The FINANCIAL — The U.S. Department of State and U.S. Department of Commerce mark the first anniversary of the implementation of the President’s Export Control Reform Initiative. Since October 2013, Export Control Reform has overhauled a Cold War-era system of regulations, increasing the competitiveness of U.S. industry, according to the U.S. State Department.
Key accomplishments include:
1. The move of less sensitive equipment, parts, and components from the regulatory jurisdiction of the Department of State’s U.S. Munitions List (USML) to the Department of Commerce’s Commerce Control List (CCL), following exhaustive technical and policy reviews conducted by the Departments of State, Defense, and Commerce, as well as representatives from other relevant departments and agencies. These reforms were also developed in close consultation with Congress and the private sector, which provided extensive public review and comment on the proposed changes.
2. The revision of 15 of 21 categories of the U.S. Munitions List. Thirteen categories have been implemented, and the remaining two will be implemented before the end of the year. Work continues on the remaining categories.
3. A 64 percent reduction in license volume in the 13 implemented categories. This leads to more flexible licensing authorizations for the export of less sensitive items to allies and partners, while increasing the number of U.S. enforcement officials available to safeguard against illicit attempts to procure sensitive defense technologies.
4. These changes have enhanced our national security by increasing interoperability with our close allies and partners. These changes also reduce incentives for purchasers to deliberately avoid U.S.-origin parts and components.
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