Export ruling could increase U.S. licensing requirements, group warns

(11/24/2004 10:07 AM EST)

  WASHINGTON — An industry group is warning that a recent court ruling on high-tech exports could sharply increase the number of products requiring U.S. export licenses.

The warning follows a federal appeals court ruling in Boston that backed the U.S. Commerce Department's position. The ruling, reported Wednesday (Nov. 24) by the Wall Street Journal, reversed an lower court decision that Commerce Department export regulations were vague. The case involves the export of industrial controls to India. U.S. officials contend that the technology could be diverted to weapons programs.

The Industry Coalition on Technology Transfer, based here, filed a brief in the case warning that a ruling in favor of the Commerce Department's position would greatly increase the number of high-tech products that would require export licenses. The group estimated that the number could swell from 15,000 annually to about 80,000 a year.

According to the Commerce Department's Bureau of Industry and Security, which oversees U.S. export controls, the group has filed comments over the past year critical of U.S. "foreign policy-based export controls." Last year, the group stated in comments to the agency that U.S. export controls based on foreign policy considerations were "unilateral and, therefore, largely ineffective."

The industry coalition includes the Semiconductor Industry Association, Electronic Industries Alliance and the Semiconductor Equipment and Materials International.