United States.
    (ii) You must complete Form AP-4 and submit it to BIS, as provided 
in Sec.  782.6 of the APR, if you conducted any civil nuclear fuel 
cycle-related research and development activities defined in Sec.  
781.1 of the APR that:
    (A) Did not involve nuclear material;
    (B) Were specifically related to enrichment, reprocessing of 
nuclear fuel, or the processing of intermediate or high-level waste 
containing plutonium, high enriched uranium or uranium-233 (where 
``processing'' involves the separation of elements); and
    (C) Were not funded, specifically authorized or controlled by, or 
conducted on behalf of, the United States.
    (2) Civil nuclear-related manufacturing, assembly or construction 
activities. You must complete Form AP-5 and submit it to BIS, as 
provided in Sec.  782.6 of the APR, if you engaged in any of the 
activities specified in Supplement No. 2 to this part.
    (3) Uranium hard-rock mining and ore beneficiation activities. You 
must complete Form AP-6 and submit it to BIS, as provided in Sec.  
782.6 of the APR, if your location is either a uranium hard-rock mine 
or an ore beneficiation plant that was in operating or suspended status 
(see Sec.  781.1 of the APR for the definitions of ``uranium hard-rock 
mine'' and uranium hard-rock mines in ``operating,'' ``suspended,'' or 
``closed-down'' status).
    (i) The Initial Report requirement for the calendar year in which 
the APR are promulgated applies to:
    (A) Uranium hard-rock mines or ore beneficiation plants that are in 
operating or suspended status on the date that the rule establishing 
the APR is published; and
    (B) Uranium hard-rock mines that have changed from operating or 
suspended status to closed-down status during the calendar year in 
which the rule establishing the APR is published (up to and including 
the date of publication of the rule). Mines that were closed down prior 
to the calendar year in which the APR are promulgated and that remain 
in closed-down status do not have a reporting requirement.
    (ii) For any calendar year that follows the year in which the APR 
are promulgated, you are required to submit an Initial Report to BIS 
only if you commenced operations at a uranium hard-rock mine or an ore 
beneficiation plant during the previous calendar year (e.g., the 
commencement of operations would include, but not be limited to, the 
resumption of operations at a mine that was previously in ``closed-
down'' status). Otherwise, see the Annual Update Report and No Changes 
Report requirements in paragraphs (b)(1) or (b)(2) of this section. For 
example, you must submit an Annual Update Report to indicate the 
closed-down status of any uranium hard-rock mine that was indicated in 
your most recent report to be in either operating or suspended status, 
but at which you ceased operations during the previous calendar year.
    (b) Annual reporting requirements. You must submit either an Annual 
Update Report or a No Changes Report to BIS, as provided in Sec.  782.6 
of the APR, if, during the previous calendar year, you continued to 
engage in civil nuclear fuel cycle-related activities at a location for 
which you submitted an Initial Report to BIS in accordance with the APR 
reporting requirements described in paragraph (a) of this section.

[[Page 43580]]

    (1) Annual Update Report. You must submit an Annual Update Report 
to BIS if you have updates or changes to report concerning your 
location's activities during the previous calendar year. When preparing 
your Annual Update Report, you must complete the same report forms that 
you used for submitting your Initial Report on these activities. 
However, additional report forms will be required if your location 
engaged in any civil nuclear fuel cycle-related activities described in 
paragraph (a) of this section that you did not previously report to 
BIS. The appropriate report forms for each type of activity that must 
be reported under the APR are identified in paragraphs (a)(1) through 
(a)(3) of this section. You must submit your Annual Update Report to 
BIS no later than January 31 of the year following any calendar year in 
which the activities took place or there were changes to previously 
``reported'' activities (see Supplement No. 1 to this Part).
    (2) No Changes Report. You may submit a No Changes Report, in lieu 
of an Annual Update Report, if you have no updates or changes 
concerning your location's activities (except the certifying official 
and dates signed and submitted) since your most recent report of 
activities to BIS. In order to satisfy the reporting requirements under 
this paragraph (b)(2), you must complete Form AP-16 and submit it to 
BIS, as provided in Sec.  782.6 of the APR, no later than January 31 of 
the year following any calendar year in which there were no changes to 
previously ``reported'' activities or location information (see 
Supplement No. 1 to this Part).
    (3) Additional guidance on annual reporting requirements. (i) If 
your Initial Report or your most recent Annual Update Report for a 
location indicates that all civil nuclear fuel cycle-related activities 
described therein have ceased at that location, and no other reportable 
activities have occurred during the previous calendar year, then you do 
not have a reporting requirement for the location under paragraph (b) 
of this section.
    (ii) If your location ceases to engage in activities subject to the 
APR reporting requirements described in paragraph (a) of this section, 
and you have not previously reported this to BIS, you must submit an 
Annual Update Report covering the calendar year in which you ceased to 
engage in such activities.
    (iii) Closed-down mines should be reported only once.
    (c) Export Report. You must complete Forms AP-1, AP-2, and AP-13 
for each export of specified equipment or non-nuclear material 
identified in Supplement No. 3 to this Part and submit these Forms to 
BIS, as provided in Sec.  782.6 of the APR. These Forms must be 
submitted to BIS no later than 15 days after the end of each calendar 
quarter (see Supplement No. 1 to this Part). For example, the Export 
Report for the calendar quarter beginning on January 1st and ending on 
March 31st must be submitted to BIS by April 15th and the Export 
Reports for the remainder of the calendar year would have to be 
submitted to BIS by July 15th, October 15th, and January 15th, 
respectively.
    (d) Import Confirmation Report. You must complete Forms AP-1, AP-2 
and AP-14 for each import of equipment or non-nuclear material 
identified in Supplement No. 3 to this Part and submit these forms to 
BIS, as provided in Sec.  782.6 of the APR, if BIS sends you written 
notification requiring that you provide information concerning imports 
of such equipment and non-nuclear material. These Forms must be 
submitted within 30 calendar days of the date that you receive written 
notification of this requirement from BIS (see Supplement No. 1 to this 
Part). BIS will provide such notification when it receives a request 
from the IAEA for information concerning imports of this type of 
equipment or non-nuclear material. The IAEA may request this 
information to verify that you received specified equipment or non-
nuclear material that was shipped to you by a person, organization, or 
government from a foreign country.
    (e) Supplemental Information Report. You must complete Forms AP-1, 
AP-2 and AP-15 and submit them to BIS, as provided in Sec.  782.6 of 
the APR, if BIS sends you written notification requiring that you 
provide information about the activities conducted at your location, 
insofar as relevant for the purpose of safeguards. These Forms must be 
submitted within 15 calendar days of the date that you receive written 
notification of this requirement from BIS (see Supplement No. 1 to this 
Part). BIS will provide such notification only if the IAEA specifically 
requests amplification or clarification concerning any information 
provided in the U.S. Declaration based on your report(s).
    (f) Reportable location. A location that must submit an Initial 
Report, Annual Update Report, or No Changes Report to BIS, pursuant to 
the requirements of this section, is considered to be a reportable 
location with declared activities.


Sec.  783.2  Amended reports.

    In order for BIS to maintain accurate information on previously 
submitted reports, including information necessary for BIS to 
facilitate complementary access notifications or to communicate 
reporting requirements under the APR, Amended Reports are required 
under the circumstances described in paragraphs (a), (b), and (d) of 
this section. This section applies only to changes affecting Initial 
Reports and Annual Update Reports that were submitted to BIS in 
accordance with the requirements of Sec.  783.1(a) and (b) of the APR. 
The specific report forms that you must use to prepare and submit an 
Amended Report will depend upon the type of information that you are 
required to provide, pursuant to this section.
    (a) Changes to activity information. You must submit an Amended 
Report to BIS within 30 calendar days of the time that you discover an 
error or omission in your most recent Initial Report or Annual Update 
Report that involves information concerning an activity subject to the 
reporting requirements described in Sec.  783.1(a) or (b) of the APR. 
Use Form AP-1, and any applicable report forms indicated for the 
activities identified in Sec.  783.1(a) of the APR, to prepare your 
Amended Report. Submit your Amended Report to BIS, as provided in Sec.  
782.6 of the APR.
    (b) Changes to organization and location information that must be 
maintained by BIS.
    (1) Internal organization changes. You must submit an Amended 
Report to BIS within 30 calendar days of any change in the following 
information (use Form AP-1 to prepare your Amended Report and submit it 
to BIS, as provided in Sec.  782.6 of the APR):
    (i) Name of report point of contact (R-POC), including telephone 
number, facsimile number, and e-mail address;
    (ii) Name(s) of complementary access point(s) of contact (A-POC), 
including telephone number(s), facsimile number(s) and e-mail 
address(es);
    (iii) Organization name;
    (iv) Organization mailing address;
    (v) Location owner, including telephone number, and facsimile 
number; or
    (vi) Location operator, including telephone number, and facsimile 
number.
    (2) Change in ownership of organization. You must submit an Amended 
Report to BIS if you sold a reportable location or if your reportable 
location went out of business since submitting your most recent Initial 
Report, Annual Update Report, or No Changes Report to BIS. You must 
also submit an Amended Report to BIS if you purchased a reportable 
location that submitted an Initial Report, Annual Update Report, or No 
Changes Report to

[[Page 43581]]

BIS for the most recent reporting period, as specified in Sec.  
783.1(a) and (b) of the APR. Submit your Amended Report to BIS, as 
provided in Sec.  782.6 of the APR, either before the effective date of 
the change in ownership or within 30 calendar days after the effective 
date of the change.
    (i) The following information must be included in an Amended Report 
submitted to BIS by an organization that is selling or that has sold a 
reportable location (use Forms AP-1 and AP-16 to prepare your Amended 
Report--address specific details regarding the sale of a reportable 
location in Form AP-16):
    (A) Name of seller (i.e., name of the organization selling a 
reportable location);
    (B) Reporting Code (this code will be assigned to your location and 
reported to you by BIS or the NRC after receipt of your Initial 
Report);
    (C) Name of purchaser (i.e., name of the new organization/owner 
purchasing a reportable location) and name and address of contact 
person for the purchaser, if known;
    (D) Date of ownership transfer or change;
    (E) Additional details on the sale of the reportable location 
relevant to ownership or operational control over any portion of the 
reportable location (e.g., whether the entire location or only a 
portion of the reportable location has been sold to a new owner); and
    (F) Details regarding whether the new owner of a reportable 
location will submit the next report for the entire calendar year in 
which the ownership change occurred, or whether the previous owner and 
new owner will submit separate reports for the periods of the calendar 
year during which each owned the reportable location.
    (ii) The following information must be included in an Amended 
Report submitted to BIS by an organization that is purchasing or that 
has purchased a reportable location (use Forms AP-1 and AP-2 to prepare 
your Amended Report):
    (A) Name of purchaser (i.e., name of the new organization/owner 
purchasing a reportable location) and name and address of contact 
person for the purchaser;
    (B) Details on the purchase of the reportable location relevant to 
ownership or operational control over any portion of the reportable 
location (e.g., whether the purchaser intends to purchase and to 
maintain operational control over the entire location or only a portion 
of the reportable location); and
    (C) Details on whether the purchaser intends to continue existing 
civil nuclear fuel cycle-related activities at the reportable location 
or to cease such activities during the current reporting period.
    (iii) If the new owner of a reportable location is responsible for 
submitting a report that covers the entire calendar year in which the 
ownership change occurred, the new owner must obtain and maintain 
possession of the location's records covering the entire year, 
including those records for the period of the year during which the 
previous owner still owned the property.

    Note 1 to Sec.  783.2(b): Amended Reports that are submitted to 
identify changes involving internal organization information or 
changes in ownership are used only for internal U.S. Government 
purposes and are not forwarded to the IAEA. BIS uses the information 
it obtains from Amended Reports to update contact information for 
internal oversight purposes and for IAEA complementary access 
notifications.


    Note 2 to Sec.  783.2(b): For ownership changes, the reportable 
location will maintain its original Reporting Code, unless the 
location is sold to multiple owners, at which time BIS will assign a 
new Reporting Code.

    (c) Non-substantive changes. If you discover one or more non-
substantive typographical errors in your Initial Report or Annual 
Update Report, after submitting the report to BIS, you are not required 
to submit an Amended Report to BIS. Instead, you may correct these 
errors when you submit your next Annual Update Report to BIS.
    (d) Amendments related to complementary access. If you are required 
to submit an Amended Report to BIS following the completion of 
complementary access (see part 784 of the APR), BIS will notify you, in 
writing, of the information that must be amended pursuant to Sec.  
784.6 of the APR. Complete and submit Form AP-1 (organization 
information) and/or the specific report forms required by Section 
783.1(a) or (b) of the APR, according to the type(s) of activities for 
which information is being requested. You must submit your Amended 
Report to BIS, as provided in Sec.  782.6 of the APR, no later than 30 
calendar days following your receipt of BIS's post complementary access 
letter.
    (e) Option for submitting amended reports in letter form. If you 
are required to submit an Amended Report to BIS, pursuant to paragraph 
(a), (b), or (d) of this section, BIS may permit you to submit your 
report in the form of a letter that contains all of the corrected 
information required under this section. Your letter must be submitted 
to BIS, at the address indicated in Sec.  782.6 of the APR, no later 
than the applicable due date(s) indicated in this section (also see 
Supplement No. 1 to this part).


Sec.  783.3  Reports containing information determined by BIS not to be 
required by the APR.

    If you submit a report and BIS determines that none of the 
information contained therein is required by the APR, BIS will not 
process the report and will notify you, either electronically or in 
writing, explaining the basis for its decision. BIS will not maintain 
any record of the report. However, BIS will maintain a copy of the 
notification.


Sec.  783.4  Deadlines for submission of reports and amendments.

    Reports and amendments required under this part must be postmarked 
by the appropriate date identified in Supplement No. 1 to this part 
783. Required reports and amendments include those identified in 
paragraphs (a) through (g) of this section.
    (a) Initial Report: Submitted by a location that commenced one or 
more of the civil nuclear fuel cycle-related activities described in 
Sec.  783.1(a) of the APR during the previous calendar year, but that 
has not yet reported such activities to BIS. However, Initial Reports 
that are submitted to BIS during the calendar year in which the APR are 
promulgated must describe only those activities in which you are 
engaged as of the date of publication of the rule establishing the APR, 
except that the description of activities involving uranium hard-rock 
mines must include any such mines that were closed down during the 
calendar year in which the rule establishing the APR was published (up 
to and including the date of publication), as well as mines that were 
in either operating or suspended status on the date of publication (see 
Sec.  783.1(a)(3)(i) of the APR).
    (b) Annual Update Report: Submitted by a reportable location--this 
report describes changes to previously reported (i.e., declared) 
activities and any other reportable civil nuclear fuel cycle-related 
activities that took place at the location during the previous calendar 
year.
    (c) No Changes Report: Submitted by a reportable location, in lieu 
of an Annual Update Report, when there are no updates or changes to any 
information, excluding the certifying official and dates signed and 
submitted, since the previous report submitted by that location.
    (d) Export Report: Submitted following the end of any calendar 
quarter in which a person exports an item listed in Supplement No. 3 to 
this part.

[[Page 43582]]

    (e) Import Confirmation Report: Submitted in response to a written 
notification from BIS, following a specific request by the IAEA.
    (f) Supplemental Information Report: Submitted in response to a 
written notification from BIS, following a specific request by the 
IAEA.
    (g) Amended Report: Submitted by a reportable location to report 
certain changes affecting the location's most recent Initial Report or 
Annual Update Report.

