0694.0122.SuppStmt.Rev.052109

SUPPORTING STATEMENT
U.S. Department of Commerce
Bureau of Industry and Security
Licensing Responsibilities and Enforcement
OMB Control No. 0694-0122

A. Justification
This request is to renew the Office of Management and Budget approval of the information
collection.

1. Explain the circumstances that make the collection of information necessary.
Section 15(b) of the Export Administration Act (EAA) of 1979, as amended, authorizes the
President and the Secretary of Commerce to issue regulations to implement the EAA including
those provisions authorizing the control of exports of U.S. goods and technology to all foreign
destinations, as necessary for the purpose of national security, foreign policy and short supply,
and the provision prohibiting U.S. persons from participating in certain foreign boycotts.
Export control authority has been assigned directly to the Secretary of Commerce by the EAA
and delegated by the President to the Secretary of Commerce. This authority is administered by
the Bureau of Industry and Security (BIS) through the Export Administration Regulations
(EAR). The EAA is not permanent legislation, and when it has lapsed due to the failure to enact
a timely extension, Presidential executive orders under the International Emergency Economic
Powers Act (IEEPA).
This collection of information involves nine miscellaneous activities described in section 758 of
the EAR that are associated with the export of items controlled by the Department of Commerce.
Most of these activities do not involve submission of documents to the BIS but instead involve
exchange of documents among parties in the export transaction to insure that each party
understands its obligations under U.S. law. Others involve writing certain export control
statements on shipping documents or reporting unforeseen changes in shipping and disposition
of exported commodities. The specific responsibilities are described more fully in the answer to
Question 2. These activities are needed by the Office of Export Enforcement and the U.S.
Customs Service (Customs) to document export transactions, enforce the EAR and protect the
National Security of the United States.

1

2. Explain how, by whom, how frequently, and for what purpose the information will be
used. If the information collected will be disseminated to the public or used to support
information that will be disseminated to the public, then explain how the collection
complies with all applicable Information Quality Guidelines.
This package supports the collection of various documents, notifications, reports, and
information exchanges that are needed by the Office of Export Enforcement and Customs to
enforce the EAR and maintain the National Security of the United States.
a) Assumption of Responsibility in Writing. (758.3(d) of the EAR): For most export
transactions, the EAR make the U.S. principal party in interest (typically the U.S. seller)
responsible for determining whether a license is required and for obtaining any required licenses.
In the case of routed transactions (transactions where the foreign principal party in interest
selects the freight forwarder and instructs the U.S. seller to ship to that forwarder), the EAR
allow the parties to shift responsibility for determining license requirements and obtaining any
needed licenses to the foreign principal party interest, making the U.S. agent of the foreign
principal party in interest the exporter for purposes of the EAR. Under the EAR, this shift is
effective only if the foreign principal party in interest expressly assumes these responsibilities in
writing and gives that writing to the U.S. principal party in interest. One writing may cover as
many shipments as the parties elect to cover. The requirement to deliver a written assumption of
responsibility is necessary to avoid ambiguity over the issue of whether the parties elected to
depart from standard EAR provisions that place these responsibilities on the U.S. principal party
in interest.
b) Information Sharing Requirements. ('758.2(d) of the EAR): In routed export transactions
where the foreign principal party in interest assumes responsibility for determining license
requirements and for obtaining licenses through its U.S. agent, the U.S. principal party in interest
must, upon request, provide the foreign principal party in interest and its forwarding or other
agent with the Export Control Classification Number (ECCN), or with sufficient technical
information to determine the ECCN of the item to be exported. In addition, the U.S. principal
party in interest must provide the foreign principal party in interest or the foreign principal=s
agent any information that it knows will affect the determination of license requirements. This
information can be transmitted electronically, orally, or by other conventional means as often as
is requested with respect to the ECCN, or as often as the U.S. principal party in interest has
knowledge that will affect the determination of the license in routed transactions. This
information sharing requirement is necessary because the foreign principal and/or its agent has
taken on the responsibility for license requirements without necessarily having all the
information necessary to make a license determination or obtain a license. The sole source of
this information in most cases is the U.S. principal party in interest.
c) Power of attorney or other written authorization. ('748.4(b) and '758.1(h): A person
who acts as an agent, applicant or exporter for a Foreign Principal Party in Interest and a person
who acts as an agent for a U.S. Principal Party in Interest must obtain a power of attorney or
other written authorization as evidence of its authority. Requiring written evidence of authority
2

