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Blog Category: Export Control reform

New Search Tool Driven by API Helps U.S. Companies Comply with Export Laws

New Search Tool Driven by API Helps U.S. Companies Comply with Export Laws

Starting today, U.S. companies can use a simple tool to search the federal government’s Consolidated Screening List (CSL). The CSL is a streamlined collection of nine different “screening lists” from the U.S. Departments of Commerce, State, and the Treasury that contains names of individuals and companies with whom a U.S. company may not be allowed to do business due to U.S. export regulations, sanctions, or other restrictions. If a company or individual appears on the list, U.S. firms must do further research into the individual or company in accordance with the administering agency’s rules before doing business with them.

It is extremely important for U.S. businesses to consult the CSL before doing business with a foreign entity to ensure it is not flagged on any of the agency lists. The U.S. agencies that maintain these lists have targeted these entities for various national security and foreign policy reasons, including illegally exporting arms, violating U.S. sanctions, and trafficking narcotics. By consolidating these lists into one collection, the CSL helps support President Obama’s Export Control Reform (ECR) initiative, which is designed to enhance U.S. national security.

In addition to using the simple search tool, the CSL is now available to developers through the International Trade Administration (ITA) Developer Portal (http://developer.trade.gov). The Consolidated Screening List API (Application Programming Interface) enables computers to freely access the CSL in an open, machine-readable format.

By making the CSL available as an API, developers and designers can create new tools, websites or mobile apps to access the CSL and display the results, allowing private sector innovation to help disseminate this critical information in ways most helpful to business users. For example, a freight forwarder could integrate this API into its processes and it could automatically check to see if any recipients are on any of these lists, thereby strengthening national security.

During the process of creating the API, the Commerce Department’s International Trade Administration and Bureau of Industry and Security worked with the Departments of the Treasury and State to form an authoritative, up to date, and easily searchable list with over 8,000 company and individual names and their aliases. These improvements provide options to the downloadable CSL files currently on export.gov/ecr.

In early January, ITA also will release a more comprehensive search tool.

This new API, along with Monday’s announcement of a new Deputy Chief Data Officer and Data Advisory Council, is another step in fulfilling Commerce’s “Open for Business Agenda” data priority to open up datasets that keep businesses more competitive, inform decisions that help make government smarter, and better inform citizens about their own communities.

Resources to Help Manufacturers Understand Export Controls

On October 3, on Manufacturing Day, American manufacturers will be celebrated for the contributions they make toward U.S. job creation, innovation and a strong, competitive U.S. economy.  With the recent creation of more than 700,000 new manufacturing jobs, the increased growth rate experienced by the U.S. manufacturing sector is almost twice the rate of growth in the overall economy.  To accelerate this growth even more, manufacturers may sell their products in international markets, which comprise two-thirds of the world’s purchasing power.

Many commodities and technologies manufactured in and exported from the United States are used only for commercial purposes, but some also have military applications.  Items with recognized civilian and military applications include, for example, numerically controlled machine tools, advanced electronics, and high-performance computers.  The Commerce Department’s Bureau of Industry and Security (BIS) licenses the export of such commodities, as well as related software and technology.  BIS administers export control laws and regulations to strengthen U.S. national security and foreign policy objectives, such as preventing the spread of weapons of mass destruction. 

Currently, BIS is at the forefront of changes to the U.S. export control system related to the Administration’s Export Control Reform initiative.  A key element of the reform is moving tens of thousands of items—mostly parts and components—from the State Department’s jurisdiction to the Commerce Department, which will provide greater flexibility for U.S. companies to engage in export trade.      

