ML23153A214

PR-110 - 58FR12999 - Export and Import of Nuclear Equipment and Material; Clarifying Amendments

ML23153A214
Person / Time
Issue date:	03/09/1993
From:	Taylor J NRC/EDO
To:
References
PR-110, 58FR12999
Download: ML23153A214 (1)

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ADAMS Template: SECY-067 DOCUMENT DATE: 03/09/1993 TITLE: PR-110 - 58FR12999 - EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL; CLARIFYING AMENDMENTS CASE

REFERENCE:

PR-110 58FR12999 KEYWORD: RULEMAKING COMMENTS Document Sensitivity: Non-sensitive - SUNSI Review Complete

STATUS OP RULEMAXING PROPOSED RULE: PR-110 OPEN ITEM (Y/N) N RULB NAME: EXPORT AND IMPORT OP NUCLEAR EQUIPMENT AND MATERIAL; CLARIFYING AMENDMENTS PROPOSED RULE FED REG CITE: 58FR12999 PROPOSED RULE PUBLICATION DATE: 03/09/93 NUMBER OP COMMENTS:

ORIGINAL DATE FOR COMMENTS: I I EXTENSION DATE: I I PINAL RULE FED. REG. CITE: 58FR12999 PINAL RULE PUBLICATION DATE: 03/09/93 NOTES OB PUBLISHED AS A PINAL RULB. PINAL RULE SIGNED BY EDO. FILE LOCATE TATUS DON Pl.

OF RULE TO PIND THE STAFF CONTACT OR VIEW THE RULEMAXING HISTORY PRESS PAGE DOWN KEY HISTORY OF THE RULE PART AFFECTED: PR-110 RULE TI:TLE: EXPORT AND I:MPORT OF NUCLEAR EQUIPMENT AND MATERI:AL; CLARIFYI:NG AMENDMENTS PROPOSED RULE PROPOSED RULE DATE PROPOSED RULE SECY PAPER: SRM DATE: I I SI:GNED BY SECRETARY: I I FINAL RULE PI:NAL RULE DATE FINAL RULE SECY PAPER: SRM DATE: I I SIGNED BY SECRETARY: 02/22/93 STAFF CONTACTS ON THE RULE CONTACTl: ELAINE O HEMBY MAIL STOP: 3-H-5 PHONE: 504-2341 CONTACT2: MAIL STOP: PHONE:

DOCKET NO. PR-110 (58FR12999}

In the Matter of EXPORT AND IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL; CLARIFYING AMENDMENTS DATE DATE OF TITLE OR DOCKETED DOCUMENT DESCRIPTION OF DOCUMENT

• 03/03/93 02/22/93 PUBLISHED AS A FINAL RULE ON 3/9/93.

04/06/93 04/05/93 REQUEST FOR A SIXTY DAY EXTENSION OF TIME SUBMITTED BY JOHN DARKE.

The United States Nuclear Elaine O. Hemby Regulatory Commission itself Office of International as sitting and the Secretary AND Programs (see 10 CFR 2. 808) of that NRC Commission Washington, D. c. 20555 Joanna M.

Attn: Docketing and Service Office of t Branch Counsel NRC

../ J;tmeR M. Taylor Executive Director of Operations Re:

U. s. Nuclear Regulatory DOCKEY°ne n ( NRC) . ,

PROPOSED RULE Pl Ztf6..

( 5f""'F /?..11-~v MarIOti FOR!!:!_ EXTENSION ~ ~

• - Writer has before him a NRC public notice (FRN) entitled: "Export and Import of Nuclear Equipment and Material; Clarifying Amendments" ,

published in the Federal Register on March 9, 1993 . Such notice is found in Vol. 58, No. 44, at pages 12999 to 13oo6 (58~2999-13oo6).

The writer received th~t public notice from the NRC on April 1, 1993 .

Such notice reads (58FR12999, 12999 column J): "Effective Date:

March 9, 1993." -

The FRN does not propose a post promulgation conment period *.

The FRN does not solicit public comment.

58FR12999, 13001 column 2 states: "Because this rulemaking involves a To"reign affairs function of the United States , the prior notice and comment provisions of the Admini strative Procedure Act do not apply, pursuant to 5 u.s.c. 553(a )(l), and good cause exists to make the amendments effective upon publicati on in the Federal Register, pursuant to 5 u.s.c. 55J(d) of that Act."

The writer wishes to comment on the subject FRN and would r equest time in which to do so. As some of the issues presented by the March 9 FRN &A-technically and legally complex, the writer respect-fully requests that a post promulgation period of 60 days be allowed . Please note that this should~ be considJed a comment on the substantive content of that no ic/J,,,,IIAfir.. ~

~ testeJJ:'~a:ke mber of Public .

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Witne Rsed Sarah Mulock Fields This fifth day of April

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NUCLEAR REGULATORY COMMISSION 10 CFR Part 110 RIN 3150 - AD64 Export and Import of Nuclear Equipment and Material; Clarifying Amendments AGENCY: Nuclear Regulatory Commission.

ACTION: Final rule.

S1J::MARY: The Nuclear Regulatory Commission (NRC) is amending its regulations pertaining to the export and import of nuclear equipment and material. The revisions clarify the Commission's licensing requirements governing the export and import of nuclear equipment and material. The final rule makes NRC's regulations consistent with the physical security guidelines in IAEA INFCIRC/225, and confonns NRC's regulations for export and import to the Solar, Wind, Water, and Geothennal Power Production Incentives Act of 1990, and U.S. Government foreign relations commitments and changing circumstances.

3/tf/'!3 EFFECTIVE DATE: (Insert date of publication in the Federal Register). The incorporation by reference of certain publications listed in the regulations 1\~rt1---

is approved by the Director of the Federal Register as of ______ . <r fj)r'

2 FOR FURTHER INFORMATION CONTACT: Elaine 0. Hemby, Office of International Programs, Nuclear Regulatory Commission, Washington, DC 20555, telephone (301) 504-2341, or Joanna M. Becker, Office of the General Counsel, Nuclear Regulatory C011111ission, Washington, DC 20555, telephone (301) 504-1740.

