WPC c](L{6U4}t|̄a(DgTS;vU Hڲl5TT̤A q騃Y_^szfK)cf5Uz̝J̃r) Z\˼X_[MR7_ia-ޥ3ƾ^ Pme(R]DI~D6<ID[w6 Bc ߕ6(ke !#*w/*#?O4o(mYZ8gX 1\Ҡ$L)mǽ/LUGb^u>8PAuwr-?I,{A3Rj~}g^gv)7"\KC#(U:N) %* 0 (*w ?*4I*]*UNl**t*6+N+ 00+^ .,:, m<,S,- 0N-UN-.{.A/0 0c0 1 u0 720 0w&1 01 0'2 02 A{3 0D&4 0j4 Bz15 D-N5 0K{5N5 05 06 0%D7 0 L8"9 1*9 7299 0l: 0D*;n; 0U; 0;M< 0< 0= 0> 0n? 0K@ 0%A 0A 0CB 0C 0C 0D 0E 0]F 0(G 0G 0H 0@uI 0I 0J 0ZK 0(L 0L 0M 0N 0BO 0<O 0;P 0>P 0v7Q 0`Q 0` R 0`mR 0`R 0`-S 08S 0S 02T 0T 0:U 0 YU 0_XV 0 V 0jW 0+Y B(*Z D/Z 0[ D/\ 0\ 06] 0] 0:^ 0^_ 0<__U6_U>_U*`@d9``` 0 Da.a 0 DbN^b 0n`b(bMbMbMbMcMcM c Cc 0D(c 72lc 72ccdo e Co Ao D3Fp 0yp 72Qq 72q 1q 72+~U:i~f~~~@d&UBaEY3U< 0  0 0" 05 0H 0[ 0n 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0< 0 0: 00 0( 0 1U 7  0&C 0(_ AQ 72أ 72 72< 1n 72M'(+NS 72U 72 72$bo~LNߪ i iN B i D3; iXn i8ƬNfa 0DUN81LNfafaf1a3fGaI"]faN Cfafǯaɯfݯa߯faf a fa!?@5uu?LONb!6NK CMg A%k-faU<7UN!ooU[:^fabMNfaйĺCUN̼N0f2a4UHHUUUNU>6tBBU@f(ENmoMML 0lNMfOaQUNe=9>)<g<::SU2  #  C  c  (fU:aNfaU%43U<gNN 0 BJ Bg 72 0 0U 0 72 72 72 0U) 0~ 03 7 P 72\LU0U* UN4U<UJXbUFUN<<<U<UNeeeeeU<UN>>>U<))))))))UNeeU<NNNNNNNNNNNNNNNUNU<ssssssssUNUHUN0000~~~~UH{{{{{{{{UNUHUNFFFFUHUNUHUNPPPPUHUN.UH!!UNiUHUNEUHAAUNUHUN nUH^^UNUHUN4UHUNUHUNBUHUNUH UNQUHUN#UHUNVUHUN3UHUNbUHUN1U,UN@fxazzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzbHP LaserJet 4,,,,,,0(hH  Z 6Times New Roman RegularX($[u+tt3|x(hH  Z 6Times New Roman Regularhttp://www.doc-bxa.bmpcoe.org/Shipbuilding_and_Repair.pdfLevel 1Level 2Level 3Level 4Level 50.Normal¤6,s /ULevel 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5(O$(hH  Z6Times New Roman RegularLevel 1Level 2Level 3Level 4Level 5Level 1Level 2Level 3Level 4Level 5   (;3$2#  0  .3  0  3#37=CIQYag1.a.i.(1)(a)(i)1)a)i)(O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(# $#&OLE 2.0 Box <=8C HKKKK(3$ !  (F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(# d)!dxdx( $ Figure  1  ($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# >c$"Small Circle"0  !&'x=Gaeimquy}Bullet ListBullets List+( p'  _򀀀Chapter1ExporterServices  ((3$ !      0  (#$  0     *+ (_2623  ..*G+M (_25   /%` ` hp x /23  ..  5+ ` hp x 5  *D+M (_24   ," hp x ,23  ..  5+ ` hp x 5  *A+M (_23  ` ) hp x )23  ..  5+ ` hp x 5  *>+M (_22   &hhp x &23  ..  5+ ` hp x 5  *;+M (_21   #p x #23  ..  5+ ` hp x 5  *8+M (_20  h  p x 23  ..  5+ ` hp x 5  *5+M (_19   pp x 23  ..  5+ ` hp x 5  *2+M (_18    x 23  ..  5+ ` hp x 5  * (_1723  Ԁ*GM (_16   /%` ` hp x /23  Ԁ  5+ ` hp x 5  *DM (_15   ," hp x ,23  Ԁ  5+ ` hp x 5  *AM (_14  ` ) hp x )23  Ԁ  5+ ` hp x 5  *>M (_13   &hhp x &23  Ԁ  5+ ` hp x 5  *;M (_12   #p x #23  Ԁ  5+ ` hp x 5  *8M (_11  h  p x 23  Ԁ  5+ ` hp x 5  *5M (_10   pp x 23  Ԁ  5+ ` hp x 5  (2M &_9    x 23  Ԁ  5+ ` hp x 5  ( &_823  (GM &_7   /%` ` hp x /23   5+ ` hp x 5  (DM &_6   ," hp x ,23   5+ ` hp x 5  (AM &_5  ` ) hp x )23   5+ ` hp x 5  (>M &_4   &hhp x &23   5+ ` hp x 5  (;M &_3   #p x #23   5+ ` hp x 5  (8M &_2  h  p x 23   5+ ` hp x 5  (5M &_1   pp x 23   5+ ` hp x 5  &2M $_    x 23   5+ ` hp x 5  <:Definition T<AA:Definition L , 5+ ` hp x 5  5+ ` hp x 586Definition(''&H1      (&H2  (&H3  (&H4 XXX (&H5  (&H6  20Address8MM6Blockquote , , 5+ ` hp x 5   5+ ` hp x 5,*CITE,dl*CODEKj<6X9`(Courier NewKSk\  `&Times New RomanS42Emphasis64Hyperlink    <:FollowedHype    4go2Keyboard Kj<6X9`(Courier NewKSk\  `&Times New RomanS <:Preformatted/%  ,Kk %#/Kj<6X9`(Courier NewKSk\  `&Times New RomanS/%  ,Kk %#/<:zBottom of 7a(X7  ?l%2A`Arial?  Sk\  `&Times New RomanS7#(X7&  d d`)1dxd<:zTop of For7c(X7  ?l%2A`Arial?  Sk\  `&Times New RomanS7#(X7`)2dxd0KS.SampleKj<6X9`(Courier NewKSk\  `&Times New RomanS0.Strong 8dl6TypewriterKj<6X9`(Courier NewKSk\  `&Times New RomanS42Variable: 8HTML MarkupB      2 0CommentB  <6X9`(Courier New\  `&Times New Roman%2A`ArialD:\WEBFOL~1\WEBSIT~2\BXAWEB~1\gif\DONALD~1.GIF    r)  _______________________________________________________________________________  mXXExportAdministrationAnnualReportforFiscalYear2001(3$ !  http://www.bxa.doc.gov(3$ !  <:Default ParaXXXXXX d(3$ !  i)( p'  _򀀀ExecutiveSummary    r)  _______________________________________________________________________________  mXXExportAdministrationAnnualReportforFiscalYear2001#X8Xm#WPCGGrrrGG o r}?8    ?        ?    ?  ?  ??  ? ?    ~?? |?|???? ? ??  ? ? ?? ? !?c?c??Ǐ?p8 p?@?A????~??????  ?? 8? >  >   ?? ?pC?d $# I&mage <=8C HKKKK""""'dxd0J^.Style0  ?l%2A`Arial?Sk\  `&Times New RomanS  i)+(!&'hCEIMQUY]aAutoList1i)1)a)(!&'hCEIMQUY]aAutoList2i)1)a)(!&'hCEIMQUY]aAutoList3i)1)a)(!&'h̄CEIMQUY]aAutoList4i)1)a)(!&'h܄CEIMQUY]aAutoList5i)1)a)(C:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT($  Z(Times New Roman  y .$    1    _ԀX!KXXXInaccordancewiththeDepartmentspastpractice,thisreporthasbeenpreparedandis  beingsubmittedtoCongresspursuanttotheannualreportingrequirementsetforthinSection14  oftheExportAdministrationActof1979(EAA).Itshouldbenoted,however,thatthisannual  reportingrequirementhas,togetherwiththerestoftheEAA,expired,andthePresidenthas  continuedtheU.S.dualuseexportcontrolregimeundertheauthorityoftheInternational  EmergencyEconomicPowersAct.#X8XXX!KT#ԀItshouldbefurthernotedthatsomeoftheactivities o  describedinthereportarebasedonstatutesotherthantheEAA.  e   5    \  `$Times NewRomani)+(i)i)+(m@^D:\WEBFOL~1\WEBSIT~2\BXAWEB~1\gif\DONALD~1.GIFD:\Web Folders\Web Sites\BXA Web Site\gif\DonaldEvans.gifG:mG:mG7{B>D{cGE e FPGPGT64Heading 1XXXS\  `&Times New RomanS       O* `"Comic Sans MSO    6$$4Body Text  XXX  \  `&Times New Roman* `"Comic Sans MS e  }*  _______________________________________________________________________________  mXX(#ExportAdministrationAnnualReportforFiscalYear2001D:\WEBFOL~1\WEBSIT~2\BXAWEB~1\gif\KENJUS~1.GIF (  _򀀀ExecutiveSummary  \  `*Times New RomanTTTable_A p'  _򀀀Chapter1ExporterServices    .$    2    _ԀCountryGroupE:1wasrevisedbyidentifyingthosecountriesdesignatedbythe  DepartmentofStateascountrieswhosegovernmentshaverepeatedlyprovidedsupportforacts  ofinternationalterrorism;i.e.,Cuba,Iran,Iraq,Libya,NorthKorea,Sudan,andSyria.\  `$Times NewRoman4[+[ 2_level11   , 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level2   X 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level3    8.4` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level4    8.` ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level5    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level6    8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level7   4 8. ` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level8   ` 8.` hp x (#823  ..   8.` hp x (#8  2[+[ 0_level9    8.<` hp x (#823  ..   8.` hp x (#8  2[[ 0_levsl1   , 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl2   X 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl3    8.4` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl4    8.` ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl5    8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl6    8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl7   4 8. ` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl8   ` 8.` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levsl9    8.<` hp x (#823  Ԁ   8.` hp x (#8  2[[ 0_levnl1   , 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl2   X 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl3    8.4` hp x (#823     8.` hp x (#8  2[[ 0_levnl4    8.` ` hp x (#823     8.` hp x (#8  2[[ 0_levnl5    8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl6    8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl7   4 8. ` hp x (#823     8.` hp x (#8  2[[ 0_levnl8   ` 8.` hp x (#823     8.` hp x (#8  2[[ 0_levnl9    8.<` hp x (#823     8.` hp x (#8  <:Footnote Ref2PP 0Level 1   8.` ` hp x (#8  8.` hp x (#8  :8Page Number0 .Header0G .Footer (#G=X` hp x (#G2S} 0_level1  ; ;14 <DL!(#;  e[X` hp x (#e  (359=AEIMQ1  (2C$ !  ($ C<< c(((!&'h/CEIMQUY]aAutoList6i)1)a)(i)((  }*  _______________________________________________________________________________  mXX  ExportAdministrationAnnualReportforFiscalYear2001#X8Xm#A WPCGGEEEGG %E}???       #  O   ? ?? ?>? |x0>8???> > ? `~  > ?    ? C:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT .$    3    _ԀThisincludescasesreceivedbeforeFY2001,butcompletedduringthefiscalyear.""">630   d"````'dxd "`@8C0"( c \TABLE A .$    4    _ԀTheinteragencygroupincludesrepresentativesfromtheDepartmentsofCommerce,  State,EnergyandDefense.(3$ !  (hH  Z6Times New Roman Regular '  XXC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPTTABLE ATABLE BTABLE CTABLE D   e TABLE EFd؝TABLE FTABLE A@TABLE BTABLE CTABLE DTABLE E@^D:\WEBFOL~1\WEBSIT~2\BXAWEB~1\gif\KENJUS~1.GIFD:\Web Folders\Web Sites\BXA Web Site\gif\KenJuster.gifGSGGG>DdG+  F   p'  _򀀀Chapter2StrategicTradeandForeignPolicyControls   p'  _򀀀Chapter3NonproliferationControlsandTreatyCompliance  C:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT p'  _򀀀Chapter4StrategicIndustriesandEconomicSecurity  D       ddLevel 1Level 2Level 3Level 4Level 5" ]Inline Te&xt" <<CTABLE A,H $AZ$Tahoma Regular - r)  _______________________________________________________________________________  mXXExportAdministrationAnnualReportforFiscalYear2001#X8Xm#)X8XXX8(hH  Z6Times New Roman Regular  r)  _______________________________________________________________________________ e mXXExportAdministrationAnnualReportforFiscalYear2001#X8Xm# p'  _򀀀Chapter5ExportEnforcement e $Q)AZ"Arial Narrow TABLE BB TABLE A p'  _򀀀Chapter6_Antiboycott_ԀCompliance e  p'  _򀀀Chapter7NonproliferationandExportControlCooperation e  9 r)  _______________________________________________________________________________ e mXXExportAdministrationAnnualReportforFiscalYear2001<mm  #<X8X<m#(hH  Z6Times New Roman Regular  `TABLE A$Q)AZ0Arial Narrow Regular (  _򀀀Chapter7NonproliferationandExportControlCooperation e   r)  _e______________________________________________________________________________ e mXXExportAdministrationAnnualReportforFiscalYear2001Emm  #EX8XEm##X8XXEX8#FX8XXX8(hH  Z6Times New Roman Regular\  `&Times New Roman p'  _򀀀Chapter8CriticalInfrastructureAssuranceOffice e   .$    5    _ԀTheseinfrastructuresrelateto:informationandcommunications;electricpower e generation,transmission,anddistribution;oilandgasstorageanddistribution;bankingand K finance;transportation;watersupply;andemergencyassistance.mXX (  _򀀀Chapter8CriticalInfrastructureAssuranceOffice e  r)  _1mXXԀM&O mThenumbershowninbracketsisthenumberofviolationsalleged.Unlessotherwisespecified,listedsectionsrefertotheEAR.($  Z(Times New Roman  \ r)  _______________________________________________________________________________ X mXXExportAdministrationAnnualReportforFiscalYear2001Zmm  #mZm##X8Xm#http://www.docC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT<:Normal (Web)        TABLE A(hH  Z6Times New Roman Regular 3 C"  _Exporter / C"  _Bank 4 C"  _Forwarder 2 C"  _Carrier 2 C"  _Insurer 0 C"  _Other 0 C"  _Total C"  _pXwP)XXXExporter#X8X)XpXwP+#X8XXX822A`Gill Sans_Hlt531330765_Hlt531330732_Hlt531330751_Hlt531330142,  AZ"Arial RegularTable_ATable_A2 `CG TimesWN,H $AZ$Tahoma Regularl!:Body Text,aaBody Text,aaaa-Body Text          + +dX Xdi)0c .Style1  XXX?%2A`Arial?  0c .Style3  XXX?%2A`Arial?  0c .Style2  XXX?%2A`Arial?  +(((*+ (_2723  ..<+ :Outline001_123  ..<z :Outline002_1EV{rA`WP MathAE23  Sk\  `&Times New RomanSEV{rA`WP MathAE..Sk\  `&Times New RomanSC(C:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPTV{rA`WP MathA%2A`Arial(hH  Z6Times New Roman Regular C"  _XwP)XXXBank#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular3 Ha`$2Line Printer 16.67cpiC $j aZ.LinePrinter Regular(hH  Z6Times New Roman Regular C"  _XwP)XXXForwarder#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular(hH  Z6Times New Roman Regular C"  _XwP)XXXCarrier#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular(hH  Z6Times New Roman Regular C"  _XwP)XXXInsurer#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular(hH  Z6Times New Roman Regular C"  _XwP)XXXOther#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular(hH  Z6Times New Roman Regular C"  _XwP)XXXTotal#X8X)XXwP+#X8XXX8,H $AZ$Tahoma Regular(hH  Z6Times New Roman Regular C"  _ Xt,XXX&H'%,XXt Carrier #&y%'%&H.#&c&%%&y#X8X&%&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ Xt,XXX&H'%,XXt Manufacturer/Vendor/Buyer #&y%'%&H.#&c&%%&y#X8X&%&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ Xt,XXX&H'%,XXt Insurance #&y%'%&H.#&c&%%&y#X8X&%&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ Xt,XXX&H'%,XXt Finance #&y%'%&H.#&c&%%&y#X8X&%&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ &Xt,XXX&&H'%,X&Xt OriginofGoods #&y%'%&&H.#.&c&%%&y#.X8X&%.&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ 6Xt,XXX6&H'%,X6Xt MarkedGoods/Packaging #&y%'%6&H.#>&c&%%&y#>X8X&%>&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ @Xt,XXX@&H'%,X@Xt WarReparations #&y%'%@&H.#B&c&%%&y#BX8X&%B&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ DXt,XXXD&H'%,XDXt ObserveBoycottLaws #&y%'%D&H.#F&c&%%&y#FX8X&%F&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ HXt,XXXH&H'%,XHXt Race/Religion/Sex/Origin #&y%'%H&H.#J&c&%%&y#JX8X&%J&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ LXt,XXXL&H'%,XLXt Relationsw/BoycottedCountry #&y%'%L&H.#N&c&%%&y#NX8X&%N&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ PXt,XXXP&H'%,XPXt RiskofLoss #&y%'%P&H.#R&c&%%&y#RX8X&%R&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ TXt,XXXT&H'%,XTXt DestinationofGoods #&y%'%T&H.#V&c&%%&y#VX8X&%V&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ XXt,XXXX&H'%,XXXt OtherRestrictivePractices #&y%'%X&H.#Z&c&%%&y#ZX8X&%Z&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ \Xt,XXX\&H'%,X\XtTotal #&y%'%\&H.#^&c&%%&y#^X8X&%^&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ `Xt,XXX`&H'%,X`XtBidorTenderProposal #&y%'%`&H.#b&c&%%&y#bX8X&%b&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ dXt,XXXd&H'%,XdXtCarrierBlacklist #&y%'%d&H.#f&c&%%&y#fX8X&%f&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ hXt,XXXh&H'%,XhXtLetterofCredit #&y%'%h&H.