ÿWPC† ÆU,•3éÙ«€æ¾o¥þç_¬=¿;?ƒ2¹ë÷Ô]á‰oÉ ­©ºÍË?ü‰I䂽[ÝÓuœgwX"?°¸ „É„n켞4&>~7ÓÃ|­*o_ øã++“…€åýx¦©t'š8lvü1{UäwªìB+Ä5R¬['»>wÑÁ¦üœªc¤êÝýO&Ã÷9)ꧦ‰ý8%N¤Åì$¹Õ°J®qÉ€CÖ2UUnÁâ"£[ÐKâ̧€Æì¼¡÷èóïim1 eBhÅ©ŽÊoÔ^ú…éA#š78a` YÖ—ñ®-,ãÄÃW£½§~²ZŸ •Î=«˜·Ç+0ýmX!¨¾–rï¡Ø•XoÃûÜ{7¾ª@Öa%‰+HÀ&+ýÁ<³©—ùˆo ßÞЉú~f.“æFõ0,ù=ë&Š´Õÿ"÷âfÞXÚôÍbN¥2ÖoŠz,Ü|’¦ñè7q0&µHt0w‡†«¤òÝW O‹n÷ZM¿ýÍ5ñìKªOh™Î;žï%(¢Ú I³èCÈAÐ;!™ÙnMš‘ý«$7ÈV²ÉhÕ+-×\Àjo‰ Ò“9SrÇ]<0}ÔŒ!î"¼—òê!¾|z=;$3tˆWãt_bï\íBy“\ 즃uâø # ŒUN— %å 0(ëw@4Sgbv~˜HP LaserJet 4 Plus/4M PlusHPPCL5E,ä,,,,,ä0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ zE{|D}~E€5eD‚VƒDIƒ>"WhÔ¬TÔô3|xƒ"ù- ùÝ ƒ!ÝÝ  Ýñ€ñ›ñ€ñÙÙò òÔ‡¼®a¼XXÔÑ€ÑÑ7€å XXdìdÈ7Ñà@ÈÈìàÔ#†Xå X¼¼®a7#ÔÔ‡R%0RXXå ÔI.€EXPORT€ADMINISTRATION€OVERVIEWÔ#†Xå XRR%0Ñ#ÔÔ‡¼®a¼XXå ԈР° ÐÌ1.€BXA€Backgroundó óÐ  \ ÐÌÔ#†Xå X¼¼®a4#Ôà  àAs€a€bureau€of€the€Department€of€Commerce,€the€Bureau€of€Export€AdministrationÐ 4 „ Ð(BXA)€implements€and€enforces€the€Export€Administration€Act€(EAA)€and€the€ExportÏAdministration€Regulations€(EAR).€€BXA€administers€the€EAA€by€developing€export€controlÏpolicies,€issuing€export€licenses,€and€prosecuting€violators€pursuant€to€the€EAA.€Pursuant€to€theÏEAA,€BXA€also€enhances€the€United€States€security€and€economic€prosperity€by€controllingÏexports€for€national€security,€foreign€policy,€and€short€supply€reasons.€€Foreign€policy€controlsÏlimit€the€proliferation€of€chemical€and€biological€weapons,€missile€technology€and€nuclear€relatedÏitems.€€Pursuant€to€other€laws€and€regulations,€BXA€enforces€the€EAA's€antiboycott€provisionsÏand€works€to€enhance€the€defense€industrial€base€and€assist€U.S.€defense€firms€which€have€felt€theÏimpact€of€reduced€defense€spending.€€BXA€also€helps€other€countries€develop€export€controlÏsystems€comparable€to€the€U.S.€system€and€has€assisted€enterprises€in€the€republics€of€the€formerÏSoviet€Union€in€converting€from€defense€to€civil€production.ÌÌà  àThe€EAA€lapsed€on€August€20,€1994,€and€the€Department€of€Commerce€is€currentlyÏacting€under€the€authority€conferred€by€Executive€Order€No.€12924€of€August€19,€1994,€asÏextended€by€Presidential€notices€of€August€15,€1995€and€August€14,€1996.€€ÌIn€the€Executive€Order,€the€President€invoked€his€authority,€including€authority€under€theÏInternational€Emergency€Economic€Powers€Act,€to€continue€in€effect€the€system€of€controls€thatÏthe€United€States€had€maintained€under€the€EAA.ÌÌÔ‡¼®a¼XXå Ôò ò2.€Fiscal€Year€1996€Highlightsó óÔ#†Xå X¼¼®aõ#ÔÔ‡¼®a¼XXå ÔÐ ¤ô ÐÌÓ  Óò òÔ#†Xå X¼¼®a[#ÔExport€Controls€in€the€21st€Centuryó óÐ Ì ÐÓÓÌà  àBXAððs€export€control€agenda€for€the€21st€Century€is€focused€on€preventing€theÏproliferation€of€weapons€of€mass€destruction€while€seeking€to€promote€U.S.€competitiveness€inÏthe€global€marketplace.€€BXA€recognizes€that€U.S.€industry€cannot€successfully€competeÏinternationally€if€the€export€control€system€does€not€reflect€a€changed€security€environment.€€OverÏthe€past€year,€the€Administration€has€taken€important€actions€to€remove€unnecessary€obstacles€toÏexporting€and€strengthen€multilateral€regimes.€These€actions€include€completion€of€our€regulatoryÏreform€effort,€license€processing€reform,€export€control€liberalizations,€and€multilateral€regimeÏparticipation.€€At€the€same€time,€the€Administration€has€actively€involved€industry€representativesÏas€part€of€its€public„private€partnership€effort.ÌÌÓ  Óò òRegulatory€Reformó óÐ Ü(,$& ÐÓ@ ÓÌà  àOn€March€25,€1996,€BXA€achieved€a€regulatory€reform€milestone€with€the€publication€ofÏthe€revised€Export€Administration€Regulations€(EAR).€€Work€began€in€November€1993,€whenÐ  +ð&) ÐBXA€organized€a€Task€Group€to€carry€out€the€Trade€Promotion€Coordinating€CommitteeÏ(TPCC)€recommendation€to€simplify€and€clarify€the€regulations€to€make€them€more€user„friendly,Ïespecially€to€new„to„export€companies.€€BXA€worked€in€partnership€with€the€business€communityÏon€the€comprehensive€revision€of€the€EAR.