SUPPLEMENTARY INFORMATION:

INTRODUCTION The NRC is amending its regulations for the export and import of nuclear equipment and material in 10 CFR Part 110. Some sections are restructured and simplified to clarify the NRC's export and import licensing regulations. Some sections are amended to bring them into conformance with U.S. Government foreign relations commitments and changing circumstances, to make necessary editorial changes, and to provide additional information to aid exporters and importers. The following summary of the changes, presented in the order in which they appear, include the reasons for the changes.

Section 110.1 is clarified and expanded to provide the exporter with a better understanding of the scope of Part 110 and the jurisdictional lines between the NRC and the Department of Commerce. To correct inconsistent references, the first sentence in §110.l(a) is amended by adding the words "and §110.9" after "§110.8", as the sections that set out the nuclear equipment and material whose export is regulated by NRC, and by changing the reference "§110.9" to "§110.9a", as the section that sets out the regulations for the import of nuclear equipment and material. Paragraph (b)(l) is amended by changing "65" to "64" to correct an erroneous reference to the Atomic Energy Act.

3 In §110.1, paragraph (b)(3) is redesignated as paragraph (b)(4) and amended by adding the sentence "A uranium enrichment facility is .not a production facility.* In §110.2, the definition of "production facility" is revised by adding", other than a uranium enrichment facility,* after the words "the separation of isotopes". In §110.9a, which covers nuclear equipment and material under NRC import licensing authority, paragraph (e),

"Uranium enrichment facilities", is removed. Thus, the import of a uranium enrichment facility into the United States will not require an NRC license.

This conforms NRC's import licensing regulations under Part 110 to the "Solar, Wind, Waste, and Geothermal Power Production Incentives Act of 1990", P.L.

101-575, signed by the President on November 15, 1990. Section 5 of that law amends the Atomic Energy Act to remove a uranium enrichment facility from the definition of a "production facility" for the purposes of chapter 10, "Atomic Energy Licenses," and chapter 16, "Judicial Review and Administrative Procedure" of the Act, except with respect to the export of a uranium enrichment facility.

Footnote 1 in paragraph 110.l(b)(2) is removed and incorporated in the text as paragraph (b)(3).

In §110.2, definitions of "nuclear referral list" and "individual shipment" are added. Also, the definition of "export" is revised to clarify its meaning. After consultation with the Executive Branch, the NRC concluded

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that it would be appropriate to modify the definition of a utilization facility by changing the term "control rods" to "complete reactor control rod system" as one of the major components constituting a utilization facility.

The purpose of the change is to reflect more clearly the requirements of the Atomic Energy Act. Exports of individual control rods are more appropriately

4 treated as exports of nuclear components under section 109b of the Atomic Energy Act of 1954, as amended, rather than exports of utilization facilities.

Editorial changes also are made in the *utilization facility* definition. The reference to the Topaz II reactor system in the definition of a utilization facility is deleted because it is no longer necessary, as is the reference to the definition of utilization facility in §110.5.

Section 110.4 is clarified and updated to reflect organizational changes within the NRC and current addressees for NRC contacts. Section 110.6 is updated to reflect the current addressee for the Department of Energy contact.

Section 110.7, covering information collection requirements, is amended to include §110.20 because the section contains an information collection requirement.

The list of nuclear equipment under the NRC export licensing authority in §110.8 is restructured for clarity. For technical clarity, plants for the separation of the isotopes of lithium and lithium processing equipment are removed from paragraph (b), which covers plants for the separation of the isotopes of source material or special nuclear material, because the two technologies are different. A new paragraph is added to cover plants for the separation of the isotopes of lithium and lithium processing equipment. A new paragraph also is added to alert an exporter that some nuclear-related commodities are under the licensing authority of the Department of Commerce.

Subpart C, regarding general licenses, and subpart D, regarding specific licenses, have been combined for clarification and to emphasize the distinction between general and specific licenses. The introductory titles of subparts C and Dare incorporated. A new §110.19 is added to explain the distinction between general and specific licenses. Section 110.20 is

5 clarified and restructured, and the section headings for §§110.21-110.27, covering general licenses, are revised for clarification. Section 110.25, concerning the export of graphite under general license, is amended to alert the exporter that some exports of graphite are under the licensing authority of the Department of Connerce. Section 110.26(a) is amended to permit a person to export under general license nuclear reactor components in semifabricated form to any country listed in §110.26(a) for the purpose of undergoing final fabrication or repair for subsequent return to the United States for use in United States reactors. For simplification, footnote 2 in

§110.26(a) is removed and the countries listed in footnote 2 are added to the countries listed in §110.26(a). Portugal, which is now a EURATOM member, is added to the list of countries in §110.26(a). Section 110.27(c) is amended to direct the exporter to the definition of the term "formula quantities of strategic special nuclear material."

The list of embargoed destinations in §110.28 is amended to indicate that Kampuchea is now known as Cambodia and to add Iran, Iraq and Libya.

Iran, Iraq and Libya are removed from the restricted destination list in

§110.29. Albania, Bahrain, Kuwait, Malawi, Mozambique, Qatar, Saudi Arabia, South Africa, Tanzania, Zambia, and Zimbabwe are deleted from the list of restricted destinations in §110.29 because these countries are adherents to the Non-Proliferation Treaty (NPT). A new footnote is added to §110.29 to indicate that Argentina and Brazil will be removed from the restricted destination list following implementation of the Argentina/Brazil/lAEA full scope safeguards agreement.

6 Because subparts C and Oare combined under a revised subpart C, the heading of subpart Dis removed, and the headings of subparts E, .F, G, H, I, J, K, and Lare redesignated.

In §110.30, the section heading is revised for clarity and a new paragraph is added to indicate that a fee is assessed under 10 CFR Part 170 for filing an application with the NRC for a specific license for export or import. The fee was added to 10 CFR Part 170 in an earlier rulemaking (56 FR 31472; July 10, 1991). The July 10, 1991 final rule implements the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508), which was signed into law on November 5, 1990. The Act mandates that the NRC recover approximately 100 percent of its budget authority in Fiscal Year 1991 (FY91) and the next four years (FY1992-1995) by assessing fees for licensing services requested by applicants and through annual fees on li~enses. There is no annual fee for a general or specific export or import license. In §110.31, the section heading is changed for clarification.

