Certain technology transferred from the United States Munitions List to the Commerce Control List (CCL) is subject to "enhanced control." This technology is designated on the CCL by the acronym "SI," which stands for "Significant Items." The technology controlled for SI reasons is "hot section" technology for the development, production, or overhaul of commercial aircraft engines, components and systems. It is included in Export Control Classification Number (ECCN) 9E003 on the CCL.
The licensing policy for "hot section" technology is as follows:
This control provides a mechanism for the United States to monitor the export of this technology to prevent its use in a manner that would adversely effect U.S. nonproliferation goals or the military balance within a region.
1. Probability of Achieving the Intended Foreign Policy Purpose. The Secretary has determined that these controls are likely to achieve the intended foreign policy purpose.
2. Compatibility with Foreign Policy Objectives. The Secretary has determined that these controls are compatible with U.S. foreign policy objectives. The control is consistent with U.S. foreign policy goals to promote peace and stability and to prevent U.S. exports that would contribute to inappropriate military capabilities abroad.
3. Reaction of Other Countries. The Secretary has determined that any adverse reaction to these controls is not likely to render the controls ineffective. Hot section technology for commercial jet engines is subject to dual-use export controls by other allied countries. These countries also recognize the desirability of restricting goods that could compromise shared security and foreign policy interests.
4. Economic Impact.The Secretary has determined that any adverse effect of these controls on the economy of the United States, including on the competitive position of the United States in the international economy, does not exceed the benefit to United States foreign policy objectives. In FY 2002, the Department of Commerce approved 112 licenses for technology controlled under ECCN 9E003. Of the 112 licenses approved, most involved "hot section" technology. The total dollar value of the approvals was $22.1 million, with no denials and nine applications returned without action.
5. Effective Enforcement of Control. The Secretary has determined the United States has the ability to effectively enforce these controls. The U.S. Government does not experience any unusual problems in enforcing these controls. Manufacturers and intermediary companies are familiar with U.S. controls on these products and technology. These items also are subject to multilateral controls. Therefore, cooperation from foreign government enforcement agencies is useful in preventing and punishing violators.
As needed, the Department of Commerce consults with the Transportation Technical Advisory Committee, although no major changes are envisioned to controls on the CCL.
On September 27, 2002, the Department of Commerce, via the Federal Register and via Bureau of Industry and Security's Web page, solicited comments from industry on the effectiveness of foreign policy-based export controls. The comment period closed on November 29, 2002. A detailed review of the comments received is available in Appendix I.
The United States has taken the lead in international efforts to stem the proliferation of sensitive items, urging other supplier nations to adopt and apply export controls comparable to those of the United States. The major industrial partners of the United States maintain export controls on this equipment and technology and control them as dual-use commodities. Pursuant to their agreement to establish a regime for the control of conventional arms and sensitive dual-use goods and technologies, the participants in the Wassenaar Arrangement have agreed to control these items and to ensure that transfers of such items are carried out responsibly and in furtherance of international peace and security.
The U.S. Government has undertaken a wide range of diplomatic endeavors, both bilateral and multilateral, to encourage the proper control over these items. The United States has specifically
encouraged efforts to prevent the unauthorized use or diversion of these items to activities contrary to U.S. national security and foreign policy concerns.
Although the United States has been the world leader in this technology, other countries produce hot section technology. Most countries that are producers of hot section technology are participants in the Wassenaar Arrangement and control these items as dual-use items in accordance with their national licensing policies.