Where Industry and Security Intersect
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Regional stability (RS) controls ensure that exports and reexports of controlled items do not contribute to the destabilization of the region to which the items are destined. These controls traditionally cover items specially designed or modified for military purposes and certain dual-use commodities that can be used to manufacture military equipment.
Section 742.6 of the Export Administration Regulations (EAR) requires a license for RS reasons to export certain image-intensifier tubes, infrared focal plane arrays, as well as certain software and technology for inertial navigation systems, gyroscopes, and accelerometers, to all destinations except Canada . The U.S. Government 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 U.S. foreign policy interests.
Section 742.6 of the EAR also requires a license for RS reasons to export explosive detection equipment and related software and technology, military-related items (e.g., certain vehicles and trainer aircraft), and certain commodities used to manufacture military equipment to all destinations except member nations of NATO, Australia , Japan , and New Zealand . The U.S. Government will generally consider applications for such licenses favorably, on a case-by-case basis, unless the export would significantly affect regional stability.
On August 31, 2006 , the Department of Commerce published in the Federal Register an amendment to the EAR implementing the U.S. Government’s decision to rescind Iraq ’s designation as a state sponsor of terrorism (71 FR 51714). As a result of the changes described in this rule, eight items on the CCL previously controlled for AT reasons only now require a license for export or reexport to Iraq , or transfer within Iraq , for RS reasons only. The eight entries are: export control classification number (ECCN) 0B999 (specific processing equipment such as hot cells and glove boxes suitable for use with radioactive materials), ECCN 0D999 (specific software for neutronic calculations, radiation transport calculations, and hydrodynamic calculations/modeling), ECCN 1B999 (specific processing equipment such as electrolytic cells for fluorine production and particle accelerators), ECCN 1C992 (commercial charges containing energetic materials, n.e.s.), ECCN 1C995 (certain mixtures and testing kits), ECCN 1C997 (ammonium nitrate), ECCN 1C999 (specific materials, n.e.s.), and ECCN 6A992 (optical sensors not controlled under ECCN 6A002). A detailed discussion of controls on Iraq is now located in Chapter 5.
Regional stability controls provide a mechanism for the U.S. Government to monitor the export of controlled items, to restrict their use in instances that would adversely affect regional stability or the military balance within a region, and to protect the national security and foreign policy interests of the United States .
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, and that the foreign policy purpose cannot fully be achieved through negotiations or other alternative means. The Secretary has also determined that most of the items subject to these controls are also controlled, as a result of international negotiations, by the United States ’ partners in the Wassenaar Arrangement and the Missile Technology Control Regime (MTCR). Regional stability controls contribute to U.S. national security and foreign policy objectives by enabling the United States to restrict the use or availability of certain sensitive U.S.-origin goods and technologies that would adversely affect regional stability or the military balance in certain areas.
2. Compatibility with Foreign Policy Objectives . The Secretary has determined that these controls are compatible with U.S. foreign policy objectives and that the extension of these controls will not have any significant adverse foreign policy consequences. Regional stability controls are consistent with U.S. foreign policy goals to promote peace and stability and prevent U.S. exports that might contribute to weapons production, destabilizing military capabilities, or acts of terrorism.
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. A number of other countries limit exports of items and technologies with military applications to areas of concern, recognizing that such items and technologies could adversely affect regional stability and military balances. For example, the United States and other member countries of the Wassenaar Arrangement each have their own national controls on the export of certain night vision devices. All members of the MTCR maintain controls on software and technology related to missile guidance and control devices. Although other countries may object to new unilateral RS controls, allies and partners of the United States support U.S. efforts against regional conflict and terrorism and appreciate the need to keep certain equipment and technologies from those who could misuse the items to destabilize countries or regions.
4. Economic Impact on U.S. Industry . 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. Items controlled for regional stability reasons generally require licenses for export to all destinations except NATO countries, Australia , Japan , and New Zealand . Certain RS-controlled items, including those controlled concurrently for missile technology reasons and cameras controlled under ECCN 6A003, however, require licenses for export to all destinations except Canada . Cameras account for a large percentage of regional stability-controlled exports.
In Fiscal Year 2006, the Department of Commerce approved 3,421 license applications for items controlled for RS reasons, with a total value of $1.049 billion. Twelve applications for RS-controlled items were denied (eight license applications for cameras controlled under ECCN 6A003 and four license applications for military trainer aircraft and related equipment controlled under ECCN 9A018), with a value of $861,512. In addition, the Department returned without action 260 applications, valued at $174.8 million. The majority of returned cases, 174 of the 260, were for imaging cameras classified under ECCN 6A003. Many of the cases returned were due to insufficient end-user or end-use information. The Department returned without action a significant number of 6A003 camera license applications because the export transaction was not consummated due to delays in the licensing process, including instances in which the U.S. exporter lost a sale as a result of license application delays.
The licensing volume for items controlled for regional stability increased slightly from Fiscal Year 2005, during which the Department approved 3,140 license applications for items controlled for RS reasons. The value of RS-related licenses increased from $603 million in Fiscal Year 2005 to $1.049 billion in Fiscal Year 2006.
The table that follows lists the total number and value by ECCN of export licenses that the Department of Commerce issued for regional stability items during Fiscal Year 2006: