ML20207T039

Informs Commission of Recent Developments Re Implementation of U Import Ban Provisions of Anti-Apartheid Act of 1986

ML20207T039
Person / Time
Issue date:	02/06/1987
From:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
TASK-PII, TASK-SE SECY-87-033, SECY-87-33, NUDOCS 8703230098
Download: ML20207T039 (38)

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POLICY ISSUE (Information)

February 6, 1987 SECY-87-33 For: The Comission From: Victor Stello, Jr.

Executive Director for Operations

Subject:

SOUTH AFRICAN URANIUM IMPORTS

Purpose:

To infonn the Commission of recent developments relathd to the implementation of the uranium import ban provisions of .

the Anti-Apartheid Act of 1986.

Discussion: Pursuant to the Commission's decision with respect to SECY-86-336A, a Federal Register Notice was published on December 31, 1986 which imposes a specific licensing requirement on all imports of South African origin uranium.

Since then, a total of eight South African uranium import license applications have been received by the staff, all of which have been referred to the Executive Branch for review and comment (see list at Appendix A). As a related matter, the staff has identified a total of 11 previously issued import licenses which have not yet expired and which could be used as authority to import South. African origin uranium.

The Commission was informed of this on January 20 and the status of these licenses will be discussed in further detail below.

Executive Branch Review The staff still has not received the fonnal views of the Executive Branch on the scope of the uranium import ban provisions of the Anti-Apartheid Act.

However, on January 22, the staff received from the Treasury Department a copy of that agency's draft " South African Import Ban Regulations" (Appendix B). As the Commission l

will recall, by Executive Order the Treasury Department has been given the primary responsibility for implementation of the Anti-Apartheid Act within the Executive Branch.

Contact:

M. R. Peterson, IP 49-27866 07032g009e870206 yR-033 PDR

O' The Commission 2 Discussion Treasury's draft regulations differ from the NRC staf"'s (Continued) initial conclusions (see SECY-86-336A) in one important area, i.e., Treasury is proposing an interim rule which would permit the import of South African uranium ore and oxide into the U.S. for conversion and enrichment and

. subsequent reexport to third countries (so-called " temporary imports"). The staff has reviewed the analysis accompanying Treasury's draft regulations and has identified no information not previously available to NRC which supports

-Treasury's proposed position allowing temporary imports.

However, citing the colloquy among Senators Lugar, McConnell, and Ford, Treasury proposes to " seek clarification of the intended scope of the uranium import ban" through publication of an interim rule which would

-permit temporary imports. This rule would be effective only' through July 1,1987, during which period comments from the public and other interested parties would be solicited. The less controversial provisions of the uranium. import ban would be implemented by Treasury in a separate final rule '

which would permit the import of UF6 or other forms of uranium of South African-origin which have been "substantially transformed" in another country outside South Africa or the United States. Treasury hopes to publish these regulations in the Federal Register in early February.

The staff has been informally advised that both DOE and the State Department will likely not object to Treasury's proposed regulations, including the provisions authorizing temporary imports. Accordingly, by mid-February NRC can expect receipt of the Executive Branch's formal views on the scope of the import ban. These views are expected to also include recommendations on NRC's pending import licenses as well as the Executive Branch's proposals with respect to taking any action on the previously issued import' licenses.

The staff does not believe it appropriate for the Commission to provide formal comments on Treasury's draft regulations prior to their publication in the Federal Register. We have, however, reminded Treasury informally that the Commission is not required to adopt the Executive Branch's position on the scope of the import ban and that the NRC staff's initial position on temporary imports differs from Treasury's proposal, although the Commission itself has not made a final judgment on the matter. The staff notes that the draft regulations clearly state that imports of South African uranium must be accompanied by a valid NRC import nsi.,... ,i ,

4 The Comission 3 Discussion: license. In this regard, the Customs Service has already (Continued) notified its offices of NRC's December 31 rulemaking action and advised that "no uranium of South African origin in any form may be imported without a specific license issued by NRC" (Appendix C).* As a result of these measures, the staff believes that the Comission's ability to make its own l independent and final decisions on the scope of the import

! ban has not been prejudiced by any of the Executive Branch's past or. proposed actions.

As soon as the formal views of the Executive Branch are received, the staff will prepare a Comission action paper with recommended final Comission positions on (1) the scope of the uranium import ban; (2) the action to be taken with respect to the recentl applications; and (3) ythe received action import to be takenlicense with respect to-the previously issued uranium import licenses.

Previously issued im) ort licenses. As the Comission was advised on January 20, the staff first recalled the '

existence of the previously issued and still active uranium import licenses when a licensee informed NRC of an import of enriched UF6 of South African origin into the U.S. on or about January 5 when seeking clarification of the Comission's December 31 Federal Register notice. This import, involving 4800 kilograms of material, is currently being fabricated into fuel elements by Westinghouse in South Carolina and will eventually be reexported to Spain (under an existing NRC export license) to fuel the Zorita nuclear power reactor. This material was enroute to the U.S. from Europe at the time NRC's revised regulations went into effect on December 31 The staff has contacted all holders of still active uranium import licenses and none has indicated any intention to use these licenses to import additional South African material at this time. A letter has also been sent to these licensees requesting them not to use their licenses to import South African material while the Commission (in consultation with the Executive Branch) reviews the status of these licenses and asking licensees to inform NRC of any plans to import under these licenses (AppendixD). The Executive Branch has also been requested in writing to provide its views on the appropriate course of action to take with respect to the previously issued licenses (Appendix E). A list of the import licenses is attached to the staff's letter to the Executive Branch.

