'This groundbreaking study raises fundamental questions about whether U.S. export controls have become inadequate at a time when the United States faces a growing number of threats to our interests around the world — threats which are becoming more complex precisely because dangerous regimes and terrorist groups are moving up the technology ladder,' Hyde said in a statement Thursday.
'It also challenges conventional wisdom about the relative burden to U.S. exporters of controls on sensitive dual-use technology,' he added. 'That burden appears to be quite undemanding overall.'
Hyde also said the report supports his conclusion that something needs to be done to 'eliminate regulatory loopholes permitting unlicensed exports to China for military and intelligence purposes.'
The Government Accountability Office found that less than 1 percent of exports subject to Commerce regulations were licensed in 2005. The dollar value of unlicensed exports was about $624 billion, while the value of licensed exports was about $1.2 billion, the GAO report noted.
Items identified under Commerce's jurisdiction were largely exported to Asian countries, such as China, Taiwan and Singapore, and to European countries, such as France and the United Kingdom. The GAO report said top exports by value were aircraft, computers, equipment to make semiconductors, telecommunications equipment and chemicals. The GAO based its analysis on 2005 export data collected from the Census Bureau's Automated Export System.
In a June 2006 report, the GAO criticized Commerce's Bureau of Industry and Security for not using available information to evaluate its existing export controls. The report also said the current BIS system omits certain known terrorist groups from its watch list.
'The data could aid in determining the economic impact of current regulations and in evaluating whether exporters are complying with regulations,' the latest GAO report said. 'BIS officials told us they periodically use portions of the data for enforcement activities, but currently do not use the data to evaluate the system's effectiveness.'
BIS recently proposed rules that it hopes would improve controls over certain high-tech exports to China without interrupting legitimate trade. So far, the proposed rule has been widely criticized by many large industry groups.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now