€€During€the€development€of€a€proposed€rule,€BXAÏpublished€four€discussion€packages€and€sought€comments€from€industry€and€the€public.€€The€MayÏ11,€1995€proposed€rule€reflected€several€new€features€based€upon€comments€received€from€theÏpublic€and€BXAððs€own€assessment€of€how€the€EAR€could€be€improved.€€As€a€follow€up,€BXAÏconducted€more€than€a€dozen€Regulatory€Reform€Fora€around€the€United€States€which€reachedÏover€1,000€industry€representatives.€€We€also€considered€responses€from€over€80€ñ€ñœñ€ñcommentersñ€ñ›ñ€ñ€toÏthe€proposed€rule.€€Since€the€publication€of€the€interim€rule,€BXA€continues€to€involve€industry€toÏaddress€their€comments€and€concerns.€€For€example,€BXA€provided€companies€additional€time€toÏadjust€their€export€control€systems€by€allowing€them€to€comply€with€either€the€prior€regulations€orÏthe€revised€regulations€until€December€31,€1996.ÌÌÓ  Óò òLicense€Processing€Reformó óÐ ˜è  ÐÓúÓÌà  àIn€February,€BXA€implemented€significant€improvements€in€the€export€license€system€viaÏPresidential€Executive€Order€12981,€which€was€signed€by€President€Clinton€on€December€6,Ï1995.€€These€new€procedures€limit€the€application€review€time€by€other€U.S.€agencies,€provide€anÏorderly€procedure€to€resolve€interagency€disputes,€and€establish€further€accountability€through€theÏinteragency€review€process.€€ÌÌà  àThe€Executive€Order€outlines€the€Secretary€of€Commerceððs€authority€and€discretion€toÏrequire,€review,€and€make€final€determinations€with€regard€to€export€licenses€submitted€to€theÏDepartment.€€In€addition,€all€relevant€government€agencies€have€the€opportunity€to€review€dual„¼use€license€applications.€€E.O.€12981€reduces€the€time€permitted€to€process€license€applications.€ÏNo€later€than€90€calendar€days€from€the€time€a€complete€license€application€is€submitted,€it€willÏeither€be€finally€disposed€of€or€escalated€to€the€President€for€a€decision.€€Previously,€all€licenseÏapplications€had€to€be€resolved€within€120€days€after€submission€to€the€Secretary.€€ÌÌà  àThe€Executive€Order€addresses€previous€Congressional€concerns€that€all€interestedÏagencies€should€review€export€licenses€applications.€€By€providing€strict€time€limits€for€licenseÏreview€and€a€ð ðdefault€to€decisionðð€process,€it€also€ensures€rapid€decision€making€and€escalation€ofÏlicense€applications.ÌÌÓ  Óò òExport€Licensing€Liberalizationsó óÐ ô$D # ÐÓÏÓÌà  àThe€Clinton€Administration€continues€to€make€major€progress€in€eliminating€unnecessaryÏand€ineffective€export€controls€and€streamlining€the€export€control€process.€€It€has€simultaneouslyÏstrengthened€the€implementation€and€enforcement€of€those€export€controls€which€are€still€requiredÏto€combat€proliferation€and€worked€to€protect€other€U.S.€national€security€and€foreign€policyÏinterests.€€These€actions€have€greatly€reduced€obstacles€for€exporters.Ð  |*Ì%) Ðà  àOn€January€25,€1996,€BXA€published€a€revision€of€U.S.€export€controls€on€computers€thatÏadjusted€them€to€fit€the€new€international€security€environment€and€rapid€technological€change€inÏthe€computer€market.€€This€followed€President€Clintonððs€October€6,€1995€announcement€of€theÏeasing€of€restrictions€on€high€performance€computers.€€The€rule€benefits€the€internationalÏcompetitiveness€of€the€U.S.€computer€industry€and€affects€an€estimated€$10€billion€in€exports.ÌÌà  àOn€December€20,€1995,€BXA€expanded€general€license€ñ€ñœñ€ñGLXñ€ñ›ñ€ñ€treatment€to€semiconductorÏdevices€(integrated€circuits),€certain€semiconductor€manufacturing€equipment,€certain€cellularÏphones€containing€encryption,€and€encrypted€virus€protection€software€programs.€€Industry€hasÏestimated€that€139€billion€semiconductors€and€33€billion€integrated€circuits€were€sold€worldwideÏin€1992.€€Less€than€one„third€of€these€were€produced€by€U.S.„owned€firms.