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Export Controls and High Performance Computers

Export Controls and High Performance Computers. Jennifer Lord Kouraichi Riho Kruuv Jennifer King Tome Tanevski. Definition of Export Controls. Most often used to protect National Security

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Export Controls and High Performance Computers

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  1. Export Controls and High Performance Computers Jennifer Lord Kouraichi Riho Kruuv Jennifer King TomeTanevski

  2. Definition of Export Controls • Most often used to protect National Security • Largely regulated by the State Department’s Office of Defense Trade Controls (DTC), Bureau of Political-Military Affairs • Industrial products regulated by the Department of Commerce’s Export Control Administration • Require companies to obtain licenses to export listed products

  3. Brief History • The Neutrality Act of 1935 • Mutual Security Act of 1954 • Export Administration Act of 1969 • Export Administration Act of 1979 • Arms Export Control Act of 1976 • National Defense Authorization Act of 1998 • National Defense Authorization Act of 2000

  4. Afghanistan Angola Burma Belarus China (PR) Cuba Cyprus Haiti India Indonesia Iran Iraq Liberia Libya North Korea Pakistan Rwanda Somalia Sudan Syria Vietnam Yemen Zaire Zimbabwe Main Countries Under Restriction

  5. United States Government Departments and Agencies with Export Control Responsibilities • In general, four U.S. Government agencies have primary export licensing responsibilities: • Department of Commerce • Department of State • Department of Energy • Department of the Treasury

  6. United States Government Departments and Agencies with Export Control Responsibilities • Department of Commerce, Bureau of Industry and Security (is the primary licensing agency for dual use exports i.e.. commercial items which could have military applications) • Department of State, Office of Defense Trade Controls (DTC; Licenses defense services and defense (munitions) articles) • Department of the Treasury; Office of Foreign Assets Control (OFAC; Administers and enforces economic and trade sanctions against targeted foreign countries, terrorism sponsoring organizations, and international narcotics traffickers)

  7. United States Government Departments and Agencies with Export Control Responsibilities • Nuclear Regulatory Commission, Office of International Programs (Licenses nuclear material and equipment.) • Department of Energy: • Office of Arms Controls and Nonproliferation, Export Control Division (Licenses nuclear technology and technical data for nuclear power and special nuclear materials) • Office of Fuels Programs (Licenses natural gas and electric power) • Department of Defense, Defense Threat Reduction Agency -Technology Security (Responsible for the development and implementation of policies on international transfers of defense-related technology, and reviews certain dual-use export license applications referred by Commerce)

  8. United States Government Departments and Agencies with Export Control Responsibilities • Department of the Interior, Division of Management Authority (Controls the export of endangered fish and wildlife species) • Drug Enforcement Administration: • International Drug Unit (Oversees the export of controlled substances) • International Chemical Control Unit (Controls the import and export of listed chemicals used in the production of control substances under the Controlled Substances Act) • Food and Drug Administration: • Office of Compliance (Licenses medical devices) • Office of Import/Export (Licenses drugs)

  9. United States Government Departments and Agencies with Export Control Responsibilities • Patent and Trademark Office, Licensing and Review (Oversees patent filing data sent abroad) • Environmental Protection Agency, Office of Solid Waste, International and Special Projects Branch (Regulates toxic waste exports)

  10. International Export Control Organizations • “Whether seeking to control the spread of dangerous goods and technologies, protect critical infrastructures, or ensure the existence of a strong defense industrial base, international cooperation is critical” • Kenneth I. JusterUnder Secretary of Commercefor Industry and Security, • October 2002

  11. International Export Control Organizations • In general, there are four multilateral nonproliferation arrangements or regimes: • - the Missile Technology Control Regime (MTCR) • - the Australia Group (AG) Chemical/Biological regime • - the Nuclear Suppliers Group (NSG) • - the Wassenaar Arrangement (WA) Conventional Arms and • Dual-Use Goods and Technologies regime

  12. The Missile Technology Control Regime (MTCR) • Created in 1987 • Member states (Partners) seek to limit the proliferation of missiles capable of delivering WMD and related equipment and technology • The centerpiece of the regime is a common export policy known as the MTCR Guidelines, applied to a common list of controlled items known as the MTCR Annex, which each Partner country implements according to its own laws • MTCR is not a treaty or a legally-binding arrangement! • 33 Partner countries/members