The NRC has reviewed its processing of nuclear export license applications under the Atomic Energy Act of 1954, as amended, and has determined that certain classes of export license applications do not raise issues which require review by the Commissioners. Therefore, paragraphs 110.40(b)(3) and (b)(4) are amended to delegate additional authority to the NRC staff to act upon certain classes of applications without prior consultation with the Commissioners. Under the amended paragraphs, the Commissioners will no longer review a license application for an export to Canada involving heavy water or for the export to EURATOM or Japan of source material or low-enriched uranium for enrichment up to 5 percent in the isotope uranium-235. The Executive Branch has also determined that these classes of

7 export license applications do not raise issues which require review by the Executive Branch. Therefore, paragraphs 110.4l(a)(3) and (a){S) .are amended to indicate that the NRC staff will act upon these classes of applications without prior consultation with the Executive Branch. Section 110.40{a),

which states that the Commission will start the review of a license application i11111ediately after receipt, is amended to add a phrase "pursuant to the regulations in this part" indicating that the required license application 4I fee must be received before review of the application begins.

In §110.42{a), footnote 3 is redesignated as footnote 2 and is revised to clarify those items under the licensing jurisdiction of the NRC, including the reference to "control rods" which is changed to "complete reactor control rod system", as one of the major components constituting a utilization facility.

Section 110.43 concerning physical security standards is amended for clarification and simplification and to incorporate the update and recommendations contained in the IAEA document INFCIRC/225/Rev.2, December 1989.

In §110.50, the name of the NRC contact referenced in paragraph {b){3) is updated to reflect organizational changes.

In §110.70, the NRC contact and address, concerning obtaining periodic lists of applications received, are updated in paragraph (c).

In Appendix A, paragraph (3) is amended by changing the words "reactor control rods" to *complete reactor control rod system" and by adding the phrase *,including the neutron absorbing part and the support or suspension structures therefor;* after the words "reaction rate in a nuclear reactor".

8 This is being done to be consistent with the revised definition of

• utilization facility".

Corrections are made to Appendix B, which covers gas centrifuge enrichment plant components under NRC's export licensing authority, and Appendix D, which covers reprocessing plant components under NRC's export licensing authority.

Appendix Eis redesignated as Appendix G, and a new Appendix Eis added for clarification of the coverage of specially designed or prepared equipment for use in a plant for the production of heavy water, deuterium, and deuterium compounds, which are subject to NRC's licensing regulations under 10 CFR 110.8. This action will conform NRC's licensing regulations to the export control guidelines of the international Nuclear Exporters Group (the Zangger Committee), in which the United States participates. The list in Appendix E is intended to clarify administration of export controls over those items.

A new Appendix Fis added that lists the byproduct materials under the licensing jurisdiction of the NRC. This is being done to assist exporters, importers, and customs officials in determining whether a particular isotope is under the licensing authority of the NRC.

Because this rulemaking involves a foreign affairs function of the United States, the prior notice and conment provisions of the Administrative Procedure Act do not apply, pursuant to 5 U.S.C. 553(a)(l), and good cause exists to make the amendments effective upon publication in the Federal Register, pursuant to 5 U.S.C. 553(d) of that Act.

Environmental Impact: Categorical Exclusion

9 The NRC has determined that this final rule is the type of action described as a categorical exclusion under 10 CFR 51.22(c)(l). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this final rule.

Paperwork Reduction Act Statement This final rule does not contain a new or amended information 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 Management and Budget, approval numbers 3150-0036 and 3150-0027.

Regulatory Analysis The Commission has considered alternatives to as well as the costs and benefits of the final rule. There is no alternative to amending the regulations for the export and import of nuclear equipment and materials. The final rule would not result in any increase or cost to the public and is intended to clarify the current regulations to assist exporters, importers, and customs officials and to encourage the expanded use of general licences.

The foregoing constitutes the regulatory analysis for this final rule.

Regulatory Flexibility Certification As required by the Regulatory Flexibility Act (5 U.S.C. 605(b)), the Commission certifies that this final rule does not have a significant economic

10 impact on a substantial number of small entities. The effect of the final rule will be to clarify Part 110 to encourage expanded use of general licenses and to provide greater understanding of other provisions. This action will assist licensees and applicants in understanding and complying with the licensing procedures in Part 110 without increasing the economic impact on licensees and applicants.

Backfit Analysis The NRC has determined that the backfit rule, 10 CFR 50.109, does not apply to this final rule because 10 CFR Part 110 applies only to export and import of nuclear facilities, materials, and equipment. Therefore, a backfit analysis is not required for this final rule.

List of Subjects in 10 CFR Part 110 Administrative practice and procedure, Classified information, Criminal penalty, Export, Import, Incorporation by reference, Intergovernmental relations, Nuclear materials, Nuclear power plants and reactors, Reporting and recordkeeping requirements, Scientific equipment.

For the reasons set out in the preamble and under the authority of 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 NRC has adopted the following amendments to 10 CFR Part 110.

11 PART 110 - EXPORT ANO IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL

1. The authority ~itation for Part 110 is revised to read:

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, 937, 948, 953, 954, 955, 956, as amended (42 U.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); sec. 5, Pub. L. 101-575, 104 Stat. 2835 (42 U.S.C. 2243).

Sections 110.l(b)(2) and 110.l(b)(3) also issued under Pub. L. 96-92, 93 Stat. 710 (22 U.S.C. 2403). Section 110.11 also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2152) and secs. 54c and 57d., 88 Stat. 473, 475, (42 U.S.C. 2074). Section 110.27 also issued under sec. 309(a), Pub. L.99-440.

Section 110.50{b){3) also Jssued under sec. 123, 92 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). Sections 110.80-110.113 also issued under 5 U.S.C. 552, 554. Sections 110.130-110.135 also issued under 5 U.S.C. 553.

