For Immediate Release
Office of the Press Secretary
January 2, 2002
Fact Sheet
Changes to U.S. Dual-Use Export Controls
President Bush today announced changes to U.S. export controls on
computers and microprocessors. This action advances the
President's goal of reforming the U.S. export control system so that it
avoids ineffective controls, and focuses on truly sensitive goods and
technologies. The President's decision will promote national
security, enhance the effectiveness of our export control system and
ease unnecessary regulatory burdens on both government and
industry. The Administration will make the following
changes:
The President has decided to raise the level above which U.S.
exporters are required to notify the Department of Commerce of proposed
exports of computers to Tier 3 countries from 85,000 Millions of
Theoretical Operations Per Second (MTOPS, a measure of computer
performance) to 190,000 MTOPS. The Tier 3 countries include
India, Pakistan, all of the Middle East/Maghreb, the former Soviet
Union, China, Vietnam and parts of South Eastern
Europe. This action requires a 60-day Congressional
notification period before it can become effective. The
Administration also will raise the individual licensing level for Tier
3 to 190,000 MTOPS.
The President has decided to move Latvia from Tier 3 to Tier
1. Tier 1 countries are Western Europe, Japan, Canada,
Mexico, Australia, New Zealand, Hungary, Poland, the Czech Republic and
Brazil, South and Central America, South Korea, most of the Association
of Southeast Asian Nations, Slovenia and most of
Africa. Currently, U.S. companies may export computers to
Tier 1 under license exception (i.e., there is no prior government
review). This action requires a 120-day Congressional
notification period before it can become effective.
The United States will continue to maintain a virtual embargo on
computer hardware and technology exports to Iraq, Iran, Libya, North
Korea, Cuba, Sudan and Syria.
For all countries, U.S. re-export and retransfer requirements, and
provisions of the Enhanced Proliferation Control Initiative (EPCI) will
continue to apply. EPCI provides authority for the
government to block exports of computers (or any other item) in cases
where there is an unacceptable risk of diversion to proliferation
activities (e.g., foreign nuclear weapons design
laboratories). Criminal and civil penalties apply to EPCI
violators.
The Commerce Department will continue to review its published list
of entities of concern as a means of informing exporters of potential
proliferation and other security risks. The Department will
remind exporters of their duty to check suspicious circumstances and
inquire about end-uses and end-users. Exporters are advised
to contact the Commerce Department if they have any concern with the
identity or activities of the end-users, and the Department will work
to expand its efforts -- through public seminars and consultations with
companies -- to keep industry regularly informed regarding problem
end-users and programs of proliferation concern.
Microprocessors Controls. The Administration will raise
the license exception level for exports of general purpose
microprocessors from 6,500 MTOPS to 12,000 MTOPS.
The changes to computer and microprocessor controls announced today
will become effective when published in the Export Administration
Regulations.
Multilateral Coordination. The Administration has
consulted with other nations, including members of the Wassenaar
Arrangement, to ensure that they understand the basis for these
decisions. We are committed to working closely with them to
adjust multilateral controls to reflect technological advances and
collective security concerns. Our controls remain consistent
with the purposes of the Wassenaar Arrangement -- to deny arms and
sensitive dual-use technologies to countries of concern, and to develop
mechanisms for information sharing among the partners as a way to
harmonize our export control practices and policies. The
United States will also continue to implement reporting requirements on
computer exports as appropriate to fulfill U.S. obligations under the
Wassenaar Arrangement.
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