White House Issues Fact Sheet on the Export Control Reform Initiative
04/20/10 11:32 PM
On
April 20, 2010, the White House issued a fact sheet
on President Obama’s Export Control Reform
initiative. The initiative started in August 2009
with a comprehensive assessment of the U.S. export
control system to identify possible reforms.
The assessment, created at the direction of the President, was conducted by an interagency task force that included all departments and agencies with roles in export controls. The assessment found that the current U.S. export control system does not sufficiently reduce national security risk based on the fact that its structure is “overly complicated, contains too many redundancies, and tries to protect too much.”
Based on the review, the Administration has determined that fundamental reform of the U.S. export control system is needed in each of its four component areas, with transformation to a:
For the implementation of the proposed reforms, the Administration has prepared a comprehensive, three-phase approach and is currently moving forward to make specific reforms which can be initiated immediately and implemented without legislation:
Phase I makes significant and immediate improvements to the existing system and establishes the framework necessary to create the new system, including making preparations for any legislative proposals. This phase includes implementing specific reform actions already in process and initiating review of new ones.
Phase II results in a fundamentally new U.S. export control system based on the current structure later this year. This phase completes deployment of specific Phase I reforms and initiates new actions contingent upon completion of Phase I items. Congressional notification will be required to remove munitions list controls or transfer items from the munitions list to the dual-use list, and additional funding will be required both for enhanced enforcement and the IT infrastructure.
Phase III completes the transition to the new U.S. export control system. Legislation would be required for this phase:
The assessment, created at the direction of the President, was conducted by an interagency task force that included all departments and agencies with roles in export controls. The assessment found that the current U.S. export control system does not sufficiently reduce national security risk based on the fact that its structure is “overly complicated, contains too many redundancies, and tries to protect too much.”
Based on the review, the Administration has determined that fundamental reform of the U.S. export control system is needed in each of its four component areas, with transformation to a:
- Single Control
List,
• Single Primary Enforcement Coordination Agency,
• Single IT System, and
• Single Licensing Agency.
For the implementation of the proposed reforms, the Administration has prepared a comprehensive, three-phase approach and is currently moving forward to make specific reforms which can be initiated immediately and implemented without legislation:
Phase I makes significant and immediate improvements to the existing system and establishes the framework necessary to create the new system, including making preparations for any legislative proposals. This phase includes implementing specific reform actions already in process and initiating review of new ones.
-
Control List – refine,
understand, and harmonize definitions to end
jurisdiction confusion between the two lists;
establish new independent control criteria to be
used to screen items for control into new tiered
control list structure.
• Licensing – implement regulatory-based improvements to streamline licensing processes and standardize policy and processes to increase efficiencies.
• Enforcement – synchronize and de-conflict enforcement by creation of an Enforcement Fusion Center.
• IT – determine enterprise-wide needs and begin the process to reduce confusion by creating a single U.S. Government (USG) point of entry for exporters.
Phase II results in a fundamentally new U.S. export control system based on the current structure later this year. This phase completes deployment of specific Phase I reforms and initiates new actions contingent upon completion of Phase I items. Congressional notification will be required to remove munitions list controls or transfer items from the munitions list to the dual-use list, and additional funding will be required both for enhanced enforcement and the IT infrastructure.
-
Control List – restructure
the two lists into identical tiered structures,
apply criteria, remove unilateral controls as
appropriate, and submit proposals multilaterally
to add or remove controls.
• Licensing – complete transition to mirrored control list system and fully implement licensing harmonization to allow export authorizations within each control tier to achieve a significant license requirement reduction which is compatible with national security equities.
• Enforcement – expand outreach and compliance.
• IT – transition toward a single electronic licensing system.
Phase III completes the transition to the new U.S. export control system. Legislation would be required for this phase:
-
Control List – merge the two
lists into a single list, and implement
systematic process to keep current.
• Licensing – implement single licensing agency.
• Enforcement – consolidate certain enforcement activities into a Primary Enforcement Coordination Agency.
• IT – implement a single, enterprise-wide IT system (both licensing and enforcement).
Secretary of Defense Discusses Reform of the U.S. Export Controls
04/19/10 11:10 PM
On
April 19, 2010, the U.S. Secretary of Defense
Robert Gates discussed the
administration’s interagency review of the U.S.
export control system. Gates stated that the
consensus among the Secretaries of State,
Commerce, Defense, Energy, and Homeland Security
is that the current export control system poses
a potential threat to national security. Gates
identified as part of the problem export control
processes that were designed 50 years ago that
he claims are unfit for solving modern issues.
The fundamental reform of the export control system, according to Gates, needs to take place in four dimensions, also referred as the “four singles”:
Gates also mentioned that among the changes to the export controls system are treaties between the U.S. and each of the key allies that contain special arrangements under which an export license would not be required for export of goods that are not on a list of very sensitive items, to pre-determined communities of companies that have been vetted by the foreign government. This legislation is currently pending ratification in the Senate.
The fundamental reform of the export control system, according to Gates, needs to take place in four dimensions, also referred as the “four singles”:
- A single export
control list. The United States Munitions List
(USML) and Commerce Control List (CCL) would be
replaced by a single list, which would prevent
forum shopping where exporters may try
classification under one list versus another,
duplication, where an item is covered by both
USML and CCL, and also aid companies in
understanding applicable restrictions.
2 A single licensing agency. Currently, two different authorities – the State Department’s Director of Defense Trade Controls (DDTC) and the Commerce Department’s Bureau of Industry and Security (BIS) – often make independent, unilateral decisions, which sometimes cause for confusion and delay in decision making.
3 A single agency to coordinate enforcement, which would strengthen the ability to identify, investigate and prosecute violations. Currently, multiple enforcement agencies exist, including Immigration and Customs Enforcement (ICE), State enforcement, Commerce Export Enforcement Office, FBI, and many others. It is expected that in the future there will still be multiple enforcement institutions, but their efforts will be coordinated to avoid overlapping jurisdiction and, in some cases, confused authorities.
4 A single unified IT system. Gates stressed that a single IT system instead of the current three would review license application process across the U.S. government and also make this process more efficient.
Gates also mentioned that among the changes to the export controls system are treaties between the U.S. and each of the key allies that contain special arrangements under which an export license would not be required for export of goods that are not on a list of very sensitive items, to pre-determined communities of companies that have been vetted by the foreign government. This legislation is currently pending ratification in the Senate.
CBP Announces International Registered Traveler (IRT) Pilot Program
04/12/08 01:51 PM
On
April 11, 2008, Customs and Border Protection
(CBP) announced
in
the Federal Register a pilot International
Registered Traveler (IRT) program and requested
comments. The IRT program will allow for
expedited clearance of pre-approved low-risk air
travelers into the United States. The pilot
program will initially be conducted at three
airports: John F. Kennedy International Airport
in New York (JFK), the George Bush
Intercontinental Airport in Houston (IAH), and
Washington Dulles International Airport (IAD).
The program may be expanded to other locations
as announced.
Applications to be an initial participant in the pilot program should be submitted by May 12, 2008 and the pilot program will commence on June 10, 2008. Applications to participate will be accepted throughout the duration of the pilot and are available through the Global On-Line Enrollment System (GOES) at www.cbp.gov. At this point, applicants must be either a U.S. citizen, national, or lawful permanent resident (LPR).
Expedited clearance will be effected using automated kiosks located in the Federal Inspection Services (FIS) area of each participating airport. IRT uses fingerprint biometrics technology to verify a participant's identity and confirm his or her status as a IRT participant. After arriving at the FIS area, the participant will proceed directly to the IRT kiosk. A sticker affixed to the participant's passport at the time of acceptance into the IRT program will provide visual identification that the individual can be referred tot he IRT kiosk. IRT participants need not wait in the regular passport control primary inspection lines.
In the Federal Register notice, CBP invites public comments concerning any aspect of the pilot program, provides eligibility requirements for voluntary participation in the pilot program, describes the basis on which CBP will select participants, and describes how the IRT program will operate.
Applications to be an initial participant in the pilot program should be submitted by May 12, 2008 and the pilot program will commence on June 10, 2008. Applications to participate will be accepted throughout the duration of the pilot and are available through the Global On-Line Enrollment System (GOES) at www.cbp.gov. At this point, applicants must be either a U.S. citizen, national, or lawful permanent resident (LPR).