#j&c&%%&y#jX8X&%j&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ lXt,XXXl&H'%,XlXtQuestionnaire #&y%'%l&H.#n&c&%%&y#nX8X&%n&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ pXt,XXXp&H'%,XpXtRequisition/PurchaseOrder #&y%'%p&H.#r&c&%%&y#rX8X&%r&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ tXt,XXXt&H'%,XtXtUnwritten #&y%'%t&H.#v&c&%%&y#vX8X&%v&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _ xXt,XXXx&H'%,XxXtOtherWritten #&y%'%x&H.#z&c&%%&y#zX8X&%z&cM#$Q)AZ0Arial Narrow Regular(hH  Z6Times New Roman Regular C"  _|Xu4XXX |&B7%4X|XuTotal #&y%7%|&B+#~&c&%%&y#~X8X&%~&cM#,  AZArial (hH  Z6Times New Roman Regular  .$    6    _ThesefiguresdonotincludeexportstoHongKongorMacausincethesetwo  destinationsaretreatedaseparatedestinationsforexportcontrolpurposesundertheEAR.  .$    7    _ԀForthepurposeofthissection, controlledcountriesare:Albania;Armenia;  Azerbaijan;Belarus;Bulgaria;China(PRC);Cuba;Estonia;Georgia;Kazakhstan;Kyrgystan;  Latvia;Lithuania;Moldova;Mongolia;NorthKorea;Romania;Russia;Tajikistan;Tibet; | Turkmenistan;Ukraine;Uzbekistan;andVietnam.TABLE GE !  _88Xdd8-onOaX!KXXX  5yXX!K  = StatementoftheSecretaryandtheUnderSecretary #X!KX5y# E   #X8XXX!K#ItisourgreatprivilegetopresentthisreportontheactivitiesoftheBureauofExport  , Administration(BXA)inFiscalYear2001.   FY2001witnessedBXAfulfillingthewiderangeofresponsibilitiesdelegatedtoitasthe   DepartmentofCommerceagencychargedwithaddressingissueswhereindustryandnational t  securityintersect.FromleadingtheFederalGovernmentsoutreachtotheprivatesectorto Z  protect criticalinfrastructures,toworkingwithinternationalpartnerstostrengthenexport @  controlsonsensitivenuclear,chemical,andbiologicalitemsandtechnologies,BXAperformed &v  anarrayoffunctionsthathasgrownsubstantiallyoverthepastdecadeasCongressandthe  \ Departmenthaverecognizedthecloseinterrelationshipbetweeneconomicandnationalsecurity. B Indeed,thename BureauofExportAdministrationisananachronism;althoughadministering ( exportcontrolsondualuseitemsremainsacoreBXAresponsibility,itisonlyoneofmany  importantfunctionsthattheagencyperformstoday.  TheparamountimportanceofBXAsbroadresponsibilitieswasunderscoredbycurrentevents p ofFY2001,includingtheterroristattacksofSeptember11,2001,thetransmissionofanthrax V ladenlettersbybioterrorists,andrecurrentcyberattacksontheNationsinformationsystems. < Theseeventsalsomadeclearthat,intodaysworld,protectingournationalsecuritymust "r encompasstheprotectionofoureconomyandcriticalinfrastructures!assets,technologies,and X networksthatareprimarilydeveloped,owned,andoperatedbytheprivatesector.Government > andindustrymustcooperatetoaccomplishthistaskeffectively. $ CooperationbetweenthepublicandprivatesectorswasthehallmarkofmanyBXAactivities  overthepastyear,includingadministeringtheDefensePrioritiesandAllocationsSystem,   assistingU.S.entitiestoprepareforandhostfacilitiesinspectionvisitsbytheOrganizationfor l! theProhibitionofChemicalWeapons,initiatingnationaloutreachtobuildabusinesscasefor R"  protectingprivatelyownedinformationsystemsthatsupportourcriticalinfrastructures,and 8#! pursuingdefensetradeadvocacyefforts. $n" BXAalsoreneweditscommitmenttopublicprivatecooperationinitstraditionalmissionof %:!$ controllingdualuseexportsinsupportofournationalsecurity,foreignpolicy,andothergoals. & "% DuringFY2001,BXAworkedcloselywithindustrytodevelopexportcontrollawsand '#& compliancesystemsthataremoreeffectiveandlessburdensomeonexportersandimproveand (#' expeditetheexportlicensingprocess.BXAalsocontinuedtovigorouslyenforcetheexport )$( controllaws,asevidencedbyseveralsignificantcasesconcludedin2001. h*%) Unfortunately,wearenotabletoreport,aswehadhoped,thatanewstatuteauthorizingdualuse 4,'+ exportcontrolshasbeenenacted.TheExportAdministrationActof1979expiredinAugust -j(,= 2001,forcingthePresident,likehisthreepredecessors,toinvokeemergencypowerstopreserve  theexistingdualuseexportcontrolregime.Theabsenceofastatutoryframeworkthatreflects  currentglobalpoliticalandeconomicrealitiesseriouslyunderminesoureffortstoadministera |  < modernexportcontrolsystemcapableofcounteringmodernthreatssuchasterrorismandthe b proliferationofweaponsofmassdestruction.WeagainurgetheCongresstoenact legislation H substantiallyintheformofS.149,theExportAdministrationActof2001. . ~ X8XXX8wmC3/b~0BE Z , `@EE Z ,Z , wwC3/b~0E  `@EE   X @w   `     h     DonaldL.Evans0 0 (# (#0h(#(#0h(#h(#0(#(#KennethI.Juster (#(# SecretaryofCommerce0  0h(#(#0h(#h(#0(#(#UnderSecretaryofCommercex (#(#    `     h     forExportAdministration#X8XXX8}#  ^ < nOa n n  - !&'((x3o   XX8  88XXdXd80@ExecutiveSummary #X8X #  ThisreportsummarizestheactivitiesoftheBureauofExportAdministration(BXA)ofthe  DepartmentofCommerce(Department)duringFiscalYear2001. /#  1      ׀ n  XX8 OverviewofBXA #X8X ɸ# :  Createdin1987principallytoadministerthedualuseexportcontrolregimethathadthen , | residedintheDepartmentsInternationalTradeAdministration,BXAtodayhasabroadand  b  expandingarrayofresponsibilitiesforissuesarisingattheintersectionofindustryandnational  H  security.Inadditiontoadministeringandenforcingcontrolsontheexportofsensitivedualuse .  items(i.e.,goodsandtechnology),BXAsresponsibilitiesextendedto:   *,XX4 XX* +!&'((=xx!&'("3"  32=3  0    coordinatingtheCommerceDepartmentspostSeptember11effortstoensurehomeland   security;3-݌v (#(# Ќ     +!&'((=xx+!&'("3"  32=3  0    leadingU.S.Governmentoutreacheffortstopromotefederalinitiativesandpublic B privatepartnershipsacrossindustrysectorstoprotectthenationscriticalinfrastructures;3݌(x(#(# Ќ  "3"  382=3  0    monitoringtheviabilityoftheU.S.defenseindustrialbaseandensuringthatneither D importsnorforeignacquisitionsthreatenU.S.nationalsecurity;38e݌*(#(# Ќ  "3"  3 2=3  0    advocatingsalesofdefenseitemstoforeigncountriesonbehalfofU.S.companies;3 ݌(#(# Ќ  "3"  3!2=3  0    implementingeconomicsanctionsinfurtheranceofU.S.foreignpolicyobjectives;3!!݌r(#(# Ќ    "3"  3"2=3  0    facilitatingthecomplianceofU.S.industrywithinternationalarmscontrolagreements;3""݌>(#(# Ќ  "3"  3#2=3  0    cooperatingwithandassistingothercountriesonstrategictradeandexportcontrol  Z initiatives;3##݌@(#(# Ќ  "3"  3$2=3  0    enforcingantiboycottlaws;and3$!%݌!  (#(# Ќ   "!  "3"  3%2=3  0    administeringtheDefensePrioritiesandAllocationsSystem.3%&݌(#(# Ќ  Indeed,evenBXAscoreexportcontrolfunctionshavechangedsubstantiallyastherationales  andmechanismsforimposingexportcontrolshaveshifted.   TheevolutionofBXAsmissionistheproductofsubstantialgeopoliticalchangesthathave   occurredoverthepasttwodecades,includingtheendoftheColdWar,theriseofnonstate g ~ actors,globalization,rapidtechnologicalchange,andarejectionofcentrallyplannedeconomies M d infavoroffreemarkets. 3J ThesechangesandtheevolutionofBXAsmissionalsohavedictatedachangeinBXAs   philosophicalorientation.Historically,BXAsfunctionhasbeentheregulationofU.S.industry.   Whileregulationtoprotectnationalsecurityremainsnecessary,BXAistodaybringingtoboth   itsnewandoldmissionstwonewapproaches!