In practice, it will be difficult for the Customs Service to recognize all South African origin uranium since shipping papers inspected by Customs representatives may not show this information, particularly for material that has been processed in another country enroute to the U.S.

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. The Comission - 4 Discussion At this time, the staff believes that no further action need (Continued) be taken with respect to the previously issued import l licenses until after receipt and evaluation of the Executive -'

Branch's views. However, should there be a significant delay in receiving Executive Branch views on this matter, or should the staff be advised of any intention to use an existing license to import South African material in any form, the staff will advise the Commission promptly and recomend an appropriate course of action.* The staff's preliminary view is that the existing licenses should be amended to preclude their being used to import any " uranium

, are or oxide produced or manufactured in South Africa."

This would accord with the staff's previous conclusions' regarding the scope of the import ban.

Conclusion:

The staff will continue to keep the Comission infomed of developments as appropriate. We propose taking no further formal action at this time in view of the fact that all prospective importers appear to be cooperating with NRC and do not plan to import any South African-origin uranium during this interim period while the Comission and the "

Executive Branch continue to formulate their final positions with respect to the scope of the import ban. The staff emphasizes, however, that continued compliance with this infomal arrangement cannot be assured absolutely and, should the situation change, the staff is prepared to request expedited Comission action regarding the existing import licenses in advance of receipt of fonnal Executive Branch views.

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Victor Stello, Jr.

Executive Director for Operations 1 Appendices: DISTRIBUTION:

A. List of Pending Import License Commissioners Applications OGC (H Street)

B. Draft Treasury Regulations OI C. Guidance to Customs Offices OCA

! D. Letter to holders of existing OIA

! import licenses OPA E. Letter to Executive Branch on EDO existing import licenses SECY

• The staff has had numerous inquiries from licensees and industry regarding the ban and it is evident from these contacts and from the receipt of several import license applications that the import of South African origin uranium, in various forms, is contemplated and can be expected to become an issue during the next several weeks.

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APPENDIX A m e e i m-- .m.

List of Pending Import Licenses February 2,1987 Licensee:

No: Quantity and Description Purpose

1) Braunkohle Transport 500,000 kgs natural U as For processing and IU87001 concentrate re-export

2) Braunkohle Transport 1,000,000 kgs natural U For processing and IU87002 Domestic / Foreign use as UF6

3) Braunkohle Transport 500,000 kgs U as For processing and ISNM87003 UF6 enriched to 5% Domestic / Foreign use ,

4) Braunkohle Transport 40,000 kgs U as UF6 Fuel fabrication by ISNM87004 enriched to 4% EXXON and re-export to KRB reactor-Germany

, 5) EXXON Nuclear Co. 167,732 kgs U enriched to 5% Conversion, ISNM87005 '

and re-expor. fabrication t to ,

Biblis A and KRBII-Germany

6) Edlow International 500,000 kgs natural U as Conversion, enrichment IU87006 concentrate and Domestic / Foreign use

7) Edlow International 500,000 kgs natural"U Enrichment and l 1087007 Domestic / Foreign use as UF6

8) Edlow International 500,000 kgs U Fabrication and ISNM87008 enriched to 5% Domestic / Foreign use

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4 DEPARTMENT OF THE TREASURY '

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Cl January 21, 1987^

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ACTION '2

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MEMORANDUM FOR INDIVIDUALS ON DISTRIBUTION LIST

SUBJECT:

Draft South African Import Ban Regulations Attached for your review and comment are copies of draft final regulations and a draft interim regulation to implement section 309 of the Comprehensive Anti-Apartheid Act, which bans the importation after December 30, 1986, of uranium ore, uranium oxide, coal, and textiles produced or manufactured in South Africa. Please provide your comments to Bill Hoffman (376-0412) or Kathryn Mann (376-0442) by COB on Monday, January 26, 1987.

The draft final regulations reflect the language of the Act on the uranium ore and oxide, coal, and textile import bans.

Uranium hexafluoride is expressly excluded from the ban. (A separate notice provides product guidelines indicating the Tariff Schedule numbers of banned imports.) The amendments further ,

interpret the parastatal import ban in section 303 of the Act as not prohibiting the return of U.S. origin products by a parastatal organization for U.S. repair or servicing and reexport. A Paperwork Reduction Act notice is also included.

The draft interim regulation permits, for a six-month period, importation of uranium ore and oxide for U.S. processing and reexport, if the importation is specifically licensed by the Nuclear Regulatory Commission. The introduction notes the confusing legislative history of the uranium ban, and requests public comment on the interim interpretation during a 60-day period after Federal Register publication. Your comments on the treatment of the legislative' history in the Supplementary Information section of the draft regulation are particularly welcome.

