Bureau of Export Administration

Overview

Mission Statement

The Bureau of Export Administration (BXA) is a regulatory agency that promotes U.S. nationa

and economic security, public safety, and foreign policy interests by managing and enforcing

the Department’s security-related trade and competitiveness programs.

Strategies and Activities

BXA is working to bring U.S. export controls in line with evolving U.S. national security and

foreign policy objectives. Restructuring export controls for the 21st century will result in a

relatively shorter dual-use commodity control list. Streamlining the application system for

controlled items helps prevent illegal transactions and expedites the license processing cycle for

U.S. companies. In addition, by rendering prompt decisions, BXA strengthens the international

competitive position of U.S. firms. BXA is also developing means to strengthen its law

enforcement program and its efficiency as a regulatory agency. BXA takes a preventive

approach to deter high-risk transactions. To reduce the number of potential license requests for

unacceptable products, BXA is expanding educational outreach to its stakeholders through

visits, conferences, and seminars to heighten their understanding of export controls and, as a

result, strengthens industry compliance. It also is conducting on-site visits to end-users of

selected goods to ensure that products are being employed in the authorized manner.

BXA is increasing the number of bilateral and multilateral nonproliferation and export control

technical, executive, and educational exchanges it conducts with the governments of nations

where there is a significant risk of export or transit of sensitive goods and technologies but

which do not have fully competent export control systems. BXA is working to the extent of its

resources to assist these nations to attain competence in all five functional areas of effective

export control systems: legal and regulatory frameworks, licensing procedures and control lists,

enforcement mechanisms, industry-government relations, and systems administration and

automation.

Finally, BXA is facilitating the transition of defense industries to productive peacetime activities

without compromising our technological leadership. At the same time, BXA is assisting in

promoting the continued viability of high-tech firms through the development of innovative

product lines and new commercial avenues for former defense manufacturers.

FY 1999 Annual Program Performance Report 45
46 FY 1999 Annual Program Performance Report

Restructure export controls for the 21st century

Rationale for Performance Goal:

BXA strives to streamline the application processing system and educate the U.S. exporting

community in requirements of the Export Administration Act (EAA) and the Export Administration

Regulations (EAR):

■ To prevent illegal transactions by means of a more effective control system

■ To improve U.S. exporter competitiveness in the global marketplace by helping exporters

meet shipping deadlines and reduce transaction costs

■ To improve U.S. exporter competitiveness through prompt export licensing decisions

BXA also strives to strengthen foreign national export control systems to reduce proliferation of

controlled commodities that are produced locally or are being transshipped:

■ To ensure that sensitive technologies are not inappropriately transferred outside the U.S.

■ To provide a level playing field internationally through the development of export control

systems meeting international standards in all countries thought to be significant exporters

or transshippers of sensitive goods and technologies

FY 1999 Performance

Measure 1.a:

Number of high-risk transactions deterred

The number of high-risk transactions that BXA reviewed and subsequently denied is based

upon a careful risk assessment. There are several ways in which such assessments are

conducted. License applications are reviewed based on the control number, the reasons for

the controls (national security, foreign policy, antiterrorism, etc.), the end-user, and the end-use.

Control lists are cross-checked to determine if any of the parties to the transaction are denied

or listed entities. In most cases, the case is referred to the interagency community for its

review as well. This includes input from the intelligence community to help determine the

likelihood that the export will be used for purposes other than intended or is contrary to U.S.

policies. Also considered are factors such as the likelihood of diversion, the practices of the

end-user, and the inability or unwillingness of an exporter to agree to certain conditions which

may be required if a transaction is to be approved. U.S. security is enhanced through the

judicious implementation of controls on transfers of materials, equipment, technology, and

software that could be used for weapons applications.
Data Validation and Verification

Data source: Export Control Automated Support Systems (ECASS)

Frequency: Annual

Data storage: ECASS

Verification: ECASS contains appropriate system edits. ECASS is also open to audit by GAO and the IG. Data 

are queried for retrieval through the Licensing Officer Access subsystem or generated via hardcopy 

through the Reports subsystem.