(i)workingwithindustrytopromotenational   security,and(ii)workingwithU.S.tradingpartnerstoprotectglobalsecuritywhileseekingto   minimizegovernmentalinterferencewithtrade. }  ThechangesinBXAsmissionandgoalsaredemonstratedintheFY2001activitieshighlighted I` belowandinthesubsequentchaptersthatfocusonBXAsprincipaloffices. /F  XX8 FiscalYear2001Highlights 5y #X!KX5y,#  HighlightsofBXAsactivitiesduringFY2001include:   HomelandSecurityandResponsetoEventsofSeptember11   #X8XXX!K,#X!KXXX8BXAhasplayed,andwillcontinuetoplay,animportantroleinthebroaderFederalGovernment  responsetotheterroristattacksonSeptember11.  #X8XXX!K-#IntheimmediateaftermathofSeptember11,BXAapplieditsspecializedcapabilitiestoassistin ! theFederalGovernmentsinvestigationandresponse.Intheweekaftertheattacks,BXA m" assignedseveralenforcementagentstoassisttheFBIwithitsinvestigationoftheattacks.BXA S#j agentsspecializingincomputerrecoveryanalysisworkedcloselywithFBIjointterrorismtask 9$P forcesinNewYork,Dallas,andBostontoanalyzeseizedcomputersforevidenceofthe %6  terroristscriminalconspiracy.WhileBXAhadbeenemphasizingenforcementactivitiesrelated &! toterroristgroupsandthosewho,throughillegalexports,mightbesupportingthempriorto &" September11,thoseeffortswereredoubledaftertheterroristattacks.X!KXXX8 '# #X8XXX!Kc2# CriticalInfrastructureProtection X!KXXX8 )!% #X8XXX!K2#BXAsCriticalInfrastructureAssuranceOffice(theCIAO)continuedtoexpanditsProject s+#' 0@ 0  0  Matrixprogram,aneffortthattookonnewurgencyinlightoftheSeptember11attacks.Project  Matrixhelpsfederalagenciestoidentifyphysicalandinformationsystemassetsthatare  essentialforthegovernmenttoprotectU.S.nationalandeconomicsecurity.Following   September11,theCIAOusedinformationfromProjectMatrixtohelptheNationalSecurity   Councilidentifyandprotectpotentialtargetsoffutureattacks.   TheCIAOalsocontinuedtoworkwithothergovernmentagenciesandtheprivatesectorto M d developthenationalstrategyforcriticalinfrastructureprotectionandtoraiseawarenessinthe 3J privatesectoroftheneedtoprotectinformationsystems. 0 X!KXXX8InNovember2001,theUnderSecretaryofCommerceforExportAdministrationwasappointed   torepresenttheCommerceDepartmentonthePresidentsCriticalInfrastructureProtection   Board.TheUnderSecretaryalsowillchairtheBoardsStandingCommitteeonPrivateSector   andStateandLocalGovernmentOutreach,whichistheCommitteeresponsibleforcoordinating   criticalinfrastructureprotectionissueswiththeprivatesectorandstateandlocalgovernments.#X8XXX!K97#    IndustryOutreachandCooperation  { BXAworkedcloselywithindustryinFY2001toenhancenationalandglobalsecurity: G^  +!&'((=xx+!&'("3"  3:2=3  0    BXAconducted47exportcomplianceseminarsthatprovidedinformationandtrainingto * morethan6,000participants.Inaddition,BXAs14thannualUpdateConferenceon  ExportControlsandPolicyattractedmorethan600representativesfromtheglobal  exportingcommunity;3: ;݌(#(# Ќ  "3"  3<2=3  0    BXAhosted16onsiteinspectionsofU.S.chemicalfacilities,carriedout17site  assistancevisitstopreparefacilitiesforinspections,andconductedoutreachseminarsto w assistindustryincompliancewiththeChemicalWeaponsConvention;and3<=݌] t(#(# Ќ  "3"  3>2=3  0    BXAconductedavigorousExportEnforcementledoutreachprogramgearedtoward )"@ increasingprivatesectorawarenessofandcompliancewiththeexportcontrollaws,with #& aparticularemphasisafterSeptember11onstrategicindustries,suchaschemical #  manufacturersandbiotechnologycompanies,thatproducegoodsandproductsthat $  terroristgroupsmightseektoobtain.3>>݌%!(#(# Ќ  ExportLicensingandPolicy  '# InFY2001,BXAapprovedexportlicenseapplicationsforproductswithatotalvalueof Y)p!% $10.9billion,anincreaseof$2.9billionfromFY2000.ThespeedwithwhichBXAprocessed ?*V"& mostexportlicensescontinuedtoimproveinFY2001,notwithstandingaslightincreaseinthe %+<#'  totalnumberofapplicationssubmitted(10,884inFY2001vs.10,701inFY2000).The  processingtimeforlicenseapplicationsthatdidnotrequireinteragencyreviewaveraged12  days,adecreasefroma15dayaverageinFY2000.Theprocessingtimeforlicensesrequiring   interagencyreviewinFY2001averaged44days.X!KXXX8   BXAsoverallapprovalrateforlicenseapplicationsinFY2001increased.#X8XXX!KCD#ԀBXAapproved8,806 q  applications,returned1,740applicationswithoutaction,anddenied225applications,adecrease p  from398denialsinFY2000.Thisdecreaseindenialsresultedlargelyfromtheremovalof Vm manyIndianandPakistanientitiesfromtheEntitiesListduringFY2001. <S BXAimplementedanumberofsignificantexportcontrolpoliciesinFY2001,including:   "3"  3F2=3  0    BXAtwicerevisedcontrolthresholdsforhighperformancecomputers(HPCs).The   revisionsraisedthecontrollevelonHPCsto85,000millionsoftheoreticaloperationsper   second(MTOPS)forComputerTier3countries,therebyrelaxingmostcontrolson   standardcomputersavailableonacommercial,massmarketbasis.Inaddition,several   countriespreviouslyincludedinComputerTier2weremovedtoComputerTier1, l therebyfurtherstreamliningcontrolsoncomputersdestinedforthosecountries.3FF݌Ri(#(# Ќ  "3"  3I2=3  0    OnJuly12,2001,BXAamendedtheExportAdministrationRegulationsimplementing 5 certainprovisionsoftheTradeSanctionsReformandExportEnhancementActof2000  (TSRA)relatingtoexportsofagriculturalcommoditiestoCuba.Theseregulations  provideastreamlinedprocedureforauthorizingexportsofagriculturalcommoditiesto  Cuba.Underthisprocedure,anexportersubmitspriornotificationofaproposed  transactiontoBXAand,ifnoreviewingagencyobjectstothetransactionwithin12  businessdays,theexportermayshipunderanewlicenseexception.3II݌(#(# Ќ  "3"  39M2=3  0    InresponsetotheremovalofSlobodanMilosevicasPresidentoftheFederalRepublicof N e Yugoslaviaandthesubsequentdemocraticelections,onMarch1,2001,BXApublished 4!K aruleliftingmanyofthetradesanctioncontrolsonSerbia.Therulealsoincludeda "1 prohibitiononexportsandreexportsbyU.S.personstoindividualsnamed39MfM݌#(#(# Ќ  0  inExecutiveOrders13088and13192,includingMilosevic,hisfamily,andtheir # associates,aswellaspersonsindictedbytheInternationalCriminalTribunalforthe $  FormerYugoslavia.%!(#(# "3"  3P2=3  0    Aninteragencygroup,chairedbytheNationalSecurityCouncil,resolvedalongstanding ~'# exportlicensingjurisdictionaldisputewithrespecttocertain spacequalifieditems. d({ $ TheresolutionmovedfivecategoriesofitemstotheU.S.MunitionsList(USML), J)a!% retainedsixcategoriesofitemsontheCommerceControlList(CCL),andsubdivided3PP݌ 0*G"&(#(# Ќ  @  o 0  fiveadditionalcategoriesbetweentheUSMLandCCL.Exportersoftheseitemsnow  haveagreatermeasureofcertaintyregardingwhichagencyhaslicensingjurisdiction  overspacequalifieditems. (#(#  ExportEnforcement    BXAcontinuedtoenforceitsexportcontrolsaggressively.BXAinvestigationsofexportcontrol M d violationsresultedintheimpositionof$2,392,000incivilpenaltiesand$1,125,400incriminal 3J finesduringFY2001. 