is necessary to prevent uncertainty regarding the authority of persons who submit license
applications to the government on behalf of others.
d)
Procedures for unscheduled unloading. (758.5(e): Unloading in a country where a
license is required. When, due to unforeseen circumstances, items are unloaded in a country in
which they were not scheduled to be unloaded and to which the items would require a license,
the EAR require that the carrier take steps to prevent those items from entering the economy of
that country and to notify the exporter in sufficient time that the exporter will be able to notify
BIS within 10 days of the unscheduled unloading, report the facts to, and request authorization
for disposition from, BIS using mail, fax, or E-mail. The report to BIS must include a copy of
the manifest of the diverted cargo and identify the place of unloading. The report most also
propose a disposition of the items and request authorization for such disposition from BIS.
This collection is needed so that BIS may review the facts and determine whether to authorize
the proposed disposition of the items under applicable licensing policies.
(e)
Return or Unloading at Direction of U.S. Dept. of Commerce (758.8 of the EAR):
Background: Where there are reasonable grounds to believe that a violation of the EAR has
occurred or will occur with respect to a particular export from the U.S., BIS or any U.S. Customs
officer may order any person in possession or control of such shipment to return or unload the
shipment. Such person shall, as ordered, either:
(1) Return the shipment to the U.S., or
(2) Unload the shipment at a port of call and take steps to assure that it is placed in custody under
bond or other guaranty not to enter the commerce of any foreign country without prior approval
of BIS.
Notification: Upon discovery that a violation of the EAR has occurred or will occur with respect
to a shipment on board, or otherwise in the possession or control of the carrier, such person shall
immediately notify by any means both:
(1)

Office of Export Enforcement
U.S. Department of Commerce
Room 4520
14th Street and Constitution Ave. N.W.
Washington, D.C. 20230
Telephone (202) 482-0694
Facsimile (202) 482 0964; and

(2)

The person in actual possession or control of the shipment.

This collection is necessary to allow the Office of Export Enforcement to evaluate the facts in a

3

timely manner to determine the appropriate disposition of the items involved.
(f) Destination Control Statement (758.6 of the EAR): The Destination Control Statement
(DCS) must be entered on the invoice and on the bill of lading, air waybill, or other export
control document that accompanies the shipment from its point of origin in the United States to
the ultimate consignee or end-user abroad. The person responsible for preparation of those
documents is responsible for entry of the DCS. The DCS is required for all exports from the
United States of items on the Commerce Control List that are not classified as EAR99, unless the
export may be made under License Exception BAG or GFT (see part 740 of the EAR). At a
minimum, the DCS must state: AThese commodities, technology or software were exported from
the United States in accordance with the Export Administration Regulations. Diversion contrary
to U.S. law is prohibited.@
The DCS is a preventive enforcement measure to remind the public that the goods covered by a
document that contains the DCS are controlled for export by the U.S. Government and if they
plan to export or reexport it they should look at the EAR to make sure they are in compliance.
(g) Notation on Export Documents for Exports Exempt from SED Requirements. (758.1(d)
of the EAR): When an exemption from filing the Shipper=s Export Declaration applies, the
forwarding or other agent must include on the bill of lading, air waybill, or other loading
document the export authority of the items, i.e., either the number of and expiration date of a
license issued by BIS, the appropriate License Exception symbol, or NLR ANo License
Required@ designator. This notation applies to any bill of lading or other loading document,
including one issued by a consolidator (indirect carrier) for an export included in a consolidated
shipment. However, this requirement does not apply to a Amaster@ bill of lading or other loading
document issued by a carrier to cover a consolidated shipment. The bill of lading or other
loading document must be available for inspection along with the items prior to lading on the
carrier.
This notation provides an indication to the U.S. Government that the shipper of the items is
aware of the Export Administration Regulations and the requirements of the regulations, and
provides a preliminary indication of whether the export is being made in compliance with the
regulations.
(h) Exports by U.S. Mail.(758.1(i) of the EAR): Whenever a person export items subject to the
EAR by mail that meets one of the exemptions for submission of an SED, you must enter the
appropriate export authority on the parcel, i.e., either the number of and expiration date of a
license issued by BIS, the appropriate License Exception symbol, or NLR ANo License
Required@ designator.
This notation provides an indication to the U.S. Government that the shipper of the items is
aware of the Export Administration Regulations and the requirements of the regulations, and

4

provides a preliminary indication of whether the export is being made in compliance with the
regulations.
(i) Issuance of License, Responsibility of the Licensee. (750.7(d) of the EAR): It is the
licensee=s responsibility to communicate the specific license conditions to the parties to whom
those conditions apply. In addition, when required by the license, the licensee is responsible for
obtaining written acknowledgment(s) of receipt of the conditions from the parties to whom those
conditions apply.
This requirement is needed to document that the consignees and end users of exports made
pursuant to licenses are informed of any conditions. Typically, the government has dealt directly
with the licensee, but not the consignee or end user. In addition, because the timing of the
shipment is not up to the government, the licensee is in a better position than the government to
convey this information to the consignee.

