[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR752.5]

[Page 413-416]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE
 
PART 752_SPECIAL COMPREHENSIVE LICENSE--Table of Contents
 
Sec.  752.5  Steps you must follow to apply for an SCL.

    (a) Step One: Establish applicant reliability--(1) Pre-application 
consultation. To apply for an SCL, BIS must determine your reliability 
as a potential SCL holder. BIS usually does this through consultation 
with company officials and a review of the criteria identified in 
paragraph (a)(2) of this section. To determine whether your company 
requires a consultation before you apply for an SCL, contact BIS at the 
address, phone, or telefacsimile

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numbers included in Sec.  752.17 of this part.
    (2) Criteria for determining eligibility. BIS will review the 
following criteria to help determine SCL holder eligibility:
    (i) Evidence of past licensing history and projected, continuous 
large volume exports;
    (ii) Reliability of all parties relative to their compliance with 
the EAR;
    (iii) Commitment of all parties of the necessary resources to 
implement and maintain an adequate ICP; and
    (iv) Evidence of all parties knowledge of all provisions of the EAR.
    (b) Step Two: Establish consignee reliability--(1) Requirements. You 
must make an initial determination of the reliability of all consignees 
that are listed on your application for an SCL, based upon the criteria 
described in paragraph (b)(2) of this section.
    (2) Determining reliability. The criteria that you should take into 
consideration include, but are not limited to, the following:
    (i) Criteria. (A) The proposed consignee has a satisfactory record 
established through BIS pre-license checks, or extensive experience as a 
consignee under any license issued by BIS;
    (B) The proposed consignee is a wholly-owned subsidiary or a 
controlled-in-fact affiliate of the applicant or of a consignee that is 
already approved on an SCL. See part 772 of the EAR for a definition of 
controlled-in-fact; or
    (C) You have evidence of an established, on-going business 
relationship with the proposed consignee.
    (ii) Exception. The provisions of paragraph (b)(2)(i) of this 
section do not preclude the authority of BIS to determine the 
reliability and eligibility of a proposed consignee. BIS may, based upon 
any negative information on the proposed consignees, deny a proposed 
consignee.
    (c) Step Three: Prepare your documentation. Complete Form BIS-748P, 
Multipurpose Application, Form BIS-748P-A, Item Appendix, Form BIS-748P-
B, End-User Appendix, an ICP, a comprehensive narrative statement, Form 
BIS-752, Statement by Consignee in Support of Special Comprehensive 
License, Form BIS-752-A, Reexport Territories, and all applicable 
certifications. Submit this documentation to BIS at one of the addresses 
included in Sec.  752.17 of this part.
    (1) Form BIS-748P, Multipurpose Application, and Form BIS-748P-A, 
Item Appendix. You must complete Form BIS-748P and Form 748P-A according 
to the instructions found in Supplement Nos. 1 and 2 of this part.
    (2) Form BIS-748P-B, End-User Appendix. You must identify end-users 
on Form BIS-748P-B if you are requesting approval to export or reexport 
items controlled for nuclear nonproliferation or chemical and biological 
control reasons.
    (3) ICP. You must provide a copy of your proposed ICP as required by 
Sec.  752.11 of this part. You must indicate whether any of the elements 
of the ICP will not be implemented and explain why these elements were 
deemed inapplicable. Existence of a properly constructed ICP will not 
relieve you of your responsibility to comply with requirements of all 
applicable regulations pertaining to your SCL;
    (4) Comprehensive narrative statement. Prepare a comprehensive 
narrative statement on your company letterhead that includes the 
following information:
    (i) An overview of the total business activity that will be 
performed by you and all other parties who will receive items under the 
authority of your SCL, including consignees, subcontractors, and 
vessels;
    (ii) A description of the nature and anticipated volume of regular 
and repetitive transactions proposed by consignees under the license;
    (iii) An explanation of the relationship between the parties to the 
application, such as affiliate, subsidiary, or parent, etc;
    (iv) A certification that you will implement, upon approval of the 
application by BIS, an ICP that incorporates all applicable elements 
listed in Sec.  752.11 of this part and any additional elements as 
required by BIS upon approval of the SCL; and
    (v) Information on whether proposed consignees are end-users or will 
reexport the items received under your SCL. You must describe the 
proposed consignee's activities completely to determine the appropriate 
ICP elements

