Export Reform's Single Licensing System to be DoD's USXports
The Directorate of Defense Trade Controls has posted the minutes of its July 2010 Defense Trade Advisory Group Plenary Session, which includes, among other things, a National Security Council official’s update on export control reform.
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(Brian Nilsson, Director for Nonproliferation and Arms Control at the National Security Council, provided the update.)
Task Force Working on New 3-Tier Control List Criteria
Nilsson stated that the Export Control Reform (ECR) task force is engaged in a comprehensive review of export controls, and is establishing an independent set of criteria for a new 3-tier control list, which encompasses the State and Commerce lists. The “crown jewels” merit the highest tier of control. The next two tiers offer more flexibility for exporters. For example, on the lower tiers, the level of review for finger printing powder is much less than that for a five axis machine, which would be included in a higher tier level.
Nilsson explained that the intent is that tier 1 “crown jewels” include weapons of mass destruction and technologies available almost exclusively in the U.S. or provided only to U.S. forces. Nilsson stated that details would be coming soon.
CJ Process Would Be Gone With Tier System, Replaced by Tier Disputes
In response to a DTAG member’s question on what would happen if an item did not fit into a tier or there was disagreement on tier placement with the proposed tier system, Nilsson responded that the commodity jurisdiction (CJ) process would be gone, but there would be tier disputes.
For example, Tier 1, the highest control, might apply to a product today, but in ten years, it may move down to Tier 2. Products could move up as well.
Single Licensing System to be New Version of DoD’s USXports
Nilsson stated that the Departments of State, Commerce, and Treasury are working together on making USXports the single licensing system. USXports was implemented by the Department of Defense in 2003, and took several years to develop.
A DTAG member commented on the DDTC licensing system, D-Trade, noting that it took ten years, money, and resources to get to where it is today. The proposed new version of USXports would need time to develop and implement.
(See ITT’s Online Archives or 09/03/10 news, 10090315, for BP summary containing an overview of the 3 phases of export reform, as well as the 3-tier control list.
See ITT’s Online Archives or 08/31/10 news, 10083113, for BP summary of the President’s remarks detailing first steps towards implementation of export control reform.
See ITT’s Online Archives or 07/02/10 news, 10070215, for BP summary of remarks by a National Security Advisor on the Administration's plans and progress to-date on export control reform.
See ITT’s Online Archives or 09/09/10 and 07/15/10 news, 10090928 and 10071524, for BP summaries of DTAG Working Group proposals of a new license exemptions for defense articles incorporated into commodities subject to the EAR, and for certain spare parts at the July 2010 Plenary.)