R. RIC D NEWCOMB DIRECTOR OFFICE OF FOREIGN ASSETS CONTROL (See attached Distribution List) l

.% l DISTRIBUTION LIST:

JOHN B. O'LOUGHLIN

. DIRECTOR, OFFICE OF TRADE OPERATIONS CUSTOMS SERVICE JOANNA M. BECKER OFFICE OF THE GENERAL COUNSEL '

NUCLEAR REGULATORY COMMISSION R. NEAL MOORE OFFICE OF INTERNATIONAL PROGRAMS IMPORT / EXPORT & INTERNATIONAL SAFEGUARDS NUCLEAR REGULATORY COMMISSION M. JEAN ANDERSON CHIEF COUNSEL, INTERNATIONAL TRADE DEPARTMENT OF COMMERCE -

EMIL CASTRO OFFICE OF EAST-WEST TRADE DEPARTMENT OF STATE JAMES NIX SPECIAL STUDIES OFFICE OF MANAGEMENT AND BUDGET PHILIP G. SEWELL

, DIRECTOR, OFFICE OF STRATEGIC PLANNING AND TECHNOLOGY DEPLOYMENT DEPARTMENT OF ENERGY JERRY PRUZAN DEPUTY GENERAL COUNSEL DEPARTMENT OF ENERGY GERRY BRUBAKER DOD/ISA/PP(N) l l

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1/20/87 Tuo 16:25:32 (WBH/SA-30) DRAFT ~

DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 545 SOUTH AFRICAN TRANSACTIONS REGULATIONS AGENCY: Department of the Treasury.

ACTION: Interim rule.

SUMMARY

This rule, effective through July 1, 1987, amends the .

South African Transactions Regulations, 31 CFR Part 545 (the

" Regulations"), to interpret the prohibition on importation of South African uranium ore and uranium oxide contained in 5 309(a)(1) and (2) of the comprehensive Anti-Apartheid Act of 1986, Pub. L.99-440, 100 Stat. 1086, as amended by H.J. Res.

756, Pub. L.99-631, 100 Stat. 3515 ("the Act"), as implemented in s 545.211 of the Regulations. ,

The uranium ore and oxide import prohibition in 5 309 of the Act was accompanied by certain legislative history, not accepted by all Senators, stating a Congressional intent to permit the temporary importation into the United States of South African uranium ore and oxide for processing and immediate exportation.

Because of the uncertainty concerning interpretation of this section, and the substantial harm that parties in the United States might suffer through a potentially mistaken prohibition, Treasury has determined to publish this interim rule. The interim rule allows temporary importation of uranium ore and uranium oxide subject to certain conditions. Simultaneously,

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Troccury roquasta Congrossiensi and public ccamant on tho applicability of 5 309 to imports of uranium ore and oxide for U.S. processing and exportation to third countries.

EFFE.CTIVE DATE: 12:01 a.m. Eastern Standard Time, December 31, 1986.

FOR FURTHER INFORMATION CONTACT: Marilyn L. Muench, Chief-Counsel, Office of Foreign Assets Control, Department of the Treasury, 1331 G Street, N.W., Washington, D.C. 20220 (telephone: 202/376-0408).

SUPPLEMENTARY INFORMATION: Amendments to the Regulations, .

implementing provisions of the Act that became effective on enactment or 45 days thereafter, were published on November 19, 1986 (51 FR 41906) and December 29, 1986 (51 FR -

, 46853). A final rule containing amendments implementing a 309 of the Act, effective December 31, 1986, is published elsewhere in this issue of the Federal Register. The amendment published in this interim rule interprets the South African uranium ore and oxide importation prohibitions in s 309 of the Act, effective December 31, 1986. Written comments on this rule will be accepted by the Office of Foreign Assets Control, Treasury Department, Unit SA427, 1331 G Street, N.W., Washington, D.C.

20220 through the close of business on (date 60 days after publication), 1987. If not published as a final rule on or 1

before July 1, 1987, this interim rule will lapse at midnight on that date.

Section 309(a)(1) and (2) of the Act (s 545.211 of the Regulations) prohibits the importation of uranium ore and uranium oxide produced or manufactured in South Africa, effective Decem-ber 31, 1986. On August 15, 1986, Senate floor debate took place l on an unsuccessful amendment (No. 2766) to a 311 of the Senate j bill S. 2701 (which became s 309 of the Act) to remove this ban

on uranium importation. Congressional Record, S11851-52 (daily ed., Aug. 15, 1986). A portion of this debate was not reported

in the daily edition of the Congressional Record, but was later furnished by Senator McConnell to the Treasury Department, and by Senator Lugar to the State Department, in the. form of galley -

proofs for the permanent edition of the August 15, 1986 Congres-i sional Record. In the course of this debate, Senator McConnell noted the employment impact of the bill on industries which import, process, and reexport natural resources from South Africa. Senator Lugar, Chairman of the Foreign Relations committee, responded to this concern, stating

... The bill is not designed to have any punitive impact except on products which are imported into the United States for consumption in the United

. States. I think economists have defined a distinction between temporary imports and imports for consumption. It is the latter that we are targeting when we refer to imports in this bill."

i Senator Ford then stated to Senator Lugar: ... I have had i

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[ 1/2C/87 Tua 16:25:32 (WBH/SA-30) DRAFT discussions with the leadership on my side of the aisle and we share your interpretation of the bill's intention."