€€Industry€believes€thatÏthe€availability€of€general€license€shipments€for€integrated€circuits€will€significantly€improve€theÏglobal€competitiveness€of€the€U.S.€semiconductor€industry.ÌÌà  àOn€March€25,€1996,€BXA€implemented€a€new€licensing€mechanism,€the€SpecialÏComprehensive€License,€that€will€enhance€the€flexibility€and€competitiveness€of€U.S.€internationalÏmarketing€operations.€This€new€licensing€option€permits€experienced,€high„volume€exporters€toÏperform€export€activities€under€one€license€authorization.€ÌÌà  àOn€February€1,€1996,€BXA€published€an€interim€rule€amending€a€number€of€ExportÏControl€Classification€Numbers€(ñ€ñœñ€ñECCNsñ€ñ›ñ€ñ)€on€the€Commerce€Control€List€in€order€to€make€theÏNuclear€Referral€List€conform€more€closely€with€the€items€contained€in€the€Nuclear€SuppliersÏGroup€(NSG)€Annex€published€by€the€International€Atomic€Energy€Agency.€€The€NSG€Annex€isÏadhered€to€by€the€United€States€and€other€subscribing€governments€in€the€NSG.€€This€regulationÏalso€made€Poland,€Argentina,€New€Zealand,€South€Africa€and€South€Korea€eligible€for€generalÏlicense€shipments€of€certain€nuclear€controlled€goods€to€reflect€their€recent€membership€in€theÏNSG.ÌÌà  àOn€March€25,€1996,€BXA€updated€the€list€of€controlled€biolñzññyñiñyññzññ{ñogical€ñ{ññ|ñBiological€Control€Listñ|ññ~ññ}ñutñ}ññ~ñññitemsññ€for€the€first€timeÏin€three€years.€€These€changes€included€implementing€new€nomenclatures€for€several€pathogens,Ìmodifying€the€wording€and€clarification€of€terms€for€biological€items,€liberalizing€export€controlsÏon€vaccines€and€ñ€ñœñ€ñimmunotoxinsñ€ñ›ñ€ñ,€and€revising€technical€parameters€for€ñ€ñœñ€ñfermentersñ€ñ›ñ€ñ,€cross„flowÏfiltration€equipment,€and€chambers.€ÌÌà  àOctober€19,€1995,€BXA€issued€the€final€rule€to€implement€the€Australia€Group's€(AG)Ïthree„tiered€approach€to€chemical€mixtures€containing€an€AG„controlled€chemical€weapon€(CW)Ïprecursor.€€This€regulation€provided€relief€to€the€chemical€industry€from€the€previous€zeroÏtolerance€for€chemical€mixtures.€€An€exporter€can€now€export€these€types€of€mixtures€under€aÏLicense€Exception€to€most€destinations€if€it€meets€the€de€minimis€threshold€concentration€on€aÏsolvent„free€basis.€€It€also€streamlined€controls€and€reporting€requirements€on€sample€chemicalÏshipments.€€Ð  )à$( ÐÌò òÓ  ÓCommodity€Jurisdictionó óÐ œì ÐÓ'ÓÌà  àBXA€continues€to€make€progress€in€the€transfer€of€nonmilitary€items€from€the€StateÏDepartmentððs€Munitions€List€to€the€Commerce€Control€List.€€This€effort€ensures€that€U.S.Ïexporters€of€such€items€are€not€unduly€burdened€by€overly€restrictive€licensing€policies€andÏreceive€the€appropriate€consideration.€€The€following€are€highlights€of€this€initiative.òòÐ 8 ˆ ÐÌCommunications€Satellites€and€Hot€Section€TechnologyóóÐ  ` ÐÌà  àOn€October€21,€1996,€the€Administration€transferred€jurisdiction€on€certain€commercialÏcommunications€satellites€and€certain€hot€section€technology€for€the€development€and€productionÏof€commercial€aircraft€engines€from€the€U.S.€Munitions€List,€administered€by€the€StateÏDepartment,€to€the€Commerce€Control€List.€€This€rule€also€expands€national€security€and€foreignÏpolicy€controls€on€commercial€communications€satellites€and€hot€section€technology€forÏdevelopment,€production€or€overhaul€of€commercial€aircraft€engines€and€will€clarify€theÏjurisdiction€for€developmental€aircraft€designed€for€civil€use.ÌÌòòEncryptionóóÐ H˜ ÐÌà  àOn€December€30,€1996,€BXA€issued€a€regulation€implementing€the€AdministrationððsÏencryption€policy€announced€by€the€Vice€President€on€October€1,€1996.€Key€elements€of€theÏregulation€include€the€transfer€of€commercial€encryption€items€from€the€U.S.€Munitions€List€to€theÏCommerce€Control€List,€liberalized€treatment€for€recoverable€products€and€a€two-year€transitionÏperiod€during€which€non-key€recovery€56€bit€DES€or€equivalent€strength€encryption€products€mayÏbe€approved€for€export€based€on€company€commitments€to€build€and€market€key€recoveryÏproducts€and€to€support€a€key€management€infrastructure€for€electronic€commerce.