2. In §110.1, paragraphs (a), (b)(l), (2), and (3) are revised and paragraph (b){4) is added to read as follows:

§110.1 Purpose and scope.

{a) The regulations in this part prescribe licensing, enforcement, and rulemaking procedures and criteria, under the Atomic Energy Act, for the export of nuclear equipment and material, as set out in §110.8 and §110.9, and the import of nuclear equipment and material, as set out in §110.9a. This part also gives notice to all persons who knowingly provide to any licensee,

\ ' .

12 contractor, or subcontractor, components, equipment, materials, or other goods or services, that relate to a licensee's activities subject to this part, that they may be individually subject to NRC enforcement action for violation of

§110.7b.

(b) * * *

(1) The Departments of Defense and Energy for activities authorized by sections 54, 64, 82, and 9) of the Atomic Energy Act, except when the

• Department of Energy seeks an export license under section 111 of the Atomic Energy Act; (2) Persons who export uranium depleted in the isotope 235 and incorporated in defense articles or convnodities solely to take advantage of high density or pyrophoric characteristics. These persons are subject to the controls of the Department of State and the Department of Convnerce under the Arms Export Control Act and the Export Administration Act, as authorized by section 110 of the International Security and Development Cooperation Act of 1980; (3) Persons who export nuclear referral list convnodities subject to the licensing authority of the* Department of Convnerce pursuant to 15 CFR Part 799, such as bulk zirconium, plants for the conversion of uranium hexafluoride, rotor and bellows equipment, maraging steel, nuclear reactor related equipment, including process control systems and simulators; and (4) Persons who import deuterium, nuclear grade graphite, or nuclear equipment other than production or utilization facilities. A uranium enrichment facility is not a production facility.

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3. In §110.2, definitions for Individual shipment and Nuclear referral lill are added, and the definitions for Export, Production facility. and Utilization facilitv are revised to read as follows:

§110.2 Definitions.

Export means to physically transfer nuclear equipment or material to a person or an international organization in a foreign country, except DOE

• distributions as authorized in Section 111 of the Atomic Energy Act or Section 110 of the International Security and Development Cooperation Act of 1980.

Individual shipment means a shipment consisting of one lot of freight tendered to a carrier by one consignor at one place at one time for delivery to one consignee on one bill of lading. This lot may consist of (1) only one item or (2) a number of containers all listed on the same set of shipping documents. This one lot of freight or Ndistinct" shipment can be transported on the same carrier with other distinct shipments containing the same items as long as each shipment is covered by separate sets of shipping documents.

Nuclear Referral List (NRL) means the nuclear-related, dual-use commodities on the Convnerce Control List that are subject to the nuclear non-proliferation export licensing controls of the Department of Convnerce. They are contained in Supplement No. 1 to 15 CFR Part 799 of the Department of Convnerce's Export Administration Regulations and are designated by the symbol (NP) as the reason for control.

14 Production facility means any nuclear reactor or plant specially designed or used to produce special nuclear material through the -irradiation of source material or speiial nuclear material, the chemical reprocessing of irradiated source or special nuclear material, or the separation of isotopes, other than a uranium enrichment facility.

Utilization facility means (1) any nuclear reactor, other than one that

• is a production facility and (2) any of the following major components of a nuclear reactor:

• (i) Reactor pressure vessel (designed to contain the core of a nuclear reactor);

(ii) Reactor primary coolant pump; (iii) "On-line" reactor fuel charging and discharging machine; and (iv) Complete reactor control rod system.

(3) A utilization facility does not include the steam turbine generator portion of a nuclear power plant.

4. Section 110.4 is revised to read as follows:

§110.4 Comunications.

Except where otherwise specified in this part, all comunications and reports concerning the regulations in this part should be addressed to the Assistant Director for Exports, Security, and Safety Cooperation, Office of International Programs, U.S. Nuclear Regulatory Co11111ission, Washington, DC 20555, telephone {301) 504-2344. Communications and reports may be delivered in person at the Comission's offices at 11555 Rockville Pike, Rockville, Maryland 20852 or at 2120 L Street NW. (Lower Level), Washington, DC 20037.

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§110.5 [Amended]

5. In §110.5, remove the words *and the definition of utilization facility in §110.2 of this part".

§110.6 (Amended]

6. In §110.6, paragraph (b), the phrase "Office of International Nuclear

• and Non-Proliferation Policy" is revised to read *office of Arms Control and Nonproliferation Technology Support".

§110.7 [Amended]

7. In §110.7 second sentence, add *110.20," between"§§" and "110.26".

8. Section 110.8 is revised to read as follows:

§110.8 List of nuclear facilities and equipment under NRC export licensing authority.

(a) Nuclear reactors and specially designed or prepared equipment and components for nuclear reactors. (See Appendix A to this part).

(b) Plants for the separation of the isotopes of uranium (source material or special nuclear material) including gas centrifuge plants, gaseous diffusion plants, jet nozzle plants, vortex plants, laser isotope separation

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plants, chemical separation plants, and specially designed or prepared assemblies and components for these plants. (See Appendix B to this part for gas centrifuge equipment and Appendix C to this part for gaseous diffusion equipment).

16 (c) Plants for the separation of the isotopes of lithium and specially designed or prepared assemblies and components for these plants. *

(d) Plants for the reprocessing of irradiated nuclear reactor fuel elements and specially designed or prepared assemblies and components for these plants. (See Appendix D to this part).

(e) Plants for the fabrication of nuclear reactor fuel elements and specially designed or prepared assemblies and components for these plants .

• (f) Plants for the production, separation, or purification of heavy water, deuterium, and deuterium compounds and specially designed or prepared assemblies and components for these plants. (See Appendix E to this part).

(g) Other nuclear-related commodities are under the export licensing authority of the Department of Commerce. (See 15 CFR Part 799).

§110.9a [Amended]

9. In §110.9a, remove paragraph (e) "Uranium enrichment facilities."

§110.10 [Amended]

10. In §110.10 paragraph (b), the reference to Subpart "L" is revised to read Subpart "K".

11. The heading of Subpart C is revised to read as follows:

Subpart C-Licenses

12. A new §110.19 is added to Subpart C to read as follows:

§110.19 Types of licenses.

