US Defense Export Restructure

The current export control rules were put in place in an effort to keep aerospace

products and other technologies, such as encryption software, out of the hands of the wrong people. However, the rules made it very difficult for US exporters to trade with our allies and put unnecessary restrictions on products needed by our own military overseas. The broad and confusing lists of products and rules put restrictions on several products that are now considered to be safe for trade. President Barack Obama announced on August 31, 2010 that he plans to restructure the export control guidelines and system.

This restructure will take many prohibited products off of the restricted list and will help to bring things up to date. Businesses complain that the list is so long and sometimes so vague, that they can't tell if their products are restricted or not. Only about 25% of current restricted products are expected to remain and require licensing.

Many of the products currently on the list are similar or identical to unrestricted items, but have been essentially "blacklisted" because of military use. Things like motor parts for tanks are restricted, even though they are virtually identical to unrestricted truck parts. Things like this will be remedied so that the control list is manageable and will actually serve its purpose.

Obama, as part of his plan to double US exports in five years, has decided to sign an executive order to establish a center that will be responsible for enforcing and coordinating the defense products foreign trade industry. It will seek to create a process that runs more smoothly, has less gaps and duplications, and focuses our resources in a place where they can make a difference.

After the administration of the Aerospace Industries Association reviewed portions of the US Munitions List, their president, Marion Blakey, stated that "74% of the items could be moved to the less restrictive Commerce Control List." Ocean freight and ocean shipping companies also expect to see an increase in international business when the changes are put into practice.

It's not really about loosening standards, but more about restructuring the export control system. It should make it so that our efforts can be put towards having complete and standardized control over the products that we do want to closely monitor while loosening up on things that shouldn't be taking up all of our time and resources.

US Defense Export Restructure

By: Nelson Cabrera

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