Recommendations for Modernizing Export Controls on Dual-Use Items
The United States currently faces unprecedented threats to its security both at home and abroad. In confronting these threats, we must be able to exploit the full advantage we derive from our economic strength and technological prowess. To that end, the U.S. export control system must be modernized so that it is better able to respond quickly and effectively to evolving security threats, and promote our nation's continued economic and technological leadership. The Coalition for Security and Competitiveness, representing multiple industry and trade associations, is committed to working with the Executive Branch and Congress in a cooperative spirit to accomplish these important goals.
To modernize the system and make it more efficient, predictable and transparent, the Coalition has developed the following eight recommendations on export controls for dual-use items:
- Create a license exception for the transfer of controlled items within companies
- Certify foreign end-users with strong compliance programs for favorable treatment
- Enhance procedural transparency in the licensing process to help companies comply
- Enhance the Commerce Department's role in the "commodity jurisdiction" process for determining whether or not dual-use products should be treated as defense products and subject to State Department licensing
- Streamline the current complex controls on products with encryption features
- Ensure timely updates of the Commerce Control List (CCL) to reflect market availability
- Expand factors used to determine "foreign availability" of controlled items
- Revise the "re-export" controls to level the playing field for U.S. companies vis-à-vis foreign competitors.
A more detailed description of the Coalition's concerns and proposals for action is provided in the attached recommendations. Additional recommendations for modernizing export controls on Munitions List items, as well as other information on the Coalition, can be found on www.securityandcompetitiveness.org.