ML20203B514

Forwards Draft Final Rule 10CFR110,amending NRC Regulations for Export of Nuclear Matls & Equipment.Comments Received by 860124 Will Be Considered in Preparation of Final Package

ML20203B514
Person / Time
Issue date:	01/16/1986
From:	James Shea NRC OFFICE OF INTERNATIONAL PROGRAMS (OIP)
To:	Cunningham G, Cunningham R, Minogue R NRC OFFICE OF NUCLEAR MATERIAL SAFETY & SAFEGUARDS (NMSS), NRC OFFICE OF NUCLEAR REGULATORY RESEARCH (RES), NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD)
Shared Package
ML20198A175	List: ML20198A173 ML20203B314 ML20203B336 ML20203B371 ML20203B404 ML20203B409 ML20203B414 ML20203B420 ML20203B427 ML20203B440 ML20203B449 ML20203B453 ML20203B464 ML20203B490 ML20203B496 ML20203B501 ML20203B509 ML20203B514
References
RULE-PR-110-MISC AC20-2-12, NUDOCS 8607180229
Download: ML20203B514 (13)

Text

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$ .$ WASHINGTON, D. C. 20555 A C 1 O- E

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/ JAN 101986 MEMORANDUM FOR: Robert B. Minogue, Director Office of Nuclear Regulatory Reseach Guy H. Cunningham, III Og Executive Legal Director .

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Richard E. Cunningham, Director @ or -

Division of Fuel Cycle and Material Safety, NMSS John G. Davis, Director Office of Nuclear Material Safety and Safeguards a

James M. Taylor, Director Office of Inspection and Enforcement G. Wayne Kerr, Director Office of State Programs Patricia G. Norry, Director Office of Administration Ronald M. Scroggins, Director Office of Resource Management FROM: James R. Shea, Director '

Office of International Programs

SUBJECT:

FINAL RULE AMENDING NRC'S REGULATIONS FOR THE EXPORT OF NUCLEAR MATERIAL AND EQUIPMENT (10 CFR PART 110)

Enclosed is a draft final rule with enclosures which covers several minor amendments to NRC's regulations pertaining to the export of nuclear material and equipment.

Please provide your comments on this rule by January 24, 1986. If you have any questions, please contact Elaine Hemby of my staff on ext. 27984. Your comments will be considered in the preparation of the final package which will be forwarded to EDO the end of January.

s R. Shea, Director fice of International Programs

Enclosures:

1. Draft ED0's " Approved for Publication" Notice

2. Federal Register Document

3. Regulatory Analysis

4. Draft Daily Staff Notes Item e 8607100229 PR 860714 PDR PDR HISC

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j Annroved for Publication j

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The Corrission delecated to the E01 (11 CFP 1./A(c) and (d)) the authority to develon and cronuloate rules as defined in the /PA (5 U.S.C. F51(/)) sub.iect to the limitations in .'iRC '!anual Chanter 11'3, Orcanization and Functions, Office of the Executive Director for Onerations, naranranhs 9213, 039, n19, and 110 l The enclosed rule will amend Part llo reculations pertaininn to the exnort of

nuclear naterials and enuinment b.v innosino notification reoutrerents with

respect to certain exnorts of Canadian-orinin nuclear naterials or equioment; byg.

exnandinq the neneral license for the exnort of anericiun-241 contained in

! industrial orocess control enuienent; and hv undatino the list of countries in j 6110.29 r.astricted destinations to renove recent adherents to the '!uclear Tion-Proliferation Treaty (MPT).>

J The final rule does not constitute a sinnificant cuestion of nolicv, nor does it i anend regulations contained in 11 CFR Parts 7, 0, or 0 Subnart C concerninq natters of policv. I therefore find that this rule is within the scone of nv rulenakinc authority and an proceedino to issue it.

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l Date Victor Stello, Jr.

! Actinn Executive Director

! for Onerations i

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NUCLEAR REGULATORY COMMISSton 10 CFR Part 110 Export and Import of Nuclear Equipment and Material AGENCY: Nuclear Regu?atory Commission.

ACTION: Final rule.

SUMMARY

The Nuclear Reaulatory Commission (NRC) is amending its regulations pertaining to the export of nuclear equioment and material: (1) to require certain holders of export licenses to notify the Commission in writing at least 40 days crior to reexporting Canadian-origin nuclear material or equionent; (2) to expand the general license for byproduct material to allow the export of 'N americium-241 contained in industrial process control equionent; and (3) to update the list of countries in 5110.29 pstricted destinations to delete those countries that recently have signed and ratified the Nuclear Non-Proliferation Treaty (NPT).

EFFECTIVE DATE:

FOR FURTHER INFORMATION CONTACT: Elaine 0. Hemby, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, D.C. 20555;(301) 492-7984 or Joanna Becker, Office of the Executive Legal Director, U.S. Nuclear Regulatory Comission, Washington, D.C. 20555, (301) 492-7630.