ÌÌòòDispute€ResolutionóóÐ €Ð ÐÌà  àIn€FY€1996,€the€Administration€completed€its€efforts€to€develop€an€efficient€andÏtransparent€process€to€resolve€disputes€between€the€Departments€of€Commerce€and€State€as€toÏwhich€agency€has€licensing€jurisdiction€over€specific€commodities.€€These€new€commodityÏjurisdiction€procedures€were€implemented€in€the€spring€of€1996.€ÌÌÓ  Óò òEnhanced€Economic€Analysis€for€Export€Controlsó óÐ ô$D # ÐÓ·/ÓÌà  àThe€Department€of€Commerce€continues€its€efforts€to€analyze€the€economic€implicationsÏof€export€control€regulations€and€policy€options€on€U.S.€industry.€€This€includes€analyses€of€theÏeconomic€implications€of€controversial€license€applications€headed€for€possible€denial,€impositionÏor€extension€of€embargoes/sanctions,€costs€of€maintaining€existing€controls€on€theÏœññÐ  )à$( Ðññcompetitiveness›€of€a€critical€industry,€and€list€reviews€for€each€multilateral€control€regime.€€In€œñ‚ñÐ  |*Ì%) Ðñ‚ññƒñ›ÌñƒñFY›€1996,€BXA€conducted€economic€impact€studies€on€a€number€of€critical€export€control€issuesÏincluding€potential€export€control€liberalization€for€encryption€products€and€reviewing€the€scopeÏand€international€competitiveness€of€the€U.S.€biotechnology€and€pharmaceutical€industries.€ò òÐ ˆØ ÐÌÓ  ÓMultilateral€Control€System€Participationó óÐ `° ÐÓ{3ÓÌà  àThe€Administration€has€sought€to€level€the€playing€field€for€U.S.€trade€and€enhance€theÏeffectiveness€of€controls€by€pursuing€multilateral€controls€and€harmonizing€their€implementation.ÏWe€have€undertaken€several€major€initiatives€to€strengthen€the€multilateral€export€control€regimes,Ïwhich,€in€turn,€will€enhance€U.S.€exportersðð€ability€to€engage€in€legitimate€trade€and€competeÏworldwide.ÌÌà  àOn€July€12,€1996,€representatives€of€33€countries€agreed€to€establish€the€WassenaarÏArrangement€on€Export€Controls€for€Conventional€Arms€and€Dual„Use€Goods€and€Technologies.€ÏThe€Wassenaar€Arrangement€is€the€successor€regime€to€the€Coordinating€Committee€(COCOM),Ïwhich€was€disbanded€in€March,€1994.€€The€focus€of€the€regime€is€on€transparency€in€exports€ofÏarms€and€sensitive€dual€use€equipment.€€The€United€States€intends€to€work€with€regime€membersÏto€further€develop€the€regime€by€focusing€on€specific€regions€of€concern,€controlling€additionalÏproducts€to€countries€of€concern,€expanding€transparency€and€harmonizing€national€practices.ÌÌà  àIn€FY€1996,€BXA€revised€the€Nuclear€Suppliers€Group€control€list€to€eliminate€outdatedÏcontrols,€clarify€the€language€controlling€items€to€better€reflect€nuclear€proliferation€concerns,€andÏminimize€the€differences€in€interpretation€among€NSG€members.€€ÌÌà  àBXA€also€completed€the€harmonization€of€the€U.S.€control€lists€with€European€UnionÏ(EU)€control€lists.€€By€conforming€the€numbering€system€used€to€identify€items€controlled€by€theÏEAR€with€the€numbering€system€used€by€the€EU€to€identify€such€items,€U.S.€exporters€are€betterÏable€to€streamline€and€standardize€their€own€internal€export€control€procedures.€€TheÏAdministration€will€continue€its€efforts€to€encourage€other€countries€to€adopt€a€uniformÏnumbering€system.ÌÌÓ  Óò òAlaskan€North€Slope€(ANS)€Crude€Oil€Exports€€ó óÐ D!” ÐÓì:ÓÌà  àDuring€FY€1996,€BXA€chaired€an€interagency€review€of€the€economic€and€environmentalÏeffects€of€lifting€the€ban€on€the€export€of€Alaskan€North€Slope€oil.€€The€President€used€this€reviewÏas€the€basis€for€his€decision€that€ANS€oil€exports€are€in€the€national€interest.€€On€May€31,€1996,ÏBXA€established€License€Exception€Trans„Alaska€Pipeline€(TAPS)€which€allows€for€exports€ofÏANS€crude€oil€under€certain€conditions.€€This€trade€liberalization€measure€provides€U.S.€exportersÏwith€the€opportunity€to€develop€a€$500€million€annual€foreign€market€for€ANS€crude€oil.