The primary responsibility of the Bureau of Industry and Security (BIS), an agency in the Department of Commerce, is granting licenses for the export of sensitive goods and technologies, balancing commercial interests against those of national security. But the bureau also enforces sanctions and embargoes, works with other countries on export controls, monitors the health of the domestic defense industry and promotes U.S. trade interests abroad. The BIS therefore has a range of responsibilities relating to the interaction between industry and security. Since the Sept. 11 terrorist attacks, emphasis has been placed on restricting the export of technologies that could be used to create weapons of mass destruction.
Export control has been an element of government policy for as long as the United States has existed. However, it took on great significance during the Cold War, when it was deemed necessary—for national security reasons and as a tool of foreign policy—to prevent sensitive goods from being sent to the Soviet bloc. Congress enacted the Export Control Act of 1949, creating a system for Cold War export control. The act was renewed repeatedly until the late 1960s, when thawing relations with the Soviet Union made some question whether export controls should be loosened. The Export Administration Act of 1969 did relax controls, and also delegated congressional authority to regulate foreign commerce to the executive branch, on a temporary basis. Subsequent renewals of this act in 1974, 1977, 1979 and 1985 further eased controls.
In 1989, the collapse of the Soviet Union forced a debate on the future of export controls; some pushed for further liberalization in order to promote U.S. exports, while others thought controls should be tailored to address security threats in the post-Cold War era. However, Congress was unable to agree upon changes, and in 1994, the EAA lapsed—only to be continued for six years by Executive Order No. 12924, issued by President Bill Clinton on Aug. 19, 1994. Clinton derived the authority to do this from the International Emergency Economic Powers Act, which allows the president to declare an emergency and control exports for national security or foreign policy reasons.
In 2000, Congress enacted a law reinstating the 1979 version of the EAA until Aug. 20, 2001. That act was also allowed to lapse, and again, the president—this time, George W. Bush—continued the export controls by executive order. There have been legislative attempts since then to revise the EAA rules, but none have succeeded (see Suggested Reform).
The Bureau of Export Administration previously enforced EAA provisions. In 2002, the Commerce Department ordered that the agency be renamed the Bureau of Industry and Security, as part of an internal reorganization. In a 2002 speech, Under Secretary of Commerce
Kenneth I. Juster
, former head of the BIS, said this was done to “reflect the fact that our agency works on a broad array of issues at the intersection of industry and security—whether it be national security, economic security, cyber security or what is now known as homeland security.”
Many exports that are subject to BIS controls—including certain types of machinery, software and technical specifications—have both commercial and military applications, and are therefore dubbed “dual-use items.” Individuals or companies seeking to export these and other controlled goods must go through a licensing process that takes into account what the items are, where they’re going, who will be using them and for what purpose. According to the BIS Web site, there are 10 broad licensing categories: nuclear materials, facilities and equipment; chemicals, microorganisms and toxins; materials processing; electronics; computers; telecommunications and information security; sensors and lasers; navigation and avionics; marine; and propulsion systems, space vehicles and related equipment.
The BIS’ Operating Committee on Export Policy is the first forum for resolving disputes among agencies over controversial license applications.
For more information on other topics, see:
Press Releases, Annual Reports and Foreign Policy Reports through 1996
, from the BIS Web site
Major stakeholders include the U.S. military, the domestic defense industry and congressional districts in which defense-industry companies are major employers. Companies and individuals that export goods or technologies subject to the provisions of the EAA are also stakeholders.
BIS controversies often illustrate the tension between national security and free trade.
In October 2007, the federal government initiated a program to reduce the licensing requirements for certain military goods shipped to five Chinese companies. However, a report from the Wisconsin Project, a nonpartisan organization dedicated to stemming the proliferation of weapons of mass destruction, asserted that at least two of these companies have been linked to proliferation activities. “Reducing controls on exports to such companies increases the risk that American goods will help China improve its armed forces, and that American goods will be sent illicitly to Syria or Iran,” the report said.
In addition, the Arms Sales Monitoring Project (ASMP), a subgroup of the Federation of American Scientists, has issued a report that says U.S. arms exporters are increasingly bundling their sales with “offsets,” or side agreements in which purchasers receive bonus technology or manufacturing capabilities. According to the ASMP, some of these offsets “raise serious security concerns, as they assist in the development of foreign arms industries,” and have also exposed inadequate export-licensing enforcement by the BIS.
On the other hand, the business community pushed back against a proposal that would have tightened export controls on technological products in early 2007. The Bush administration floated the idea of expanding the definition of dual-use items in 2006, so that a greater number of exports fell under the BIS’ jurisdiction. This had some exporters worried that they would be burdened by red tape. In response, the BIS said it would revise its proposal.
An October 2006 computer attack against the BIS network crippled the agency, forcing it to replace hundreds of computers. Now, workstations on the BIS network reportedly are disconnected from the Internet; employees must switch to separate stations for Web access. Investigators say the hackers worked through Chinese servers.
For more information, see:
Recent Changes Regarding Export License Control
, an article written by lawyers Rajat P. Kuver and Daniel C. Horne appearing in
Bender’s Immigration Bulletin
Discussion about the BIS and export controls generally takes the form of a dialogue between camps: those pushing for fewer export controls in order to boost economic prosperity, and those advocating the status quo or even greater export controls, due to national security concerns.
Critiques and Reports
Export Administration Act of 1979 Reauthorization
, a report by Ian F. Fergusson, Robert D. Shuey, Craig Elwell and Jeanne Grimmett for the Congressional Research Service
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Founded: 1987, 2002
Annual Budget: $79 million (2008)
Employees: 402 (2008 estimate)
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Bureau of Industry and Security
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Mancuso, Mario
Under Secretary
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The Bureau of Industry and Security is headed by Mario Mancuso, undersecretary of commerce for industry and security. Mancuso was born in New York and grew up in Howard Beach, Queens, where his parents ran a pizza parlor. He graduated magna cum laude from Harvard University. He then received a law degree from New York University School of Law, before moving on to the private sector, where he worked for a decade as an international corporate lawyer and business executive.
Mancuso is a veteran of the Iraq War; he served as a special operations commander for nearly a year. Between January and July 2005, Mancuso served as special counsel to the Department of Defense general counsel, focusing on issues of international law, national security policy and international affairs. He then worked as deputy assistant secretary of defense for special operations and combating terrorism. The U.S. Senate unanimously confirmed him as undersecretary of commerce for industry and security on May 25, 2007.
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