JUSTER HOPEFUL OF PASSAGE OF NEW EXPORT ADMINISTRATION ACT
A senior U.S. Commerce Department official told shipping executives in Washington Thursday he remains optimistic that a new set of export regulations will soon move through Congress.
“We have been working very closely with the White House and the Congress to reach agreement on a bill before the end of the current session, and I am still holding out hope that this will occur,” said Kenneth I. Juster, undersecretary of Commerce at Update 2002 Export Controls and Policy Conference.
Changes in technology and expanding international trade have made it increasingly difficult for the Commerce Department’s Bureau of Industry and Security (formerly Bureau of Export Administration) to ensure that “sensitive” items do not end up in the hands of rogue nations or terrorist groups.
“Vast amounts of technology — including sensitive information for the design or development of weapons of mass destruction — can be transferred virtually anywhere in the world by the click of a button,” Juster said. “And the sheer volume of global trade is growing exponentially as more and more countries come to the realization that free trade and open markets are the surest path to economic prosperity.”
“Unfortunately, our export control legislation has not changed at the same pace,” he added. “The bureau has the difficult mission of administering and enforcing export controls in a way that protects U.S. national security but does not impede legitimate exports or unreasonably interfere with U.S. commercial interests.”
The current Export Administration Act was implemented in 1979, and its principles largely applied to the Cold War.
Senate bill 149, if passed, would update the Bureau of Industry and Security’s dual-use export control system and controls.
“It would help exporters by providing transparency, predictability, and time limits in the export licensing process,” Juster said. “It sets forth procedures for U.S. companies to seek to decontrol mass market items and items that are readily available from foreign sources. It thus enhances the ability of U.S. companies to complete for ‘legitimate’ international sales on a fair and equal footing with their foreign competitors.”
In addition, the new regulations would enhance the bureau’s ability to impede the spread of weapons of mass destruction and related materials, increase penalties for violations, and give the president authority to override any administrative decisions to decontrol certain exports for national security purposes.
“In short, the pending legislation provides the right framework for an effective export control system that is in line with today’s global realities,” Juster said. “It also provides the flexibility to adjust that system to meet tomorrow’s challenges.”