20 February 1998
Source: Hardcopy from Greg Broiles
See recent related BXA speeches
Date: December 9, 1997
Time: 9:00 am
Location: Department of Commerce building, Washington D.C.
Opening Remarks, RPTAC Chair -- Carol Henton.
Chairperson Carol Henton called the meeting to order at 9:00 a.m. and provided an overview of the agenda. Members of the committee and attendees from the public introduced themselves. Carol circulated a sign-up sheet for committee members to sign up for various working groups
Report from BXA -- Bill Reinsch.
Bill Reinsch presented a status report regarding the NDAA Computer Regulation; BXA is working to streamline the licensing process. The RPTAC members were given a copy of the draft regulation. Given the need for quick input, it was decided individuals members wishing to comment should do so directly.Regarding encryption, the general disposition within the Administration is that now is the appropriate time for the Administration to propose its own bill to Congress (possibly in January).
Regarding the "specially designed" definition, a request for comments has been in the Federal Register. Bill Root indicated that there are two interpretations. The "MTCR context" interpretation in the EAR is what RPTAC will recommend.
Regarding the China licensing policy, there is no change resulting from the recent summit. There is currently no effect on the NRC rule.
Regarding the deemed export rule, Congresswoman Zoe Loefgren's (D-CA) letter to Secretary Janet Reno is getting a considerable review within the various agencies. The BXA Website has become very popular with exporters.
Office of Export Enforcement -- Amanda DeBusk.
Amanda DeBusk gave an overview of the challenge facing OEE regarding complying with the NDAA's statutory requirement for the government to conduct post-delivery verifications of 100% of the (computer) shipments. OEE will use (enforcement) special agents and also rely on assistance from embassy staffs (such as Foreign Commercial Service personnel) to achieve these verifications. She noted the particular problem with exports to China as there is no government-to-government agreement between the U.S. and China which permits post delivery inspections
Automated Export System and IOU Requirement -- Amanda DeBusk and Jerry Greenwell.
Discussion was held concerning AES and the proposed "IOU" procedure. Jerry Greenwell offered a free trial for two participants (companies) from the RPTAC to evaluate the AES program. Mr. Greenwell promised to follow-up with a letter outlining this offer to interested RPTAC members.
Deemed Export Rule -- Bernie Kritzer.
Bernie Kritzer provided a status of the Deemed Export Rule. To date, there have been 437 cases reviewed by his staff. Of those cases, 83% were approved, 14% were returned without action (RWA), and 3.5% w ere denied. (There were 11 or 12 denials and none of the denials related to the particular technology.) Approval time is now less than 55 calendar days. Typical conditions were circulated to those in attendance. He hopes to put instructions on how to file this type of license application on the BXA webpage.
Wassenaar Regulation -- Tonya Mottley.
Tonya Mottley presented an overview of the status of the Wassenaar Regulation. She indicated it will be published "very soon". One of the key provisions is a new reporting requirement for shipments made under certain license exceptions between non-Wassenaar members. Authority to use license exceptions will be revoked for certain items controlled for missile technology reasons. One sticking point is a list of items which will be transferred to State for control under the ITAR.
Encryption -- Patty Sefcik.
Patty Sefcik provided an overview of the Encryption rules and staff. There are ten new staff for the Encryption Division and Bruce Kutz is the new Deputy Director. They are holding special seminars for encryption rules and there is new encryption information on the BXA webpage. So far, 1,500 cases have been approved and 22 have been denied. Roz Thomsen will provide Patti with another copy of RPTAC's comments on the draft regulations which she apparently has not seen.
Export Licensing Procedure and the Executive Order -- Eileen Albanese.
Eileen Albanese presented an overview of license processing procedures: The National Security Council is currently reviewing the Executive Order as it has been in effect for two years. NSC is looking at how licenses are being reviewed.BXA is also looking at its own internal processes, especially those related to the first days. The enforcement screen requires a coded number for each entity. One possibility, to minimize the waiting period, would be for consignees to be coded prior to license applications are sent interagency.
BXA is looking into upgrading its mainframe and making improvements to STELA to reflect changing requirements; for example, the NDAA requirements.
BXA is looking at an Internet submission procedure, this effort is focusing on the entry stage right now. BXA is working with Booz Allen, an outside consultant, regarding internal examination of licensing procedures. BXA is requesting industry input regarding the internet procedure. A beta test will be held in February or March for one consignee and one commodity.
"Is Informed" Process -- Eileen Albanese.
Regarding the "Is Informed" process, BXA says a few more names will be published in the next few weeks; consideration is being given to applying this notification only to non-EAR99 items. The NSC guidelines on the Is Informed process are now unclassified and will be provided to RPTAC members today. If an EAR99 item is denied, the case is automatically referred to the Operating Committee Informed.
FTSR -- Jerry Greenwell, Frank Korpusik, and Sharon Cook.
Jerry Greenwell and Frank Korpusik of the Regulations branch at Census and Sharon Cook, Regulations branch, BXA, discussed the inconsistencies regarding the FTSR and the EAR. Currently they have reviewed several inconsistencies between the regulations, such as the definition of an exporter, Internet transactions, and shipment values. Census is still trying to gather additional inconsistencies. Fax number for Sharon Cook is 202-482-3355 if RPTAC members would like to identify others.
Closed session followed with Assistant Secretary Roger Majak participating.
The meeting was adjourned at approximately 2:30 p.m.
REGULATIONS & PROCEDURES
TECHNICAL ADVISORY COMMITTEE
December 9, 1997
Attendance
Carol Henton Varian Associates, Inc.
Roszel Thomsen Thomsen & Burke, LLP
Richard Seppa Tektronix, Inc.
Patricia Steiner Lucent Technologies
William Root Consultant
Giovanna Cinelli Reed, Smith, Shaw & McClay, LLP
Richard Steinmetz Rockwell Automation
Karen Murphy Applied Materials, Inc.
Sandra Vincent Intel Corporation
Vera Murray IBM Corporation
James Wanner Sundstrand Corporation
Catherine Thornberry Export Procedures Company
David Calabrese Electronic Industries Association
Benjamin Flowe Berliner, Corcoran & Rowe, LLP
Walter Spiegel NCR Corporation
Florence Keenan Attorney/Consultant
Bonnie Hart Dow Chemical Company (MTAC)
Charles Carter Association for Manufacturing
Technology (MPETAC)
Hillary Hess DOC
William Reinsch DOC
William Skidmore DOC
Amanda DeBusk DOC
Tom Andrukonis DOC
Eileen Albanese DOC
Hoyt Zia DOC
Patti Sefcik DOC
Bernie Kritzer DOC
Tanya Mottley DOC
Jerry Beiter DOC
Jerry Greenwell DOC (Census)
Becky Trafton Treasury (Customs)
Michael Clancy McDonnell Douglas Corporation
Jane Howard Bechtel
Larry Christensen Vastera
Donald Hammond Consultant
Terence Murphy Murphy & Weber
Lou Ventino Oracle Corporation
Paul DiVecchio DiVecchio & Associates
Regina Piazza M.W. Kellogg Company
Rick Hurst Wisconsin Project
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