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April 13, 2010 

Defense Secretary Gates to Outline Export Control Reform Proposals

Defense Secretary Robert Gates is expected to announce the results of the Obama Administration's proposed export control reform review in a speech to the the Business Executives for National Security on April 20, 2010 in Washington, DC.

In his speech, Secretary Gates is likely to describe the Administration's near-term and long-term export control objectives and set out a timetable for action.

In August 2009, President Obama directed that the National Economic Council and National Security Council to launch a broad-based interagency process to review the overall U.S. export control system, including the dual-use and defense-related trade processes.


Speaking of the Export Control Reform initiative .... the following is an excerpt on that subject from the President's remarks to the Export-Import Bank's Annual Conference on March 11, 2010.

If I interpret them correctly, there will be a major improvement in the area of crypto classification - 30 minute - NOT 30 - 60 day review. In addition, the deemed export/technology control regulations may see some improvements - although the use of the terms export of "products" makes the latter not entirely clear.

The White House

Office of the Press Secretary
For Immediate Release
March 11, 2010
Remarks by the President at the Export-Import Bank's Annual Conference
Omni Shoreham Hotel, Washington, D.C.

11:30 A.M. EST

".....Finally, we’re working to reform our Export Control System for our strategic, high-tech industries, which will strengthen our national security. What we want to do is concentrate our efforts on enforcing controls on the export of our most critical technologies, making America safer while enhancing the competitiveness of key American industries. We’ve conducted a broad review of the Export Control System, and Secretary Gates will outline our reform proposal within the next couple of weeks. But today, I’d like to announce two steps that we’re prepared to take.

First, we’re going to streamline the process certain companies need to go through to get their products to market -– products with encryption capabilities like cell phone and network storage devices. Right now, they endure a technical review that can take between 30 and 60 days, and that puts that company at a distinct disadvantage to foreign competitors who don’t face those same delays. So a new one-time online process will shorten that review time from 30 days to 30 minutes, and that makes it quicker and easier for our businesses to compete while meeting our national security requirements.

And second, we’re going to eliminate unnecessary obstacles for exporting products to companies with dual-national and third-country-national employees. Currently, our exporters and foreign consumers of these goods have to comply with two different, conflicting set of standards. They’re running on two tracks, when they could be running just on one. So we’re moving towards harmonizing those standards and making it easier for American and foreign companies to comply with our requirements without diminishing our security. And I look forward to consulting with Congress on these reforms, as well as broader export control reform efforts."

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