ML23159A083

PR-040, 070, 073 - 48FR32182 - Implementation of the Convention on the Physical Protection of Nuclear Material

ML23159A083
Person / Time
Issue date:	07/14/1983
From:	Chilk S NRC/SECY
To:
References
48FR32182, PR-040, PR-070, PR-073
Download: ML23159A083 (1)

Text

ADAMS Template: SECY-067 DOCUMENT DATE: 07/14/1983 TITLE: PR-040,070,073 -48FR32182 - IMPLEMENTATION OF THE CONVENTION ON THE PHYSICAL PROTECTION OF

• NUCLEAR MATERIAL CASE

REFERENCE:

PR-040,070,073 48FR32182 KEYWORD: RULEMAKING COMMENTS Document Sensitivity: Non-sensitive - SUNSI Review Complete

DOCK:T FILE I::\'ENTORY Docket ::o. 40, 70, 73, ll0 (48 FR 32i~)

In the Matter of IMPLEMENTATION OF THE CONVENTION ON THE PHY~ICAL PROTECTION OF NUCLEAR MATERIAL VOLUME 2 Document Docket Date of Title or No. Date Document Descri Pt ion of Document 01 03/23/87 03/11/87 Federal Register Notice - Final Rule F/J1aflPu/:;: S /;ll.12 ( B 1 5~FtZ._qLet..tq

Eldorado Resources Limited Suite 400, 255 Albert Street Ottawa, Ont. Canada K1 P 6A9 (613) 238-5222 Telex 053-3382 DOCKETED USNRC Sandy Mackay-Smith eldorado General Counsel and Corporate Secretary SPECIAL DELIVERY

-J-/~, 1d, 13 December 5, 15183

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Secretary, U.S. Nuclear Regulatory Commission, Washington, D.C.

20555 ATTENTION: Docketing and service Branch

Dear Sirs:

Re: Nuclear Regulatory Commission Proposed Rule -

Implementation of the Convention on the Physical Protection of Nuclear Material Federal Register Volume 48, No. 136, Page 32182 Dated July 14, 1983 Unfortunately, the above proposed rules only recently came to our attention. Through our carrier, we make some 500 truck transport shipments of "natural uranium" to and from the United states each year. The proposed Rules could have significant impact on our carrier, ourselves and our clients in the United States. Enclosed please find our comments on the Rules and we would ask that they be considered.

Mackay-Smitli, General Counsel and Corporate Secretary.

SMS:lf Encl.

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TO: secretary, U.S. Nuclear Regulatory Commission, Washington, D.C.

20555 ATTENTION: Docketing and Service Branch FROM: Eldorado Resources Limited RE: Comments on Proposed Rules for Implementation of the Convention or the Physical Protection of Nuclear Material - Nuclear Regulatory Commission 10CFR Parts 40, 70 and 73 summary of comments:

The content of the notices for import and export of "natural uranium" are virtually impossible to comply with in respect of the details to be included in the notice concerning "transfer points" and the "routes to be used".

In addition it is unclear what is meant by "assurances that the imported material will be protected during international transport in accordance with Annex I to the Convention".

We suggest amendments to the proposed rules which lessen the impact of these areas of concern.

Included as well, are comments with respect to the confidentiality of information submitted by the licensee and an inconsistency in Annex I to the Convention of the physical protection of nuclear material which needs to be resolved.

Comments:

Listed below are the ways the proposed regulation could be modified to take into account a licensee's *differing needs or capabilities. The suggested modifications will enhance the public safety features of the proposed rules and will not affect the public health features.

1. We would urge two modifications to Rule 40.66 and 40.67. Paragraph 40.66 and 40.67, subparagraph 3 states "a listing of the mode(s) of shipment, transfer points and route to be used." we have no problem with "mode(s) of shipment", however it will be very difficult, if not impossible, to ascertain in advance the "routes to be used" or "transfer points". The choice of route is frequently changed at the last minute because of weather conditions, road construction or unusually heavy traffic. The same reasoning applies to transfer points, but in addition the "transfer point" may change on little notice due to lack of drivers or equipment.

These last minute changes in scheduling are primarily safety related and it is for this reason we urge that flexibility in the rules be built in. As a solution, we would suggest that the word "anticipated" be inserted before the words "transfer points" and "routes to be used" in both section 40.66 and 40.67.

We would also mention that the details proposed in the notice for both sections goes a good deal beyond the requirements of the regulations to the Convention and we question whether such detail.is really meaningful.

2* "Section 40.66 (b) (5) and Section 40.67 (b) (5) reads:

"assurance that the natural uranium will be protected during international nuclear transport at levels described in Annex I to the convention on the Physical Protection of Nuclear Material (see Appendix E of part 73)." The only assurance required for "natural uranium" in Appendix Eis found in subparagraph (b) (iii) which states:

"for natural uranium other than in the form of ore or ore ~esidue, tran~portation protection for quantities exceeding 500 kilograms U shall include advance notification of shipment specifying mode of transport, expected time of arrival and confirmation of receipt of shipment."

A One wonders why 40.66 (b) (5) and 40.67 (b) (5) is necessary if the assurance required for that section is in fact the very notice which section 40.66 and 40.67 call for. we would suggest that section 40.66 (b) (5) and 40.67 (b) (5) be deleted.

3. There is a contradiction in Appendix E, subsection (b) (3). The subsection requires advance notification of * . . "confirmation of receipt of shipment". It is difficult to understand how one can give "advance notification of shipment" and "confirmation of receipt of shipment" at the same time *

4. In the preamble to the proposed Rules we note that Commissioner Roberts is interested in obtaining comments on how and to what extent the N.R.C. should protect the information received in accordance with the proposed Rules. Our comment is that the information is of commercial interest to our competitors as their notices would be to us and therefore we would urge that the notification documents be kept confidential .

• Mackay-Smi ,

G neral counsel and Corporate Secretary.

SMS:lf

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GENERAL fj ELECTRIC 00(.,KET ED USNRC NUCLEAR ENERGY BUSINESS OPERATIONS GENERAL ELECTRIC COMPANY . 175 CURTNER AVENUE . SAN JOSE, fil-lFOa~r 31125P12 :24 October 25, 1983 File FDF: 83-176 Secretary U. S. Nuclear Regulatory Commission Washington, D. C. 20555

• Attention:

Gentlemen:

Docketing and Service Branch General Electric Company Nuclear Energy Business Operations, as a shipper of radioactive material offers the following canments on the proposed rule, "Implementation of the Convention on the Physical Pro-tection of Nuclear Material."

General licenses would be required to provide assurances that the material will be protected during international transport, at levels described in the Convention. We strongly feel that this is an undue burden on the carriers .

As in the case of natural uranium, this would require the carrier to obtain advance notification of shipment specifying mode of transport, expected time of arrival and confirmation of receipt of shipment to, we assume, both the consignor and the consignee as well as prior noti-fication to the NRC for a port of call.

