[Federal Register Volume 88, Number 126 (Monday, July 3, 2023)]
[Rules and Regulations]
[Pages 42615-42619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-13736]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 713

[Docket No. 230502-0117]
RIN 0694-AI54


Chemical Weapons Convention Regulations: Reducing the 
Concentration Level Above Which Mixtures Containing Schedule 2A 
Chemicals Are Subject to Declaration and Reporting Requirements

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Bureau of Industry and Security (BIS) is publishing this 
final rule to amend the Chemical Weapons Convention Regulations (CWCR) 
to reduce the concentration threshold level above which mixtures 
containing a Schedule 2A chemical are subject to the declaration 
requirements that apply to Schedule 2A chemical production, processing 
and consumption under the Chemical Weapons Convention (CWC). This final 
rule also amends the CWCR to reduce the concentration threshold level 
above which mixtures containing a Schedule 2A chemical are subject to 
the declaration and reporting requirements that apply to exports and 
imports of Schedule 2A chemicals under the CWC. These regulatory 
amendments bring the CWCR into further alignment with guidelines 
adopted by the Organization for the Prohibition of Chemical Weapons 
(OPCW) Conference of the States Parties (CSP), which established a low 
concentration limit for Schedule 2A chemicals.

DATES: This rule is effective July 3, 2023.

FOR FURTHER INFORMATION CONTACT: For questions on the CWCR requirements 
that apply to Schedule 2 chemicals (which include Schedule 2A ``Toxic 
Chemicals'' and Schedule 2B ``Precursors''), contact Erica Sunyog, 
Treaty Compliance Division, Office of Nonproliferation and Treaty 
Compliance, Bureau of Industry and Security, U.S. Department of 
Commerce, Phone: (202) 482-6237.

SUPPLEMENTARY INFORMATION: 

Background

    The Convention on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Weapons and on Their Destruction (also 
known as the Chemical Weapons Convention and, hereinafter, ``CWC'' or 
``Convention''), which entered into force on April 29, 1997, is an 
international arms control treaty that aims to eliminate an entire 
category of weapons of mass destruction by prohibiting the development, 
production, acquisition, stockpiling, retention, transfer or use of 
chemical weapons by States Parties (i.e., the countries that have 
ratified or acceded to the CWC). Under the CWC, States Parties have 
agreed to destroy any stockpiles of chemical weapons that they may 
hold, any chemical weapons production facilities that they own or 
possess, and any chemical weapons that they abandoned on the territory 
of other States Parties. The CWC established the OPCW to achieve the 
object and purpose of the Convention, to ensure the implementation of 
its provisions (including those pertaining to international 
verification of compliance), and to provide a forum for consultation 
and cooperation among the CWC States Parties. All CWC States Parties 
are members of the OPCW.
    Under the CWC, States Parties have agreed to implement a 
comprehensive data declaration, notification, and inspection regime to 
provide transparency and to verify that relevant facilities are not 
engaged in activities prohibited under the CWC. Article VI of the CWC 
and the CWC's Verification Annex set out declaration, notification, and 
inspection requirements for three categories of scheduled chemicals 
(Schedule 1, Schedule 2, and Schedule 3 chemicals) and for unscheduled 
discrete organic chemicals (i.e., carbon compounds other than oxides, 
sulfides, and metal carbonates that are not listed in Schedule 1, 
Schedule 2, or Schedule 3) when produced, processed, or consumed in 
excess of certain thresholds. The Verification Requirements for 
Schedule 2 (including Schedule 2A) chemicals are specified in Part VII 
of the Verification Annex (``Schedule 2 Regime'').
    The CWC's Annex on Chemicals identifies the criteria for listing 
chemicals in Schedule 1, Schedule 2, or Schedule 3, and lists the 
specific chemicals included on each Schedule. There are three Schedule 
2A chemicals listed in the Annex on Chemicals:
    (1) Amiton: 0,0-Diethyl S-[2-(diethylamino)ethyl] phosphorothiolate 
and corresponding alkylated or protonated salts (78-53-5);
    (2) PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene (382-
21-8); and
    (3) BZ: 3-Quinuclidinyl benzilate (6581-06-2).
    As stated in the guidelines pertaining to Schedule 2 chemicals that 
are set forth in the CWC's Annex on Chemicals, the inclusion of these 
three chemicals on Schedule 2A reflects a determination by the CWC 
States Parties that these chemicals pose ``a significant risk to the 
object and purpose of the Convention'' due to their ``lethal or 
incapacitating toxicity'' and that they are ``not produced in large 
commercial quantities for purposes not prohibited'' under the CWC. Two 
of the three chemicals (Amiton and BZ) are defense articles subject to 
the International Traffic in Arms Regulations (ITAR) (22 CFR parts 120-
130), which include registration, recordkeeping, and export and 
reexport licensing requirements that are administered by the Department 
of State. The third chemical (PFIB) is a waste product from the 
production of fluoromonomers, which are unscheduled discrete organic 
chemicals under the CWC. PFIB (including mixtures with concentrations 
well under 10%) is specified on the Commerce Control List (CCL), supp. 
no. 1 to part 774 of the Export Administration Regulations (EAR) and 
thereby subject to export license requirements administered by BIS. 
According to export data collected by BIS, exports of PFIB are minimal.
    The provisions of the CWC that affect commercial activities 
involving scheduled chemicals are implemented, pursuant to the Chemical 
Weapons Convention Implementation Act of 1998 (CWCIA) (22 U.S.C. 6701 
et seq.) and Executive Order 13128 (64 FR 34703, June 28, 1999), by the 
CWCR (15 CFR parts 710-722) and the EAR (15 CFR 742.18 and part 745). 
BIS administers both the CWCR and the EAR. BIS maintains the list of 
Schedule 2A chemicals in the CWCR (supplement no. 1 to part 713) and 
the EAR (supplement no. 1 to part 745). BIS also administers

