GAO Reports on Post-Shipment Verifications of Certain Exported Dual-Use Technologies
The General Accounting Office (GAO) has issued a report entitled, Export Controls: Post-Shipment Verification Provides Limited Assurance That Dual-Use Items Are Being Properly Used, in response to a request by Senator Jon Kyl.
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According to the GAO, the Department of Commerce (Commerce) conducts post-shipment verification (PSV) checks to ensure that certain dual-use technologies, which could be used to enhance the military capabilities of countries of concern, arrive at their intended destination and are used for the purposes stated in the export license.
The GAO states that during fiscal years 2000 to 2002, Commerce completed PSV checks on about 6% of the dual-use licenses it approved for countries of concern.
Three key weaknesses in PSV process. The GAO states that it identified three key weaknesses in the PSV process, as follows:
PSVs do not confirm compliance with license conditions because U.S. officials frequently do not check license conditions, they often lack the technical training to assess compliance, and end users may not be aware of the license conditions by which they are to abide;
some countries of concern (e.g., China) limit the U.S. government's access to facilities where dual-use items are shipped, making it difficult to conduct a PSV; and
PSV results have only a limited impact on future licensing decisions. Companies receiving an unfavorable PSV may receive greater scrutiny in future license applications, but they can still receive an export license. In addition, according to Commerce officials, past PSV results play only a minor role in future enforcement actions.
Recommendations. The GAO recommends that Commerce (1) improve technical training for enforcement personnel conducting PSV checks, (2) ensure that personnel conducting PSV checks assess compliance with license conditions, and (3) require that the exporter inform the end user in writing of the license conditions.
GAO Report (GAO-04-357, dated January 2004) available at http://www.gao.gov/new.items/d04357.pdf