License Screening and Compliance Procedures Need Strengthening
T-NSIAD-94-203: Published: Jun 15, 1994. Publicly Released: Jun 15, 1994.
- Full Report:
GAO discussed export control activities at the Departments of State and Commerce, focusing on whether these agencies effectively use automated systems to screen export license applications. GAO noted that: (1) although both State and Commerce use automated computer systems to screen export applications for ineligible or questionable parties, their watchlists are not current and do not identify many pertinent individuals and companies; (2) State and Commerce issue licenses to some parties without considering the available derogatory information against those parties; (3) State and Commerce screening systems have weak internal controls and contain procedural and system deficiencies that do not allow them to identify all the licenses involving watchlist parties; (4) State and Commerce do not routinely share the names on their respective watchlists despite the potential benefits and the agencies' similar export control missions; (5) Commerce does not deny a license based on intelligence information unless it is corroborated by a negative pre-license check or other information; (6) State does not routinely collect or review annual sales reports; and (7) State does not require documentary evidence to prove U.S. person status for export licenses.