Recommendations for Modernizing Export Controls on Munitions List Items

Tue, 06 Mar 2007 00:00:00 EST

Executive Summary

The United States currently faces unprecedented threats to its security both at home and abroad. In confronting these threats, we must be able to exploit the full advantage we derive from our economic strength and technological prowess. To that end, the U.S. export control system must be modernized so that it is better able to respond quickly and effectively to evolving security threats, and promote our nation’s continued economic and technological leadership. The Coalition for Security and Competitiveness, representing multiple industry and trade associations, is committed to working with the Executive Branch and Congress in a cooperative spirit to accomplish these important goals.

To modernize the system and make it more efficient, predictable and transparent, the Coalition has developed the following eleven recommendations on export controls for munitions list items.

State strategic policy principles for defense and technology trade and cooperation
Appoint a senior director at the NSC responsible for defense trade, export policy and technology cooperation
Create a presidential advisory body on defense trade and security cooperation
Re-program funds for the Directorate of Defense Trade Controls (DDTC) to add a sufficient number of officers for agreements, licenses and commodity jurisdiction evaluations
Ensure accurate interpretation and consistent use of International Traffic in Arms Regulations (ITAR) that govern the commodity jurisdiction process
Keep items, particularly FAA-certified equipment, on the Commerce Control List (CCL) until after a final commodity jurisdiction determination is made
Implement more efficient, effective, and transparent licensing procedures and technology disclosure review processes
Establish a quarterly interagency appeals process (at the political appointee level) for decisions on critical jurisdiction and licensing applications
Provide industry "intent to deny" and "intent to Return Without Action" feedback before such decisions are finalized
Accelerate implementation of a more robust electronic system for processing and tracking license applications, including licenses that require congressional notification
Require license and agreement processing to follow reasonable and predictable metrics

A more detailed description of the Coalition's concerns and proposals for action is provided in the attached recommendations. Additional recommendations for modernizing export controls on dual-use items, as well as other information on the Coalition, can be found on www.securityandcompetitiveness.org.

Recommendations for Modernizing Export Controls on Dual-Use Items

Tue, 06 Mar 2007 00:00:00 EST

Executive Summary

The United States currently faces unprecedented threats to its security both at home and abroad. In confronting these threats, we must be able to exploit the full advantage we derive from our economic strength and technological prowess. To that end, the U.S. export control system must be modernized so that it is better able to respond quickly and effectively to evolving security threats, and promote our nation's continued economic and technological leadership. The Coalition for Security and Competitiveness, representing multiple industry and trade associations, is committed to working with the Executive Branch and Congress in a cooperative spirit to accomplish these important goals.

To modernize the system and make it more efficient, predictable and transparent, the Coalition has developed the following eight recommendations on export controls for dual-use items:

Create a license exception for the transfer of controlled items within companies
Certify foreign end-users with strong compliance programs for favorable treatment
Enhance procedural transparency in the licensing process to help companies comply
Enhance the Commerce Department's role in the "commodity jurisdiction" process for determining whether or not dual-use products should be treated as defense products and subject to State Department licensing
Streamline the current complex controls on products with encryption features
Ensure timely updates of the Commerce Control List (CCL) to reflect market availability
Expand factors used to determine "foreign availability" of controlled items
Revise the "re-export" controls to level the playing field for U.S. companies vis-à-vis foreign competitors.

A more detailed description of the Coalition's concerns and proposals for action is provided in the attached recommendations. Additional recommendations for modernizing export controls on Munitions List items, as well as other information on the Coalition, can be found on www.securityandcompetitiveness.org.

The Coalition for Security and Competitiveness - Our Proposals

Recommendations for Modernizing Export Controls on Munitions List Items

Recommendations for Modernizing Export Controls on Dual-Use Items