Ensuring enforcement amid U.S. export reform

Ensuring enforcement amid U.S. export reform    While export control reform is well underway in the United States, the Obama administration on Tuesday warned exporters that enforcement of the regulations remains a top priority.
   The reform, announced by the White House on April 20, calls for significant changes to the way the federal government processes export licenses for controlled U.S.-made military and commercial items. The plan also includes fielding a single computer system for use among the various Commerce, State and Defense department agencies in charge of export controls, and a gradual merger of controlled items lists.

Hirschhorn

   'Concurrently with licensing efficiencies and education efforts, enforcement will become an even higher priority,' said Eric L. Hirschhorn, undersecretary for industry and security, in a speech at the Bureau of Industry and Security's annual Update Conference in Washington Tuesday.
   The reform is expected to allow agencies in charge of export controls to more efficiently concentrate their enforcement resources on violations that threaten national security, such as illicit shipments of military technologies to sanctioned countries or terrorist organizations.
   The recently enacted Comprehensive Iran Sanctions, Accountability and Divestment Act confers permanent law enforcement authorities on BIS's export enforcement agents for the first time. 'This enhances our ability to deter and prosecute violators of the EAR (Export Administration Regulations),' Hirschhorn said.
   BIS also participates in the National Export Enforcement Coordination Network, which includes officials from the FBI, military and homeland security agencies and other intelligence community experts.
   President Obama told Update Conference attendees in a recorded video that he intends to sign an executive order that creates an Export Enforcement Coordination Center to 'coordinate and strengthen our enforcement efforts — and eliminate gaps and duplication — across all relevant departments and agencies.'
   In addition, the administration will seek legislation to transfer BIS's criminal enforcement functions to the Homeland Security Department's Immigration and Customs Enforcement, which would have a separate unit dedicated to enforcement of export control and embargo rules.
   Hirschhorn said the agency understands that companies with the best intentions can still make export mistakes. BIS has long promoted the submission of voluntary self-disclosures (VSDs) when companies discover these errors. 'We view VSDs, along with internal compliance programs, as important mitigating factors,' he said.
   'Where appropriate, we will seek to minimize penalties for companies that have good internal compliance programs and make demonstrably unintentional errors,' he added. 'But — and this is an important but — we are planning increased efforts against individuals who flout the rules and against companies whose inadequate internal compliance programs tell us that they are indifferent to whether they follow the rules.' ' Chris Gillis