  13. The Australia Group (AG) • Established in 1984 • Was formed to ensure that companies and persons in participating countries did not - either intentionally or inadvertently - assist states and other actors seeking to acquire a CBW capability • Also works toward harmonizing participants’ export controls • Controls chemical and biological weapons-related goods • Control list covers 54 precursor chemicals used for CW production, many biological toxins and microorganisms with high potential for BW use, as well as dual-use production equipment, technology, and facilities • AG is not a treaty or a legally-binding arrangement! • 33 members

  14. The Nuclear Suppliers Group (NSG) • Formed in 1974 • NSG Guidelines for Nuclear Transfers, first published in 1978, required the following for exports of nuclear materials and equipment: • (1) formal recipient government assurances confirming the application of IAEA safeguards and pledging no nuclear explosive use • (2) adequate physical protection • (3) particular caution in the transfer of sensitive materials • In 1992, the NSG added the requirement for full scope IAEA safeguards as a condition of supply to non-nuclear weapons states of nuclear Trigger List items (called the "Trigger List" because such exports trigger the requirement for safeguards) • NSG is not a treaty or a legally-binding arrangement! • Includes 40 countries

  15. The Wassenaar Arrangement (WA) • Established in 1996 • Promotes transparency, responsibility, and restraint in transfers of conventional arms and related dual-use products • Coordinates control lists of such items and all members have agreed to avoid transfers of listed items to military end-users in "countries of concern.” (Iran, Iraq, Libya, and North Korea) • Members exchange information on arms transfers, sensitive list dual-use transfers, and denials of basic list and sensitive list dual-use items • WA is not a treaty or a legally-binding arrangement! • Includes 32 counties

  16. Legally Binding Multilateral Non-Proliferation Mechanisms • Treaties or conventions • Establish basic norms related to chemical, biological, and nuclear weapons • Legally binding on members and global in scope • They are: • Chemical Weapons Convention (CWC) • Biological Weapons Convention (BWC) • Nuclear Nonproliferation Treaty (NPT) • International Atomic Energy Agency (IAEA).

  17. High Performance computers (HPCs) are important for the US to develop and deploy a variety of military national interests • Nuclear Weapons Development • Design and Testing of Ballistic Missiles • Intelligence Analysis and Code-Breaking • Military Command and Control

  18. Number of operations that the computer’s processor or group of processors can perform in one second Core of export controls Artificial and only used for export control purposes Does not accurately measure performance of current microprocessors MTOPS based hardware controls are irrelevant CTP (Composite Theoretical Performance): refers to the measurement standard of a system’s cumulative MTOPs capability MTOPS- Millions of Theoretical Operations Per Second

  19. Countries were divided into 4 tier groups in 1995, but in January 2001 tier 2 was combined with tier 1 making a 3 tiered country group structure • Tier 1- Western Europe, Japan, Canada, Mexico, Australia, New Zealand, Hungary, Poland, the Czech Republic, and Brazil and what was formerly Tier 2- South and Central America, South Korea, ASEAN, Slovenia, and most of Africa • Tier 3- India, Pakistan, All Middle East/Maghreb, former Soviet Union, China, Vietnam, and the Balkans • Tier 4- Iraq, Iran, Libya, North Korea, Cuba, Sudan, and Syria

  20. ISSUES • Military applications do not require super computing power. Especially for weapons & design. • US designed and built its weapons with computers of 500 to 1000 MTOPS and at the time they were considered super computers. • Current level of MTOPS that require individual license were recently raised from 85, 000 to 190,000 MTOPS. • MTOPS have come under pressure because performance increases of HPC’s in the last 5 years has forced the US to choose between raising control levels or licensing millions of commodity level computers.

  21. Changes in the U.S. Export Control Threshold for High PerformanceComputers, 1993-2002 (Measured in MTOPs)

  22. F-22- Most advanced US Fighter- was designed with a 958 MTOPS Cray super computer.

  23. US NAVY EP-3E uses 240 MTOPS Workstations

  24. Export Administration Regulations(EAR) • Administered by USDOC/Bureau of Export Administration (BXA) • License Exception CTP: authorizes exports/re-exports without a license • -HPCs < 28,000 MTOPs generally do not require a license • -HPCs eligible for License Exception CTP can’t be accessed physically or computationally by Tier 4 nationals; limited exceptions • Security Safeguard Plans • -Usually required for military or university end-users • Import Certificates & Post-Shipment Verification

