Trade coalition looks to capitalize on U.S. export control reform momentum

A group of some of the largest international trade associations has asked the Obama administration to press forward with key aspects of the Export Control Reform (ECR) Initiative.    A group of some of the largest international trade associations has asked the Obama administration, now in its waning days, to press forward with key aspects of the Export Control Reform (ECR) Initiative and laid the groundwork for what it views are important steps for the next president’s staff to carry forward.
   The Obama administration announced the ECR in 2009 as a way to update and modernize the country’s outdated, Cold War-era export controls. With inter-agency cooperation between the Commerce, State and Defense departments, numerous changes have so far been made to way U.S. regulators license “dual-use” items, which are known for both their commercial or military uses.
   The Coalition for Security and Competitiveness (CSC) outlined what it considers to be the current administration’s short-term priorities in a letter to the White House on Friday.
   “The CSC strongly urges the administration to complete the review and reconciliation of the U.S. Munitions List (USML) and Commerce Control List (CCL). The relevant interagency review and stakeholder discussions have been completed, and we urge the departments of State and Commerce to publish those proposed rules in the Federal Register and move toward finalizing the proposed changes,” the coalition wrote.
   CSC praised the Obama administration’s announcement to review the effectiveness of the USML and CCL changes on an ongoing basis. 
   “We urge the administration to institutionalize that process, including changing federal advisory committee structures as needed to ensure broad technical inputs are received on the scope and application of controls on technologies,” the coalition said.
   Also in the short-term, the coalition urged the administration to complete harmonization of definitions in the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR); transition to single information technology system and single portal/single form, known as USXports; negotiate new multilateral controls on intrusion and surveillance items; and ensure efficient processing times for license applicants at the State and Commerce departments.
   The CSC’s medium- and long-term objectives for the ECR include establishing expedited procedures for defense and security technology exports to support U.S. government, military, and intelligence interests abroad; encouraging the Commerce Department to pursue a “program license” model for technologies controlled on the CCL that encompasses situations where multiple U.S. companies are exporting to a vetted overseas end-user or a single company has multiple export transactions with a vetted overseas end-user; implementing an effective and efficient intra-company transfer (ICT) license exception; developing simplified, recalibrated encryption controls; promoting cooperation between commercial innovators and the Defense Department; and developing a cooperative information-sharing program between the government and the exporting community.
   Members of the CSC are the Aerospace Industries Association, American Association of Exporters and Importers, The American League for Exports and Security Assistance, AMT (The Association for Manufacturing Technology), Business Roundtable, Coalition for Employment through Exports, General Aviation Manufacturing Association, Industrial Fasteners Institute, IPC (Association Connecting Electronics Industries, Information Technology Industry Council), National Association of Manufacturers, National Defense Industrial Association, National Foreign Trade Council, Satellite Industry Association, Space Enterprise Council, Space Foundation, TechAmerica, and U.S. Chamber of Commerce.