AIA CALLS FOR EXPORT CONTROL STREAMLINING
Bush Administration support for changing export controls gives Aerospace Industries Assn. (AIA) hope of bringing change in policy on selling satellites overseas, Pres. John Douglass said in briefing Wed. in Washington, where Assn. proposed 16 changes in current export control system. Export controls require companies to obtain export licenses for satellites, rockets and component parts in process that treats parts as munitions, process that has taken average of 100 days, Vp-International Affairs Joel Johnson said. Items on U.S. munitions list requiring export license include “widely available” components such as “nuts, bolts and screws,” he said. Controls also leave components vulnerable to military sanctions and require foreign countries to get permission from U.S. to sell components to 3rd party if percentage of U.S. supplies exceeds 20%.
Proposed changes come year after Congress voted 17 alterations in system, including expedited approval process for NATO countries and 8 non-NATO allies. Johnson said proposed changes “can be done within a year.” “No one’s trying to abolish the system, we're trying to make it realistic,” Johnson told us. Changes include rewording restriction on commercial components used for military from “designed or modified” for military use to “uniquely modified,” which would eliminate dual-use components from list of military supplies controlled by State Dept., which reviews 25% of list every year.
Douglass said U.S. market share dropped sharply after Congress moved satellite export licensing to State from Commerce Dept. in 1999: “In one year, we lost about 50% of our market share.” Recent survey released by Satellite Industry Assn. said U.S. satellite industry lost 30% of market share, total of $1.2 billion and more than 1,200 jobs (CD Feb 7 p5). New rules to speed up process have helped, but aren’t enough, Douglass said: “Despite attempts made in the final year of the Clinton Administration, the system is still broken.”
Even though Douglass said AIA would support bill to be proposed by Rep. Berman (D-Cal.) that would return satellite export control to Commerce Dept. from DoS (CD March 7 p4), he said AIA proposals “are reforms that don’t cost money” and focus exclusively on administrative, legislative and policy changes in procedures. Reforms have good chance of passing this year, Douglass said, as “reasonable people on both sides of the aisle” see need to ease process. Douglass said Secy. of State Colin Powell “understands the impact of overly restrictive laws on NATO interoperability,” “Congress has become more sensitive” to industry’s needs and some members consider transfer of control to State Dept. “a huge mistake.” However, Rep. Cox (R-Cal.) has said he will oppose bill and Sen. Helms (R-N.C.) also is expected to do so.