BIS Requests Comments on Foreign Policy-Based Export Controls
The Bureau of Industry and Security is seeking public comments on how existing foreign policy-based export controls have affected exporters and the general public in its review of these controls in the Export Administration Regulations to determine whether they should be modified, rescinded, or extended.
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Comments are due by October 8, 2010.
(Foreign policy-based controls in the EAR are implemented pursuant to Section 6 of the EAA. The current foreign policy-based export controls maintained by BIS are set forth in the EAR, including in 15 CFR Parts 742 (CCL Based Controls), 744 (End-User and End-Use Based Controls) and 746 (Embargoes and Other Special Controls). These controls apply to a range of countries, items, activities, and persons.)
Comments Will be Considered for Report to Congress
Under the provisions of section 6 of the Export Administration Act of 1979, as amended, export controls maintained for foreign policy purposes require annual extension. Section 6 of the EAA requires a report to Congress when foreign policy-based export controls are extended.
BIS is now soliciting public comment on the effects of extending or modifying the existing foreign policy-based export controls for another year. Timely comments will be considered by BIS in reviewing the controls and developing its report to Congress.
Comments Sought on Whether to Continue or Revise Foreign Policy Controls
Among the criteria considered in determining whether to continue or revise U.S. foreign policy-based export controls are the following:
- The likelihood that such controls will achieve their intended foreign policy purposes, in light of other factors, including the availability from other countries of the goods, software or technology proposed for such controls;
- Whether the foreign policy objective of such controls can be achieved through negotiations or other alternative means;
- The compatibility of the controls with the foreign policy objectives of the U.S. and with overall U.S. policy toward the country subject to the controls;
- Whether the reaction of other countries to the extension of such controls is not likely to render the controls ineffective in achieving the intended foreign policy objective or be counterproductive to U.S. foreign policy interests;
- The comparative benefits to U.S. foreign policy objectives versus the effect of the controls on the export performance of the United States, the competitive position of the U.S. in the international economy, the international reputation of the U.S. as a supplier of goods and technology; and
- The ability of the U.S. to effectively enforce the controls.
Particular Interest in Comments on Economic Impact, Industry Info
BIS is particularly interested in receiving comments on the economic impact of proliferation controls. BIS is also interested in industry information relating to the following:
- Information on the effect of foreign policy-based export controls on sales of U.S. products to third countries (i.e., those countries not targeted by sanctions), including the views of foreign purchasers or prospective customers regarding U.S. foreign policy-based export controls.
- Information on controls maintained by U.S. trade partners. For example, to what extent do U.S. trade partners have similar controls on goods and technology on a worldwide basis or to specific destinations?
- Information on licensing policies or practices by our foreign trade partners that are similar to U.S. foreign policy-based export controls, including license review criteria, use of conditions, and requirements for pre- and post-shipment verifications (preferably supported by examples of approvals, denials and foreign regulations).
- Suggestions for revisions to foreign policy-based export controls that would bring them more into line with multilateral practice.
- Comments or suggestions as to actions that would make multilateral controls more effective.
- Information that illustrates the effect of foreign policy-based export controls on trade or acquisitions by intended targets of the controls.
- Data or other information on the effect of foreign policy-based export controls on overall trade at the level of individual industrial sectors.
- Suggestions as to how to measure the effect of foreign policy-based export controls on trade.
- Information on the use of foreign policy-based export controls on targeted countries, entities, or individuals.
(See ITT’s Online Archives or 08/16/10 news, 10081630, for BP summary of the President’s recent extension of EAA export authorities for another year.)
BIS contact -- Foreign Policy Division (202) 482-4252
(D/N 100719301-0303-02, FR Pub 09/08/10)