  25. A Basic Approach to Export Licensing • 1. Identify the destination country & its Computer Tier • 2. Identify the end-user, -use • Is the end-user a commercial entity, military organization, or a university (or other research institution)? • 3. Identify the MTOPs level of the HPC • 4. Identify the CTP level of the end-user’s existing system • 5. Determine whether an upgrade would exceed the enforceable CTP threshold • 6. Determine whether the end-user will limit access to the system &/or permit remote system access • 7. Determine whether the export intended for re-export • Export Application Review Process • 1. BXA registers receipt of export license application & notifies interagency offices (DOD, Energy, & State) within 24 hours • 2. Within 10 days, BXA must assess interagency positions • 3. Transaction may proceed on 11th day, if no objections • 4. Any objection requires exporter to file for an export license

  26. State and Commerce Departments’ License Processing Time FY 2000

  27. SPECIAL ISSUES Exports to the People’s Republic of China (PRC) -Require a PRC End-User Certificate, regardless of dollar value -Receiving entity, commercial or government, must agree to the authorized conditions of use -PRC End-User Certificate developed as a result of growing concern over the PRC’s rapid acquisition of computing power Exports to/for Nuclear, Chemical, Biological,or Missile End-Users, -Uses -License Exception CTP eligibility is prohibited for exports/re-exports for military, nuclear, biological, chemical, missile end-uses and users

  28. Clinton Administration Understood inability to effectively control computer hardware Preferred to remove most controls on computer hardware exports Recognized that the new administration needed an opportunity to examine such a proposal Regrouped countries from four “tiers” to three “tiers” (January 2001) Proposed a longer term strategy for the consideration of the next administration Bush Administration Announced (01/02/02) that the Tier 3 licensing threshold of 85,000 MTOPS will be raised to 190,000 MTOPS (effective since 03/06/02) Moved Latvia from Tier 3 to Tier 1 (effective since 06/02/02) Stated, “These changes reflect the President's ongoing effort to update the U.S. export control system so that it protects U.S. national security, while at the same time, allows America's high tech companies to innovate and compete in today's marketplace” US Administrations’ Positions on EC of HPC

  29. UPDATE: U.S. Export Control Policy in 2002 • The EAR has been consistently re-authorized by Presidential Executive Orders; the latest was on August 20 • Senator Bennet’s proposal, SB 149, (and companion HR 1553) would repeal export control laws for technologies already widely available overseas • Representative Gilman’s proposal, HR 2581, would reauthorize the EAR and strengthen export control laws • -Redefine “foreign availability” and “mass market” designations • -Replace the MTOPs measure • -Create National Security Control Lists • Bush Administration supports Senator Bennet’s proposal; will be an issue in the 108th session of Congress

  30. Policy Proposals • Evaluate current MTOPS measurement • Defense Department needs to assess HPC security threats • Keep Congress more informed of national security issues involving computer technology • Limit export controls to military technology, do not target consumer and business computer technology • Government needs to simplify administration of export controls and evaluate how other nations handle HPC exports

  31. Sources Center for Strategic & International Studies (CSIS), Export Controls Project, http://www.csis.org/export/execsum.htm Export Administration Act Reauthorization Update(n.d.). Retrieved October 17, 2002 from Shearman and Sterling Web site: http//www.shearman.com Export Administration Regulations (October 1, 2002). Retrieved on October 16, 2002 from Bureau of Export Administration, U.S. Department of Commerce Web site:http://w3.access.gpo.gov/bis/index.html Export Controls on High Performance, Web-site of the US Dept. of State, Bureau of Nonproliferation http://www.state.gov/t/np/rls/fs/2001/5484pf.htm Fact Sheet: Export Controls on High Performance Computers (October 5, 2001).  Retrieved on October 14,2002 from Bureau of Nonproliferation, U.S. Department of State Web site:http://www.state.gov/t/np/rls/fs/2001/5484 Fact Sheet: Export Controls on Computers, Office of the Press Secretary (July 1, 1999). Retrieved on October 14, 2002 from the White House Web site:http://www.whitehouse.gov/news/releases/2002/01/20020102-3.html. General Accounting Office (GAO), EXPORT CONTROLS: More Thorough Analysis Needed to Justify Changes in High Performance Computer Controls, Retrieved October 15, 2002 from: www.gao.gov Conference on Export Controls, October 3, 2002. Web-site of the US Dept. of State, http://www.state.gov/t/us/rm/14096pf.htm