0 BXAconcludedanumberofsignificantenforcementcasesinFY2001,includingalandmark   enforcementactionagainstTALIndustries(TAL),awhollyownedsubsidiaryoftheChina   NationalAeroTechnologyImportandExportCorporation(CATIC),aPeoplesRepublicof   China(PRC)governmentownedcorporation,fortheexportofmachinetoolsfromtheUnited   StatestothePRC.TALscriminalpleamarkedthefirsttimeinU.S.historythatacorporation, }  whollyownedbythegovernmentofthePRC,waiveditssovereignimmunityandwasconvicted cz  ofacriminaloffenseinaU.S.court.BXAalsoimposedanadministrativepenaltyanddenialof I` exportprivilegesonTAL.X!KXXX8 /F #X8XXX!K|X#X8XXX8Inaddition,BXAcontinuedtoenforcetheantiboycottlawsaggressively.#X8XXX8X#X8XXX8ԀBXAimposed  $117,250incivilpenaltiesforantiboycottviolationsduringFY2001.#X8XXX8^Y#X8XXX8BXA#X8XXX8 Z#X8XXX8Ԁalsocontinuedto  processreportsbyU.S.businessesofrequeststoparticipateintheArabLeagueboycottofIsrael.  BXAreceivednotificationsfrom319personswhoreportedthereceiptof1,270documents  containing1,482boycottrequests.#X8XXX8OZ#X8XXX8   #X8XXX8[#DefenseIndustrialBasePrograms  i BXAconductedseveralmajoractivitiesinFY2001relatedtopreservingthestrengthoftheU.S. 5 L defenseindustrialbase,including: !2   "3"  3]2=3  0    completinganinemonthinvestigationintowhetherimportsofironoreandsemifinished " steelthreatentoimpairU.S.nationalsecurity;3];]݌#(#(# Ќ    "3"  3n^2=3  0    advocatingK+ ` hp x ,XX4 XKthesaleofapproximately$700millionofconventionalarmsandweapons %! systemstoforeigngovernmentsthroughitsdefensetradeadvocacyprograms;3n^^݌&"(#(# Ќ  "3 "  '4 XX'3"`2=3  0    partneringwiththeU.S.CoastGuardtopromotetheDeepwateracquisitionprogramto K(b $ internationalcoastguardsandnavies;and3"`v`݌1)H!%(#(#    *."&  "3 "  3a2=3  0    workingcloselywithCongresstoobtainatwoyearreauthorizationoftheDefense   ProductionAct.3aa݌(#(# Ќ  H+ ` hp x 4 XH InternationalCooperation    X8XXX8BXAengagedinavarietyofinternationalactivitiesinFY2001,onbothabilateraland g ~ multilateralbasis,tostrengthennationalexportcontrolsandthemultilateralexportcontrol M d regimes. 3J #X8XXX8hc#BXAplayedanimportantroleinbilateralandmultilateralinitiativesdesignedtostrengthenthe   nationalexportcontrolsystemsofkeycountries.BXAcontinuedtoworkactivelytoassistthe   statesoftheformerSovietUnion,theBalticregion,andCentralandEasternEuropetoestablish   andincreasetheeffectivenessoftheirnationalexportcontrolsystems.DuringFY2001,BXA   conducted44bilateraltechnicalassistanceexchangesandhostedseveralmultilateral   conferencesandworkshops,includingtheFifthRegionalForumonExportControlsand }  NonproliferationfortheNationsofCentralAsiaandtheSouthernCaucasus.X8XXX8 cz  #X8XXX8g#BXAalsoworkedcloselywiththeDepartmentsofStateandDefensetodevelopproposalsto /F strengthentheeffectivenessofthefourmultilateralexportcontrolregimes:theWassenaar , Arrangement,theNuclearSuppliersGroup,theAustraliaGroup,andtheMissileTechnology  ControlRegime.SignificantaccomplishmentsinFY2001includeagreementattheWassenaar  Arrangementtoliberalizecontrolsonmassmarkethighperformancecomputersandgeneral  purposemicroprocessorsandtostreamlinecontrolsonmassmarketencryptionproducts.  Inaddition,BXAstrengtheneditsinternationalenforcementinFY2001bypostinganexport y controlattachtotheU.S.EmbassyinMoscow.ThisofficialassiststheRussianFederationin _v implementingenforcementprocedurestohalttheproliferationofU.S.and Russianstrategic E\ goodstocountriesofconcern.AnattachisalsopostedinBeijing,China.  + B  BXAalsoworkedwithanumberofkey transshipmentcountriestodevelopasetof best ! enforcementpracticestoaddresstheproblemofcontrollinggoodsthataretransshipped.These " practiceswereadoptedataNovember2000InternationalTransshipmentEnforcement # Conference!thefirsttimetransshipmentcountriesasagrouphaveagreedtoauniformsetof $  bestpractices. X!KXXX8 %! #X8XXX!K$n#InformationTechnologyInitiatives  ['r# BXAcontinuedtoimproveitsSimplifiedNetworkApplicationProcess(SNAP),aWebbased ')>!% systemthatallowsexporterstosubmitlicenseapplicationsandotherrelatedactionsdirectlyto  *$"& BXAthroughasecureInternetconnection.BXAisfinalizingnewcapabilitiesforSNAP, * #' @      includingelectronicsubmissionofsupportingdocumentation,trackingofinteragency  informationrequests,andeliminationofadditionalpaperbasedforms.Currently,60percentof  thelicenseapplicationsreceivedbyBXAaretransmittedthroughSNAP.     BXAalsocontinuedtomakeprogressontheredesignofitsExportControlAutomatedSupport   System,theautomatedsystemthattrackstheprocessingofexportlicenseapplications. g ~ Accomplishmentsincludedthedevelopmentofsoftwarerequirementdocuments,theselectionof M d anintegrationcontractortobuildthesystem,selectionofcasemanagementsoftware,andthe 3J approvalofamultiyearsoftwaredevelopmentplan.  XX8  0       `  -('    X Chapter1.ExporterServices#X8X ɩs#   BXAsOfficeofExporterServices(OEXS)carriesoutawiderangeofactivitiestohelp   exportersunderstandandcomplywithexportcontrolrequirements.OEXSdevelops,maintains,   anddisseminatestheExportAdministrationRegulations(EAR)andadministersBXAsoutreach   seminarprogramtoeducatetheexportingcommunityaboutexportcontrol,regulations,and s  licensingpolicy.OEXSalsoprovidesadviceonabroadrangeofexportissues,including Yp licensinganddocumentationrequirementsforexporttransactionsandspecialcountrypolicies. ?V OEXShelpsimplementtheEnhancedProliferationControlInitiative(EPCI)EndUser %<  VerificationprocessthroughwhichU.S.exportersareinformedofforeignentitiesengagedin  "  activitiesthatraiseproliferationconcerns.Furthermore,OEXSdevelopsInternalControl   ProgramguidelinesandExportManagementSystemguidelinesthatcompaniescanusetoensure   exportsareconsistentwiththeEAR.Finally,OEXSconductssystemsreviewsofSpecial   ComprehensiveLicense(SCL)andInternationalCooperativeLicense(ICL)internalcontrol   programstoverifycompliancewiththeEARandthetermsofthelicenses.    OEXSconductsitsworkthroughfourdivisions:RegulatoryPolicy,OutreachandEducational Ul Services,ExportManagementandCompliance,andOperations.OEXShasfieldofficesin ;R NewportBeachandSanJose,California. !8  RegulatoryPolicyDivision X!KXXX8  #X8XXX!K{#OEXSimplementschangesintheEAR(15CFRparts730to774)draftsnewregulations,and  coordinatestheclearanceofallchangestotheEAR.Belowisasummaryofsignificant  regulatorychangesmadetotheEARduringFY2001.   +!&'((=yx +!&'("3"  3}2=3  0    OnSeptember28,2001,BXApublishedaruleliberalizingexportstoStatePartiestothe [ r ChemicalWeaponsConvention(CWC)ofmedical,analytical,diagnostic,andfood A!X testingkitscontainingsmallquantitiesofAustraliaGroup(AG)controlledchemicals '"> thatalsoareidentifiedonCWCSchedule2orSchedule3andexportsofcertainmixtures  #$ containinglessthan30percentbyweight(previously25percentorless)ofanysingle #  AGcontrolledchemical.ThisrulealsoaddedCyprusandTurkeytothelistofcountries $  thatparticipateintheAustraliaGroup,therebyeliminatinglicenserequirementsfor %!  