3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological techniques or other forms of
information technology.
The following collections involve the use of automated, electronic, mechanical, or other
technological techniques or other forms of information technology:
a) Assumption of Responsibilities in Writing. This writing may be transmitted via fax or e-mail
from the foreign principal party in interest to the U.S. principal party in interest. This decision
was made to accommodate the fast pace of the business community to process orders.
b) Information sharing requirements. This writing may be transmitted electronically via fax, or
e-mail. This decision was made to accommodate the fast pace of the business community to
process orders.
c) Power of attorney or other written authorization. This writing may be transmitted via fax, or
e-mail. This decision was made to accommodate the fast pace of the business community to
process orders.
d) Procedures for unscheduled unloading. This writing may be transmitted via fax, or e-mail.
This decision was made to accommodate the fast pace of the business community to process
orders.
e) Return or Unloading at Direction of U.S. Department of Commerce. This writing may be
transmitted via fax. This decision was made to accommodate the fast pace of the business
community to process orders.

5

f) Destination Control Statement. Completion of the DCS can be done through automation. The
DCS can also be preprinted on documents requiring the information.
(g) Notation on export documents for exports exempt from SED requirements. (758.1(d) of the
EAR): This must appear on paper documents that accompany the shipment and cannot be
provided electronically
(h) Exports by U.S. Mail.(758.1(i) of the EAR): This must appear on paper documents that
accompany the shipment and cannot be provided electronically
i) Issuance of License, Responsibility of the licensee. This writing may be transmitted via fax, or
e-mail. This decision was made to accommodate the fast pace of the business community to
process orders.

4. Describe efforts to identify duplication.
This information is not duplicated elsewhere. Each collection provides information concerning
specified details of individual export transactions. This information is not available from any
source other than from the respondents.

5. If the collection of information involves small businesses or other small entities, describe
the methods used to minimize burden.
This recordkeeping requirement must be adhered to by all affected parties regardless of the size
of the business. The failure to keep this writing would not assure the necessary control of exports
as required by export regulations.

6. Describe the consequences to the Federal program or policy activities if the collection is
not conducted or is conducted less frequently.
The consequences to Export Enforcement and Compliance if the collection is not conducted or
conducted less frequently, are as follows:
a) Assumption of responsibilities in writing. If the assumption of responsibilities in writing were
not required then the likelihood of illegal exports would increase, as a result of not requiring the
parties to confirm who is responsible for determining license requirements and obtaining the
license. The frequency of the writing is decided between the principal parties in interest, which
satisfies the regulatory requirement as long as it covers all routed transactions where the foreign
principal party in interest has taken on these responsibilities.

6

b) Information sharing requirements. Without this collection forwarding and other agents would
be forced to either delay exports, guess, research to obtain the information, or leave the
information blocks empty. This information is necessary to enable the foreign principal or its
forwarding or other agents to make correct license determinations, apply for licenses, and
correctly and completely prepare and file export documents. Compliance with export
regulations is impossible without having the Export Control Classification Number (ECCN) of
the item being exported. The ECCN must be known for each item being exported. The
frequency is dependent upon the how often the foreign principal or its agent makes the request of
this information to the U.S. principal. To alleviate some of the burden to on the U.S. principal in
having to provide this information for every transaction, the requirement triggered upon request
of the foreign principal or its agent, because the foreign principal or its agent may already have
the ECCN from previous transactions or being very familiar with the product.
c) Power of attorney or other written authorization. The consequences of not requiring this
collection is lack of communication between parties, confusion about who is responsible for
obtaining a license, increased violations of the EAR, and lack of evidence to prosecute violators.
The power of attorney or other written authorization assures that the principal has communicated
to the agent that it is being hired and authorized to apply for a license on behalf of the principal.
Since a foreign person cannot apply for a license, the need to establish who is responsible for this
task in the United States is essential to export enforcement. One authorization may cover many
transactions, as long as all transactions for which an agent acts on behalf of another party is
covered. Therefore, frequency is determined by the parties.
d) Procedures for unscheduled unloading. The consequences of not requiring the public to notify
BIS and the exporter of the unscheduled unloading of sensitive items that are controlled for
export on the Commerce Control List of the EAR, is that the items could be diverted, presenting
a national security risk to the United States. It is important that BIS be notified quickly so that
acceptable permanent disposition of the items may be arranged as soon as possible. The longer
the delay, the higher the risk of theft or erroneous movement of the items. This notification and
reporting requirement could not be done less frequently, as it would pose a high risk of diversion
of national security or foreign policy controlled items.
e) Return or unloading at direction of U.S. Department of Commerce B notification of violation:
It is important that BIS be notified by an Aexporting carrier@ of a violation so that acceptable
disposition of the items may be arranged as soon as possible. This notification and reporting
requirement could not be done less frequently, as it would pose a high risk of diversion of
national security or foreign policy controlled items.
f) Destination Control Statement (DCS). The DCS is a reminder to all parties that are involved in
a transaction that includes items controlled for export by the EAR, that the transaction must be in
compliance to the EAR. If it were required less frequently or not at all, then more items would be
subject to higher risk of diversion and an increase in illegal exports and reexports would take
place.