[[Page 42616]]

the declaration, reporting, notification, and verification 
requirements, including those for Schedule 2A chemicals, that are 
described in parts 713 and 716 of the CWCR.
    The Regime for Schedule 2 Chemicals and Facilities Related to such 
Chemicals (CWC Verification Annex, Part VII), provides in paragraph 5 
that declarations ``are generally not required for mixtures containing 
a low concentration of a Schedule 2 chemical'' and are only required in 
accordance with guidelines approved by the Conference of the States 
Parties to the Convention ``in cases where the ease of recovery from 
the mixture of the Schedule 2 chemical and its total weight are deemed 
to pose a risk to the object and purpose of [the] Convention.'' Prior 
to the approval of such guidelines, the CWCIA was enacted (in October 
1998) and the CWCR were implemented (on December 30, 1999). The CWCIA 
prohibits the imposition of routine inspection or reporting 
requirements pertaining to mixtures containing a Schedule 2 chemical if 
the concentration of the Schedule 2 chemical in the mixture is less 
than 10 percent (see 22 U.S.C. Chapter 75, section 6742(a)(1)). Prior 
to the issuance of this rule, the CWCR required that the calculation of 
the quantity of any single Schedule 2 chemical that was produced, 
processed, or consumed also include the quantities produced, processed 
or consumed in mixtures when the concentration of the Schedule 2 
chemical in the mixture was 30% or more by volume or by weight, 
whichever yielded the lesser percentage (15 CFR 713.2(a)(3)).
    Nearly ten years following the enactment of the CWCIA, at the 
Fourteenth Session of the CSP (November 30-December 4, 2009), the 
States Parties adopted guidelines regarding low-concentration limits, 
detailed in document ``Decision C-14/DEC.4'' (``OPCW Guidelines''), for 
Schedule 2A chemicals. These guidelines provide that declarations are 
not required under Part VII of the Verification Annex for a chemical 
mixture containing a Schedule 2A chemical, if the concentration of the 
Schedule 2A chemical in the mixture is:
    (1) 1% or less; or
    (2) More than 1%, but less than or equal to 10%, provided that the 
annual amount of the Schedule 2A chemical produced, processed or 
consumed is less than the relevant verification threshold, which is ten 
times the relevant declaration threshold.
    This final rule accordingly amends part 713 of the CWCR by reducing 
the concentration threshold level above which mixtures containing a 
Schedule 2A chemical are counted toward the declaration and reporting 
requirements described in the CWCR. This change makes the Schedule 2A 
mixture concentration threshold consistent with the OPCW Guidelines, 
subject to the constraint imposed by the 10% low concentration 
threshold limit allowed under the CWCIA. Specifically, this final rule 
amends the CWCR to replace the previous low concentration threshold for 
mixtures containing a Schedule 2A chemical (i.e., a concentration of 
30% or more, by volume or weight) with a low concentration threshold of 
10% or more. This rule modifies only the declaration requirements under 
the CWCR for mixtures containing Schedule 2A chemicals; it does not 
modify the declaration requirements for any other chemicals or any 
requirements applicable to the three Schedule 2A chemicals under either 
the EAR or ITAR.