The interpretation of the a 309 uranium import ban contained in the colloquy among Senators Lugar, McConnell and Ford was disputed by other senate members after passage of the Act. See, for example, Congressional Record, S17319 (daily ed., Oct. 18, 1986). Therefore, the Treasury Department has determined to seek clarification of the intended scope of the uranium import ban through publication of this interim rule, and a request for written comments from interested parties by [date 60 days after publication), 1987. The domestic uranium conversion industry could be seriously injured if the s 309 import ban on uranium ore and oxide were implemented to bar imports for processing and export through a mistaken interpretation of the Act. Competition for contracts with third-country utilities which might be lost to the domestic industry in that case would come from a number of foreign countries, including the Soviet Union. During the comment period and Treasury consideration of comments received, the Treasury Department will preserve the position of the domestic industry with respect to contracts covering uranium processing for export.

Under interim s 545.427, South African uranium ore or oxide may be imported in bond for processing and reexport pursuant to Item No. 864.05 of the Tariff schedules of the United states, provided that the imported ore or oxide is accompanied by a specific license for importation issued by the Nuclear t

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1/20/87?Tuo 16:25:32 (WBH/SA-30) DRAFT Regulatory Commission (the "NRC"). See 51 FR 47207 (Dec. 31, j 1986). In the case of uranium ore or oxide produced, marketed, or otherwise exported by a parastatal organization of south Africa, the importation must be pursuant to a contract entered into prior to August 15, 1986, and occur by April 1, 1987.

Comments on this interim rule should be addressed to Unit i

1 SA427, Office of Foreign Assets control, Treasury Department, 1331 G street, N.W., Washington, D.C. 20220. The comments must ,

be in writing, and must be received by the Office of Foreign Assets Control by 5:30 p.r., [date 60 days after publication],

1987. Comment letters received will be available for public inspection on normal working days, 9:30 a.m. to 4:30 p.m., at the Office of Foreign Assets Control, 1331 G street, N.W.,

Washington, D.C.; (202/376- ).

Since these regulations involve a foreign affairs function,

.the provisions of the Administrative Procedure Act, 5 U.S.C. 553, requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date, are inapplicable.

Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act, 5 U.S.C. 601 et seq., does not apply. Because these regulations are issued with respect to 1

a foreign affairs function of the United States, they are not subject to Executive Order 12291 of February 17, 1981, dealing with Federal regulations. The information collection requests contained in this document are being submitted to the office of Management and Budget ("OMB") under the Paperwork Reductions Act l

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1/2@/89 Tuo 86:85:32 (WsH/SA-30) DRAFT of 1980, 44 U.S.C. 3501 et seg. Notice of OMB action on-this request will be published in the Federal Register.

List of Subjects in 31 CFR Part 545 Exports, Imports, Namibia, South Africa, and Uranium.

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1. Interim 8 545.427 is added to read as follows:

l 8 545.427 Temporary imports in bond of uranium ore and oxide for processing and exportation under pre-enactment contract.

, (a) The prohibition in s 545.211 does not apply to importa-tion in bond of uranium ore or uranium oxide produced or manufactured in South Africa, when such importation is made solely for processing in the United States and exportation of the products of that processing, provided that the following .

requirements are met:

(1) the importation of the uranium ore or oxide has been authorized by specific license issued by the U.S. Nuclear l

Regulatory Commission (NRC), a copy of which is presented to the U.S. Customs Service prior to or at the time of importation; j (2) the importation is properly classified under Item No. 864.05 of the Tariff Schedules of the United States as an

importation in bond for processing and reexpor.; and i

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1/20/87 Tuo 16:25:32 (WBH/SA-30) ~ DRAFT 7-(3) if the uranium ore or oxide was produced, marketed or otherwise exported by a parastatal organization of South Africa, the importation is pursuant to a contract entered into prior to August 15, 1986, and occurs no later than April 1, 1987.

4 (b) This interim rule shall lapse at midnight on July 1,

! 1987,. provided that importations made prior to that time pursuant to this interim rule shall continue to be subject to its require-ments.

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[2. section.545.901 is revised to read as follows: r is s s.

s 545.901 Paperwork Reduction Act notice.

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The information collection requiremont's in as 545.503, 545.504, 545.601, and 545.602 have been approved by the office of Management and Budget (OMB) and have been assigned. control number -...

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1505-0091. The information collection requir_.encats of a 545.807 have been approved by OMB and assigned control number 1505-0097.

The information collection requirements of ss 545.603 and 545.604 have been approved by OMB and assigned control number 1505-009_.]

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~ DEPARTMENT OF THE TREASURY h

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4 T Officrt/of l'oreign Assets Control i e.hi- ,

s 31,C.R.R. Part 545 g pi g pouth African Transactions Regulations N

'i i AGENCY: Department of the Treasury.

' ACTION: Final' rule.

SUMMARY

This rule amends the South African Transactions ,-

Regulations, 31 C.F.R. Part 545 ("the Regulations"), to implement f

' S 309 of the Comprehensive Anti-Apartheid Act of 1986 ("the Act")', .

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l Pub. L.99-440, 100 Stat. 1086, as amended by H.J. Res. 756, Pub.

i L.99-631, 100 Stat. 3515, and to add an interpretation relating to, 5 303 of the Act. Section 309 of the Act, which became effective h

?' < at 12:01 a.m. Eastern Standard Time, December 31, 1986, prohibits

.c the importation into the United States of uranium oro, uranium oxide, coal, or textiles produced or manufactured in South Africs.