Measure 1.b:

Number of licensing decisions

This measure counts the total number of applications that were approved, denied or returned

without action (RWA) during the fiscal year. Upon receipt, license applications are reviewed for

completeness (front-end review) and entered into ECASS, BXA’s electronic processing system.

If the application is incomplete, additional information is requested from the exporter before

proceeding. If complete, the application is screened against an automated list of end-users of

concern and forwarded to the appropriate licensing and enforcement specialists for a complete

analysis of the application. This includes review against available intelligence information and

required referrals to other export control agencies, and subsequent policy reconsideration/

FY 1999 Annual Program Performance Report 47
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Data Validation and Verification

Data source: ECASS

Frequency: Annual

Data storage: ECASS

Verification: ECASS contains appropriate system edits. ECASS is also open to audit by GAO and the IG. Data 

are queried for retrieval through the Licensing Officer Access subsystem or generated via hardcopy 

through the Reports subsystem.

Measure 1.c:

Average processing time (days) for license applications

This measure reflects the average number of calendar days that elapsed between registration

of, and final action on, all applications processed during the fiscal year, regardless of the date

received. The less time it takes to process a license application, the sooner an exporter can

ship its product. This enhances exporter finances by speeding revenue production time and

reducing storage costs, and enables the exporter to make timely shipment and thereby compete

more successfully with foreign competitors. U.S. exporters lose sales if a foreign competitor can

ship a product faster.

48 FY 1999 Annual Program Performance Report
Data Validation and Verification

Data source: ECASS 

Frequency: Annual

Data storage: ECASS

Verification: ECASS contains appropriate system edits. ECASS is also open to audit by GAO and the IG. Data 

are queried for retrieval through the Licensing Officer Access subsystem or generated via hardcopy 

through the Reports subsystem.

Measure 1.d:

Number of export assistance seminars/conferences

This measure counts the number of training events in which BXA either is a sponsor or

participant and reflects the transfer of knowledge from the government to the private sector

regarding export control requirements. The BXA outreach program to the domestic and

international business communities encourages compliance with EAR. Seminars also

heighten business awareness of Administration objectives and improve compliance with

regulatory requirements. In support of BXA’s goal to “Facilitate Transition of Defense

Industries,” these seminars also help identify market opportunities for firms in the U.S.

defense industrial base, and identify those firms that could benefit from BXA advocacy and

defense industrial base programs.

FY 1999 Annual Program Performance Report 49
Data Validation and Verification

Data source: Counts of seminars and conferences from the seminar schedule published each year.

Frequency: Annual

Data storage: The Office of Exporter Services collects and stores the data.

Verification: Review of seminar schedules

Measure 1.e:

Number of nonproliferation and export control international

cooperative exchanges

This measure includes technical exchanges, executive exchanges, symposia, fora,

workshops, and training courses, assessments, and other multilateral and bilateral activities in

which BXA has the lead or a primary role. These exchanges are the primary means by which

BXA implements its nonproliferation and export control cooperation programs with foreign

governments. This measure records the number of exchanges and not the number of

countries participating. If one exchange involves multiple countries (e.g., the annual

“Symposium for Foreign Export Control Officials” and “Update”) the exchange is nonetheless

counted as one item.

50 FY 1999 Annual Program Performance Report
Data Validation and Verification

Data source: Nonproliferation Export Control (NEC) Team activity files, reporting cables, and other files

Frequency: Annual

Data storage: NEC collects and stores the data.

Verification: Independent auditors verified the content of NEC outputs.

.

FY 1999 Program Evaluation for BXA Performance Goal 1

BXA developed a performance management approach pursuant to the Government

Performance and Results Act (GPRA) of 1993, to determine success and failure of its

international cooperative export control activities. The approach links inputs (time, money and

staff) and outputs (technical exchanges in each of five substantive fields) to desired outcomes

that increase the effectiveness of national export control systems in target nations. Staff collects

and analyzes evidence (legislation, procedures, control lists, etc.) to determine achievement of

the 39 desired outcomes.

