BIS Official Provides Overview of Dual-Use Controls Used to Address Evolving Economic Opportunities and Threats
The Bureau of Industry and Security has posted remarks made by Acting Under Secretary Hill at BIS' Fourth Annual Export Control Forum on March 16, 2009.
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According to Under Secretary Hill, the economic and national security challenges the U.S. faces today are different than those that sustained the dual-use export control system and industrial base in the past, and BIS needs to continually adapt to meet current opportunities and challenges.
Evolution of Export Controls Includes Expanded Entity List, CCL Reviews, Etc.
Hill discussed the following BIS actions taken in the export control system to meet current and future economic and national security challenges (partial list):
Expansion of Entity List. Hill stated that BIS' export control system now focuses more on differentiating not only among countries, but also among foreign parties. For example, BIS has significantly expanded its Entity List to help ensure that items subject to BIS controls are not used in ways adverse to U.S. national security interests. BIS has expanded controls on exports to certain foreign entities regardless of technology levels. (See ITT's Online Archives or 08/25/08 news, 08082530, for BP summary of BIS' final rule expanding the scope of reasons parties may be added to the Entity List, etc.)
Increased enforcement. BIS enforcement efforts continue to focus on transactions that impose the most serious threat to U.S. national security, such as proliferation networks. In 2008, BIS investigations resulted in the criminal conviction of 40 individuals and businesses for export control violations, with criminal fines of over $2.7 million, over $800,000 in forfeitures, and over 218 months of imprisonment, among other things.
Iran license requirements. BIS has also imposed license requirements for Iranian parties sanctioned under Executive Order 13382 that have been determined to be weapons of mass destruction proliferators or their supporters. For example, these controls allowed BIS to issue a Temporary Denial Order for the transfer of a fast-boat with U.S.-origin components to Iran. (See ITT's Online Archives or 01/28/09 news, 09012835, for BP summary of BIS' final rule establishing certain Iran license requirements, etc.)
Revisions/reviews of CCL. BIS' export control system also now incorporates more systematic approaches to assess items and technology subject to control. For example, BIS has completed several stages in its baseline revisions to the Commerce Control List. Upon completion of the baseline revisions, BIS has committed to systematic annual reviews of the CCL to ensure it captures critical technologies. (See ITT's Online Archives or 10/08/08 news, 08100830, for BP summary of BIS' 2008 revision of the CCL pursuant to its systematic review.)
ETRAC technology reviews. BIS' Emerging Technology and Research Advisory Committee is also engaged in a review of technology controls. ETRAC, which includes membership from leading academic institutions, laboratories, and industry, is developing criteria for determining what items should be controlled for release to foreign nationals in the U.S. to help ensure that BIS' deemed export controls do not impede legitimate scientific research that is critical to the U.S.' underlying competitiveness and technology leadership while allowing BIS to deny access to sensitive technology to foreign nationals who seek to do us harm. Hill notes that the experiences of ETRAC will provide valuable insight into criteria for a broad review of the CCL.
Increased efficiency. As a result of increased efficiencies, BIS processed over 20,000 license applications in an average of 27 days in 2008. This was the highest number of applications processed since 1993 and the lowest average processing time since 1992.
Exporter transparency. The export control system also now provides greater transparency for exporters. For example, BIS now has Web site links to commodity classifications published by U.S. companies. (See ITT's Online Archives or 03/09/09 news, 09030930, for BP summary of information posted to this commodity classification Web site.)
Increased compliance efforts. In addition, Hill states BIS is focusing more and more on compliance efforts. For example, BIS has developed new electronic validations to keep non-compliant exports from leaving the U.S. and has enhanced its data mining techniques to identify more suspect transactions.
Improved outreach. BIS' outreach has significantly evolved to better ensure that exporters are aware of their obligations under the Export Administration Regulations, including those that export without a license. For example, BIS has developed more cost-effective and convenient web-based modules and webinars to supplement long-standing seminars and individual counseling.
Under Secretary Hill's remarks (dated 03/16/09) available at http://www.bis.doc.gov/news/2009/export_control_forum_speech.htm