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U The rule also includes a clarifying amendment under S 303 with

, respect to U.S.-origin goods imported temporarily from South African parastatal organizations for servicing or repair.

! EFFECTIVE DATE: 12:01 a.m. Eastern Standard Time, December 31, pd 1986, except that S 545.426 is effective 4 0ctober 2, 1986, and the

! Eg amendment to S 545.901 is effective arr January _ , 1987.

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,- FOR FURTHER INFORMATION CONTACT: Marilyn L. Muench, Chief Counsel, Office of Foreign Assets Control, Department of the Treasury, 1331 G Street, N.W'., Washington, D.C. 20220 (telephone: 202/376-0408).

SUPPLEMENTARY ~INFORMATION: In Executive Order 12571 of October 27, 1986, 51 F.R. 39505 (Oct. 29, 1986), the President delegated authority to the Secretary of the Treasury to implement the Act's prohibitions ot imports of certain products from South b,;fc Africa. Most of these import prohibitions were effective on

>3 gp October 2 or 3, 1986, and were implemented pursuant to a final rule published on November 19, 1986, at 51 F.R. 41906. In addition, the Act continued restrictions on loans to the South African -

, Government, which were likewise implemented in the November 19, 1986 rule. Restrictions on new investment in South Africa (including loans to the private sector) and a prohibition on South '

African Government bank accounts in U.S. depository institutions, effective November 16, 1986, were implemented in a final rule published on December 29, 1986, at 51 F.R. 46853.

Guidelines are published today in a separate notice related to this final rule delineating the products subject to the ban on importation into the United States of uranium ore, uranium oxide, textiles, and coal. The U.S. Customs Service will determine whether particular merchandise is subject to exclusion pursuant to these guidelines. In addition, an interim rule is published elsewhere in this* issue of the Federal Register permitting the temporary importation into the United States of South African

1

. urcniun oro cnd oxido for procaccing cnd inssdiato exportetton.

These regulations also contain an interpretation indicating that U.S.-origin goods imported temporarily from South African parastatal organizations for repair or servicing in the United States are not goods marketed or otherwise exported by a parastatal organization within the meaning of 5 303 of the Act, and therefore are exempt from the prohibition of 5 545.208. The U.S. Customs Service will allow such importations to be made under bond.

The Treasury Department is also amending the Regulations to reflect approval by the Office of Management and Budget of the information collection provisions contained in SS 545.603 and 545.604 of the-Regulations.

Since these regulations involve a foreign affairs function, the provisions of the Administrative Procedure Act, 5 U.S.C. 553, requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date, are inapplicable.

! Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act, 5 U.S.C. 601 et seg., does not i apply. Because these regulations are issued with respect to a foreign affairs function of the United States, they are not subject to Executive Order 12291 of February 17, 1981, dealing with Federal regulations.

List of Subjects in 31 C.F.R. Part 545

_4 .

Coal, Imports, Namibia, Parastatal organizations, South Africa, Textiles, Uranium.

I For the reasons set forth in the preamble, 31 C.F.R. Part 545 is amended as follows:

PART 545 -- SOUTH AFRICAN TRANSACTIONS REGULATIONS

1. The Authority citation for Part 545 continues to read as follows:

Authority: 50 U.S.C. 1701 et seq.; E.O. 12532, 50 F.R. 36861, Sept. 10, 1985; E.O. 12535, 50 F.R. 40325, Oct. 3, 1985; Pub. L.99-440, 100 Stat. 1086; Pub. L.99-631, 100 Stat. 3515; E.O. 12571,,

51 F.R. 39505, Oct. 29, 1986.

2. Section 545.211 is added to read as follows:

l 5 545.211 Prohibition on importation of South African uranium ore, uranium oxide, coal, and textiles.

(a) Notwithstanding any other provision of law, no l (i) uranium ore, (ii) uranium oxide, (iii) coal, or (iv) textiles l

that are produced or manufactured in South Africa may be imported l

into the United States.

(b) For purposes of this section, the term " textiles" does not include any article provided for in item 812.10 or 813.10 of the Tariff Schedules of the United States, 19 U.S.C.

1202.

3. Section 545.203 (f) is added to read as follows:

(f) The effective date of the prohibition in S 545.211 is 12:01 a.m. Eastern Standard Time, December 31, 1986.

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4.

Section 545.425 is added to read as follows:

S 545.425 Substantial transformation of uranium ore and oxide.

Articles such as uranium hexafluoride, which are produced from uranium ore or uranium oxide and which the U.S. Customs .

Service determines to have been substantially transformed outside the United States, are not subject to the import prohibition of S 545.211.

5. Section 545.426 is added to read as follows:

S 545.426 Repair of U.S.-origin goods exported by South African parastatals.

The temporary return from South Africa to the United States of U.S.-origin goods for repair or servicing and re-export is not considered an exportation by a parastatal organization of South l

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Africa purcuant to-5 545.208 of this part.

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6. Section 545.901 is revised to read as follows:

5 545.901 Paperwork Reduction Act notice.

l The information collection requirements in SS 545.503, 545.504, 545.601, and 545.602 have been approved by the Office of Management and Budget (OMB) and have been assigned control number 1505-0091. The information collection requirements of 5 545.807 have been approved by OMB and assigned control number 1505-0097.

