NAM Calls for Fundamental Overhaul of Export Control System
On April 13, 2010, the National Association of Manufacturers issued its recommendations for fundamental reform of the U.S. export control system called the “Manufacturers Blueprint for a 21st Century Export Control Regime.”
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NAM submitted its Blueprint to the Administration as a complement to the near- and medium-term recommendations it had previously provided to the Administration.
(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, (Ref: 09081715), for BP summary of the President's order of a review of the U.S. export system.)
NAM Makes Seven Recommendations for Reform
The NAM provides the following seven recommendations to create a 21st century export control regime:
Create interagency team for annual assessments - Establish a permanent interagency team (similar in structure and composition to the interagency team formed in December 2009) to review and assess overall policy objectives and performance of the export control regime annually.
Co-locate technical experts - Co-locate technical experts from the Departments of Defense, Commerce, State, and other relevant agencies to create a new unified control list, determine foreign availability, create country control charts, and review levels of control. Additionally, this team should be involved in the Department of Commerce “escalation process” to the National Security Council when required.
Create unified control list - Create a unified control list with two chapters: one for munitions items and the other for dual-use items.
New licensing system with single electronic interface - Create a new licensing system built around a single electronic interface and a broad range of authorizations and exceptions that: takes advantage of auditable compliance systems implemented by trusted country partners, exporters, and importers; limits the use of transaction by transaction licensing; and imposes minimal administrative burdens on both government and industry.
Review U.S. sanctions policy - Review U.S. economic sanctions policy, with special attention to unilateral sanctions. No comprehensive review of the export control system would be complete without an assessment of how sanctions-related controls are applied. Specifically NAM proposes (i) creation of an uniform structure to reduce the complexity and improve compliance; and (ii) moving trade controls administered by the Office of Foreign Asset Control to the Bureau of Industry and Security.
Promote unified approach across licensing agencies - Change the trade controls culture and promote unified approaches across licensing agencies that properly balance national security and economic security imperatives. This would take a significant investment in training, teambuilding, and outreach, as well as establishment of meaningful metrics for measuring success.
(See ITT’s Online Archives or 07/16/09 news, (Ref: 09071625), for BP summary of NAM’s congressional testimony on export control revision.)
NAM press release (dated 04/13/10) available at http://www.nam.org/Communications/Articles/2010/04/Export-Controls-Blueprint.aspx.
NAM “Manufacturers Blueprint for a 21st Century Export Control Regime” available at http://www.nam.org//media/3C969982FB4141908A519C33E372C3ED/NAM_Blueprint_for_Fundamental_Reform_April_2010.pdf