RGCI-Emerging Technologies Export Controls

We are expecting changes this year related to Emerging Technologies Export Controls. The Bureau of Industry and Security (BIS) is holding its’ annual conference this week on Export Controls in Washington, D.C. The theme of this year’s conference is “Emerging Technologies, Strategic Trade, and Global Threats”.  This event will cover:

  • 5G
  • Artificial Intelligence (AI)
  • Emerging Technology
  • The Committee on Foreign Investment in the United States (CFIUS)/ Foreign Investment
  • Risk Review Modernization of 2018 (FIRRMA)
  • Export Control Reform Act of 2018 (ECRA)

Due to the Export Control Reform Act of 2018, we are expecting to see new Export Control Classification Numbers (ECCNs) on the CCL for certain Emerging Technologies. As controls on exports of technology are a key component of the effort to protect sensitive U.S. technology, many sensitive technologies are listed on the CCL, often consistent with the lists maintained by the multilateral export control regimes (of which the United States is a member). Certain technologies, however, may not yet be listed on the CCL or controlled multilaterally because they are emerging.

A key focus of the new law is the protection of U.S. technological advances through closer scrutiny of technology transfers to foreign persons and their implications for U.S. national security and foreign policy.

Background-- Export Control Reform Act of 2018

As part of the National Defense Authorization Act (NDAA) for Fiscal Year 2019, Public Law No: 115-232, Congress enacted the Export Control Reform Act of 2018 (the Act or ECRA). Section 1758 of the Act authorizes Commerce to establish appropriate controls, including interim controls, on the export, reexport, or transfer (in country) of emerging and foundational technologies. Under the Act, emerging and foundational technologies are those essential to the national security of the United States and are not described in Section 721(a)(6)(A)(i)-(v) of the Defense Production Act of 1950, as amended. Emerging and foundational technologies, in keeping with ECRA, will be determined by an interagency process that will consider both public and classified information as well as information from the Emerging Technology Technical Advisory Committee and the Committee on Foreign Investment in the United States.

In identifying emerging and foundational technologies, the process must consider:

  • The development of emerging and foundational technologies in foreign countries;
  • The effect export controls may have on the development of such technologies in the United States; and
  • The effectiveness of export controls on limiting the proliferation of emerging and foundational technologies in foreign countries.

In determining the appropriate level of export controls, the Department must consider the potential end-uses and end-users of the technology, and countries to which exports from the United States are restricted (e.g., embargoed countries). While Commerce has discretion to set the level of export controls, at a minimum it must require a license for the export of emerging and foundational technologies to countries subject to a U.S. embargo, including those subject to an arms embargo.

Representative Emerging Technology Categories

The representative general categories of technology for which Commerce currently seeks to determine whether there are specific emerging technologies that are essential to the national security of the United States include:

(1) Biotechnology, such as: Nanobiology; Synthetic biology; Genomic and genetic engineering; or Neurotech.

(2) Artificial intelligence (AI) and machine learning technology, such as: Neural networks and deep learning; Evolution and genetic computation; Reinforcement learning; Computer vision; Expert systems; Speech and audio processing; Natural language processing; Planning; Audio and video manipulation technologies; AI cloud technologies; or AI chipsets.

(3) Position, Navigation, and Timing (PNT) technology.

(4) Microprocessor technology, such as: Systems-on-Chip (SoC); or Stacked Memory on Chip.

(5) Advanced computing technology, such as Memory-centric logic.

(6) Data analytics technology, such as: Visualization; Automated analysis algorithms; or Context-aware computing.

(7) Quantum information and sensing technology, such as: Quantum computing; Quantum encryption; or Quantum sensing.

(8) Logistics technology, such as: Mobile electric power; Modeling and simulation; Total asset visibility; or Distribution-based Logistics Systems (DBLS).

(9) Additive manufacturing (e.g., 3D printing).

(10) Robotics such as: Micro-drone and micro-robotic systems; Swarming technology; Self-assembling robots; Molecular robotics; Robot compliers; or Smart Dust.

(11) Brain-computer interfaces, such as: Neural-controlled interfaces; Mind-machine interfaces; Direct neural interfaces; or Brain-machine interfaces.

