Commerce Department Begins Merging Export Lists

The U.S. Department of Commerce this week began the task of merging two lists of export products subject to government control.

The single list will simplify the licensing process for shippers and give them assurance they will not get caught in a web of conflicting regulations, Commerce Department officials said Tuesday.

By The Numbers: U.S. Trade.

The bureau is modernizing the export control system following the principles of transparency and predictability to exercise the highest level of control on items that are most sensitive to national security, said Eric L. Hirschhorn, Commerce under secretary for industry and security as he spoke to more than 1,000 exporters and export control practitioners at the annual Bureau of Industry and Security export controls update conference.

The merger is one of the four “singles” President Obama outlined last year when he announced his export control reform program: a single list, a single agency to administer it, a single enforcement system, and a single computer system to manage controlled goods. The merger is one that can be done without seeking congressional approval.

“We’re looking harder at function, not purpose,” Hirschhorn said. As an example, Hirschhorn showed two nearly-identical metal blocks. Both are used to attach axles to the frame of a vehicle, but one used for fire trucks can be freely exported, while export of the second, used on a military transport, was restricted by the USML.

“The material used for brake pads are the same for a fire truck and an M1 tank,” and not something that should require an export license, Hirschhorn said,

The new list will use “positive” descriptions of an item’s specific functions or properties, and avoids sweeping generalities, said Kevin Wolf, assistant secretary for export administration.

Wolf said that the departments of Commerce, State and Defense should complete the single export list by the end of next year.

-- Contact R.G. Edmonson at bedmonson@joc.com.