  32. Sources (Continued) General Policy and Processing Guidance for High Performance Computer Licenses (n.d.). Retrieved on October 15, 2002 from Bureau of Export Administration, U.S. Department of Commerce Web site:http://www.bxa.doc.gov/ Gildea, K. (October 18, 2001). Study: Discard Export Controls on Computer Hardware. Retrieved on October14, 2001 from Washington Technology Web site:http://www.washingtontechnology.com/news/16_6/federal/16686-1.html High Performance Computers (HPC) Licensing Process (n.d.). Retrieved on October 15, 2002 from Bureau of Export Administration, U.S. Department of Commerce Website: http://www.bxa.doc.gov/ High Performance Computers (HPC) Licensing Process (n.d.). Retrieved on October 15, 2002 from Bureau of Export Administration, U.S. Department of Commerce Website: http://www.bxa.doc.gov/ High Performance Computer Export Controls, Web-site of the US Dept.of Commerce, Bureau of Industry and Security http://www.bxa.doc.gov/HPCs/Default.htm HPC Reporting Requirements (n.d.). Retrieved on October 15, 2002 from Bureau of Export Administration, U.S. Department of Commerce Web site:http://www.bxa.doc.gov/ H.R. 2581, 107 Cong., 2nd Sess. (2001). Retrieved on October 16, 2002 from Thomas Web site:http://thomas.loc.gov/Implementation of Presidential Announcement: Revision to License Exception CTP (January 10, 2001). Retrieved on October 17, 2002 from Bureau of Export Administration, U.S. Department of Commerce Website:http://www.bxa.doc.gov/

  33. Sources (Continued) John R. Bolton, Keynote address to the Fourth International License Exception CTP (n.d.). Retrieved on October 15,2002 from Bureau of Export Administration, U.S. Department of Commerce Web site: http//www.bxa.gov.comMarinaccio , W. (August 3, 1999). U.S. Eases Export Controls on Higher-performance PCs. Retrieved on October 14, 2002 from CNet News Web site:http://news.com.com/2100-1001-229401.html?legacy=cnet. OECD Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security (July 25, 2002). Retrieved on October 14, 2002 from OECD Web site:http://www.oecd.org/EN/home/0,,EN-home-43-1-no-no-no,00.html President Changes Export Controls on Computers, Statement by the Deputy Press Secretary (January 2,2002) Retrieved on October 14, 2002 from the White House Web site:http://www.whitehouse.gov/news/releases/2002/01/20020102-3.html .Press Release: Bush Administration Supports Bennett’s Move to Repeal Restrictions on Exports of High Performance Computers (October 11, 2002). Retrieved on October 14, 2002 from Website: http://www.senate.gov/~bennett/ Press Statement: OECD Calls for Culture of Security for Information Systems (August 7, 2002). Retrieved on October 14, 2002 from U.S. Department of State Website: http://www.state.gov/r/pa/prs/ps/2002/12518.htm Revisions to License Exception CTP (October 13, 2000).Retrieved October 17, 2002 from Bureau of Export Administration, U.S. Department of Commerce Website: http://www.bxa.doc.gov/

  34. Sources (Continued) Revision of High Performance Computer Licensing Policy (August 3, 1999). Retrieved October 17, 2002 from Bureau of Export Administration, U.S. Department of Commerce Web site: http://www.bxa.doc.gov/ S. 591, 107 Cong., 2nd Sess. (2001). Retrieved on October 16, 2002 from Thomas Web site: http://thomas.loc.gov/ S. 149, 107 Cong., 2nd  Sess. (2001). Retrieved on October 16, 2002 from Thomas Web site: http://thomas.loc.gov/ Security Safeguard Plans (SSPs) High Performance Computers (HPC) (n.d.). Retrieved on October 15, 2002from Bureau of Export Administration, U.S. Department of Commerce Web site: http://www.bxa.doc.gov/ Testimony of Dr. Stephen Bryen on U.S. Policy on High Performance Computer Exports to the House Armed Services Committee (October 28, 1999). Retrieved on October 15, 2002 from Committee on International Relations Web site:http://www.house.gov/hasc/testimony/106thcongress/99-10-28bryen.htm Vann H. Van Diepen, Strengthening Multilateral Nonproliferation Regimes, July 29,2002, Web site of the US Dept. of State Office of Chemical, Biological and Missile Nonproliferation http://www.state.gov/t/np/rls/rm/12396pf.htm White House press release, President Changes Export Controls on Computers, January 2,2002 Web-site of the White House, http://whitehouse.gov/news/releases/2002/01/20020102-3.html

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