ÌÌÓ  Óò òÐ  )à$( ÐOffsets€in€Defense€Tradeó óÐ ° ÐÓ=ÓÌà  àDuring€FY€1996,€BXA€completed€the€first€Department€of€Commerce€ð ðOffsets€in€DefenseÏTradeðð€report€for€the€Congress€under€Section€309€of€the€Defense€Production€Act€of€1950,€asÏamended.€€This€report€provides€detailed€information€and€analysis€on€new€offset€agreements€andÏoffset€transactions€fulfilled€by€U.S.€defense€prime€contractors€during€1993€and€1994.€€There€hasÏlong€been€concern€that€offset€practices€may€be€detrimental€to€the€United€States€defense€industrialÏbase.€€ÌÌà  àThe€1996€TPCC€report€has€outlined€a€policy€on€defense€offsets€that€will€help€address€theÏcompetitiveness€issues€that€arise€when€U.S.€companies€are€required€either€to€subcontract€largeÏportions€of€follow„on€work€or€to€transfer€technology€in€order€to€win€critical€contracts.€€BXA€willÏplay€a€leading€role€in€addressing€these€offset€issues.ÌÌÓ  Óò òDefense€Trade€AdvocacyÐ ˜è  Ðó óÓ?AÓÌà  àAs€part€of€the€Department€of€Commerceððs€role€in€defense€advocacy€and€support€for€U.S.Ïindustry€impacted€by€defense€downsizing,€BXA€continued€to€work€with€the€interagencyÏcommunity€on€defense€advocacy€issues.€€BXA€coordinates€its€efforts€with€the€Trade€PromotionÏCoordinating€Committee€and€the€International€Trade€Administrationððs€Advocacy€Center.€€OurÏdefense€advocacy€efforts€resulted€in€sales€of€$4„5€billion€in€FY€1996.€€These€successes€include€theÏ$325€million€Kuwait€National€Guard€armor€personnel€carrier€competition€and€$500€million€fighterÏaircraft€competition€in€Thailand.ÌÌÓ  Óò òU.S.€Defense€DiversificationÐ Ð  Ðó óÓæCÓÌà  àDuring€FY€1996,€BXA€continued€to€implement€our€U.S.€defense€diversification€programsÏto€provide€assistance€to€the€defense€industry,€which€has€been€negatively€impacted€by€defenseÏdownsizing.€€Our€Resource€Matching€Program€offers€a€series€of€workshops€designed€to€provide€aÏvariety€of€defense€export€and€manufacturing€information€to€small€and€medium€size€defense€firms.ÏOur€Competitive€Enhancement€and€Needs€Assessment€Program€targets€defense€subcontractors€toÏdetermine€those€government€services€that€would€be€most€useful€to€firms€diversifying€theirÏoperations.ÌÌà  àBXA€also€began€a€new€series€of€conferences€entitled€ð ðCommercialization€in€DefenseÏTechnology,ðð€which€are€designed€to€help€small€and€medium€size€companies€take€advantage€ofÏemerging€and€existing€technologies.ÌÌÓ  Óò òEnhanced€Proliferation€Control€InitiativeÐ ¸'#& Ðó óÓ[GÓÌà  àIn€FY€1996,€BXA€continued€its€ongoing€effort€to€clarify€the€ð ðcatch„allðð€provisions€of€theÏEnhanced€Proliferation€Control€Initiative€(EPCI),€by€developing€a€comprehensive€proposal€toÏstreamline€and€better€focus€the€existing€process.€€The€revised€EAR€accomplished€one€step€byÐ h+¸&* Ðdefining€ð ðknowledgeðð€of€end„use€or€end„user€that€triggers€a€licensing€requirement.€€ImprovingÏEPCI€will€positively€affect€U.S.€nuclear,€chemical/biological,€and€missile€non„proliferation€effortsÏand€will€reduce€uncertainty€among€U.S.€exporters€regarding€export€controls.ÌÌà  àOn€December€10,€1996,€the€National€Security€Council€(NSC)€reformed€the€"inform€by"Ïprocess€under€EPCI€by€placing€it€within€the€interagency€review€structure€for€export€licenses.€€ThisÏinitiative,€which€was€proposed€by€Commerce,€will€improve€the€transparency€and€timeliness€of€theÏ"informed€by"€process.ÌÌà@ÌÌ"ìàò òIndustry€Outreachó óˆÐ ü L  ÐÌà  àBXAððs€Office€of€Exporter€Servicesðð€Exporter€Counseling€Division,€Export€Seminar€StaffÏand€Western€Regional€Offices€located€in€Irvine€and€Santa€Clara,€California€continued€to€conductÏextensive€outreach€and€counseling€services€during€FY€1996.€€These€offices€advised€industry€andÏconducted€seminars€on€export€control€and€defense€conversion€issues.€€With€the€publication€of€theÏnew€Export€Administration€Regulations,€BXA€undertook€a€significant€outreach€effort€to€educateÏthe€exporting€community.