Amendments to Section 713.2 of the CWCR--Annual Declaration 
Requirements for Plant Sites That Produce, Process or Consume Schedule 
2 Chemicals in Excess of Specified Thresholds

    Section 713.2 of the CWCR requires submission of a declaration from 
a plant site if one or more plants at that site produced, processed or 
consumed a Schedule 2 chemical during any of the three previous 
calendar years, or anticipate doing so in the next calendar year, in 
excess of the declaration threshold (i.e., the quantity specified for 
that Schedule 2 chemical in Sec.  713.2(a)(1)(i)(A)(1) through (3) of 
the CWCR). Since the low concentration threshold for Schedule 2A 
chemicals now differs from the low concentration threshold for Schedule 
2B chemicals, this rule revises the text of the current Sec.  
713.2(a)(3)(i) and adds paragraphs (a)(3)(i)(A), specific to Schedule 
2A chemicals, and (a)(3)(i)(B), specific to Schedule 2B chemicals. 
Section 713.2(a)(3)(i)(A) reduces the low concentration threshold for 
the declaration requirements that apply to mixtures containing a 
Schedule 2A chemical from a concentration of 30% or more of the 
Schedule 2A chemical by volume or weight, whichever formula yields the 
lesser percentage, to a concentration of 10% or more of the Schedule 2A 
chemical by volume or weight, whichever yields the lesser percentage. 
To distinguish the low concentration threshold for Schedule 2B 
chemicals, which remains unchanged, from the new low concentration 
threshold for Schedule 2A chemicals, the low concentration threshold 
for the declaration requirements that apply to the production, 
processing or consumption of mixtures containing a Schedule 2B chemical 
is separately described in Sec.  713.2(a)(3)(i)(B) of the CWCR and 
remains at a concentration of 30% or more by volume or weight, 
whichever formula yields the lesser percentage.
    This rule also makes conforming changes to Sec.  713.2(a)(3)(ii) 
and (iii) of the CWCR to reflect the change described above in the low 
concentration threshold for mixtures containing Schedule 2A chemicals. 
In addition, this rule adds Notes 1 through 4 to Sec.  713.2(a)(3). 
Notes 1 and 2 provide examples of how to determine declaration and 
reporting requirements for mixtures containing a Schedule 2A chemical. 
Notes 3 and 4 contain updated versions of examples that were previously 
included in Sec.  713.2(a)(3)(iii). These examples are included as 
Notes because their purpose is to clarify the application of the 
regulatory requirements described in Sec.  713.2(a)(3).

