The New World of Export Controls

Professor Michael R. Czinkota of Marketing and International Business  Faculty at Georgetown University and Paul Freedenberg, who has served as Under Secretary of Commerce, heading the Bureau of Export Administration in the U.S. Department of Commerce, during the Reagan administration discuss what will the risks and rewards balance in the long run for U.S. economy in an Interview with TheHill.com.

Multinational companies in particular are concerned that the ECR, which has taken the better part of four years and is still not completed, has diverted the Obama Administration’s attention from the equally important task of simplifying and expediting the licensing process for sales to China and other difficult destinations. They are also concerned that other important tasks such as reforming encryption controls, creating an effective way to authorize inter-company exchange of data on a worldwide basis, and increasing the utility of the UK and Australia arms treaties, have been deferred.

2014 will be the acid test of the ECR initiative.  Beginning on October 15, when the first of the new regulations go into effect,  exporters planning to export high technology will begin  to switch to the new regulations, create new compliance programs, and re-categorize almost all of their inventories.  We shall see whether the ECR lives up to the Administration’s promises of actually enhancing national security while providing  export control efficiency and simplicity, and whether the Obama Administration can point to the new licensing system as an accomplishment that is worth all the work that has been put into it.

Read the full article here.

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