If these requirements become too burdensome on the carrier, they may flag this material out of their tariff or increase the cost of trans-port to an unreasonable level.

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Page 2 of 5 GENERAL. ELECTRIC The convention calls for adequate physical protection for nucleaf material comparable to the levels recommended in INFCIRC/225/Rev. 1.

To quote that document, 11 Natural uranium, depleted uranium and thorium and quantities of uranium and thorium and quantities of uranium enriched to less than ::10%, n.ot fdu*nd*: in_ Category II I should be protected in accor-dance with prudent management practice. 11 Natural uranium does not pose a safeguards threat due to the nature of the material. We do not feel the requirements called out in 40.23, 40.66 nor 40.67 are necessary for this material. Prudent management practice is now in effect between

• the consignor and consignee. Notification of shipments are made and receipt confirmed. Significant quantities of material should be left as defined as low, moderate, strategic, or Categories I, II, or III and should not include natural uranium. We question what the NRC is going*

to do with the advance notice on import of natural uranium. There are no requirements for notification on domestic shipments.

As the proposed rule is written, we suggest the following amendments:

40.12(a) should exempt private carriage.

40.23(2)(1) and 70.20b(f)(2)(i) should define location to what detail (street address, berth, or only city).

• The notifications are not uniform.

40.23(b)(1)(i) received at least 14 days.

40.66(a) postmarked at 1east 14 days.

70. 20b (f)( 2)( i) received 14 days.

73.72(btpostmarked at least 14 days.

To include notification 14 days in advance would require that all arrange-ments be made and information on the shipment be available to the person making notification prior to 14 days. This is, in most cases, not possi-ble as many shipment changes occur within the 5-10 day time-frame.

Page 3 of 5 GENERAL. ELECTRIC 73.72 should be amended to reflect a seven-day notice for domestic shipments of formula quantity strategic special nuclear material as called out in 73.26(b)(3). There is a specific requirement for irradiated fuel in 73.73 and 73.74. Since 73.37(b)(l) requires noti-fication jn accordance with 73.72, that specific section should be amended to include irradiated fuel.

The following definitions would add understanding of the regulations:

• 1) "Ore or Ore residue."

2) "Storage incidental to international nuclear transport." (Does this tenm include the time at the container loading station and if so, will the Inspection and Enforcement groups of the NRC accept.the normal conditions at these locations as meeting the requirements of 11 Controlled Access Area" as it is defined in 73.2(Z).)

When*. a state s system of physical protection is divided between two 1

or more authorities, arrangements should be made for overall coordi-nation (INFCIRC/225/Rev. 1, paragraph 3.2.1.3). We feel tt is a dupli-

• cation of effort to requfre the licensee to notify both the Material Transfer Safeguards Licensing Branch in Washington, D. C. and the NRC Regional Office. Notification should be made to one or the other, and the NRC should establish a means of communication between their various offices.

The requirements specified under 7O.2Ob(f) should be approached with the above requirement in mind. Notification is presently made to com-petent authorities of the country of origin and of each country through or into which the consignment is transported by the consignor per IAEA Safety Series #6 11 Regulations for the Safe Transport of Radioactive Materials, 1973 Revised Edition,Section VIII," Parts 834 through 836.

Page 4 of 5 GENERAL. ELECTRIC The U.S. Competent Authority responsible for administering the require-ments of Section VIII of the IAEA 11 Regulations for the Safe Transport of Radioactive Materials, Safety Series #6, 1973 Revised Edition (as amended)*; 11 is the Materials Transportation Bureau, Office of Hazardous Materials Regulations (OHMR), U.S. Department of Transportation, Washington, D. C.

20590 (173.47l(e) CFR Title 49). The consent to a transport operation can include specific limitations and conditions related to the particular circumstances and to whatever emergency plans have been prepared. We suggest the NRC utilize the established methods now in effect to develop

• a system to employ the competent authorities* approval to set specific requirements on the consignor, per each individual shipment. The NRC notification would be a duplication_and an unnecessary waste of time and money.

Finally, we would like to comment on how, and to what extent, the infor-mation received should be. protected.

10CFR73.2l(b)(2)(ii) requires protection by a licensee against unautho-rized disclosure of schedules and itineraries for specific shipments (bf safeguarded material), except that routes and quantities for shipments of spent fuel are not withheld from: public disclosure;:*arid schedules for spent fuel shipments may be released ten days after the last shipment of a current series. Presumably, the NRC similarly protects such infor-mation.

Accordingly, all information received by the NRC in concurrence with the proposed rules should be protected in the same manner as is required of licensees in 10CFR73.2l(b)(2)(ii). Such protection is necessary to assist in preventing those who might plan harm to, or disr:uption of, the shipment from obtaining information they might find useful in formulating those plans.

Again, we quote from INFCIRC/225/Rev. 1, paragraph 6.1.3.: 11 Transit opera-tions should not be advertised if this could lead to a decrease in the

Page 5 of 5 GENERAL. ELECTRIC degree of physical protection. 11 We are all aware of what has been the outcome of the irradiated reactor fuel saieguard requirements.

The public has access to the routes. The newspape~s have published the number of shipments, the vehicles being utilized, and have actually monitored the shipments by helicopter .

• These shipments had greater anonymity when moved in routine commerce operations.

We appreciate the opportunity to comment on this proposed rulemaking and respectfully request the NRC to re-evaluate these proposed rules.

Sincerely,

~~

Frederick D. Flowers, Manager International Traffic and Hazardous Materials Mail Code 512

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GA Technologie.§ Inc.

GA Technologies OOCKETHJ USNR C In Rep;!-~

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(619) 455-3000 OOCK ET! Nli & S!:. t?Vl r !

BRANCH Secretary U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Attn: Docketing & Service Branch *

Dear Sir:

Proposed Rules for Implementation of the Convention on Physical Protection of Nuclear Material.

GA Technologies Inc. (GA) has only these few minor comments about the changes proposed in the July 14, 1983 Federal Register.

1. The revised 10 CFR 40.12(a) could cause an individual to believe he is exempt for the stated activities regardless of material quantity unless he also reads 40.12(b). Clarification could be accomplished by inserting "less than 500 kg of" between the words .** transport or store and source material *** thereto.

2. We believe the proposed 10 CFR 70.20b(e) should be revised to require physical protection equivalent to Annex I & II of the convention, rather than referring to 73.37 for its protection standards. 10 CFR 73.37 imposes physical protection requirements for shipments within the U.S. based on characterizations other than the convention. Fur-ther the Commission adopted 10 CFR 73.37 as an interim rule in re-sponse to what it had been persuaded was a threat to the public health and safety and which has been found unsubstantiated for ir-radiated fuels not the high burnup power reactor oxide fuel type.

