Jun

7

Export Reform Boulder Moves Further Up Mountain


Posted by at 3:56 pm on June 7, 2010
Category: BISDDTCExport ReformOFAC

Export ReformAn article (subscription required) in the latest issue of Inside U.S. Trade describes an interview the publication held with a “senior administration official” on the White House’s proposed export control reforms. According to the official, an interagency agreement should occur shortly that will allow the agencies to move forward in implementing one export license application form for BIS, OFAC and DDTC and to paring down the various export control lists to one list of critical items and technologies.

Probably the most significant of the contemplated reforms is the paring down of the United States Munitions List to a “positive list” of items. Currently, the list has both positive listings of items that are controlled (e.g., firearms or the specific chemical agents listed in Category XIV) and indirect (dare I say “negative”?) listings which cover unspecified items with certain attributes, such as electronics “designed, modified or configured for military application.” This latter category of listings creates conflicting interpretations, confusion and uncertainty about which items require export licenses and which do not.

Other highlights of the interview included the following:

  • The single IT system will be the Department of Defense’s IT system
  • The Nuclear Regulatory Commission, which licenses nuclear exports, will not be part of the single export agency.
  • There will be common definitions of terms, including “U.S. Person” and “export.”
  • The single list will be the United States Munitions List. Dual use items will be added to the list and the Commerce Control List will disappear
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Copyright © 2010 Clif Burns. All Rights Reserved.
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4 Comments:


It is my understanding that the unified list resulting from this export control reform initiative will combine both the U.S. Military List and the Commerce Control List, to resemble the Wassenaar Arrangement’s control list which contains both dual-use items and a basic military list.

Comment by Carol A. Kalinoski on June 8th, 2010 @ 7:04 am

Something tells me that when the day finally comes that we have a unified list that resembles the Wassenaar Arrangement’s control list, managed by the State Department, many of us will be missing the old days when we had a separate CCL controlled by the Commerce Department!

Comment by Vito on June 8th, 2010 @ 11:26 am

From what I have seen and heard about the NSC export control initiative, there is no consideration that State would manage the new unified control list.

As we know the export control initiative has three phases. If the improvements and enhancements identified in the first two phases are realized, including the single IT infrastructure, the single license application form,the new unified control list, the harmonization of definitions and procedures,the new export control system under a single entity would naturally fall into place, notwithstanding the legisative activity necessary to complete this last phase.

Comment by Carol A. Kalinoski on June 8th, 2010 @ 4:57 pm

Having had a ringside seat, through attendance at a TAC, to the turf battle between DDTC and BIS, I’ll remain skeptical about DDTC not having tacit control of the combined list.

I hope to be proven wrong.

Comment by LDM on June 9th, 2010 @ 4:28 pm