Supplement No. 1 to Part 783

           Deadlines for Submission of Reports and Amendments
------------------------------------------------------------------------
           Reports              Applicable forms          Due dates
------------------------------------------------------------------------
Initial Report..............  Forms AP-1 and AP-2   [30 calendar days
                               and:                  after promulgation
                              --AP-3 or AP-4 for     of the final rule
                               R&D activities;.      establishing the
                              --AP-5 for civil       APR] for: (1) Any
                               nuclear-related       activities in which
                               manufacturing,        you were engaged on
                               assembly or           the date of
                               construction; and.    publication of that
                              --AP-6 for mining      rule and (2)
                               and ore               uranium hard-rock
                               beneficiation..       mines that have
                                                     changed from
                                                     operating or
                                                     suspended status to
                                                     closed-down status
                                                     during the calendar
                                                     year in which the
                                                     rule establishing
                                                     the APR is
                                                     published (up to
                                                     and including the
                                                     date of publication
                                                     of the rule).
                                                    For activities
                                                     commencing after
                                                     promulgation of the
                                                     rule establishing
                                                     the APR, Initial
                                                     Reports must be
                                                     submitted no later
                                                     than January 31 of
                                                     the year following
                                                     any calendar year
                                                     in which the
                                                     activities began,
                                                     unless you are
                                                     required to submit
                                                     an Annual Update
                                                     Report because of
                                                     on-going previously
                                                     ``reported''
                                                     activities at the
                                                     same location--in
                                                     that case, you may
                                                     include the new
                                                     activities in your
                                                     Annual Update
                                                     Report, instead of
                                                     submitting a
                                                     separate Initial
                                                     Report.
Annual Update Report........  Forms AP-1 and AP-2   January 31 of the
                               and:                  year following any
                              --AP-3 or AP-4 for     calendar year in
                               R&D activities;.      which the
                              --AP-5 for civil       activities took
                               nuclear-related       place or there were
                               manufacturing,        changes to
                               assembly or           previously
                               construction; and.    ``reported''
                              --AP-6 for mining      activities.
                               and ore
                               beneficiation..
No Changes Report...........  Form AP-17..........  January 31 of the
                                                     year following any
                                                     calendar year in
                                                     which there were no
                                                     changes to
                                                     previously
                                                     ``reported''
                                                     activities or
                                                     location
                                                     information.
Export Report...............  Forms AP-1, AP-2,     Within 15 calendar
                               and AP-13.            days following the
                                                     end of any calendar
                                                     quarter in which a
                                                     person exports an
                                                     item listed in
                                                     Supplement No. 3 to
                                                     this Part.
Import Confirmation Report..  Forms AP-1, AP-2,     Within 30 calendar
                               and AP-14.            days of receiving
                                                     notification from
                                                     BIS.
Supplemental Information      Forms AP-1, AP-2,     Within 15 calendar
 Report.                       and AP-15.            days of receiving
                                                     notification from
                                                     BIS.
Amended Report:               Form AP-1 and         Amended report due:
--Report information.          appropriate forms,   --30 calendar days
--Organization and location    as specified in       after you discover
 information.                  Sec.   783.1 of the   an error or
--Complementary access         APR, for the type     omission in
 letter.                       of report being       activity
                               amended.              information
                                                     contained in your
                                                     most recent report.
                                                    --30 calendar days
                                                     after a change in
                                                     company information
                                                     or ownership of a
                                                     location.
                                                    --30 calendar days
                                                     after receipt of a
                                                     post-complementary
                                                     access letter from
                                                     BIS.
------------------------------------------------------------------------

Supplement No. 2 to Part 783--Manufacturing Activities

    The following constitute manufacturing activities that would 
require the submission of a report to BIS, pursuant to Sec.  
783.1(a)(2) of the APR.
    (1) The manufacture of centrifuge rotor tubes or the assembly of 
gas centrifuges. Centrifuge rotor tubes means thin-walled cylinders 
as described in Section 5.1.1(b) of Supplement No. 3 to this Part. 
Gas centrifuges means centrifuges as described in the INTRODUCTORY 
NOTE to Section 5.1 of Supplement No. 3 to this Part.
    (2) The manufacture of diffusion barriers. Diffusion barriers 
means thin, porous filters as described in Section 5.3.1(a) of 
Supplement No. 3 to this Part.
    (3) The manufacture or assembly of laser-based systems. Laser-
based systems means systems incorporating those items as described 
in Section 5.7 of Supplement No. 3 to this Part.
    (4) The manufacture or assembly of electromagnetic isotope 
separators. Electromagnetic isotope separators means those items 
referred to in Section 5.9.1 of Supplement No. 3 to this Part 
containing ion sources as described in Section 5.9.1(a) of 
Supplement No. 3 to this Part.
    (5) The manufacture or assembly of columns or extraction 
equipment. Columns or extraction equipment means those items as 
described in Sections 5.6.1, 5.6.2, 5.6.3, 5.6.5, 5.6.6, 5.6.7, and 
5.6.8 of Supplement No. 3 to this Part.
    (6) The manufacture of aerodynamic separation nozzles or vortex 
tubes.

[[Page 43583]]

Aerodynamic separation nozzles or vortex tubes means separation 
nozzles and vortex tubes as described, respectively, in Sections 
5.5.1 and 5.5.2 of Supplement No. 3 to this Part.
    (7) The manufacture or assembly of uranium plasma generation 
systems. Uranium plasma generation systems means systems for the 
generation of uranium plasma as described in Section 5.8.3 of 
Supplement No. 3 to this Part.
    (8) The manufacture of zirconium tubes. Zirconium tubes means 
tubes as described in Section 1.6 of Supplement No. 3 to this Part.
    (9) The manufacture or upgrading of heavy water or deuterium. 
Heavy water or deuterium means deuterium, heavy water (deuterium 
oxide) and any other deuterium compound in which the ratio of 
deuterium to hydrogen atoms exceeds 1:5,000.
    (10) The manufacture of nuclear grade graphite. Nuclear grade 
graphite means graphite having a purity level better than 5 parts 
per million boron equivalent and with a density greater than 1.50 g/
cm\3\;
    (11) The manufacture of flasks for irradiated fuel. A flask for 
irradiated fuel means a vessel for the transportation and/or storage 
of irradiated fuel that provides chemical, thermal and radiological 
protection, and dissipates decay heat during handling, 
transportation and storage.
    (12) The manufacture of reactor control rods. Reactor control 
rods means rods as described in Section 1.4 of Supplement No. 3 to 
this Part.
    (13) The manufacture of critically safe tanks and vessels. 
Critically safe tanks and vessels means those items as described in 
Sections 3.2 and 3.4 of Supplement No. 3 to this Part.
    (14) The manufacture of irradiated fuel element chopping 
machines. Irradiated fuel element chopping machines means equipment 
as described in Section 3.1 of Supplement No. 3 to this Part.
    (15) The construction of hot cells. Hot cells means a cell or 
interconnected cells totaling at least 6 cubic meters in volume with 
shielding equal to or greater than the equivalent of 0.5 meters of 
concrete, with a density of 3.2 g/cm\3\ or greater, outfitted with 
equipment for remote operations.

Supplement No. 3 to Part 783 List of Specified Equipment and Non-
Nuclear Material for the Reporting of Exports and Imports

1. Reactors and Equipment Therefor

1.1. Complete Nuclear Reactors

    Nuclear reactors capable of operation so as to maintain a 
controlled self-sustaining fission chain reaction, excluding zero 
energy reactors, the latter being defined as reactors with a 
designed maximum rate of production of plutonium not exceeding 100 
grams per year.
    Explanatory Note: A ``nuclear reactor'' basically includes the 
items within or attached directly to the reactor vessel, the 
equipment which controls the level of power in the core, and the 
components which normally contain or come in direct contact with or 
control the primary coolant of the reactor core. It is not intended 
to exclude reactors which could reasonably be capable of 
modification to produce significantly more than 100 grams of 
plutonium per year. Reactors designed for sustained operation at 
significant power levels, regardless of their capacity for plutonium 
production, are not considered as ``zero energy reactors.''

1.2. Reactor Pressure Vessels

    Metal vessels, as complete units or as major shop-fabricated 
parts therefor, which are specially designed or prepared to contain 
the core of a nuclear reactor, as defined in Section 1.1, and are 
capable of withstanding the operating pressure of the primary 
coolant.
    Explanatory Note: This is the list that the IAEA Board of 
Governors agreed at its meeting on 24 February 1993 would be used 
for the purpose of the voluntary reporting scheme, as subsequently 
amended by the Board. A top plate for a reactor pressure vessel is 
covered by this Section 1.2 as a major shop-fabricated part of a 
pressure vessel. Reactor internals (e.g., support columns and plates 
for the core and other vessel internals, control rod guide tubes, 
thermal shields, baffles, core grid plates, diffuser plates, etc.) 
are normally supplied by the reactor supplier. In some cases, 
certain internal support components are included in the fabrication 
of the pressure vessel. These items are sufficiently critical to the 
safety and reliability of the operation of the reactor (and, 
therefore, to the guarantees and liability of the reactor supplier), 
so that their supply, outside the basic supply arrangement for the 
reactor itself, would not be common practice. Therefore, although 
the separate supply of these unique, specially designed and 
prepared, critical, large and expensive items would not necessarily 
be considered as falling outside the area of concern, such a mode of 
supply is considered unlikely.

1.3. Reactor Fuel Charging and Discharging Machines

    Manipulative equipment specially designed or prepared for 
inserting or removing fuel in a nuclear reactor, as defined in 
Section 1.1 of this Supplement, capable of on-load operation or 
employing technically sophisticated positioning or alignment 
features to allow complex off-load fueling operations such as those 
in which direct viewing of or access to the fuel is not normally 
available.

1.4. Reactor Control Rods

    Rods specially designed or prepared for the control of the 
reaction rate in a nuclear reactor as defined in Section 1.1 of this 
Supplement.
    Explanatory Note: This item includes, in addition to the neutron 
absorbing part, the support or suspension structures therefor if 
supplied separately.

1.5. Reactor Pressure Tubes

    Tubes which are specially designed or prepared to contain fuel 
elements and the primary coolant in a reactor, as defined in Section 
1.1 of this Supplement, at an operating pressure in excess of 5.1 
MPa (740 psi).

1.6. Zirconium Tubes

    Zirconium metal and alloys in the form of tubes or assemblies of 
tubes, and in quantities exceeding 500 kg in any period of 12 
months, specially designed or prepared for use in a reactor, as 
defined in Section 1.1 of this Supplement, and in which the relation 
of hafnium to zirconium is less than 1:500 parts by weight.

1.7. Primary Coolant Pumps

    Pumps specially designed or prepared for circulating the primary 
coolant for nuclear reactors, as defined in Section 1.1 of this 
Supplement.
    Explanatory Note: Specially designed or prepared pumps may 
include elaborate sealed or multi-sealed systems to prevent leakage 
of primary coolant, canned-driven pumps, and pumps with inertial 
mass systems. This definition encompasses pumps certified to NC-1 or 
equivalent standards.

2. Non-Nuclear Materials for Reactors

2.1. Deuterium and Heavy Water

    Deuterium, heavy water (deuterium oxide) and any other deuterium 
compound in which the ratio of deuterium to hydrogen atoms exceeds 
1:5,000 for use in a nuclear reactor, as defined in Section 1.1 of 
this Supplement, in quantities exceeding 200 kg of deuterium atoms 
for any one recipient country in any period of 12 months.

2.2. Nuclear Grade Graphite

    Graphite having a purity level better than 5 parts per million 
boron equivalent and with a density greater than 1.50 g/cm\3\ for 
use in a nuclear reactor, as defined in Section 1.1 of this 
Supplement, in quantities exceeding 3 x 10\4\ kg (30 metric tons) 
for any one recipient country in any period of 12 months.
    Note: For the purpose of reporting, the Government will 
determine whether or not the exports of graphite meeting the 
specifications of this Section 2.2 are for nuclear reactor use.

3. Plants for the Reprocessing of Irradiated Fuel Elements, and 
Equipment Specially Designed or Prepared Therefor

    Introductory Note: Reprocessing irradiated nuclear fuel 
separates plutonium and uranium from intensely radioactive fission 
products and other transuranic elements. Different technical 
processes can accomplish this separation. However, over the years 
Purex has become the most commonly used and accepted process. Purex 
involves the dissolution of irradiated nuclear fuel in nitric acid, 
followed by separation of the uranium, plutonium, and fission 
products by solvent extraction using a mixture of tributyl phosphate 
in an organic diluent. Purex facilities have process functions 
similar to each other, including: irradiated fuel element chopping, 
fuel dissolution, solvent extraction, and process liquor storage. 
There may also be equipment for thermal denitration of uranium 
nitrate, conversion of plutonium nitrate to oxide or metal, and 
treatment of fission product waste liquor to a form suitable for 
long term storage or disposal. However, the specific type and 
configuration of the equipment performing these functions may differ 
between Purex

[[Page 43584]]

facilities for several reasons, including the type and quantity of 
irradiated nuclear fuel to be reprocessed and the intended 
disposition of the recovered materials, and the safety and 
maintenance philosophy incorporated into the design of the facility. 
A ``plant for the reprocessing of irradiated fuel elements'' 
includes the equipment and components which normally come in direct 
contact with and directly control the irradiated fuel and the major 
nuclear material and fission product processing streams. These 
processes, including the complete systems for plutonium conversion 
and plutonium metal production, may be identified by the measures 
taken to avoid criticality (e.g., by geometry), radiation exposure 
(e.g., by shielding), and toxicity hazards (e.g., by containment). 
Items of equipment that are considered to fall within the meaning of 
the phrase ``and equipment specially designed or prepared'' for the 
reprocessing of irradiated fuel elements include:

3.1. Irradiated Fuel Element Chopping Machines

    Introductory Note: This equipment breaches the cladding of the 
fuel to expose the irradiated nuclear material to dissolution. 
Specially designed metal cutting shears are the most commonly 
employed, although advanced equipment, such as lasers, may be used. 
Remotely operated equipment specially designed or prepared for use 
in a reprocessing plant, as identified in the introductory paragraph 
of this section, and intended to cut, chop or shear irradiated 
nuclear fuel assemblies, bundles or rods.

3.2. Dissolvers

    Introductory Note: Dissolvers normally receive the chopped-up 
spent fuel. In these critically safe vessels, the irradiated nuclear 
material is dissolved in nitric acid and the remaining hulls removed 
from the process stream. Critically safe tanks (e.g., small 
diameter, annular or slab tanks) specially designed or prepared for 
use in a reprocessing plant, as identified in the introductory 
paragraph of this section, intended for dissolution of irradiated 
nuclear fuel and which are capable of withstanding hot, highly 
corrosive liquid, and which can be remotely loaded and maintained.

3.3. Solvent Extractors and Solvent Extraction Equipment

    Introductory Note: Solvent extractors both receive the solution 
of irradiated fuel from the dissolvers and the organic solution 
which separates the uranium, plutonium, and fission products. 
Solvent extraction equipment is normally designed to meet strict 
operating parameters, such as long operating lifetimes with no 
maintenance requirements or adaptability to easy replacement, 
simplicity of operation and control, and flexibility for variations 
in process conditions. Specially designed or prepared solvent 
extractors such as packed or pulse columns, mixer settlers or 
centrifugal contactors for use in a plant for the reprocessing of 
irradiated fuel. Solvent extractors must be resistant to the 
corrosive effect of nitric acid. Solvent extractors are normally 
fabricated to extremely high standards (including special welding 
and inspection and quality assurance and quality control techniques) 
out of low carbon stainless steels, titanium, zirconium, or other 
high quality materials.

3.4. Chemical Holding or Storage Vessels

    Introductory Note: Three main process liquor streams result from 
the solvent extraction step. Holding or storage vessels are used in 
the further processing of all three streams, as follows:
    (a) The pure uranium nitrate solution is concentrated by 
evaporation and passed to a denitration process where it is 
converted to uranium oxide. This oxide is re-used in the nuclear 
fuel cycle.
    (b) The intensely radioactive fission products solution is 
normally concentrated by evaporation and stored as a liquor 
concentrate. This concentrate may be subsequently evaporated and 
converted to a form suitable for storage or disposal.
    (c) The pure plutonium nitrate solution is concentrated and 
stored pending its transfer to further process steps. In particular, 
holding or storage vessels for plutonium solutions are designed to 
avoid criticality problems resulting from changes in concentration 
and form of this stream. Specially designed or prepared holding or 
storage vessels for use in a plant for the reprocessing of 
irradiated fuel. The holding or storage vessels must be resistant to 
the corrosive effect of nitric acid. The holding or storage vessels 
are normally fabricated of materials such as low carbon stainless 
steels, titanium or zirconium, or other high quality materials. 
Holding or storage vessels may be designed for remote operation and 
maintenance and may have the following features for control of 
nuclear criticality: (1) Walls or internal structures with a boron 
equivalent of at least two percent; (2) a maximum diameter of 175 mm 
(7 in) for cylindrical vessels; or (3) a maximum width of 75 mm (3 
in) for either a slab or annular vessel.

3.5. Plutonium Nitrate to Oxide Conversion System

    Introductory Note: In most reprocessing facilities, this final 
process involves the conversion of the plutonium nitrate solution to 
plutonium dioxide. The main functions involved in this process are: 
Process feed storage and adjustment, precipitation and solid/liquor 
separation, calcination, product handling, ventilation, waste 
management, and process control. Complete systems specially designed 
or prepared for the conversion of plutonium nitrate to plutonium 
oxide, in particular adapted so as to avoid criticality and 
radiation effects and to minimize toxicity hazards.

3.6. Plutonium Oxide to Metal Production System

    Introductory Note: This process, which could be related to a 
reprocessing facility, involves the fluorination of plutonium 
dioxide, normally with highly corrosive hydrogen fluoride, to 
produce plutonium fluoride which is subsequently reduced using high 
purity calcium metal to produce metallic plutonium and a calcium 
fluoride slag. The main functions involved in this process are: 
Fluorination (e.g., involving equipment fabricated or lined with a 
precious metal), metal reduction (e.g., employing ceramic 
crucibles), slag recovery, product handling, ventilation, waste 
management and process control. Complete systems specially designed 
or prepared for the production of plutonium metal, in particular 
adapted so as to avoid criticality and radiation effects and to 
minimize toxicity hazards.

4. Plants for the Fabrication of Fuel Elements

    A ``plant for the fabrication of fuel elements'' includes the 
equipment:
    (a) Which normally comes in direct contact with, or directly 
processes, or controls, the production flow of nuclear material, or
    (b) Which seals the nuclear material within the cladding.

5. Plants for the Separation of Isotopes of Uranium and Equipment, 
Other Than Analytical Instruments, Specially Designed or Prepared 
Therefor

    Items of equipment that are considered to fall within the 
meaning of the phrase ``equipment, other than analytical 
instruments, specially designed or prepared'' for the separation of 
isotopes of uranium include:

5.1. Gas Centrifuges and Assemblies and Components Specially Designed 
or Prepared for Use in Gas Centrifuges

    Introductory Note: The gas centrifuge normally consists of a 
thin-walled cylinder(s) of between 75 mm (3 in) and 400 mm (16 in) 
diameter contained in a vacuum environment and spun at high 
peripheral speed of the order of 300 m/s or more with its central 
axis vertical. In order to achieve high speed the materials of 
construction for the rotating components have to be of a high 
strength to density ratio and the rotor assembly, and hence its 
individual components, have to be manufactured to very close 
tolerances in order to minimize the unbalance. In contrast to other 
centrifuges, the gas centrifuge for uranium enrichment is 
characterized by having within the rotor chamber a rotating disc-
shaped baffle(s) and a stationary tube arrangement for feeding and 
extracting the UF6 gas and featuring at least 3 separate 
channels, of which 2 are connected to scoops extending from the 
rotor axis towards the periphery of the rotor chamber. Also 
contained within the vacuum environment are a number of critical 
items which do not rotate and which although they are specially 
designed are not difficult to fabricate nor are they fabricated out 
of unique materials. A centrifuge facility however requires a large 
number of these components, so that quantities can provide an 
important indication of end use.

