Export Controls: Agencies Should Assess Vulnerabilities and Improve Guidance for Protecting Export-Controlled Information at Companies

On Sept. 29, 2010, State responded that it has and and will continue to expand guidance on licensing, compliance, and policy matters--stating that the Department has made significant improvements to its website for defense exporters since the GAO study was concluded. State also continues to work with the Society for International Affairs, a non-profit educational organization of the defense industry, Commerce and others on scheduling educational and training events throughout the United States.

To address this recommendation, Commerce cited the agency's 2007 strategic outreach plan that was serves as a roadmap for assessing vulnerabilities in the protection of export controlled information, as well as establishment of the Deemed Export Advisory Committee (DEAC) to gain additional expert advice on deemed export policy, including potential vulnerabilities. Agency officials also have provided documentation of agency activities that address this recommendation, including the implementation of DEAC recommendations to simplify the deemed export licensing process and to extend Commerce's educational outreach efforts to ensure familiarity by those subject to the deemed export rule. Commerce also completed a Deemed Export Strategic Outreach Plan which aided development of specific criteria for the selection of organizations, including companies, targeted for agency's outreach activities. In addition, Commerce has analyzed compliance data, which agency officials stated has enabled the agency to identify gaps--compliance errors and violations by exporters--in the protection of controlled information as well as to target educational outreach to those companies.

Based on Commerce's Deemed Export Strategic Outreach Plan, Commerce officials stated that the agency has increased its outreach and training activities to both universities and industry, including updates to its guidance and teaching tools, increases in the number of seminars, and the introduction of webinars. Officials also noted the agency is implementing recommendations of Deemed Export Advisory Committee (DEAC) to clarify the transfer of export controlled information, particularly within companies. Regarding interagency coordination, Commerce officials indicated that there have been increasing efforts to collaborate on export control enforcement efforts, including Commerce-provided training on export control enforcement for employees of other agencies and the creation of regional task forces, comprised of government law enforcement agencies, that utilize each agency's express expertise to address export control enforcement. Agency officials also noted expanded interagency coordination with the State Department and other agencies in Commerce seminars.