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Businesses Urge More Work on Export Control Reforms

Tuesday, May 14, 2013
Sandler, Travis & Rosenberg Trade Report

A coalition of business groups is urging President Obama to conclude by the end of 2013 efforts under the Export Control Reform Initiative to update the U.S. Munitions List and the Commerce Control List. The Coalition for Security and Competitiveness welcomed the recent publication of the first of the final rules implementing these changes but said this “should not be considered the final step” in the broader ECRI. The coalition therefore urged the White House to complete “a number of other badly needed reforms,” including the following.

- reducing the number of licenses for items that will remain on the USML and are exported to trusted allies and partners through an effective and efficient program license framework for priority U.S. government defense and security programs and license exemptions, such as for replacement or repair of parts and components and exports that support U.S. government, military and/or intelligence activities abroad

- creating an effective and efficient intra-company transfer license that allows trusted companies to exchange technology freely within their own organizations protected by compliance processes as well as technology and intellectual property controls

- simplifying and recalibrating encryption controls so that only a narrow positive list of encryption-related items is subject to control

- accelerating the implementation of multilateral regime changes, including changing the country chart in the CCL to reflect the status of new members for all regimes

- establishing a single entry portal and a single form for use with electronic interface or manual entry through which all license applications can be submitted and from where they can be redirected to the appropriate issuing agency

- ensuring adequate resources for agencies taking on new responsibilities, including the flexibility to use existing resources, so they can quickly and completely fulfill their new functions without increasing fees

- increasing the utility of the United Kingdom and Australian defense trade cooperation treaties through consultation with industry in regular reviews of existing use criteria and updates of technology exclusion lists

- continuing engagement with industry in dialogue to ensure focus on practical, achievable reforms and maintain positive momentum for export control reform

- replacing the current performance-based export controls on high-performance computers with a targeted approach that focuses on restricting the transfer of militarily critical HPC capabilities to take account of the following global technological and economic realities: restricting access to high-performance computing in the networked world through export controls is not feasible, knowledge and ability to develop HPC capability is readily available from open sources, and the innovation and viability of the U.S. information technology industry is dependent on exports

- completing and publishing a final rule for the definition of “defense services”

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