17 Licenses for the export and import of nuclear equipment and material in this part consist of two types: General and Specific. A general license is effective without the filing of an application with the Comission or the issuance of licensing documents to a particular person. A specific license is issued to a named person upon application filed pursuant to the regulations in this part *

• 13. In §110.20, the section heading and paragraphs (a), (b), and (e) are revised and a new paragraph (f) is added to read as follows:

§110.20 General license information.

(a) A person may use an NRC general license as the authority to export or import nuclear equipment or material if the equipment or material to be exported or imported is covered by the NRC general licenses described in

§§110.21-110.29. If an export is not covered by these sections, a person must file an application with the Commission for a specific NRC license in accordance with §§110.30-110.31.

(b) In response to a petition or on its own initiative, the Commission may issue a general license for export or import if it determines that any exports or imports made under the general license will not be inimical to the common defense and security or constitute an unreasonable risk to the public health and safety and otherwise meet applicable statutory requirements. A general license is issued as a regulation after a rulemaking proceeding under Subpart K. Issuance of a general license is coordinated with the Executive Branch.

18 (e) A person who uses an NRC general license as the authority to export or import may cite on the shipping documents the section of this _part which authorizes the described export or import under general license, as a means of expediting U.S. Customs Service's processing of the shipment.

(f) As specified in §§110.21 through 110.26, 110.28, and 110.29, only certain countries are eligible recipients of equipment or material under NRC general licenses to export. The Commission will closely monitor these countries and may at any time remove a country from a general license in response to significant adverse developments in the country involved. A key factor in this regard is the nonproliferation credentials of the importing country.

14. In §110.21, the section heading is revised to read as follows:

§110.21 General license for the export of special nuclear material.

15. In §110.22, the section heading is revised to read as follows:

§110.22 General license for the export of source material.

16. In §110.23, the section heading is revised to read as follows:

§110.23 General license for the export of byproduct material.

17. In §110.24, the section heading is revised to read as follows:

§110.24 General license for the export of deuterium.

18. In §110.25, the section heading and paragraph (b) are revised to read as follows:

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§110.25 General license for the export of nuclear grade graphite.

(b) Unless licensed by the Department of Commerce, a general license is issued to any person to export nuclear grade graphite in fabricated, nonnuclear-related commercial products to any country not listed in §110.28, except that graphite electrodes weighing more than 1 kilogram per electrode may not be exported to any country listed in §110.29 under this general license. (Fabricated products are products in final manufactured form except for detailed machining and other final steps necessary for the intended end use of the product.)

19. In §110.26, the section heading and paragraph (a) are revised to read as follows:

§110.26 General license for the export of nuclear reactor components.

(a) A general license is issued to any person to export to the following countries any nuclear reactor component described in paragraphs (5) through (9) of Appendix A to this part if--

(1) The component will be used in a light or heavy water-moderated power or research reactor in those countries, or (2) The component is in semifabricated form and will be undergoing final fabrication or repair in those countries for subsequent return to the United States for use in a nuclear power or research reactor in the United States:

Belgium Greece Luxembourg Spain Canada Indonesia Netherlands Sweden Denmark Ireland Philippines Switzerland France Italy Portugal Taiwan

20 Germany Japan South Korea United Kingdom

20. In §110.27, the section heading and paragraph (c) are revised to read as follows:

§110.27 General license for imports.

(c) A person importing formula quantities of strategic special nuclear material (as defined in §73.2 of this chapter) under this general license shall provide advance notification of the imports as specified in §73.27 and

§73.72 of this chapter.

21. Section 110.28 is revised to read as follows:

§110.28 Embargoed destinations.

Cambodia, Cuba, Iran, Iraq, Libya, North Korea, Vietnam.

22. Section 110.29 is revised to read as follows:

§110.29 Restricted destinations.

Afghanistan India Algeria Israel Andorra Mauritania Angola 1 Niger Argentina Oman Brazil 1 Pakistan Burma (Myanmar*) St. Kitts Chile Syria Comoros United Arab Emirates Djibouti Vanuatu Guyana Yemen Arab Republic

I '

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Argentina and Brazil will be removed from the list of restricted destinations following implementation of the Argentina/Brazil/lAEA full-scope safeguards agreement.

23. Section 110.30 to Subpart Dis redesignated as §110.30 to Subpart C and revised to read as follows:

§110.30 Application for a Specific License.

(a) A person shall file an application for a specific license to export

- or import with the Assistant Director for Exports, Security, and Safety Cooperation, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555. The application may be delivered to the Commission's offices at 11555 Rockville Pike, Rockville, Maryland 20852 or at 2120 L Street, NW. (Lower Level), Washington, DC 20037.

(b) An application for a specific license to export or import must be accompanied by the appropriate fee in accordance with the fee schedule in

§170.21 and §170.31 of this chapter. A license application will not be processed unless the specified fee is received.

(c) A license application should be filed on NRC Form 7, except that an import license application and a production or utilization facility export license application should be filed by letter.

(d) Each person shall provide in the license application, as appropriate, the information specified in §110.31. The Commission also may 4

require the submission of additional information if necessary to complete its review.

(e) An application may cover multiple shipments and destinations.

22 (f) The applicant shall withdraw an application when it is no longer needed. The Commission's official files retain all documents related to a withdrawn application.

24. Section 110.31 to Subpart Dis redesignated as §110.31 to Subpart C and the section heading is revised to read as follows:

§110.31 Information Required in an Application for a Specific License.

Subpart D - [Removed]

25. Subpart Dis removed.

Subparts E, F, 6, H, I, J, K, and L - [Redesignated]

26. Subparts E, F, G, H, I, J, K, and Lare redesignated as Subparts D, E, F, G, H, I, J, and K respectively.

27. In §110.40, paragraphs (a), (b)(3), and (b)(4) are revised to read as follows:

§110.40 Commission review.

(a) Immediately after receipt of a license application filed under the regulations in this part, the Commission will initiate its licensing review and, to the maximum extent feasible, will expeditiously process the application concurrently with review by the Executive Branch.