7

g) Notation on export documents for exports exempt from SED requirements. This notation must
be required for all exports exempt from SED requirements to ensure that the exporter has
determined the appropriate authority for the export or that no authorization is required. If this
notation were required less frequently or not al all, then more items would be subject to higher
risk of diversion and an increase in illegal exports could result.
h) Exports by U.S. Mail: This notation must be required for all exports exempt from SED
requirements to ensure that the exporter has determined the appropriate authority for the export
or that no authorization is required. If this notation were required less frequently or not al all,
then more items would be subject to higher risk of diversion and an increase in illegal exports
could result.
i) Issuance of License, Responsibility of the licensee. If the receipt of conditions by the parties
were required less frequently, it could result in violations of the EAR. The licenses are approved
contingent on the fulfillment of the conditions. If the conditions are not communicated to the
parties, then adherence to them would be at risk. Adherence of the conditions is one of the basic
General Prohibitions in part 736 of the EAR. Violations of the conditions could result in a
National Security threat to the United States.

7. Explain any special circumstances that require the collection to be conducted in a
manner inconsistent with OMB guidelines.
There are no special circumstances that require the collection to be conducted in a manner
inconsistent with the guidelines in 5 CFR 1320.6.

8. Provide a copy of the PRA Federal Register notice that solicited public comments on the
information collection prior to this submission. Summarize the public comments received
in response to that notice and describe the actions taken by the agency in response to those
comments. Describe the efforts to consult with persons outside the agency to obtain their
views on the availability of data, frequency of collection, the clarity of instructions and
recordkeeping, disclosure, or reporting format (if any), and on the data elements to be
recorded, disclosed, or reported.
The notice requesting public comment was published in the Federal Register on January 30,
2009, pp 5637. No comments were received.

9. Explain any decisions to provide payments or gifts to respondents, other than
remuneration of contractors or grantees.
There is no plan to provide any payment or gift to respondents.

8

10. Describe any assurance of confidentiality provided to respondents and the basis for
assurance in statute, regulation, or agency policy.
Section 12(c) of the EAA provides for the confidentiality of export licensing information
submitted to the Department of Commerce.

11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private.
There are no questions of a sensitive nature.

12. Provide an estimate in hours of the burden of the collection of information.
This collection has a total of 78,576 burden hours, as listed below.
a) Assumption of Responsibility in Writing: This collection affects approximately 144,444
routed exports annually. This is based on the figure from the Census Bureau of 13 million
exports annually, with an estimate of 1/3 of the exports being routed, an estimate of 1/10
transactions in which the foreign principal party in interest assumes responsibility, and
approximately 3 exports per project covered by a single writing. The total annual public burden
for respondents is 36,111 hours. This is based on an average time of 15 minutes to prepare the
writing.
b) Information sharing requirements. This collection affects approximately 144,444 routed
exports annually. The total annual public burden for respondents is 36,111 hours. This is based
on an average time of 15 minutes to communicate the ECCN or technical information, and any
other pertinent information that would affect license determination.
c) Power of attorney or other written authorization. This collection affects approximately 5,000
routed exports annually. BIS receives approximately 15,000 applications per year.
Approximately 1/3 of these are for routed exports. The total annual public burden for
respondents is 1,250 hours. This is based on an average time of 15 minutes to prepare the power
of attorney or other written authorization.
d) Procedures for unscheduled unloading. This collection of information consists of
approximately 1 respondent annually. The total annual public burden for respondents is
estimated to be 2 hours. This is based on an average time of one hour to prepare one report of
unscheduled unloading, and one hour to prepare one report of an incident requiring the return or

