Materials Processing Equip. TAC Discusses Wassenaar, Proposed EAR Changes, Etc.
The Bureau of Industry and Security's Materials Processing Equipment Technical Advisory Committee (MPETAC) held a partially open meeting on March 2, 2011. The agenda for the open session included discussion on proposals from the last and for the next Wassenaar meeting, and a report on proposed changes to the Export Administration Regulations (EAR).
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Controls for Fiber Placement Machines for Aircraft & Missiles Being Discussed
The Committee stated that no formal decision resulted from the last Wassenaar meeting on fiber placement machines for the wind industry. The Committee stated that it is unsure as to where it stands on controlling fiber placement technology, and that classification determinations and controls are still under discussion. The Commission stated that fiber placement machines specifically designed for the manufacture for airplanes and missiles are still controlled for national security reasons and that if specific companies have concerns, they should submit a classification request specific to that technology to the Commerce Department.
Companies Want Policy to Allow Commercial Export of Items to China
Composite equipment manufacturing companies at the meeting stated that they would like to see a framework implemented to allow exports for commercial application to China. They stated that the main competitors to U.S. companies manufacturing composite equipment are offshore and that they would like the agency approving export licenses to clearly state if businesses would be able to export to China. They added that they would like to see if there is a way to allow working in commercial application with China into regulation changes.
U.S. is Being Conservative on Fiber Placement Technology Exports
The Committee stated that although a lot of export licenses have been issued for the export of commercial machines, many licenses have been denied because of unreliable end-users. There is concern that giving information on how to build fiber placement systems would allow other countries to become U.S. competitors, and that while India, Eastern Europe, and other countries already make fiber placement machines, the U.S. still has more specialized knowledge. They stated, anyone with an engineering degree could make fiber placement machines as key parts are available worldwide, but that the U.S. government is still being conservative on such technology.
The Committee stated that fiber placement machines are a very serious threat, especially if going to Afghanistan or other countries, because the machines can make small munitions.
Recent Changes to EAR Entity List, Foreign Availability, STA, Etc.
The Committee also discussed recent changes that have been made to the EAR, including updates to the validated end-user list and the Entity List, publication of mass market encryption object code software not subject to the EAR, export liberalization to India, license exception Strategic Trade Authorization (STA), and foreign availability.
The Committee also stated that while the comment due dates on the proposed rules regarding these topics have passed, TAC will be accepting any additional comments or questions that industry may have.