(b) * * *

(3) 1,000 kilograms or more of nuclear grade graphite or deuterium oxide (heavy water), other than exports of heavy water to Canada.

23

{4) An export involving assistance to end uses related to isotope separation, chemical reprocessing, heavy water production, advanced reactors, or the fabrication of nuclear fuel containing plutonium, except for exports of source material or low-enriched uranium to EURATOM or Japan for enrichment up to 5 percent in the isotope uranium-235, and those categories of exports which the Co11111ission has approved in advance as constituting permitted incidental assistance.

28. In §110.41, the .introductory text of paragraph {a) and paragraphs (a)(3) and (a)(S) are revised to read as follows:

§110.41 Executive Branch review.

{a) An application for a license to export the following will be promptly forwarded to the Executive Branch for review:

(3) Nuclear grade graphite, more than 100 curies of tritium, and deuterium oxide (heavy water), other than exports of heavy water to Canada.

(5) An export involving assistance to end uses related to isotope separation, chemical reprocessing, heavy water production, advanced reactors, or the fabrication of nuclear fuel containing plutonium, except for exports of source material or low-enriched uranium to EURATOM and Japan for enrichment up to 5 percent in the isotope uranium-235, and those categories of exports approved in advance by the Executive Branch as constituting permitted incidental assistance.

24

29. In §110.42, footnote 3 is redesignated as footnote 2 and the text of the footnote is revised to read as follows:

§110.42 Export licensing criteria.

2 Exports of nuclear reactors, reactor pressure vessels, reactor primary coolant pumps, *on-line* reactor fuel charging and discharging machines, and complete reactor control rod systems, as specified in paragraphs (1) through (4) of Appendix A to this part, are subject to the export licensing criteria in §110.42(a). Exports of nuclear reactor components, as specified in paragraphs (5) through (9} of Appendix A to this part, when exported separately from the items described in paragraphs (l} through (4) of Appendix A, are subject to the export licensing criteria in §110.42(b}.

30. Section 110.43 is revised to read as follows:

§110.43 Physical security standards.

(a} Physical security measures in recipient countries must provide protection at least comparable to the recommendations in the current version of IAEA publication INFCIRC/225/Rev.2, December 1989, "The Physical Protection of Nuclear Material," and is incorporated by reference in this part. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a} and 1 CFR part 51. Notice of any changes made to the material incorporated by reference will be published in the Federal Register. Copies of INFCIRC/225/Rev.2 may be obtained from the Assistant Director for Exports, Security, and Safety Cooperation, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555, and are available for inspection at the NRC library, 7920 Norfolk

25 Avenue, Bethesda, Maryland 20814. A copy is on file at the library of the Office of the Federal Register.

{b) Co11111ission determinations on the adequacy of physical security measures are based on--

(1) Receipt of written assurances from recipient countries that physical security measures providing protection at least comparable to the recommendations set forth in INFCIRC/225/Rev.2 will be maintained; and (2) Information obtained through country visits, information exchanges, or other sources.

Determinations are made on a country-wide basis and are subject to continuing review. Appendix G to this part describes the different categories of nuclear material to which physical security measures are applied.

§110.50 [Amended]

31. In §110.50(b)(3), "Assistant Director for International Security" which appears in the first, second, and third sentences is revised to read "Assistant Director for Exports, Security, and Safety Cooperation".

§110.70 [Amended]

32. In §110.70 paragraph (c), "Assistant Director for International Security, Office of Government and Public Affairs,* is revised to read "the Public Document Room,*.

Appendix A to Part 110 [Amended]

33. In Appendix A to Part 110, paragraph (3) is revised to read as follows:

26 Appendix A to Part 110 - Illustrative List of Nuclear Reactor Equipment Under NRC Export Licensing Authority (3) Complete reactor control rod system, i.e., rods specially designed or prepared for the control of the reaction rate in a nuclear reactor, including the neutron absorbing part and the support or suspension structures therefor; Appendix B to Part 110 [Amended]

. 34. In the title of Appendix B to Part 110, the word "Illustrative" is added before the word "List*. In section 1, in sentence four of paragraph l.2(a), the number "1.6.l" is revised to read "1.6:1" and in sentence five, the phrase "or a remanence of 98.5 percent or more,* is added after the phrase "0.15 Henry/meter (120,000 in CGS units) or more,". In section 2, paragraph (a)l, "100 Kg/m 2 (15 lb/in. 2 )" is revised to read "100 kN/m2 (15 psi) and at a rate of l kg/h or more." and in paragraph (a)2 "3 kg/m2 " is revised to read "3 kN/m2 ".

Appendix D to Part 110 [Amended]

35. In Appendix D to Part 110, in sentence one of paragraph (3),

"contractors" is revised to read "contactors".

36. Appendix E to Part 110 is redesignated as Appendix G to Part 110 and a new Appendix E to Part 110 is added to read as follows:

27 Appendix E to Part 110 - Illustrative list of equipment and components under NRC export licensing authority for use in a plant for the production of heavy water, deuterium and deuterium compounds.

Note - Heavy water can be produced by a variety of processes. However, two processes have proven to be co11111ercially viable: the water-hydrogen sulphide exchange process (GS process) and the ammonia-hydrogen exchange process.

A. The water-hydrogen sulphide exchange process (GS process) is based upon the exchange of hydrogen and deuterium between water and hydrogen sulphide within a series of towers which are operated with the top section cold and the bottom section hot. Water flows down the towers while the hydrogen sulphide gas circulates from the bottom to the top of the towers. A series of perforated trays are used to promote mixing between the gas and the water. Deuterium migrates to the water at low temperatures and to the hydrogen sulphide at high temperatures. Gas or water, enriched in deuterium, is removed from the first stage towers at the junction of the hot and cold sections and the process is repeated in subsequent stage towers. The product of the last stage, water enriched up to 30 percent in deuterium, is sent to a distillation unit to produce reactor grade heavy water; i.e., 99.75 percent deuterium oxide.