Amendments to Section 713.3 of the CWCR--Annual Declaration and 
Reporting Requirements for Exports and Imports of Schedule 2 Chemicals

    Section 713.3 of the CWCR requires the submission of declarations 
and/or reports of exports and imports of Schedule 2 chemicals from 
declared plant sites, undeclared plant sites, and trading companies, 
along with any other persons subject to the CWCR, if such entities or 
persons exported or imported a Schedule 2 chemical in a quantity above 
the applicable threshold level, including amounts in mixtures above the 
specified low concentration level. Since the low concentration 
threshold for Schedule 2A chemicals now differs from the low 
concentration threshold for Schedule 2B chemicals, this rule revises 
the text of the current Sec.  713.3(b)(2) and adds paragraphs 
(b)(2)(i)(A), specific to Schedule 2A chemicals, and (b)(2)(i)(B), 
specific to Schedule 2B chemicals. Section 713.3(b)(2)(i)(A) reduces 
the low concentration threshold for the declaration and reporting 
requirements that apply to exports and imports of mixtures containing a 
Schedule 2A chemical from a concentration of 30% or more of the 
Schedule 2A chemical by volume or weight, whichever formula yields the 
lesser percentage, to a concentration of 10% or more of the Schedule 2A 
chemical by volume or weight, whichever formula yields the lesser 
percentage. To distinguish the low concentration threshold for Schedule 
2B chemicals, which remains

[[Page 42617]]

unchanged, from the new low concentration threshold for Schedule 2A 
chemicals, the low concentration threshold for the declaration and 
reporting requirements that apply to exports and imports of mixtures 
containing a Schedule 2B chemical is separately described in Sec.  
713.3(b)(2)(i)(B) of the CWCR and remains at a concentration of 30% or 
more by volume or weight, whichever formula yields the lesser 
percentage.
    This final rule revises Notes 1 and 2 to Sec.  713.3(b)(2) and, 
consistent with the amendments described OPCW guidelines, adds Sec.  
713.3(b)(2)(ii) and (iii) to include, respectively, the information 
that was previously contained in these two notes. As revised, the notes 
provide examples of how to determine declaration and reporting 
requirements for exports and imports of mixtures containing a Schedule 
2A chemical. New Sec.  713.3(b)(2)(ii) clarifies how to count the 
amount of a Schedule 2 chemical in a mixture (i.e., the quantity of 
each Schedule 2A or Schedule 2B chemical in a mixture must be counted, 
separately; however, the total weight of the mixture must not be 
counted). New Sec.  713.3(b)(2)(iii) includes a general reference to 
the low concentration threshold levels that are now described in Sec.  
713.3(b)(2)(i). It also clarifies that the Schedule 2A and Schedule 2B 
low concentration thresholds set forth in Sec.  713.3(b)(2)(i) apply 
only for declaration and reporting purposes under the CWCR and not for 
other purposes (e.g., determining whether the export of a mixture 
requires an End-Use Certificate or a license per the relevant 
provisions in the EAR or the ITAR).