Unfortunately NRC did not limit 10 CFR 73.37 to such fuels and has taken no steps to revise its 10 CFR 73.37 to make it generally con-sistent with IAEA Infcirc 225, section 4, table "Categorization of Nuclear Materials" or the annexes to the subject convention. In our view, NRC should either remove the 10 CFR 73.37 references in this paragraph or revise the Introductory Applicability phrases of 10 CFR 73.37 to make it compatible with the standards of the international community.

A correction of minor significance is the or after 10 CFR 70.20b(e)

• • • transient shipment *** should be of.

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3. Although this is not a matter proposed in the July 14 announcement, we add that 10 CFR 73.37(b)(1) requires advance notifications be made in accordance with 10 CFR 73.72. It should be modified to place noti-fication requirements where they belong, in sections not relating to strategic material in formula quantity shipments. Irradiated fuels can never be "strategic special nuclear material in formula quantity" if international characterizations are used.

4. The section 73.72 currently requires advance notices for formula quantity of strategic SNM and moderate quantity of SNM involving strategic SNM and indirectly irradiated fuel. Such advance notices are seven (7) days, echoed in a plethora of NRC guidance documents, license plans and procedures, and state and local laws. Since no time is specified in the convention and no reason is given in NRC's July 14 analysis for 14 days, we believe the proposed revision of 73.72, .73 and .74 should require only 7 days notice.

5. We further believe that 10 CFR 73.73 should be constructed to include advance notifications for shipments of low and moderate quantity SNM as well as irradiated fuels. A special sub-paragraph could address any special added individuals required to be notified in the event of export.

6. Including the complete text of the convention's Annex 1 & 2 in 10 CFR 73, Appendix E, would substantialy clarify your regulation and re-flect NRC's intent to make its rules compatible with international standards. We suggest you include it.

A table such as given in IAEA's Infcirc 225 Rev. I or the convention is sorely needed to illustrate the variety of protections afforded special nuclear materials

• We hope these are useful and constructive comments. Should you wish, you can call me at (619) 455-2823.

Very truly yours, WRM:hc

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Licensing Administrator

E)${_QN NUCLEAR COMPANY, Inc. DOCKET ED lJSNRC

'2101 Hom Rapids Road P. 0. Box 130, Richland, Washington 99352 ,-

Phone: (509)375-8100 Telex: 15-2878 "83 OCT 17 P3 :06 October 12, 1983 OFFI CE OF SE.CRt '1;.1. F '

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Secretary of the Commission U-S. Nuclear Regulatory Commission 0UL~~{ I UM[h.f< PR -t.lO 16 13 Washington, D.C- 20555 Attention: Docketing and Service Branch

'(; /U 3J, t'rotj Gentlemen:

Reference:

Proposed Rule: Implementation of the Convention on the Physical Protection of Nuclear Material (48 FR 32182, July 14, 1983)

We have carefully reviewed the proposed amendments and the supplementary information also published at the same time. Based on our experience with the international transport of natural and low enriched uranium, we offer the specific comments discussed below.

Amendments to Part 40 We believe that our current practices for the international transport of natural uranium generally meet the requirements of the Convention on the Physical Protection of Nuclear Material. The requirements for natural uranium are stated in footnote c, Appendix C of Part 110 of 10 CFR as follows, "Natural uranium, depleted uranium, and thorium should be protected in accordance with good management practice. As a minimum, for quantities exceeding 500 kg, these materials should be kept under constant control and secured from unauthorized removal. Transport protection should include advance notification of shipment specifying mode of transport, expected time of arrival and confirmation of receipt of shipment."

Our imported natural uranium is transported in sealed drums inside cargo containers which are also sealed with tamper-indicating seals. Upon arrival the contents of each cargo container are inspected b y our agent for damage or tampering. The guidelines of the Convention with respect to notification of mode of transport and time of arrival are followed.

Our exports of natural uranium, in the form of nuclear fuel materials are generally transported under the same physical protection conditions as we use for low enriched uranium. Those conditions meet or exceed the requirements of the Convention on the Physical Protection of Nuclear Materials for the transport of natural uranium. From our examination of AN AFFILIATE OF EXXON CORPORATION Atknowletlge!I b, '**

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Secretary of Commission October 12, 1983 the proposed requirements (40.23, 40.66 and 40.67) for advance notifica-tion, it is not certain that advance notification to NRC would actually improve security or be cost-effective in terms of the additional burden placed on the licensees. Further, based on our experience in importing natural uranium we are not sure that any uranium importer could be certain that he could meet the proposed detailed reporting requirements in a timely and accurate manner. The detailed information may not be available 14 days in advance.

As a result of these considerations, we do not believe that the proposed amendments to Part 40 are needed in their entirety to assure compliance with the Convention. We believe that Part 40 needs to be amended only to the extent of including a statement that licensees who plan to carry a transient shipment or plan to import or export natural uranium in quantities in excess of 500 kilograms are required to provide (and/or assure) that physical protection meets the requirements of the Con-vention for natural uranium, e.g., as stated in footnote c of Appendix C of Part 110 of 10 CFR.

Amendments to Part 70 and Part 73 In our experience, the measures taken under existing NRC Regulations for the physical protection of low enriched uranium (material of low strategic significance) already meet the requirements of the Convention on the Physical Protection of Nuclear Material as stated in the new Appendix E to Part 73 of 10 CFR. Thus, other than a possible need to define more clearly the responsibility for protection of a transient shipment, we do not believe there is a need for additional regulations for material of low strategic significance. Consequently we recommend that the proposed Sections 73.73(a) (1) and 73.74(a) (3) be deleted.

In our judgment, the retention of material of low strategic significance in those proposed new sections would place a significant reporting burden on the affected licensees without improving physical protection.

We appreciate this opportunity to participate in this important rule-making process.

Sincerely, 1~!t~

T Corporate Licensing clc

BRAUNKOHLE TRANS

• a3 OCT 12 All :29 October 10, 1983 5029 DOMAIN PLACE ALEXANDRIA, VIRGINIA 22311 OFFIL::. OF S!:. 1., --< t. ..- * (703) 845-0140 OOC KETING & SERVI C! TELEX: 292840 BTUS UR BRANCH Secretary U.S. Nuclear Regulatory Commission Washington, D.C. 20555

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Att: Docketing an d Service Branch L,tffF£ .3~!£t,) (j)

Ref: Proposed Rules 10 CFR 40,70,and 73 Implementation of the Convention on the Physical Protection of Nuclear Material

Dear Mr. Secretary,

As a small business licensed by the Nuclear Regulatory Commission (NRC) for import and export of Convention defined nuclear material, we would like to add our comments for consideration prior to refinement of the referenced proposed rules.

1. It appears that for transient shipments, the NRC is providing a general license for carriers i.e., steamships, airlines, motor carriers etc. The carriers will never know they are generally licensed under 40.23 and further they will FORBID THE CARRIAGE OF NUCLEAR MATERIAL ON THEIR EQUIPMENT rather than become jurisdictionally required to comply with NRC regulations and thus become subject to fines for noncompliance with NRC regulations.

