[Federal Register: July 25, 2008 (Volume 73, Number 144)]
[Proposed Rules]
[Page 43567-43600]
[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<EMAIL_ADDRESS>Include ``RIN 0694-
AD26'' in the subject line of the message.
     Fax:<PHONE_NUMBER>. Please alert the Regulatory Policy
Division, by calling<PHONE_NUMBER>, 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:<PHONE_NUMBER>. For
legal questions, contact Rochelle Woodard, Office of the Chief Counsel
for Industry and Security, telephone:<PHONE_NUMBER>.

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

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

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.

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

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_
<EMAIL_ADDRESS>or by fax to<PHONE_NUMBER>, 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

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

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

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)

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

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

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<PHONE_NUMBER>, e-mailed to<EMAIL_ADDRESS>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<PHONE_NUMBER>. 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<EMAIL_ADDRESS>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.

Sec.  782.6  Where to submit reports.

    Reports required by the APR must be sent via facsimile to (202)
482-1731, e-mailed to<EMAIL_ADDRESS>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:<PHONE_NUMBER>.
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.

    (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

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.

    (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.

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

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)