AIA | Export Control Modernization: AIA Progress with Congress

Who to Contact

For additional information, contact:

Michael Berger
Manager, Legislative Affairs
703-358-1062

Summary of the Defense Trade Controls Performance Improvement Act of 2008 (HR 4246)

The Problem
The federal government maintains an export control policy that requires a license each time a company in the U.S. sells or transfers a good or service overseas that could be used against the United States. The U.S. Department of State is responsible for administering these regulations to keep sensitive defense technologies out of the hands of our enemies, ensure our allies can fight effectively alongside U.S. military forces, and promote U.S. manufacturing by encouraging legitimate trade.

Unfortunately, this vital national security function has not been given the attention it deserves. A report by the Government Accountability Office (GAO) found that the arms export control system has not been reviewed since the terrorist attacks of September 11, 2001, and the backlog in processing defense trade licenses has grown every year since 2003. Defense trade licensing through the International Traffic in Arms Regulations (ITAR) has become much more complicated the past 6 years and the volume of license applications has increased 8 percent annually with no increase in the number of licensing officers. The State Department has said that, "[a]lthough an 8 percent increase in workload equates to a requirement for three additional licensing officers per year, there has been no increase in licensing officers during this period."

These growing delays and the license backlog threaten America's national security and must be addressed through additional resources and reapplication of existing resources. Otherwise our policies will actually harm relationships with our allies and impede legitimate trade. There is growing evidence that international firms are now designing out U.S. technology and content and are declaring that their products are "ITAR free," giving them an advantage over American companies that must comply with U.S. export control policies.

The Solution
The Defense Trade Controls Performance Improvement Act of 2007 directs the federal government to focus its resources on this critical national security function. This measure remedies many of the deficiencies in the licensing of defense trade by:

Requiring the State Department to hire additional licensing officers to eliminate the application backlog and expedite the processing of licenses for our closest allies;
Allowing U.S. manufacturers to export spare and replacement parts without a license to the governments of our NATO allies, Australia, New Zealand, and Japan, for defense articles that were previously lawfully exported;
Directing the Secretary of State and the heads of other appropriate federal agencies to review the U.S. export control system and offer recommendations to strengthen controls where appropriate, improve efficiency, and reduce redundancies across federal agencies; and
Creating greater transparency in defense trade license processing and make it easier for businesses to follow the law.