* Industry hails proposed reforms as "major milestone"
* Changes to save paperwork, lowering costs -industry group
WASHINGTON Nov 7 The Obama administration on
Monday proposed new rules to govern exports of military aircraft
and associated parts, a move that a major industry group said
would save U.S. companies time and money.
The proposed changes, published in the Federal Register, call
for certain less sensitive items such as nuts, bolts and
fasteners, to be moved under the oversight of the Commerce
Department, while providing more specific language to govern
exports of complex items such as avionics.
The Aerospace Industries Association, which includes major
aerospace companies such as Boeing Co and Lockheed Martin
Corp , welcomed the changes as a "major milestone" in long
overdue efforts to reform Washington's "cumbersome and outdated
export control system."
The proposed changes are the second in a series of detailed
export control reforms initiated by the Obama administration last
year, following changes to export rules for military vehicles and
tanks that were released this summer.
Remy Nathan, vice president of international affairs for the
trade group, said U.S. companies would still need to seek
permission to export military aircraft and associated items, but
the process would be streamlined for items that were essentially
commercial in nature.
"This is not changing no's to yes's; it's the process by which
you get to yes, and get to export," Nathan said.
Moving low-risk items from the Munitions Control list, which
is administered by the State Department, to the Commerce Control
List would allow companies to get certain export approvals in
advance, as opposed to seeking approval for such exports for each
"It's paperwork, it's time, and all of that equates to cost,"
AIA said it would submit comments on how to improve the
proposed revisions but gave no details.
The Federal Register notice said items were retained on the
Munitions List if they were either inherently military or
possessed characteristics that provided a critical military or
intelligence advantage to the United States.
It said the changes would serve national security by allowing
greater cooperation with NATO and other allies and help improve
the U.S. defense industrial base by reducing incentives for
foreign companies to avoid U.S. items that were subject to export
The changes would also allow the U.S. government to "focus its
resources on controlling, monitoring, investigating, analyzing,
and, if need be, prohibiting exports and reexports of more
significant items to destinations, end uses, and end users of
greater concern than our NATO allies and other multi-regime
partners," according the notice.