House Passes Legislation That Will Modernize U.S. Export Controls

Washington, D.C. - Today, the House of Representatives passed bipartisan legislation, originally introduced by Congressman Brad Sherman, Chairman of the House Foreign Affairs Subcommittee on Terrorism, Nonproliferation and Trade. This legislation's aim is to help modernize the federal government's export control policy by strengthening national security and helping American companies sell more defense hardware overseas to our allies.

The Defense Trade Controls Performance Improvement Act, H.R. 4246, was introduced last year by Congressman Sherman and Congressman Don Manzullo. The text of this legislation was included in a larger security assistance bill, The Security Assistance and Arms Export Control Reform Act of 2008, H.R. 5916 that the House passed today.

The Defense Trade Controls Performance Improvement Act would direct the State Department to hire more staff to ensure that there are no backlogs of license applications. By 2010, this legislation would increase by roughly 50 percent the number of officers reviewing export licenses. The legislation also streamlines the process by providing for a special licensing provision for spare parts and components for items already approved by the U.S. government for export.

"The current export control process was designed for the Cold War. We must now reform it and address the national security priorities of the 21st Century." said Sherman. "This legislation will address the problems of our high-tech trade system, which today is underfunded and understaffed. While we do not want any of our technology to fall into the wrong hands, we also cannot afford to lose jobs and exports of legitimate products to our closest friends and allies because this country is too slow to simply issue a license."

The Defense Trade Controls Performance Improvement Act remedies many of the deficiencies in the licensing of defense trade by:

Directing the next President to review the U.S. export control system and offer recommendations to strengthen controls, improve efficiency, and reduce redundancies across federal agencies.

Directing the next President to examine how our export control policies play a role in the disturbing trend toward greater outsourcing and off-shoring of defense production.

Requiring the State Department to hire additional licensing officers to prevent backlogs and expedite the processing of licenses for our closest allies, and ensure a thorough national security review of every application.

Creating greater transparency in defense trade license processing, making it easier for businesses to follow the law; and by creating a special licensing procedure for spare parts and components.

Codifying performance goals for processing times of licensing actions.

The Defense Trade Controls Performance Improvement Act now heads to a vote in the Senate.