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Category: Meeting Notices - 2012

Emerging Technology and Research Advisory Committee (ETRAC))
“Minutes of Meeting”

 

Committee Title: ETRAC meeting
Date: October 11, 2012
Time: 8:30 am
Location: Herbert C. Hoover Building

Members Present: W. Provine, R. Breault, C. Canizares, M. Flagg, J. Hamilton, G. Kramer, J. Hillmon,F. Raccah, P. Abshire, G. Burdock (by telephone), S. Dahms (by telephone), Co-Chair T. Tierney (by video-conferencing), S. Hall (Federal Designated Officer)

Members of the Public- 24 individuals, one member of the Press.


Meeting Room: 6087B- Herbert C. Hoover Building/U.S. Dept. of Commerce, Washington, D.C.

Minutes:
Dr. Tierney, participating via video-conference from Los Alamos National Laboratory, welcomed those in attendance to the quarterly meeting of the ETRAC. He mentioned that the ETRAC, unlike other Technical Assistance Committees at the Dept. of Commerce, does not have a specific industry responsibility. It was noted that Dr. Flagg would not continue with the ETRAC in 2013 and Dr. Tierney mentioned that the ETRAC needs to have a Dept. of Defense representative.

Dr. Tierney was reelected by the membership to serve a co-chair of the ETRAC. Dr. Keel, the ETRAC committee co-chair has communicated to the Committee that he would no longer continue serving as committee co-chair. Dr. Flagg suggested to Dr. Tierney that he send to the membership information on the duties and responsibilities of the co-chair. Dr. Tierney agreed to do this. Dr. Flagg questioned on what are the expectations of the Committee by BIS and what are the deliverables. In response, Dr. Tierney discussed continuing the ‘impact” statement of export control that was started in the last fiscal year. Also he pointed out that BIS has a one page statement of what the ETRAC’s functions are. In addition, ETRAC members have provided information on technology impact on export control in the areas of cloud computing with recommendations if it needs regulation. Dr. Breault suggested publishing our recommendations.

Dr. Flagg asked if the composition of the ETRAC would include those with backgrounds in research or export controls. Dr. Claude Canizares would like BIS to provide a report card on ETRAC, especially in areas of improvement. Members discussed the future track of the Committee and Dr. Tierney suggested the development of a menu of what the ETRAC can do for BIS.

Dr. Tierney asked what data is being tracked by BIS, which is done by the Office of Technology Evaluation. For example

He also would like Mr. Kritzer, Director of the Office of Exporter Services, to mention those industries that are target for foreign interests and this will be brought up at the December meeting of the ETRAC.

Dr. Fabien Raccah of the Dept. of Energy stated that typically emerging technologies  are 3 to 10 years away, emergent technologies are 6 months to 3 years in development and emerged technologies are now to 6 months away in development.

Bernard Kritzer, Director of the Office of Exporter Services, Bureau of Industry and Security, was asked to speak on current developments in export control outreach and regulations. He provided the latest figures of deemed exports and mentioned that Universities are underrepresented in the total number of deemed license application. Mr. Kritzer stated that he sees the ETRAC as a unique vehicle to identify potential problems of technologies as they develop into areas that may have export control implications. He suggested that the ETRAC may wish to have cooperation in programs with the President’s Export Council Subcommittee on Export Administration.

Dr. M. Flagg suggested Mr. Steve Pellesser of the Dept. of Defense to speak at an upcoming ETRAC meeting.

Mr. John Varesi, Licensing Officer with the Office of National Security and Technology Transfer Controls, Bureau of Industry and Security, spoke to the committee on recent developments with the Wassenaar Arrangements with respect to emerging technologies. Mr. Varesi has just returned from a review session with the Wassenaar Arrangement members on new products and technologies that may be export controlled. Mr. Varesi discussed the process of getting technology and goods on the export control lists. The committee was very interested in the “use” provisions and its definitions. Mr. Varesi stated that the ‘use’ rule change had major implications and such changes are not easy to get soon.  Changes to ‘use’ for Categories 7, 9 and 4 are going into the CCL. An example is 9D4. Mr. Varesi continued with saying that the Wassenaar Arrangement does not look at emerging technology as a whole, but it is considered when a specific application of that technology is developed. For example, nanotechnology is not on the Wassenaar Arrangement’s list, but if this technology is used for the development of a specific product whose functions would be on the list, then yes this technology would be on the list. The importance of the recommendations from committees like the ETRAC of product and technology that warrants control is very important. Mr. Varesi stated that the majority of such recommendations that are discussed at Wassenaar are from government-sponsored technical advisory committees. Dr. Tierney would like to see some of these recommendations put to the Wassenaar Arrangement.

Dr. Canizares stated the importance deemed exports have to the discussion on what appears on the Wassenaar List. Dr. Tierney, addressing this subject, mentioned that the ETRAC can recommend changes to deemed exports but it needs to state that fundamental research activity should be exempt from regulations.

Debate among the ETRAC members centered on issues that included if the ETRAC should be technical or policy focused, a definition of ‘fundamental research’, and a review of the Commerce Commodity List, especially 1D and 1E categories for relevancy. For example, is category 1E001 still necessary to apply for in a deemed export environment? There was concern that no one on the ETRAC has technical legal experience.

The following were comments from the public:

Dr. S. Evans- University of California, Berkley on suggestions for the role of the ETRAC

Dr. Evans also mentioned that it typically takes two years for a proposed item to be controlled and included into the Wassenaar List.

Conclusion of comments from the public.

Mr. Timothy Wood, Export Control Officer of the Defense Advanced Research Projects Agency (DARPA) spoke of the emerging technology projects of the agency. DARPA also does developmental work with Australian, United Kingdom and Canadian organizations. Current projects involve space-related technology called the Phoenix Program, stealth and medical technologies. Dr. Abshire asked if there was a clear division line between what DARPA projects need a license and those that do not. She also asked if most of the non-government work on these projects are universities or other organizations. Mr. Wood responded that almost all the contractors are private companies.

Dr. Breault mentioned to Mr. Wood that other countries have major plans in developing the optic industry whereas the U.S. does not. DARPA needs to look at this industry.

Keven Wolf, Assistant Secretary for Export Administration, Bureau of Industry and Security spoke on issues relating to the Export Control Reform Initiative. The deemed export rule change is with the Strategic Trade Authorization and the 600 series and with government to government sales. Universities are not exempt from deemed export rule requirements. Mr. Wolf saw that the implementation of the Export Control Reform Initiative rather than policy formulation will be the priority in 2013. He stated that expectations from the ETRAC would include a clear mission statement and he will look to the ETRAC members to come up with a list of tasks he would review when the Committee meets in December.  He reiterated the importance of the Committee to think of why emerging technologies should or should not be controlled. For example, factors such as availability of the technology and can this technology be used to produce missiles, UAV’s or crime control equipment.  

Assistant Secretary Wolf encouraged the ETRAC members to provide a list of issues areas that the committee would want to address in 2013 and to present this to him at the next ETRAC meeting in Washington, Dec. 13, 2012 

Upon no further business, the Committee adjourned. The next meeting of the ETRAC is scheduled for December 12 (closed) and 13 (open).