Where Industry and Security Intersect
What's New | Sitemap | Search
Jim Wyatt - Greeting and opening remarks. Introductions around the room.
Hillary Hess - Regulations Update
Sharron Cook commented on status of rules implementing Wassenaar Arrangement changes to Category 4 (Computers) and President's Announcement raising limit for computers under License Exception CTP; raising of level for License Exception TSR removed from draft; publication imminent.
1/03/02 Implementation of the Wassenaar Arrangement List of Dual-Use Items: Revisions to Categories 1, 2, 3, 4, 5, 6, 7 and 9 of the Commerce Control List and Revisions to Reporting Requirements
Public comments by Don Weadon on publication of Wassenaar Arrangement regulation: should not have taken thirteen months; Wassenaar allies were shipping. End of the year is important to business, and Commerce just doesn't understand.
Keith Melchers commented that License Exception TSR was originally intended to control technology for "supercomputers" frustrating that the USG has shifted technical stance and logic without open justification and is now asking industry justify going back to original policy.
12/21/01 Removal of Two Russian Entities
12/20/01 Removal of Licensing Exemption for Exports and Reexports of Missile Technology -- Controlled Items Destined to Canada - Advance Notice of Proposed Rulemaking: Comments due February 19, 2002: 15 comments - 14 against, 1 for
Microprocessor reg - allows CIV for up to 12,000 Mtops (3A001.a.3.a)
Nuclear Suppliers Group Changes - reformatting; adds Belarus, Cyprus, Slovenia, and Turkey (Interagency)
Missile Technology Control Regime - Oct. 1999 changes and subsequent reformatting; adds Czech Republic, Poland, Ukraine, South Korea, and Turkey (Interagency)
Liberia - U.N. arms embargo (Back out for interagency clearance B back to TAC)
Encryption - Wassenaar changes; streamlining (Norm LaCroix to discuss)
Space Qualified Licensing Jurisdiction - (chart on website) (Interagency B State & DOD comments, DOC to respond)
SNAP and Mandatory Electronic Submission (Proposed) - revises SNAP, makes electronic submission (SNAP/ELAIN) mandatory, with exceptions (Drafting B revisions)
018s (National Security controls) - (BXA clearance) (In response to Bill Root comments)
Explosives Detection - Interagency
Global Terrorists - (BXA clearance)
Missile Technology Control Regime 2001 changes B Interagency
Australia Group 2001 changes B Interagency
NATO status for Hungary, Poland, and Czech Republic (Regional Stability &Crime Control) - to be published (up for signature)
Norm LaCroix - Encryption
Statistics on recent reviews. De minimis eligibility increasing; majority of licenses approved. New rule will:
Update mass market procedures for strong encryption (Wassenaar change)
Clarify that reviews have special status under the EAR
Clean up and clarify generally (5B002 ENC eligibility; examples of products eligible for mass market retail)
Norm commended interagency group, in-house group; thanked RPTAC; asserted that more streamlining, simplification remains objective.
Question on de minimis criteria - Norm answered that retail oriented, client devices are majority of those eligible. On mass market vs. retail: "functionally equivalent" concept makes more items retail - mass market has more restrictions on how it's sold.
Catherine Thornberry - AES Working Group
Group met 3/4 to discuss proposed recommendation to change Option 2 electronic submission to mimic manual submission - USG would have information on export sooner and more accurately. Noted that State won't permit Options 3 and 4; 72-hour wait.
Harvey Monk - AES
Noted that working group meeting had been a good opportunity to exchange ideas. Census program notice: July started clock for Act to become effective, which authorized the secretary of Commerce to issue regulations making AES mandatory.
December notice: new data item: forwarder's EIN on paper submission; two comments.
Draft proposed rule to make AES mandatory at State and Treasury for concurrence. Will have 60-day comment period - final rule possible by end of September. AES user meetings held across country each month; seminars.
Working group meeting of 3/4 clarified issues raised before. Census feels that Options 3 and 4 meet most of trade's needs. (Discussion of submission of information.) Harvey has asked for proposal to discuss with contractor - will look at issues (not promising to do it). Can't make short-term changes to mainframe at Customs due to work on State requirements - AES redesign after, over next year and a half - would need to address working group issues through AES Direct (could call it Option 5). Approval process; Option 5 will be a privilege.
State's requirements are State's - if there are problems, now is the time to comment.
Susan Kargel commented that "Option 5" would be submitted pre-departure. (Discussion of Principal Party in Interest's responsibility for making sure information is submitted.)
Pending legislation (HR 1646, S 1803) would let BXA, Customs enforce.
Next step: Census proposal, written, within the next month.
Susan Daniel -SNAP
PKI pilot; Beta test - 35+ companies; system previewing.
Vera Murray comment on submitting encryption reports - .pdf now, but IBM gets
reports in different forms, for very large number of items.
Catherine Thornberry question - what about PIN problem?
Susan replied: system administrator in company responsible for PINs, Ids,
viewing rights. Positive feedback on new SNAP.
The open session was adjourned.