Trade Organizations Criticize DEAC Report on "Deemed Export" Policy
The National Foreign Trade Council (NFTC) and eleven other trade organizations1 (the organizations) sent a letter to the Secretary of Commerce criticizing the Bureau of Industry and Security's Deemed Export Advisory Committee (DEAC) report, which reviewed and recommended changes to the current deemed export policy.
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(In its report, the DEAC concluded that the existing deemed export regulatory regime no longer effectively serves its intended purpose and should be replaced with an approach that better reflects the realities of today's national security needs and global economy.
The DEAC offered two recommendations: (1) replace the current deemed export licensing process with a simplified new process that will both enhance national/homeland security and strengthen U.S. economic competitiveness; and (2) extend the educational outreach program currently conducted by BIS to help assure that all parties potentially subject to licensing with the deemed export rules are familiar with those rules.)
Organizations State DEAC Report Lacks Specific Guidance, Etc.
The organizations state that there is a disparity between the DEAC's analysis of the difficulties of regulating the transfer of technological knowledge and its specific recommendations.
While the organizations agree with the DEAC that the scope of deemed export controls should be sharply circumscribed, they note that the DEAC does not provide specific guidance on how to limit the scope of dual-use technologies subject to licensing, and leaves to the interagency process the tasks of identifying both controlled technologies and the nationalities of foreign persons to be subject to deemed export licensing.
The organizations also state that DEAC does not adequately consider the U.S. government's long-standing resistance to taking foreign availability into account.
Moreover, the DEAC's suggested "probable loyalty" test would be tantamount to processing Top Secret security clearances, and result in more foreign nationals being subject to controls.
(See organizations' letter to Commerce Secretary for full critique.)
1AeA; American Council on International Personnel; Association for Manufacturing Technology; Coalition for Employment Through Exports; Computer and Communications Industry Association; Computer Coalition for Responsible Exports; Emergency Committee for American Trade; Information Technology Industry Council; International Safety Equipment Association; National Council on International Trade Development; and U.S.-China Business Council.
(See ITT's Online Archives or 01/23/08 news, 08012330, for BP summary of the DEAC report.)
Letter to Commerce Secretary (dated 02/15/08) available at http://www.nftc.org/default/VISA/DEAC%20Letter.pdf
NFTC press release (dated 02/15/08) available at http://www.nftc.org/newsflash/newsflash.asp?Mode=View&articleid=1932&Category=All