SUPPLEMENTARY INFORMATION: (1) The Executive Branch has requested the NRC to amend its regulations in ll10.50(b)(3) concerning the notification of exoort of foreign-origin nuclear material or equipment so that it will include Canadian-origin nuclear material and equipment in addition to Auctralian-origin nuclear material and equipment. This action will carry out Article XII, paragraph D of the U.S./ Canada Agreement for Cooperation which ENCLOSURE 2

2 requires the consent of Canadian authorities before export of Canadian-origin nuclear material and equipment from the U.S. In most cases, Canadian authorities have given their prior consent for retransfer at the time the material is imported into the U.S. In other cases, where the country of origin is not known at the time NRC issues the license, the license holder or aonlicant must notify NRC in writing at least 40 days orior to actual export in order to ofain U.S. Government authorization should the material or equipment be determined to be Canadian-origin. The NRC will consult with the Executive Branch to obtain Canadian consent for the shipment. Durino this ceriod, the I?

licens'ee may not ship the material or equipment until authorized by NRC.  ;

Consultations normally will be completed well within 40 days.

(2) The NRC is also amending its regulations concerning the restrictions on exports of byproduct material under general license in 5110.23(b) to allow the export of americium-241 contained in industrial orocess control eouinment. This amendment corrects an oversight in the current general license reoulations covering americium-241 which now prohibit the export of americium-241 exceeding one curie per shipment or 100 curies per year to countries listed in (110.29 t unless it is contained in petroleum exploration eautoment. Since it was never the intention of the Commission to prohibit exports of americium-241 for ,

legitimate commercial use, the amendment will correct this.

(3) The NRC is also amending its regulations in 9110.29, the list of restricted destinations for exporting nuclear materials and equipment under oeneral 2

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3 lictns:s, in ord:r to dalete tha following countries which are recent adherents to the NPT: Belize, Bhutan, Equatorial Guinea, Kiribati, St. Vincent and the Grenadines, and Seychelles. This amendment removes special restrictions on the export of nuclear materia: and equipment to countries which have adhered to the NPT, thereby continuing the U.S. Government policy of facilitatino nuclear cooneration with countries sharing U.S nonproliferation goals.

ENVIRONMENTAL IMPACT: CATEGORICAL EXCLUSION:

b T'he NRC has determined that the amendments to Part 110 in this final regulation are the type of action described in 10 CFR 51.22(e)(2). Therefore, neither an er.vironmental impact statement nor an environmental assessment has been prepared for this regulation.

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.). The Office of Management and Budget has approved the information collection requirements in 1110.50 under control number 3150 - 0036. No information collection requirements are contained in the remaining amendments to Part 110.

REGULATORY ANALYSIS The Commission has prepared a regulatory analysis of this final regulation.

The analysis examines the costs and benefits of the alternatives considered by the Commission. The analysis is available for inspection in the NRC Public w

4 Document Room,1717 H Strest, NW, Washington, DC. Single cooies of the analysis ma., be obtained from Elaine Hemby, Office of International Programs, U.S. Nuclear Regulatory Commission, Washington, DC 20555, telenhone (301) 492-7984.

REGULATORY FLEXIBILITY CERTIFICATION As required by the Regulatory Flexibility Act of 1980, 5 U.S.C. 605(b), the Commissioncertifiesthatthisrulewillnothaveasignificanteconomicimpacti on a s'ubstantial number of small entities. The exoort notification requirement amendment for exports of Canadian-origin nuclear material and equipment affects

. less than 10 licensees per year. The remaining two amendments reduce the regulatory burden on licensees by reducing the number of specific license aoplications required.

LIST OF SUBJECTS Ijl 10 CFR PART 110 Administrative practice and procedures, Classified information, Export, Import, Incorporation by reference, Intergovernmental relations, Nuclear materials, Nuclear. power plants and reactors, Penalty, Reporting and recordkeepino requirements, Scientific equipment.

9 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 Sections 552 and 553 of Title 5 of the United States Code, the following amendments to 10 CFR Part 110 are published as a document subject to codification.

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5 PART 110 - EXP0RT AND' IMPORT OF NUCLEAR EQUIPMENT AND MATERIAL

1. The authority citation for Part 110 continues to read as follows:

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

Section 110(b)(2) also issued under Pub. L.96-533, 94 Stat. 3138 (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 110.50(b)(3) also issued 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.

For the purpose of sec. 223.68 Stat. 958, as amended (42 U.S.C. 2273); 58110.20-110.29, 110.50, and 110.120-110.129 also issued under secs. 161b. and i., 68 Stat.

948, 949, as amended (42 U.S.C. 2201(b) and (i)); and 1110.53 also issued under sec. 1610., 68 Stat. 950, as amended (42 U.S.C. 2201(o)).

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2. In 5110.23, paragraph (b) is revised to read as follows:

%110.23 Excort of byproduct material.