Further,this rule will make the transportation of nuclear material of "low strategic significance" to have the same import and cost as aterials of "moderate strategic significance" and irradiated materials

• hich already have the majority of transportation restrictions.

2. It is not clear if you consider "uranium ore concentrate-U308" to fall iithin the category of "natural uranium other than in the form of ore or ore residue."

3. Regarding notifications: in the past, in an effort to increase physical security over irradiated fuel and highly enriched material, the NRC required notifications. These notifications with routes and business information became GENERAL KNOWLEDGE IN THE PUBLIC DOMAIN.

THIS REDUCES -INSTEAD OF INCREASES PHYSICAL SECURITY.

Now we are again asked to provide notifications. These notifications will make known the parties to the transactions including telephone numbers, a de scription of the shipment, mode, transfer points, estimated times and dates of arrivals and departures and assurances regarding physical security.

This information clearly assists the exact parties who HAVE NO NE ED TO KNOW. The requirement of such information to be supplied to both NRC headquarters and also to individual NRC regions is a duplication and does not relate to the Convention. ~ 1~~ _I}/)

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The timeframes for the notifications are not uniform, in some cases notifications must:

-be RECEIVED at least 14 days in advance ***

-be POSTMARKED at least 14 days in advance ***

-ASSUREDLY be received ***

-be made, as soon as reasonably possible prior to ***

4. What will NRC do with the notifications and do they have to hire larger staffs both at headquarters and in the regions to handle notifications for material of "low strategic significance"?

5. The one proposed rule which has the most underlying significance is he one mentioned in 40.66 and 40.67 where the licensee must "assure"

• RC that the material will be protected outside the U.S. territorial limits at levels described in Annex I to the Convention on the Physical Protection of Nuclear Material.

- What is a licensee expected to do to "assure" NRC?

- Most countries who are members of IAEA have been complying with IAEA recommendations for THE PHYSICAL PROTECTION OF NUCLEAR MATERIAL-INFCIRC/225/REV.l for five years and these countries may not wish to become a party to another Convention requiring additional assurances.

WILL LACK OF COMPLETE ASSURANCE FOR ALL PORTS OF CALL ENROUTE TO A DESTINATION RESULT IN NO SHIPMENT ALLOWED?

- These additional assurances will slow down routine commerce and will adversly effect contractual delivery dates.

6. Any opportunity a company or carrier has to increase costs based on A:i creased regulations is not missed. These excessive regulations which

~ O BEYOND THAT REQUIRED BY THE CONVENTION will have a tremendous economic impact on the nuclear industry and thus the rate payers and the tax payers.

As a small business, but more importantly as a member of the nuclear industry and the general rate and tax paying populous we suggest that notifications be done on a generic basis per specific licensee per license and that NRC's Inspection and Enforcement perform "spot checks" on licensees to see if the levels of physical protection have been met in accordance with ANNEX I of the Convention.

We urge the NRC to examine the Convention requirements to which the U.S. government has become a party and propose rules which will fit into routine commerce business methods without adding superfluous layers of regulations which have not proven improvement of the public health and safety.

Respectfully submitted,

• 7 21~;aJ Diane Wright Harmon President

NUCLEAR REGULATORY COMMISSION 10 CFR Parts 40, 70, and 73 Implementation of the Convention on the Physical Protection of Nuclear Material AGENCY: Nuclear Regulatory Commission.

ACTION:* Proposed rule.

SUMMARY

The Nuclear Regulatory Commission proposes to amend its regulations in order to implement the provisions of the Convention on the Physical Protection of Nuclear Material. The proposed amendments would require (1) the physical protection of transient shipments of special nuclear material of moderate and low strategic significance, irradiated reactor fuel and natural uranium; (2) advance notification to the NRC regarding the export of Convention defined

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nuclear materials; (3) advance not.ification and assurance of protection to the NRC concerning transient shipments of Convention defined nuclear material shipped between countries that are* not parties to the Convention; and (4) advance notifi-

• cation and assurance of protection to the NRC concerning the importation of Con-vention defined nuclear materials from countries that are not parties to the Convention. By adopting the proposed amendments, the United States will have implemented the prov i sions of the Convention, resulting in i mp roved security for Convention defined nuclear material during international transport.

DATE: Comment period expires OCT 1 3 1983 Comments received after this date will be considered if it is practical to do so, but assurance of considera-tion cannot be given except as to comments received on or before this date. * ~ ) *

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r ADDRESSES: Mail written comments to Secretary, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555, Attention: Docketing and Service Branch.

Deliver comments to Room 1121, 1717 H Street NW, Washington, DC between 8:15 am and 5:00 pm weekdays.

Copies of the regulatory analysis, 0MB clearance supp_orti ng statement and com-1 ments received may be examined at the NRC Public Do~ument Room at 1717 H Street, NW, Washington, DC .

• FOR FURTHER INFORMATION CONTACT: Steven J. Brown, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555, Telephone* (301)427-4004 SUPPLEMENTARY INFORMATION BACKGROUND ,G:S-On March 3, 1980, the United States signed the Convention on the Physical Protection of Nuclear Material (the Convention)(Exec. H, Senate, 96th Cong., 2d Sess.). This Convention is the result of *a U.S. proposal originally made by

.* 1/ the Secretary of State in 1974, and its purpose is to provide for the establish-ment and maintenance of adequate physical security with respect to international shipment of significant quantities of source or special nuclear material. The Senate approved the Convention on July 30, 1981 and the implementing legislation has been enacted by the Congress and signed by the President on October 18, 1982 (P.L.97-351, 96 Stat. 1663). The Convention will enter into force on the thirtieth day following the date of deposit of the twenty-first instrument of

-ratificaTTon with the IAEA: The U.S. deposited its instrument on December 13, 1982.

I- '

A review of NRC regulations and procedures disclosed that the U.S. is in compliance with the Convention except for regulations regarding (1) the phys-ical protection of transient shipments of special nuclear material of moderate and low strategic significance and irradiated reactor fuel; (2) advance notification to the NRC regarding the export of Convention defined nuclear materials; (3) ad-vance notification and assurance of protection to NRC concerning transient ship-ments of Convention defined nuclear material between countries that are not parties fo the Convention; and (4) advance notification an~ ~ssurance of protection to the I

NRC regarding the importation of Convention defined nuclea, materials from nations

• that are not parties to the Convention.

DESCRIPTION In order to comply with the provisions of the Convention, the Commission is proposing the following amendments to_ its regulations:

(1.) A general license provision would be added to 10 CFR Part 40 for transient shipments of natural uranium requiring advance notice to NRC concerning transient shipment s of natural uranium, other than in the form of ore or ore residue, in amounts exceeding 500 kilograms. For shipments between nations not party to the Convention, general licen~ees would be required to provide assurances that the ma-

., terial will be protected during international transport at levels described in the Convention.

