Where Industry and Security Intersect
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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. Items controlled for “significant items” reasons are 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, in light of other factors, including foreign availability from other countries and that the foreign policy purpose has been partially achieved through negotiations on export controls with the participating states of the Wassenaar Arrangement.
2. Compatibility with Foreign Policy Objectives. The Secretary has determined that these controls are compatible with U.S. foreign policy objectives and will not have any significant adverse foreign policy consequences with the extension of these controls. 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 nor will any adverse reaction by other countries be counter-productive to U.S. foreign policy interests. “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 U.S. foreign policy objectives. In FY 2003, the Department of Commerce approved 128 licenses for technology controlled under ECCN 9E003. Of the 128 licenses approved, most licenses involved “hot section” technology. The total dollar value of the approvals was $10.3 million. One application, involving the transfer of engine “hot section” technology to a foreign national employed in the United States, was denied. Additionally, 18 applications were returned without action.
5. Effective Enforcement of Control. The Secretary has determined that 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 there are no major changes envisioned to controls on the CCL.
In a October 21, 2003, Federal Register notice, the Department of Commerce
solicited comments from industry on the effectiveness of U.S. foreign policy-based
export controls. Comments were solicited from all six of the Department’s
Technical Advisory Committees (TACs), which advise BIS, as well as from
the President’s Export Council Subcommittee on Export Administration.
Comments also were solicited from the public via the BIS webpage. The comment
period closed on November 21, 2003, and eight comments were received.
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, and has been successful in reaching multilateral agreement (in the Wassenaar Arrangement) to control 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. However, these efforts do not replace the continued need for the controls.
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. The commitment of the U.S. Government and its Wassenaar partners to maintain controls reflects the cooperation among governments to control foreign availability.