Expedited clearance will be effected using automated kiosks located in the Federal Inspection Services (FIS) area of each participating airport. IRT uses fingerprint biometrics technology to verify a participant's identity and confirm his or her status as a IRT participant. After arriving at the FIS area, the participant will proceed directly to the IRT kiosk. A sticker affixed to the participant's passport at the time of acceptance into the IRT program will provide visual identification that the individual can be referred tot he IRT kiosk. IRT participants need not wait in the regular passport control primary inspection lines.
In the Federal Register notice, CBP invites public comments concerning any aspect of the pilot program, provides eligibility requirements for voluntary participation in the pilot program, describes the basis on which CBP will select participants, and describes how the IRT program will operate.
National Retail Federation Advocates for Improvements in WTO Rules
12/04/07 01:21 PM
On
December 4, 2007, the U.S. Customs
House Guide reported
that
the National Retail Federation (NRF) stated that
it will review a draft text of proposed new
trade remedy rules released by the World Trade
Organization (WTO) on November 30, 2007 and will
focus on whether the draft will result in
reforms to end what the increasing abuse of
anti-dumping and countervailing duties
mechanisms.
“One of
the key objectives of American retailers in the
Doha round is to obtain improvements and
clarifications in the rules governing the use of
anti-dumping and countervailing duty actions
against imported products that will prevent abusive
and unfair use of these measures and ensure that
they do not undermine the competitiveness of U.S.
retailers, manufacturers, and farmers,” NRF Vice
President and International Trade Counsel Erik
Autor said. “We will carefully review the text
released today to ascertain whether it can serve as
a basis for achieving the retail industry’s goals
in these negotiations.”
China Agrees to End Subsidies Challenged by the U.S. in the WTO
11/29/07 02:47 PM
China agreed to sign a Memorandum of Understanding (MOU) that is designed to settle a WTO case that the United States and Mexico initiated in February 2007. In the WTO case, the U.S. had alleged that China was maintaining several subsidy programs that are prohibited under WTO rules. The USTR states that most of the challenged subsidies were tied to exports, giving an unfair advantage to Chinese products and denying U.S. manufacturers the chance to compete fairly with them in the U.S. and in third countries.
Under the MOU, China has committed to complete a series of steps by January 1, 2008 to ensure that the WTO-prohibited subsidies cited in the U.S. complaint have been permanently eliminated, and that they will not be re-introduced in the future.
The agreement was made only two weeks before the USTR is to join Treasury Secretary Henry M. Paulson Jr. and other Cabinet members for a high-level meeting of the "strategic economic dialogue" with China that Paulson launched last year to reduce tensions with China.
The USTR's remarks on this issue can be found here.
President Bush Addresses the White House Forum on International Trade and Investment
11/06/07 01:06 PM
Today, President Bush addressed the White House
Forum on International Trade and Investment. His
speech can be found
here.
In his remarks, he urged Congress to pass the Free
Trade Agreements with Peru, Colombia, Panama, and
South Korea. He stated:
We've negotiated fair agreements, and now it's up to the Congress, it's time for the Congress to pass these trade agreements to help build a hemisphere that lives in liberty, and trades in freedom, and grows in prosperity. These trade bills are important economic measures, and they are important national security measures, as well.
WTO Hosting Global Review of Aid for Trade
11/02/07 09:41 PM
On
November 1, 2007, the WTO announced that it will be
hosting "Mobilizing Aid for Trade: A Global Review"
at its Geneva headquarters on November 20-21. 2007.
The review will be preceded by a technical workshop
on monitoring and evaluation of Aid for Trade on
November 19, 2007. The review will also be open to
registered NGOs and the press. The WTO states:
A tentative program can be found here.
The Global Aid-for-Trade Review is the focal point of WTO's monitoring mandate for 2007. It will provide an overview of what is — and what is not — happening in the delivery of Aid-for-Trade, including current flows, existing gaps, and where improvements need to be made. It will also create incentives — by shining a “spotlight” on the issues — to deliver more and better Aid-for-Trade, and to strengthen mutual accountability between partner countries and donors.
A tentative program can be found here.