exportsandreexportsofcertainAGcontrolleditemstothesetwocountries.3}}݌#&"(#(#  #Ќ  "3"  32=3  0    OnAugust10,2001,BXApublishedarulerevisingCountryGroupE:1 /#  2      ׀andexpanding   thescopeofcountriesthatareeligibleforLicenseExceptionTemporaryImports,  Exports,andReexports(TMP).3݌ (#(# Ќ  "3"  32=3  0    OnJuly12,2001,BXApublishedaruleimplementingcertainprovisionsoftheTrade   SanctionsReformandExportEnhancementActof2000(TSRA).TSRArequiresthe g ~ PresidenttoterminateexistingU.S.unilateralagriculturalandmedicalproductssanctions M d onandalsoestablishedalicensingregimefortheexportofagriculturalcommodities, 3J medicines,andmedicaldevicestodesignatedterroristcountries.BXAimplements 0 TSRAasitrelatestoexportsofagriculturalcommoditiestoCuba.TheJuly12rule   establishesLicenseExceptionAgriculturalCommodities(AGR)topermitexportsand   reexportstoCubaofagriculturalcommoditiesthatarenotspecificallyidentifiedonthe   CommerceControlList(CCL).TheTreasuryDepartmentsOfficeofForeignAssets   Control(OFAC)implementsTSRAasitrelatestoexportstoIran,Libya,andSudanof   agriculturalcommodities,medicines,andmedicaldevicesthatarenotspecifically }  identifiedontheCCL.3݌cz (#(# Ќ  X8XXX8"3"  3(2=3  0    OnApril9,2001,BXApublishedarule#X8XXX8#X8XXX8Ԁrevisingcontrolsonmicroprocessors,graphic /F accelerators,andexternalinterconnects#X8XXX8#X8XXX8,reflectingchangesagreedtobythemultilateral , WassenaarArrangementonExportControlsforConventionalArmsandDualUseGoods  asaresultofrapidtechnologicaladvancesandwidespreadcommercialavailabilityof  suchitems.3(U݌(#(# Ќ  "3"  32=3  0    OnApril9,2001,BXApublishedaruleeasingcontrolsoncertainnuclearitemsto  Brazil,Latvia,andUkraine#X8XXX8#ԀfollowingtheadmissionofthesecountriestotheNuclear y SuppliersGroup.TheNuclearSuppliersGroupmembercountrieshaveagreedto _v establishexportlicensingproceduresforthetransferofitemsidentifiedontheAnnexto E\ theNuclearRelatedDualUseEquipment,Materials,andRelatedTechnologyList, + B whichispublishedbytheInternationalAtomicEnergyAgency.Inaddition,theApril9 !( ruleaddedAustria,Finland,Ireland,andSwedentoalistofcountriesnotsubjectto ! certainnuclearenduserestrictionsX8XXX8,becauseoftheircommitmenttonuclear " nonproliferation.3D݌#(#(# Ќ  "3"  3t2=3  0    OnMarch1,2001,BXApublishedaruleremovingmanylicenserequirementsimposed %! onexportstoSerbiainMay1999.#X8XXX8#ԀHowever,thelicenserequirementsweremaintained u&" forexportsandreexportsbyU.S.personsofanyitemsubjecttotheEARtopersons  listedinExecutiveOrder13088,asamendedbyExecutiveOrder13192,including  SlobodanMilosevic,hisfamily,hiscloseassociates,andindividualsindictedforwar   crimesbytheInternationalCriminalTribunalfortheformerYugoslavia.3t݌ (#(# Ќ  "3"  32=3  0    OnJanuary19,2001,X8XXX8BXApublishedarulerevisingLicenseExceptionComposite g ~ TheoreticalPerformance(CTP)toreflectrapidtechnologicaladvancesincomputing M d capability.ThisruleimplementedthesixthrevisiontoU.S.exportcontrolsonhigh 3J performancecomputers(HPCs),allowingHPCswithaCTPupto85,000million 0 theoreticaloperationspersecond(MTOPS)tobeexportedtoComputerTier3countries   underLicenseExceptionCTP.TherulealsodeletedComputerTier2andmovedallthe   countriesincludedinComputerTier2toComputerTier1.BeginningMarch20,2001,   exporterswerenolongerrequiredtosubmitNationalDefenseAuthorizationActadvance   notificationsforexportsofHPCswithaCTPexceeding85,000MTOPS.3ɓ݌ (#(# Ќ  #X8XXX8$#& d OutreachandEducationalServicesDivision  cz  ExportComplianceSeminarProgram  /F  BXAprovidesthebusinesscommunitywithinformationregardingchangesinexportpolicyand  licensingproceduresthroughaprogramofeducationalseminarsandworkshops.'dcOEXS  alliancewithanumberofindustrytradeassociations,universitiesandcolleges,stateandlocal  governments,andnonprofitinternationalbusinessrelatedorganizationsisacriticalaspectofthis  program.ThisalliancefurthersBXAsgoalofmaintainingacooperativerelationshipwith  industry. y TheOEXSoutreachprogramtothedomesticandinternationalbusinesscommunitiesencourages E\ compliancewiththeEARandincreasedgovernmentindustryinteractiononexportlicensing + B policy.DuringFY2001,throughavarietyofprogramsofferedatlocationsthroughoutthe !( UnitedStates,BXAcontinuedtoinstructandassistnewandestablishedexporters.Inaddition ! toprovidingbasicandadvancedlevelcourses,BXAalsoprovidedspecializedworkshopson " topicsofspecificinterest(e.g.,commercialencryptionlicensing,chemicalweaponsregulations, # exportmanagementsystems,andfreightforwarderprograms). $  OEXSconducted47exportcomplianceseminarsinFY2001,whichprovidedinformationand u&" trainingtoover6,000participants.BXAalsoprovidedspeakersfornumeroustraderelated ['r# events.Throughtheoverseasprogram,BXAcontinuestoinstructforeignexportersand A(X $ governmentsonU.S.exportcontrols.InFY2001,BXAconductedseminarsinChina,Sweden, ')>!% theNetherlands,andtheRepublicofSouthKorea.  *$"&   * #'  Update2001  BXAs14thannualUpdateConferenceonExportControlsandPolicyattractedover600   representativesfromtheglobalexportingcommunity.Theannualconference,whichisBXAs   premiereventandtheCommerceDepartmentslargesteventintheWashington,D.C.,area,   bringshighlevelgovernmentofficialsandindustryrepresentativestogethertodiscusschanges g ~ inexportcontrolpoliciesandprocedures. M d ExporterCounseling  0  OEXSisBXAsfrontlineunitinprovidingexportercounselingandplaysamajorrolein   guidingexportersthroughcomplexlicensingtransactions.Ourregulatoryspecialistsprovide   oneononecounseling11hoursadaythroughmeetings,telephonecounselingsessions,and   responsestoemailandfaxinquiries.Inaddition,theBXAWebsiteprovidesexportersconstant   accesstotimelyinformationandservices. }  OEXSaccomplishesitsoutreachandcounselingactivitiesthroughitsheadquartersin I` Washington,D.C.,andthroughitsWesternRegionalOfficesinLosAngelesandSanJose, /F California.Theregionalofficesarelocatedinthefastestgrowing,hightechnologyregionsin , theUnitedStatesandarewithincommutingdistanceofmorethan10percentofthetotalU.S.  population.  InFY2001,theresourcesoftheformerExporterCounselingDivisionandtheExportSeminar  Staffwerecombinedintoanewoffice,theOutreachandEducationalServicesDivision.This  mergerenhancedtrainingandeducationalservicesbyintegratingalargeportionofBXAs y outreachfunctionsintooneoffice.BeginninginFY2001,theSpecialLicensingand _v ComplianceDivisionbecamethe ExportManagementandComplianceDivision,atitle more E\ accuratelyreflectingtheofficescurrentandplannedresponsibilities.X!KXXX8 + B OEXSenhancesitscustomerserviceinitiativesthroughbrochuresandexportcontrolrelated " publications.Tosupportourdiversecustomerbase,someofthesepublicationshavebeen " translatedandpublishedinotherlanguages.BXApublishedthe BureauofExport # AdministrationsIntroductiontoExportControlsinFY2001.Previouspublicationsincludet#X8XXX!K#he $   HelpfulHintsforCompletingtheMultipurposeApplicationFormBXA748P,whichhasbeen %! updatedtoincludeinformationregardingelectroniclicensesubmissionthroughtheSimplified &" NetworkApplicationProcess(SNAP)system. '#   ( $ OperationsDivision   ExportLicenseProcessing   h    InFY2001,BXAreceived10,843licenseapplications,aslightincreaseoverthe10,701   applicationsthatwerereceivedinFY2000.BXAcompletedreviewof10,773applicationsin g ~ FY2001. /#  3      ׀ThehighestnumberofapprovalsunderonecommodityclassificationwasforEAR99 M d items,with1,108approvals.Overall,BXAapproved8,806applications,returned1,740 3J applicationswithoutaction,anddenied225applications.Thisdecreaseindeniedapplications 0 (downfrom398denialsinFY2000)resultedlargelyfromtheremovalofmanyIndianand   PakistanientitiesfromtheEntitiesList.   