(12) Hypersonics, such as: Flight control algorithms; Propulsion technologies; Thermal protection systems; or Specialized materials.

(13) Advanced Materials, such as: Adaptive camouflage; Functional textiles; or Biomaterials.

(14) Advanced surveillance technologies, such as Faceprint and voiceprint technologies.

Please keep in mind though that this information is preliminary and subject to change. To stay abreast of all the possible changes, reach out to the expert team at Redstone Government Consulting. From training opportunities to consulting packages, we offer a variety of options to inform your organization in the complicated business of government contracting.

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Written by Carolyn Quinn Turner

Carolyn Quinn Turner Carolyn assists Redstone Government Consulting, Inc. in the area of International Trade and Import/Export Compliance, specifically the International Traffic in Arms Regulations (ITAR) the Export Administration Regulations (EAR). Carolyn assists a wide variety of contractors with compliance in international trade and ITAR/EAR regulations as well as implementing policies and procedures that assist companies in those areas. Professional Experience Starting in 2002, Carolyn was an International Research Analyst at the Alabama International Trade Center. While here, she conducted country and market analyses and translated trade documents. She then worked at Page & Jones, Inc., handling freight coordination for the NVO imports and exports, gathered freight rates for all customers, both import and export, and acted as the NVO controller by handling training, coordinating shipping rates, and record keeping. Starting in 2008, Carolyn held the position of International Trade Specialist at the Alabama International Trade Center. She assisted small and medium sized companies with international trade, expanded company’s sales via international opportunities, problem solved wide ranging international topics such as ITAR and EAR, classification, regulations, contracts, finance options, risk mitigation, and more. She also conducted country/market analyses for international market research, provided international business training and presented educational industry seminars and oversaw research staff on international trade projects and assignments. During the period of 2011-2016, Carolyn was also an Adjunct Professor at the University of Alabama, developing and teaching online International Business classes. In addition to her international experience, Carolyn has studied in Spain, Chile, and Cuba and has work experience in trade missions in Thailand, Norway, Sweden, and Chile. She can read, write, and speak Spanish proficiently. Certifications In 2005, Carolyn became a Licensed US Customs Broker during her time with Page & Jones, Inc., and focused on HTS and Schedule B Classification as well as Entry Filing. In 2009, Carolyn earned the NASBITE Certified Global Business Professional Certification. She has training on these topics: Incoterms, International Distributor Agreements, How to Prepare for an Import & Export Audit, ITAR and EAR, NAFTA, and other FTA’s, Developing an Import/Export Compliance Program, Import and Export Documentation, Customs Brokers License Training Course with Logistics Training Systems, Hazardous Materials, SBA and EXIM Trade Financing, Trade Promotion Coordination Committee (TPCC) Training, SBIR Grants, International Intellectual Property Rights, and global e-commerce. Education Carolyn has earned her Bachelor of Science degree in Commerce and Business Administration from the University of Alabama in Tuscaloosa. She has also earned her Masters in Management with a Global Business Concentration from the University of Alabama in Tuscaloosa. Affiliations She has been a board member of the Japan America Society of Alabama since 2009 and a board member of Destination Hoover International since 2018. Carolyn is also a member of the Export Alabama Alliance.

About Redstone GCI

Redstone GCI is a consulting firm focused on fulfilling the needs of government contractors in all areas of compliance. With a singular mission to help contractors through the multiple layers of “red tape,” we allow contractors to focus on what they do best – support their mission with the U.S. Government. We are home to a group of consultants made up of GovCon industry professionals, CPAs, attorneys, and retired government audit and acquisition professionals.

Our focus and knowledge of audit and compliance functions administered by DCAA and DCMA will always be at the heart of what we do. However, for the past decade, we’ve strategically grown to support other areas of the government contractor back-office with that same level of focus and expertise. We’ve added expertise in contracts management, subcontract administration, proposal pricing, various software systems, HR and employment law, property administration, manufacturing, data analytics/reporting, Grant specialists, M&A, and many other areas. When we see a trend in the needs of contractors, we act to ensure we can provide the best expertise in the market to fulfill those needs.

One thing our clients can be certain of is that with the Redstone GCI Team in your corner, there is no problem too big and no issue too technical for our team to tackle.

Topics: Government Regulations, Export & Import