BIS Posts 3 Annual Reports on Defense Trade Offsets, Export Controls, Etc.

2011 Report on Foreign Policy-Based Export Controls

BIS has posted its 2011 Report on Foreign Policy-Based Export Controls. Each chapter of this report describes a particular category of foreign policy controls (e.g., Crime Control/Human Rights, Anti-Terrroism, Regional Stability, etc.) and delineates modifications that have taken place over the past year¹.

Foreign policy controls are extended one year. Export controls maintained for foreign policy purposes require annual extension according to the provisions of Section 6 of the Export Administration Act of 1979, as amended. Section 6(f) of the EAA requires the President to submit a report to Congress to extend the controls. BIS’ report complies with all of the requirements set out in the EAA for extending, amending, or imposing foreign policy controls.

Pursuant to a recommendation of the Secretary of State, the foreign policy export controls discussed in the report are extended for the period from January 21, 2011, to January 20, 2012.

Controls still in effect for replacement parts, etc. As further authorized by the EAA, foreign policy export controls remain in effect for replacement parts and for parts contained in goods subject to such controls. The controls administered in accordance with procedures established pursuant to Section 309(c) of the Nuclear Nonproliferation Act of 1978 similarly remain in effect.

(See ITT’s Online Archives or 09/08/10 news, 10090813, for BP summary of BIS’ request for comments on foreign policy-based controls for its report to Congress.)

Report is available here.

BIS Annual Report to the Congress for Fiscal Year 2010

BIS’ Annual Report to Congress for Fiscal Year 2010 summarizes BIS’ activities from October 1, 2009, through September 30, 2010. According to the report, export control reform topped the BIS agenda in FY 2010 and BIS played an integral role as part of the Administration’s task force charged by the President with implementing changes to the export control system needed to meet the national security challenges of the modern global marketplace. The report also includes information on:

• Regulatory Changes in Fiscal Year 2010
• BIS Organizational Structure and Administrative Information
• Summaries and Tables of Closed Export Enforcement Cases and Criminal Cases
• Number of Individual Firms, Transactions, Requesting Documents and Restrictive Trade Practices by Firm Type
• Approved Applications for Country Group D:1 and Cuba
• Report on Domestic Impact of U.S. Exports to Controlled Countries
• Agricultural Supply Tables and Information
• Export Control Reform Speeches and Fact Sheets

Report available here.

Offsets in Defense Trade

This report to Congress addresses the impact of offsets in defense trade prepared by BIS pursuant to Section 723 of the Defense Production Act (DPA) of 1950, as amended.

(Offsets in defense trade encompass a range of industrial compensation arrangements required by foreign governments as a condition of the purchase of defense articles and services from a non-domestic source.)

BIS collects data annually from U.S. firms involved in defense exports with associated offset agreements in order to assess the impact of offsets in defense trade. The U.S. Government has established an interagency team to consult with foreign nations on limiting the adverse effects of offsets in defense procurement. The data collected by BIS is utilized in the multilateral and bilateral consultations of the team and its working group. This report also includes an annual progress report on the work of the Interagency Working Group on Offsets during the past year as an annex.

Report is available here.

¹Although this report covers the 2010 calendar year, most of the statistical data presented in the report are based on fiscal year 2010 export licensing statistics, unless otherwise noted.