BXA was credited with hard work and timely response in providing the export licenses for the

encryption items necessary for a U.S. consortium to win a bid on a major Public Key

Infrastructure (PKl) project in Hong Kong. This contract should help dispel the perception in the

information technology industry that the U.S. Government is reluctant to provide the licenses

necessary for electronic commerce initiatives. The five licenses submitted by U.S. firms for this

project were approved with an average processing time of 35 days. One of the licenses was

approved in 23 days. The changed perceptions concerning U.S. licensing policy for encryption

resulting from this case should lead to more opportunities for U.S. businesses engaged in this

important industry to make sales of encryption hardware and software.

FY 1999 Annual Program Performance Report 51
pending missile-related export cases for Israel through discussions with Austria, a MTCR

partner. If this issue had not been satisfactorily resolved, denial of the pending U.S. cases would

have jeopardized longstanding business relationships between Israeli and U.S. companies.

Since the implementation of the Simplified Network Application Program (SNAP), up to 46

percent of export license applications have been submitted to BXA via the Internet. SNAP

reduces delays for the exporter and is more cost-effective for BXA since it eliminates the

expensive and error-prone process of transferring data from paper applications. SNAP accepts

most applications and notices that exporters must submit to BXA. During the same period, 41

percent of requests for advisory opinions and commodity classifications came through SNAP.

The Office of Management and Budget (OMB) approved BXA’s request for a streamlined

process for collecting national security information from the U.S. defense industrial base. BXA

now has general, multi-year OMB approval for BXA survey authority. BXA will therefore be able

to reduce the time required to obtain collection approval from five months to less than one

month. This will enable BXA to respond quickly to national security issues as they arise, and

make policy recommendations in a more timely manner. The streamlined process will also be

less burdensome for BXA, as well as OMB, consolidating multiple information collection

activities under a single, perpetual authority.

The Government Printing Office (GPO) has arranged a grant through the Federal Depository

Library that will allow GPO to provide the public free electronic access to Export Administration

Regulations, via the Internet, at no cost to BXA or the public. The total annual savings to

Commerce and the taxpayers will be $70,000, in addition to the $126,000 savings to industry for

free electronic access to EAR.

52 FY 1999 Annual Program Performance Report
FY 1999 Annual Program Performance Report 53

Maintain a fully effective law enforcement program to protect

U.S. national security and public safety, uphold U.S. foreign

policy, and ensure the nonproliferation of dual-use commodities

and chemical weapons

Rationale for Performance Goal:

A number of aggressive investigation and verification activities are aimed at deterring export

control violations, and imposing criminal or administrative sanctions on violators.

BXA conducts outreach visits and conferences sponsored by trade and business associations

and continuing legal education institutions. These outreach efforts support the Department

Strategic Goal One: Expand Economic Growth, Trade, and Prosperity initiative while protecting

important national security and foreign policy interests by helping exporters understand export

control regulations.

FY 1999 Performance

Measure 2.a:

Number of enforcement outreach visits

As part of their preventive enforcement mission, BXA Special Agents visit U.S. firms under

“Project Outreach.” During each outreach visit, the Special Agents educate the firm about

BXA’s enforcement program and seek the firm’s voluntary cooperation in detecting potential

illegal transactions. Antiboycott outreach occurs in the form of presentations to organizations

concerning compliance with the Antiboycott provisions of the EAA. These outreach efforts

focus on conferences sponsored by trade and business associations and continuing legal

education institutions.

Data Validation and Verification

Data source: Enforce subsystem of ECASS and paper files; agents’ monthly activity reports.

Frequency: Annual

Data storage: The Office of Export Enforcement (OEE) collects and stores the data in Enforce and its case files.

Verification: Following an outreach visit, the Special Agent enters the data in Enforce. The Special Agent in 

Charge countersigns each entry. The Antiboycott data are verified via manual count of entries in

Office of Antiboycott Compliance (OAC) case files.
Measure 2.b:

Number of investigations completed

When there is reason to believe that the EAA and the EAR have been violated, BXA criminal

investigators and Antiboycott Compliance Officers initiate a formal investigation and open a case

file. Investigations result in a criminal or administrative penalty, a warning letter for minor

infractions, or closing of the case if no violation is found. This output measure covers one of the

most important features of our law enforcement program, namely, the pursuit of an investigation

to a proper conclusion based on the facts and law.