(2) The general licen~e provisions in 1a CFR Part 70 for carriers of transient shipments would be revised to include special nuclear material of moderate and low strategic significance and irradiated reactor fuel. Currently, §70.20b grants carriers a general license to possess transient shipments of formula quantities of special nuclear material from the time the shipment enters a U.S. port until it

-*exi"ts thaf-or*another porf. This revision will expand the scope of §70.20b. by in-.

eluding transient shipments of special nuclea*r material of moderate and low stra-tegic significance and irradiated reactor fuet. Carriers of transient, shipments of these materials will be issued a general license. For transient shipments of 3 -

special nuclear material of moderate and low strat~gic significance, the licensee would be required to comply with the appropriate requirements of §73.67. Fcir transient shipments of irradiated reactor fuel, a licensee would be required to comply with the appropriate requirements of §73.37. Where neither the exporting nor importing nation is a party to the Convention, licensees must also provide assurances that the nuclear material will be protected during international transport at levels described in Annex I to the Convention.

(3). 10 CFR Parts 40 and 73 would be r.evised to require advance notification to the NRC regarding U.S. export shipments of Convention defined nuclear material .

• As required by the Convention, this advance notice will be sent to nations which the nuclear material is expected to transit by land or international waterways or whose airports or seaports it is expected to enter. Those parts would also be amended to require that importers of Convention defined nuclear material, shipped from nations that are not parties to the Convention, send notification to the NRC regarding any shipment and pro vi de as surances.,Jhat the material wi 11 be protected during transport in accordance with Annex I to the Convention.

IMPACT

• With regard to the proposed transient shipments amendments to Parts 40 and 70, increased costs to licensees are likely to be insignificant if present shipping patterns tontinue. During the past four years, there have been only one known transient shipment of irradiated fuel, one known shipment of Category II material, and no known shipment's of eategory III material or natural uranium. The additional cost for protecting transient shipments of these materials is estimated to be less than $500 for each shipment of Category II material; less than $200 for each ship-

- ment oLLa.tegoi:-y I I I mater.i al and natura 1 uranium; and about $1700 per 24-hour lay-over for each spent fuel shipment.

~-- I* .

With regard to the proposed Parts 40 and 73 _import and export amenaments, a review of FY 1982 export/import transactions of Convention defined nuclear material disclosed that approximately 2300 shipments-were made. Of this number 1300 were export shipments and 1000 were imports. Considering processing time, overhead, postage and stationary costs, etc., it is esti-mated that a licensee will spend $100 per notification. For export ship-ments, the maximum industry cost would be approximately $130,000 per year if present shipping trends continue. This figure may be overstated since costs could be reduced by including series of shipments in one notification.

For import shipments from countries not parties

. to t~e

. Converrtion, the ex-pense to licensees is approximately $100,000 per year. This*figure may also be overstated because initially the number of notifications will be high during the time when nations are ratifying the Convention. The majority of nations that export to the U.S. are expected to be parties to the Convention. Conse-quently, the total number of notifications and assurances is expected to de-crease in the future. Concerning the change in the reporting requirement from 7 to 14 days for exports of formula quantities of strategic special nuclear mate-

~-

rial and special nuclear material of moderate strategic significance, the staff estimates minimal increased costs to licensees because of the limited number of export shipments (about 20 per year) and current industry practice of notifying

• NRC well in advance of the .7-day requirement

• Commissioner Roberts is interested in obtaining comment on how and to what extent the NRC should protect the information received in accordance with these proposed rules.

PAPERWORK REDUCTION ACT STATEMENT The proposed rule has been submitted to the Office of Management and Budget for clearance of the information collection requirements that may be appropriate ur1der thePaperwork Reduction Act (44 U.S.C. 3501, et seq.). The SF-83, "Request for Clearance," Supporting Statement, and related documentation submitted-to 0MB wi 11 be pl ac-2d in the NRC Public Document Room at 1717 H Street, NW; Washington DC 20555. This mate*rial will be available for inspection or copying for a fee.

REGULATORY FLEXIBILITY CERTiflCATION Based upon the information available at this stage of the rulemaking proc~ed-ing and in accordance with the Regulato~ Flexibility Act of 1980, 5 U.S.C.

605(b), the Commission hereby certifies that, if promulgated, this rule will not have a significant economic impact upon a substantial number of small entities.

The proposed rule affects about 85 export and import licensees. No small businesses will be affected.

r Any- small entity subject to this regulation who determines that, because of its size, it is likely to bear a disporportionate adverse economic impact should notify the Commission of this in a comment that indicates:

(a) The licensee 1 s size in terms of annual income or revenue and number of employees; (b) How the proposed regulation would result in a significant economic burden upon the licensee as compared to that on a larger licensee; (c) How the proposed regulation could be modi~jed to take into account the licensee s differing needs or capabilities; 1

(d) The benefits that would be gained, or the detriments that would be avoided to the licensee, if the proposed regulation were modified as suggested by the commenter; and (e) How the ~egulation, as modified, would still adequately protect the public health and safety.

LIST OF SOBJECTS IN 10 CFR PARTS 40, 70 AND 73 Part 40: Government contracts, Hazardous materials - transportation, Nuclear materials, Penalty, Reporting requirements, Source material, Uranium.

Part 70: Hazardous materials - transportation, Nuclear materials, Packaging and containers, Penalty, Radiation protection, Reporting requirements, Scientific I-equipment, Security measures, Special nuclear material.

Part 73: Hazardous materials - transportation, Nuclear materials, Nuclear power plants and reactors, Penalty, Reporting requirements, Security measures.

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. 553, the NRC is proposing to adopt the following amendments to Parts 40, 70 and 73.

PART 40 - DOMESTIC LICENSING OF SOURCE MATERIAL

1.

• The authority citation for Part 40 is revised to read as follows:

Authority: Secs. 62, 63, 64, 65, 81, 161, 182, 183, 186, 68 Stat. 932, 933, 935, 948, 953, 954, 955, as amended, secs. 83, 84, 92 Stat. 3033, as amended, 3039, sec.* 234,' 83 Stat. 444, as amended (42 U.S.C. 2092, 2093, 2094, 2095, 2111, 2113, 2114, 2201, 2232, 2233, 2236, 2282); secs. 202, 206, 88 Stat. 1244, 1246 (42 u.s.c. 5842, 5846) unless otherwise noted.

