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Export Control Reform under the Obama Administration

Export Control Reform under the Obama Administration. Pam Rooney ITRN 603 Spring 2013. The Problem: . Highly critical defense articles, identified on the US Munitions List (USML), require extensive and expensive export licensing Many insensitive items are included on the USML

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Export Control Reform under the Obama Administration

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  1. Export Control Reform under the Obama Administration Pam Rooney ITRN 603 Spring 2013

  2. The Problem: Highly critical defense articles, identified on the US Munitions List (USML), require extensive and expensive export licensing Many insensitive items are included on the USML US Firms are less competitive due to onerous export processes and the extraterritoriality imposed on USML exports Currently no way to track and identify bone fide US Controlled Export items post-export

  3. The Policy:Export Control Reform Initiative • Aims to strengthen National Security and US Defense Industrial Base competiveness by: • Reducing redundancy and complexity in export control • Reducing control of non-critical items “Build higher fences around fewer items” • By implementing: • Common definitions, regulations, and policies • Migration of non-critical items (e.g., parts, fasteners) from USML to CCL • Single control list, licensing agency, IT system, control center • Initial actions: • 15 October 2013 – first migration from USML takes effect (Aircraft, Engines) • 25 October 2013 – Presidential Determination that will move satellites from USML as part of NDAA 2013

  4. The Policy Proposal • The US DoD requires critical defense articles that it buys to be uniquely identified and registered • The Unique Identification is encoded in a 2-dimensional bar code permanently affixed to the item • As part of Export Control Reform, this concept could be extended to USML exported items to provide: • Unique identification of critical items being exported • Inclusion of an ITAR flag in the encoding • Tracking mechanism for Export enforcement to ensure that items are individually validated against the license authority • Indication of US International Traffic in Arms (ITAR) item during re-export • Anti-counterfeiting measure • Alerts to US DoD of potential use of previously exported item • Does not burden US Defense Industry because already marking US-owned critical items

  5. Extraterritoriality Implications Limiting USML to truly critical items allows opportunity for improved control without additional customer burdens Potentially enables increased flexibility of re-exports since specific items can be tracked at customs and border crossings Provides a tool for recipient governments to track and report location of ITAR items to the US

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