BIS Provides Update on Export Issues at RPTAC Meeting

Administrations' Review of the Export Control System is Underway

BIS officials noted that the Administration's review of the U.S. export control system is underway and an interagency working group, chaired by the National Security Council, has been meeting frequently with a goal of producing some recommendations in early 2010.

When questioned about the public's role in the Administration's review, officials noted that once the review is further along, there may be a mechanism implemented to solicit public input, but this is not likely until early 2010.

(In August 2009, the President directed the National Economic Council and National Security Council to launch a broad-based interagency process for reviewing the overall U.S. export control system, including both the dual-use and defense trade processes. The aim of the review is to consider reforms to the system to enhance the national security, foreign policy, and economic security interests of the U.S. See ITT's Online Archives or 08/17/09 news, 09081715, for BP summary of the President's order of a review of the U.S. export system.)

Commodity Jurisdiction Cases are Being Resolved in More Timely Manner

BIS officials stated that the commodity jurisdiction process has improved and such cases are being resolved more quickly. Although cases are being resolved more quickly, issues remain with how the various agencies apply the ITAR. BIS officials also noted a significant increase in CJ requests in recent years.

(The purpose of a commodity jurisdiction request is to determine whether an item or service is covered by the U.S. Munitions List and therefore subject to export controls administered by the State Department pursuant to the Arms Export Control Act and the ITAR.

See ITT's Online Archives or 10/02/09 news, 09100225, for BP summary on new State Department electronic CJ form.)

BIS' Rule on Sensitive/Complex Wassenaar Items Not Expected Until 2010

In its recent final rule which revised the Export Administration Regulations to implement changes to the Wassenaar Arrangement's List of Dual Use Goods and Technologies (Wassenaar List) as agreed upon in the December 2008 Wassenaar Arrangement Plenary Meeting, BIS announced that the agreements pertaining to ECCNs 6A002, 6A003, and all related ECCNs will be implemented in a separate rule, because of the sensitivity of the items and complexity of procedures and controls for these items. At the RPTAC meeting, BIS officials noted that while they are anxious to publish the rule as soon as possible, it may not be out until after the holiday season.

Iran is the Common Denominator in a Third of Enforcement Cases

BIS officials stated that the common denominator with many of its enforcement cases is Iran, as approximately 30% of its open cases at any given time over the past few years have involved Iran.

(House and Senate Committees have reported their own Iran sanctions bills. (See ITT's Online Archives or 11/04/09 news, 09110415, for BP summary of the bills.)

FY 2009 and FY 2010 Enforcement Statistics

In FY 2009, BIS had 37 arrests and 40 convictions. BIS officials closed 54 export control and antiboycott administrative cases. In FY 2009, civil penalties totaled over $14 million. $9.5 of which was a joint settlement with the Office of Foreign Assets Control. Of its FY 2009 arrests, 10 involved illegal exports to Iran, and four were related to denied parties (3 to India and 1 to Iran).

1. of BIS' cases involved Commerce Control List items destined to China (13), Iran (7), India (3), and Russia, Singapore, Canada, Hong Kong, South Korea, Australia, and Vietnam.

In FY 2010, BIS officials noted that it has made 3 arrests, 17 indictments, 5 convictions, and issued 11 search warrants.

(See ITT's Online Archives or 12/09/09 and 12/11/09 news, 09120925 and 09121125, for BP summaries of BIS' recent Wassenaar notices.)