5.1.1. Rotating Components

    (a) Complete rotor assemblies: Thin-walled cylinders, or a 
number of interconnected thin-walled cylinders, manufactured from 
one or more of the high strength to density ratio materials 
described in the Explanatory Note to Section 5.1.1 of this 
Supplement. If interconnected, the cylinders are joined together by 
flexible bellows or rings as described in Section 5.1.1(c) of this

[[Page 43585]]

Supplement. The rotor is fitted with an internal baffle(s) and end 
caps, as described in Section 5.1.1(d) and (e) of this Supplement, 
if in final form. However the complete assembly may be delivered 
only partly assembled.
    (b) Rotor tubes: Specially designed or prepared thin-walled 
cylinders with thickness of 12 mm (0.5 in) or less, a diameter of 
between 75 mm (3 in) and 400 mm (16 in), and manufactured from one 
or more of the high strength to density ratio materials described in 
the Explanatory Note to Section 5.1.1 of this Supplement.
    (c) Rings or Bellows: Components specially designed or prepared 
to give localized support to the rotor tube or to join together a 
number of rotor tubes. The bellows is a short cylinder of wall 
thickness 3 mm (0.12 in) or less, a diameter of between 75 mm (3 in) 
and 400 mm (16 in), having a convolute, and manufactured from one of 
the high strength to density ratio materials described in the 
Explanatory Note to Section 5.1.1 of this Supplement.
    (d) Baffles: Disc-shaped components of between 75 mm (3 in) and 
400 mm (16 in) diameter specially designed or prepared to be mounted 
inside the centrifuge rotor tube, in order to isolate the take-off 
chamber from the main separation chamber and, in some cases, to 
assist the UF6 gas circulation within the main separation 
chamber of the rotor tube, and manufactured from one of the high 
strength to density ratio materials described in the Explanatory 
Note to Section 5.1.1 of this Supplement.
    (e) Top caps/Bottom caps: Disc-shaped components of between 75 
mm (3 in) and 400 mm (16 in) diameter specially designed or prepared 
to fit to the ends of the rotor tube, and so contain the 
UF6 within the rotor tube, and in some cases to support, 
retain or contain as an integrated part an element of the upper 
bearing (top cap) or to carry the rotating elements of the motor and 
lower bearing (bottom cap), and manufactured from one of the high 
strength to density ratio materials described in the Explanatory 
Note to Section 5.1.1 of this Supplement.
    Explanatory Note: The materials used for centrifuge rotating 
components are:
    (a) Maraging steel capable of an ultimate tensile strength of 
2.05 x 10\9\ N/m\2\ (300,000 psi) or more;
    (b) Aluminum alloys capable of an ultimate tensile strength of 
0.46 x 10\9\ N/m\2\ (67,000 psi) or more;
    (c) Filamentary materials suitable for use in composite 
structures and having a specific modulus of 12.3 x 10\6\ m or 
greater and a specific ultimate tensile strength of 0.3 x 10\6\ m or 
greater (``Specific Modulus'' is the Young's Modulus in N/m\2\ 
divided by the specific weight in N/m\3\; ``Specific Ultimate 
Tensile Strength'' is the ultimate tensile strength in N/m\2\ 
divided by the specific weight in N/m\3\).

5.1.2. Static Components

    (a) Magnetic suspension bearings: Specially designed or prepared 
bearing assemblies consisting of an annular magnet suspended within 
a housing containing a damping medium. The housing will be 
manufactured from a UF6-resistant material (see 
Explanatory Note to Section 5.2 of this Supplement.). The magnet 
couples with a pole piece or a second magnet fitted to the top cap 
described in Section 5.1.1(e) of this Supplement. The magnet may be 
ring-shaped with a relation between outer and inner diameter smaller 
or equal to 1.6:1. The magnet may be in a form having an initial 
permeability of 0.15 H/m (120,000 in CGS units) or more, or a 
remanence of 98.5% or more, or an energy product of greater than 80 
kJ/m\3\ (10\7\ gauss-oersteds). In addition to the usual material 
properties, it is a prerequisite that the deviation of the magnetic 
axes from the geometrical axes is limited to very small tolerances 
(lower than 0.1 mm or 0.004 in) or that homogeneity of the material 
of the magnet is specially called for.
    (b) Bearings/Dampers: Specially designed or prepared bearings 
comprising a pivot/cup assembly mounted on a damper. The pivot is 
normally a hardened steel shaft with a hemisphere at one end with a 
means of attachment to the bottom cap, described in Section 5.1.1(e) 
of this Supplement, at the other. The shaft may however have a 
hydrodynamic bearing attached. The cup is pellet-shaped with a 
hemispherical indentation in one surface. These components are often 
supplied separately to the damper.
    (c) Molecular pumps: Specially designed or prepared cylinders 
having internally machined or extruded helical grooves and 
internally machined bores. Typical dimensions are as follows: 75 mm 
(3 in) to 400 mm (16 in) internal diameter, 10 mm (0.4 in) or more 
wall thickness, with the length equal to or greater than the 
diameter. The grooves are typically rectangular in cross-section and 
2 mm (0.08 in) or more in depth.
    (d) Motor stators: Specially designed or prepared ring-shaped 
stators for high speed multiphase AC hysteresis (or reluctance) 
motors for synchronous operation within a vacuum in the frequency 
range of 600-2,000 Hz and a power range of 50-1,000 VA. The stators 
consist of multi-phase windings on a laminated low loss iron core 
comprised of thin layers typically 2.0 mm (0.08 in) thick or less.
    (e) Centrifuge housing/recipients: Components specially designed 
or prepared to contain the rotor tube assembly of a gas centrifuge. 
The housing consists of a rigid cylinder of wall thickness up to 30 
mm (1.2 in) with precision machined ends to locate the bearings and 
with one or more flanges for mounting. The machined ends are 
parallel to each other and perpendicular to the cylinder's 
longitudinal axis to within 0.05 degrees or less. The housing may 
also be a honeycomb type structure to accommodate several rotor 
tubes. The housings are made of or protected by materials resistant 
to corrosion by UF6.
    (f) Scoops: Specially designed or prepared tubes of up to 12 mm 
(0.5 in) internal diameter for the extraction of UF6 gas 
from within the rotor tube by a Pitot tube action (that is, with an 
aperture facing into the circumferential gas flow within the rotor 
tube, for example by bending the end of a radially disposed tube) 
and capable of being fixed to the central gas extraction system. The 
tubes are made of or protected by materials resistant to corrosion 
by UF6.

5.2. Specially Designed or Prepared Auxiliary Systems, Equipment and 
Components for Gas Centrifuge Enrichment Plants

    Introductory Note: The auxiliary systems, equipment and 
components for a gas centrifuge enrichment plant are the systems of 
plant needed to feed UF6 to the centrifuges, to link the 
individual centrifuges to each other to form cascades (or stages) to 
allow for progressively higher enrichments and to extract the 
``product'' and ``tails'' UF6 from the centrifuges, 
together with the equipment required to drive the centrifuges or to 
control the plant. Normally UF6 is evaporated from the 
solid using heated autoclaves and is distributed in gaseous form to 
the centrifuges by way of cascade header pipework. The ``product'' 
and ``tails'' UF6 gaseous streams flowing from the 
centrifuges are also passed by way of cascade header pipework to 
cold traps (operating at about 203 K (-70 [deg]C)) where they are 
condensed prior to onward transfer into suitable containers for 
transportation or storage. Because an enrichment plant consists of 
many thousands of centrifuges arranged in cascades there are many 
kilometers of cascade header pipework, incorporating thousands of 
welds with a substantial amount of repetition of layout. The 
equipment, components and piping systems are fabricated to very high 
vacuum and cleanliness standards.

5.2.1. Feed Systems/Product and Tails Withdrawal Systems

    Specially designed or prepared process systems including: Feed 
autoclaves (or stations), used for passing UF6 to the 
centrifuge cascades at up to 100 kPa (15 psi) and at a rate of 1 kg/
h or more; desublimers (or cold traps) used to remove UF6 
from the cascades at up to 3 kPa (0.5 psi) pressure. The desublimers 
are capable of being chilled to 203 K (-70 [deg]C) and heated to 343 
K (70 [deg]C); ``Product'' and ``Tails'' stations used for trapping 
UF6 into containers. This plant, equipment and pipework 
is wholly made of or lined with UF6-resistant materials 
(see Explanatory Note to Section 5.2 of this Supplement) and is 
fabricated to very high vacuum and cleanliness standards.

5.2.2. Machine Header Piping Systems

    Specially designed or prepared piping systems and header systems 
for handling UF6 within the centrifuge cascades. The 
piping network is normally of the ``triple'' header system with each 
centrifuge connected to each of the headers. There is thus a 
substantial amount of repetition in its form. It is wholly made of 
UF6-resistant materials (see Explanatory Note to Section 
5.2 of this Supplement) and is fabricated to very high vacuum and 
cleanliness standards.

5.2.3. UF6 Mass Spectrometers/Ion Sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, product 
or tails, from UF6 gas streams and having all of the 
following characteristics:
    (a) Unit resolution for atomic mass unit greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel 
or nickel plated;

[[Page 43586]]

    (c) Electron bombardment ionization sources;
    (d) Having a collector system suitable for isotopic analysis.

5.2.4. Frequency Changers

    Frequency changers (also known as converters or invertors) 
specially designed or prepared to supply motor stators (as defined 
under Section 5.1.2(d) of this Supplement), or parts, components and 
sub-assemblies of such frequency changers having all of the 
following characteristics:
    (a) A multiphase output of 600 to 2,000 Hz;
    (b) High stability (with frequency control better than 0.1%);
    (c) Low harmonic distortion (less than 2%); and
    (d) An efficiency of greater than 80%.
    Explanatory Note: The items listed in this Section 5.2 either 
come into direct contact with the UF6 process gas or 
directly control the centrifuges and the passage of the gas from 
centrifuge to centrifuge and cascade to cascade. Materials resistant 
to corrosion by UF6 include stainless steel, aluminum, 
aluminum alloys, nickel or alloys containing 60% or more nickel.

5.3. Specially Designed or Prepared Assemblies and Components for Use 
in Gaseous Diffusion Enrichment

    Introductory Note: In the gaseous diffusion method of uranium 
isotope separation, the main technological assembly is a special 
porous gaseous diffusion barrier, heat exchanger for cooling the gas 
(which is heated by the process of compression), seal valves and 
control valves, and pipelines. Inasmuch as gaseous diffusion 
technology uses uranium hexafluoride (UF6), all 
equipment, pipeline and instrumentation surfaces (that come in 
contact with the gas) must be made of materials that remain stable 
in contact with UF6. A gaseous diffusion facility 
requires a number of these assemblies, so that quantities can 
provide an important indication of end use.

5.3.1. Gaseous Diffusion Barriers

    (a) Specially designed or prepared thin, porous filters, with a 
pore size of 100-1,000 [Aring] (angstroms), a thickness of 5 mm (0.2 
in) or less, and for tubular forms, a diameter of 25 mm (1 in) or 
less, made of metallic, polymer or ceramic materials resistant to 
corrosion by UF6, and
    (b) Specially prepared compounds or powders for the manufacture 
of such filters. Such compounds and powders include nickel or alloys 
containing 60 percent or more nickel, aluminum oxide, or 
UF6-resistant fully fluorinated hydrocarbon polymers 
having a purity of 99.9 percent or more, a particle size less than 
10 microns, and a high degree of particle size uniformity, which are 
specially prepared for the manufacture of gaseous diffusion 
barriers.

5.3.2. Diffuser Housings

    Specially designed or prepared hermetically sealed cylindrical 
vessels greater than 300 mm (12 in) in diameter and greater than 900 
mm (35 in) in length, or rectangular vessels of comparable 
dimensions, which have an inlet connection and two outlet 
connections all of which are greater than 50 mm (2 in) in diameter, 
for containing the gaseous diffusion barrier, made of or lined with 
UF6-resistant materials and designed for horizontal or 
vertical installation.

5.3.3. Compressors and Gas Blowers

    Specially designed or prepared axial, centrifugal, or positive 
displacement compressors, or gas blowers with a suction volume 
capacity of 1 m\3\/min or more of UF6, and with a 
discharge pressure of up to several hundred kPa (100 psi), designed 
for long-term operation in the UF6 environment with or 
without an electrical motor of appropriate power, as well as 
separate assemblies of such compressors and gas blowers. These 
compressors and gas blowers have a pressure ratio between 2:1 and 
6:1 and are made of, or lined with, materials resistant to 
UF6.

5.3.4. Rotary Shaft Seals

    Specially designed or prepared vacuum seals, with seal feed and 
seal exhaust connections, for sealing the shaft connecting the 
compressor or the gas blower rotor with the driver motor so as to 
ensure a reliable seal against in-leaking of air into the inner 
chamber of the compressor or gas blower which is filled with 
UF6. Such seals are normally designed for a buffer gas 
in-leakage rate of less than 1,000 cm\3\/min (60 in\3\/min).

5.3.5. Heat Exchangers for Cooling UF6

    Specially designed or prepared heat exchangers made of or lined 
with UF6-resistant materials (except stainless steel) or 
with copper or any combination of those metals, and intended for a 
leakage pressure change rate of less than 10 Pa (0.0015 psi) per 
hour under a pressure difference of 100 kPa (15 psi).

5.4. Specially Designed or Prepared Auxiliary Systems, Equipment and 
Components for Use in Gaseous Diffusion Enrichment

    Introductory Note: The auxiliary systems, equipment and 
components for gaseous diffusion enrichment plants are the systems 
of plant needed to feed UF6 to the gaseous diffusion 
assembly, to link the individual assemblies to each other to form 
cascades (or stages) to allow for progressively higher enrichments 
and to extract the ``product'' and ``tails'' UF6 from the 
diffusion cascades. Because of the high inertial properties of 
diffusion cascades, any interruption in their operation, and 
especially their shut-down, leads to serious consequences. 
Therefore, a strict and constant maintenance of vacuum in all 
technological systems, automatic protection from accidents, and 
precise automated regulation of the gas flow is of importance in a 
gaseous diffusion plant. All this leads to a need to equip the plant 
with a large number of special measuring, regulating and controlling 
systems. Normally UF6 is evaporated from cylinders placed 
within autoclaves and is distributed in gaseous form to the entry 
point by way of cascade header pipework. The ``product'' and 
``tails'' UF6 gaseous streams flowing from exit points 
are passed by way of cascade header pipework to either cold traps or 
to compression stations where the UF6 gas is liquefied 
prior to onward transfer into suitable containers for transportation 
or storage. Because a gaseous diffusion enrichment plant consists of 
a large number of gaseous diffusion assemblies arranged in cascades, 
there are many kilometers of cascade header pipework, incorporating 
thousands of welds with substantial amounts of repetition of layout. 
The equipment, components and piping systems are fabricated to very 
high vacuum and cleanliness standards.

5.4.1. Feed Systems/Product and Tails Withdrawal Systems

    Specially designed or prepared process systems, capable of 
operating at pressures of 300 kPa (45 psi) or less, including:
    (a) Feed autoclaves (or systems), used for passing 
UF6 to the gaseous diffusion cascades;
    (b) Desublimers (or cold traps) used to remove UF6 
from diffusion cascades;
    (c) Liquefaction stations where UF6 gas from the 
cascade is compressed and cooled to form liquid UF6;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

5.4.2. Header Piping Systems

    Specially designed or prepared piping systems and header systems 
for handling UF6 within the gaseous diffusion cascades. 
This piping network is normally of the ``double'' header system with 
each cell connected to each of the headers.

5.4.3. Vacuum Systems

    (a) Specially designed or prepared large vacuum manifolds, 
vacuum headers and vacuum pumps having a suction capacity of 5 m\3\/
min (175 ft\3\/min) or more.
    (b) Vacuum pumps specially designed for service in 
UF6-bearing atmospheres made of, or lined with, aluminum, 
nickel, or alloys bearing more than 60% nickel. These pumps may be 
either rotary or positive, may have displacement and fluorocarbon 
seals, and may have special working fluids present.

5.4.4. Special Shut-Off and Control Valves

    Specially designed or prepared manual or automated shut-off and 
control bellows valves made of UF6-resistant materials 
with a diameter of 40 to 1,500 mm (1.5 to 59 in) for installation in 
main and auxiliary systems of gaseous diffusion enrichment plants.

5.4.5. UF6 Mass Spectrometers/Ion Sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, product 
or tails, from UF6 gas streams and having all of the 
following characteristics:
    (a) Unit resolution for atomic mass unit greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel 
or nickel plated;
    (c) Electron bombardment ionization sources;
    (d) Collector system suitable for isotopic analysis.
    Explanatory Note: The items listed in this Section 5.4 either 
come into direct contact with the UF6 process gas or 
directly control the flow within the cascade. All surfaces which 
come into contact with the process gas

[[Page 43587]]

are wholly made of, or lined with, UF6-resistant 
materials. For the purposes of the Sections in this Supplement 
relating to gaseous diffusion items, the materials resistant to 
corrosion by UF6 include stainless steel, aluminum, 
aluminum alloys, aluminum oxide, nickel or alloys containing 60% or 
more nickel and UF6-resistant fully fluorinated 
hydrocarbon polymers.