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including: potential economic, environmental, public 
health and safety effects; distributive impacts; and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits and of reducing costs, harmonizing rules and promoting 
flexibility. This final rule has been determined to be not significant 
for purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with, a collection of information subject to the 
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.) (PRA), unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) Control Number. Although 
this rule amends the CWCR to reduce the low concentration threshold for 
mixtures containing Schedule 2A chemicals for purposes of the 
applicable declaration and reporting requirements and, in so doing, 
indirectly affects the burden imposed by certain Schedule 2A chemical 
requirements in the EAR, BIS believes that the overall increases in 
burdens associated with the following information collections will be 
minimal:
     OMB control number 0694-0091 (Chemical Weapons Convention 
Declaration and Report Handbook and Forms & Chemical Weapons Convention 
Regulations (CWCR))--this collection includes all Schedule 1, Schedule 
2, Schedule 3, and unscheduled discrete organic chemical CWCR 
declarations, reports, notifications, and on-site inspections of 
chemical facilities and carries a total burden estimate of 15,815, of 
which an estimated 762 hours pertain to the Schedule 2 (i.e., both 
Schedule 2A and Schedule 2B) declaration regime and 12,117 pertain to 
inspections across all (i.e., Schedule 1, Schedule 2, Schedule 3, and 
unscheduled discrete organic chemical) facilities;
     OMB control number 0694-0117 (Chemical Weapons Convention 
Provisions of the Export Administration Regulations (EAR))--this 
collection includes Schedule 1 chemical advance notifications and 
annual reports, Schedule 3 chemical End-Use Certificates, and exports 
of ``technology'' to produce certain Schedule 2 and Schedule 3 
chemicals and carries a total burden estimate of 53 hours.
    BIS does not expect the burden hours associated with these 
collections to change. This rule changes the declaration requirements 
only for mixtures containing between 10 and 30 percent of three 
chemicals with extremely limited commercial applications. Two of the 
three chemicals at issue (i.e., the chemical Amiton: 0,0 Diethyl S-[2-
(diethylamino) ethyl] phosphorothiolate and corresponding alkylated or 
protonated salts and the chemical BZ: 3- Quinuclidinyl benzilate) are 
defense articles subject to the export licensing jurisdiction of the 
Department of State under the ITAR. Manufacturers, exporters, and 
temporary importers of these items are therefore required to register 
under the ITAR (22 CFR122.1) and are subject to recordkeeping 
obligations under the ITAR including maintenance of records concerning 
the manufacture, acquisition, and disposition of defense articles (22 
CFR 122.5). This final rule does not impose a significant additional 
burden on companies that produce or export Amiton and BZ because the 
companies are already required to maintain sufficient records to comply 
with their recordkeeping obligations under ITAR. The third chemical 
(the chemical PFIB: 1,1,3,3,3-Pentafluoro-2(trifluoromethyl)- 1-
propene) is a byproduct of fluoromonomer production. Producers of 
fluoromonomers are already subject to the CWC declaration and 
inspection requirements for unscheduled discrete organic chemicals, 
which include regular, thorough site inspections under the procedures 
set out in Part IX of the Verification Annex to the CWC and implemented 
in part 715 of the CWCR. Consequently, BIS anticipates that this rule 
will impose few, if any, new reporting obligations on any U.S. company. 
These changes to the burden hours are within the bounds of the existing 
estimates.
    Additional information regarding these collections of information, 
including all background materials, can be found at https://www.reginfo.gov/public/do/PRAMain and using the search function to 
enter either the title of the collection or the OMB Control Number.
    3. This rule does not contain policies with federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) (APA), requiring notice of proposed rulemaking, the opportunity 
for public participation and a delay in effective date, are waived for 
good cause as unnecessary and contrary to the public interest (see 5 
U.S.C. 553(b)(B)). A delay of this rulemaking to provide an opportunity 
for public comment is unnecessary because this rule implements, to the 
extent permitted by the CWCIA, a treaty obligation. Specifically, 
paragraph 5 of Part VII of the CWC Verification Annex provides for 
declarations to be provided in accordance with guidelines adopted by 
the CSP regarding low-concentration mixtures of Schedule 2 chemicals. 
CSP Decision C-14/DEC.4 adopted such guidelines, which provide a low 
concentration limit of 1% for Schedule 2A chemicals, or 10% provided 
that the annual amount produced of the Schedule 2A chemical does not 
exceed certain specified thresholds. The decision adopting the 
guidelines further called for the States Parties, in accordance with 
their domestic legal

[[Page 42618]]

processes, to implement the guidelines as soon as practicable.
    Similarly, a delay of this rulemaking to provide notice and 
opportunity for public comment would be contrary to the public 
interest, as would a 30-day delay in effective date. In light of U.S. 
obligations under the CWC, this rule serves the public interest by 
implementing without further delay the OPCW guidelines under U.S. 
domestic law.
    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule by the APA or 
any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Accordingly, 
no regulatory flexibility analysis is required, and none has been 
prepared.

