BIS Update 2005 - Day One
Greetings from the first full day of BIS's Update 2005. The unannounced theme of Update 2005 appears to be China. The introductory plenary session focused almost exclusively on China-related issues and many of the programs will feature discussions of the latest export control developments relating to China.
In one of the few programs that will not feature a discussion of China, the Foreign Assets Control breakout session OFAC provided an overview of the kindler and gentler version approach that the agency is taking. OFAC announced that it will soon be issuing new enforcement guidelines. The first tranche will be geared towards banks. OFAC will be taking a more "holistic approach" towards enforcement. The new enforcement benchmark is remediation and OFAC will now use the BIS approach, in that it will publish details on its enforcement cases in order to educate the exporting community. In addition, OFAC contemplates more training and outreach. OFAC recently hired a visual information specialist and will conduct videoconferences and other audio-visual programs. In the question and answer period, OFAC had no comment on prospective regulations or policy change regarding Venezuela.
Update's keynote speaker, Secretary of Commerce Carlos Gutierrez, continued the China theme by focusing his entire speech on U.S.-China trade issues. The Secretary reiterated that the administration's thesis with respect to export controls on China is that high-technology trade cannot be diverted to areas that threaten the national security of the U.S.
No major news at the encryption session, other than BIS expects an increase in license applications and notifications in the coming year. U.S. encryption policy and regulations will continue to evolve in response to new technologies and global realities. For example, the agency is working with the Wassenaar Arrangement to modify certain encryption-related controls. BIS is continuing to license network infrastructure items that relate to wi-max and other new technologies. In the Q&A period, a question was posed on the new "China catch-all". Not only did BIS reiterate tha the rule should not be viewed as a China rule, but is directed at all counteries in which the U.S. has an arms embargo on. The specific answer to the question was that the new rule will not have any China-specific prohibitions as it relates to encryption items.
No major news at the encryption session, other than BIS expects an increase in license applications and notifications in the coming year. U.S. encryption policy and regulations will continue to evolve in response to new technologies and global realities. For example, the agency is working with the Wassenaar Arrangement to modify certain encryption-related controls. BIS is continuing to license network infrastructure items that relate to wi-max and other new technologies. In the Q&A period, a question was posed on the new "China catch-all". Not only did BIS reiterate tha the rule should not be viewed as a China rule, but is directed at all counteries in which the U.S. has an arms embargo on. The specific answer to the question was that the new rule will not have any China-specific prohibitions as it relates to encryption items.
Labels: OFAC
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