ML20148H029

Forwards Undated Final Rule 10CFR110 Re Export/Import Regulations.Final Rule Revised to Conform to Commission Mods Which Require Specific License for All Imports of U Which Comes Directly or Indirectly from South Africa

ML20148H029
Person / Time
Issue date:	12/28/1986
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:	Lesar M NRC OFFICE OF ADMINISTRATION (ADM)
References
RULE-PR-110-MISC NUDOCS 8803290294
Download: ML20148H029 (13)

Text

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MPeterson JShea JBecker MEMORANDUM FOR: Michael T. Lesar, Chief Rules and Procedures Branch Division of Rules and Records Office of Administration FR0ft: James R. Shea, Director Office of International Programs

SUBJECT:

FINAL RULE TO A'4END NRC'S EXPORT / IMPORT RECULATIONS On 0ecember 18 the Comission approved with modifications the enclosed Federal Regi' ster Notice publishing a final rule amending NRC's export / import regulations in 10 CFR Part 110. The final rule has been revised by the staff to conform to the Comission's modifications which require a specific license for all imports of uranium in any form which comes directly or indirectly from South Africa for any end use. The original staff rule included only a specific. license for uranium ore and oxide from South Africa.

Please implement the Comission's action by having the final rule published in the Federal Register. The effective date of the rule is December 31, 1986, as mandated by law; therefore, it is requested that this action be handled as expeditiously as possibic.

Also enclosed are the letters to the appropriate Congressional comittees infoming them of the Comissio.n's action and the Regulatory Analysis for the PDR.

/3l James R. Shea, Director Office of International Programs

Enclosures:

1. Federal Register Notice

2. Congressional Letters

3. Regulatory Analysis 8803290294 861228 PDR PR 110 PDR m d ~

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. NUCLEAR REGULATORY COMMISSION 10 CFR Part 110 '

Imports of Uranium from South Africa

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AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

SUMMARY

The Nuclear Regulatory Commission (NRC) is amending its regulations concerning the import of uranium from South Africa under the general license.

This action is necessary to implement the provision of the Comprehensive Anti-Apartheid Act of 1986, enacted October 2,1986, which prohibits the import into the United States of uranium ore and uranium oxide produced or manufactured in South Africa. The final rule deletes the general import license with respect to the import of any uranium of South African origin, thereby precluding the import of this material unless a specific license is requested and obtained.

f, EFFECTIVE DATE: December 31, 1986. i FOR FURTHER INFORMATION CONTACT: Elaine 0. Hemby, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555,(301) 492-7984 or Joanna M. Becker, Office of the General Counsel. U.S. Nuclear Regulatory Comission, Washington, DC 20555,(301)492-7630.

l l SUPPLEMENTARY INFORMATION:

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On October 2,1986, Public Law 99-440, the Comprehensive Anti-Apartheid Act of l

1986 ("the Act"), was enacted to establish a frarr.euork to guide the efforts of the United States to help end the apartheid system in South Africa and to 4

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2 assist in the establishment of a nonracial, democr'atic form of government in that country. The Act imposes a wide range of measures against South Africa to undermine apartheid including a ban on the importation of uranium ore and oxide "producep or manufactured" in South Africa. The Treasury Department, in r

Executive Order 12571 of October 27, was delegated authority in the Executive Brancb to implement the Act's provisions on the importation of uranium (Sectior.

309(a)). The NRC, which has independent regulatory authority under the Atomic i

Energy Act over the import of uranium, must also implement provisions in its regulations to conform with the requirements of the Act and ensure that these provisions are consistent with the provisions of the Treasury Department's regulations. ,

f South Africa, as used in the Act, includes the Republic of South Africa; any territory under the administration, legal or illegal, of South Africa (including Namibia); and the "bantustans" or "homelands", to which South I.~rican blacks are assigned on the basis of ethnic 6rigin, including tne Transkei, dophuthatswana, Ciskei, and Venda.

Section 309(a) of the Act prohibits the importation into the United States of cranium ore and uranium oxide that is produced or manufactured in South Africa.

The NRC's import regulations in 10 CFR 110.27 currently permit a person to import byproduct material or univradiated saurce or special nuclear material, including uranium ore and uranium oxide, from any country under general l

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3 license if the consignee in the United States is authorized to possess the material. To implement section 309(a), the NRC is amending its regulations in fl10.27 to delate the general license with respect to the import of any uranium of South African origi person wishing to import South African origin uranium which is no longer permitted for import under the general license in 5110.27 may 3

submit a specific license request to import this material to the NRC for consideration. However, subject to further clarifications of the scope of the Act, such import license applications may be denied under existing law, including applications to import material intended for further processing in the U.S. (e.g., enrichment) and subsequent reexport to a third country.

