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House Chair Wants Own Export Reform Plan, Criticizes Administration

On May 12, 2011, the House Foreign Affairs Committee held the first in a series of hearings on U.S. export controls. During the hearing, the Chairman and Ranking Member discussed plans to move their own export control legislation and voiced concerns about the Administration’s Export Control Reform Initiative.

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Chairman Urges Administration to Focus on Common Sense Export Reforms

In her opening remarks, Chairman Ros-Lehtinen stated that the Administration has not made a compelling case for the wholesale restructuring of the current system into one that could create a costly and possibly unaccountable new federal bureaucracy on top of the existing one.

CCL/USML review too hard. The Chairman notes that while there are several aspects of the ongoing reforms that she supports, she is concerned about the pace and scope of the ongoing review of the Commodity Control List and U.S. Munitions List, which she said was straining the system and its personnel to its breaking point.

Licensing changes controversial. In addition, the Chairman expressed concern that there had not been enough clarity about the future licensing policy and she urged the Administration to reconsider its reform efforts and focus on common sense reforms on which everyone can agree.

Chair Intends to Introduce More Limited Export Reform Bill, EAA Extension Bills

The Chairman announced that she intends to introduce legislation to clarify that generic parts and components need not be regulated in the same manner as the more sensitive defense articles. According to the Chairman, unlike the sweeping scope of the Administration’s proposed reforms, an initiative such as hers could be implemented in a timely manner without creating institutional gridlock or creating friction with Congress.

According to the Chairman, her legislative changes, together with the Committee’s intent to authorize a short-term extension of the lapsed Export Administration Act (EAA), will help Congress and the Administration make the necessary changes to the export control system.

Ranking Member Supports Reform, But Questions Single Licensing Agency

While expressing support for the Administration’s initiatives generally, he said that he has questions about some aspects, especially the idea of a “single licensing agency.” The Ranking Member stated that he is concerned that a new single licensing agency might not provide the same level of check and balances in making export control decisions. An Administration witness assured the Ranking Member that the new export control regime being created will contain a robust system of checks and balances.

Ranking Member Plans Satellite, EAA Reform Bills

Berman also notes that there are some measures that Congress should take, such as giving the President the flexibility to determine how controls should be applied to exports of commercial satellites and related components. He notes that the House passed his bill to accomplish this (H.R. 2410) in the 111th Congress, but the Senate failed to act. Berman expressed the hope that the House would again pass such legislation. (See ITT’s Online Archives or 06/25/09 news, 09062510, for BP summary of H.R. 2410.)

Berman also announced that he would soon introduce legislation to update and revise the EAA.

Chairman opening remarks available here, Ranking Member’s remarks available here

Witness testimony available here