Where Industry and Security Intersect
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In 1993, the President directed the transfer of certain goods and technologies to the Commerce Control List (CCL) from the Department of State's United States Munitions List (USML). The United States controls many of these items for regional stability purposes. This control has traditionally covered items specially designed or modified for military purposes and certain dual-use commodities that can be used to manufacture military equipment.
The United States requires a license for foreign policy purposes to export military items (e.g. certain vehicles and trainer aircraft) and certain commodities used to manufacture military equipment to all destinations except member nations of the North Atlantic Treaty Organization (NATO), Australia, Japan and New Zealand. The United States will generally consider applications for such licenses favorably, on a case-by-case basis, unless the export would significantly damage regional stability.
Other items formerly on the USML that have been transferred to the Commerce Control List include certain image intensifier tubes, infrared focal plane arrays, certain navigation systems software and technology for inertial navigation systems, gyroscopes and accelerometers. For these items, the United States requires a license to all destinations except Canada. The United States reviews all license applications for these items on a case-by-case basis to determine whether the export could contribute, directly or indirectly, to a country's military capabilities in a manner that would destabilize or alter a region's military balance contrary to the foreign policy interests of the United States.
This control provides a mechanism for the United States to monitor the export of these items in order to restrict their use in instances that would adversely affect regional stability or the military balance within a region.
1. Probability of Achieving the Intended Foreign Policy Purpose. This control contributes to U.S. national security and foreign policy objectives by enabling the United States to restrict the use or availability of certain U.S.-origin sensitive goods and technologies that would adversely affect regional stability or the military balance in certain areas.
2. Compatibility with Foreign Policy Objectives. This control is consistent with U.S. foreign policy goals, including promoting peace and stability and preventing U.S. exports that might contribute to weapons production or military capabilities in areas of concern.
3. Reaction of Other Countries. A number of other countries limit exports of items and technologies with military applications to areas of concern, recognizing that such equipment could adversely affect regional stability and the military balance. For example, the United States and other member countries of the Wassenaar Arrangement each have their own national controls on the export of night vision devices. Additionally, all members of the Missile Technology Control Regime (MTCR) maintain controls on software and technology related to missile guidance and control devices.
4. Economic Impact on United States Industry. Items controlled for purposes of regional stability generally require a validated license for export to all destinations except NATO countries, Australia, Japan, and New Zealand, although certain regional stability items, including those controlled for missile technology reasons, require a validated license to all destinations except Canada.
In FY 2000, the Department of Commerce approved 829 license applications for regional stability items, with a total value of $138,922,791. Eleven applications for these items were denied, with a total value of $299,088. In addition, the Department of Commerce returned without action (RWAd) 87 applications for regional stability items, having a total value of $22,376,308; most of these license applications were RWAd because of commodity jurisdiction issues and insufficient end user or end use information.
The table below lists the total number and value (by ECCN) of export licenses that BXA issued for regional stability items during FY 2000.
ECCN |
Description |
Number of Applications |
Dollar Value |
9A018 |
Military trainer aircraft & vehicles designed or modified for military use |
214 |
$78,751,443 |
6A002 |
Optical detectors & direct view imaging equipment incorporating image intensifier tubes or focal plane arrays |
86 |
$13,740,577 |
6A003 |
Imaging cameras incorporating image intensifiers or focal plane arrays |
522 |
$46,429,765 |
7D001 |
Software for the development or production of equipment in 7A/7B |
0 |
$0 |
7E001 |
Technology for the development of items in 7A/7B/7D |
2 |
$0 |
7E002 |
Technology for the production of items in 7A/7B |
2 |
$6 |
7E101 |
Technology for the use of items in 7A/7B/7D |
3 |
$1,000 |
1B018.a |
Equipment for the production of military explosives and solid propellants |
0 |
$0 |
TOTAL |
|
829 |
$138,922,791 |
NOTE: The number of sub-categories under each ECCN that are not controlled for regional stability reasons is insignificant and is not reflected in this data.
5. Enforcement of Control. Image intensifier tubes, infrared focal plane arrays, certain navigation systems software and technology for inertial navigation systems, gyroscopes and accelerometers and other items controlled for regional stability purposes are almost all subject to multilateral controls for either national security or missile technology reasons. The multilateral nature of these controls aids in enforcement.
The Department of Commerce consulted with industry during the 1993 transfer of certain United States Munitions List ("USML") items from the Department of State's to the Department of Commerce's licensing jurisdiction. Issues regarding the licensing jurisdiction of dual-use night vision equipment have resurfaced in the past year. The Department of Commerce met with industry during the course of this year to discuss night vision product uses and capabilities and to attempt to define a distinction between commercial equipment and munitions items in an effort to clarify the appropriate licensing jurisdiction for these items. Industry input received during this process supports the transfer of these items to Commerce control and encourages continued transfers. The inability of the agencies to resolve the night vision jurisdictional issue resulted in an escalation of the issue to the National Security Council in December 2000.
On November 6, 2000, the Department of Commerce, via the Federal Register and via BXA's web page, solicited comments from industry on the effectiveness of foreign policy-based export controls. A more detailed review of the comments is available in Appendix I.
The Sensors and Instrumentation Technical Advisory Committee (SITAC), in a letter submitted to the Department of Commerce during the comment period, advocated the movement of Category 6 items (namely 6A002, 6A003 and 6E002, all related to commercial night vision and thermal imaging equipment) from Regional Stability (RS) Column 1 (which precludes exports to all countries except Canada) to RS Column 2 (which allows exports to Canada, most EU members and Japan, among others.) According to SITAC, this change would allow U.S. companies to compete with countries who are developing their own domestic technology in this area, as well as allow the United States to more efficiently focus export control resources on areas of true regional stability concern.
The Wassenaar Arrangement on Conventional Arms and Dual-Use Goods and Technologies, signed by the United States and 32 other countries in 1996, controls certain items the United States also controls for regional stability purposes. Each member state (see Appendix II for complete list of regime members) has agreed to incorporate the Wassenaar Dual-Use Control List into its own national control lists to prevent exports that could contribute to destabilizing buildups of conventional arms. In addition, each member state of the Missile Technology Control Regime (MTCR) incorporates the MTCR control list into its own national control lists.
The United States has undertaken a wide range of actions to support and encourage regional stability and has specifically encouraged efforts to limit the flow of arms and militarily-useful goods to regions of conflict and tension.
Military vehicles and other military-type equipment that are controlled for regional stability purposes may be obtained from numerous foreign sources. Nearly all commodities and related software and technology controlled for regional stability purposes are also subject to multilateral controls for either national security or missile technology reasons under multilateral regimes.