BIS Considers Extending "Foreign Policy-Based" Export Controls Another Year

(Foreign policy-based controls include crime controls, regional stability controls, anti-terrorism, chemical and biological, missile technology, nuclear nonproliferation, and entity list controls, etc.¹)

Comments Received to be Considered for BIS' Annual Report to Congress

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 (EAA). Section 6 requires the President to submit a report to Congress to extend the controls. Timely comments will be considered by BIS in reviewing the controls and developing its report to Congress.

Comments Sought on Whether to Extend Foreign Policy Controls Another Year

BIS is now soliciting public comment on the effects of extending the existing foreign policy-based export controls for another year. Among the criteria considered in determining whether to extend U.S. foreign policy-based export controls are the following:

1. The likelihood that such controls will achieve their intended foreign policy purposes, in light of other factors, including the availability from other countries of the goods, software or technology proposed for such controls;

2. Whether the foreign policy objective of such controls can be achieved through negotiations or other alternative means;

3. The compatibility of the controls with the foreign policy objectives of the U.S. and with overall U.S. policy toward the country subject to the controls;

4. Whether the reaction of other countries to the extension of such controls is not likely to render the controls ineffective in achieving the intended foreign policy objective or be counterproductive to U.S. foreign policy interests;

5. The comparative benefits to U.S. foreign policy objectives versus the effect of the controls on the export performance of the U.S., the competitive position of the U.S. in the international economy, the international reputation of the U.S. as a supplier of goods and technology; and

6. The ability of the U.S. to effectively enforce the controls.

Particular Interest in Comments on Economic Impact, Industry Info, Etc.

BIS is particularly interested in receiving comments on the economic impact of proliferation controls. BIS is also interested in information relating to the following:

1. Information on the effect of foreign policy-based export controls on sales of U.S. products to third countries (i.e., those countries not targeted by sanctions), including the views of foreign purchasers or prospective customers regarding U.S. foreign policy based export controls.

2. Information on controls maintained by U.S. trade partners. For example, to what extent do U.S. trade partners have similar controls on goods and technology on a worldwide basis or to specific destinations?

3. Information on licensing policies or practices by U.S. foreign trade partners that are similar to U.S. foreign policy based export controls, including license review criteria, use of conditions, and requirements for pre- and post-shipment verifications (preferably supported by examples of approvals, denials and foreign regulations).

4. Suggestions for bringing foreign policy-based export controls more into line with multilateral practice.

5. Comments or suggestions to make multilateral controls more effective.

6. Information that illustrates the effect of foreign policy-based export controls on trade or acquisitions by intended targets of the controls.

7. Data or other information on the effect of foreign policy-based export controls on overall trade at the level of individual industrial sectors.

8. Suggestions for measuring the effect of foreign policy-based export controls on trade.

9. Information on the use of foreign policy-based export controls on targeted countries, entities, or individuals. BIS is also interested in comments relating generally to the extension or revision of existing foreign policy-based export controls.

¹Foreign policy-based controls in the EAR are implemented pursuant to Section 6 of the Export Administration Act of 1979 (EAA). The current foreign policy-based export controls maintained by BIS are set forth in the EAR, including in 15 CFR Parts 742 (CCL Based Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes and Other Special Controls). These controls apply to a range of countries, items, activities, and persons.

(See ITT's Online Archives or 06/06/11 news, 11060501, for BP summary of a bill being introduced to renew the EAA.

See ITT's Online Archives or 01/19/11 news, 11011909, for BP summary of BIS' report extending export controls maintained for foreign policy purposes for another year.)

BIS Contact -- Anthony Christino (202) 482-4252

(D/N 110722412-1428-01, FR Pub 09/01/11)