It should also be noted that Section 303 of :he Act prohibits the import (with some exceptions not pertinent here), of any products grown, produced, manufactured by or otherwise exported by a "parastatal organization" of South Africa. A parastatal organization is defined as a. corporation, partnership or I other entity owned or controlled or subsidized by the South African Government, but not a corporation, partnership, or entity which previously received start-up assistance trom the South Airican Industrial Development Corporation but which "

i is ncw privately owned. This prohibition covers uranium in any form, as Senator '

( Lugar noted in his remarks introducing S. 2701 (132 CONG. REC. S. 9889-9898, l

daily ed. July 30,1986). The Treasury Department published regulations l implementing this section on November 19,1986 (51 F.R. 41907). The Department of State published a list of South African parastual organizations on the same<

date (5' F.R. 41912).

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Environmental Impact: Categorical Exclusion The NRC has' determined that the final rule in Part 110'is the type of action described in 10 CFR 51.22(c)(1). Therefore, neither an environmental

' impact statement nor an environmental assessment has been prepared.

Paperwork Reduction Act Statement This final rule does not contain a new or amended infcrmation collection requirement subject to the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). Existing requirements were approved by the Office of Managemont and Budget under approval number 3150-0036. '

Regulatory Analysis The Commission has prepared a regulatory analysis of this final regulation. ,

The analysis examines the costs and benefits of the regulation. The cnaljais is available for inspection in tne NRC Public Document Room,1717 H Street, NW, Washington, DC. Single copies of the analysis may be obtained from Elaine Hemby, Office of International Programs, U.S. Nuclear Regulatory Commission, Washingtor., DC 20565, telephone (301) 492-7984.

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Backfit Analysis The NRC has determined that the backfit analysis provisions in 10 CFR 50.109 do not apply to amendments to 10 CFR Part 110 because Part 110 applies only to the export and import of nuclear facilities, material, and components and does not deal with domestic facilities. Therefore, a backfit analysis.has not been prepared for this amendment.

List of Subjects in 10 CFR PART 110 Administrative practice and procedure, Classified information, Export, m'

Import, Incorporation by reference, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Penalty, Reporting and recordkeeping requirements, Scientific equipment.

Persuant to Section 309(a) of Public Law 99-440, the Atomic Energy Act of 1954, as amended, the Energy Reorganization Act of 1974, as amended, and 5 U.S.C. 552 and 553 the following amendment to 10 CFR Part 110 is published as a document subject to codification.

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i PART 110 - Export and Import of Nuclear Equipment and Material

1. The authority citation for' Part 110 is revised to read as follows: '

AUTHORITY: Secs. 51, 53, 54, 57, 63, 64, 65, 81, 82, 103, 104, 109, 111, 126, 127, 128, 129, 161, 181, 182, 183, 187, 189, 68 Stat. 929, 930,.931, 932, 933, 936, ,

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, 937, 948,.953, 954, 955, 956, asamended(42U.S.C.'2071, 2073, 2074, 2077, 2092-2095, 2111, 2112, 2133, 2134, 2139, 2139a, 2141, 2154-2158, 2201, 2231-2233, 2237, 2239); .

sec. 201, 88 Stat. 1242, as amended (42 U.S.C. 5841).

i Section 110.1(b)(2) also issued under Pub. L.96-533, i

94 Stat. 3138 (42 U.S.C. 2403). Section 110.11 also issued under sec. 122, 63 Stat. 939 (42 U.S.C. 2152) and secs. 54c. and 57d., 88 Stat. 473, 475 (42 U.S.C. 2374). '

Section 110.27 also issued under sec. 309(a), Puts. L. .- [

l Law 99-440. Section 110.50(b)(3) also issued under sec.123, 92 i Stat. 142 (42 U.S.C. 2153). Section 110.51 also issued under sec. 184. 68 Stat. 954, as amended (42 U.S.C. 2234). Section 110.52 also issued under sec. 186, 68 Stat. 955 (42

! U.S.C. 2236). Section: 110.80-110.113 also issued under 5 ll.S.C. 552, 554. Sections 110.130-113.135 also issued i

under 5 U.S.C. 553.

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7 For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C.2273);110.20-110.29,110.50,and110.120-110.129 also issued under secs. 161b and i,=-68 Stat. 948, 949, as amended (42 U.S.C.

2201(b) and (i)); and 110.53 also issued udner sec. 1610, 68 Stat. 950,-

as amended (42 U.S.C. 2201(o)).

Section 110.27 is revised to read as follows:

9110.27 Imports.

(a) Except as noted in paragraph (b) of this section, a general license

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is issued to any person to import byproduct, source, or special nuclear material if the consignee is authorized to possess the material under:

(1) A contract with the Department of Energy; (2) An exemption from licensing requirements issued by the Commission; or (3) A general or spec 1fic license issued by the Comission or a State with which the Commission has entered into an agreement under Section 274b. of the Atomic Energy Act.

(b) The general license in paragraph (a) of this section does not authorize:

(1) The import of source or special nuclear material in the form of irradiated fuel that exceeds 100 kilograms per shipment; or

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(2) The import of uranium of South African' origin in any form. 'As used in this paragraph, "South African origin" includes uranium from the Republic of South Africa; any territory under the administration, legal or illegal, of South Africa (including Namibia); and the ' bantustans" or "homelands", to which South African blacks are assigned on the basis of ethnic origin, including the Transkei, Bophuthatswana, Ciskei, and Venda.