Section 40.7 also issued under Pub. L. 95~601, .:..:-:..,--

sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 40.3l(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. *2152). Section 40.46 also issued under sec. 184, 68 Stat. 954, as amended (42 u.s.c. 2234) *

• For the purposes of sec. 223, 68 Stat 958, as amended (42 U.S.C. 2273), §§40.3, 40.25(d)(l)-(3), 40.35(a)~(d), §40.4l(b) and, (c), 40.46, 40.51(a) and (c) and 40.63 are issued under sec. 161b., 68 Stat. 948 as amended (42 U.S.C. 2201(b)); and

'<- §§40.25(c) and (d)(3) and (.4), 40.26(c)(2), 40.35(e), 40.4l(f), 40.61, 40.62, 40.64, and 40.65 are issued under sec. 1610., 68 Stat. 950, as amended (42 U.S.C. 2201(0)).

2. Section 40.12 is revised to read as follows:

. ~40. -12* -Carrie rs.

(a) Common and contract carriers, freight forwarders, warehousemen, and U.S.

Postal Service are exempt from the regulations"in this part and the r'eqairements for a l~cense set forth in section 62 of the Act to the extent that they trans-port or store source material in the regular course of the carriage for another or storage incident thereto.

(b) For persons covered by the general license issued under §40.23 and for source material in amounts exceeding 500 kilograms, this exemption does not apply when transporting transient, export and import shipments of natural uranium, other than in the form or ore or ore residue.

3. A new §40.23 is added to read as follows:

§40.23 General license for carriers of transient shipments of natural uranium other than in the form of ore or ore residue.

(a) A general license is hereby issued to any person to possess a transient shipment of natural uranium, other than in the form or ore or ore residue, in amounts exceeding 500 kilograms.

~:--:::.:

(b~(l) Persons generally licensed under this section who plan to carry a tran-sient shipment with scheduled stops at a United States port, shall notify the Material Transfer Safeguards Licensing Branch, Division of Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555 by U.S. Mail. The notification must be--

(i) Received at least 14 days before the first scheduled stop in the United States; and (ii) Made, as soon as reasonably possible, when any changes to the shipment itinerary occur.

(2) The advance notification must include the following information:

.(i) Location of all scheduled stops in United States territory; (ii) Arrival_ and departure times for all scheduled stops in United States territory; I* ,

(iii) The type of transport vehicle;

• (iv) A physical description of the shipment; (v) The numbers and types of containers; (vi) The name and telephone number of the carrier s representative at each 1

stopover location in United States territory; (vii) For shipments between nations that are not party to the Convention on the Physical Protection of Nuclear Material, assurances, to the extent practicable, that the natural uranium will be protected during international transport.at levels described in Annex I to that Convention (see Appendices E and F to Part 73).

~ (c) Persons generally licensed under this section making unscheduled stops at United States ports, after the decision to stop, shall immediately provide to the Material Transfer Safeguards Licensing Branch the information required under paragraph (b) of this section.

4.* A new §40.66 is added to read as follows:

§40.66 Requirement for advance notice of ~Xport shipments of natural uranium.

(a) Each lic~nsee who plans to export natural uranium, other than in the form of ore or ore residue, in amounts exceeding 500 kilograms, shall notify by U.S.

i. Mail, the Material Transfer_ Safeguards Licensing Branch, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555 of the proposed s~ipment postmarked at least 14 days in advance of the shipping date.

~-- (b) The advance notifica_tion must be in writing and include the following information:

(1) The name(s), address(es), and telephone number(s) of the shipper, receiver, and carrier(s);

(2) A physical description of the shipment; I* ,

(3) A listing of the mode(s) of shipment, transfer points, and routes to be"used; (4) The estimated dates and times of arrival and departure; and (5) Assurance that the natural uranium will be protected during inter-national nuclear transport at levels described in Annex I to the Convention on the Physical Protection of Nuclear Material (see Appendix E of Part 73).

5. A new §40.67 is added to read as follows:

r

§40.67 Requirement for advance notice for importation of natural uranium from countries that are not party to the Convention on the Physical Protection of Nuclear Material.

(a) Each licensee who plans to import natural uranium, other than in the form of ore or ore residue, in amounts exceeding 500 kilograms, from countries not party to the Convention on the Physical Protection of Nuclear *Material (see Appendix F of Part 73) shall notify by U.S. mail, the Material *Transfer Safeguards Licensing Branch, Division of Safeguards, 0ffi.;::.e of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington DC 20555 of the proposed shipment postmarked at least 14 days in advance of the shipping date.

(b) The advance notification must be in writing and include the following i nformat i on :

(1) The name(s), address(es), and telephone number(s) of the shipper, receiver and carrier(s);

~ (2) A .physical des_cription of the shipment; (3) A listing of the mode(s) of shipment, transfer points, and routes to be used; (4) The estimated dates and times of arrival and departure; and (5) Assurances that the imported material will be protected during inter-national transport in accordance with Annex I to the Convention on the Physical

'{-..

Protection of Nuclear Material (See Appendix E of Part 73).

PART 70 - DOMESTIC LICENSING OF SPECIAL NUCLEAR MATERIAL

6. The authority citation for Part 70 is revised to read as follows:

AUTHORITY: Secs. 51, 53, 161, 182, 183, 68 Stat. 929, 930, 948, 953, 954, as amended {42 U.S.C. 2071, 2073, 2201, 2232, 2233); secs. 201, as amended, 202, 204, 206, 88 Stat. 1242, as amended, 1244, 1245, 1246 {42 U.S.C. 5841, 5842, 5845, 5846).

Section 70.7 also issued under Pub. L.95-601, sec. 10, 92 Stat. 2951 (42 U.S.C. 5851). Section 70.2l(g) also issued under sec. 122, 68 Stat. 939 (42 U.S.C. 2151). Section 70.31 also issued under sec. 57d, Pub. L.93-377, 88 Stat. 475 (42 U.S.C. 2077). Section 70.36 and 70.44 also issued under sec. 184, 68 Stat. 954, as amended (42 U.S.C.2077). Section 70.61 also issued under. secs. 186, 187, 68 Stat. 955 (42 U.S.C. 2236, 2237). Section 70.62 also issued under sec. 108, 68 Stat. 939, as ame~d~j (42 U.S.C. 2138).

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);

§§70.3, 70.19(c), 70.24(a} and (b), 70.32(a)(3), (5), (6), and (d), 70.36, 70.39(b) and (c), 70.4l(a)-, 70.42(a) and (c), 70.56, 70.57(b), (c), and (d),

70.58(a)-(g)(3), and (h)-(j) are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 220l(b.)); §§70.20a(d), 70.20b(c) and (e), 70.2l(c), .70.24 (b), 70.32(e) and (g), 70.56, 70.57(b) and (d) and 70.58(a)-(g)(3) and (h)-(j)

'- are issued under sec. *16i, --68 Stat. 949, as amended (42 U.S.C. 220l(i)); and

§§70.20b(d) and (e), 70.38, 70.51-70.55, 70.58(g)(4), (k), and (1) and 70.59 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.S.C. 2201(0)).

