BIS studies reasons for under-used export licenses
The U.S. Commerce Department's Bureau of Industry and Security wants to know why so many export licenses that it issues to companies appear to be unused or used for less than the authorized quantity or value limits.
The agency said in a Federal Register notice of inquiry Friday that it's 'particularly interested in whether characteristics of the export license application review process induce applicants to apply for greater authorizations than they need and, if such is the case, any costs associated with such applicants.'
BIS issues licenses for exports subject to the Export Administration Regulations. Most licenses are valid for two years.
A recent BIS review of export data from the government's Automated Export System indicated that by the end of calendar year 2007, 48 percent of the licenses issued in calendar year 2005 for the export of commodities had not been used at all. The agency also found that some licenses may have been used for less than their full quantity or value.
In addition, BIS said it has no basis for estimating whether a similar lack of use or under-use exists with licenses for software or technology exports because these exports are often 'intangible and, therefore, not reported in AES.'
The agency requested that industry comments be received by no later than May 4. For more details and contact information, access the BIS Federal Register notice.
