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ID-78-60 1 (1978-10-31)

handle is hein.gao/gaobaayfc0001 and id is 1 raw text is: DOCUMENT RESUME 07642 - rc312J 1 Administration of U.S. Export Licensing Should Be Consolidated To Be More Responsive to Industry. ID-78-60; B-162222. Cctober 31, 1978. 40 pp. + 8 appendices (21 pp.). Report to the Congress; by Elmer B. Staats, Comptrc2ler General. Issue Area: International Economic and Military Programs: U.S. Comparative Advantage in Trade and Technology (608) ; Science and Technology: Management and Oversight of Prcgrams (2004). Contact: International Div. Budget Function: International Affairs: Conduct of Foreign Affairs (152). Orqanization Concerned: Department of Commerce; Department of Defen3e; Department of State; Department of Commerce: Office of Export Administration. Congressional Relevance: House Committee on International Relations; Senate Coxmittee on Banking, Housing and Urban Affairs; Congress. Authority: Export AdmiDistration Act of 1969, as aLmended (50 U.SC. App. 2401). Export Administration Act Amendments of 1977. Nuclear Non-Proliferation Act of 1978. Exports of commercially available commodities are requla ted by the Secretary of Commerce and a group of coasulting departments and agencies. The 7epartment cf Commerce makes final licensing decisions unilaterally in some instances; in cther instances, decisions are made only after the unanimous consent of consulted agencies is secured. The GoveLamentfs administration of export licensing is characterized by diffused authority and a consequent lack of accountability to the public. Findings/Conclusions: The Department cf Commerce's Office of Export Administration (OEA) issued 50,737 export licenses in 1977. It denied 348 applications, and 1.,291 applications took 90 or more days to be approved. The number of applications taking more than 30 days to process increased by 47% between 1976 and 1977; those taking 96 days to process increased by 52%; and those taking 180 days increased by 50%. The export licensing system needs to be revised to strike a balance betweeu the need for greater accountability and the Goverament's legitimate responsibility to control exports for national security, foreign policy, and short supply reasons. One alternative that eight create a balance between accountability and licensing v'uld be to establish a new export license management group which would be organizationally independent of existing export licensing agencies but which would oversee them. Responsiveness to exporters could best be increased by transferring export licensing management responsibility to the Department if Commerce. Recommendations: The Congress, in amending the Export Administration Act of 1969, should direct that export license application management be centralized in the OA and that a multiaqency Export Policy Advisory Comittee be established at

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