5.5. Specially Designed or Prepared Systems, Equipment and Components 
for Use in Aerodynamic Enrichment Plants

    Introductory Note: In aerodynamic enrichment processes, a 
mixture of gaseous UF6 and light gas (hydrogen or helium) 
is compressed and then passed through separating elements wherein 
isotopic separation is accomplished by the generation of high 
centrifugal forces over a curved-wall geometry. Two processes of 
this type have been successfully developed: the separation nozzle 
process and the vortex tube process. For both processes the main 
components of a separation stage include cylindrical vessels housing 
the special separation elements (nozzles or vortex tubes), gas 
compressors and heat exchangers to remove the heat of compression. 
An aerodynamic plant requires a number of these stages, so that 
quantities can provide an important indication of end use. Since 
aerodynamic processes use UF6, all equipment, pipeline 
and instrumentation surfaces (that come in contact with the gas) 
must be made of materials that remain stable in contact with 
UF6.
    Explanatory Note: The items listed in Section 5.5 of this 
Supplement either come into direct contact with the UF6 
process gas or directly control the flow within the cascade. All 
surfaces which come into contact with the process gas are wholly 
made of or protected by UF6-resistant materials. For the 
purposes of the provisions of Section 5.5 of this Supplement that 
relate to aerodynamic enrichment items, the materials resistant to 
corrosion by UF6 include copper, stainless steel, 
aluminum, aluminum alloys, nickel or alloys containing 60% or more 
nickel and UF6-resistant fully fluorinated hydrocarbon 
polymers.

5.5.1. Separation Nozzles

    Specially designed or prepared separation nozzles and assemblies 
thereof. The separation nozzles consist of slit-shaped, curved 
channels having a radius of curvature less than 1 mm (typically 0.1 
to 0.05 mm), resistant to corrosion by UF6 and having a 
knife-edge within the nozzle that separates the gas flowing through 
the nozzle into two fractions.

5.5.2. Vortex Tubes

    Specially designed or prepared vortex tubes and assemblies 
thereof. The vortex tubes are cylindrical or tapered, made of or 
protected by materials resistant to corrosion by UF6, 
having a diameter of between 0.5 cm and 4 cm, a length to diameter 
ratio of 20:1 or less and with one or more tangential inlets. The 
tubes may be equipped with nozzle-type appendages at either or both 
ends.
    Explanatory Note: The feed gas enters the vortex tube 
tangentially at one end or through swirl vanes or at numerous 
tangential positions along the periphery of the tube.

5.5.3. Compressors and Gas Blowers

    Specially designed or prepared axial, centrifugal or positive 
displacement compressors or gas blowers made of or protected by 
materials resistant to corrosion by UF6 and with a 
suction volume capacity of 2 m\3\/min or more of UF6/
carrier gas (hydrogen or helium) mixture.
    Explanatory Note: These compressors and gas blowers typically 
have a pressure ratio between 1.2:1 and 6:1.

5.5.4. Rotary Shaft Seals

    Specially designed or prepared rotary shaft seals, with seal 
feed and seal exhaust connections, for sealing the shaft connecting 
the compressor rotor or the gas blower rotor with the driver motor 
so as to ensure a reliable seal against out-leakage of process gas 
or in-leakage of air or seal gas into the inner chamber of the 
compressor or gas blower which is filled with a UF6/
carrier gas mixture.

5.5.5. Heat Exchangers for Gas Cooling

    Specially designed or prepared heat exchangers made of or 
protected by materials resistant to corrosion by UF6.

5.5.6. Separation Element Housings

    Specially designed or prepared separation element housings, made 
of or protected by materials resistant to corrosion by 
UF6, for containing vortex tubes or separation nozzles.
    Explanatory Note: These housings may be cylindrical vessels 
greater than 300 mm in diameter and greater than 900 mm in length, 
or may be rectangular vessels of comparable dimensions, and may be 
designed for horizontal or vertical installation.

5.5.7. Feed Systems/Product and Tails Withdrawal Systems

    Specially designed or prepared process systems or equipment for 
enrichment plants made of or protected by materials resistant to 
corrosion by UF6, including:
    (a) Feed autoclaves, ovens, or systems used for passing 
UF6 to the enrichment process;
    (b) Desublimers (or cold traps) used to remove UF6 
from the enrichment process for subsequent transfer upon heating;
    (c) Solidification or liquefaction stations used to remove 
UF6 from the enrichment process by compressing and 
converting UF6 to a liquid or solid form;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

5.5.8. Header Piping Systems

    Specially designed or prepared header piping systems, made of or 
protected by materials resistant to corrosion by UF6, for 
handling UF6 within the aerodynamic cascades. This piping 
network is normally of the ``double'' header design with each stage 
or group of stages connected to each of the headers.

5.5.9. Vacuum Systems and Pumps

    (a) Specially designed or prepared vacuum systems having a 
suction capacity of 5 m3/min or more, consisting of 
vacuum manifolds, vacuum headers and vacuum pumps, and designed for 
service in UF6-bearing atmospheres;
    (b) Vacuum pumps specially designed or prepared for service in 
UF6-bearing atmospheres and made of or protected by 
materials resistant to corrosion by UF6. These pumps may 
use fluorocarbon seals and special working fluids.

5.5.10. Special Shut-off and Control Valves

    Specially designed or prepared manual or automated shut-off and 
control bellows valves made of or protected by materials resistant 
to corrosion by UF6 with a diameter of 40 to 1500 mm for 
installation in main and auxiliary systems of aerodynamic enrichment 
plants.

5.5.11. UF6 Mass Spectrometers/Ion Sources

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, 
``product'' or ``tails,'' from UF6 gas streams and having 
all of the following characteristics:
    (a) Unit resolution for mass greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel 
or nickel plated;
    (c) Electron bombardment ionization sources;
    (d) Collector system suitable for isotopic analysis.

5.5.12. UF6/Carrier Gas Separation Systems

    Specially designed or prepared process systems for separating 
UF6 from carrier gas (hydrogen or helium).
    Explanatory Note: These systems are designed to reduce the 
UF6 content in the carrier gas to 1 ppm or less and may 
incorporate equipment such as:
    (a) Cryogenic heat exchangers and cryoseparators capable of 
temperatures of -120 [deg]C or less, or
    (b) Cryogenic refrigeration units capable of temperatures of -
120 [deg]C or less, or
    (c) Separation nozzle or vortex tube units for the separation of 
UF6 from carrier gas, or
    (d) UF6 cold traps capable of temperatures of -20 
[deg]C or less.

5.6. Specially Designed or Prepared Systems, Equipment and Components 
for Use in Chemical Exchange or Ion Exchange Enrichment Plants

    Introductory Note: The slight difference in mass between the 
isotopes of uranium causes small changes in chemical reaction 
equilibria that can be used as a basis for separation of the 
isotopes. Two processes have been successfully developed: Liquid-
liquid chemical exchange and solid-liquid ion exchange. In the 
liquid-liquid chemical exchange process, immiscible liquid phases 
(aqueous and organic) are countercurrently contacted to give the 
cascading effect of thousands of separation stages. The aqueous 
phase consists of uranium chloride in hydrochloric acid solution; 
the organic phase consists of an extractant containing uranium 
chloride in an organic solvent. The contactors employed in the 
separation cascade can be liquid-liquid exchange columns (such as 
pulsed columns with sieve plates) or liquid centrifugal contactors. 
Chemical conversions (oxidation and

[[Page 43588]]

reduction) are required at both ends of the separation cascade in 
order to provide for the reflux requirements at each end. A major 
design concern is to avoid contamination of the process streams with 
certain metal ions. Plastic, plastic-lined (including use of 
fluorocarbon polymers) and/or glass-lined columns and piping are 
therefore used. In the solid-liquid ion-exchange process, enrichment 
is accomplished by uranium adsorption/desorption on a special, very 
fast-acting, ion-exchange resin or adsorbent. A solution of uranium 
in hydrochloric acid and other chemical agents is passed through 
cylindrical enrichment columns containing packed beds of the 
adsorbent. For a continuous process, a reflux system is necessary to 
release the uranium from the adsorbent back into the liquid flow so 
that ``product'' and ``tails'' can be collected. This is 
accomplished with the use of suitable reduction/oxidation chemical 
agents that are fully regenerated in separate external circuits and 
that may be partially regenerated within the isotopic separation 
columns themselves. The presence of hot concentrated hydrochloric 
acid solutions in the process requires that the equipment be made of 
or protected by special corrosion-resistant materials.

5.6.1. Liquid-Liquid Exchange Columns (Chemical Exchange)

    Countercurrent liquid-liquid exchange columns having mechanical 
power input (i.e., pulsed columns with sieve plates, reciprocating 
plate columns, and columns with internal turbine mixers), specially 
designed or prepared for uranium enrichment using the chemical 
exchange process. For corrosion resistance to concentrated 
hydrochloric acid solutions, these columns and their internals are 
made of or protected by suitable plastic materials (such as 
fluorocarbon polymers) or glass. The stage residence time of the 
columns is designed to be short (30 seconds or less).

5.6.2. Liquid-Liquid Centrifugal Contactors (Chemical Exchange)

    Liquid-liquid centrifugal contactors specially designed or 
prepared for uranium enrichment using the chemical exchange process. 
Such contactors use rotation to achieve dispersion of the organic 
and aqueous streams and then centrifugal force to separate the 
phases. For corrosion resistance to concentrated hydrochloric acid 
solutions, the contactors are made of or are lined with suitable 
plastic materials (such as fluorocarbon polymers) or are lined with 
glass. The stage residence time of the centrifugal contactors is 
designed to be short (30 seconds or less).

5.6.3. Uranium Reduction Systems and Equipment (Chemical Exchange)

    (a) Specially designed or prepared electrochemical reduction 
cells to reduce uranium from one valence state to another for 
uranium enrichment using the chemical exchange process. The cell 
materials in contact with process solutions must be corrosion 
resistant to concentrated hydrochloric acid solutions.
    Explanatory Note: The cell cathodic compartment must be designed 
to prevent re-oxidation of uranium to its higher valence state. To 
keep the uranium in the cathodic compartment, the cell may have an 
impervious diaphragm membrane constructed of special cation exchange 
material. The cathode consists of a suitable solid conductor such as 
graphite.
    (b) Specially designed or prepared systems at the product end of 
the cascade for taking the U4+ out of the organic stream, 
adjusting the acid concentration and feeding to the electrochemical 
reduction cells.
    Explanatory Note: These systems consist of solvent extraction 
equipment for stripping the U4+ from the organic stream 
into an aqueous solution, evaporation and/or other equipment to 
accomplish solution pH adjustment and control, and pumps or other 
transfer devices for feeding to the electrochemical reduction cells. 
A major design concern is to avoid contamination of the aqueous 
stream with certain metal ions. Consequently, for those parts in 
contact with the process stream, the system is constructed of 
equipment made of or protected by suitable materials (such as glass, 
fluorocarbon polymers, polyphenyl sulfate, polyether sulfone, and 
resin-impregnated graphite).

5.6.4. Feed Preparation Systems (Chemical Exchange)

    Specially designed or prepared systems for producing high-purity 
uranium chloride feed solutions for chemical exchange uranium 
isotope separation plants.
    Explanatory Note: These systems consist of dissolution, solvent 
extraction and/or ion exchange equipment for purification and 
electrolytic cells for reducing the uranium U6+ or 
U4+ to U3+. These systems produce uranium 
chloride solutions having only a few parts per million of metallic 
impurities such as chromium, iron, vanadium, molybdenum and other 
bivalent or higher multi-valent cations. Materials of construction 
for portions of the system processing high-purity U3+ 
include glass, fluorocarbon polymers, polyphenyl sulfate or 
polyether sulfone plastic-lined and resin-impregnated graphite.

5.6.5. Uranium Oxidation Systems (Chemical Exchange)

    Specially designed or prepared systems for oxidation of 
U3+ to U4+ for return to the uranium isotope 
separation cascade in the chemical exchange enrichment process.
    Explanatory Note: These systems may incorporate equipment such 
as:
    (a) Equipment for contacting chlorine and oxygen with the 
aqueous effluent from the isotope separation equipment and 
extracting the resultant U4+ into the stripped organic 
stream returning from the product end of the cascade;
    (b) Equipment that separates water from hydrochloric acid so 
that the water and the concentrated hydrochloric acid may be 
reintroduced to the process at the proper locations.

5.6.6. Fast-Reacting Ion Exchange Resins/Adsorbents (Ion Exchange)

    Fast-reacting ion-exchange resins or adsorbents specially 
designed or prepared for uranium enrichment using the ion exchange 
process, including porous macroreticular resins, and/or pellicular 
structures in which the active chemical exchange groups are limited 
to a coating on the surface of an inactive porous support structure, 
and other composite structures in any suitable form including 
particles or fibers. These ion exchange resins/adsorbents have 
diameters of 0.2 mm or less and must be chemically resistant to 
concentrated hydrochloric acid solutions as well as physically 
strong enough so as not to degrade in the exchange columns. The 
resins/adsorbents are specially designed to achieve very fast 
uranium isotope exchange kinetics (exchange rate half-time of less 
than 10 seconds) and are capable of operating at a temperature in 
the range of 100 [deg]C to 200 [deg]C.

5.6.7. Ion Exchange Columns (Ion Exchange)

    Cylindrical columns greater than 1000 mm in diameter for 
containing and supporting packed beds of ion exchange resin/
adsorbent, specially designed or prepared for uranium enrichment 
using the ion exchange process. These columns are made of or 
protected by materials (such as titanium or fluorocarbon plastics) 
resistant to corrosion by concentrated hydrochloric acid solutions 
and are capable of operating at a temperature in the range of 100 
[deg]C to 200 [deg]C and pressures above 0.7 MPa (102 psia).

5.6.8. Ion Exchange Reflux Systems (Ion Exchange)

    (a) Specially designed or prepared chemical or electrochemical 
reduction systems for regeneration of the chemical reducing agent(s) 
used in ion exchange uranium enrichment cascades.
    (b) Specially designed or prepared chemical or electrochemical 
oxidation systems for regeneration of the chemical oxidizing 
agent(s) used in ion exchange uranium enrichment cascades.
    Explanatory Note: The ion exchange enrichment process may use, 
for example, trivalent titanium (Ti3+) as a reducing 
cation in which case the reduction system would regenerate 
Ti3+ by reducing Ti4+. The process may use, 
for example, trivalent iron (Fe3+) as an oxidant in which 
case the oxidation system would regenerate Fe3+ by 
oxidizing Fe2+.

5.7. Specially Designed or Prepared Systems, Equipment and Components 
for Use in Laser-Based Enrichment Plants

    Introductory Note: Present systems for enrichment processes 
using lasers fall into two categories: Those in which the process 
medium is atomic uranium vapor and those in which the process medium 
is the vapor of a uranium compound. Common nomenclature for such 
processes include: First category--atomic vapor laser isotope 
separation (AVLIS or SILVA); second category--molecular laser 
isotope separation (MLIS or MOLIS) and chemical reaction by isotope 
selective laser activation (CRISLA). The systems, equipment and 
components for laser enrichment plants embrace:
    (a) Devices to feed uranium-metal vapor (for selective photo-
ionization) or devices to feed the vapor of a uranium compound (for 
photo-dissociation or chemical activation);
    (b) Devices to collect enriched and depleted uranium metal as 
``product'' and

[[Page 43589]]

``tails'' in the first category, and devices to collect dissociated 
or reacted compounds as ``product'' and unaffected material as 
``tails'' in the second category;
    (c) Process laser systems to selectively excite the uranium-235 
species; and
    (d) Feed preparation and product conversion equipment. The 
complexity of the spectroscopy of uranium atoms and compounds may 
require incorporation of any of a number of available laser 
technologies.
    Explanatory Note: Many of the items listed in Section 5.7 of 
this Supplement come into direct contact with uranium metal vapor or 
liquid or with process gas consisting of UF6 or a mixture 
of UF6 and other gases. All surfaces that come into 
contact with the uranium or UF6 are wholly made of or 
protected by corrosion-resistant materials. For the purposes of the 
provisions in Section 5.7 of this Supplement that relate to laser-
based enrichment items, the materials resistant to corrosion by the 
vapor or liquid of uranium metal or uranium alloys include yttria-
coated graphite and tantalum; and the materials resistant to 
corrosion by UF6 include copper, stainless steel, 
aluminum, aluminum alloys, nickel or alloys containing 60% or more 
nickel and UF6-resistant fully fluorinated hydrocarbon 
polymers.

5.7.1. Uranium Vaporization Systems (AVLIS)

    Specially designed or prepared uranium vaporization systems 
which contain high-power strip or scanning electron beam guns with a 
delivered power on the target of more than 2.5 kW/cm.

5.7.2. Liquid Uranium Metal Handling Systems (AVLIS)

    Specially designed or prepared liquid metal handling systems for 
molten uranium or uranium alloys, consisting of crucibles and 
cooling equipment for the crucibles.
    Explanatory Note: The crucibles and other parts of this system 
that come into contact with molten uranium or uranium alloys are 
made of or protected by materials of suitable corrosion and heat 
resistance. Suitable materials include tantalum, yttria-coated 
graphite, graphite coated with other rare earth oxides or mixtures 
thereof.

