Secretary of Defense Discusses Reform of the U.S. Export Controls
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.