Quality Magazine

NAM: Commerce Export Control Reforms Will Help Manufacturers

October 3, 2008

WASHINGTON, D.C.-The National Association of Manufacturers (NAM) commends the Department of Commerce for announcing a set of regulations that will modernize export controls, implement the Presidential Directive issued in January, and improve national security and economic competitiveness. The Bureau of Security and Competitiveness announced the long-awaited set of regulations to reform the export of “dual-use” manufactured goods and technologies would be published in coming days. The announcement was made at BIS’s annual Update Conference.

“Manufacturers are anxiously awaiting the publication of the new initiatives announced yesterday, which include the much sought-after intra-company transfer (ICT) license exception,” said John Engler, President and CEO of the NAM. “The ICT is critical for the development of new cutting-edge technologies and will increase the ability of U.S. manufacturers to compete in the global marketplace. The NAM began working with BIS in 2007 to create the new license exception.”

The NAM has worked closely with the Commerce Department over the last two years to create new policies that advance national security while enhancing U.S. technological leadership and global industrial competitiveness. The announced reforms are largely the result of proposals that the NAM and its partners in the Coalition for Security and Competitiveness submitted to the Commerce Department and White House in March of 2007. The NAM’s efforts have created a collaborative environment between our members and government that is important for export controls modernization.

The new regulations and proposed rules are expected to be published in the Federal Register. Until published, the NAM will not be able to assess the details and full impact of the ICT and other initiatives but we remain optimistic that BIS’s new approach and move away from transaction-based licensing can improve both national security and economic competitiveness.

In addition to the ICT, BIS announced new regulations and policies on encryption, the de minimis rule, the Commerce Control List and foreign availability. Export control modernization is an important priority for the NAM and is needed to keep pace with important changes in the global security and economic environment.