(c) Any person importing special nuclear material under this general license shall provide advance notification of imports to the Commission as specified in f73.27 of this chapter.

Dated at Washington, DC, this day of , 1986, For the Nucicar Regulatory Commission, Samuel J. Chilk.

Secretary for the Commission.

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. 4 REGULATORY ANALYSTS AMENDMENT T0 10 CFR PART 110

1. STATEMENT OF PROBLEM The Comprehensive Anti-Apartheid Act of 1986 ("the Act"), enacted October 2,1986, prohibits the import into the United States of uranium ore and uranium oxide produced or manufactured in South Africa. The NRC has independent regulatory authority under the Atomic Energy Act over the iaport of uranium. Currently the NRC's import regulations in 10 CFR 110.27 permit a person to import byproduct material or unirradiated source or special nuclear material, including uranium ore and uranium oxide, from any country under general license if the consignee in the United States is authorized to possess the material. In order to implement the requirements of the Act, it is necessary for the NRC to amend its regulations 4 in E110.27 for the import of uranium from South Africa under general license.

2. OBJECTIVE NRC's sole objective in developing the amendment is to change NRC's regulations to conform to the requiru.ents of the Act. The revision to NRC's regulations will delete the graeral license to import uranium of South African origin in any fonn thereby precluding the import into the .

United States of uranium of South African origin under general license.

3, ALTERNATIVES There are no alternatives for achieving the stated objective.

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4. CONSEQUENCES The consequences of the specific NRC rulemaking action should be considered separately from the larger, more significant issue concerning the impact of the statute banning imports of South African-origin uranium.

NRC's rulemaking action to delete the general license to import South African origin uranium in and of itself will have only a minor impact on the public. It will mean that those persons previously using the general license provision in 5110.27 as their licensing authority would now be required to submit specific license applications to import South African origin uranium for NRC consideration. However, subject to final clarification of the scope of the Act, such applications may be denied under existing law. In this respect, NRC believes that fewer than 10 persons will be affected by this rule. The amendment will not have an adverse effect on the Cormission's responsibility for protecting the public healthandsafetyandthecobondefenseandsecurity.

The impact of the Act's uranium import ban, however, will have a substantial economic effect on those p'rivate U.S. industries that convert South African-origin uranipm oxide U308 to UF6 for enrichment purposes for use by both domestic and foreign utilities. Although the staff is unable '

to determine the exact economic impact, it is known these companies represent a $100 million industry employing over 1,000 persons, and, with l respect to just their foreign customers, over 20% of the industry's throughput of UF6 is South African-origin material. There also could be a substantial impact on Department of Energy enrichment services perfonned

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for foreign customers should the foreign users divert their conversion and enrichment contracts to other suppliers because of the ban. In the past year, DOE's enrichment contracts involving South African uranium are valued at approximately $200,000,000. The foreign users most likely to divert their services to other suppliers would be in Japan, Taiwan and >

Spain. The ban will have minimal impact on the domestic power industry which imports almost no South African uranium for domestic use.

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5. _ DECISION RATIONALE This rulemaking action relates solely to that provision of the Act (section 309(a)) which prohibits the importation of uranium ore and uranium oxide produced or manufactured in South Africa. In order for NRC's regulations to conform to the provisions of the Act, it is necessary for NRC to amend its license regulations to preclude the import of South African uranium pursuant to an NRC general import license.

6. IMPLEMENTATIO,N In accordance with the Act, Section 309(a), banning the importation of South African uranium ore and uranium oxide, will become effective on December 31, 1986.

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NUCLE AR REGUL ATORY COMMISSION

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'N m The Honorable Alan Simpson, Chairman Subcomittee on Nuclear Regulation Committee on Environment and Public Works United States Senate Washington, DC 20510 ,

Dear Mr. Chairman:

I am pleased to forward, for the information of the Subcomittee on Nuclear Regulation of the Conrnittee on Environment and Public Works, copies of a final rule amending the Commission's regulations in 10 CFR Part 110 pertaining to the importation of uranium from South Africa under a general license. This final rule is being transmitted to the Office of the Federal Register for publication.

The revision is necessary to implement Section 309 of the Comprehensive Anti-Apartheid Act of 1986, Public Law 99-440, enacted October 2, 1986. Section

' 309 of the Act prohibits the import into the United States of "uranium ore" and "uranium oxide" produced or manufactured in South Africa. The existing general license for imports permits the unrestricted import of uranium into the United States from any foreign country. The amendment deletes the general import license with respect to uranium of South African origin in any form.

The amendment is not inimical to the common dafense and security of the United States and does not constitute an unreasonable risk to the public health and safety. The amendment also is consistent with the provisions of the Atomic Energy Act of 1954, as amended by the Nuclear Non-Proliferation Act of 1978.

Further, the amendment is not inconsistent with the obligations of the United States under any treaty or international arrangement, including the Treaty on i the Non-Proliferation of Nuclear Weapons.

l Sincerely, l

l James R. Shea, Director Office of International Programs l

Enclosure:

l Notice of Rulemaking t cc: Sen. Gary Hart i

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