5.7.3. Uranium Metal ``Product'' and ``Tails'' Collector Assemblies 
(AVLIS)

    Specially designed or prepared ``product'' and ``tails'' 
collector assemblies for uranium metal in liquid or solid form.
    Explanatory Note: Components for these assemblies are made of or 
protected by materials resistant to the heat and corrosion of 
uranium metal vapor or liquid (such as yttria-coated graphite or 
tantalum) and may include pipes, valves, fittings, ``gutters,'' 
feed-throughs, heat exchangers and collector plates for magnetic, 
electrostatic or other separation methods.

5.7.4. Separator Module Housings (AVLIS)

    Specially designed or prepared cylindrical or rectangular 
vessels for containing the uranium metal vapor source, the electron 
beam gun, and the ``product'' and ``tails'' collectors.
    Explanatory Note: These housings have multiplicity of ports for 
electrical and water feed-throughs, laser beam windows, vacuum pump 
connections and instrumentation diagnostics and monitoring. They 
have provisions for opening and closure to allow refurbishment of 
internal components.

5.7.5. Supersonic Expansion Nozzles (MLIS)

    Specially designed or prepared supersonic expansion nozzles for 
cooling mixtures of UF6 and carrier gas to 150 K or less 
and which are corrosion resistant to UF6.

5.7.6. Uranium Pentafluoride Product Collectors (MLIS)

    Specially designed or prepared uranium pentafluoride 
(UF5) solid product collectors consisting of filter, 
impact, or cyclone-type collectors, or combinations thereof, and 
which are corrosion resistant to the UF5/UF6 
environment.

5.7.7. UF6/Carrier Gas Compressors (MLIS)

    Specially designed or prepared compressors for UF6/
carrier gas mixtures, designed for long term operation in a 
UF6 environment. The components of these compressors that 
come into contact with process gas are made of or protected by 
materials resistant to corrosion by UF6.

5.7.8. Rotary Shaft Seals (MLIS)

    Specially designed or prepared rotary shaft seals, with seal 
feed and seal exhaust connections, for sealing the shaft connecting 
the compressor rotor with the driver motor so as to ensure a 
reliable seal against out-leakage of process gas or in-leakage of 
air or seal gas into the inner chamber of the compressor which is 
filled with a UF6/carrier gas mixture.

5.7.9. Fluorination Systems (MLIS)

    Specially designed or prepared systems for fluorinating 
UF5 (solid) to UF6 (gas).
    Explanatory Note: These systems are designed to fluorinate the 
collected UF5 powder to UF6 for subsequent 
collection in product containers or for transfer as feed to MLIS 
units for additional enrichment. In one approach, the fluorination 
reaction may be accomplished within the isotope separation system to 
react and recover directly off the ``product'' collectors. In 
another approach, the UF5 powder may be removed/
transferred from the ``product'' collectors into a suitable reaction 
vessel (e.g., fluidized-bed reactor, screw reactor or flame tower) 
for fluorination. In both approaches, equipment for storage and 
transfer of fluorine (or other suitable fluorinating agents) and for 
collection and transfer of UF6 are used.

5.7.10. UF6 Mass Spectrometers/Ion Sources (MLIS)

    Specially designed or prepared magnetic or quadrupole mass 
spectrometers capable of taking ``on-line'' samples of feed, 
``product,'' or ``tails'' from UF6 gas streams and having 
all of the following characteristics:
    (a) Unit resolution for mass greater than 320;
    (b) Ion sources constructed of or lined with nichrome or monel 
or nickel plated;
    (c) Electron bombardment ionization sources; and
    (d) Collector system suitable for isotopic analysis.

5.7.11. Feed Systems/Product and Tails Withdrawal Systems (MLIS)

    Specially designed or prepared process systems or equipment for 
enrichment plants made of or protected by materials resistant to 
corrosion by UF6, including:
    (a) Feed autoclaves, ovens, or systems used for passing 
UF6 to the enrichment process;
    (b) Desublimers (or cold traps) used to remove UF6 
from the enrichment process for subsequent transfer upon heating;
    (c) Solidification or liquefaction stations used to remove 
UF6 from the enrichment process by compressing and 
converting UF6 to a liquid or solid form;
    (d) ``Product'' or ``tails'' stations used for transferring 
UF6 into containers.

5.7.12. UF6/Carrier Gas Separation Systems (MLIS)

    Specially designed or prepared process systems for separating 
UF6 from carrier gas. The carrier gas may be nitrogen, 
argon, or other gas.
    Explanatory Note: These systems may incorporate equipment such 
as:
    (a) Cryogenic heat exchangers or cryoseparators capable of 
temperatures of -120 [deg]C or less, or
    (b) Cryogenic refrigeration units capable of temperatures of -
120 [deg]C or less, or
    (c) UF6 cold traps capable of temperatures of -20 
[deg]C or less.

5.7.13. Laser Systems (AVLIS, MLIS and CRISLA)

    Lasers or laser systems specially designed or prepared for the 
separation of uranium isotopes.
    Explanatory Note: The laser system for the AVLIS process usually 
consists of two lasers: a copper vapor laser and a dye laser. The 
laser system for MLIS usually consists of a CO2 or 
excimer laser and a multi-pass optical cell with revolving mirrors 
at both ends. Lasers or laser systems for both processes require a 
spectrum frequency stabilizer for operation over extended periods of 
time.

5.8. Specially Designed or Prepared Systems, Equipment and Components 
for Use in Plasma Separation Enrichment Plants

    Introductory Note: In the plasma separation process, a plasma of 
uranium ions passes through an electric field tuned to the U-235 ion 
resonance frequency so that they preferentially absorb energy and 
increase the diameter of their corkscrew-like orbits. Ions with a 
large-diameter path are trapped to produce a product enriched in U-
235. The plasma, which is made by ionizing uranium vapor, is 
contained in a vacuum chamber with a high-strength magnetic field 
produced by a superconducting magnet. The main technological systems 
of the process include the uranium plasma generation system, the 
separator module with superconducting magnet and metal removal 
systems for the collection of ``product'' and ``tails.''

5.8.1. Microwave Power Sources and Antennae

    Specially designed or prepared microwave power sources and 
antennae for producing or accelerating ions and having the following 
characteristics: greater than 30 GHz

[[Page 43590]]

frequency and greater than 50 kW mean power output for ion 
production.

5.8.2. Ion Excitation Coils

    Specially designed or prepared radio frequency ion excitation 
coils for frequencies of more than 100 kHz and capable of handling 
more than 40 kW mean power.

5.8.3. Uranium Plasma Generation Systems

    Specially designed or prepared systems for the generation of 
uranium plasma, which may contain high-power strip or scanning 
electron beam guns with a delivered power on the target of more than 
2.5 kW/cm.

5.8.4. Liquid Uranium Metal Handling Systems

    Specially designed or prepared liquid metal handling systems for 
molten uranium or uranium alloys, consisting of crucibles and 
cooling equipment for the crucibles, power supply system, the ion 
source high-voltage power supply system, the vacuum system, and 
extensive chemical handling systems for recovery of product and 
cleaning/recycling of components.

5.9.1. Electromagnetic Isotope Separators

    Electromagnetic isotope separators specially designed or 
prepared for the separation of uranium isotopes, and equipment and 
components therefor, including:
    (a) Ion sources: Specially designed or prepared single or 
multiple uranium ion sources consisting of a vapor source, ionizer, 
and beam accelerator, constructed of suitable materials such as 
graphite, stainless steel, or copper, and capable of providing a 
total ion beam current of 50 mA or greater;
    (b) Ion collectors: Collector plates consisting of two or more 
slits and pockets specially designed or prepared for collection of 
enriched and depleted uranium ion beams and constructed of suitable 
materials such as graphite or stainless steel;
    (c) Vacuum housings: Specially designed or prepared vacuum 
housings for uranium electromagnetic separators, constructed of 
suitable non-magnetic materials such as stainless steel and designed 
for operation at pressures of 0.1 Pa or lower;
    Explanatory Note: The housings are specially designed to contain 
the ion sources, collector plates and water-cooled liners and have 
provision for diffusion pump connections and opening and closure for 
removal and reinstallation of these components.
    (d) Magnet pole pieces: Specially designed or prepared magnet 
pole pieces having a diameter greater than 2 m used to maintain a 
constant magnetic field within an electromagnetic isotope separator 
and to transfer the magnetic field between adjoining separators.

5.9.2. High Voltage Power Supplies

    Specially designed or prepared high-voltage power supplies for 
ion sources, having all of the following characteristics: capable of 
continuous operation, output voltage of 20,000 V or greater, output 
current of 1 A or greater, and voltage regulation of better than 
0.01% over a time period of 8 hours.

5.9.3. Magnet Power Supplies

    Specially designed or prepared high-power, direct current magnet 
power supplies having all of the following characteristics: capable 
of continuously producing a current output of 500 A or greater at a 
voltage of 100 V or greater and with a current or voltage regulation 
better than 0.01% over a period of 8 hours.

6. Plants for the Production of Heavy Water, Deuterium and Deuterium 
Compounds and Equipment Specially Designed or Prepared Therefor

    Introductory Note: Heavy water can be produced by a variety of 
processes. However, the two processes that have proven to be 
commercially viable are the water-hydrogen sulphide exchange process 
(GS process) and the ammonia-hydrogen exchange process. The GS 
process is based upon the exchange of hydrogen and deuterium between 
water and hydrogen sulphide within a series of towers which are 
operated with the top section cold and the bottom section hot. Water 
flows down the towers while the hydrogen sulphide gas circulates 
from the bottom to the top of the towers. A series of perforated 
trays are used to promote mixing between the gas and the water. 
Deuterium migrates to the water at low temperatures and to the 
hydrogen sulphide at high temperatures. Gas or water, enriched in 
deuterium, is removed from the first stage towers at the junction of 
the hot and cold sections and the process is repeated in subsequent 
stage towers. The product of the last stage, water enriched up to 
30% in deuterium, is sent to a distillation unit to produce reactor 
grade heavy water, i.e., 99.75% deuterium oxide. The ammonia-
hydrogen exchange process can extract deuterium from synthesis gas 
through contact with liquid ammonia in the presence of a catalyst. 
The synthesis gas is fed into exchange towers and to an ammonia 
converter. Inside the towers the gas flows from the bottom to the 
top while the liquid ammonia flows from the top to the bottom. The 
deuterium is stripped from the hydrogen in the synthesis gas and 
concentrated in the ammonia. The ammonia then flows into an ammonia 
cracker at the bottom of the tower while the gas flows into an 
ammonia converter at the top. Further enrichment takes place in 
subsequent stages and reactor grade heavy water is produced through 
final distillation. The synthesis gas feed can be provided by an 
ammonia plant that, in turn, can be constructed in association with 
a heavy water ammonia-hydrogen exchange plant. The ammonia-hydrogen 
exchange process can also use ordinary water as a feed source of 
deuterium. Many of the key equipment items for heavy water 
production plants using GS or the ammonia-hydrogen exchange 
processes are common to several segments of the chemical and 
petroleum industries. This is particularly so for small plants using 
the GS process. However, few of the items are available ``off-the-
shelf.'' The GS and ammonia-hydrogen processes require the handling 
of large quantities of flammable, corrosive and toxic fluids at 
elevated pressures. Accordingly, in establishing the design and 
operating standards for plants and equipment using these processes, 
careful attention to the materials selection and specifications is 
required to ensure long service life with high safety and 
reliability factors. The choice of scale is primarily a function of 
economics and need. Thus, most of the equipment items would be 
prepared according to the requirements of the customer. Finally, it 
should be noted that, in both the GS and the ammonia-hydrogen 
exchange processes, items of equipment which individually are not 
specially designed or prepared for heavy water production can be 
assembled into systems which are specially designed or prepared for 
producing heavy water. The catalyst production system used in the 
ammonia-hydrogen exchange process and water distillation systems 
used for the final concentration of heavy water to reactor-grade in 
either process are examples of such systems. The items of equipment 
which are specially designed or prepared for the production of heavy 
water utilizing either the water-hydrogen sulphide exchange process 
or the ammonia-hydrogen exchange process include the following:

6.1. Water-Hydrogen Sulphide Exchange Towers

    Exchange towers fabricated from fine carbon steel (such as ASTM 
A516) with diameters of 6 m (20 ft) to 9 m (30 ft), capable of 
operating at pressures greater than or equal to 2 MPa (300 psi) and 
with a corrosion allowance of 6 mm or greater, specially designed or 
prepared for heavy water production utilizing the water-hydrogen 
sulphide exchange process.

6.2. Blowers and Compressors

    Single stage, low head (i.e., 0.2 MPa or 30 psi) centrifugal 
blowers or compressors for hydrogen-sulphide gas circulation (i.e., 
gas containing more than 70% H2S) specially designed or 
prepared for heavy water production utilizing the water-hydrogen 
sulphide exchange process. These blowers or compressors have a 
throughput capacity greater than or equal to 56 m\3\/second (120,000 
SCFM) while operating at pressures greater than or equal to 1.8 MPa 
(260 psi) suction and have seals designed for wet H2S 
service.

6.3. Ammonia-Hydrogen Exchange Towers

    Ammonia-hydrogen exchange towers greater than or equal to 35 m 
(114.3 ft) in height with diameters of 1.5 m (4.9 ft) to 2.5 m (8.2 
ft) capable of operating at pressures greater than 15 MPa (2225 psi) 
specially designed or prepared for heavy water production utilizing 
the ammonia-hydrogen exchange process. These towers also have at 
least one flanged axial opening of the same diameter as the 
cylindrical part through which the tower internals can be inserted 
or withdrawn.

6.4. Tower Internals and Stage Pumps

    Tower internals and stage pumps specially designed or prepared 
for towers for heavy water production utilizing the ammonia-hydrogen 
exchange process. Tower internals include specially designed stage 
contactors which promote intimate gas/liquid contact. Stage pumps 
include specially designed

[[Page 43591]]

submersible pumps for circulation of liquid ammonia within a 
contacting stage internal to the stage towers.

6.5. Ammonia Crackers

    Ammonia crackers with operating pressures greater than or equal 
to 3 MPa (450 psi) specially designed or prepared for heavy water 
production utilizing the ammonia-hydrogen exchange process.

6.6. Infrared Absorption Analyzers

    Infrared absorption analyzers capable of ``on-line'' hydrogen/
deuterium ratio analysis where deuterium concentrations are equal to 
or greater than 90%.

6.7. Catalytic Burners

    Catalytic burners for the conversion of enriched deuterium gas 
into heavy water specially designed or prepared for heavy water 
production utilizing the ammonia-hydrogen exchange process.

7. Plants for the Conversion of Uranium and Equipment Specially 
Designed or Prepared Therefor

    Introductory Note: Uranium conversion plants and systems may 
perform one or more transformations from one uranium chemical 
species to another, including: conversion of uranium ore 
concentrates to UO3, conversion of UO3 to 
UO2, conversion of uranium oxides to UF4 or 
UF6, conversion of UF4 to UF6, 
conversion of UF6 to UF4, conversion of 
UF4 to uranium metal, and conversion of uranium fluorides 
to UO2. Many of the key equipment items for uranium 
conversion plants are common to several segments of the chemical 
process industry. For example, the types of equipment employed in 
these processes may include: furnaces, rotary kilns, fluidized bed 
reactors, flame tower reactors, liquid centrifuges, distillation 
columns and liquid-liquid extraction columns. However, few of the 
items are available ``off-the-shelf;'' most would be prepared 
according to the requirements and specifications of the customer. In 
some instances, special design and construction considerations are 
required to address the corrosive properties of some of the 
chemicals handled (HF, F2, ClF3, and uranium 
fluorides). Finally, it should be noted that, in all of the uranium 
conversion processes, items of equipment which individually are not 
specially designed or prepared for uranium conversion can be 
assembled into systems which are specially designed or prepared for 
use in uranium conversion.

7.1. Specially Designed or Prepared Systems for the Conversion of 
Uranium Ore concentrates to UO3

    Explanatory Note: Conversion of uranium ore concentrates to 
UO3 can be performed by first dissolving the ore in 
nitric acid and extracting purified uranyl nitrate using a solvent 
such as tributyl phosphate. Next, the uranyl nitrate is converted to 
UO3 either by concentration and denitration or by 
neutralization with gaseous ammonia to produce ammonium diuranate 
with subsequent filtering, drying, and calcining.

7.2. Specially Designed or Prepared Systems for the Conversion of 
UO3 to UF6

    Explanatory Note: Conversion of UO3 to UF6 
can be performed directly by fluorination. The process requires a 
source of fluorine gas or chlorine trifluoride.

7.3. Specially Designed or Prepared Systems for the Conversion of 
UO3 to UO2

    Explanatory Note: Conversion of UO3 to UO2 
can be performed through reduction of UO3 with cracked 
ammonia gas or hydrogen.

7.4. Specially Designed or Prepared Systems for the Conversion of 
UO2 to UF4

    Explanatory Note: Conversion of UO2 to UF4 
can be performed by reacting UO2 with hydrogen fluoride 
gas (HF) at 300-500 [deg]C.

7.5. Specially Designed or Prepared Systems for the Conversion of 
UF4 to UF6

    Explanatory Note: Conversion of UF4 to UF6 
is performed by exothermic reaction with fluorine in a tower 
reactor. UF6 is condensed from the hot effluent gases by 
passing the effluent stream through a cold trap cooled to -10 
[deg]C. The process requires a source of fluorine gas.