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that you and your consignees must implement.
    (5) Form BIS-752, Statement of Consignee in Support of Special 
Comprehensive License. This Form is completed by each consignee. You 
must submit one completed, signed, original Form BIS-752 for each 
proposed consignee on your SCL application. See Supplement No. 3 to this 
part for instructions on completing Form BIS-752. Form BIS-752 is not 
required if the proposed consignee is both an end-user and a ``foreign 
government agency'' as defined in part 772 of the EAR.
    (6) Form BIS-752-A, Reexport Territories. You must complete Form 
BIS-752-A, and attach it to the appropriate Form BIS-752, whenever 
Blocks 8B, 8C, 8E, and/or 8F are selected on Form BIS-752. See the 
instruction found in Supplement No. 3 to this part. Form BIS-752-A is 
not required if the proposed consignee is both an end-user and a foreign 
government agency (see part 772 of the EAR for a definition of foreign 
government agency).
    (7) Consignee certifications. Each consignee must provide certain 
certifications on company letterhead that is signed by the consignee. 
Attach certifications to the appropriate Form BIS-752. Each consignee 
must certify that:
    (i) They will implement, upon approval of the SCL by BIS, an ICP 
that incorporates all applicable elements listed in Sec.  752.11 of this 
part and any additional elements as required by BIS upon approval of 
your SCL. If certain elements of an ICP will not be included, state the 
reasons for that determination;
    (ii) They will comply with all provisions of the EAR, including the 
recordkeeping provisions of part 762 of the EAR, all applicable system 
review requirements of Sec.  752.14 of this part, and the reexport 
restrictions of Sec.  752.6 of this part; and
    (iii) They will make available for inspection, upon request by BIS, 
all records required by Sec.  752.12 of this part and part 762 of the 
EAR.
    (8) Additional certifications. (i) Temporary exports. Proposed 
consignees that plan to exhibit or demonstrate items in countries other 
than those in which they are located or are authorized under an SCL, an 
approved Form BIS-752, or a License Exception provision described in 
Sec.  740.8(a)(2)(iii) of the EAR may obtain permission to do so by 
including the following additional certification on company letterhead, 
and attaching it to Form BIS-752.

    I (We) request authorization to reexport temporarily, for exhibit or 
demonstration in countries eligible to receive items under the Special 
Comprehensive License. The items exported will be retained under my 
(our) ownership and control, and will be returned by me (us) to (name 
destination) promptly after their exhibit or demonstration abroad, and 
in no case later than one year after the date of reexport, unless other 
disposition is authorized in writing by the Bureau of Industry and 
Security.

    (ii) Chemicals and chemical equipment certification. If you are 
requesting authority to export chemicals or chemical equipment eligible 
for the SCL, you must obtain a signed written statement on company 
letterhead from the proposed consignee(s) and end-user(s) (except those 
located in Country Group A:3) (see Supplement No. 1 to part 740 of the 
EAR) certifying the following:

    No chemicals or chemical equipment received under this Special 
Comprehensive License will be transferred, resold, or reexported to a 
destination that requires a license, unless the new end-user has been 
approved by the Bureau of Industry and Security, and in no case will the 
items be retransferred, resold, or reexported to a party who is not the 
end-user.

    (iii) Nuclear nonproliferation certification. If you are requesting 
the export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec.  744.2(a) of the EAR, prior 
to submitting an SCL application, you must obtain a signed written 
statement on company letterhead from the proposed consignee(s) and end-
user(s) certifying the following:
    (A) The items to be exported or replicas thereof (``replicas'' refer 
to items produced abroad based on physical examination of the items 
originally exported, matching it in all critical design and performance 
parameters), will not be used in any of the activities described in 
Sec.  744.2 of the EAR; and
    (B) Written authorization will be obtained from BIS prior to 
transferring or reexporting the items, unless they

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are destined to Canada or would not require a license to the new country 
of destination.

[61 FR 12835, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996; 62 
FR 25463, May 9, 1997]