The information collection requirements of SS 545.603 and 545.604 have been approved by OMB and assigned control number 1505-009,_.

Dated: January __, 1987. f ,

R. Richard Newcomb Director Office of Foreign Assets Control.

Approved: January __,, 1987 Francis A. Keating, II Assistant Secretary (Enforcement) .

Billing Coda 4840-25 t

31 C.F.R. Part 545 ,

South African Transactions Regulations -- Product Guidelines AGENCY: Department of the Treasury.

ACTION: Notice of Intespretation.

SUMMARY

Notice is hereby given that the guidelines set forth below will be used by the U.S. Customs Service of the Department of the Treasury in determining which products are subject to the ban imposed by S 309 of the Comprehensive Anti-Apartheid Act of 1986, Pub. L.99-440, 100 Stat. 1086

("the Act"), as amended by H.J. Res. 756, Pub. L.99-631, 100 Stat. 3515, on importations from South Africa of uranium ore, uranium oxide, coal, and textiles. Section 309 of the Act is implemented in the South African Transactions Regulations

(" Regulations"), 31 C.F.R. Part 545, at S 545.211, as set forth in a final rule regarding South Africa that is being published in conjunction with this notice.

EFFECTIVE DATE: 12:01 a.m. Eastern Standard Time, December 31, 1986.

ADDRESSES: Copies of this notice and the South African

'Trenasctions R39ulations are available et the Office of Foreign Assets Control, U.S. Department of the Treasury, 1331 G Street, N.W., Washington, D.C. 20220. Copies of the notice are available at the U.S. Customs Service, Office of Commercial Operations, 1301 Constitution Avenue, N.W., Washington, D.C.

, '20229.

I For further information contact: Harrison Feese, U.S. Customs Se'rvice, Office of Commercial Ope' rations, 1301 Constitution Avenue, N.W., Washington, D.C. 20229 (telephone: 202/566-5307).

SUPPLEMENTARY INFORMATION: Section 309 of the Act (Regulations, S 545.211) prohibits the importation of uranium

• ore, uranium oxide, coal, and textiles produced or manufactured in South Africa. A final rule implementing S 309 of the Act, as delegated to the Secretary of the Treasury pursuant to Executive Order 12571 of October 27, 1986, 51 F.R. 39505 (Oct. 29, 1986), is published elsewhere in this issue of the Federal Register. This notice is published in conjunction with that final rule to inform interested persons of the guidelines to be employed by the U.S. Customs Se'rvice in determining which products are subject to the ban of S 309. The guidelines are drawn from the Tariff Schedules of the United States (" TSUS") , 19 U.S.C. S 1202, and include the appropriate TSUS numbers for each prohibited item. Persons with questions concerning product classifications should contact the U.S. Customs Service office indicated above. In addition, an interim rule is published

-3 oloswhero in thic iogua of the Federal Rsgictor paraitting the temporary importation into the United States of South African uranium ore and oxide for processing and immediate exportation.

This notice also clarifies an earlier notice published by the Department of the Treasury at 51 F.R. 41911 (Nov.19,1986) defining agricultural products and articles suitable for human

~

consumption prohibited pursuant to S 319 of the Act. That notice indicated that the ban on agricultural products did not include skins of animals, or pets, provided they were imported for personal use only. That guideline remains in force, but it should be noted that, pursuant to TSUS 813.20, the skins of game animals (including birds and fish) must have been killed in South ,

Africa by a returning resident of the United States and imported for personal use and noncommercial purposes. Pets continue to be exempt if imported for personal use and noncommercial purposes, '

as they are not agricultural products within the meaning of the Act. The foregoing is inapplicable if the products were grown, produced, manufactured, marketed, or otherwise exported by a parastatal organization of South Africa.

(Section 309 of the Comprehensive Anti-Apartheid Act of 1986, Pub. L.99-440, 100 Stat. 1086, as amended by H.J. Res. 756, Pub.

L.99-631, 100 Stat. 3515)

Product GLidelines

L t I. Uranium Ore and Uranium Oxida The categories uranium ore and uranium oxide include the following:

1. TSUS 601.S7 - uranium ore

2. TSUS-422.50 - uranium oxide II. Coal This category includes the following:

1. TSUS 521.3120

2. TSUS 521.3180 III. Textiles This category includes the following:

1. All merchandise classified in Schedule 3 of the TSUS

2. Schedule 6:

a. TSUS 696.1510 -

Sails

3. Schedule 7: -

c.- TSUS 700.72 -

700.80 -

Footwear with uppers of fiber

b. TSUS 702.06 -

703.16 -

Headwear

c. TSUS 703.80 -

703.95 -

Headwear

d. TSUS 704.05 -

704.95 -

Gloves

e. TSUS 705. 85M ui - M. WE Cloves

. f. TSUS 706.32 -

706.41 -

Iv; gage, etc. ,

g. TSUS 706.47 -

Luggcge, etc. '

h. TSUS 727.82 -

Cotton pillows

. i. TSUS 748.45 -

748.55 -

Wearing apparel

j. TSUS 772.3115 -

772.3140 -

Wearing apparel

k. TSUS 791.74 -

Wearing apparel

4. Schedule 8 of the TSUS and the Appendix: ,

All textiles and textile articles classified in Schedule 8 and the Appendix except TSUS numbers 812.10 and 813.10.