7.6. Specially Designed or Prepared Systems for the Conversion of 
UF4 to U Metal

    Explanatory Note: Conversion of UF4 to U metal is 
performed by reduction with magnesium (large batches) or calcium 
(small batches). The reaction is carried out at temperatures above 
the melting point of uranium (1130 [deg]C).

7.7. Specially Designed or Prepared Systems for the Conversion of 
UF6 to UO2

    Explanatory Note: Conversion of UF6 to UO2 
can be performed by one of three processes. In the first, 
UF6 is reduced and hydrolyzed to UO2 using 
hydrogen and steam. In the second, UF6 is hydrolyzed by 
solution in water, ammonia is added to precipitate ammonium 
diuranate, and the diuranate is reduced to UO2 with 
hydrogen at 820 [deg]C. In the third process, gaseous 
UF6, CO2, and NH3 are combined in 
water, precipitating ammonium uranyl carbonate. The ammonium uranyl 
carbonate is combined with steam and hydrogen at 500-600 [deg]C to 
yield UO2. UF6 to UO2 conversion is 
often performed as the first stage of a fuel fabrication plant.

7.8 Specially Designed or Prepared Systems for the Conversion of 
UF6 to UF4

    Explanatory Note: Conversion of UF6 to UF4 
is performed by reduction with hydrogen.

PART 784--COMPLEMENTARY ACCESS

Sec.
784.1 Complementary access: General information on the purpose of 
complementary access, affected locations, and the role of BIS.
784.2 Obtaining consent or warrants to conduct complementary access.
784.3 Scope and conduct of complementary access.
784.4 Notification, duration and frequency of complementary access.
784.5 Subsidiary arrangements.
784.6 Post complementary access activities.

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  784.1  Complementary access: General information on the purpose 
of complementary access, affected locations, and the role of BIS.

    (a) Overview. The Additional Protocol requires that the United 
States provide the IAEA with complementary access to locations 
specified in the U.S. declaration. The IAEA may request and be given 
complementary access to locations in the United States that are not 
included in the U.S. declaration as agreed to by the U.S. Government. 
The IAEA, upon request, will be granted complementary access to 
locations in the United States in accordance with the provisions of 
Sec.  784.3 of the APR, which describes the scope and conduct of 
complementary access.
    (b) Purposes authorized under the APR. The APR authorize the 
conduct of complementary access, at locations in the United States, for 
the following purposes:
    (1) Declared uranium hard-rock mines and ore beneficiation plants. 
Complementary access may be conducted, on a selective basis, to verify 
the absence of undeclared nuclear material and nuclear related 
activities at reportable uranium hard-rock mines and ore beneficiation 
plants (see Sec.  783.1(a)(3) of the APR).
    (2) Other locations specified in the U.S. declaration and locations 
requested by the IAEA that are not included in the U.S. declaration as 
agreed to by the U.S. Government. Complementary access may be conducted 
at other locations specified in the U.S. declaration (i.e., locations 
required to submit reports to BIS pursuant to Sec.  783.1(a)(1), 
(a)(2), or (b) of the APR), and locations requested by the IAEA and 
agreed to by the U.S. Government, to resolve questions relating to the 
correctness and completeness of the information provided in the U.S. 
declaration or to resolve inconsistencies relating to that information.
    (i) In the event that the IAEA has a question about, or identifies 
an apparent inconsistency in, information contained in the U.S. 
declaration (e.g., information based on reports submitted to BIS by one 
of these locations, pursuant to Sec.  783.1(a)(1), (a)(2), or (b) of 
the APR), the IAEA will provide the U.S. Government with an opportunity 
to clarify or resolve the question or inconsistency. The IAEA will not 
draw any conclusions about the question or

[[Page 43592]]

inconsistency, or request complementary access to a location, until the 
U.S. Government has been provided with an opportunity to clarify or 
resolve the question or inconsistency, unless the IAEA considers that a 
delay in access would prejudice the purpose for which the access is 
sought.
    (ii) Upon receipt of a request from the IAEA for clarification 
concerning information contained in the U.S. declaration, BIS will 
provide written notification to the U.S. location. The U.S. location 
must provide BIS with all of the requested information to clarify or 
resolve the question or inconsistency raised by the IAEA. Unless 
informed otherwise by BIS, the U.S. location will have 15 calendar days 
from its receipt of written notification to submit the required forms 
to BIS (see the Supplemental Information Report requirements in Sec.  
783.1(d) of the APR).
    (c) Locations subject to complementary access. All locations 
specified in the U.S. declaration and other locations requested by the 
IAEA and agreed to by the U.S. Government are subject to complementary 
access by the IAEA. In cases where access cannot be provided to 
locations specified by the IAEA, BIS may seek to provide complementary 
access to adjacent locations.
    (d) Responsibilities of BIS. As the lead U.S. Government agency and 
point of contact for organizing and facilitating complementary access 
pursuant to the APR, BIS will:
    (1) Serve as the official U.S. Government host to the IAEA 
inspection team;
    (2) Provide prior written notification to any location that is 
scheduled to undergo complementary access;
    (3) Take appropriate action to obtain an administrative warrant in 
the event that a location does not consent to complementary access;
    (4) Upon request of the location, dispatch an advance team, if time 
and other circumstances permit, to the location to provide 
administrative and logistical support for complementary access and to 
assist with preparation for such access;
    (5) Accompany the IAEA Team throughout the duration of 
complementary access;
    (6) Assist the IAEA Team with complementary access activities and 
ensure that each activity adheres to the provisions of the Additional 
Protocol and to the requirements of the APR and the Act, including the 
conditions of any warrant issued thereunder; and
    (7) Assist in the negotiation and development of a location-
specific subsidiary arrangement between the U.S. government and the 
IAEA, if appropriate (see Sec.  784.5 of the APR).

    Note to Sec.  784.1(d): BIS may invite representatives from 
other U.S. Government agencies to participate as members of the 
Advance and Host Teams for complementary access. The Host Team will 
not include employees of the Environmental Protection Agency, the 
Mine Safety and Health Administration, or the Occupational Safety 
and Health Administration of the Department of Labor.

Sec.  784.2  Obtaining consent or warrants to conduct complementary 
access.

    (a) Procedures for obtaining consent. (1) For locations specified 
in the U.S. declaration and other locations specified by the IAEA, BIS 
will seek consent pursuant to IAEA complementary access requests. In 
instances where the owner, operator, occupant or agent in charge of a 
location does not consent to such complementary access, BIS will seek 
administrative warrants as provided by the Act.
    (2) For locations specified by the IAEA where access cannot be 
provided, BIS may seek consent from an adjacent location pursuant to an 
IAEA complementary access request.
    (b) Who may give consent. The owner, operator, occupant or agent in 
charge of a location may consent to complementary access. The 
individual providing consent on behalf of the location represents that 
he or she has the authority to make this decision.
    (c) Scope of consent. (1) When the owner, operator, occupant, or 
agent in charge of a location consents to a complementary access 
request, he or she is agreeing to provide the IAEA Team with the same 
degree of access as that authorized under Sec.  784.3 of the APR. This 
includes providing access for the IAEA Team and Host Team to any area 
of the location, any item on the location, and any records that are 
necessary to comply with the APR and allow the IAEA Team to accomplish 
the purpose of complementary access, as authorized under Sec.  
784.1(b)(1) or (b)(2) of the APR, except for the following:
    (i) Information subject to the licensing jurisdiction of the 
Directorate of Defense Trade Controls (DDTC), U.S. Department of State, 
under the International Traffic in Arms Regulations (ITAR) (22 CFR 
parts 120 through 130)--see Sec.  784.3(b)(3) of the APR, which states 
that such access cannot be provided without prior U.S. Government 
authorization; and
    (ii) Activities with direct national security significance to the 
United States, or locations or information associated with such 
activities.
    (2) The Host Team Leader is responsible for determining whether or 
not the IAEA's request to obtain access to any area, building, or item, 
or to record or conduct the types of activities described in Sec.  
784.3 of the APR is consistent with the Additional Protocol and 
subsidiary arrangements to the Additional Protocol.


Sec.  784.3  Scope and conduct of complementary access.

    (a) General. IAEA complementary access shall be limited to 
accomplishing only those purposes that are appropriate to the type of 
location, as indicated in Sec.  784.1(b) of the APR and shall be 
conducted in the least intrusive manner, consistent with the effective 
and timely accomplishment of such purposes. No complementary access may 
take place without the presence of a U.S. Government Host Team. No 
information of direct national security significance shall be provided 
to the IAEA during complementary access.
    (b) Scope. This paragraph describes complementary access activities 
that are authorized under the APR.
    (1) Complementary access activities. Depending on the type of 
location accessed, the IAEA Team may:
    (i) Perform visual observation of parts or areas of the location;
    (ii) Utilize radiation detection and measurement devices;
    (iii) Utilize non-destructive measurements and sampling;
    (iv) Examine relevant records (i.e., records appropriate for the 
purpose of complementary access, as authorized under Sec.  784.1(b) of 
the APR), except that the following records may not be inspected unless 
the Host Team leader, after receiving input from representatives of the 
location and consulting with other members of the Host Team, determines 
that such access is both appropriate and necessary to achieve the 
relevant purpose described in Sec.  784.1(b)(1) or (b)(2) of the APR:
    (A) Financial data (other than production data);
    (B) Sales and marketing data (other than shipment data);
    (C) Pricing data;
    (D) Personnel data;
    (E) Patent data;
    (F) Data maintained for compliance with environmental or 
occupational health and safety regulations; or
    (G) Research data (unless the data are reported on Form AP-3 or AP-
4);
    (v) Perform location-specific environmental sampling; and

    Note to Sec.  784.3(b)(1)(v): BIS will not seek access to a 
location for location-specific environmental sampling until the 
President reports to the appropriate congressional

[[Page 43593]]

committees his determination to permit such sampling.

    (vi) Utilize other objective measures which have been demonstrated 
to be technically feasible and the use of which have been agreed to by 
the United States (``objective measures,'' as used herein, means any 
verification techniques that would be appropriate for achieving the 
official purpose of complementary access, both in terms of their 
effectiveness and limited intrusiveness).
    (2) Wide Area Environmental Sampling. In certain cases, IAEA 
inspectors may collect environmental samples (e.g., air, water, 
vegetation, soil, smears), at a location specified by the IAEA, for the 
purpose of assisting the IAEA to draw conclusions about the absence of 
undeclared nuclear material or nuclear activities over a wide area.

    Note to Sec.  784.3(b)(2): The IAEA will not seek such access 
until the use of wide-area environmental sampling and the procedural 
arrangements therefor have been approved by its Board of Governors 
and consultations have been held between the IAEA and the United 
States. BIS will not seek access to a location for wide-area 
sampling until the President reports to the appropriate 
congressional committees his determination to permit such sampling.

    (3) ITAR-controlled technology. ITAR-controlled technology shall 
not be made available to the IAEA Team without prior U.S. Government 
authorization. The owner, operator, occupant, or agent in charge of the 
location being accessed is responsible for identifying any ITAR-
controlled technology at the location to the Host Team as soon as 
practicable following the receipt of notification from BIS of 
complementary access (see Sec.  784.4(a) of the APR).
    (c) Briefing. Following the arrival of the IAEA Team and Host Team 
at a location subject to complementary access, and prior to the 
commencement of complementary access, representatives of the 
organization will provide the IAEA Team and Host Team with a briefing 
on the environmental, health, safety, and security regulations (e.g., 
regulations for protection of controlled environments within the 
location and for personal safety) that are applicable to the location 
and which must be observed. In addition, the organization's 
representatives may include in their briefing an overview of the 
location, the activities carried out at the location, and any 
administrative and logistical arrangements relevant to complementary 
access. The briefing may include the use of maps and other 
documentation deemed appropriate by the organization. The time spent 
for the briefing may not exceed one hour, and the content should be 
limited to that which relates to the purpose of complementary access. 
The briefing may also address any of the following:
    (1) Areas, buildings, and structures specific to any activities 
relevant to complementary access;
    (2) Administrative and logistical information;
    (3) Updates/revisions to reports required under the APR;
    (4) Introduction of key personnel at the location;
    (5) Location-specific subsidiary arrangement, if applicable; and
    (6) Proposed access plan to address the purpose of complementary 
access.
    (d) Visual access. The IAEA Team may visually observe areas or 
parts of the location, as agreed by the Host Team Leader, after the 
Host Team Leader has consulted with the organization's representative 
for the location.
    (e) Records review. The location must be prepared to provide the 
IAEA Team with access to all supporting materials and documentation 
used by the owner, operator, occupant, or agent in charge of the 
location to prepare reports required under the APR and to otherwise 
comply with the APR (see the records inspection and recordkeeping 
requirements in Sec. Sec.  786.1 and 786.2 of the APR) and with 
appropriate accommodations in which the IAEA Team can review these 
supporting materials and documentation. Such access will be provided in 
appropriate formats (e.g., paper copies, electronic remote access by 
computer, microfilm, or microfiche) through the Host Team to the IAEA 
Team during the complementary access period or as otherwise agreed upon 
by the IAEA Team and Host Team Leader. If the owner, operator, 
occupant, or agent in charge of the location does not have access to 
records for activities that took place under previous ownership, the 
previous owner must make such records available to the Host Team.
    (f) Managed access. As necessary, the Host Team will implement 
managed access measures (e.g., the removal of sensitive papers from 
office spaces and the shrouding of sensitive displays, stores, and 
equipment) to prevent the dissemination of proliferation sensitive 
information, to meet safety or physical protection requirements, to 
protect proprietary or commercially sensitive information, or to 
protect activities of direct national security significance to the 
United States, including information associated with such activities. 
If the IAEA Team is unable to fully achieve its inspection aims under 
the managed access measures in place, the Host Team will make every 
reasonable effort to provide alternative means to allow the IAEA Team 
to meet these aims, consistent with the purposes of complementary 
access (as described in Sec.  784.1(b) of the APR) and the requirements 
of this section. If a location-specific subsidiary arrangement applies 
(see Sec.  784.5(b) of the APR), the Host Team shall, in consultation 
with the owner, operator, occupant, or agent in charge of the location, 
implement managed access procedures consistent with the applicable 
location-specific subsidiary arrangement.
    (g) Hours of complementary access. Consistent with the provisions 
of the Additional Protocol, the Host Team will ensure, to the extent 
possible, that each complementary access is commenced, conducted, and 
concluded during ordinary business hours, but no complementary access 
shall be prohibited or otherwise disrupted from commencing, continuing 
or concluding during other hours.
    (h) Environmental, health, safety, and security regulations and 
requirements. In carrying out their activities, the IAEA Team and Host 
Team shall observe federal, state, and local environmental, health, 
safety, and security regulations and environmental, health, safety, and 
security requirements established at the location, including those for 
the protection of controlled environments within a location and for 
personal safety. To the extent practicable, any such regulations and 
requirements that may apply to the conduct of complementary access at 
the location should be set forth in the location-specific subsidiary 
arrangement (if any).
    (i) Host Team to accompany the IAEA Team. The Host Team shall 
accompany the IAEA Team, during their complementary access at the 
location, in accordance with the provisions set forth in this part of 
the APR.
    (j) Scope of authorized communications by the IAEA Team. (1) The 
United States shall permit and protect free communications between the 
IAEA Team and IAEA Headquarters and/or Regional Offices, including 
attended and unattended transmission of information generated by IAEA 
containment and/or surveillance or measurement devices. The IAEA Team 
shall have the right, through consultation with the Host Team, to make 
use of internationally established systems of direct communications.
    (2) No document, photograph or other recorded medium, or sample 
relevant to complementary access may be removed or transmitted from the 
location by the IAEA Team without the prior consent of the Host Team.

[[Page 43594]]

    (k) IAEA activities, findings, and results related to complementary 
access. (1) In accordance with the Additional Protocol, the IAEA shall 
inform the United States of:
    (i) Any activities that took place in connection with complementary 
access to a location in the United States, including any activities 
concerning questions or inconsistencies that the IAEA may have brought 
to the attention of the United States, within 60 calendar days of the 
time that the activities occurred; and
    (ii) The findings or results of any activities that took place, 
including the findings and results of activities concerning questions 
or inconsistencies that the IAEA may have brought to the attention of 
the United States, within 30 calendar days of the time that such 
findings or results were reached by the IAEA.
    (2) BIS will provide the results of complementary access to the 
owner, operator, occupant, or agent in charge of the inspected location 
to the extent practicable.


Sec.  784.4  Notification, duration and frequency of complementary 
access.

    (a) Complementary access notification. Complementary access will be 
provided only upon the issuance of a written notice by BIS to the 
owner, operator, occupant or agent in charge of the premises to be 
accessed. If BIS is unable to provide written notification to the 
owner, operator, or agent in charge, BIS may post a notice prominently 
at the location to be accessed.
    (1) Content of notice. (i) Pertinent information furnished by the 
IAEA. The notice shall include all appropriate information provided by 
the IAEA to the United States Government concerning:
    (A) The purpose of complementary access;
    (B) The basis for the selection of the location for complementary 
access;
    (C) The activities that will be carried out during complementary 
access;
    (D) The time and date that complementary access is expected to 
begin and its anticipated duration; and
    (E) The names and titles of the IAEA inspectors who will 
participate in complementary access.
    (ii) Request for location's consent to complementary access. The 
complementary access notification from BIS will request that the 
location inform BIS whether or not it will consent to complementary 
access. If a location does not agree to provide consent to 
complementary access within four hours of its receipt of the 
complementary access notification, BIS will seek an administrative 
warrant as provided in Sec.  784.2(a)(1).
    (iii) Availability of advance team from BIS. An advance team from 
BIS will be available to assist the location in preparing for 
complementary access. If the complementary access is a 24-hour advance 
notice, then the availability of an advance team may be limited. The 
location requesting advance team assistance will not be required to 
reimburse the U.S. Government for any costs associated with these 
activities. The location (in cooperation with the advance team, if 
available) will make preparations for complementary access, including 
the identification of any ITAR-controlled technology and/or national 
security information at the location (see Sec.  784.3(b)(3) of the 
APR).
    (2) Notification procedures. The following table sets forth the 
notification procedures for complementary access.