9

unloading of cargo at the direction of U.S. Dept. of Commerce.
e) Return or unloading at direction of U.S. Department of Commerce. This collection of
information consists of approximately 2 respondents annually. The total annual public burden
for respondents is 4 hours. This is based on an average time of one hour to prepare one report of
unscheduled unloading, and one hour to prepare one report of an incident requiring the return or
unloading of cargo at the direction of U.S. Dept. of Commerce.
f) Destination Control Statement (DCS). The estimated yearly total burden placed on the
exporting public required to use the DCS is 1,806 hours. This is based on the figure from the
Census Bureau of 13 million exports annually, an estimate of 5% of the exports subject to the
EAR, 2 documents for each export requiring use of the DCS and 5 seconds required to complete
each document (13,000,000 x .05 x 2 x 5/3600 = 1,805 hours)
g) Notation on export documents for exports exempt from SED requirements. The estimated
yearly total burden placed on respondents/forwarders is approximately 181 total hours. This is
based on the figure from the Census Bureau of 13 million exports annually, an estimate of 5%
of the exports subject to the EAR, an estimated 20% of these controlled exports will meet SED
exemptions (13,000,000 x .05 x 0.2 = 130,000). Therefore, there are 130,000 shipments for
which the forwarder is required to insert on the bill of lading the license number and expiration
date, License Exception, or No License Required (NLR) symbol, requiring approximately
5 seconds to complete. This results in an annual burden of 180 hours (130,000 x 5/3600 = 180
hours).
h) Exports by U.S. Mail. The estimated yearly total burden placed on those members of the
private sector who export parcels is 111 total hours. This is based on an estimated 8 million
parcels mailed internationally on an annual basis. Of these packages, an estimated 5% are
controlled by the EAR and 80% of these are eligible for an exemption. This leaves only 1%
that require inscription. It takes about 5 seconds per package. Therefore the total time
required is 8,000,000 x .01 x 5/3600 = 111 hours.
i) Responsibility of the Licensee. The estimated annual burden of communicating licensing
conditions is estimated to be 3,000 hours. There were approximately 18,000 license
applications approved with conditions in calendar year 2008. It is estimated to take a total of
about 10 minutes to communicate conditions to and from the licensee and the parties to
whom they apply.

13. Provide an estimate of the total annual cost burden to the respondents or recordkeepers resulting from the collection (excluding the value of the burden hours in
Question 12 above).
There will be no cost burden to the respondents resulting from this collection, as all

10

notifications, reports, and information exchange requirements do not require any special form
or format, therefore may be produced or accomplished using standard business equipment
and supplies.

14. Provide estimates of annualized cost to the Federal government.
Items a) through f) and i) are not applicable since these items are not received by the
government.
g) Notation on export documents for exports exempt from SED requirements. The estimated
yearly cost to the Federal Government is $211,000. This is based on a spot check of bills of
lading covering one-third of the approximately 13 million exports annually. Each spot check
takes roughly 5 seconds. The total amount of time is 13,000,000 x 1/3 x 5/3600 = 6,018
hours. The cost is estimated to be 6,018 x $35 = $211,000.
h) Exports by U.S. Mail. The estimated yearly cost to the Federal Government is $111,000.
This estimate is based on a spot check of one-third of the approximately 8 million
international mail exports annually. Each spot check takes roughly 5 seconds. The total
amount of time is 8,000,000 x 1/3 x 5/3600 = 3,704 hours. The cost is estimated to be 3,704
x $30 = $111,000.
The total estimated cost to the USG is $211,000 + 111,000 = $322,000.

15. Explain the reasons for any program changes or adjustments.
The number of responses and burden hours has been adjusted as a result of dividing the
previous collection’s information collections into multiple collections, and to reflect calendar
year 2008 data obtained from the ECASS system.

16. For collections whose results will be published, outline the plans for tabulation and
publication.
There are no plans to publish this information for statistical purposes.
This reporting request involves a Atrade sensitive@ activity under the OMB memorandum of
March 15, 1983 which outlines requirements for agencies that are subject to provisions of the
Paperwork Reduction Act of 1980 and Executive Order 12291.

11

17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons why display would be inappropriate.
Not applicable.

18. Explain each exception to the certification statement identified in Item 19 of the
OMB 83-I.
Not applicable.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
Not applicable.

12