NEI Update on Single Export Application Form, Screening List, & IT System, Etc.
On December 2, 2010, Brian Nilsson, Director, Non-Proliferation and Arms Control at the National Security Council, provided an update on the Administration’s export control reform efforts as part of the National Export Initiative (NEI).
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During his remarks, Nilsson announced the development of a single export license application for all agencies and discussed the Administration’s progress on standardizing definitions, the status of the agencies’ migration to a single IT system, development of a standardized format for all of the export agency screening lists, etc. In his remarks, Nilsson emphasized the Administration’s desire to obtain input from the public on the export control reform deliverables it plans to soon make public.
Highlights of Nilsson’s remarks include:
Single Export License Application Form to be Available Soon for Public Comment
The Administration has come up with a single export licensing application form which could eventually be used by State, Commerce, and Treasury (OFAC). The Administration is expected to make the single application form public in early 2011 in order to gain input from the exporting public on whether the form captures all of the data elements necessary to file it for all the licensing agencies.
(The interagency group working on export reform has initially focused a lot of its energy on the development of a single application form because it is the basis for much of its other reform efforts.)
Single Interface Will Allow Applications for All Agencies be Filed in One System
After public input on the draft single application form is received, the Administration can then send it to the IT staff to develop the single export license application interface so that applications can be filed for all agencies through a single system. This would replace the separate application systems that currently exist at State (D-Trade), Commerce (SNAP-R), and OFAC.
Although there is an interagency agreement on what data elements will appear on the single application, other details are still yet to be worked out. In response to a question, Nilsson noted that the single application interface is not likely to be D-Trade, but could be modeled after SNAP-R or some other system.
Details on Standardized Definitions Expected in Early 2011
The development of the single export license application form is also driving the process of standardizing export control-related definitions. There are different definitions for various terms across many of the export agencies and the interagency group is aiming to harmonizing and standardizing definitions. For example, in order to be able to file an application using a single form, the definitions for a term such as “technology” would have to be standardized across the relevant agencies. Such harmonization could require changes to up to 26 different sets of regulations.
Additional details on the standardization of definitions will be issued in early 2011.
State and Commerce Have Begun Migrating to Single IT System
Nilsson noted that the Administration is currently hampered by an inefficient export control information technology system where each agency has its own licensing system (or no system).
As a result, the Administration made the decision to move all of the export control agencies to the Defense Department’s “USXports” internal licensing database. The State Department has begun to migrate to USXports and is expected to be fully operational by early 2011.
The Commerce Department is beta testing the USXports system and could be operational on the system by the end of 2011. After State and Commerce are operational, attention will turn to other agencies, such as the Office of Foreign Assets Control, the Department of Energy, etc.
(See ITT’s Online Archives or 09/10/10 news, 10091011, for BP summary of previous BP summary on USXports.)
Details on New Licensing Policies Expected in Coming Months
The Administration has been working on licensing policies which will be linked to the three-tiered export control system. A lot of behind the scenes work has been done and the Administration is expected to provide details on this in the coming months.
Standardized Format for Screening Lists Developed, to be Debuted Soon
The Administration is also working on standardizing the formats for all the screening lists in order to create a consolidated screening list on one Web site. Agreement has been reached among the agencies on a standardized format and the single list is expected to be debuted shortly.
Background on the Administration’s Export Control Reform Efforts
In April 2010, Defense Secretary Gates announced a broad set of reform recommendations, including a new export control system that would be based on the “4 singles,” (1) a single, tiered export control list, (2) a single newly-created export licensing agency, (3) a single agency to coordinate enforcement, and (4) a single unified IT system. In late August, President Obama detailed the first steps being taken toward implementation of export control reform, including the splitting of the USML and CCL into three tiers and assigning corresponding licensing policy for all items.
(See ITT’s Online Archives or 09/03/10 news, 10090315, for most recent BP summary on the three phases of the Administration’s export control reform efforts.)