TheaverageprocessingtimeforapplicationsreviewedonlybyBXA(i.e.,applicationsnot   referredtootheragenciesforreview)continuestodecline.InFY2000,nonreferred   applicationswerecompletedwithanaverageprocessingtimeof15days;BXAreducedthe }  averageprocessingtimeto12daysinFY2001.Asignificantchallengeremainstoreducethe cz  averageprocessingtimeforcasesthatarereferredforinteragencyreview.InFY2001,86 I` percentofallcompletedlicensingdecisionswerereferredtootheragencies,withanaverage /F processingtimeof44days.BXAcontinuestoworkwithotheragenciestonegotiatedelegations , ofauthorityacceptabletoallagenciesinvolvedintheinteragencyprocess.Obtaining  delegationsofauthorityfromotheragenciesincreasesthenumberofapplicationsBXAcan  reviewwithoutreferral.Atthesametime,BXAcontinuestoworkondevelopingstandard  conditionsonapplicablespecificcategoriesofcases,suchasdeemedexportsandnightvision  equipment,thatareacceptabletoallagencies.Withmorethan99percentofallapproved  applicationsbeingapprovedwithconditions,havingpreapprovedconditionsforspecified y exportswillsignificantlyreducethetimetoissuealicense. p      _v BXAcontinuestoseeanincreaseintheusebyexportersofSNAP,aWebbasedsystemthat + B allowsexporterstosubmitexportandreexportlicenseapplications,highperformancecomputer !( notices,andcommodityclassificationrequestsdirectlytoBXAthroughasecureInternet ! connection.AsmoreexportershavestartedusingSNAP,thenumberofapplicationssubmitted " electronicallyusingtheolderExportLicenseApplicationandInformationNetworkhas # graduallydecreased.BXAalsohasexperiencedamarkeddeclineinthenumberofpaperexport $  licenseapplicationsreceived.SNAPsubmissionsrepresented88percentoftotalelectronic %! submissionsreceivedand54percentofallapplicationsreceived(bothpaperandelectronic). u&"   A(X $ BXAcontinuestotestanewprototypeautomatedapplicationsystemthatwouldallowthe  electronicsubmissionoftechnicalspecificationsandsupportingdocumentation,whichcurrently  onlycanbesubmittedbyfaxorexpressmail.BXAhopestohavethenewsystemfully   operationalinFY2002.   ExportLicenseReferralProcess g ~ TheDepartment,pursuanttoExecutiveOrder12981andagencypractice,referscertainexport 3J licenseapplicationstootheragenciesforreviewandrecommendation,basedonthelevelof 0 technology,theappropriatenessoftheitemsforthestatedenduse,andthecountryof   destination.TheprincipalagenciestowhichBXAreferslicenseapplicationsarethe   DepartmentsofDefense,State,andEnergy. Sincethetransferofjurisdictionovertheexportof   commercialencryptionproductstotheDepartment,theDepartmentofJusticeandtheNational   SecurityAgencyhavealsohadaroleinthelicensereviewprocessforencryptionlicense   applications.Recommendationsfromthereviewingagencieseithertoapproveordenythe }  licenseapplicationmustbesubmittedtoBXAwithin30daysofreceiptofthereferral. cz  ExecutiveOrder12981alsoestablishedaninteragencydisputeresolutionprocess.The /F OperatingCommittee(OC)reviewsalllicenseapplicationsforwhichreviewingdepartmentsand , agenciesarenotinagreement.TheChairoftheOC(aBXAofficial)considersthe  recommendationsofthereviewingagenciesandinformsthemoftheChairsdecisionwithin14  daysafterreceiptoftheagencyrecommendations.PriortoelevationtotheOC,certainlicense  applicationscanbediscussedonaconsultativebasisatStateDepartmentchaired,workinglevel,  interagencygroupsthatreviewcasesrelatedtospecificproliferationrelatedconcerns.  Specifically,nuclearnonproliferationcasesarereviewedbytheSubgrouponNuclearExport y Coordination,missiletechnologycasesarereviewedattheMissileTechnologyExportControls _v interagencygroup,andchemical/biologicalweaponscontrolcasesarereviewedattheShield,an E\ interagencygroup. + B AnyreviewingagencymayappealthedecisionoftheChairoftheOCtotheChairofthe ! AdvisoryCommitteeonExportPolicy(ACEP),anAssistantSecretarylevelbodychairedbythe " DepartmentsAssistantSecretaryforExportAdministration.Theprincipalmembersofthe # ACEParefromtheDepartmentsofDefense,State,andEnergy.Intheabsenceofatimely $  appeal,theOCChairsdecisionwillbefinal. %! AreviewingagencymustappealanOCdecisiontotheACEPwithinfivedaysoftheOCsfinal ['r# decision.Appealsmustbeinwriting,fromanofficialappointedbythePresidentandconfirmed A(X $ bytheSenateoranofficerproperlyactinginsuchcapacityandmustcitethestatutoryand ')>!% regulatorybasisfortheappeal.DecisionsoftheACEParebasedonamajorityvote.  *$"&  * #' AnydissentingagencymayappealtheACEPsdecisiontotheExportAdministrationReview  Board(EARB),aCabinetlevelgroupcomposedoftheSecretariesofDefense,State,andEnergy  andchairedbytheSecretaryofCommerce,bysubmittingaletterfromtheheadoftheagency.   Intheabsenceofatimelyappeal,thedecisionoftheACEPisfinal.TheChairoftheJoint   ChiefsofStaffandtheDirectorofCentralIntelligencearenonvotingrightsmembersofthe   EARB.ExportapplicationsconsideredbytheEARBareresolvedbyamajorityvote,andany g ~ agencymayappealthedecisiontothePresident.Intheabsenceofatimelyappeal,theEARBs M d decisionisfinal. 3J ExecutiveOrder12981alsoreducedthetimepermittedtoprocessalicenseapplicationto90   calendardaysfromthedayitissubmitted.Afterthattime,finalactionshallbetakenonthe   applicationoritwillbeescalatedtothePresidentforadecision.       IsInformedProcess   Thedevelopmentofalistofentitiesofproliferationconcernthroughthe IsInformedprocess cz  arosefromtheEnhancedProliferationControlInitiative(EPCI)announcedin1990tostemthe I` proliferationofmissiletechnologyandnuclear,chemical,andbiologicalweapons.UnderEPCI, /F licensingrequirementscanapplytoexportsandreexportsofitems(i.e.,goodsandtechnology) , thatnormallydonotrequireanexportlicensewhenthereisanunacceptableriskofuseinor  diversiontoactivitiesrelatedtonuclear,chemical,orbiologicalweaponsormissile  proliferation,eveniftheenduserisnotprimarilyinvolvedinweapons-relatedactivities.  Beforeanentityisaddedtothe EntityList,itsallegedproliferationactivitiesareextensively  evaluatedbyaBXAchairedinteragencygroup. /#  4      ׀Thisgroupdeterminesifexportstoaparticular y entitypresentanunacceptableriskofuseinordiversiontomissile,chemical,andbiological _v weaponsornuclearproliferationactivities.Ifapositivedeterminationismade,thegroupthen E\ decidesifalicenseisnecessaryforotherwise uncontrolleditemsbeingexportedtothatentity. + B Decisionsaremadebyamajorityvote.Agenciesthatdissentmayescalatethedecisiontothe !( ACEP. AppealsmaybefurtherescalatedtotheEARBandPresidentasdescribedinthe ! previoussection. " AmajorrevisiontotheEntityListoccurredinFY2001when12entitieslocatedinthePeoples $  RepublicofChinawereaddedtothelist.  InFY2000,asimilarlysignificantrevisionoccurred %! whenapproximately50IndianandPakistanientitieswereremovedfromthelist.  u&"   ['r# Ї ExportManagementandComplianceDivision   SpecialComprehensiveLicense   OEXSoffersanalternativelicensingmechanismforexporterswhoroutinelymakehighvolume   shipmentsofpreapproveditemstopreapproveddestinations,enduses,andendusers.A g ~ speciallicensewasestablishedfortheseexporterstouseinlieuofsubmittingindividual M d applications.Theincreasedflexibilityandreducedpaperworkburdenonexportersandre 3J exportersallowU.S.firmstoimprovedeliverytiming,whichgivesthemanedgeinthenew 0 globaleconomy.   