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House Committee Leaders Urge Administration to Prioritize USML Re-Write

At a February 7, 2012 hearing on “U.S. Export Controls, Arms Sales and Reform: Balancing U.S. Interests,” the House Foreign Affairs Committee examined the Administration’s proposals to create a new framework for U.S. strategic export controls. During the hearing, committee leaders urged the Administration to prioritize its re-write of the U.S. Munitions List. In addition, other witnesses urged action to reform export controls on satellites, etc.

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Chair Says Administration Did Not Fully Notify Congress on Breadth of Re-Write

In her opening remarks, Chairman Ros-Lehtinen (R-FL) expressed support for parts of the Administration’s current reforms, such as the development of a shared information technology platform across export control agencies, but said that she will not accept unilateral actions that substantially infringe on or ignore Congressional oversight over important national security matters.

The Chairman expressed concern with the Administration’s complete re-write of the U.S. Munitions List, noting that the Administration has not identified or informed Congress of the full range of items it seeks to transfer to Commerce (despite the requirements for such notification under section 38(f) of the Arms Export Control Act).

Chair, Ranking Member Urge Administration to Prioritize USML Re-Write

Both the Chairman and Ranking Member urged the Administration to prioritize certain aspects of the USML re-write.

Nuts, bolts, cable, etc. The Chairman has proposed that the Administration prioritize removal of the least sensitive parts and components (e.g., nuts, bolts, cable, and the like), which have been treated as defense articles only because they were modified for military end-use.

(The Chairman notes that she has introduced legislation (H.R. 2122) to accomplish this goal. See ITT’s Online Archives or 06/06/11 news, 11060501, for BP announcement of the introduction of H.R. 2122.)

Aerospace, space systems. Ranking Member Berman (D-CA) notes that while he thinks the Administration’s Export Control Reform efforts are moving in the right direction, his concern is that there may not be enough time to complete the review of all 21 USML categories, publish the draft changes for comment, receive and reflect upon those comments, publish final changes, and ensure that the congressional committees of jurisdiction are able to conduct the necessary oversight of those changes.

He said that his preference would be for the Administration to set priorities to make sure that two of the most important categories -- aerospace and space systems (USML cats 8 and 15) could be completed in the 112th Congress.

Ranking Member Urges New EAA, Action on Satellite Controls

Berman also discussed ways that Congress could help the export reform effort, including passing a new Export Administration Act and restoring the President’s authority to move less sensitive satellites, related components, and technology from the U.S. Munitions List.

(On November 1, 2011, Berman introduced the “Safeguarding U.S. Satellite Leadership Security Act of 2011” (H.R. 3288) which would restore the President’s ability to determine what export restrictions should apply to commercial satellites and related components. See ITT’s Online Archives

Chair Concerned About Re-Write’s Creation of New “Commerce Munitions List”

Chairman Ros-Lehtinen also expressed concern that the Administration is proposing to transfer to Commerce numerous military end-items, as well as thousands of other, more sensitive, parts and components, including software source code and manufacturing know-how to what she calls a new “Commerce Munitions List” within the larger Commerce Control List (CCL). She expresses concern about the lack of a statutory basis for the proposed CML; the relationship of the CML to U.S. security assistance authorities; and the elimination of Congressional notification and reporting requirements for the export or retransfer of such defense articles.

(See ITT’s Online Archives [Ref:11071519">12012712) for summary of H.R. 3288.)

Chair Concerned About Re-Write’s Creation of New “Commerce Munitions List”

Chairman Ros-Lehtinen also expressed concern that the Administration is proposing to transfer to Commerce numerous military end-items, as well as thousands of other, more sensitive, parts and components, including software source code and manufacturing know-how to what she calls a new “Commerce Munitions List” within the larger Commerce Control List (CCL). She expresses concern about the lack of a statutory basis for the proposed CML; the relationship of the CML to U.S. security assistance authorities; and the elimination of Congressional notification and reporting requirements for the export or retransfer of such defense articles.

(See ITT’s Online Archives [Ref:11071519 for summary of BIS’ proposed rule to move USML items to the CCL and the addition of a CCL “600 series” to control former USML items.)

Associations Testified on Satellite Reform, Definition Harmonization, Etc.

In other testimony, the Satellite Industry Association and the Aerospace Industries Association of America testified on the issue of export control reform for satellites. The AIAA also expressed support for clarifying proposed regulations and harmonizing definitions across regulatory agencies. In addition, the IPC-Association Connecting Electronics Industries testified in support of modernizing export controls and provided specific suggestions for the clarification of export controls on printed boards and printed board designs in controlled items.

Hearing witness statements, etc. available here