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AIA Welcomes GAO Report on State Department's License Review Process WASHINGTON, D.C., January 11 - The Aerospace Industries Association welcomes a study by the General Accounting Office (GAO) that reviewed the administrative procedures in the State Department's Office of Defense Trade Controls. AIA President and CEO John W. Douglass said GAO's report affirmed the view of U.S. aerospace companies that State's export licensing process for defense products have resulted in delays and lost sales. The study (GAO-02-203) notes that "The State Department lacks procedures to monitor the flow of license applications through the review process. There are no guidelines on the length of time a review should take, no requirements to justify a lengthy review, and no systematic checks on the progress of applications. In fiscal year 2000, hundreds of applications were lost and thousands were delayed while no substantive review occurred." AIA believes this is an accurate assessment of the difficulties faced by industry in trying to meet customer demands and in working with foreign partners. AIA has always tried to differentiate between the objective of the licensing process, which is to protect U.S. security and foreign policy interests, and which industry is in full accord, and the administrative process by which licenses are reviewed, which industry believes badly needs improvement. "We believe," Douglass said, "that the new political appointees at State are aware they have a problem and intend to address it. We in industry are eager to work with them to assure that the licensing process is not only effective in reaching the right decisions, but also efficient in doing so." He added, "The Commission on the Future of the U. S. Aerospace Industry hopes to address the overall issue of modernizing the export control system, and the GAO's report will have an influence on its review." View the GAO report on the GAO Web site.
P.A. Rel 2002-05 01.08.02 -AIA- Contact: Matt Grimison, AIA |
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