On the BIS website, there are several resources to help manufacturers and exporters understand the licensing system, changes under Export Control Reform, and how to set up effective compliance safeguards.  Here are a few resources to help manufacturers export your items:

Five Things Small Businesses Should Know About Export Control Reform

Small businesses are growing at unprecedented rates. They employ about half – 55 million – of the nation’s private workforce and account for 99.7% percent of all employers in the U.S. Through exporting, they have the opportunity to grow even more: two-thirds of the world’s purchasing power is in foreign countries. In a 2013 survey of 500 small business owners, the National Small Business Association (NSBA) found that 63% of participants who did not already export said that they would be interested in doing so, but cited lack of information on exporting as an obstacle for small businesses.

In 2009, President Obama launched the Export Control Reform (ECR) initiative, a significant effort aimed at enhancing our national and economic security through reform of the export control system—a system that had not been comprehensively updated in decades. The Commerce Department’s Bureau of Industry and Security (BIS) administers export controls for commercial and some military commodities and technologies. Now, the President’s ECR initiative is transferring tens of thousands of less sensitive military items from the State Department’s jurisdiction to the more flexible Commerce regulations. Most are parts and components; many are manufactured by small businesses. Moving these items to Commerce benefits small businesses because BIS’s regulations allow for more nuanced distinctions among technologies, destinations, and end users than the State Department’s regulations.

  Here are five things small businesses should know about ECR:

  1. Who is affected? ECR affects second and third tier small and medium suppliers in the defense industry. These sectors include aerospace, military vehicles, marine vessels, space, satellites, and electronics.
  2. ECR eases the financial burden: Currently, exporters subject to the State Department’s International Traffic in Arms Regulations (ITAR) pay $250 per license to the State Department, even to export an item that sells for $200. In addition, all manufacturers and exporters have to pay a minimum registration fee of $2,250 per year, even if they don’t export. Commerce, however, is prohibited by statute from charging licensing and registration fees. For an estimated 60% of former State Department registrants whose products are moving to the Commerce Department then, there are no annual registration requirements or associated fees. This directly affects the bottom line.
  3. More flexible regulations: License Exception Strategic Trade Authorization (STA) establishes a license-free zone covering the first export transaction for many parts and components that have been transferred to Commerce. STA provides small businesses with an opportunity to ship license-free to 36 countries, so long as certain safeguards are observed.
  4. How can ECR help you? ECR helps small businesses by increasing the security of supply from small companies that are the second and third tier suppliers, facilitating timely and reliable supplier relationships between U.S. exporters and their foreign customer base, and enhancing their long-term health and competitiveness.
  5. Resources: BIS recognizes that this transition requires considerable outreach and education to affected industries. This is why we work with non-profit educational groups representing small defense exporters, conduct weekly ECR conference calls open industries and companies, and have added interactive tools to our website to help U.S. companies comply with the new regulations under the ECR initiative. In addition, we provide free counseling via phone (Washington DC:  202-482-4811; BIS Western Regional Office:  949-660-0144 and 408-998-8806). We host 30 seminars and events annually, and the BIS website also has a variety of online tools and resources in our Exporter Portal.

Commerce's Bureau of Industry and Security Annual Update Conference Focuses on Export Control Reform

Conference logo

White House Chief of Staff and former Commerce Secretary William Daley delivered the keynote address to the Bureau of Industry and Security's 24th Annual Update Conference on Export Controls and Policy. Mr. Daley and Commerce Secretary Gary Locke, who also addressed the conference, both highlighted the administration’s continued priority for the Export Control Reform Initiative as a national security imperative.  In his remarks, Under Secretary of Commerce for Industry and Security Eric Hirschhorn emphasized that the call for export reform by President Obama and Secretary Locke is real and long overdue.

 “The Obama administration’s commitment to export control reform reflects an overriding national security imperative. The current system—based on Cold War-era laws, policies, practices, and controls—is not responsive to current threats and emerging challenges of the twenty-first century. The administration launched ECR to rectify these shortcomings and to increase U.S. security and competitiveness.”

The annual Update Conference discusses reforms to the U.S. export control system that will strengthen national security and improve the competitiveness of key U.S. manufacturing and technology sectors.  White House statement