How Will Obama's Export Control System Work?

President Barack Obama, as part of his plan to double US exports in five years, is signing an executive order to establish a center that will be responsible for enforcing and coordinating the defense products foreign trade policies.  The creation of the new export control system will help to eliminate many of the problems that are currently being experienced by the US manufacturers and technology sectors.

Currently, there are two control lists, each with its own criteria for defining controlled products.  Two different departments regulate and create the lists, while three different agencies provide licenses.  The licensing agencies each have their own processes, policies, and requirements for a lot of the same products.  This has created a lot of duplication and confusion because each agency has equal authority over export controls.  Furthermore, they all use different technology systems, so each one cannot see what the other is doing.  The US Government can't go in and see what has been approved or denied for export.

The current control lists are extremely confusing to manufacturers, aerospace and technology companies.  A lot of the products use vague descriptions and definitions.  Most products are defined by "use", meaning that the intent of use of the product would determine whether or not it required licensing.  This has caused even more problems and has wasted a lot of time and resources on trying to decipher the meaning of the product control list.  Companies have constantly complained that they can't tell which of their products are controlled and which ones are not.

Obama's plan will restructure the system so that there is one set of policies controlled by one export control center.  One type of computer technology will be used so that the government can monitor activity and licensing agencies can be on the same page.  Clear lines are to be drawn so that there is no question about which category of control a product will fall under.  This three-tiered system will help everyone to clearly determine what is controlled and on what level.

The three tiers will establish the criteria to rank products that are controlled.  The highest controlled tier will cover "weapons of mass destruction" and products that provide "critical military or intelligence advantage to the US and that are produced almost exclusively in the US".  The second tier will cover "products that provide a substantial military or intelligence advantage to the US and are available almost exclusively from our multilateral partners and allies".  The third and lowest tier covers "products that provide a significant military or intelligence advantage but are broadly available".

The new system will make it easier for the US and our allies to control and monitor the export of highly sensitive items, strengthening national security.  It will make the logistics of <a rel="nofollow" onclick="javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/3187065']);" href="http://www.shiplilly.com/"title="Ocean Shipping">ocean shipping</a> from the US to other countries more efficient.  The new system will also help to increase the competitiveness of the US manufacturing and technology industries, pushing us closer to economic recovery and the President's goal of doubling US exports in five years.