Today, the Administration announced two key steps to further the goals of President Obama’s Export Control Reform Initiative, which is a common sense approach to overhauling the nation’s export control system. President Obama signed an Executive Order today to update delegated presidential authorities over the administration of certain export and import controls under the Arms Export Control Act of 1976, and yesterday the Administration notified Congress of the first in a series of changes to the U.S. Munitions List.
Executive Order
Executive Order 11958 delegated authority to control exports of defense articles and services to the Secretary of State and delegated the comparable authority to control imports to the Secretary of the Treasury. The Department of State controls the export of defense articles and services on its U.S. Munitions List (USML); the Department of Justice controls their import pursuant to the U.S. Munitions Import List (USMIL) administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The USMIL was previously a subset of State’s USML. The most recent comprehensive delegation of these authorities was in Executive Order 11958 of January 18, 1977. The President’s new Executive Order updates delegated authorities consistent with the upcoming changes to our export control lists. It supersedes and replaces Executive Order 11958 and amends Executive Order 13222 of August 17, 2001, that pertains to the Department of Commerce-administered controls. The new Executive Order makes the following changes:
-
Consolidation of All Brokering Responsibilities with the Department of State: The Arms Export Control Act requires the registration and licensing of brokering activities for defense articles and services for both exports and imports. A broker is a person who acts as an agent for others in negotiating or arranging contracts, purchases, sales or transfers of defense articles or services. The Executive Order consolidates and delegates to the Secretary of State all statutory responsibility for maintaining registration and licensing requirements for brokering of defense articles and services on either the State or ATF lists which both control defense articles and services under the Arms Export Control Act. This one-stop approach provides better clarity for the defense trade community and makes it easier for industry to comply and for the U.S. Government to enforce.
-
Elimination of Possible “Double Licensing” Requirements: Today the Department of State licenses entire systems, including any accompanying spare parts, accessories, and attachments, yet many of these items will be moved to the Commerce list which may mean that an exporter would need two licenses instead of one. The President’s delegation, via an amendment to Executive Order 13222, will allow the Department of State to authorize those accompanying items that may have moved to the Commerce list and prevent any potential double-licensing requirement. This ensures that the prioritization of our controls, in which we facilitate secure trade with Allies and partners, does not add new red tape. Items licensed or otherwise approved by the Secretary of State under this delegation remain subject to the …read more
Source: White House Press Office