€€BXA€developed€comprehensive€ð ðRegulations€Roll„Outðð€seminarsÏwhich€were€held€throughout€the€United€States.€€ÌÌà  àDuring€FY€1996,€BXA€responded€to€over€173,000€telephone€calls,€directly€counseled€overÏ1,268€visitors€in€its€offices,€and€organized€or€participated€in€seminars€attended€by€over€5,700Ïparticipants.€€In€October€1996,€BXAððs€Santa€Clara€office€co„located€with€new€U.S.€ExportÏAssistance€Center€in€San€Jose,€California€which€provides€a€true€"One„Stop„Shopðð€for€small€andÏmedium€sized€business€seeking€international€trade€and€finance€information.ÌÌÓ  Óò òImprovements€in€Electronic€Licensing€Systemó óÐ ¼  ÐÓÄOÓÌà  àBXA€continues€to€make€improvements€in€the€technical€capabilities€of€its€export€licenseÏsystem.€€In€FY€1996,€the€Bureau€introduced€a€PC„based€forms€processing€and€image€managementÏsystem€which,€along€with€the€new€multipurpose€application€form,€enhances€BXAððs€ability€to€makeÏquick€and€accurate€licensing€and€commodity€classification€decisions.€€BXA€is€also€developing€anÏautomated€database€which€will€provide€an€electronic€image€of€all€export€requests€andÏdocumentation€as€a€replacement€to€an€outdated€microfiche€system.€€Finally,€the€Bureau€willÏundertake€a€comprehensive€review€of€the€export€control€automated€support€system€to€determineÏchanging€needs€and€requirements€for€the€21st€Century.€€ÌÌò òà@ìàBXAððs€World€Wide€Web€Siteó óˆÐ à%0!$ ÐÌà  àIn€September€1996,€BXA€launched€a€BXA€World€Wide€Web€Page€on€the€Internet.€€InÏdeveloping€the€site,€BXA€recognized€that€this€new€avenue€of€information€sharing€offers€an€uniqueÏmeans€to€reach€the€international€business€community.€€With€a€World€Wide€Web€presence€on€theÏInternet,€BXA€can€provide€guidance€on€a€wide€range€of€topics€of€interest€to€both€establishedÏexporters€and€those€new€to€exporting.€Ð h+¸&* Їà  àCustomers€accessing€the€site€will€find€export€fact€sheets,€information€on€BXAððs€programs,Ïweekly€highlights,€information€on€seminars,€press€releases,€links€to€other€government€exportÏresources,€and€many€other€topics€of€interest.€€Response€to€the€Web€Page€has€been€positive,€andÏBXA€continues€to€explore€ways€to€develop€the€site€and€offer€additional€electronic€services.€Ìà  àÌÓ  Óò òIndustrial€Capability€Assessmentsó óÐ L œ ÐÓyVÓÌà  àBXA€worked€on€two€major€industrial€capabilities€research€projects€during€FY€1996.€€AÏmajor€project€in€its€final€stage€of€completion€is€an€assessment€of€the€capabilities€andÏcompetitiveness€of€domestic€supplier€industries€to€the€U.S.€semiconductor€industry.€€The€goal€ofÏthis€assessment€is€to€ensure€that€the€domestic€suppliers€are€able€to€meet€the€needs€projected€in€theÏsemiconductor€industryððs€National€Technology€ñ€ñœñ€ñRoadmapñ€ñ›ñ€ñ€for€Semiconductors€during€the€nextÏfifteen€years.€€BXA€also€initiated€an€assessment€of€the€future€viability€of€the€ejection€seat€industrialÏbase€at€the€request€of€the€Air€Force.€ÌÌò òÔ‡¼nn¼XXegÔ3.€Export€Administration€OrganizationÔ#†XegX¼¼nnVY#Ôó óÔ‡¼nn¼XXegÔÐ „Ô  ÐÌÔ#†XegX¼¼nnÀY#Ôà  àBXAððs€Export€Administration€(EA)€comprises€five€offices.€€Three€EA€offices€deal€with€aÐ ¬ü Ðwide€range€of€export€control€policy€and€licensing€activities€including:€€nuclear€and€missileÏtechnologies;€chemical€and€biological€technologies;€and€conventional€arms,€certain€sensitiveÏtechnologies€and€foreign€policy€controls.€€EA€also€has€an€office€which€focuses€on€strategicÏindustries€and€economic€security€issues,€and€an€office€which€focuses€on€EAððs€education€andÏcompliance€responsibilities.€€This€organizational€structure€allows€BXA€to€formulate€andÏimplement€timely€policy€changes,€undertake€quality€analysis€of€licensing€decisions,€focus€on€issuesÏof€international€competitiveness,€and€provide€increased€customer€service.ÌÌà  àThe€Office€of€Strategic€Trade€and€Foreign€Policy€Controls€(ñ€ñœñ€ñSTFPCñ€ñ›ñ€ñ)€is€responsible€forÏimplementing€the€multilateral€export€controls€under€the€Wassenaar€Arrangement,€which€deals€withÏconventional€arms€and€related€dual-use€items.