                       Table to Sec.   784.4(a)(2)
------------------------------------------------------------------------
          Activity                Agency action        Location action
------------------------------------------------------------------------
IAEA notification of          BIS will transmit     Location must inform
 complementary access.         complementary         BIS, within 4 hours
                               access notification   of its receipt of
                               via facsimile to      complementary
                               the owner,            access
                               operator, occupant,   notification,
                               or agent in charge    whether or not it:
                               of a location to     (1) Grants consent
                               ascertain whether     to complementary
                               or not the            access; and
                               location:            (2) Requests BIS
                              (1) Grants consent     advance team
                               to complementary      support (subject to
                               access; and.          availability) to
                              (2) Requests BIS       prepare for
                               advance team          complementary
                               support (subject to   access. Location
                               availability) in      not required to
                               preparing for         reimburse U.S.
                               complementary         Government for
                               access.               assistance from the
                                                     BIS advance team.
                              If the location does
                               not inform BIS of
                               its consent to
                               complementary
                               access, within 4
                               hours of the time
                               it receives
                               notification from
                               BIS, BIS will seek
                               an administrative
                               warrant.
Preparation for               If a BIS advance      The location will
 complementary access.         team has been         engage in
                               requested and is      activities that
                               available, it will    will prepare the
                               arrive at the         location for
                               location to be        complementary
                               accessed and assist   access (e.g.,
                               the location in       identifying any
                               making logistical     ITAR-controlled
                               and administrative    technology or
                               preparations for      national security
                               complementary         information at the
                               access.               location), either
                                                     singularly or in
                                                     cooperation with a
                                                     BIS advance team if
                                                     one has been
                                                     requested and is
                                                     available.
------------------------------------------------------------------------

    (3) Timing of notification. In accordance with the Additional 
Protocol, the IAEA shall notify the United States Government of a 
complementary access request not less than 24 hours prior to the 
arrival of the IAEA Team at the location. BIS will provide written 
notice to the owner, operator, occupant or agent in charge of the 
location as soon as possible after BIS has received notification from 
the IAEA.
    (b) Duration of complementary access. The duration of complementary 
access will depend upon the nature of the complementary access request 
and the activities that will be conducted at the location. (See Sec.  
784.3(b) of the APR for a description of the types of complementary 
access activities authorized under the APR.)


Sec.  784.5  Subsidiary arrangements.

    (a) General subsidiary arrangement. The United States Government 
may conclude a general subsidiary arrangement with the IAEA that 
governs complementary access activities, irrespective of the location 
(i.e., an arrangement that is not location-specific).
    (b) Location-specific subsidiary arrangement--(1) Purpose. If 
requested by the location or deemed necessary by the U.S. Government, 
the U.S. Government will negotiate a location-specific subsidiary 
arrangement with the IAEA. The purpose of such an arrangement is to 
establish procedures for conducting managed access at a specific 
declared location. If the location requests, it may participate in 
preparations for the

[[Page 43595]]

negotiation of a location-specific subsidiary arrangement with the IAEA 
and may observe the negotiations to the maximum extent practicable. The 
existence of a location-specific subsidiary arrangement does not in any 
way limit the right of the owner, operator, occupant, or agent in 
charge of the location to withhold consent to a request for 
complementary access.
    (2) Format and content. The form and content of a location-specific 
subsidiary arrangement will be determined by the IAEA and the U.S. 
Government, in consultation with the location, on a case-by-case basis.


Sec.  784.6  Post complementary access activities.

    Upon receiving the IAEA's final report on complementary access, BIS 
will forward a copy of the report to the location for its review, in 
accordance with Sec.  784.3(k)(2) of the APR. Locations may submit 
comments concerning the IAEA's final report to BIS, and BIS will 
consider them, as appropriate, when preparing its comments to the IAEA 
on the final report. BIS also will send locations a post complementary 
access letter detailing the issues that require follow-up action (see, 
for example, the Amended Report requirements in Sec.  783.2(d) of the 
APR).

PART 785--ENFORCEMENT

Sec.
785.1 Scope and definitions.
785.2 Violations of the Act subject to administrative and criminal 
enforcement proceedings.
785.3 Initiation of administrative proceedings.
785.4 Request for hearing and answer.
785.5 Representation.
785.6 Filing and service of papers other than the Notice of 
Violation and Assessment (NOVA).
785.7 Summary decision.
785.8 Discovery.
785.9 Subpoenas.
785.10 Matters protected against disclosure.
785.11 Prehearing conference.
785.12 Hearings.
785.13 Procedural stipulations.
785.14 Extension of time.
785.15 Post-hearing submissions.
785.16 Decisions.
785.17 Settlement.
785.18 Record for decision.
785.19 Payment of final assessment.
785.20 Reporting a violation.

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  785.1  Scope and definitions.

    (a) Scope. This part 785 describes the sanctions that apply to 
violations of the Act and the APR. It also establishes detailed 
administrative procedures for certain violations of the Act. Violations 
for which the statutory basis is the Act are set forth in Sec.  785.2 
of the APR. BIS investigates these violations, prepares charges, 
provides legal representation to the U.S. Government, negotiates 
settlements, and initiates and resolves proceedings. The administrative 
procedures applicable to these violations are described in Sec. Sec.  
785.3 through 785.19 of the APR.
    (b) Definitions. The following are definitions of terms as used 
only in Part 785 of the APR. For definitions of terms applicable to 
parts 781 through 799 of the APR, unless otherwise noted in this 
paragraph or elsewhere in the APR, see part 781 of the APR.
    The Act. The U.S. Additional Protocol Implementation Act of 2006 
(Pub. L. 109-401, 120 Stat. 2726 (December 18, 2006)).
    Assistant Secretary for Export Enforcement. The Assistant Secretary 
for Export Enforcement, Bureau of Industry and Security, United States 
Department of Commerce.
    Final decision. A decision or order assessing a civil penalty, or 
otherwise disposing of or dismissing a case, which is not subject to 
further administrative review, but which may be subject to collection 
proceedings or judicial review in an appropriate Federal court as 
authorized by law.
    Office of Chief Counsel. The Office of Chief Counsel for Industry 
and Security, United States Department of Commerce.
    Recommended decision. A decision of the administrative law judge in 
proceedings involving violations of Part 785 that is subject to review 
by the Secretary of Commerce, or a designated United States Government 
official.
    Report. For the purposes of Part 785 of the APR, the term 
``report'' means any report required under Parts 783 through 786 of the 
APR.
    Respondent. Any person named as the subject of a letter of intent 
to charge, a Notice of Violation and Assessment (NOVA), or order.
    Under Secretary, Bureau of Industry and Security. The Under 
Secretary, Bureau of Industry and Security, United States Department of 
Commerce.


Sec.  785.2  Violations of the Act subject to administrative and 
criminal enforcement proceedings.

    (a) Violations--(1) Refusal to permit entry or access. No person 
may willfully fail or refuse to permit entry or access, or willfully 
disrupt, delay or otherwise impede complementary access, or an entry in 
connection with complementary access, authorized by the Act.
    (2) Failure to establish or maintain records. No person may 
willfully fail or refuse to do any of the following:
    (i) Establish or maintain any record required by the Act or the 
APR;
    (ii) Submit any report, notice, or other information to the United 
States Government in accordance with the Act or the APR; or
    (iii) Permit access to or copying of any record by the United 
States Government that is related to a person's obligations under the 
Act or the APR.
    (b) Civil penalties--(1) Civil penalty for refusal to permit entry 
or access. Any person that is determined to have willfully failed or 
refused to permit entry or access, or to have willfully disrupted, 
delayed or otherwise impeded an authorized complementary access, as set 
forth in paragraph (a)(1) of this section, shall pay a civil penalty in 
an amount not to exceed $25,000 for each violation. Each day the 
violation continues constitutes a separate violation.
    (2) Civil penalty for failure to establish or maintain records. Any 
person that is determined to have willfully failed or refused to 
establish or maintain any record, submit any report or other 
information required by the Act or the APR, or permit access to or 
copying of any record related to a person's obligations under the Act 
or the APR, as set forth in paragraph (a)(2) of this section, shall pay 
a civil penalty in an amount not to exceed $25,000 for each violation.
    (c) Criminal penalty. Any person that is determined to have 
violated the Act by willfully failing or refusing to permit entry or 
access authorized by the Act; by willfully disrupting, delaying or 
otherwise impeding complementary access authorized by the Act; or by 
willfully failing or refusing to establish or maintain any required 
record, submit any required report or other information, or permit 
access to or copying of any record related to a person's obligations 
under the Act or the APR, as set forth in paragraph (a) of this 
section, shall, in addition to or in lieu of any civil penalty that may 
be imposed, be fined under Title 18 of the United States Code, be 
imprisoned for not more than five years, or both.


Sec.  785.3  Initiation of administrative proceedings.

    (a) Issuance of a Notice of Violation and Assessment (NOVA). Prior 
to the initiation of an administrative proceeding through issuance of a 
NOVA, the Bureau of Industry and Security will issue a letter of intent 
to charge. The letter of intent to charge will advise a respondent that 
BIS has

[[Page 43596]]

conducted an investigation. The letter will give the respondent a 
specified period of time to contact BIS to discuss settlement of the 
allegations set forth in the letter of intent to charge. If the 
respondent does not contact BIS in the time period specified in the 
letter of intent to charge, the Director of the Office of Export 
Enforcement, or such other Department of Commerce representative 
designated by the Assistant Secretary for Export Enforcement, may 
initiate an administrative enforcement proceeding under this Sec.  
785.3 by issuing a NOVA.
    (b) Content of a NOVA. The NOVA shall constitute a formal complaint 
and will set forth the alleged violation(s) and the essential facts 
with respect to the alleged violation(s), reference the relevant 
statutory, regulatory or other provisions, and state the maximum amount 
of the civil penalty that could be assessed. The NOVA also will inform 
the respondent of the requirement to request a hearing pursuant to 
Sec.  785.4 of the APR.
    (c) Service of a NOVA. Service of the NOVA shall be made by 
certified mail or courier delivery with signed acknowledgment of 
receipt. The date of signed acknowledgment of receipt shall be the 
effective date of service of the NOVA. One copy of each paper shall be 
provided to each party in the delivery. BIS files the NOVA with the 
Administrative Law Judge (ALJ) at the same time that it is sent to the 
respondent. The ALJ, in turn, will place the case on its docket and 
will notify both the respondent and BIS of the docket information.


Sec.  785.4  Request for hearing and answer.

    (a) Deadline for answering the NOVA. If the respondent wishes to 
contest the NOVA issued by BIS, the respondent must submit a written 
request for a hearing to BIS within 15 business days from the date of 
service of the NOVA. If the respondent requests a hearing, the 
respondent must answer the NOVA within 30 calendar days from the date 
of the request for hearing. The request for a hearing and the 
respondent's answer to the NOVA must be filed with the Administrative 
Law Judge (ALJ), along with a copy of the NOVA, and served on the 
Office of Chief Counsel, and any other address(es) specified in the 
NOVA, in accordance with Sec.  785.6 of the APR.
    (b) Content of respondent's answer. The respondent's answer must be 
responsive to the NOVA and must fully set forth the nature of the 
respondent's defense(s). The answer must specifically admit or deny 
each separate allegation in the NOVA; if the respondent is without 
knowledge, the answer will so state and this will serve as a denial. 
Failure to deny or controvert a particular allegation will be deemed to 
be an admission of that allegation. The answer must also set forth any 
additional or new matter that the respondent contends will support a 
defense or claim of mitigation. Any defense or partial defense not 
specifically set forth in the answer shall be deemed to be waived, and 
evidence supporting that defense or partial defense may be refused, 
except for good cause shown.
    (c) English required. The request for hearing, the answer to the 
NOVA, and all other papers and documentary evidence must be submitted 
in English.
    (d) Waiver. The failure of the respondent to file a request for a 
hearing and an answer within the times prescribed in paragraph (a) of 
this section constitutes a waiver of the respondent's right to appear 
and contest the allegations set forth in the NOVA. If no hearing is 
requested and no answer is provided, a final order will be signed by 
the Secretary of Commerce, or by a designated United States Government 
official, and will constitute final agency action in the case.


Sec.  785.5  Representation.

    An individual respondent may appear, in person, or be represented 
by a duly authorized officer or employee. A partner may appear on 
behalf of a partnership, or a duly authorized officer or employee of a 
corporation may appear on behalf of the corporation. If a respondent is 
represented by counsel, counsel shall be a member in good standing of 
the bar of any State, Commonwealth or Territory of the United States, 
or of the District of Columbia, or be licensed to practice law in the 
country in which counsel resides, if not the United States. The U.S. 
Government will be represented by the Office of Chief Counsel. A 
respondent personally, or through counsel or other representative who 
has the power of attorney to represent the respondent, shall file a 
notice of appearance with the ALJ, or, in cases where settlement 
negotiations occur before any filing with the ALJ, with the Office of 
Chief Counsel.


Sec.  785.6  Filing and service of papers other than the Notice of 
Violation and Assessment (NOVA).

    (a) Filing. All papers to be filed with the ALJ shall be addressed 
to ``Additional Protocol Administrative Enforcement Proceedings,'' at 
the address set forth in the NOVA, or such other place as the ALJ may 
designate. Filing by United States certified mail, by express or 
equivalent parcel delivery service, via facsimile, or by hand delivery 
is acceptable. Filing from a foreign country shall be by airmail, via 
facsimile, or by express or equivalent parcel delivery service. A copy 
of each paper filed shall be simultaneously served on all parties.
    (b) Service. Service shall be made by United States certified mail, 
by express or equivalent parcel delivery service, via facsimile, or by 
hand delivery of one copy of each paper to each party in the 
proceeding. Service on the government party in all proceedings shall be 
addressed to Office of Chief Counsel for Industry and Security, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., Room 
H-3839, Washington, DC 20230, or sent via facsimile to (202) 482-0085. 
Service on a respondent shall be to the address to which the NOVA was 
sent, or to such other address as the respondent may provide. When a 
party has appeared by counsel or other representative, service on 
counsel or other representative shall constitute service on that party.
    (c) Date. The date of filing or service is the day when the papers 
are deposited in the mail or are delivered in person, by delivery 
service, or by facsimile. Refusal by the person to be served, or by the 
person's agent or attorney, of service of a document or other paper 
will be considered effective service of the document or other paper as 
of the date of such refusal.
    (d) Certificate of service. A certificate of service signed by the 
party making service, stating the date and manner of service, shall 
accompany every paper, other than the NOVA, filed and served on the 
parties.
    (e) Computation of time. In computing any period of time prescribed 
or allowed by this part, the day of the act, event, or default from 
which the designated period of time begins to run is not to be 
included. The last day of the period is to be included in the 
computation unless it is a Saturday, a Sunday, or a legal holiday (as 
defined in Rule 6(a) of the Federal Rules of Civil Procedure). In such 
instance, the period runs until the end of the next day that is neither 
a Saturday, a Sunday, nor a legal holiday. Intermediate Saturdays, 
Sundays, and legal holidays are excluded from the computation when the 
period of time prescribed or allowed is 7 days or less--there is no cap 
on the period of time to which this exclusion applies, whenever the 
period of time prescribed or allowed by this part is computed in 
business days, rather than calendar days.

[[Page 43597]]

Sec.  785.7  Summary decision.

    The ALJ may render a summary decision disposing of all or part of a 
proceeding on the motion of any party to the proceeding, provided that 
there is no genuine issue as to any material fact and the party is 
entitled to summary decision as a matter of law.


Sec.  785.8  Discovery.

    (a) General. The parties are encouraged to engage in voluntary 
discovery regarding any matter, not privileged, which is relevant to 
the subject matter of the pending proceeding. The provisions of the 
Federal Rules of Civil Procedure relating to discovery apply to the 
extent consistent with this part and except as otherwise provided by 
the ALJ or by waiver or agreement of the parties. The ALJ may make any 
order which justice requires to protect a party or person from 
annoyance, embarrassment, oppression, or undue burden or expense. These 
orders may include limitations on the scope, method, time and place of 
discovery, and provisions for protecting the confidentiality of 
classified or otherwise sensitive information, including Confidential 
Business Information (CBI) as defined by the Act.
    (b) Interrogatories and requests for admission or production of 
documents. A party may serve on any party interrogatories, requests for 
admission, or requests for production of documents for inspection and 
copying, and a party may apply to the ALJ for such enforcement or 
protective order as that party deems warranted with respect to such 
discovery. The service of a discovery request shall be made at least 30 
calendar days before the scheduled date of the hearing unless the ALJ 
specifies a shorter time period. Copies of interrogatories, requests 
for admission and requests for production of documents and responses 
thereto shall be served on all parties and a copy of the certificate of 
service shall be filed with the ALJ at least 5 business days before the 
scheduled date of the hearing. Matters of fact or law of which 
admission is requested shall be deemed admitted unless, within a period 
designated in the request (at least 10 business days after service, or 
within such additional time as the ALJ may allow), the party to whom 
the request is directed serves upon the requesting party a sworn 
statement either denying specifically the matters of which admission is 
requested or setting forth in detail the reasons why the party to whom 
the request is directed cannot either admit or deny such matters.
    (c) Depositions. Upon application of a party and for good cause 
shown, the ALJ may order the taking of the testimony of any person by 
deposition and the production of specified documents or materials by 
the person at the deposition. The application shall state the purpose 
of the deposition and set forth the facts sought to be established 
through the deposition.
    (d) Enforcement. The ALJ may order a party to answer designated 
questions, to produce specified documents or things or to take any 
other action in response to a proper discovery request. If a party does 
not comply with such an order, the ALJ may make a determination or 
enter any order in the proceeding as the ALJ deems reasonable and 
appropriate. The ALJ may strike related charges or defenses in whole or 
in part or may take particular facts relating to the discovery request 
to which the party failed or refused to respond as being established 
for purposes of the proceeding in accordance with the contentions of 
the party seeking discovery. In addition, enforcement by any district 
court of the United States in which venue is proper may be sought as 
appropriate.


