Industry Group Commends Work on Export Control Reform; Suggests More Internal Changes for Initiative
The Obama administration should push forward with the export control reform initiative to ensure all new regulations are published by the end of 2013, though the reconciliation of the U.S. Munitions List and Commerce Control List should not be considered the final step in the reform project, a coalition of major industry groups said May 9. The Coalition for Security and Competitiveness commended the administration’s work on export control reform in a letter to President Obama. Members of the group include the National Foreign Trade Council, American Association of Exporters and Importers, the U.S. Chamber of Commerce and the Coalition for Employment through Exports.
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The group said there are other “badly needed” reforms beyond the stated goal of export control reform: consolidating the USML and CCL into one list, and creating a single export control body. Their recommendations do not require statutory reform, the letter said, “although Congressional support would be beneficial in advancing these goals.” The recommendations are:
- Reduce the number of licenses for USML items exported to trusted partners by creating a license framework for priority U.S. government defense and security programs and license exemptions
- Create an intra-company transfer license, so trusted companies can exchange technology within their organization, protected by compliance processes and technology and intellectual property controls
- Simplify and recalibrate encryption controls
- Quicken the implementation of multilateral regime changes, including changing the CCL country chart to reflect the status of new members of regimes
- Ensure the agencies implementing export control reform have enough resources and flexibility, “so they can quickly and completely fulfill their new functions without increasing fees”
- Increase the utility of the U.K. and Australian Defense Trade Cooperation Treaties by updating existing use criteria and technology exclusion lists
- Reform high performance computer export controls, replacing the current performance-based controls with “a targeted approach that focuses on restricting the transfer of militarily critical HPC capabilities.”
- Complete and publish a final rule for the “defense services” definition
- Continue engaging with industry “to ensure focus on practical, achievable reforms and to maintain positive momentum for export control reform”