€It€also€implements€U.S.€foreign€policy€controls€suchÏas€crime€control,€anti„terrorism,€and€regional€stability.Ì€Ìà  àThe€Office€of€Nuclear€and€Missile€Technology€Controls€(ñ€ñœñ€ñNMTñ€ñ›ñ€ñ)is€responsible€for€allÏexport€control€policy€issues€relating€to€the€Nuclear€Suppliers€Group€and€Missile€TechnologyÏControl€Regime.€€It€also€has€responsibilities€associated€with€the€licensing€of€exports€controlled€forÏnuclear€or€missile€technology€reasons.ÌÌà  àThe€Office€of€Chemical€and€Biological€Controls€and€Treaty€Compliance€(ñ€ñœñ€ñCBCTCñ€ñ›ñ€ñ)€hasÏoverall€responsibility€for€administering€export€controls€and€policy€developments€related€to€theÏmultilateral€Australia€Group€control€regime€(e.g.€chemical€precursors€and€biological€agents).€€ThisÏoffice€is€the€principal€point€of€contact€for€U.S.€industrial€interests€in€the€development€of€a€legallyÏbinding€protocol€to€the€Biological€and€Toxin€Weapons€Convention€and€for€the€proposed€ChemicalÏWeapons€Convention.̀Р¸+'* Ðà  àThe€Office€of€Strategic€Industries€and€Economic€Security€(SIES)€implements€programs€toÏensure€the€U.S.€defense€industries€can€meet€current€and€future€national€security€requirements.€€ItÏalso€facilitates€diversification€of€U.S.€defense€related€industries€into€civilian€markets,€promotes€theÏconversion€of€military€enterprises€in€the€New€Independent€States€to€civilian€applications,€andÏanalyzes€the€economic€impact€of€U.S.€export€controls,€other€trade€policies,€and€cooperativeÏinternational€defense€agreements€on€U.S.€industrial€competitiveness.ÌÌà  àThe€Office€of€Exporter€Services€(OExS)€counsels€exporters,€conducts€export€controlÏseminars,€and€drafts€and€publishes€changes€to€the€Export€Administration€Regulations.€€The€officeÏis€responsible€for€licensing€and€compliance€actions€related€to€ð ðspecial€comprehensive€licenses.ðð€€ItÏalso€processes€license€applications€and€commodity€classifications.ÌÌÔ‡¼nn¼XXegÔò ò4.€Technical€Advisory€Committeesó óÔ#†XegX¼¼nn¥e#ÔÐ À  ÐÌà  àThe€Technical€Advisory€Committees€(ñ€ñœñ€ñTACsñ€ñ›ñ€ñ)€have€been€chartered€pursuant€to€statute€sinceÏ1973€to€provide€advice€and€assistance€from€U.S.€industry€regarding€the€creation€andÏimplementation€of€export€control€policy.€€The€ñ€ñœñ€ñTACsñ€ñ›ñ€ñ€advise€the€Department€of€Commerce€onÏproposed€revisions€to€the€U.S.€and€international€export€control€lists,€on€worldwide€availability€andÏutilization€of€production€technology,€and€on€export€control€regulations€and€procedures.ÌÌà  àDuring€FY€1996,€the€Committees€addressed€more€fully€the€technical€issues€regardingÏnonproliferation€controls€and€foreign€policy€controls.€€The€changing€technical€needs€of€BXA€andÏthe€expanding€role€in€these€areas€for€BXA€are€the€reasons€for€its€increased€reliance€on€the€ñ€ñœñ€ñTACsñ€ñ›ñ€ñÏfor€technical€input€in€these€two€crucial€areas.€€€ÌÌà@ððìàò òFY€1996€TAC€Activitiesó óˆÐ ä4 ÐÌà  àThe€Information€Systems€Technical€Advisory€Committee€(ñ€ñœñ€ñISTACñ€ñ›ñ€ñ)€addressed€issuesÏrelating€to€Control€List€Categories€3,€4,€and€5.€€The€ñ€ñœñ€ñISTACñ€ñ›ñ€ñ's€recommendations€reflected€theÏanalyses€done€by€its€ad€hoc€working€groups,€which€addressed€export€controls€as€they€relate€to€theÏtopics€of€computer€interconnect€technology,€cryptography€metrics,€input/output€interface€trends,Ïmeasurement€of€aggregate€performance,€and€the€3„D€graphics€limit.ÌÌà  àThe€Materials€Technical€Advisory€Committee€(ñ€ñœñ€ñMTACñ€ñ›ñ€ñ)€reviewed€proposals€regardingÏControl€List€Category€1.€€The€status€of€various€export€control€regimes€was€reviewed€byÏCommerce€representatives€and€discussed€with€members€of€the€Committee.