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BIS Requests Comments on SME Export Compliance

The Bureau of Industry and Security has issued a notice of inquiry to solicit comments from the public regarding small and medium enterprises’ (SMEs) understanding of and compliance with export controls maintained pursuant to the Export Administration Regulations (EAR).

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BIS anticipates that the comments will help it administer and enforce export controls in a manner consistent with national security while facilitating and even increasing legitimate trade involving SMEs and the exporting community in general. Comments are due by December 6, 2010.

BIS Wants Public to Identify Issues, Make Recommendations

BIS is soliciting information regarding SMEs’ understanding of and compliance with the EAR. BIS notes that comments that identify issues and make recommendations regarding SMEs’ awareness and understanding of the EAR, as well as their experiences complying with the EAR, will be instructive. BIS invites the public to also submit comments on the following:

  • The principal challenges SMEs face in trying to comply with the EAR, including any challenges that SMEs uniquely face and approaches to overcoming these challenges;
  • The value of current BIS outreach, education and counseling to SMEs in understanding and complying with the EAR;
  • Ways to improve or expand SMEs’ awareness, knowledge and understanding of the EAR and increase their capacity to comply with them; and
  • Data, including comparative international data, that support comments and recommendations related to the above-listed items; and that provide examples of effective methods of administering and enforcing export controls with special attention to SMEs.

BIS Intends to Use Info to Enhance SMEs’ Understanding/Compliance with EAR

BIS intends to use the information to evaluate the need for innovations and revisions that will enhance SMEs’ understanding of and compliance with the EAR. Given SMEs’ strategic position in export trade, the EAR must continue to address SMEs’ concerns in a manner that promotes compliance without adversely affecting competitiveness.

(President Obama’s August 2009 call for broad-based review and modernization of U.S. export controls presented BIS a strategic opportunity to reach out to regulated groups such as SMEs regarding their experience with the EAR.

More recently, the President’s National Export Initiative (NEI) announced in January 2010 focuses on expanding trade advocacy and opportunities, particularly for SMEs. Pursuant to the NEI, the International Trade Administration will seek to increase the number of SMEs exporting over the next five years. BIS continues to develop the agency’s commitment to addressing SMEs’ concerns through its outreach efforts. At its October 2009 annual Update Conference on Export Controls, BIS led a roundtable discussion on SMEs’ export compliance concerns.)

(See ITT’s Online Archives or 09/01/10 news, 10090114, for BP summary of a BIS official saying that the agency is mining AES data to identify SME and other exporters of interest, etc.

See ITT’s Online Archives or 09/20/10 news, 10092023, for BP summary of the Export Promotion Cabinet submitting its recommendations for doubling exports.)

BIS contact- Sheila Quarterman (202) 482-2440 or email squarter@bis.doc.gov