Dated: January __, 1987.

R. Richard Newcomb Director Office of Foreign Assets Control.

Approved: January __, 1987.

Francis A. Keating, II Assistant Secretary (Enforcement).

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9 8

APPENDIX C

9 J

TELEX 31 DEC &6 U.S. CUSTOMS SERVICE URGENT COMMERCIAL COMPLIANCE DIVISION HARRISON FEESE - LOU ALFANO 566-5307 TO ALL REGIONAL COMMISSIONERS

• ALL DISTRICT DIRECTORS ALL. AREA DIRECTORS ALL PORT DIRECTORS ALL SPECIAL AGENTS IN CHARGE ALL RESIDENT AGENTS IN CHARGE ALL CUSTOMS ATTACHES ALL SENIOR CUSTOMS REPRESENTATIVES ALL CUSTOMS REPRESENTATIVES FROM  : ASSISTANT COMMISSIONER COMMERCIAL' OPERATIONS

SUBJECT:

TRADE WITH SOUTH AFRICA AND NAMIBIAr IMPORTS OF COAL URANIUM ORE, URANIUM OXIDE AND TEXTILES PROHIBITED EFFECTIVE JANUARY 1, 1987 URGENT PLEASE PASS IletEDIATELY TO ALL IMPORT SPECIALISTS & INSPECTORS REFitWJECES: COMPREHENSIVE ANTI-APARTHEID ACT OF 1986, PUBLIC LAW 99-440, DATED OCTOBER 2, 1986; HEADQUARTERS TELEX 14756, DATED NOVEMBER 14, 1986 BACEGROUND:

THE REFERENCED TELEX PROVIDED INSTRUCTIONS

- CONCERNING SANCTIONS AGAINST SOUTH APRICA. PARAGRAPH 5 OF THE TELEX ADVISED THAT IMPORT PROHIBITIONS ON SOUTH AFRICAN URANIUM ORE, URANIUM OXIDE, COAL, AND TEXTILES, ON TRANSACTIONS INVOLVING NON-PARASTATALS WOULD BECOME EFFECTIVE AT 12:01 A.M., EASTERN STANDARD TIME, JANUARY 1, 1987.

THIS TELEX IS TO SUPPLEMENT THE REFERENCED TELEX BY PROVIDING DEFINITIONS OF THESE COMMODITIES.

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ACTION: ADVISE ALL CUSTOMS OFFICERS AND INTERESTED PARTIES THAT:

1. THIS TELEX IS INTENDED TO SUPPLEMENT THE REFERENCED TELEX.

2. FOR THE PURPOSES ,OF THE SOUTH AFRICAN SANCTIONS, THE FOLLOWING DEFINITIONS APPLY:

A. URANIUM ORE - TSUS ITEM NO. 601.57

~

B. URANIUM OXIDE - TSUS ITEM NO. 422.50 C. COAL - TSUS ITEM NOS. 517.51 AND 521.31 D. TEXTILES - ALL MERCHANDISE CLASSIFIED IN SCHEDULE 3, TSUS, AND THE FOLLOWING TSUS(A) ITEM NOS:

696.1510; 700.72 THROUGH 700.80; 702.06 THROUGH 703.16; 703.80 THROUGH 703.95r 704.05 THROUGH 704.95 705.8520; 706.32 THROUGH 706.41; 706.47; 727.82r 748.45 THROUGH 748.55; 772.3115 THROUGH 772.3140r 790.57 791.74r ALL TEXTILES AND, TEXTILE ARTICLES CLAhSIFIED IN SCHEDULE 8 AND IN THE APPENDIX TO THE TARIFF SCHEDULES (" SCHEDULE 9")

EXCEPT TSUS ITEM NOS. 812.10 AND 813.10.

3. HOWEVER, IN COMPLIANCE WITH AN INTERIM REGULATION OF THE OFFICE OF FOREIGN ASSETS CONTROL, URANIUM ORE AND URANIUM OXIDE TEMPORARILY IMPORTED UNDER BOND FOR PROCESSING AND SUBSEQUENT REEXPORTATION UNDER THE PROVISIONS OF TSUS 864.05 SHALL BE ALLOWED.

4. FURTHER, THE NUCLEAR REGULATORY COMMISSION HAS ISSUED REGULATIONS EFFECTIVE TODAY WHICH REMOVES FROM GENERAL IMPORT LICENSE UNDER THEIR REGULATIONS, URANIUM OF SOUTH AFRICAN ORIGIN IN ANY FORM. THEREFORE, NO URANIUM OF SOUTH AFRICAN ORIGIN IN ANY FORM, REPEAT, ANY FORM, MAY BE IMPORTED WITHOUT A SPECIFIC '

LICENSE ISSUED BY THE NUCLEAR REGULATORY COMMISSION.

x MANUS A STANT COMMISSIONER ,

(COMMERCIAL OPERATIONS) ii

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APPENDIX D

g+ k UNITED STATES

[ t- NUCLEAR REGULATORY COMMISSION 1 [ msmuorou.n. c. 2osss I

, \..../ FEB = 31907 Separative Work Unit Corporation'(SWUCO) 19366 Montgomery Village Avenue l Gaithersburg, Maryland - 20879 Gentlemen:..

