“For years the U.S. export control system has created confusion and delay in exporting defense equipment to our allies and driven up compliance costs across the industrial base,” said AIA President and CEO Marion C. Blakey. “These reforms are common sense ways of supporting our military partners and our export competitiveness.”
The rule proposes that after appropriate interagency review and consensus, technologies with low or no military or intelligence sensitivity will be moved off of the U.S. Munitions List to the Commerce Control List. Exports of these technologies to key military allies and partners—especially if previously approved—may be eligible for more flexible Commerce license exemptions. Further, end items, parts and components that are not “specially designed” for the military will now be subject to the same export control requirements as their commercial market equivalents.
“We support the national security focus of the administration’s export control reforms, and pushed for tighter controls on the Commerce Control List to accommodate low-risk military-use technologies that are reflected in the proposed rule,” Blakey said. “Properly identifying high-risk technologies that should remain on the U.S. Munitions List allows our government to focus its finite resources on controlling transactions that genuinely need the highest level of scrutiny.”
AIA looks forward to working with the administration and Congress to prioritize the review of the U.S. Munitions List to provide the greatest immediate relief to exporters. Additionally, the government can further enhance our national and economic security and foreign policy interests by adopting a program licensing regime that dramatically reduces the number of licenses required for U.S. government defense and security programs.