Thislicensingoption,calledaSpecialComprehensiveLicense,isavailabletoreliable,   experiencedexporterswhohaveastrongcorporatecommitmenttodevelopingandmaintaining   anInternalControlProgram(ICP).PartiesusingtheSCLmusthavemechanismsinplaceto   ensurethateachexportandreexportmadeunderanSCLmeetsthetermsandconditionsofthe }  licenseandcomplieswiththeEAR.BXAdoesnotrevieweachindividualtransaction cz  authorizedbyanSCL. I` TheSCLmayauthorizeanumberofactivities,suchasservicing,exportandreexportofcapital , equipment,and/orexportingitemsforthepurposeofresaleandreexport.BXAcurrentlyhas  authorized12 companiestoexportandreexportpursuanttoaSCL.  InternationalCooperativeLicenses  InternationalCooperativeLicensesareapprovedbyBXAtofulfilltheworkoftheU.S. y Governmentininternationalcooperativeprojects.TheselicensesarecraftedaftertheSCL _v structureandpaperworkrequirementsandrequireanICP. E\ InternalControlPrograms !( TheSCLandICLbothmandateanICP.EachlicenseholdercraftsitsICPtoensurethatits " exportandreexportprocedurescomplywiththerequirementsofthelicenseandtheEAR. # ElementsoftheICPincludecustomerscreening,auditing,training,andrecordkeeping.OEXS $  revisesanddistributesICPGuidelinesandothertoolsthatcanbeusedbySCLandICLholders %! inimplementingandauditingoftheirprograms,includingtheSCLHolderReviewModule. u&" ThisModulewasusedasthebasisfordevelopingtheExportManagementSystem(EMS) ['r# ReviewModuletobeusedbycompaniesthatdonotholdSCLs. A(X $ ExportersmaydownloadtheEMSReviewModulefordownloadfromtheExportManagement  *$"& SystemareaoftheBXAWebsite(4q"O  5  www.bxa.doc.gov6eOyeal  7hs). * #' ЇOEXScounselsexportersandconsigneeswhoparticipateinthisproceduretodevelopandrefine  theirICP.TheICPhasbeenthestandardmodelforusebymultinationalcompaniesworldwide  sinceitsimplementationin1985andisnowbeingimplementedbyothercountriesaspartof   theirexportcontrolprograms.   SystemsReviews g ~ ConsistentwiththeprovisionsofSection4oftheEAA,BXAperiodicallyreviewsallactive 3J SCLs andICLs.ThereviewsallowBXAtoevaluatetheadequacyoftheICPsandtoensure 0 compliancewiththeEARandthetermsofthelicense.SystemsReviewsareviewedasa   complianceactivityandasaneducationalopportunitybecauseguidanceisprovidedtotheSCL   holderandconsigneesatthetimeofthereviews.BXAconductedeightSystemsReviewsinFY   2001.   ExportManagementSystemGuidelines }  EMSisaBXAdevelopedcomplianceprogramthatcompaniesmayimplementtoensure I` compliancewiththeEAR.EstablishinganEMSisoptional,butcangreatlyreducetheriskof /F inadvertentlyengaginginatransactionthatviolatestheEAR.BXApublishedthefirstEMS , GuidelinesinSeptember1992,inresponsetorequestsfromthebusinesscommunityfor  assistanceonhowtoscreenmorevigilantlytheircustomersincompliancewiththeEPCI.  TheGuidelinesincludeAdministrativeandScreeningElementsandanOrderProcessing  Elementthathelpsdevelopafoundationforacomplianceprogramwithinanindividual  company.ThroughthevariousscreeningelementsandchecklistswithintheGuidelines, y companiescandevelopproceduresforgainingknowledgeaboutpotentialcustomersand _v transactions.TheGuidelinesalsoprovidesuggestionsforexportercompliancewiththeGeneral E\ ProhibitionsdescribedinPart736oftheEAR. + B OEXScounselsfirmsondevelopingEMSprogramscustomizedtotheirspecificbusiness ! activities.OEXSalsoconductsEMSworkshopsandseminarstoeducatetheexportcommunity " onthevarioustoolsavailabletoassistthemwithEARcompliance.  # u %  % e  XX8WChapter2.StrategicTradeandForeignPolicyControls#X8X g#   TheOfficeofStrategicTradeandForeignPolicyControls(STFPC)iscomposedofthree   divisions:StrategicTrade,InformationTechnologyControls,andForeignPolicyControls.   Eachdivisionplaysanimportantroleinimplementingexportcontrolsanddevelopingexport {  controlpolicyinlightofforeignpolicyandnationalsecurityconcerns. a  STFPCimplementsmultilateralexportcontrolsfornationalsecurityreasonspursuanttothe -V WassenaarArrangementonExportControlsforConventionalArmsandDualUseGoodsand <  Technologies(WassenaarArrangement),whichisamultilateralexportcontrolregimeintended "  tocontroltheexportofconventionalarmsandcertaindualuseitems.Inaddition,STFPCisthe   primaryofficeresponsibleforreviewofencryptionexportpolicyandimplementationofrelated   exportcontrols.   STFPCalsoimplementsU.S.foreignpolicycontrolsforhumanrights,antiterrorism,and w  regionalstabilityreasons.STFPCisresponsibleforallpolicyactions,exportlicenses, ] commodityclassifications,andadvisoryopinionsforitemssubjecttotheWassenaar Cl Arrangementorforeignpolicycontrols.STFPCalsorepresentstheDepartmentininternational )R negotiationsonexportcontrolsandcontrollistdevelopment. 8  StrategicTradeDivision   NationalSecurityControls  TheUnitedStatesmaintainsnationalsecuritycontrolsontheexportandreexportofstrategic s items(i.e.,goodsandtechnology).Becausemanycountriesproduceandexportitemsof Y strategicvalue,unilateralcontrolsbytheUnitedStatesalonewouldnotbeeffectivein ? h preventingdiversionofsuchstrategicitemstoendusesandendusersofconcern.Toachieve %!N thisobjective,theUnitedStatesworkscloselywithitsalliesandparticipatesinthe33country  "4 WassenaarArrangement. " ?+ ` hp x X?kX8XXX8PolicyTowardIndividualCountries $  #X8XXkX8C#kX8XXX8Section5(b)oftheExportAdministrationActof1979,asamended(EAA),requiresthe &" Presidenttoestablishalistofcontrolledcountriesfornationalsecuritypurposes.Executive o'# Order12214(May2,1980)delegatedthisauthoritytotheSecretaryofCommerce.Initially,this U(~ $ listcomprisedthosecountriesnamedinSection620(f)oftheForeignAssistanceActof1961 ;)d!% (FAA)atthetimeoftheenactmentoftheEAA.TheSecretaryofCommerce,however,mayadd !*J"& orremovecountriesfromthelistofcontrolledcountriesundercriteriaprovidedintheEAA. +0#' W ee   Since1980,theSecretaryhasremovedfromthelistofcontrolledcountriestheformerFederal  RepublicofYugoslavia(in1985),Hungary(in1992),andtheCzechRepublic,Poland,andthe  SlovakRepublic(in1994).PublicLaw102-511amendedtheFAAtodeletetheformerSoviet   BloccountriesandcertainothernationsfromthelistofCommunistcountries.UndertheEAA,   theUnitedStates,however,continuestocontrolexportsfornationalsecurityreasonstosomeof o  thecountriesdeletedfromthelisttheFAA. U ~ Thecountriestowhichexportsarecurrentlycontrolledfornationalsecurityreasonsunderthe !J EAAare:Albania,Bulgaria,Cuba,Estonia,Latvia,Lithuania,Mongolia,theindependentstates 0 oftheformerSovietUnion,NorthKorea,thePeoplesRepublicofChina,Romania,Tibet,and   Vietnam.BXA,alongwithotheragencies,providestechnicalexportcontroldevelopment   assistancetomanyofthesecountrieswiththeultimateobjectiveofsufficientlyimprovingtheir   exportcontrolsystemsotheycanberemovedfromthelistofcontrolledcountriesunderSection   5(b)oftheEAA.#X8XXkX8#X8XXX8   WassenaarArrangement Qz  TheWassenaarArrangementisamultilateralexportcontrolregimecurrentlyconsistingof33 F membercountries.Itcontributestonationalandinternationalsecurityandstabilityby , promo