Data Validation and Verification

Data source: Enforce subsystem of ECASS and case management database.

Frequency: Annual

Data storage: The OEE collects and stores the data. Cases are also tracked in Enforce.

Verification: Data are obtained through a query of Enforce using the investigative tracking system. This query 

reflects the total number of cases completed during FY 1999. The investigating Special Agent

enters these data into Enforce during and upon the completion of the investigation. Each entry is 

countersigned by the Special Agent in Charge, thereby providing a complete verification of the data 

entered. The data for the annual report are developed via an Enforce query verified by a manual 

count of entries. The Antiboycott data are verified via manual count of entries in OAC case files.

54 FY 1999 Annual Program Performance Report
Performance Measure 2.c:

Number of investigations accepted for criminal or administrative remedies

This measure refers to investigations accepted by U.S. Attorney offices for criminal prosecution

and/or by the Chief Counsel for Export Administration (OCC/EA) for administrative sanctions.

Data Validation and Verification

Data source: Enforce subsystem of ECASS and case management database.

Frequency: Annual

Data storage: The OEE and the OCC/EA collect and store the data. Case status information is reconciled quarterly. 

Verification: Data are obtained through a query of Enforce using the investigative tracking system. To obtain the 

total number of cases accepted for criminal prosecution, the case action query program is used, 

which reflects cases accepted by the U.S. Attorney offices. These data are entered by the Special

Agent and countersigned by the Special Agent in Charge. To obtain the total number of cases 

accepted for administrative remedies, the administrative action query is used, which reflects cases 

accepted by the OCC/EA. The OCC/EA enters these data. Validation is accomplished manually by 

counting the entries in the system. The Antiboycott data are verified via manual count of entries in

OAC casefiles. 

FY 1999 Annual Program Performance Report 55
Performance Measure 2.d:

Number of end-use visits

A key element of BXA’s enforcement activity is conducting on-site visits to foreign end-users of

selected goods and technologies exported under the EAR. End-use visits consist of pre-license

checks (PLCs) and post-shipment verifications (PSVs). PLCs are performed prior to issuance of

licenses by BXA and are generally performed by U.S. & Foreign Commercial Service (US&FCS)

personnel. US&FCS officials and BXA Special Agents perform post-shipment verifications to

ensure that the products are being used by the authorized end-users for the authorized end-uses.

This output measure supports the following goals:

■ Maintaining an effective law enforcement program, by determining the legitimacy of

controlled export transactions

■ Improving public knowledge of and compliance with export regulations, by educating

foreign consignees of U.S.-origin items

■ Increasing cooperation with domestic and international law enforcement, export control

and policy organizations, by sharing information with law enforcement counterparts

located in countries where the visits are conducted

56 FY 1999 Annual Program Performance Report
Data source: Enforce subsystem of ECASS, ad hoc programs, and a PC database for high performance 

computer (HPC) end-use checks.

Frequency: Annual 

Data storage: The OEE and the Office of Enforcement Analysis (OEA) collect and store the data. OEE and

US&FCS personnel make and document visits. OEA performs data entry into Enforce, and into a

database of HPC end-use checks. 

Verification: PLC data are compiled through Enforce data query programs that have built-in checks that prevent 

duplicative counting. PSV data for those requested by cable to U.S. embassies are queried using 

Enforce or by using a query of a PC database for HPC checks. OEA personnel manually verify both

of these queries. Safeguard PSV checks are queried through Enforce as well. An ad hoc database, 

maintained by OEE/lntel, is used for verification of those data.

FY 1999 Program Evaluation for BXA Performance Goal 2

During FY 1999, BXA levied over $2 million in civil and criminal penalties on individuals and

corporations in 11 cases. BXA was recognized for leadership in negotiating and implementing

the U.S.-China End-Use Visit Arrangement (EUVA), a U.S. strategic objective for the past 15

years. Negotiated with senior Chinese officials, the EUVA is an extraordinary breakthrough in

U.S.-China export control relations and was one of the President’s most noted accomplishments

at the June 1998 U.S.-China Summit. The EUVA strengthens the U.S. dual-use licensing and

enforcement system and demonstrates the Department of Commerce’s commitment to U.S.

export control/nonproliferation goals.

