Where Industry and Security Intersect
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OPEN SESSION
Keith Melchers, Chair – Welcome and Introductions
Chris Wall – BIS Update
The last RPTAC meeting was about the future – this one, what we’ve done
Export Control Directive fulfilled: all National Security Presidential Directive regulatory initiatives done
Export controls have moved further in the direction of end-user/end-use controls, away from country policy/technology nexus rooted in Cold War
Attempt to recognize realities of the global marketplace
BIS published proposed rule on a license exception for Intra-Company Transfers – public comments supported the idea, but critiqued the burden and other implementation issues; publication of a final rule by January 20 will not be possible
Validated End-User program is in place; discussions with Chinese and Indian governments are ongoing, although progress is not always visible
Entity List expansion fills a gap between the Unverified List and the Denied Persons List; there have been lots of additions, but also a procedure for removal from the list
Controlling transfers is extraterritorial but necessary in an end-use/end-user based system – there have been no complaints from foreign governments
Will try to implement Wassenaar Arrangement rules more quickly
Plan to conduct Commerce Control List reviews on a three-year rolling cycle
Encryption: the pervasiveness of the technology requires more effective regulation but there is no agreed-upon approach to change
Deemed Exports: a long-term issue with impact on national security, effects on seed-bed of future technology; a zero-based review of technologies is to be undertaken by the Emerging Technologies and Research Advisory Committee (ETRAC); they are also looking at migration of military technologies to commercial applications and vice versa
The rule reflecting section 17(c) of the Export Administration Act is published
BIS is working on night vision issues
The De Minimis rule is published
The recission of North Korea’s terrorist status should not have much impact on license requirements (due to UN Security Council resolutions)
Iran has been the focus of transshipment initiatives and an interagency effort to address “loopholes;” hope to publish a rule soon
Notices of Inquiry: notice on exclusion of missile technology controlled Category 7 items from de minimis has been published; BIS is seeking comment on “designing out” U.S. content – have anecdotes but need specific and quantifiable information
(In response to a question about crime control items) Comments on the crime control notice of inquiry will generate two rules, the first with more technical changes and the second more substantive changes such as addressing biometric systems, country policies; the second rule will likely be proposed
Kevin Delli-Colli – Export Enforcement
(In response to a question about what to look for regarding aircraft transfers to Iran) Do your due diligence; 747s are desired by Iran for cargo aircraft; check how long the companies have been in existence; once the aircraft is gone, can’t get it back
(In response to a question about fines) Few cases have been settled under the new fine levels
Performing Voluntary Self-Disclosure (VSD) triage
Encourage VSDs, but even with honesty there are consequences – convinces companies to invest in compliance
Dan Hoydysh – Public Comment /Computer Controls
Represents Computer Coalition for Responsible Exports
Restrictions necessary to protect security, but controls on readily available items undermine industry without protecting us
Technological advances are again making controls obsolete
The metric 0.1 Weighted Teraflops (WT) is too low – may be obsolete even as it is published
Top 500 supercomputers list: China has two computers in the top 10
Wassenaar Arrangement Sensitive and Very Sensitive Lists have no computer hardware – need to reexamine how tightly to control
Bill Root – ETRAC Report
Not a lot of public attendance
Openness to information from other Technical Advisory Committees regarding zero-based review of technologies
Fundamental research vs. that which can be applied to military use
Examination of six areas of technology, including nanotechnology
Bill Bostic & Dale Kelly – Census/Automated Export System (AES)
New Foreign Trade Regulations implemented October 1, 2008 – Census doing lots of outreach all over the country
Since the regulations were published in June, the number of paper declarations has dropped steadily month by month
Customs hasn’t imposed penalties, as they are waiting for mitigation guidelines; 30 days after mitigation guidelines published, penalties will be imposed
Seminars scheduled, webinars planned, training videos for posting on sites where people sell goods for export
Joe Cortez new branch chief
Jerry Greenwell, Trade Ombudsman, retiring January 2009
Port visits once a quarter, mainly along southern border
Referrals to BIS for enforcement only after consultation with exporter – emphasis on informed compliance and high-quality statistics – filer must ignore efforts to be referred
Hillary Hess – Published Regulations
Notice of Inquiry on exclusion of missile technology controlled Category 7 items: comments due January 20, 2009
(Question on status of Venezuela) no changes currently in draft
WORK GROUPS
Ed Bond – Encryption
Rule published October 3
Paper at last Information Systems Technical Advisory Committee (ISTAC) meeting
Ben Flowe & Kathleen Palma – Compliance and Enforcement
Working on mitigation guidelines
Waiver requests for items subject to VSDs -- paper
Julie LaCross – Policies and Procedures
Nothing to report
Keith Melchers – Multilateral Controls
Nothing to report
Keith Melchers
Set meetings for 2009: 3/10; 6/9; 9/1; and 12/9 (Wednesday)