List of Subjects

15 CFR Part 713

    Chemicals, Exports, Foreign trade, Imports, Reporting and 
recordkeeping requirements.

    For the reasons stated in the preamble, part 713 of the Chemical 
Weapons Convention Regulations (15 CFR parts 710-722) is amended as 
follows:

PART 713--ACTIVITIES INVOLVING SCHEDULE 2 CHEMICALS

0
1. The authority citation for 15 CFR part 713 continues to read as 
follows:

    Authority:  22 U.S.C. 6701 et seq.; 50 U.S.C. 1601 et seq.; 50 
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 
950, as amended by E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 
200; E.O. 13128, 64 FR 36703, 3 CFR 1999 Comp., p. 199.


0
2. Amend Sec.  713.2 by revising paragraph (a)(3) to read as follows:


Sec.  713.2  Annual declaration requirements for plant sites that 
produce, process or consume Schedule 2 chemicals in excess of specified 
thresholds.

    (a) * * *
    (3) Mixtures containing a Schedule 2 chemical--(i) Mixtures that 
must be counted. When determining the total quantity of a Schedule 2 
chemical produced, processed or consumed at a plant on your plant site, 
you must count the quantity of each Schedule 2 chemical in a mixture, 
in the following circumstances:
    (A) Schedule 2A chemicals in mixtures. The concentration of each 
Schedule 2A chemical in the mixture is 10% or more by volume or weight, 
whichever yields the lesser percentage;
    (B) Schedule 2B chemicals in mixtures. The concentration of each 
Schedule 2B chemical in the mixture is 30% or more by volume or weight, 
whichever yields the lesser percentage.
    (ii) How to count the quantity of each Schedule 2 chemical in a 
mixture. You must count, separately, the quantity of each Schedule 2A 
or Schedule 2B chemical in a mixture when determining the total 
quantity of a Schedule 2 chemical produced, processed or consumed at a 
plant on your plant site. Do not count the total weight of a mixture.
    (iii) Determining declaration requirements for production, 
processing and consumption. If the total quantity of a Schedule 2 
chemical produced, processed or consumed at a plant on your plant site, 
including mixtures that contain 10% or more concentration of a Schedule 
2A chemical or 30% or more concentration of a Schedule 2B chemical, 
exceeds the applicable declaration threshold set forth in paragraphs 
(a)(1)(i)(A)(1) through (3) of this section, you have a declaration 
requirement and must separately declare each Schedule 2A or Schedule 2B 
chemical.

    Note 1 to Sec.  713.2(a)(3)--Example:  If, during the past 
calendar year, a plant on your plant site produced, processed, or 
consumed a mixture containing 130 kilograms of PFIB with a 
concentration of 12%, the total amount of PFIB produced, processed, 
or consumed at that plant for CWCR purposes would be 130 kilograms, 
which exceeds the declaration threshold of 100 kilograms for that 
Schedule 2A chemical. Consequently, you must declare 130 kilograms 
of production, processing, or consumption of PFIB at that plant site 
during the past calendar year.


    Note 2 to Sec.  713.2(a)(3)--Example:  If, during the past 
calendar year, a plant on your plant site produced, processed, or 
consumed a mixture containing 130 kilograms of PFIB with a 
concentration of 8%, the total amount of PFIB produced, processed, 
or consumed at that plant for CWCR purposes would be 0 kilograms, 
which would not trigger a declaration requirement. This outcome is 
based on the fact that the concentration of PFIB in the mixture is 
less than 10% and, for CWCR purposes would not have to be 
``counted.''


    Note 3 to Sec.  713.2(a)(3)--Example:  If, during the past 
calendar year, a plant on your plant site produced a mixture 
containing 300 kilograms of thiodiglycol with a concentration of 32% 
and also produced 800 kilograms of pure thiodiglycol, the total 
amount of thiodiglycol produced at that plant for CWCR purposes 
would be 1,100 kilograms, which exceeds the declaration threshold of 
1 metric ton for that Schedule 2B chemical. Consequently, you must 
declare production of thiodiglycol at that plant site during the 
past calendar year.