€€The€ñ€ñœñ€ñMTACñ€ñ›ñ€ñ€addressedÏthe€following€issues:€the€definition€of€"reaction€vessel"€in€ñ€ñœñ€ñCCLñ€ñ›ñ€ñ€ñ€ñœñ€ñ1B70E.a.1.añ€ñ›ñ€ñ,€the€meaning€ofÏ"disposal€technology"€for€precursors€and€equipment€in€ñ€ñœñ€ñCCLñ€ñ›ñ€ñ€ñ€ñœñ€ñ1E60Cñ€ñ›ñ€ñ;€consideration€of€lists€ofÏpathogens€that€may€be€used€in€conjunction€with€the€Biological€and€Toxin€Weapons€Convention,Ïthe€appropriateness€and€validity€of€sampling€techniques€for€biological€weapons€challengeÏinspections,€the€parameters€of€propriety€information,€and€equipment€or€processes€indicative€ofÏbiological€Ð  ¤*ô%) Ðweapons€capability€or€activity.€€The€ñ€ñœñ€ñMTACñ€ñ›ñ€ñ€plans€to€continue€advising€on€the€Chemical€WeaponsÏConvention€and€The€Biological€and€Toxin€Weapons€Convention,€the€Wassenaar€Arrangement,€theÏMissile€Technology€Regime,€and€the€Nuclear€Suppliers€Group.€€ÌÌà  àThe€Materials€Processing€Equipment€Technical€Advisory€Committee€(ñ€ñœñ€ñMPETACñ€ñ›ñ€ñ)Ïcontinued€to€make€recommendations€regarding€Control€List€Category€2€changes,€includingÏadvising€on€the€wording€within€Technical€Note€4,€paragraph€2.B€on€the€stated€accuracy€levels€forÏmachine€tools€and€on€the€wording€regarding€the€intent€of€the€€software€note€for€paragraphÏ2.ñ€ñœñ€ñD.2.a.ñ€ñ›ñ€ñ€€The€ñ€ñœñ€ñMPETACñ€ñ›ñ€ñ€also€made€recommendations€on€machine€tool€controls€as€they€relate€toÏthe€Nuclear€Suppliers€Group€and€the€Wassenaar€Arrangement.€€Ìà@ìì*ìàˆÌà  àThe€Regulations€and€Procedures€Technical€Advisory€Committee€(ñ€ñœñ€ñRPTACñ€ñ›ñ€ñ)€broadened€itsÏfocus,€examining€issues€that€included€the€following:€changing€conditions€under€the€ExecutiveÏOrder€on€license€processing,€cryptography€controls,€screening€requirements€for€exporters,€and€theÏdisclosure€of€trade€secrets€to€foreign€nationals.€€The€ñ€ñœñ€ñRPTACñ€ñ›ñ€ñ€continued€deliberating€and€advisingÏon€the€Automated€Export€System€(Customs€Service),€the€Enhanced€Proliferation€ControlÏInitiative,€and€revisions€to€the€Export€Administration€Regulations.€ÌÌà  àThe€Sensors€and€Instrumentation€Technical€Advisory€Committee€(SITAC),€formerly€theÏSensors€Technical€Advisory€Committee,€supported€revisions€to€Control€List€Categories€3€and€6.€ÏAmong€the€issues€the€SITAC€addressed€were€the€following:€export€controls€on€oscilloscopes€toÏcountries€outside€the€Nuclear€Suppliers€Group,€the€Executive€Order€on€license€processing,Ïcommodity€jurisdiction€of€night€vision€equipment,€and€implementation€of€the€WassenaarÏArrangement.€ÌÌà  àThe€Transportation€and€Related€Equipment€Technical€Advisory€Committee€(TransTAC)Ïadvised€the€Department€regarding€commodities€and€technical€data€within€Control€List€CategoriesÏ7,€8,€and€9.€€Among€the€issues€the€TransTAC€reviewed€were€the€following:€key€sector€itemsÏwithin€the€Wassenaar€Arrangement,€hot€section€technology,€developmental€aircraft€andÏcommercial€communications€satellites,€and€foreign€policy€export€controls.€€The€TransTAC€alsoÏsupplied€definitions€that€were€used€in€the€final€ruling€on€jurisdiction€of€developmental€aircraft;Ïamong€those€were€terms€regarding€hot€section€technology,€terms€regarding€civil€derivativeÏengines€of€military€cores,€and€the€meaning€of€"predominantly€DoD€funded."€ÌÌà@ppìàò òPresident's€Export€Counciló óˆÐ $X" Ðà@ž ž ìàSubcommittee€on€Export€AdministrationˆÌÌà  àThe€President's€Export€Council€Subcommittee€on€Export€Administration€(PECSEA)Ïcontinued€to€deliberate€within€the€structure€of€its€five€task€forces,€which€are€the€following:ÏUnilateral€Economic€Sanctions,€Enhanced€Proliferation€Control€Initiative€(EPCI),€Principles€ofÏExporting,€Technology€Advance,€and€Commodity€Jurisdiction.€€Among€the€documents€generatedÏby€the€PECSEA€and€circulated€within€the€Administration€were€a€document€on€unilateral€economicÏsanctions€and€a€letter€on€the€issues€surrounding€products€and€services€using€encryptionÐ h+¸&* Ðtechnology.€€The€PECSEA€prepared€a€draft€of€its€Statement€of€Principles€paper,€which€wasÏforwarded€to€the€President's€Export€Council€for€comments.€€The€Subcommittee€will€continue€toÏadvise€on€jurisdictional€issues,€such€as€that€for€temporary€export€licenses.