7. , Section 70. 20b is revised to read as foll O\'JS:

§70.20b General license for carriers of transient shipments of formula quantities of strategic special nuclear material, special nuclear material of moderate strategic significance, special nuclear material of low strategic significance, and irradiated reactor fuel *

(a) A general license is hereby iss~ed to any person to possess transient 1 shipments of the following kinds and quantities of special nuclear material:

(1) A formula quantity of special nuclear material of the types and quantities subject to the requirements of §§73.20, 73.25, 73.26 and 73.27 of this chapter; (2) Special nuclear material of moderate and low strategic signif-icance of the types and quantities subject to the requirements of §73.67; (3) Irradiated reactor fuel of the type and quantity subject to the requirements of §73.37.

(b) Persons generally licensed under this section are exempt from the

• requirements of Parts 19 and 20 of this chapter and the requirements of this part, except §§70.32(a) and (b), 70.52, 70.55, 70.61, 70.62 and 70.71.

(c) Persons generally licensed under this section to possess a transient shipment of special nuclear-material of the kind and quantity specified in paragraph (a)(l) of this section shall provide physical protection for that shipment in accordance with or equivalent to §§73.20(a), 73.20(b) and 73.25

-of*this *eltapter-and comply .,.,,ith the requirements of §§73.709 and 73.7l(b) of this chapter from the time a shipment enters a United States port until it exits that or another port.  !* '

(d) Persons generally licensed under this secticn to possess a transient shipment of special nuclear material of moderate or low strategic significance of the kind and quantity specified in paragraph (a)(2) of this section shall provide physical protection for that shipment in accordance with or equivalent to §73.67 of this chapter and shall comply with the requirements of §73.7l(b) of this chapter.

(e) Persons generally licensed under this section*to possess a transient I

shipment of irradfated reactor fuel of the kind and quantity specified in para-graph (a)(3) of this section shall provide physical protection for that shipment in accordance with or equivalent to §73.37 of this chapter and shall comply with the requirements of §73.7l(b) of this chapter.

(f)(l) Persons generally licensed under this section who plan to carry transient shipments with scheduled stops at United States ports, shall notify by U.S. Mail --

(i) The Administrator of the appropriate Nuclear Regulatory Commission Regional Office listed in Appendix A of Part 73; and (ii) The Material Transfer Safeguards Licensing Branch, Division of Safeguards, Office of Nuclear Material *safety and Safeguards, U.S. Nuclear Regulatory Commis-sion, Washington, DC 20555.

(2) The licensee shall assure that--

(i) The notification will be received 14 days before the first scheduled stop in the United States; (ii) The Administrator of the appropriate Nuclear Regulatory Commission Regional Office has been notified by telephone 14 days in advance of the

-shipping*-d-ate that an advance shipping notice has been sent by mail; and (iii) Notification of any changes to the shipment itinerary will be made, as soon as reaso.nably possible, prior to the sh',i pment date.

• (3) Persons who are generally licensed under §70.20b(a)(l) must include the information listed in (i) through (viii) of this paragraph. Persons who are generally licensed under §70.20b(a)(2) and (3) must include the information listed in (i) through (vii) of this paragraph.

(i) Location of all scheduled stops in United States territory; (ii) Arrival and departure times for all scheduled stops in United States territory; (iii) The type of transport vehicle;

• (iv) A physical description of the shipment (elements, isotopes, enrich-ments, etc);

(v) The number and types of containers; (vi) The name and telephone number of the carrier s representative at 1

each stopover location in United States territory; (vii) For shipments between nations that are not party to the Conven-tion on the Physical Protection of Nuclear Material, provide assurances, as far as practicable, that this nuclear material will be protected during inter-national transport at levels described in Annex 1 to that Convention (see Appendices E and F to Part 73); and 1* (viii) A physical protection plan for implementing the requirements of

§70.ZOb(c); which will include the use of armed personnel to protect the shipment durjng the time the shipment is in a United States port.

(g) Persons generally licensed under this section making unscheduled stops at United States ports, immediately after the decision to stop, shall:

(1) Provide to the Material Transfer Safeguards Licensing Branch, the

---informat-wn--requi red under .paragraph (f) of this section.

j- '

(2) In the case of persons generally licensed under paragraph (a)(l) of this section, arrange for local law enforcement authorities or trained and qualified private guards to protect the shipment during the stop.

(3) In the case of persons generally licensed under paragraph (a)

(2) of this section, arrange for the shipment to be protected as required in §73.67 of this chapter.

(4) In the case of persons generally licensed ~nder paragraph (a)

(3) of this section, arrange for the ship~ent to be protect~d as required t in §73.37(e) of this chapter.

(5) Implement these arrangements within a reasonable time after the arrival o{ the 'shipment at a United States port to remain in effect until the shipment exits that or another port.

Part 73 - PHYSICAL PROTECTION OF PLANTS AND MATERIALS

8. The authority citation for Part 73 is rftised to read as follows:

AUTHORITY: Secs. 53, 161, 68 Stat. 930, 948, as amended, sec. 147, 94 Stat.

780 (42 U.S.C. 2073, 2167,_ 2201); sec. 201, 88 Stat. 1242, as amended, sec. 204, 88 Stat. 1245 (42 U.S.C. 5841, 5844)

• Section 73.37(f) is also issued under sec. 301, Pub. L.96-295, 94 Stat. 789 (42 U.S.C. 5841 note).

For the purposes of sec. 223, 68 Stat. 958, as amended (42 U.S.C. 2273);

§§73.21, 73.37(9), 73.55 are issued under sec. 161b, 68 Stat. 948, as amended (42 U.S.C. 220l(b)); §§73.20, 73.24, 73.25, 73.26, 73.27, 73.37, 73.40, 73.45, 73.46, 73.50, 73.55, 73.67 are issued under sec. 16li, 68 Stat. 949, as amended

--(42 *u.s:c*2201(i )); and §§t3.20(c)(l), 73.24(b)(l), 73.26(b)(3), (h)(6), and I* ,

(k)(4), 73.27(a) and (b), 73.37(f), 73.40(b) and (d), 73.46(9)(6) and (h)(2),

73.50(9)(2), (3)(iii)(B) and (h), 73.55(h)(2), and (4)(iii)(B), 73.70, 73.71, 73.]2 are issued under sec. 1610, 68 Stat. 950, as amended (42 U.. S.C. 2201(0)).

9. In §73.1, a new paragraph (b)(8) is added to read as follows:

~73.1 Purpose and scope.

• *

• I

( b) * * *

(8) This part prescribes requirements for advance notice of export and import shipments of special nuclear material including irradiated reactor fuel.

10. Section 73.72 is revised to read as follows:

§73.72 Requirement for advance notice of shipment of formula quantities of strategic special nuclear material~~r special nuclear material of moderate strategic significance.

