GAO concerned that controlled exports end up in wrong hands

GAO concerned that controlled exports end up in wrong hands    A U.S. General Accounting Office report found that the Commerce Department did few checks to verify that controlled exports do not end up in the wrong hands overseas.
   According to the report, the Commerce Department approved 26,340 licenses for the export of so-called “dual-use” items, or those goods that could be used for both commercial and military purposes, during fiscal years 2000-2002. The GAO cited that 28 percent of the controlled exports went to countries of concern, such as China, India and Russia.
   The GAO found that during fiscal years 2000-2002 the Commerce Department only completed 428 post-shipment verifications, or about 6 percent, for dual-use shipments. The GAO also identified three key weaknesses in Commerce's post-shipment verifications:
   * Verifications do not confirm compliance with license conditions because U.S. officials frequently don’t check license conditions and lack technical training to assess compliance.
   * Some countries of concern, most notably China, limit the U.S. government’s access to facilities where dual-use items are shipped.
   * Verification results have only a limited impact on future licensing decisions.
   The Commerce Department does attach conditions to 99 percent of the licenses for countries of concern to try to eliminate diversion or misuse. Companies receiving an unfavorable post-shipment verification may receive greater scrutiny on future licensing decisions.
   However, to improve the post-shipment verification system for controlled exports, the GAO recommended that the Commerce Department:
   * Improve technical training for enforcement staff conducting the verifications.
   * Ensure that staff carrying out verifications assess compliance with license conditions.
   * Require the exporter to inform the end user in writing of the license conditions.
   The Commerce Department generally agreed with the GAO’s recommendations and said it has taken steps to improve its post-shipment verification process.