1 Section 309(') a of the Comprehensive Anti-Apartheid Act of 1986 provides that no " uranium ore or uranium oxide produced or manufactured in South Africa" may be imported into the United States after December 31, 1986. As a result of this-legislation the Nuclear Regulatory Commission, on December 31, 1986, revised its regulations to require a specific license for the import of uranium in any form of South Afr.ican origin. This revision to our regulations modifies the general import license at 10 CFR 110.27, which has been in effect since January 1985, to preclude its use for the import of uranium of South African origin. -

As a related matter, we have reviewed our records to identify any specific import licenses, issued prior to January 1985, which are still valid and under which material _of South African origin cop!d enter the U.S. As a result of. -

this _ review, we have identified the following license issued to your company:

License Number Material License Expires ..

ISNM82016 a. 2,000,000 pounds natural U October 1,1987  !

. b. 300,000 kgs U enriched to 5% l Although'the December 31, 1986 revision to our general import licensing

. authority did not directly affect your existing import license, the provisions '

of the Anti-Apartheid Act may nevertheless require modification to this license. ~We have requested the' views of the Executive Branch on this matter and the Comission will decide upon an appropriate course of action in the i near future. In the interim, we are requesting you and all other holders of specific import licenses to refrain from importing any material of South African origin under these licenses while our review is under way. Should you anticipate a requirement to utilize your existing license tq import any South  ;

African uranium, your cooperation in advising us of your plans before the ,!

import is made would be greatly appreciated. l l Please call me at (301) 492-7866 or R. Neal Moore at 492-7984 should you have  ;

any questions. '

Sincerely, I

~

v Ma M . Peterson, Assistant Director Export / Import and International Safeguards Office of International Programs l

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APPENDIX E

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L3 *M ?Ald6Mcdh W fs- sEJCg 4Qii EM C

, ~. DISTRIBUTION: .

IP._r/f -

. .tW' f 7 E . c.IPEI r/f ED0 r/f PDR VStello , ED0 JBecker, 0GC Mr. Carlton Thorne, Director LWirfs , NMSS Office of Huclear Export / import Control DSayles , NMSS Pureau of Oceans and International CHassell, OR00 .'

BStout, MM Envirormental and Scientific Affairs JRussell, OR00 U.S. Department of State Washington, DC 20520 TRehm EDO

Dear Mr. Thorne:

~

Subs'equent 'to,the cassage of the Comprehensive Anti-tpartheid Act of 19869end in the absence of further implementing regulations still under consideration by the Executive Branch, NRC import ragulations were revised to delete the general import license authority in 10 CFR 110 to reouire specific licenses for the import of any uranium of South . African origin. This change became effective December 31, 1986.

However, there are a number of valid, orevicusly issued import licenses which were issued prior to the broadening of our general import provisions in 1985 .

and which remain available for the licensee's use. He have identified ten outstanding licenses with expiration dates extending 16to 1987 and beyond.

These are tabulated in the attachment to this letter.

At least one shipment of South Af rican origin material amounting to 4,800 kilograms or low-enriched uranium, in the form of UF , is known to have been imported against one of these licenses (ISNM830ll) sknce January 1,1987. We are not aware of any other proposed imports under these licenses in the immediate future, but the possibility of additional imports cannot be ruled out. .

We are considering what action, if any, might be appropriate with respect to these existing licenses. We would appreciate your views and comments on this matter before we submit any recommended course of action to the Commission.

l Sincerely, original signed by hin R. Peterson i

Marvin R. Peterson, Assistant Director l Export / Import and International l Safeguards

)

Office of International Programs l

Attachment:

l As stated cc w/ attachment: c, i 4. nart, uut

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s License No./ Licensee Expires 5

1) 1078019' Edlow International Co. *

• December 31, 1988 Unlimited Ouantities of Source Material in any form.

2) ISNM81001 Westinghouse Electric Corp. December 31, 1990 25,225 Kilograms U enriched to 3.6%

3) ISNM81017 Transnuclear, Inc. ~

' January 1, 1988 241.252 Kgs U enriched to 90% and 5.746 Kgs Pu in spent fuel

4) ISNM82015 Phibro-Salomon, Inc. October 1,1987 6

500,000 Kgs U, including normal U and U enriched to 5%, in any form *

'except spent fuel .

5) ISNM82016 Separative Work Unit Corp. October 1,1987 a) 2,000,000 pounds natural U in any form b) 300,000 kilograms enriched U to 5% in any form

6) ISNM82020 Edlow International Company December 1, 1992 5,000,000 kilograms U enriched to 5% as UF6 and UO 2 '

7) ISNM83003 New York Nuclear Corporation February 4, 1988 5,000,000 kilograms U enriched to 5%. No form specified.

8) ISNM83005 Transnuclear, Inc. April 1, 1988 500,000 kilograms U enriched to 5%. No form specified.

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2 License'No./ Licensee Expires

9) ISNM83011 Braunkohle Transport, USA July 1, 1988 5,000,000 kilograms U natural and enriched to 4%

10) ISNM83025

~Exxo.. Nuclear Co., Inc. , , January 1, 1989 925,000 kilograms U enriched to 5%.

11) ISNM84012 International Energy Assoc.,'Ltd. , January 1,1988 1600 kilograms U enriched to'5% -

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