Sec.  785.9  Subpoenas.

    (a) Issuance. Upon the application of any party, supported by a 
satisfactory showing that there is substantial reason to believe that 
the evidence would not otherwise be available, the ALJ may issue 
subpoenas to any person requiring the attendance and testimony of 
witnesses and the production of such books, records or other 
documentary or physical evidence for the purpose of the hearing, as the 
ALJ deems relevant and material to the proceedings, and reasonable in 
scope. Witnesses shall be paid the same fees and mileage that are paid 
to witnesses in the courts of the United States. In case of contempt, 
challenge or refusal to obey a subpoena served upon any person pursuant 
to this paragraph, any district court of the United States, in which 
venue is proper, has jurisdiction to issue an order requiring any such 
person to comply with a subpoena. Any failure to obey an order of the 
court is punishable by the court as a contempt thereof.
    (b) Service. Subpoenas issued by the ALJ may be served by any of 
the methods set forth in Sec.  785.6(b) of the APR.
    (c) Timing. Applications for subpoenas must be submitted at least 
10 business days before the scheduled hearing or deposition, unless the 
ALJ determines, for good cause shown, that extraordinary circumstances 
warrant a shorter time.


Sec.  785.10  Matters protected against disclosure.

    (a) Protective measures. The ALJ may limit discovery or 
introduction of evidence or issue such protective or other orders as in 
the ALJ's judgment may be needed to prevent undue disclosure of 
classified or sensitive documents or information. Where the ALJ 
determines that documents containing classified or sensitive matter 
must be made available to a party in order to avoid prejudice, the ALJ 
may direct the other party to prepare an unclassified and nonsensitive 
summary or extract of the documents. The ALJ may compare the extract or 
summary with the original to ensure that it is supported by the source 
document and that it omits only so much as must remain undisclosed. The 
summary or extract may be admitted as evidence in the record.
    (b) Arrangements for access. If the ALJ determines that the summary 
procedure outlined in paragraph (a) of this section is unsatisfactory, 
and that classified or otherwise sensitive matter must form part of the 
record in order to avoid prejudice to a party, the ALJ may provide the 
parties with the opportunity to make arrangements that permit a party 
or a representative to have access to such matter without compromising 
sensitive information. Such arrangements may include obtaining security 
clearances or giving counsel for a party access to sensitive 
information and documents subject to assurances against further 
disclosure, including a protective order, if necessary.


Sec.  785.11  Prehearing conference.

    (a) On the ALJ's own motion, or on request of a party, the ALJ may 
direct the parties to participate in a prehearing conference, either in 
person or by telephone, to consider:
    (1) Simplification of issues;
    (2) The necessity or desirability of amendments to pleadings;
    (3) Obtaining stipulations of fact and of documents to avoid 
unnecessary proof; or
    (4) Such other matters as may expedite the disposition of the 
proceedings.
    (b) The ALJ may order the conference proceedings to be recorded 
electronically or taken by a reporter, transcribed and filed with the 
ALJ.
    (c) If a prehearing conference is impracticable, the ALJ may direct 
the parties to correspond with the ALJ to achieve the purposes of such 
a conference.
    (d) The ALJ will prepare a summary of any actions agreed on or 
taken pursuant to this section.

[[Page 43598]]

    The summary will include any written stipulations or agreements 
made by the parties.


Sec.  785.12  Hearings.

    (a) Scheduling. Upon receipt of a valid request for a hearing, the 
ALJ shall, by agreement with all the parties or upon notice to all 
parties of at least 30 calendar days from the date of receipt of a 
request for a hearing, schedule a hearing. All hearings will be held in 
Washington, DC, unless the ALJ determines, for good cause shown, that 
another location would better serve the interest of justice.
    (b) Hearing procedure. Hearings will be conducted in a fair and 
impartial manner by the ALJ. All hearings will be closed, unless the 
ALJ for good cause shown determines otherwise. The rules of evidence 
prevailing in courts of law do not apply, and all evidentiary material 
deemed by the ALJ to be relevant and material to the proceeding and not 
unduly repetitious will be received and given appropriate weight, 
except that any evidence of settlement which would be excluded under 
Rule 408 of the Federal Rules of Evidence is not admissible. Witnesses 
will testify under oath or affirmation, and shall be subject to cross-
examination.
    (c) Testimony and record. (1) A verbatim record of the hearing and 
of any other oral proceedings will be taken by reporter or by 
electronic recording, and filed with the ALJ. If any party wishes to 
obtain a written copy of the transcript, that party shall pay the costs 
of transcription. The parties may share the costs if both want a 
transcript.
    (2) Upon such terms as the ALJ deems just, the ALJ may direct that 
the testimony of any person be taken by deposition and may admit an 
affidavit or report as evidence, provided that any affidavits or 
reports have been filed and served on the parties sufficiently in 
advance of the hearing to permit a party to file and serve an objection 
thereto on the grounds that it is necessary that the affiant or 
declarant testify at the hearing and be subject to cross-examination.
    (d) Failure to appear. If a party fails to appear in person or by 
counsel at a scheduled hearing, the hearing may nevertheless proceed. 
The party's failure to appear will not affect the validity of the 
hearing or any proceeding or action taken thereafter.


Sec.  785.13  Procedural stipulations.

    Unless otherwise ordered and subject to Sec.  785.14 of the APR, a 
written stipulation agreed to by all parties and filed with the ALJ 
will modify the procedures established by this part.


Sec.  785.14  Extension of time.

    The parties may extend any applicable time limitation by 
stipulation filed with the ALJ before the time limitation expires, or 
the ALJ may, on the ALJ's own initiative or upon application by any 
party, either before or after the expiration of any applicable time 
limitation, extend the time, except that the requirement that a hearing 
be demanded within 15 calendar days, and the requirement that a final 
agency decision be made within 60 calendar days, may not be modified.


Sec.  785.15  Post-hearing submissions.

    All parties shall have the opportunity to file post-hearing 
submissions that may include findings of fact and conclusions of law, 
supporting evidence and legal arguments, exceptions to the ALJ's 
rulings or to the admissibility of evidence, and orders and 
settlements.


Sec.  785.16  Decisions.

    (a) Recommended decision and order. After considering the entire 
record in the case, the ALJ will issue a recommended decision based on 
a preponderance of the evidence. The decision will include findings of 
fact, conclusions of law, and a decision based thereon as to whether 
the respondent has violated the Act. If the ALJ finds that the evidence 
of record is insufficient to sustain a finding that a violation has 
occurred with respect to one or more allegations, the ALJ shall order 
dismissal of the allegation(s) in whole or in part, as appropriate. If 
the ALJ finds that one or more violations have been committed, the ALJ 
shall issue an order imposing administrative sanctions.
    (b) Factors considered in assessing penalties. In determining the 
amount of a civil penalty, the ALJ shall take into account the nature, 
circumstances, extent and gravity of the violation(s), and, with 
respect to the respondent, the respondent's ability to pay the penalty, 
the effect of a civil penalty on the respondent's ability to continue 
to do business, the respondent's history of prior violations, and such 
other matters as justice may require.
    (c) Referral of recommended decision and order. The ALJ shall 
immediately issue and serve the recommended decision (and order, if 
appropriate) to the Office of Chief Counsel, at the address in Sec.  
785.6(b) of the APR, and to the respondent, by courier delivery or 
overnight mail. The recommended decision and order will also be 
referred to the head of the designated executive agency for final 
decision and order.
    (d) Final decision and order. The recommended decision and order 
shall become the final agency decision and order unless, within 60 
calendar days, the Secretary of Commerce, or a designated United States 
Government official, modifies or vacates it, or unless an appeal has 
been filed pursuant to paragraph (e) of this section.
    (e) Appeals. The respondent may appeal the final agency decision 
within 30 calendar days after the date of certification. Petitions for 
appeal may be filed in the Court of Appeals for the District of 
Columbia Circuit or in the Court of Appeals for the district in which 
the violation occurred.


Sec.  785.17  Settlement.

    (a) Settlements before issuance of a NOVA. When the parties have 
agreed to a settlement of the case prior to issuance of a NOVA, a 
settlement proposal consisting of a settlement agreement and order will 
be submitted to the Assistant Secretary for Export Enforcement for 
approval and signature. If the Assistant Secretary does not approve the 
proposal, he/she will notify the parties and the case will proceed as 
though no settlement proposal has been made. If the Assistant Secretary 
approves the proposal, he/she will issue an appropriate order, and no 
action will be required by the ALJ.
    (b) Settlements following issuance of a NOVA. The parties may enter 
into settlement negotiations at any time during the time a case is 
pending before the ALJ. If necessary, the parties may extend applicable 
time limitations or otherwise request that the ALJ stay the proceedings 
while settlement negotiations continue. When the parties have agreed to 
a settlement of the case, the Office of Chief Counsel will recommend 
the settlement to the Assistant Secretary for Export Enforcement, 
forwarding a proposed settlement agreement and order, which the 
Assistant Secretary will approve and sign. If a NOVA has been filed, 
the Office of Chief Counsel will send a copy of the settlement proposal 
to the ALJ.
    (c) Settlement scope. Any respondent who agrees to an order 
imposing any administrative sanction does so solely for the purpose of 
resolving the claims in the administrative enforcement proceeding 
brought under this part. The government officials involved have neither 
the authority nor the responsibility for initiating, conducting, 
settling, or otherwise disposing of criminal proceedings. That 
authority and responsibility are vested in the Attorney General and the 
Department of Justice.
    (d) Finality. Cases that are settled may not be reopened or 
appealed, absent a showing of good cause. Appeals and

[[Page 43599]]

requests to reopen settled cases must be submitted to the Assistant 
Secretary for Export Enforcement within 30 calendar days of the 
execution of a settlement agreement.


Sec.  785.18  Record for decision.

    (a) The record. The transcript of hearings, exhibits, rulings, 
orders, all papers and requests filed in the proceedings, and, for 
purposes of any appeal under Sec.  785.16 of the APR, the decision of 
the ALJ and such submissions as are provided for under Sec.  785.16 of 
the APR will constitute the record and the exclusive basis for 
decision. When a case is settled, the record will consist of any and 
all of the foregoing, as well as the NOVA or draft NOVA, settlement 
agreement, and order.
    (b) Restricted access. On the ALJ's own motion, or on the motion of 
any party, the ALJ may direct that there be a restricted access portion 
of the record for any material in the record to which public access is 
restricted by law or by the terms of a protective order entered in the 
proceedings. A party seeking to restrict access to any portion of the 
record is responsible, prior to the close of the proceeding, for 
submitting a version of the document(s) proposed for public 
availability that reflects the requested deletion. The restricted 
access portion of the record will be placed in a separate file and the 
file will be clearly marked to avoid improper disclosure and to 
identify it as a portion of the official record in the proceedings. The 
ALJ may act at any time to permit material that becomes declassified or 
unrestricted through passage of time to be transferred to the 
unrestricted access portion of the record.
    (c) Availability of documents--(1) Scope. All NOVAs and draft 
NOVAs, answers, settlement agreements, decisions and orders disposing 
of a case will be displayed on the BIS Freedom of Information Act 
(FOIA) Web site, at http://www.bis.doc.gov/foia, which is maintained by 
the Office of Administration, Bureau of Industry and Security, U.S. 
Department of Commerce. The Office of Administration does not maintain 
a separate inspection facility. The complete record for decision, as 
defined in paragraphs (a) and (b) of this section will be made 
available on request.
    (2) Timing. The record for decision will be available only after 
the final administrative disposition of a case. Parties may seek to 
restrict access to any portion of the record under paragraph (b) of 
this section.


Sec.  785.19  Payment of final assessment.

    (a) Time for payment. Full payment of the civil penalty must be 
made within 30 days of the effective date of the order or within such 
longer period of time as may be specified in the order. Payment shall 
be made in the manner specified in the NOVA.
    (b) Enforcement of order. The government party may, through the 
Attorney General, file suit in an appropriate district court if 
necessary to enforce compliance with a final order issued under the 
APR. This suit will include a claim for interest at current prevailing 
rates from the date of expiration of the 60-day period referred to in 
Sec.  785.16(d), or the date of the final order, as appropriate.
    (c) Offsets. The amount of any civil penalty imposed by a final 
order may be deducted from any sum(s) owed by the United States to a 
respondent.


Sec.  785.20  Reporting a violation.

    If a person learns that a violation of the Additional Protocol, the 
Act, or the APR has occurred or may occur, that person may notify: 
Office of Export Enforcement, Bureau of Industry and Security, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., Room 
H-4520, Washington, DC 20230; Tel: (202) 482-1208; Facsimile: (202) 
482-0964.

PART 786--RECORDS AND RECORDKEEPING

Sec.
786.1 Inspection of records.
786.2 Recordkeeping.
786.3 Destruction or disposal of records.

    Authority: Public Law 109-401, 120 Stat. 2726 (December 18, 
2006); Executive Order 13458 (February 4, 2008).


Sec.  786.1  Inspection of records.

    Upon request by BIS, you must permit access to and copying of any 
record relating to compliance with the requirements of the APR. This 
requires that you make available the equipment and, if necessary, 
knowledgeable personnel for locating, reading, and reproducing any 
record. Copies may be necessary to facilitate IAEA Team review of 
documents during complementary access. The IAEA Team may not remove 
these documents from the location without BIS authorization (see Sec.  
784.3(j)(2) of the APR).


Sec.  786.2  Recordkeeping.

    (a) Requirements. Each person and location required to submit a 
report or correspondence under Parts 782 through 784 of the APR must 
retain all supporting materials and documentation used to prepare such 
report or correspondence.
    (b) Three year retention period. All supporting materials and 
documentation required to be kept under paragraph (a) of this section 
must be retained for three years from the due date of the applicable 
report or for three years from the date of submission of the applicable 
report, whichever is later. Due dates for reports and correspondence 
are indicated in Parts 782 through 784 of the APR.
    (c) Location of records. Records retained under this section must 
be maintained at the location or must be accessible at the location for 
purposes of complementary access at the location by IAEA Teams.
    (d) Reproduction of original records. (1) You may maintain 
reproductions instead of the original records, provided all of the 
requirements of paragraph (b) of this section are met.
    (2) If you must maintain records under this part, you may use any 
photostatic, miniature photographic, micrographic, automated archival 
storage, or other process that completely, accurately, legibly and 
durably reproduces the original records (whether on paper, microfilm, 
or through electronic digital storage techniques). The process must 
meet all of the following requirements, which are applicable to all 
systems:
    (i) The system must be capable of reproducing all records on paper.
    (ii) The system must record and be able to reproduce all marks, 
information, and other characteristics of the original record, 
including both obverse and reverse sides (unless blank) of paper 
documents in legible form.
    (iii) When displayed on a viewer, monitor, or reproduced on paper, 
the records must exhibit a high degree of legibility and readability. 
For purposes of this section, legible and legibility mean the quality 
of a letter or numeral that enable the observer to identify it 
positively and quickly to the exclusion of all other letters or 
numerals. Readable and readability mean the quality of a group of 
letters or numerals being recognized as complete words or numbers.
    (iv) The system must preserve the initial image (including both 
obverse and reverse sides, unless blank, of paper documents) and record 
all changes, who made them and when they were made. This information 
must be stored in such a manner that none of it may be altered once it 
is initially recorded.
    (v) You must establish written procedures to identify the 
individuals who are responsible for the operation, use and maintenance 
of the system.

[[Page 43600]]

    (vi) You must keep a record of where, when, by whom, and on what 
equipment the records and other information were entered into the 
system.
    (3) Requirements applicable to a system based on digital images. 
For systems based on the storage of digital images, the system must 
provide accessibility to any digital image in the system. The system 
must be able to locate and reproduce all records according to the same 
criteria that would have been used to organize the records had they 
been maintained in original form.
    (4) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the records must be maintained according to an 
index of all records in the system following the same criteria that 
would have been used to organize the records had they been maintained 
in original form.


Sec.  786.3  Destruction or disposal of records.

    If BIS or any other authorized U.S. government agency makes a 
formal or informal request for a certain record or records, such record 
or records may not be destroyed or disposed of without the written 
authorization of the requesting entity.

PARTS 787-799--[RESERVED]

    Dated: July 17, 2008.
Christopher R. Wall,
Assistant Secretary for Export Administration.
 [FR Doc. E8-16815 Filed 7-24-08; 8:45 am]

BILLING CODE 3510-33-P