4 (b) A general license is issued to any person to export americium-241 to any country not listed in 5110.28, except that exports of americium-241 exceeding one curie per shipment or 100 curies per year to any country listed in (110.29 -

(1) Must be contained in industrial orocess control equipment CU petroleum exploration equipment in quantities not exceeding 20 curies per device; and (2) May not exceed 200 curies per year to any one country;

3. In 5110.29, the list is evised to read as follows:

5110.29 Restricted destinations.

Afghanistan Guyana Pakistan Albania India Qatar Algeria Iran Saudi Arabia Andorra Iraq South Africa Angola Israel St Kitts Argentina Kuwait Syria Bahrain Libya Tanzania Brazil Malawi United Arab Emirates Burma Mauritania Vanuatu Chile Mozambique Yeman Arab Republic Comoros Niger Zambia Djibouti Oman Zimbabwe r - - , e , - ~, , , .---

4. In fl10.50, paragraph (b)(3) is revised to read as follows:

6110.50 Terms.

(b) (3) Unless a license specifically authorizes the export of foreign-origin nuclear material or equipment, a licensee shall notify in writing the Assistant Director for Export / Import and International

. Safeguards at least 40 days prior to export of Australian-origin or,  ;

Canadian-origin nuclear material or equipment. A licensee may not ship this material or equipment until authorized by the Assistant Director for Export / Import and International Safeguards. The Assistant Director will not authorize shipment until after obtaining the consent of the Australian Government for Australian-origin material or the Canadian Government for Canadian-origin material.

f Dated at Bethesda, Maryland, this day of ,1985.

For the Nuclear Regulatory Commission.

Victor Stello, Jr.

Acting Executive Director for Operations ENCLOSURE 2

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i REGULATORY ANALYSIS AMENDMENTS TO 10 CFR PART 110

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1. STATEMENT OF PROBLEM j The purpose of this rule is to continue NRC's efforts to simplify and clarify the Part 110 licensing requirements for the export of certain minor i

quantities of nuclear material, without compromising the Commission's

rigorous nuclear proliferation controls as required by the Atomic Energy Act of 1954, as amended.

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2. OBJECTIVES NRC focused on the following objectives in developing the amendments:

2.1 To implement arrangements to carry out the U.S./ Canada Agreement for l Cooperation with regard to a required notification to NRC by certain licensees before exoorting Canadian origin nuclear material or equipment; 2.2 To correct an oversight in the current regulations to remove restrictions on the export of americium-241 under general license; and 2.3 To remove certain countries from the current list of restricted

destinations in 5110.29 which recently have adhered to the Nuclear Non-Proliferation Treaty (NPT). This action continues the U.S.

-Government's policy of facilitating nuclear cooperation with countries sharing U.S. non-proliferation _ goals.

3. ALTERNATIVES There are no reasonable alternatives for achieving the stated objectives.

The amendments have been carefully structured by the NRC and appropriate Executive Branch agencies to ensure that there will- be no relaxation in controls with respect to nuclear material and equipment'with potential nuclear proliferation concerns.

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4. CONSEQUENCES None of these amendments will have an adverse effect on the Commission's

! responsibility for protecting the public health and safety and the common t

defense and security. The impact of the first rulemaking action on NRC export licenses is expected to be minimal. NRC believes that less than 10 holders of export licenses per year will be affected. The other two j amendments would expand the exporter's authority to export certain minor I quantities of nuclear material under general license, thereby reducing the .,

f number of actions required by exporters and the administrative burden on f the NRC.

5. DECISION RATIONALE i

In the Commission's judgment, the amendments maintain the prooer balance between the elimination of regulatory burdens on the public and the continuation of the Commission's rigorous controls on nuclear material and equipment with significant potential proliferation concerns.

6. IMPLEMENTATION There are no constraints in implementing the amendments immediately, i

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DAILY STAFF NOTES OFFICE OF INTERNATIONAL PROGRAMS Final Rule to be Signed by the EDO On ,1986, the Executive Director for Operations approved a final rule which amends 10 CFR Part 110. This rule amends the general license for the export of small quantities of nuclear material and imposes a notification requirement on certain exporters of Canadian-origin material or equipment.

This constitutes notice to the Commission that, in accordance with the i

rulemaking authority delegated to the EDO, the EDO has received this rule and proposes to forward it on to the L

' Office of the Secretary for FR publication, unless otherwise directed by

the Commission.

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h f0V W Ac2o~b It0UTING AND TItANSMffTAL SUP 12/20/85 10: (Nemo omee symbol, room nunter, inRWs Deco headas. Agencr/ Post)

3. Robin DeLaBarre. State Dept.

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Aceen Fue festo end statum Apgwovel For Cleerence Per Conwomeden As ? - ^:f For Cervecean Propese Reply circunste For Your Informatten See his V t .:r inweemsete 80s'***

,___3_. m apaAnns Robin, Enclosed are several amendments to NRC's Part 110 that are now ready for final rulemaking. We would aooreciate your reviewing the rulemaking, carticularly the follow-ing sections:

Summary Supplementary Information (US/ Canada Agreement for Coooeration)

Part 110 - Export / Import of Nuclear Equipment arid Material (List of 5110.29 restricted destinations)

Thanks, i

E. W 00100T use this form as a fttC0ftp of approwels, concurrences, deposals, cenerences, and simmer accons FWote:(Name, org, syrnbet Agency / Post) stesen peo.--Sids.

414 EWS Elaine 0. Hemby, USNRC/0IP pnene pe m ,--.

sess-sor errtosaAa. resuY4a 'OliF. 7-74

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