    Note 4 to Sec.  713.2(a)(3)--Example:  If, during the past 
calendar year, a plant on your plant site processed a mixture 
containing 300 kilograms of thiodiglycol with a concentration of 25% 
and also processed 800 kilograms of pure thiodiglycol, the total 
amount of thiodiglycol processed at that plant for CWCR purposes 
would be 800 kilograms and would not trigger a declaration 
requirement. This outcome is based on the fact that the 
concentration of thiodiglycol in the mixture is less than 30% and, 
therefore, would not have to be ``counted'' and added to the 800 
kilograms of pure thiodiglycol processed at that plant during the 
past calendar year.

* * * * *

0
3. Amend Sec.  713.3 by revising paragraph (b)(2) to read as follows:


Sec.  713.3  Annual declaration and reporting requirements for exports 
and imports of Schedule 2 chemicals.

* * * * *
    (b) * * *
    (2) Mixtures containing a Schedule 2 chemical--(i) Mixtures that 
must be counted. The quantity of each Schedule 2 chemical contained in 
a mixture must be counted for the declaration or reporting of an export 
or import, in the following circumstances:
    (A) Schedule 2A chemicals in mixtures. The concentration of each 
Schedule 2A chemical in the mixture is 10% or more by volume or weight, 
whichever yields the lesser percentage;
    (B) Schedule 2B chemicals in mixtures. The concentration of each 
Schedule 2B chemical in the mixture is 30% or more by volume or weight, 
whichever yields the lesser percentage.
    (ii) How to count the quantity of each Schedule 2 chemical in a 
mixture. You must count, separately, the quantity of each Schedule 2A 
or Schedule 2B chemical in a mixture when determining the total 
quantity of a Schedule 2 chemical that was exported from or imported to 
a declared plant site, or individually exported or imported, above the 
applicable threshold set forth in paragraphs (b)(1)(i) through (iii) of 
this section. Do not count the total weight of a mixture.
    (iii) Mixture concentration thresholds apply only for declaration 
and reporting purposes. The concentration thresholds for Schedule 2A 
and Schedule 2B chemical mixtures set forth in paragraph (b)(2)(i) of 
this section apply only for the declaration and reporting purposes 
described in the CWCR. These thresholds do not apply for purposes of 
determining whether the export of your mixture to a non-State Party 
requires an End-Use Certificate. Nor do they apply for purposes of 
determining whether you need to obtain an export license from BIS (see 
Sec.  742.2, Sec.  742.18 and

[[Page 42619]]

Sec.  745.2 of the Export Administration Regulations (15 CFR parts 730 
through 774)) or from the Department of State (see the International 
Traffic in Arms Regulations (22 CFR parts 120 through 130)).

    Note 1 to Sec.  713.3(b)(2)--Example:  If, during the past 
calendar year, your plant site exported or imported a mixture 
containing 3 kilograms of Amiton with a concentration of 12%, the 
total amount of Amiton exported or imported for CWCR purposes is 3 
kilograms, which exceeds the declaration threshold of 1 kilogram for 
that Schedule 2A chemical. Consequently, you must declare 3 
kilograms of export or import at that plant site during the past 
calendar year.


    Note 2 to Sec.  713.2(b)(2)--Example:  If, during the past 
calendar year, your plant site exported or imported a mixture 
containing 3 kilograms of Amiton with a concentration of 8%, the 
total amount of Amiton exported or imported for CWCR purposes would 
be 0 kilograms and would not trigger a declaration requirement. This 
outcome is based on the fact that the concentration of Amiton in the 
mixture is less than 10% and, therefore, would not have to be 
``counted.''

* * * * *

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2023-13736 Filed 6-30-23; 8:45 am]
BILLING CODE 3510-33-P