FY 1999 Annual Program Performance Report 57
Facilitate transition of defense industries 

Rationale for Performance Goal:

A strong economic/industrial infrastructure is partly dependent upon the ability to transition our

defense industries to peacetime activities and products, while at the same time maintaining

technological superiority to support the next generation of defense systems. This is

accomplished by:

■ Ensuring the continued viability of U.S. firms: Develop new commercial avenues for former

defense products

■ Maintaining the economic viability of high tech industries: Provide the research base from

which new innovations will appear

■ Keeping U.S. defense firms competitive domestically and internationally: Develop new and

innovative product lines

FY 1999 Performance

Measure 3.a:

Number of strategic industry analyses

These are analyses undertaken as part of the broad responsibility to support the U.S. defense

industrial and technology base. They include reviews of the economic/industrial base impacts of:

■ International Defense Memoranda of Understanding

■ Sales/disposal from the National Defense Stockpile and of Excess Defense Articles

■ Defense downsizing and base closure

■ The practice of offsets in defense trade

■ Unilateral export controls and foreign availability

Also included are assessments of the international competitiveness and production capabilities

of strategic industries and technologies. Specific categories of analyses include the following:

■ Defense Diversification and Needs Assessment Survey response referrals

■ Defense Memoranda of Understanding impact reviews

■ Impact of Excess Defense Article assessments

■ Stockpile Disposal Market impact analyses

■ Industrial Capabilities studies

■ Impact of Offsets in Defense Trade analyses

■ Impact of Unilateral Export Controls analyses

58 FY 1999 Annual Program Performance Report
Data Validation and Verification

Data source: The analytical products are written reports, which are forwarded to the requester and are available 

for review and assessment.

Frequency: Annual

Data storage: The Office of Strategic Industry and Economic Security (OSIES) collects and stores the data. 

Several databases are involved.

FY 1999 Annual Program Performance Report 59
BXA coordinated Defense Trade Advocacy efforts that were instrumental in garnering sales of

more than $4 billion in Greece and Singapore.

BXA completed a research project, Statistical Handbook of the Ball and Roller Bearing Industry.

The handbook is the result of a partnership between BXA and the American Bearing

Manufacturers Association (ABMA). The project was initiated at a bearing forum held at the

Department of Commerce in June 1997, and was subsequently coordinated with ABMA’s

Statistical Committee. The handbook places into a single reference volume the most useful

publicly available statistics about the industry and answers a longstanding call for such

information.

Defense Priorities and Allocations System support for the North Atlantic Treaty Organization

(NATO) Operation Allied Force in the Balkans continued with a successful effort to expedite the

production and delivery of component parts and materials for the U.S. Air Force (USAF) Joint

Direct Attack Munition (JDAM) produced by Boeing. BXA staff worked closely with nine Boeing

subcontractors to accelerate deliveries. In addition, two of these subcontractors, RockwellCollins and Honeywell, requested BXA assistance with their suppliers. Accordingly, five

Rockwell-Collins’ suppliers and 14 lower-tier electronic parts vendors to Honeywell’s supplier,

General Dynamics, were contacted to obtain accelerated deliveries of production materials.

BXA efforts saved up to two months of delivery lead-time that enabled Boeing to meet USAF

delivery requirement for 1,320 JDAMs.

BXA was successful in blocking a proposed U.S. Navy transfer of 48 Mk 46 torpedoes from the

Excess Defense Articles stockpile to Greece. The transfer would have had a serious impact on

manufacturer Raytheon’s marketing of torpedoes and upgrades in Greece. As a result of BXA

intervention, the U.S. Navy will withdraw the Excess Defense Articles request and the Raytheon

torpedoes will be sold to Greece.

60 FY 1999 Annual Program Performance Report