B. The ammonia~hydrogen exchange process can extract deuterium from d

synthesis gas through contact with liquid ammonia in the presence of a catalyst. The systhesis gas is fed into exchange towers and then to an ammonia converter. Inside the towers the gas flows from the bottom to the top while the liquid ammonia flows from the top to the bottom. The deuterium is stripped from the hydrogen in the systhesis gas and concentrated in the

28 a11111onia. The amonia then flows into an anmonia cracker at the bottom of the tower while the gas flows into an anvnonia converter at the top. Further enrichment takes place in subsequent stages and reactor-grade heavy water is produced through final distillation. The synthesis gas feed can be provided by an amonia plant that can be constructed in association with a heavy water anvnonia-hydrogen exchange plant. The ammonia-hydrogen exchange process can also use ordinary water as a feed source of deuterium.

C.l. Much of the key equipment for heavy water production plants using either the water-hydrogen sulphide exchange process (GS process) or the anvnonia-hydrogen exchange process are common to several segments of the chemical and petroleum industries; particularly in small plants using the GS process. However, few items are available "off-the-shelf." Both processes require the handling of large quantities of flammable, corrosive and toxic fluids at elevated pressures. Thus, in establishing the design and operating standards for plants and equipment using these processes, careful attention to materials selection and specifications is required to ensure long service life with high safety and reliability factors. The choice is primarily a function of economics and need. Most equipment, therefore, is prepared to customer requirements.

In both processes, equipment which individually is not especially designed or prepared for heavy water production can be assembled into especially designed or prepared systems for producing heavy water. Examples of such systems are the catalyst production system used in the anvnonia-hydrogen exchange process and the water distillation systems used for the final concentration of heavy water to reactor-grade in either process.

29 C.2. Equipment especially designed or prepared for the production of heavy water utilizing either the water-hydrogen sulphide exchange process or the ammonia-hydrogen exchange process:

(i) Water-hydrogen Sulphide Exchange Towers Exchange towers fabricated from carbon steel (such as ASTM A516) with diameters of 6 m (20 ft) to 9 m (30 ft), capable of operating at pressures greater than or equal to 2 MPa (300 psi) and with a corrosion allowance of 6mm or greater.

(ii) Blowers and Compressors Single stage, low head (i.e., 0.2 MPa or 30 psi) centrifugal blowers or compressors for hydrogen-sulphide gas circulation (i.e., gas containing more than 70 percent H2S). The blowers or compressors have a throughput capacity greater than or equal to 56 m3 /second (120,000 SCFM) while operating at pressures greater than or equal to 1.8 MPa (260 psi) suction and have seals designed for wet H2S service.

(iii) Ammonia-Hydrogen Exchange Towers Ammonia-hydrogen exchange towers greater than or equal to 35 m (114.3 ft) in height with diameters of 1.5 m (4.9 ft) to 2.5 m (8.2 ft) capable of operating at pressures greater than 15 MPa (2225 psi). The towers have at least one flanged, axial opening of the same diameter as the cylindrical part through which the tower internals can be inserted or withdrawn.

(iv) Tower Internals and Stage Pumps used in the ammonia-hydrogen exchange process.

Tower internals include especially designed stage contactors which promote intimate gas/liquid contact. Stage pumps include especially designed

30 submersible pumps for circulation of liquid ammonia within a contacting stage internal to the stage towe*rs.

(v) Anvnonia Crackers utilizing the anmonia-hydrogen exchange process.

Anvnonia crackers with operating pressures greater than or equal to 3 MPa (450 psi).

(vi) Infrared Absorption Analyzers Infrared absorption analyzers capable of "on-line" hydrogen/deuterium 4lt ratio analysis where deuterium concentrations are equal to or greater than 90 percent.

(vii) Catalytic Burners used in the ammonia-hydrogen exchange process.

Catalytic burners for the conversion of enriched deuterium gas into heavy water.

37. A new Appendix F to Part 110 is added to read as follows:

Appendix F to Part 110 - Illustrative List of Byproduct Materials Under NRC Export/Import Licensi~g Authority Actiniun 225 (Ac 225) Californiun 248 (Cf 248) Curiun 247 (tm 247)

Actiniun 227 (Ac 227) Californi1.11 249 (Cf 249) Dysprosiun 165 (Dy 165)

Actiniun 228 (Ac 228) Californi1.111 250 (Cf 250) Dysprosiun 166 (Dy 166)

Americiun 241 (All 241) Californiun 251 (Cf 251) Erbiun 169 (Er 169)

Americh.111 24211 (All 242m) Californi1.11 252 (Cf 252) Erbiun 171 (Er 171)

Americi1.111 242 (All 242) Carbon 14 (C 14) Europiun 152 (Eu 152)

Americi1.111 243 (All 243) Ceriua 141 (Ce 141) Europiun 152 9.2 h Anti1110nY 124 (Sb 124) Ceriua 143 (Ce 143) (Eu 152 9.2 h)

Anti1110ny 125 (Sb 125) Ceriua 144 (Ce 144) Europiun 152 13 yr Anti1110ny 126 (Sb 126) CesiUIII 131 (Cs 131) (Eu 152 13 yr)

Arsenic 73 (As 73) Cesi1.111 13411 (Cs 13411) Europi1.111 154 (Eu 154)

Arsenic 74 (As 74) Cesiun 134 (Cs 134) Europiun 155 (Eu 155)

Arsenic 76 (As 76) CesiUIII 135 (Cs 135) Fluorine 18 (F 18)

Arsenic 77 (As 77) Cesiua 136 (Cs 136) Gadol ini1.11 153 (Gd 153)

Baril.Ill 131 (Ba 131) Cesi1.111 137 (Cs 137) Gadolinfun 159 (Gd 159)

Bariun 133 (Ba 133) Chlorine 36 (Cl 36) Galli1.111 n (Gan)

Baril.Ill 140 (Ba 140) Chlorine 38 (Cl 38) Gennanha 68 (Ge 68)

BiSRl.lth 207 (Bi 207) Chr011i1.111 51 (Cr 51) Ger1111ni1.111 71 (Ge 71)

