[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: 15CFR700.30]



[Page 91-92]

 

                  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 F_National Emergency Preparedness and Critical Items

 

Sec. 700.30  Priorities and allocations in a national emergency.



    Source: 63 FR 31923, June 11, 1998, unless otherwise noted.





    (a) In the event of a national emergency, special rules may be 

established as needed to supplement this part, thus ensuring rapid 

industrial response and the timely availability of critical industrial 

items and facilities to meet the urgent national defense requirements, 

including domestic emergency preparedness requirements, of approved 

programs.

    (1) Emergency official actions. (i) As needed, this part may be 

supplemented to include additional definitions to cover civilian 

emergency preparedness industrial items, support for essential civilian 

programs, and provisions for the taking of certain emergency official 

actions under sections Sec. Sec. 700.60 through 700.63.

    (ii) Emergency official actions may include:

    (A) Controlling inventories of critical and scarce defense and/or 

emergency preparedness items;

    (B) Restricting the purchase, use, or distribution of critical and 

scarce defense and/or emergency preparedness items, or the use of 

production or distribution facilities, for non-essential purposes; and

    (C) Converting the production or distribution of non-essential items 

to the production or distribution of critical and scarce defense and/or 

emergency preparedness items.

    (2) Allocation of critical and scarce items and facilities. (i) As 

needed, this part may be supplemented to establish special rules for the 

allocation of scarce and critical items and facilities to ensure the 

timely availability of these items and facilities for approved programs, 

and to provide for an equitable and orderly distribution of requirements 

for such items among all suppliers of the items. These rules may provide 

for the allocation of individual items or they may be broad enough to 

direct general industrial activity as required in support of emergency 

requirements.

    (ii) Allocation rules (i.e., controlled materials programs) were 

established in response to previous periods of national security 

emergency such as World War II and the Korean Conflict. The basic 

elements of the controlled materials programs were the set-aside (the 

amount of an item for which a producer or supplier must reserve order 

book space in anticipation of the receipt of rated orders), the 

production directive (requires a producer to supply a specific quantity, 

size, shape, and type of an item within a specific time period), and the 

allotment (the maximum quantity of an item authorized for use in a 

specific program or application). These elements can be used to assure 

the availability of any scarce and critical item for approved programs. 

Currently, a set-aside applies only to metalworking machines (see Sec. 

700.31).

    (3) In the event that certain critical items become scarce, and 

approved program requirements for these items cannot be met without 

creating a significant dislocation in the civilian market place so as to 

create appreciable hardship, Commerce may establish special rules under 

section 101(b) of the Defense Production Act to control the general 

distribution of such items in the civilian market.

    (b) Regional Emergency Coordinators. (1) If due to a catastrophic 

national security emergency event, communications with Commerce 

headquarters in Washington, D.C. are severed, DPAS Emergency Delegation 

1 will provide authority to the Regional Emergency Coordinators (REC) 

located in the Standard Federal Region Council cities (Boston, New York, 

Philadelphia, Atlanta, Dallas, Kansas City, Chicago, Denver, San 

Francisco, and Seattle) to represent the Secretary of Commerce,



[[Page 92]]



and as necessary, act for the Secretary to carry out the emergency 

industrial production and distribution control functions of Commerce as 

set forth in this part, in any supplement thereto, or other applicable 

authority. See DPAS Emergency Delegation 1 for further information about 

the authority and duties of the RECs, and the effective date of the 

Delegation.

    (2) If DPAS Emergency Delegation 1 is implemented due to a 

catastrophic national security emergency event, requests for special 

priorities assistance under Sec. Sec. 700.50 through 700.55 should be 

filed with the nearest Regional Emergency Coordinator located in one of 

the Standard Federal Region Council cities as provided in DPAS 

Delegation 1.