[Code of Federal Regulations]

[Title 15, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR700.18]



[Page 89-90]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE

 

PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents

 

                     Subpart D_Industrial Priorities

 

Sec. 700.18  Limitations on placing rated orders.



    (a) General limitations. (1) A person may not place a DO or DX rated 

order unless entitled to do so under this regulation.

    (2) Rated orders may not be used to obtain:

    (i) Delivery on a date earlier than needed;

    (ii) A greater quantity of the item than needed, except to obtain a 

minimum procurable quantity. Separate rated orders may not be placed 

solely for the purpose of obtaining minimum procurable quantities on 

each order;

    (iii) Items in advance of the receipt of a rated order, except as 

specifically authorized by Commerce (see Sec. 700.51(c) for information 

on obtaining authorization for a priority rating in advance of a rated 

order); or

    (iv) Any of the following items unless specific priority rating 

authority has been obtained from a Delegate Agency or Commerce:

    (A) Items for plant improvement, expansion or construction, unless 

they will be physically incorporated into a construction project covered 

by a rated order; and

    (B) Production or construction equipment or items to be used for the 

manufacture of production equipment. [For information on requesting 

priority rating authority, see Sec. 700.53.]

    (v) Any items related to the development of chemical or biological 

warfare capabilities or the production of chemical or biological 

weapons, unless such development or production has been authorized by 

the President or the Secretary of Defense.

    (b) Jurisdictional limitations. (1) The priorities and allocations 

authority for certain items has been delegated under Executive Orders 

12919 and 12742, other executive order, or Interagency Memoranda of 

Understanding to other agencies. Unless otherwise agreed to by the 

concerned agencies, the provisions of this part are not applicable to 

these items which include:

    (i) Food resources, food resource facilities, and the domestic 

distribution of farm equipment and commercial fertilizer (Department of 

Agriculture--see Attachment A to DPAS Delegation 1 in Appendix II to 

part 700 concerning combat rations);

    (ii) All forms of energy, including radioisotopes, stable isotopes, 

source material, and special nuclear material produced in Government-

owned plants or facilities operated by or for the Department of Energy 

(Department of Energy);

    (iii) Health resources (Department of Health and Human Services);

    (iv) All forms of civil transportation (Department of 

Transportation);

    (v) Water resources (Department of Defense/U.S. Army Corps of 

Engineers);

    (vi) Communications services (National Communications System under 

Executive Order 12472 of April 3, 1984); and

    (vii) Mineral resources and mineral processing facilities 

(Department of the Interior/U.S. Geological Survey--see Memorandum of 

Understanding Between Interior and Commerce in DPAS Appendix III to part 

700).



[[Page 90]]



    (2) The jurisdiction of the Department of Commerce and the 

Departments of Energy, Agriculture, and the Interior over certain 

specific items included in the categories listed above has been 

clarified by Interagency Memoranda of Understanding. Copies of these 

Memoranda are provided for information at appendix III.

    (3) The following items under the jurisdiction of Commerce are 

currently excluded from the rating provisions of this regulation; 

however, these items are subject to Commerce Directives. These excluded 

items are:



Copper raw materials

Crushed stone

Gravel

Sand

Scrap

Slag

Steam heat, central

Waste paper



[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 

amended at 63 FR 31923, June 11, 1998]