(a) The requirements of this section apply to each licensee who plans to import, export, transport, deliver to a carrier for transport in a single shipment, or take delivery at the point where it is delivered to a carrier the following materials:,

(1) Formula quantities of strategic special nuclear material; or

~. (2) Special nuclea~ material of moderate strategic significance.

(b) Each licensee in (a) of this section shall notify by U.S. Mail postmarked at least 14 days in advance of the shipping date--

(1) The Material Transfer Safeguards Licensing Branch, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commis-sion, Washingotn, DC 20555; and (2) The Administrator of the appropriate Nuclear Regulatory Commission Regional Office listed in Appendix A.

(c) Each licensee shall include the following information in the notifica-tion:

(1) The name(s), address(es), and telephone number(s) of the shipper, receiver and carrier(s);

(2) A physical description of the ship~ent (elements, isdtopes, enrich-ments, etc.);

(3) A listing of the mode(s) of shipment, transfer point(s) and route(s) to be used; (4) The estimated time(s) and date(s) of arrivil and departure; and (5) For export shipments, assurance.that this nuclear material will be protected during international transport at levels described in Anne~ I to

'" .,=._

the Convention on the Physical Protection of Nuclear Material (see Appendix E of th i s Pa rt) *

(c) Each licensee shall_ notify the Administrator of the appropriate Nuclear Regulatory Commission Regional Office by telephone 14 days in advance of the shipping date that an advance notice has been sent by mail and of any changes to the shipment itenerary prior to the shi pm,ent date. Road shipment or trans-fers with one-way transit times of one hour or less in duration between instal-

~ lations of a licensee ere exempt from the requirements of this section.

11. Section 73.73 is added to read as follows:

§73.73 Requirement for advance notice of export shipments of special nuclear material of low ~trategic significance and irradiated reactor fuel.

I*

r (a) Each licensee who plans to export the following materials shall notify the Material Transfer Safeguards Licensing Branch, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555 by U.S. Mail postmarked at least 14 days in advance of the shipping date of the proposed shipment of:

(1) Special nuclear material of low strategic significance; and (2) Irradiated reactor fuel.

(b) The advance notification must be fo writing and include the following information:

(1) The name(s), address(es), and telephone number(s) of the shipper, receiver and carrier(s);

(2) A physical description of the shipment (elements, isotopes, enrich-ments, etc.);

(3) A listing of the mode(s) of shipment, transfer points, and routes to be used; (4) The estimated dates and times of arrival and departure; and (5) Assurance that this nuclear material will be protected during inter-

• national transport at levels described in Annex I to the Convention on the Physical Protection of Nuclear Material (see Appendix E of this Part).

12. Section §73.74 is added to read as follows:

-..... §73.74 Requirement for advance notice for the importation of nuclear material from countries that are not party to the Convention on the Physical Protection of Nuclear Material.

(a) Each licensee who plans to import the following nuclear materials from 1

countries not p~rty to the Convention on the Physical Protection of Nuclear I- '

Material (See Appendix F of this Part) shall notify the Material Transfer Safe-

. guards Licensing Branch, Division of Safeguards, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington DC 20555 by U.S. Mail postmarked at least 14 days in advance of the shipping date of the proposed shipment of:

(1)- Formula quantities of strategic special nuclear.mat~rial; (2) Special nuclear material of moderate strategic significance containing in any part strategic special nuclear material; (3) Special- nuclear material of low strategic significance; or (4) Irradiated reactor fuel.

(b) The advance n6tification must be in writing and include the following i nformat i on :

(1) The name(s), address(es) and telephone,s~umber(s) of the shipper, receiver and carrier(s);

(2) A physical description of the shipment (elements, isotopes, enrich-ments, etc.);

• used; (3) A listing of mode(s) of shipment, transfer points, and routes to be (4) The estimated dates and times of arrival and departure; and (5) Assurances that the imported material will be protected during inter-national transport in accordance with Annex 1 to the Convention on the Physical Protection of Nuclear Material (See Appendix E of this Part).

I* ,

13. Appendix Eis added to read as follows.

0 fppendix E - LEVELS OF PHYSICAL PROTECTION TO BE APPLIED IN INTERNATIONAL TRANSPORT OF NUCLEAR MATERIAL 1_/

(From Annex 1 to The Convention on the Physical Protection of Nuclear Material)

(a) Levels of physical protection for nuclear material during storage incidental to international nuclear transport include:

(1) For Category III materials, storage within an area to which acces.s is controlled; I

(2) For Category II materials, storage. within an area under constant surveil-lance by guards or electronic devices, surrounded by a physical barrier with a limited number of points of entry under appropriate control or any area with an equivalent level of physical protection; (3) For Category I material, storage within a protected area as defined for Category II, to which, in addition, access is restricted to persons whose trustworthiness has been determined, and which is under surveillance by guards who are in close communication with appropriat~;response forces. Specific measures taken in this context should have as their object the detection and prevention of any assault, unauthorized access, or unauthorized removal of material.

• (b) Levels of physical protection for nuclear material during international transport inciude:

(1) For Category II and III materials, transportation shall take place under

~-. special precautions in~ludi~g prior arrangements among sender, receiver, and carrier, and prior agreement between natural or legal persons subject to *the jurisdiction and regulation of exporting and importing States, specifying time, lJ See Appendix C to Part 110 for the physical description of the Categories of nuclear material as set forth in Annex I to the Convention. For the purposes of this Part, the following categories of nuclear material are synonymous: ,, 1- ,

Category I is a formula quantity of strategic special nuclear material; Category II is special nuclear material of moderate strategic significance; and Category III is special nuclear material of low strategic significance.

r place and procedures for transferring transport res~onsibility;

"(2) For Category I materials, transportation shall take place under special precautions identified for transportation of Category II and III materials, and in addition, under constant surveillance by escorts and under conditions which assure close communication with appropriate response forces; (3) For natural uranium other than in the form or ore or ore residue, transportation protection for quantities exceeding 500 kilograms U shall include advance not ifi cation of shipment .specifying .mode of transport, expected time of arrival and confirmation of receipt of shipment.

14. Appendix Fis added to read as follows:

Appendix F -* Nations that are Parties to the Convention on the Physical Protection of Nuclear Material]:_/

Date of Deposit of 21st Instrument Nation of Ratification with the IAEA Czechoslovakia April 23, 1982

__.~-.,

~....__:_--

German Democratic Republic (E. Germany) February 5, 1981 Korea, *Republic of April 7' 1982 Phi 11 i pines September 22, 1981

• Sweden August 1, 1980 United States of America December 13, 1982 Dated at Washington , DC th i s  ?~ day of _ __..J.J.--~--7-1------' 1983.

Forte Nuclear Regulatory Commission.

Commission.

'{-:, f~ '

]:_I Once the Convention enters into force, an updated list of party nations will appear annually in the Department.of State 1 s publication, Treaties in Force.

Appendix F will be amended as required to maintain its currency.