Bi1111.1th 210 (Bi 210) Cobalt 5811 (Co 5811) Gold 198 (Au 198)

Broaine 82 (Br 82)

• Cobalt 58 (Co 58) Gold 199 (Au 199)

Cadllha 109 (Cd 109) Cobalt 60 (Co 60) ltafnh* 1n (Hf 1n)

Cac:hha 113 (Cd 113> Copper 64 (Cu 64> HafniUIII 181 (Hf 181)

Cadllh.n 11511 (Cd 11511) curiU111 242 CCIII 242) HolMiUIII 166M (Ho 166m)

Cadlliun 115 (Cd 115) CuriUI 243 (CII 243) Hol iUIII 166 (Ho 166)

Calci1.111 45 (Ca 45) Curi1.11 244 (CII 244) Hydrogen 3 CH 3)

CalciUIII 47 (Ca 47) CUriua 245 (CII 245) Jndi1.11 113111 (In 113m)

31 Indiua 11411 (In 11411) Phosphona 33 (P 33) Tantalun 182 (Ta 182) lndfua 11511 (In 115) Platfnlll 191 (Pt 191) Technetium 96 (Tc 96) lndi1111115 (In 115) PlatinLIII 193m (Pt 193111) Technetium 97m (Tc 97m)

Iodine 125 (I 125) Platiru1 193 (Pt 193) Technetfun 97 (Tc 97)

Iodine 126 (I 126) Plati,.. 197 (Pt 197) Technetfu 99111 (Tc 99111)

Iodine 129 (I 129) Platinlll 197 (Pt 197) Technetit.111 99 (Tc 99)

Iodine 131 (I 131) Poloniu 208 (Po 208> Tellurf111 125 (Te 125m)

Iodine 132 (I 132) Poloniu 209 (Po 209) Tellurfu 127 (Te 127m)

Iodine 133 (I 133) Poloniu 210 (Po 210) Tellurf111127 (Te 127)

Iodine 134 (I 134) Potasaiw 42 (K 42) Tel lurfUIII 129111 (Te 129111)

Iodine 135 (I 135) Praseody iu 142 (Pr 142) Tellurfua 129 (Te 129) lrfdfUIII 192 (Ir 192) Praaeocty iu 143 (Pr 143) Tellurfun 131 (Te 131m) lridit.111 194 (Ir 194) Pr0111ethiu 145 (P 145) Tellurfun 132 (Te 132)

Iron 55 (Fe 55) Promethh* 147 (Pm 147) Terbium 160 (Tb 160)

Iron 59 (Fe 59) PromethiUI 149 (P 149) Thalliun 200 (Tl 200)

Krypton 85 (Kr 85) Radii.a 223 (Ra 223) Thallit.111 201 (Tl 201)

Krypton 87 (Kr 87) RheniUI 186 (Re 186) Thalliun 202 (Tl 202)

Lanthanu1140 (LB 140) Rheniu 188 (Re 188) ThallfUI 204 (Tl 204)

Lead 210 (Pb 210) RhodiUIII 103 (Rh 10311) Thulium 170 (Tm 170)

Luteti1111177 (Lu 177) Rhodi1.11 105 (Rh 105) Thuli111 171 (Tm 171)

Manganese 52 (Mn 52) Rubidi1.11 86 (Rb 86) Tin 113 (Sn 113)

Manganese 54 (Mn 54) . RubidiLII 87 (Rb 87) Tin 123 (Sn 123)

Manganese 56 (Mn 56) Rutheniu 97 (Ru 97> Tin 125 (Sn 125)

Mercury 197 (Hg 197) Rutheniu 103 (Ru 103) Tfn 126 (Sn 126)

Mercury 197 (Hg 197) Ruthenfu 105 (Ru 105) Tftaniua 44 (Tf 44)

Mercury 203 (Hg 203) Rutheniu 106 (Ru 106) Trftfu (H3)

Molybderul 99 (Mo 99) Samariu 151 (SIi 151) Tl.l'IQ&ten 181 (W 181)

NeodylniUIII 147 (Nd 147) SBlllllriu 153 (SIi 153) Tl.l'IQaten 185 (W 85)

Neody!liUIII 149 (Nd 149) Scandiu 46 (Sc 46) Tl.l'IQaten 187 CW 187 Neptuni1111 237 (Np 237) Scandha 47 (Sc 47) Vanadium 48 (V 48)

Nickel 59 (Ni 59) Scandiu 48 (Sc 48) Xenon 131 (Xe 131 )

Nickel 63 (Ni 63) Seleniun 75 (Se 75) Xenon 133 (Xe 133)

Nickel 65 (Ni 65) Silicon 31 (Sf 31) Xenon 135 (Xe 135)

NiobiUIII 9311 (Nb 9311) Silver 105 (Ag 105) Ytterbium 175 (Yb 175)

Niobha 94 (Nb 94) Silver 110. (Ag 110.) Yttriua 90 CY 90)

NiobiUIII 95 (Nb 95) Silver 111 (Ag 111) Yttrfua 91 (Y 91)

Niobi1111 97 (Nb 97) Sodha 22 (Na 22) Yttriu 92 (Y 92)

OsnliUI 185 (Os 185) Sodiu 24 (Na 24) Yttri111 93 (Y 93)

OsllliUIII 191 (Os 191 ) Strontiu 85 (Sr 85) Zinc 65 (Zn 65)

OallliUIII 191 (Os 191) Strontiu 89 (Sr 89) Zinc 69 (Zn 69111)

OSlllfllll 193 (Os 193) Strontfu 90 (Sr 90) Zinc 69 (Zn 69)

PalladiUIII 103 (Pd 103) Strontiun 91 (Sr 91) Zirconi111 93 (Zr 93)

Palladhn 109 (Pd 109) Strontf1111 92 (Sr 92) Zfrconiun 95 (Zr 95)

Phosphorus 32 (P 32) Sulphur 35 (S 35> Zirconium 97 (Zr 97)

Dated in Rockville, Maryland, this ..:12,.-,{ day of zL. , 1993.

7 For the Nuclear Regulatory Commission.

for Operations.