BIS Request Comments on Two Recommendations of the Deemed Export Advisory Committee
The Bureau of Industry and Security is requesting comments by August 18, 2008 on two recommendations made by the Deemed Export Advisory Committee in 20071 with respect to BIS' deemed export licensing policy, as follows:
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Narrowing Scope of Subject Technologies
The DEAC asked BIS to narrow the scope of technologies on the Commerce Control List (CCL) and involve an outside panel of experts to conduct an annual "zero-based" review2 of which technologies should be on the CCL, with an eye toward determining which technologies should be subject to deemed export licensing requirements.
BIS notes that while many technologies on the CCL are subject to multilateral controls and thus cannot be changed unilaterally by the U.S., deemed export licensing requirements are not. Therefore, BIS is focusing this recommendation for a "zero-based" review only on those technologies that should be subject to deemed export licensing requirements.
With respect to the DEAC's recommendation for an outside, zero-based review of technologies, BIS is seeking comments on whether technologies on the CCL that are subject to deemed export licensing requirements should be narrowed to a few critical technologies (i.e., a narrower set of technologies than those on the current CCL).
If so, BIS states that it would like comments to address which technologies should be subject to deemed export licensing requirements and what criteria should be used to make that determination.
(In response to this recommendation, BIS recently formed the Emerging Technologies and Research Advisory Committee (ETRAC), a technical advisory committee that will make recommendations to BIS regarding emerging technologies on a regular basis as well as advise BIS on the conduct of a "zero-based" technology review envisioned by the DEAC. See ITT's Online Archives or 04/28/08, 08042815, for BP summary.)
Home Country Determinations
The DEAC also asked BIS to expand its criteria for determining the home country of the foreign national for deemed export licensing purposes, in favor of a more comprehensive assessment of a foreign national's country of affiliation.
Specifically, the DEAC recommended expanding the determination of national affiliation to include country of birth, prior countries of residence, current citizenship, and character of individual's prior and present activities to provide an increased level of assurance that technology subject to deemed export licensing requirements would not be diverted to unauthorized end-users or activities.
BIS is seeking comments on the DEAC's recommendation to expand the criteria for determining national affiliation of foreign nationals for deemed export licensing purposes.
Regarding the DEAC recommendation that a more comprehensive assessment of foreign national affiliation should be used in the context of making home country determinations in the deemed export licensing process. BIS is interested in public comments addressing the issue of making foreign national affiliation determinations in situations where a foreign national's ties may be easily established and in situations where it may be difficult to determine where a foreign national's ties lie (such as for a foreign national employed at a prohibited entity).
1In December 2007, the DEAC submitted a report to the Secretary of Commerce entitled "The Deemed Export Rule in the Era of Globalization," which reviewed the current deemed export policy and recommended changes. (See ITT's Online Archives or 01/23/08 news, 08012330, for BP summary of the report. See ITT's Online Archives or 03/17/08 news, 08031715, for BP summary of trade organization criticism of DEAC report.)
2A zero-based review means determining what should be controlled without reference to what is currently controlled, rather than reviewing current controls and identifying what should be decontrolled.
(See ITT's Online Archives or 04/28/08 news, 08042820, for BP summary of BIS' new CCL review process.)
BIS contact - Alex Lopes (202) 482-4875
BIS notice of inquiry (D/N 080512652-8653-01, FR Pub 05/19/08) available at http://edocket.access.gpo.gov/2008/pdf/E8-11169.pdf.